10 Ways to Maximize Your Social Security

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2 10 Ways to Maximize Your Social Security Little-Known Filing Strategies to Help You Get Every Penny You Are Entitled to By Matthew Allen, Co-Founder, Social Security Advisors Most Americans haven t heard of Ida May Fuller, the first person to receive a monthly Social Security check, but she is likely a good role-model for those nearing retirement. After paying just $24.75 in Social Security taxes during the first three years of the Social Security program, Fuller retired at 65, lived to 100, and received a total of $22, in Social Security benefits during her lifetime. That s quite an impressive rate of return; and regardless of how you slice it, Ms. Fuller certainly maximized her Social Security benefits. Of course, since the days of Ida May Fuller, the Social Security program has changed substantially and Americans now have more options and ways to file for Social Security than ever before. This makes planning and knowing when and how to claim your Social Security extremely important. Those nearing retirement can choose to claim Social Security at 62, 66, 70, or any age in-between; and the longer you wait, the higher your benefits. Also, you have to make a choice as to who s record are you going to claim on and when: your own record, your spouse s, a combination of the two? It easily gets confusing and despite one s best intentions, making the smartest decision possible is complicated Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

3 In this special report, we will cover: Why Claiming Social Security is Complicated How Are My Benefits Calculated? What Benefits Am I Entitled To? Factors to Consider When Claiming Social Security Some Strategies to Maximize Your Social Security & How They re Changing Avoid These Common Mistakes I Made a Mistake, Can I Undo My Decision? Tips & Tricks Where Can I Turn for Expert and Unbiased Advice? Why Claiming Social Security is Complicated While claiming Social Security should be simple, it is anything but that. To start, there are 2,728 rules and for the typical American couple over 9,200 different claiming options. Making an optimal Social Security decision and maximizing your benefits depends on so many variables, including a primary obstacle of not knowing how long you are going to live. While Social Security payments continue for life, the amount that you receive will depend on important decisions that you make; and the amount you receive will critically depend on when you claim your benefit and on which record (i.e., yours, your spouse s, or a combination of the two at different times). For most people, when asked when they think they should claim their Social Security, they immediately respond, as soon as possible. Unfortunately, this is what approximately 70% of Americans mistakenly do. And in doing so, they leave $120,000 on average per couple on the table in lost benefits because they didn t plan and certainly didn t understand their options prior to claiming. In total, there is roughly $25 Billion per year in Social Security benefits left on the table because Americans are not optimizing their Social Security claiming decisions Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

4 Figuring out when and how best to claim Social Security is basically one big math problem and there are right ways and wrong ways of going about it. How Are My Benefits Calculated? Your Social Security benefit is based on your highest 35 years of earnings. In general, the more you contribute over your lifetime, the higher the benefit that you ll be eligible for. Knowing your Full Retirement Age is critical because nearly everything that pertains to Social Security depends on it. Your Full Retirement Age varies depending on your birthday. If you were born between 1943 and 1954, your Full Retirement Age is 66. This is the bulk of the Baby Boom. For every year after 1954, Full Retirement Age increases by two months and reaches 67 for those born in 1960 or later. In general, the longer you wait to collect your Social Security, the higher your monthly benefit will be. At Full Retirement Age, you receive 100% of your Primary Insurance Amount; at 62 (the earliest you can collect a retirement benefit), you receive 75% of your Primary Insurance Amount, and if you wait and collect at 70 years old, you receive 132% of your Social Security Benefits due to Delayed Retirement Credits Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

