Do you feel like navigating the Social Security maze is like going on a blindfolded scavenger hunt with no help and no map? With thousands of combinations of strategies to maximize your Social Security benefits, it's no wonder most people are frozen with fear.
With so many baby boomers facing the same dilemma, you're in good company.
The great news is help is within reach! First things first, one of the simplest ways to increase your lifetime benefits is to take advantage of the Delayed Retirement Credits (DRC) which allows your benefit to grow by 8% per year till age 70.
However, many times when we suggest this strategy, we hear the same words over and over again - (said in a whining voice) "But I want my benefits now because I may die next year".
Debbie's opinion from many years of experience? It's not about if you 'die to soon', it's what happens if you 'live too long?'.
Since our goal is to protect future risk and give you options, we are always on the hunt for ways to stop our clients from whining.
In this case, the risk of maximizing your Social Security benefit is dying too soon, right? So here is one of the hidden secrets of Social Security that is a simple solution should the worst scenario appear before your age 70.
Note: this strategy is for SINGLE people only.
John planned on working till age 75, didn't need the money and therefore wanted to maximize his Social Security benefits and delay taking them till age 70.
His benefit at age 66 would have been $2,000/month.
By delaying till age 70, his benefit would have increased to $2,640/month.
Since he works with our Team, at his age 66, he 'filed and suspended' his benefit.
It still allowed him to achieve his goal of growing his benefit till his age 70.
Unfortunately, at age 69, the worst happened...
he got the news that he had terminal brain cancer.
He no longer had a need to maximize his monthly benefit because he knew he would transition sooner than later.
But because of that one simple phone call he made at age 66 to file and suspend his benefit, he was able to retroactively terminate the suspension of his benefits and receive a LUMP SUM payment of $72,000! Now, if you're like the rest of us, no one wants to think of themselves in the worst possible health scenario and neither did John, the picture of health.
By making that one phone call though, it did not hurt John's current plan, it only enhanced his options for the 'just in case' possibilities.
After all, if you found yourself in this tragic situation, what good could you do with an extra $70k or so? Trip around the world with the family? Donations to your church or favorite charity? Help your children or grandchildren with a down payment on a home? The possibilities are endless! Remember, if you are married, be very careful! By doing this strategy, it will decrease the amount your spouse will receive upon your transition.
There are other strategies which will benefit you and your spouse, not this one.
Always consult with the Social Security Administration to validate this strategy.
While the SSA will not voluntarily send you a letter notifying you of this option, they will answer your question.
As an insurance agent for more years than I care to count (and former financial advisor), I peek behind the finance/insurance curtains and search for hints and tips that will put you in a better health and wealth position.
With education and compassion, our Team of specialists help to navigate the most confusing of subjects with ease, help you choose the best options for your personal situation, explain the pros/cons of each option and most of all, offer peace of mind and a reason to sleep well at night!
With so many baby boomers facing the same dilemma, you're in good company.
The great news is help is within reach! First things first, one of the simplest ways to increase your lifetime benefits is to take advantage of the Delayed Retirement Credits (DRC) which allows your benefit to grow by 8% per year till age 70.
However, many times when we suggest this strategy, we hear the same words over and over again - (said in a whining voice) "But I want my benefits now because I may die next year".
Debbie's opinion from many years of experience? It's not about if you 'die to soon', it's what happens if you 'live too long?'.
Since our goal is to protect future risk and give you options, we are always on the hunt for ways to stop our clients from whining.
In this case, the risk of maximizing your Social Security benefit is dying too soon, right? So here is one of the hidden secrets of Social Security that is a simple solution should the worst scenario appear before your age 70.
Note: this strategy is for SINGLE people only.
- When you turn Full Retirement Age (if born between '43 & '54, FRA is age 66 - increasing after '54), file for your benefits and suspend them.
- By suspending you benefits, you retain the right to subsequently CHANGE YOUR MIND.
At any time prior to age 70, you can file to receive benefits BACK to when benefits were suspended (FRA).
Tah dah...
a lump sum of money!
John planned on working till age 75, didn't need the money and therefore wanted to maximize his Social Security benefits and delay taking them till age 70.
His benefit at age 66 would have been $2,000/month.
By delaying till age 70, his benefit would have increased to $2,640/month.
Since he works with our Team, at his age 66, he 'filed and suspended' his benefit.
It still allowed him to achieve his goal of growing his benefit till his age 70.
Unfortunately, at age 69, the worst happened...
he got the news that he had terminal brain cancer.
He no longer had a need to maximize his monthly benefit because he knew he would transition sooner than later.
But because of that one simple phone call he made at age 66 to file and suspend his benefit, he was able to retroactively terminate the suspension of his benefits and receive a LUMP SUM payment of $72,000! Now, if you're like the rest of us, no one wants to think of themselves in the worst possible health scenario and neither did John, the picture of health.
By making that one phone call though, it did not hurt John's current plan, it only enhanced his options for the 'just in case' possibilities.
After all, if you found yourself in this tragic situation, what good could you do with an extra $70k or so? Trip around the world with the family? Donations to your church or favorite charity? Help your children or grandchildren with a down payment on a home? The possibilities are endless! Remember, if you are married, be very careful! By doing this strategy, it will decrease the amount your spouse will receive upon your transition.
There are other strategies which will benefit you and your spouse, not this one.
Always consult with the Social Security Administration to validate this strategy.
While the SSA will not voluntarily send you a letter notifying you of this option, they will answer your question.
As an insurance agent for more years than I care to count (and former financial advisor), I peek behind the finance/insurance curtains and search for hints and tips that will put you in a better health and wealth position.
With education and compassion, our Team of specialists help to navigate the most confusing of subjects with ease, help you choose the best options for your personal situation, explain the pros/cons of each option and most of all, offer peace of mind and a reason to sleep well at night!
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