Social Security is America’s retirement system for most retirees. Advisers recommend that Social Security should comprise 40% of your retirement income. That’s just economic ideology that isn’t rooted in reality. For most of the middle class, Social Security benefits represent over half of their retirement income. That wouldn’t be so bad if Social Security benefits weren’t subject to ordinary income tax. To many American retirees, taxing Social Security is a broken promise. As recent as three years ago, many politicians promised not to alter Social Security benefits for the Baby Boomers. But in the stealth of night the Congress, shut down the “file and suspendâ€� option for most Boomers and transferred the monies to support the near bankrupted Social Security disability fund. Many Boomers lost between $20,000 and $30,000 dollars due them. Social Security benefits generally paid a cost of living increase, but over the last seven years, the increase was either slight or none at all, i.e. not keeping pace with the real cost of living. To protect Social Security benefits from being taxed, you have to defend two access points: one is Social Security income itself and other investments that are includable in the provisional income test for   Read more…