5 Delayed Retirement Credits are extra credits you earn on your account in exchange for waiting longer to collect your benefit; and they accumulate at an attractive rate of 8% per year hence the 132% at 70 vs. 100% at 66. This 132% will last for the rest of your lifetime; and if you re the higher earner in a couple, it will also be the survivor benefit amount that your lower earning spouse inherits as a survivor benefit. Because of this, it s especially important that the higher earner in a couple accumulate as many Delayed Retirement Credits as possible. To put some numbers to the above example, if your Primary Insurance Amount at Full Retirement Age is $2,000 per month, if you take benefits at 62, you ll receive $1,500 per month (75% of your PIA) and if you take benefits at 70, you ll receive $2,640. So there s a 76% difference between what you can receive at 70 vs. 62. Also, however and very important to know, is that there are ways to do both; start receiving some benefits, while also accumulating Delayed Retirement Credits. This is the one reason that having a Social Security strategy is so critical. A reduced benefit is not the only penalty for filing too early; you ll also reduce and in some cases eliminate your ability to implement some valuable Social Security strategies because they are dependent on your original filing date. For these reasons, claiming benefits at 62 is generally the wrong approach for most people according to Matthew Allen, Co-Founder and CEO of Social Security Advisors, a company that provides personalized Social Security claiming recommendations and helps clients maximize their Social Security. Cash Fatter Social Security Checks As Much as $1,505 or More Each Month Did you know that changing just ONE Social Security filing strategy can increase your retirement benefits by as much as $1,505 every month? In fact, the average couple is leaving approximately $120,000 in lifetime benefits on the table. The good news is that you can simply and easily maximize your Social Security benefits thanks to a handful little-known strategies that can help you get EVERY penny you're owed. Even if you've already filed, you may be able to get a "do-over" and collect more money every month...as much as $1,505 extra per month or more. Watch this brief video to see how Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

6 What Benefits Am I Entitled To? You: If you have worked at least 10 years, you are generally eligible to receive benefits. Technically, you need 40 credits to qualify for a benefit on your own record and your amount of credits can easily be found on your Social Security statement or by creating an account on the Social Security Administration website at Your Spouse: Spouses can claim a benefit worth as much as half of what Social Security pays you even if he/she has enough credits to qualify for his/her own benefit. Your Ex-Spouse: Your ex-spouse can qualify for a benefit of up to half of what Social Security pays you as well. Not to worry though, any benefits paid to an ex-spouse will have no impact on the level of your own benefit. To claim, your ex spouse must be 62 or older, unmarried, and your marriage must have lasted at least 10 years. Your Kids: Minor children of some retirees can receive benefits. A Survivor Benefit: A survivor benefit is available for those who were married or divorced and the amount of the survivor benefit depends on the following: 1) Benefits currently being received, and on which record they are being paid 2) The age at which you claim the survivor benefit 3) The amount of the benefit the deceased was eligible for or receiving, at the time of death. Factors to Consider When Claiming Social Security Marital Status: This is generally the most significant factor in considering when and how best to file for Social Security, mainly because your marital status greatly impacts the Social Security strategies that are available to you. Whether you re single, married, divorced, or a survivor, there are smart ways to claim your benefits. For some rules of thumb and points to consider based on your marital status, you can learn more by clicking here! Life Expectancy & Family Longevity: Life expectancy is a critical factor as well when determining your optimal Social Security strategy, but it is naturally also the most difficult to quantify. A good place to start to obtain an estimate of your life expectancy, is by using the Social Security Administrations Life Expectancy Calculator which can be found here: Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

7 Also, it is important to take into consider your family history and current health status or known health issues. If your parents both lived to 95 years old, and you are in good health, then obviously you should be adjusting higher; whereas, if you have a known health condition at 65, you should be more conservative in your estimate. Because Social Security benefits are a lifetime benefit however, it is generally wise to use a slightly higher life expectancy than usual; after all, one of your biggest risks is taking benefits too early and receiving a lower monthly benefit later in life when you may need the money most. Overall Financial Circumstances: Sometimes you need the money immediately and you have no choice but to file for Social Security early even if it means forgoing higher benefits or implementing a smarter strategy. However, for those who can wait, are still working, or can draw on savings and investments elsewhere, claiming later and optimizing your benefits will be well worth it. Work Status: If you desire to keep working (whether out of pleasure or necessity), the good news is that you can claim benefits and continue to work at the same time under certain circumstances. After you reach Full Retirement Age, there is no penalty for receiving benefits while continuing to work; however, if you claim before your Full Retirement Age, there is a limit to what you can earn from work ($15,720 in 2016) before benefits start to be withheld. Lifestyle Objectives: Obviously, there are also quality of life issues to consider. Perhaps you ve been wanting to take that special vacation or spend more time with your grandkids. These are all very valid and worthwhile considerations. Just be sure to balance these considerations with the financial benefits of making a strategic decision. Some Strategies to Maximize Your Social Security & How They Are Changing Although there will be many valuable Social Security strategies that remain, a new law as part of the Bi-Partisan Budget Bill of 2015 that passed November 2nd, 2015 means that two popular Social Security strategies will be eliminated, and this may change the way that you need to be thinking about how and when to claim your Social Security. Even those who have already claimed can be impacted Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

8 File and Suspend Strategy The Strategy: Using the File and Suspend strategy, one member of a couple claims benefits and the other spouse suspends them. This gives his or her spouse the ability to start claiming a spousal benefit at the appropriate time, while the benefit of the spouse who filed and suspended continues to grow at 8% per year until age 70. This increases not only the benefit payable when it is resumed, but also increases the eventual survivor benefit payable. The Change: Under the new law, when an individual suspends his or her own benefits, all benefits payable, including those payable to a spouse or other dependents, will ALSO be suspended. The new law also eliminates the ability to request a lump-sum benefit back to the date of when benefits were suspended. Why This is Important & What s Happening: Basically, if you don t take advantage of this strategy by the deadline, the ability to have a spouse claim a spousal benefit while the primary filer also receives Delayed Retirement Credits is going away. Failing to take advantage of this strategy can cost many couples $50k to $60k in lifetime benefits or more than $120k when combined with a Restricted Application strategy. Important Deadlines: Those who are receiving benefits already under this strategy will continue to receive them. For those that are not, they must be at least 66 and must file by April 29th, You should consult with an Advisor before deciding whether this is right for you and your spouse because it's not the best strategy for everyone. Those either already implementing this strategy or filing and suspending before April 29th, 2016 will continue to fall under the old rules until they reach 70 or resume benefits. Those who request to suspend after the April 29th, 2016 deadline will be subject to the new rules. What You Should Do: Talk with a Social Security Advisor and obtain expert advice on who should File and Suspend and when. Especially if you or your spouse are going to be 66 or older by April 29th, 2016 you need to pay very close attention and carefully consider your options. The File and Suspend strategy is very valuable and it is important to obtain expert advice prior to proceeding Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

9 Here are specific tips for different types of people: Singles: By April 29th, 2016, all singles 66 and over should highly consider and evaluate filing and suspending in order to preserve the option to receive a lumpsum benefit at a later date. This will no longer be possible after the April 29th, 2016 deadline. Married Couples: All married couples with at least one spouse age 66 to 70, need to consider whether it would be beneficial to file and suspend by the April 29th, 2016 deadline in order to preserve their options and Social Security strategies available to them in order to maximize their benefits. Married couples have the most to lose by failing to consider these strategies prior to the deadline. Divorced: By April 29th, 2016, all divorced individuals 66 and over should highly consider and evaluate filing and suspending in order to preserve the option to receive a lump-sum benefit at a later date. This will no longer be possible after the April 29th, 2016 deadline. Survivors: Interestingly, survivors are unaffected by this new legislation and will continue to have the same options available to them going forward. Survivors should carefully consider their Social Security options however, because they can be eligible for benefits on one record while continuing to accrue Delayed Retirement Credits and claim on the other record at a later date. Restricted Application Strategy The Strategy: Filing a Restricted Application at Full Retirement Age or later allows the filer to file only for spousal benefits (worth up to 50% of their spouse s Full Retirement Age benefit) while letting their own benefits continue to grow and accumulate Delayed Retirement Credits at the rate of 8% per year until they claim their own benefits at a later date. The Change: With the exception of those filing for survivor benefits, anyone born in 1954 or later will no longer be able to file a Restricted Application for spousal benefits only. Those attempting to do so will be subject to the Deemed Filing rule which requires that Social Security consider your eligibility for all benefits for which you are eligible Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

