We are talking about the two main risks of Social Security today. #1 is the risk of taking your social security too early and #2 is that your social security will be taxable.
In fact today we’re going to focus on the second risk that faces you regarding your Social Security and that is that your social security will be taxable.
Now, when it comes to talking about Social Security tax, this is an area that many people often say why it’s one of those taxes very much like an estate tax. Why do we have to pay taxes on an estate? When we paid taxes on all the income that we earned during our lifetime that created this estate? Or maybe why do I have to pay taxes on a used vehicle that I purchased when the taxes were paid when the vehicle was sold brand new to the first person who purchased the car? When we talk about social security taxation, it brings about a lot of ways people do not understand why taxes would be applied. But hopefully as we go through the podcast today, maybe you can get a better understanding of why this is the case.