Help Clients Make Better Social Security Decisions

Right now, Sarah is living off of $20,000 of annual income from part-time work and withdrawals from the investment portfolio that was created with life insurance proceeds from her husband’s death. The portfolio generated approximately $10,000 of bond interest and $20,000 of realized long-term capital gains last year. Sarah believes that her part-time work prevents her from taking Social Security benefits. However, you recognize that although she will likely forfeit at least one benefit check each year, she has a lot to gain by optimizing her Social Security decision. Since Sarah is a widow, she has access to her husband’s benefit, as well as her own. There are several layers of complexity to the widow(er) benefit that make it difficult to determine whether to claim widow(er) benefits early, when to wait, and when to switch to the survivor’s own benefit. Social Security Timing® helps you identify the best possible election strategy to help Sarah achieve the maximum Social Security benefit possible. The suggested strategy delivers approximately $100,000 greater value than simply filing for the highest benefit available now (which is the Social Security Administration’s default).

James Johnson and Jennifer Johnson are a married couple who have come to you for help with their retirement plan. They are a little uneasy when they walk into your office. They feel overwhelmed by all of the different details and considerations, and they don’t know who to trust. The right process can make them feel comfortable.

You know that Social Security should be the foundation of the overall retirement plan. For a married couple, it doesn’t always make sense for both individuals to simply delay their benefits; there are other factors to consider for example, if James and Jennifer have debt and high interest rates or illiquid assets that can’t currently be used for retirement income, one spouse may need to claim early and one may need to wait since they may need the cash flow. Start by running a report in Social Security Timing® and reviewing the suggested alternate strategy. Social Security Timing allows you to see which claiming strategy will make the most sense for James and Jennifer.