Social Security Timing Quick Start Video
Adding a Client
We're going to look at my favorite couple Bob and Sally. Once we've entered a date of birth and a life expectancy for each person, we hit next.
As we carry through the case, we're going to enter are things like their benefit at full retirement age, as well as the statement that you're pulling that benefit from. In this case, I gave both Bob and Sally a benefit. I have also indicated that Bob is going to continue working until he's 67. They have a need of $6,000, and I've reduced that need to $5,000 after one of them passes. Once everything is entered into the case, we get out to our results screen.
Tip: Use our Social Security Timing intake forms to make data entry a breeze. You can find the married client intake form here. Use this intake form for your single/widowed/divorced clients.
Strategy Comparison Chart
Every case is always going to produce a suggested strategy, which is our blue bar, as well as an earliest strategy, which is the red bar. The earliest is simply the earliest you can file for any benefit at all. So when we look at this, the earliest strategy is for Bob to file for benefits right now. He is currently 62 and 11 months. However, his benefit will be zero because of the earnings test. This is because we entered that he is still working. Our suggested strategy is the strategy intended to get them the most benefits over the course of the lifetime. We're not looking at them as individuals, but rather how we get the couple, the most benefits this includes Sally's benefits, Bob's benefits and survivor benefits. Contrary to popular belief, the suggested strategy is not always delay until age 70. The suggested strategy is strongly driven by the life expectancy, as well as the dates of birth that are entered for your case.
You also have the ability to create alternate strategies in this section down below, find strategies by claim, age, enter your own strategy or common alternatives. The common alternatives are the, for most commonly created alternates in our product. You can add them with the click of a button.
- You have the widest split, which is the lowest wage earner filing as soon as possible. The highest wage earner delaying as long as possible.
- Both at full retirement age
- Both in January of the year they turn full retirement age
- Both delaying until 70.
In this example, I've added an alternate where they both file at full retirement age, and that's this green bar.
The Breakeven Chart
Each dot on the breakeven chart is representing a life expectancy combination. It's simply an X/Y grid. The colors correspond to the strategies on the left. With a married couple, the breakeven point all depends on who lives to what age. So everywhere you see two different colored dots bump up against each other, those are all potential breakeven points. As you hover over the dots, you can see the lifetime total of each strategy based on that life expectancy combination. So on this dot, Bob's longevity is 86 and Sally lives until age 88. The suggested strategy nets a lifetime benefit of $875,153 and the alternate $851,000. As I move a little closer, the difference gets smaller and smaller. We get right next to where we would switch into the green. The suggested strategy is $775,000 and the alternate is $769,000. As soon as we cross into that green color, alternate slightly edges out the suggested strategy and the same as things happens as we get closer to the earliest strategy.