Blog (47)

Social Security

Avoid the estimates on Social Security statements

on September 22, 2015 | By Katie Godbout, Vice President of Sales & Marketing

As you meet with clients and obtain their Social Security statements, there are a few things you should review. First, take a look at the second page of the statement, where it states “We based your benefit estimates on these facts: Your estimated taxable earnings per year after 2015…” If you keep reading, you’ll see that the Social Security Administration is assuming you’ll continue to work and make about the same as you did in 2013 or 2014, all the way until the age of the estimate.

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Social Security

Why claiming strategies are not ‘gaming the system’

on September 22, 2015 | By David Cechanowicz, JD, MSFS, CLU®, ChFC®

Social Security turned 80 this year, and as you might expect, it has generated a lot of press — some good, some bad, and some just off the wall. At times, it may feel like you need storm gear to protect yourself from the barrage.

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Social Security

How do I update my client's annual inflation rate?

on September 3, 2015 | By Katie Godbout, Vice President of Sales & Marketing

In the Social Security Timing software you have an option to use the long-term median or you can enter what you like for the annual inflation rate. Our median is a reflection of what the Trustees report sets as the ultimate long-range average annual growth rate in the CPI-W, which was recently set to 2.7%. Read the full report here. Our software has been updated accordingly.

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In The News

Why the lump sum payment doesn't always maximize benefits

on August 26, 2015 | By Katie Godbout, Vice President of Sales & Marketing

Advisors often ask us about Social Security’s lump sum payment because they’ve read articles mentioning this option. These articles often use an example like this: someone files and suspends at 66 with the goal of waiting until 70 to build delayed retirement credits of 8% each year but then is diagnosed with a terminal illness at 68. The client could then request a lump sum payment to act as though he were receiving a benefit amount as early as when he first suspended. We’ve heard rumblings about using this as a potential tax strategy, potentially creating a year or two of completely tax-free income. These articles fail to mention the risks and how this option doesn’t always help when trying to maximize Social Security. Before you suggest a lump sum payment, keep these factors in mind:

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Social Security

How Good Social Security Planning Can Offset 'Disturbing' Trend Hurting Widows

on July 27, 2015 | By David Cechanowicz, JD, MSFS, CLU®, ChFC®

While researching the impact of male Social Security claiming and poverty rates for widows, I have read article after article that illustrates the need for competent financial advising, especially in the area of Social Security claiming decisions and retirement income planning. There is no shortage of research literature that directly ties the financial futures of many women to the claiming decisions of their husbands. For example, a study commissioned by the Federal Reserve in 2012 concludes the following: Husbands are very responsive to their own benefit incentives, but they are not responsive to the incentives created by dependent benefits.1

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Social Security

When helpful advice turns into long-term hardship

on July 27, 2015 | By Katie Godbout, Vice President of Sales & Marketing

Several calls to our office in the past month reaffirm what advisors with Social Security expertise see all too often — consumers can get short-changed when they receive advice at their local Social Security office. To illustrate this, we’ll use the real-life example of a widow who elected to first claim her widow benefits while waiting for retirement benefits to accumulate.

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Social Security

The software field you should never leave blank

on July 27, 2015 | By Katie Godbout, Vice President of Sales & Marketing

At the end of the software’s client wizard, or input screens, you see the question, “What is the desired pre-tax monthly household income upon retirement?” Subscribers often ask the support staff why we ask this question or how the client’s answer effects the calculations. We often see this field blank.

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Social Security

Do you go with the cashflow?

on July 27, 2015 | By Katie Godbout, Vice President of Sales & Marketing

If you have a client who questions the benefit amount in a strategy, walk him or her through a selected strategy’s monthly cashflow to help them understand the strategy better. You can locate the cashflow feature while you have the main workspace open.

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Social Security

Change to printed client report better illustrates income gap

on July 27, 2015 | By Katie Godbout, Vice President of Sales & Marketing

Many subscribers have been asking for a column that calculates the additional years of work and non-Social Security pension income, since we reflect that income in the projected-versus-desired-income graph on the printed report. Thanks to our development team, the summary columns on the cashflow pages now feature a category titled “Other” in the printed client report. The total income from Social Security and the other possible income (additional work years and non-Social Security pension income) is calculated and either subtracted or added to reflect the income gap of the client’s annual income need.

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