10 Why This is Important & What s Happening: Filing a Restricted Application is being eliminated for those born in 1954 or later (with the exception of those filing for a survivor benefit). Important Deadlines: You must be at least 62 by December 31st, What You Should Do: Talk with a Social Security Advisor and obtain expert advice on who should file a Restricted Application and when. The Restricted Application strategy is very valuable and it is important to obtain expert advice prior to proceeding. Here are specific tips for different types of people: Singles: Because a Restricted Application is only valuable to those that are or have been married, singles will be unaffected by this change. Married Couples: All married couples with a spouse that is at least age 62 but under 70 years old, and who has not already claimed benefits on his/her own record, need to consider whether it would be beneficial to file a Restricted Application to help them maximize their benefits. Married couples have the most to lose by failing to consider these strategies. Failing to take advantage of this strategy can often cost couples $50k to $60k in lifetime benefits or more than $120k in lifetime benefits when combined with a File and Suspend strategy. Divorced: All divorced individuals born prior to 1954 who have not already claimed benefits on their own record should highly consider and evaluate filing a Restricted Application in order to preserve the option to receive ex-spousal benefits while also obtaining Delayed Retirement Credits. This is often worth $50k to $60k in benefits. Survivors: Survivors are unaffected by this new legislation and will continue to have the same options available to them going forward. However, Survivors should carefully consider their Social Security options because they can be eligible for benefits on one record while continuing to accrue Delayed Retirement Credits and claim on the other record at a later date. In addition to the above two strategies, there are many others available whether you re single, married, divorced, or a survivor. It s of the utmost importance to figure out which strategy is best for you and your unique circumstances. Learn How to Maximize Your Social Security in My New online course Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

11 Avoid These Common Mistakes Failing to Coordinate Spousal Benefits Often, married couples don t realize that they should be working together as a team when thinking about when to take their Social Security. Too often couples focus on only their own Social Security benefit, and fail to recognize that they may be eligible for a spousal benefit of up to 50% of their spouse s benefit while waiting to claim their own benefits. Missing these benefits often costs a couple $40K to $50k in lost Social Security benefits. Not Maximizing Survivor Benefits Again, teamwork is important. Generally, the higher-earning spouse should be especially careful about when to claim Social Security benefits on his or her own record. As mentioned above, this is because the Social Security benefit of the higher-earning spouse is going to be the benefit that lasts the longest for the couple, or in other words, is inherited by the surviving spouse. For this reason, pursuing a strategy that increases the survivor benefit as much as possible can make a significant difference. Most couples miss another $70k to $80k by failing to maximize the survivor benefit. Not Working for At Least 35 Years Continuing to work in retirement can be one of the best ways to increase your Social Security benefits; especially for married couples. Each additional year of current earnings from work that replace a lower earning year, will increase your (and potentially your spouse s) Social Security. If you have less than 35 years of earnings, the non-working years will be counted as 0 and will lower your overall Social Security benefit vs. having worked at least 35 years. Claiming Early Just turned 62? Thinking of running to the Social Security Administration to claim your benefits? Hold on. This is by far the single biggest mistake that most Americans make. Many believe that Social Security is almost an automatic benefit; turn 62, collect, and don t think about it again. This couldn t be further from the truth if you want to maximize your benefits. If you want an expert to help you apply for your benefits and save you the time and hassle of applying on your own, you can find more information in my brand new course, Maximizing Your Social Security Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

