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
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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
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16. When To Take Social Security
16When to Take Social Security
Strategy 2: Don’t Elect too Early
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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
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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|