What’s the tax torpedo all about?
The tax torpedo hits when your combined income reaches a certain threshold. It triggers additional taxation on your Social Security benefits.
For single filers with combined income above $34,000 or married couples filing jointly above $44,000, up to 85% of Social Security benefits can be taxed. Even if your income is between $25,000 and $34,000 as an individual or $32,000 and $44,000 as a couple, 50% of your benefits might still be taxed.
This scenario is more common than you may think, with 40% of Social Security beneficiaries paying taxes on their benefits. Plus, the rate at which you’re taxed can also be higher than you’d initially expect if your provisional income calculation bumps you into a higher Social Security tax bracket.
If you’re already worried about where you’ll land with taxes in retirement, rest assured there are accredited professionals who can help.
Finding a financial advisor that suits your specific needs and financial goals is simple with Vanguard.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.
Yet another deadly blow strikes if you're in a state that charges income tax as well. Here’s the good news: if you’re using a Roth account instead, you can avoid that tax torpedo’s devastation. There are tons of other ways you can reduce your reliance on Social Security in retirement overall, such as developing a healthier and more robust retirement portfolio.
Orman also emphasized the importance of regularly reviewing your financial portfolio in a recent blog post. “You should log in and make sure your mix of investments — stocks/bonds/cash/ — is in line with your long-term goals.”
Why Roth IRAs matter
Qualified Roth IRA withdrawals (after age 59-and-a-half and meeting the 5-year rule) are tax-free, and they don't count towards that previous income calculation.
Orman is a big proponent of Roth IRAs and encourages all her followers to get as close to the maximum contributions as possible. In a blog from last year, she wrote, “If you don’t typically contribute up to the maximum, I hope you will consider pushing yourself to increase your retirement savings.”
Because Roth IRA withdrawals are tax-free, they keep your combined income lower, helping you to hopefully avoid triggering the Social Security taxation thresholds. That’s where assets that protect you from inflation or market volatility can lend a big hand.
A gold IRA, for example, allows you to hold physical assets like gold, providing a hedge against both the ups and downs of the market and inflation. Although it will be subject to income tax and will contribute to your taxable income upon retirement, a gold IRA can be a risk-adjusted complement to a Roth IRA, which could be riskier depending on the assets you hold inside.
Opting for a gold IRA allows you to invest directly in physical precious metals rather than stocks and bonds.
Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2025 gold investor bundle.
More ways to secure your retirement
When planning for retirement, you don’t just want to consider the types of accounts available, like Roth IRAs or gold IRAs. Make sure you’ve got the right stocks, ETFs, and savings plans bringing in those returns for a comfy retirement.
IRAs can provide certain tax advantages, but if you aren’t properly investing within them, they won’t help much.
“I encourage you to keep returning to this thought exercise,” Orman wrote in a recent LinkedIn post. What are the financial steps you might take today to be kindest to your future older self? The 88-year-old, the 90-year-old, the 95-year-old?”
Add real estate to your retirement portfolio
Beyond investing in the stock market, real estate is a fantastic way to diversify your portfolio for retirement and trim back any reliance on Social Security.
But it can be cumbersome, costly and very admin-heavy.
If you want to buy property in America, the average cost is $495,000 across the country. For most, a 40% down payment on that price tag just isn’t feasible. And that could mean you’re looking at a mortgage rate of around 6%.
Then there’s the added cost of maintenance and upkeep. That averages around $18,000 a year, which is steadily climbing and already 26% higher than four years ago.
You can circumvent that costly mess with First National Realty Partners (FNRP), which allows accredited individual investors to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.
You can even invest through a Roth IRA — meaning you’ll receive tax-free payments and distributions that won’t be added to your combined income calculation.
FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods. You can engage with experts, explore available deals and easily make an allocation in an all-in-one personalized portal.
Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, along with the added advantage of diversification across various regional markets – all with a minimum investment of $25,000.
With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund offers accredited investors a low-maintenance alternative to traditional property ownership.
Continue investing and saving
You can continue investing even in retirement. Investing spare change from everyday purchases can add up quickly without putting a strain on your finances.
Acorns is an automated investing app that makes building a smart portfolio easily accessible.
All you have to do is sign up and follow the steps to link your bank account. The app will automatically round up the total cost of your purchases and invest the difference in a diversified portfolio of ETFs. So, all it takes to help strengthen your portfolio and save for retirement is to make your everyday purchases and watch your money grow.
Plus, you can get a $20 bonus when you sign up today. These simple, effective tools for growing your savings are sure to be Suze-approved.
You can also continue to contribute to low-risk investments even in retirement. This can help you build wealth without having to worry about market fluctuations.
Conservative vehicles like certificates of deposit (CDs) can offer as much interest as a high-yield savings account, and often more if you opt for a longer term.
You can compare rates offered by different financial institutions on CDs through SavingsAccounts.com. A side-by-side comparison can help you choose the best option without having to visit banks or scroll through multiple websites.
If you want easy access to your funds, a high-yield savings account might be your best bet. Check out Moneywise’s top picks for the Best High-Yield Savings Accounts of 2025 to compare more options for growing your savings safely.
