Social Security Optimization

Electing when to receive Social Security benefits is one of the most important decisions of your retirement. Yet it’s one that many people put little thought into. They either elect their benefits at the earliest age to receive them longer or wait until age 70 to collect a larger monthly amount.

Social Security CardEach year you delay the start of your benefits, your monthly amount increases by about 8 percent, not including cost-of-living increases. The optimal timing of your benefits depends on your situation, your retirement plans and your other income sources. For married couples, there are hundreds of election age combinations from which to choose.

There are also scenarios in which your Social Security benefits could be taxable. Therefore, it’s important to consider how to minimize your tax obligations when making a benefits selection decision.

You may also want to take advantage of what are called “Switch Strategies.” If you file prior to full-retirement age, you are deemed to have filed for all benefits for which you are eligible. At full-retirement age and beyond, you have several options to elect a limited benefit for a period of time, then “switch” to a larger benefit in the future.

For most people, Social Security is the only income stream that is adjusted for inflation each year, continues to pay as long as you live, and is backed by the federal government. Therefore, recipients should understand their options and try to make the decisions to maximize those benefits. With all the complexities involved in electing Social Security benefits, it helps to work with somebody who understands the program.

Infinite Wealth Advisors can help you start preparing for this decision by providing a no-obligation analysis of your situation and your Social Security options.

 

 13545 – 2014/7/10

 

If you would like more information or have specific questions, please contact us using the following form. We would be happy to assist you.

This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .