The sheer number of retiring baby boomers will influence investment returns for the next 30 years, according to Santa Barbara-based financial services firm AmeriFlex.

Social Security is a 75-year-old program that was originally designed to help seniors escape poverty, but as 10,000 baby boomers retire every day for the next 20 years and interest rates remain at historic lows, Social Security plays a more important role, according to AmeriFlex financial consultant Thomas Goodson.

AmeriFlex, 3700 State St., Suite 310, is a privately owned wealth management financial consulting firm that started in Santa Barbara in 1988. Company representatives will be writing a Social Security question-and-answer column for Noozhawk that will cover topics such as when seniors should apply for Social Security, Social Security reform, and how working will affect their benefits.

“As a team we will come together to develop a roadmap that lays out the probability of having money until the end of their life” Goodson said.

When it comes to Social Security, young participants are contributing to the system but Goodson said he believes they will receive it later, pay more and get less.

Justin Anderson

Justin Anderson

One of the biggest misconceptions is that people should cash in their Social Security as soon as they can, said AmeiFlex financial planner Justin Anderson, CFP. If those born in 1943 or later delay their benefits past age 66, they will receive a delayed credit of 8 percent per year up to age 70.

Husbands and wives can also claim benefits at different times to potentially maximize them over both of their lifetimes. There are some techniques that take a little expertise to navigate, Anderson said.

“It’s a work in progress that requires an organic plan based on a holistic makeup of income, or lack thereof, from traditional sources like banks, growth from traditional sources like equities, and income from Social Security, pensions, IRAs and other investments,” Goodson said. “That’s why the planning is so important.”

Click here for the first AmeriFlex Social Security Q&A column.


AmeriFlex Financial Services will launch “Savvy Social Security Planning for Boomers” at the local Santa Barbara AARP meeting June 4 at the Louise Lowery Davis Center, 1232 De la Vina St. in Santa Barbara. Click here for more information, or call 805.898.0893.

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