The article discusses how different types of income impact Social Security benefits, emphasizing that while capital gains from selling assets can reduce benefits for the year, passive income from bonds and dividends does not have this effect. It suggests that individuals begin building a dividend-paying portfolio in their late 40s or early 50s to secure a steady income in retirement. Furthermore, it points out that even significant financial mistakes in planning do not mean one is doomed to miss retirement, encouraging readers to assess their retirement strategy.
Significant capital gains from asset sales can temporarily increase Social Security and Medicare deductions, inadvertently lowering benefits for that year.
Social Security benefits can remain unaffected by passive income sources, highlighting the importance of pensions and dividends in retirement planning.
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