Understanding Social Security Seminar
•Descargar como PPTX, PDF•
1 recomendación•492 vistas
A comprehensive look at smart ways to get more social security. Everything you ever wanted to know about how social security works. Figure out when is the best time and way to take social security for you (and your spouse).
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (19)
Similar a Understanding Social Security Seminar
Similar a Understanding Social Security Seminar (20)
Último
Último (20)
Understanding Social Security Seminar
- 1. Smart Ways to Get More Social Security Income John/Jane Smith j.smith@xyzadvisor.com | www.xyzadvisor.com www.infinitewealthamerica.com rbecker@planmembersec.com 832-374-0141 Richard A. Becker
- 2. When To Take Social Security 2When to Take Social Security • Choose Wisely • 100’s of combinations • More Important than ever Choose Your Income Election Wisely! 2
- 3. When To Take Social Security 3When to Take Social Security DISCLAMER: This presentation is not endorsed by the Social Security Administration, nor are we affiliated with Social Security. This presentation is for informational purposes only. Individual situations vary. Every effort has been made to make sure all information is up-to-date but is subject to change at any time., and negatively financially impact your decisions based on the presented information. You are encouraged to seek professional advice in these matters and verify they are up-to-date. Copyright April 10, 2015. Richard A. Becker, Financial Advisor 3 Richard is certified by the National Social Security Association as a National Social Security Advisor. He is also General Partner for Texas Infinite Wealth Planners, LLP.
- 4. When To Take Social Security 4When to Take Social Security • Why file correctly very first time • 6 strategies for more income • Your best-fit claiming method We’ll Learn . . . 4
- 5. When To Take Social Security 5When to Take Social Security • The “Octopus” • Terms • Solvency • Benefit calculation • Life expectancy Basics . . . 5
- 6. When To Take Social Security 6When to Take Social Security The Octopus 6
- 7. When To Take Social Security 7When to Take Social Security • Rules, case studies presented herein apply to those of us born between 1943 – 1954 • SS – Social Security • FRA – Full Retirement Age, age 66, when you receive 100% of PIA • PIA – Primary Insurance Amount, monthly SS income if begun at FRA Assumptions & Terms 7
- 8. When To Take Social Security 8When to Take Social Security • COLA – Cost of Living Adjustment • Primary Wage Earner – Spouse with higher PIA • Secondary Wage Earner – Spouse with lower PIA • LE – Life Expectancy • AIME – Average Indexed Monthly Earnings Assumptions & Terms 8
- 9. When To Take Social Security 9When to Take Social Security Is It Solvent? 9
- 10. When To Take Social Security 10When to Take Social Security How is Income Calculated? 10 • Using your highest 35 years of earnings, zeros included • A wage index factor is applied to adjust forward and convert to current dollars • The sum of these adjusted earnings are divided by the total months in 35 years, 12 x 35 = 420 • This equals your AIME, Average Indexed Monthly Earnings
- 11. When To Take Social Security 11When to Take Social Security How is Income Calculated? 11 For example, if your AIME is $6,000, your PIA is: 90% of first $826 = $743 32% of the next $4,154 = $1,329 15% of amount over $4,980 = $153 PIA = $2,225 2015 bend points $826 and $4,980
- 12. When To Take Social Security 12When to Take Social Security Life Expectancy 12
- 13. When To Take Social Security 13When to Take Social Security Life Expectancy Statistics 13 1000 born in 1927- at age 80 in 2007, 480 men and 620 women living Source: Social Security, Actuarial Publications, 2007 Period Life Table
- 14. When To Take Social Security 14When to Take Social Security Six Strategies 14 1) Claim and get it right the first time 2) Don’t elect too early 3) If married, use your living spousal income benefit 4) If married, leverage the survivor benefit income stream 5) Compute your optimal benefit 6) Align your election strategy with your overall portfolio
- 15. When To Take Social Security 15When to Take Social Security Strategy 1: Claim Correctly the 1st Time 15
- 16. When To Take Social Security 16When to Take Social Security Strategy 2: Don’t Elect too Early 16
- 17. When To Take Social Security 17When to Take Social Security Strategy 2: Don’t Elect too Early 17 Claimant Age Benefit Amount % of PIA Claiming Zone Benefit Adjusted 2.8% for Inflation 62 1725 75 Actuarial Reduction “Penalty Zone” 1725 63 1840 80 1891 64 2001 87 2114 65 2139 93 2323 66 2300 100 PIA Income Amount 2568 67 2484 108 Delayed Retirement Credits “Bonus Zone” 2851 68 2668 116 3148 69 2852 124 3460 70 3036 132 3786
- 18. When To Take Social Security 18When to Take Social Security Strategy 2: Don’t Elect too Early 18
- 19. When To Take Social Security 19When to Take Social Security Strategy 2: Don’t Elect too Early 19 Life Expectancy: 50% Chance of Living to . . . CumulativeLifetimeIncome Break Even 79 Men 85 Women 88 One of a Couple 92
- 20. When To Take Social Security 20When to Take Social Security Strategy 2: Don’t Elect too Early 20 • Social security best-fit discussion • Consider life expectancy, single, married, needs . . .
