David Giertz, a visionary and inspirational financial planner, argues that most people approaching retirement have misunderstanding or misconception about the social security funds. They hurriedly withdraw the money before retirement and therefore ends up getting less income or unexpected taxes for retirement. David Giertz attributes this to the fact that is unaware of the factors that influence the number of social security funds. According to the study by Nationwide Retirements Institute, about 30% of retired people receive benefits less than they expected and 86% of the future retirees (people planning to retire within ten years) were unable to identify the factors that influence the number of social security funds.
In his research, David Giertz encourages people to be patient as it is the only excellent way of maximizing the social security funds. The duration the amount takes in the bank leads to a corresponding increase in the social funds. An individual is eligible for social security funds at the age of 62 which is much lower than retirement age(between 65 to 70 years).Most people prefer to have their money at that point because of some financial problems they have. They fail to understand that before retirement, the money is considered as part of their income and is therefore liable to taxation.
Also, the money has not fetched much interest. The two factors will significantly reduce the number of social security funds. David Giertz, therefore, advises that to benefit maximally from the security funds, if an individual retires at the age of 66, he should wait up to the age of 70 when the full monthly benefit of $1320 as opposed to $1000 at retirement. At this point, the amount is not considered as income; it is, therefore, free from taxation. Also, the duration is long enough to gain interest.
David Giertz is an accomplished, inspirational financial planner with Executive MBA from the University of Miami as well as holder of Bachelor of Science degree from Millikan University. He has served as president of Nationwide financial and Distribution among others.