"For many people, retirement wouldn't be possible without Social Security. But younger workers may need to wait longer to get those monthly benefits in full. Anyone can claim Social Security starting at age 62. But if you want those monthly benefits without a reduction, you're going to have to wait until full retirement age (FRA) to claim them. FRA, however, isn't what it once was. For a long time, it was 66."
"And that's not all. Social Security is facing the possibility of benefit cuts. And one potential solution to that problem is to push back FRA to age 68 or 69. Since you may end up needing to wait longer to claim your Social Security benefits in full, it's important to have access to outside income in case you decide to retire earlier. And that's where the right investment portfolio comes into play."
"The Vanguard S&P 500 ETF, or VOO, has long been a popular choice among investors because it offers the benefits of instant diversification. VOO tracks the S&P 500 index, which is comprised of the 500 largest public companies by market capitalization. In other words, when you invest in VOO, you're putting your money into established businesses across a range of industries. Since inception, VOO has rewarded investors with a roughly 15% return. Also, Vanguard is known for its low-cost ETFs in general."
Full Social Security benefits require waiting until full retirement age (FRA), which is now 67 for those born in 1960 or later. Policymakers may consider pushing FRA further to 68 or 69 to address potential benefit cuts. Claiming benefits early at age 62 leads to reduced monthly payments, so outside income is important for those who wish to retire earlier. A diversified investment portfolio can provide that income. The Vanguard S&P 500 ETF (VOO) offers instant diversification, exposure to large-cap companies, low fees, and historically strong returns. Vanguard Total Stock Market ETF (VTI) offers broader market diversification and potential upside.
Read at 24/7 Wall St.
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