- 21. When To Take Social Security 21When to Take Social Security Strategy 3: Spousal Income Benefit 21 Harness the power of little-known spousal income benefit
- 22. When To Take Social Security 22When to Take Social Security Strategy 3: Spousal Income Benefit 22 Spousal Benefit = ½ your spouse’s PIA at your FRA
- 23. When To Take Social Security 23When to Take Social Security Strategy 3: Spousal Income Benefit 23 John’s PIA = $2,200 Jane’s PIA = $ 300 Jane’s spousal benefit at FRA = $1,100
- 24. When To Take Social Security 24When to Take Social Security Strategy 3: Spousal Income Benefit 24 Spousal Income Benefit Rules . . . • Spouse at FRA gets 50% of other spouse’s PIA • Benefit reduced pro-rata between 62 and 66 (35% at age 62) • One spouse must claim, or file and suspend at FRA, for other spouse to collect
- 25. When To Take Social Security 25When to Take Social Security Strategy 4: Survivor Income Benefit 25 Plan for your surviving partner’s income stream
- 26. When To Take Social Security 26When to Take Social Security Strategy 4: Survivor Income Benefit 26 Jim & Linda Heartland $2,300 $300
- 27. When To Take Social Security 27When to Take Social Security Strategy 4: Survivor Income Benefit 27 Jim passes on; Linda receives . . . $2,300
- 28. When To Take Social Security 28When to Take Social Security Strategy 4: Survivor Income Benefit 28 Jim dies at 82 and Linda, age 77, collects survivor income for 16 years $2,300 Jim’s Election Age Linda’s Monthly Income Linda’s Benefit In widowhood Elect at 62 $1,725 $331,200 Elect at 70 $3,036 $582,912 Difference $1,311 $251,712
- 29. When To Take Social Security 29When to Take Social Security Strategy 5: Compute Your Optimal Benefit 29 • Single or married? • Your Social Security “Vitals” • Case Studies to illustrate
- 30. When To Take Social Security 30When to Take Social Security Strategy 5: Compute Your Optimal Benefit 30 • Timing • PIA • Life Expectancy • Relationship History • Financials
- 31. When To Take Social Security 31When to Take Social Security Strategy 5: Compute Your Optimal Benefit 31
- 32. When To Take Social Security 32When to Take Social Security Strategy 5: Compute Your Optimal Benefit 32
- 33. When To Take Social Security 33When to Take Social Security Strategy 5: Compute Your Optimal Benefit 33 Case Study 1: The Metros “Claim Some Now, More Later” Case Study 2:The Heartlands “File and Suspend”
- 34. When To Take Social Security 34When to Take Social Security Strategy 5: Compute Your Optimal Benefit 34 Case Study 1: The Metros Bob Metro age 63 (LE = 82) Secondary Earner ------------------------ PIA $2,000 Mary Metro age 61 (LE = 86) Primary Earner --------------------- PIA $2,200
- 35. When To Take Social Security 35When to Take Social Security Strategy 5: Compute Your Optimal Benefit 35 Case Study 1: The Metros Claims at age 68 $2307 for life (Bob’s PIA = $2,000) Collects $1000 age 66-70 Switch to own at 70 $2904 for life (Mary’s PIA = $2200)
- 36. When To Take Social Security 36When to Take Social Security Strategy 5: Compute Your Optimal Benefit 36 Case Study 1: The Metros
- 37. When To Take Social Security 37When to Take Social Security Strategy 5: Compute Your Optimal Benefit 37 Case Study 2: The Heartlands Jim Heartland age 66 (LE = 82) Primary Earner -------------------- PIA $2,300 Linda Heartland age 61 (LE = 93) Secondary Earner ------------------------ PIA $300
- 38. When To Take Social Security 38When to Take Social Security Strategy 5: Compute Your Optimal Benefit 38 Case Study 2: The Heartlands Age 66, files and suspends, Age 70, collects $3,036 for life, Age 82, dies Age 63, collects $825, After Jim dies, age 77-93, Collects $3,036
- 39. When To Take Social Security 39When to Take Social Security Strategy 5: Compute Your Optimal Benefit 39 Case Study 2: The Heartlands
