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Theres a lot of thought that goes into it and his advice is incredibly helpful.
Here are the bills you should pay with your Social Security check.
Also here is the average Social Security payment in every state.
Mendenhall thinks your primary approach should be to take care of the essentials first.
So, what does that mean for you?
Housing costs (rent or mortgage)
2.
Utilities (electricity, water, gas)
3.
Mendenhall thinks you should tackle these head-on with your Social Security check.
These can quickly erode your financial stability.
In other words, paying off high-interest debt is like giving yourself an instant raise.
Who doesnt want that?
The Power Play: Delay If you might
Now, heres where things get interesting.
Thats right by waiting, youre essentially earning a guaranteed 8% return each year.
If you’ve got the option to hold off, it quite literally pays.
So, if you might: Delay, delay, delay.
Consider the tax implications when deciding whether to spend or invest your Social Security checks, he noted.
Social Security benefits are taxed more favorably than withdrawals from retirement accounts.
To put it simply?
Your Social Security might be your most tax-friendly income source and one that you should use wisely.
What does this mean for you?
Keep your ear to the ground and be ready to adjust your strategy as needed.
The Final Word
So, there you have it!
You just have to think strategically about your needs and goals.
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