Social Security Claiming Strategies – What You Need to Know.

retirmentStudies have shown that proper Social Security claiming, optimal tax efficiency in drawing on tax deferred accounts and proper asset location can amount to a person having as much as 50% more money available to them in retirement.  Determining an appropriate claiming strategy can be a confusing web of information and without proper guidance, it might feel more like throwing a dart at a dartboard than actually making an informed decision.

What is the right age to claim?
Retirees can apply for social security anytime between ages 62 and 70. But, until you or your spouse reaches your full retirement age (FRA), you won’t be able to take full advantage of social security claiming strategies. When determining the best age to claim, keep these considerations in mind:

  • If you claim at 62 there is the potential that you might permanently reduce your benefits as well as the survivor benefits that your spouse will receive.
  • If you claim before your full retirement age, you automatically apply for both worker benefits and any additional benefits you qualify for as a spouse. (This is assuming that your spouse is already receiving benefits.)
  • Choosing to claim social security after your FRA will give you the option to take one benefit or the other.  You can also switch them at a later date, if it makes sense.
  • Delaying your claim until age 70 will maximize the amount of benefits you receive and will lock in the highest possible benefits for a widow or widower.

In addition to proper Social Security claiming strategy, optimizing the tax efficiency of asset draw down and making the right decisions about asset location also have a significant impact on their longevity. Clearly, when it comes to determining the optimum social security claiming strategy, numerous variables are at play. At Financial Fiduciaries, we have been helping our clients make these delicate decisions for years. We would be honored to help you do the same!

About Objectively Speaking

Tom Batterman, founder of Vigil Trust & Financial Advocacy and Financial Fiduciaries, LLC is in the business of representing the best financial interests of his clients. Having provided objective, fee-only financial management services for over two decades, he specializes in managing the investment and related financial affairs of individuals and mutual insurance companies who do not have the time, interest or expertise to manage such matters on their own. As an objective, unbiased professional who takes on a fiduciary responsibility to his clients, he guides clients to the financial decisions they would make themselves if they had years of training and experience and the time and expertise to fully research and understand all of their options. Founded in 2010 as an outgrowth of Vigil Trust & Financial Advocacy, Financial Fiduciaries, LLC is a financial management solution for individuals and mutual insurance companies who recognize they do not have the time, interest or expertise to properly attend to their financial matters on their own. While there are many financial “advisors”, most of them have investment products to sell and the “advice” they provide is geared toward getting their clients to engage in a purchase. As one of the rare subset of advisors known as “fiduciary advisors”, Financial Fiduciaries does not sell any investment product so its guidance is not compromised by conflicts of interest which plague ordinary advisors. Prior to his employment in the financial industry in financial advocacy and trust positions, he worked at a private law practice in the Wausau area in the areas of estate planning, tax, retirement planning, corporate organizations and real estate. He is a graduate of the University of Wisconsin-Madison and the UW-Madison Law School and has during his career held Series 7, 24 and 65 securities licenses. A longtime resident of the Wausau, Wisconsin Area, Tom is active in the community. He enjoys golf, curling, skiing, fishing, traveling and spending time with his family.
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