- 40. When To Take Social Security 40When to Take Social Security Strategy 5: Compute Your Optimal Benefit 40 Case Study 3a: Sally Solo, Single Sally Solo age 60 (LE = 88) PIA $1,600
- 41. When To Take Social Security 41When to Take Social Security Strategy 5: Compute Your Optimal Benefit 41 Case Study 3a: Sally Solo, Single Best Claims at 70 $481,536 Worse Claims at 62 $376,584 Difference $104,952
- 42. When To Take Social Security 42When to Take Social Security Strategy 5: Compute Your Optimal Benefit 42 Case Study 3a: How Sally Single Maximizes Her Social Security Income CumulativeLifetimeIncome LE = age 88, age 70 = $481,536, age 62 = $376,584
- 43. When To Take Social Security 43When to Take Social Security Strategy 5: Compute Your Optimal Benefit 43 Case Study 3b: Sally Divorced • Married > 10 years • Ex-husband PIA = $2000 • Takes ex-spousal income benefit then switches to own
- 44. When To Take Social Security 44When to Take Social Security Strategy 5: Compute Your Optimal Benefit 44 Case Study 3: Sally Solo $1,000 monthly ex-spousal income Switch to own benefit at 70
- 45. When To Take Social Security 45When to Take Social Security Strategy 5: Compute Your Optimal Benefit 45 Case Study 3: Sally Solo
- 46. When To Take Social Security 46When to Take Social Security Strategy 5: Compute Your Optimal Benefit 46 Case Study 3: Sally Widowed • Married > 9 months • Deceased husband’s PIA = $2000 • Takes survivor benefit then switched to own
- 47. When To Take Social Security 47When to Take Social Security Strategy 5: Compute Your Optimal Benefit 47 Case Study 3: Sally Solo Switch to own benefit at 70
- 48. When To Take Social Security 48When to Take Social Security ~ ClientFirst Financial ~ www.clientfirst.info Strategy 5: Compute Your Optimal Benefit 48 Case Study 3: Sally Solo
- 49. When To Take Social Security 49When to Take Social Security Strategy 5: Compute Your Optimal Benefit 49 Case Study 3: Summary • Sally Single • Sally Divorced • Sally Widowed
- 50. When To Take Social Security 50When to Take Social Security Strategy 5: Compute Your Optimal Benefit 50 Case Study 3: Sally Solo Summary $376,584 $481,536 $529,536 $653,136 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 Total LifetimeBenefit Sally Solo Income Benefit Scenarios Sally PIA = $1,600 Husband’s PIA = $2,000 Sally Single, Age 62 Sally Single, Age 70 Sally Divorced, 66 SP, 70 Own Sally Widowed, 60 Survivor, 70 Own
- 51. When To Take Social Security 51When to Take Social Security Strategy 6: Align Your Election Strategy 51 Align your election strategy with your overall portfolio
- 52. When To Take Social Security 52When to Take Social Security Strategy 6: Align Your Election Strategy 52 • Income • Investment accounts • 401(k) • IRA • Life insurance • Mortgage
- 53. When To Take Social Security 53 Social Security Election Asset Placement Sequence of Withdrawal Strategy 6: Align Your Election Strategy StandardofLiving Financial Decisions / Age Age 70 ½ RMDs Combined Income/SS Tax These decisions affect your retirement standard of living 53When to Take Social Security
- 54. When To Take Social Security 54 Strategy 6: Align Your Election Strategy 54When to Take Social Security
- 55. When To Take Social Security 55 • Filing correctly you can gain $100s of thousands of income • Get it right the first time (one year ruling) • Use the 6 strategies you’ve learned today • We look forward to helping you Summary 55When to Take Social Security
- 56. When To Take Social Security 56 Next Steps 56When to Take Social Security
- 57. When To Take Social Security 57 Next Steps 57When to Take Social Security
- 58. Thank You! 5858 Richard A. Becker Financial Advisor Texas Infinite Wealth Planners LLP rbecker@planmembersec.com|