12 Missing Out on Delayed Retirement Credits So you were wise and decided against claiming Social Security immediately at 62. What s the upside? Well, the Delayed Retirement Credits (DRCs) mentioned above. They accumulate at a substantial rate; 8% per year up until age 70. Remember that claiming at 70 vs. 62 means you ll receive 176% of what you would have received at age 62 for the rest of your life and your spouse can benefit from your DRCs as well. Earning Too Much While Collecting Benefits Another frequent stumbling block is the Earnings Test. The Earnings Test applies to those who claim Social Security benefits prior to their Full Retirement Age (66 for most people) and are still working and earning an income. Earning more than $15,720 in 2016 while collecting a Social Security benefit will cause the Social Security Administration to withhold $1 for every $2 in earnings over the Earnings Limit. While this money is not technically lost (the Social Security Administration credits it to your account at your Full Retirement Age), claiming early and having benefits withheld can present two major problems: Benefits will be withheld so you will not receive all the benefits (if any) anticipated as the result of claiming Claiming early (even if you re not receiving a benefit because it s being withheld) will still lock you into the early claim date, which means a suboptimal Social Security strategy and less money. Ignoring the Impact of Taxes As Ben Franklin has said, there are only two things that are certain in life: death and taxes. Well, unfortunately, Social Security benefits are taxable as well depending on your income. This can be harmful because without proper planning, taxation can reduce Social Security benefits by up to 30% in some cases! This is called the Social Security Tax Torpedo and should be avoided whenever possible. Whether or not your Social Security income is subject to taxation depends on the level of your Provisional Income Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

13 Provisional Income is defined as follows: Provisional Income = Modified Adjusted Gross Income + Tax-Exempt Interest + 50% of Your Social Security Benefits For more information about the taxation thresholds for Social Security and how much of your Social Security may be subject to tax, check out my brand new course, Maximizing Your Social Security. Having Errors in Your Social Security Earnings Record You want to get credit for all your hard work, right? Well, make sure that you check your earnings record with the Social Security Administration on your Social Security statement. It s important because if there are errors in your earnings record, you won t receive all of the Social Security benefits that you have earned. If there are errors, you have 3 years, 3 months, and 15 days to correct them. After that, it s too late. I Made a Mistake, Can I Undo My Decision? Yes, the good news is if you catch it early enough, you can. You have up to one year from the date of entitlement (i.e., when you first received benefits) to undo your decision. You can file a special application to withdraw your application and start over. You will have to repay any benefits that you ve received in that year, but for those who make a mistake, this can be a fresh start. Even if you ve missed the one-year deadline, if you re under 70 years old, all is not lost. Among other options available to you, suspending the receipt of benefits once Full Retirement Age is attained can minimize the damage as a result of claiming too early. Tips & Tricks Reserve Your Filing Date by Filing a Protective Filing Statement: If you re thinking that you may be getting close to filing for your Social Security, file a Protective Filing Statement first. This can give you the ability (if desired) of using the date of the Protective Filing Statement as the date of your application and can give you the ability to obtain retroactive benefits that you would otherwise not be eligible to claim. Get a Lump Sum Benefit: As mentioned, you can use the File and Suspend strategy to suspend your benefits after Full Retirement Age and if you decide to resume them let s say two years later, you can elect to receive the suspended benefits as a lump sum. A word of caution however; if you do this, you will forfeit the accumulated Delayed Retirement Credits during that timeframe Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.

14 Where Can I Turn for Expert and Unbiased Advice? Well, this is a good question. The Social Security Administration is prohibited by law from providing advice and most financial advisors are not familiar enough with the Social Security claiming strategies available to help their clients in an effective manner. Making the optimal Social Security claiming decision and maximizing your benefits is complicated. That s why I strongly recommend taking a look at my brand new course, Maximizing Your Social Security. With no Social Security Cost of Living Expenses (COLA) for 2016 and with Medicare premiums projected to rise for many, making the right Social Security decision for you and your family is more important than ever. Get an EXTRA $120,000 From Social Security It's shocking, but true. Seven out of ten Americans are missing out on their full Social Security benefits. In fact, the average couple is leaving approximately $120,000 in lifetime retirement benefits on the table. The good news is changing just one filing strategy can make a huge difference as much as an extra $415, $845, even $1,505 every month. In his new course Maximizing Your Social Security, Matthew Allen of Social Security Advisors gives reveals little-known strategies that can help you get every penny you're owed. Watch this brief video to learn more! Ways To Maximize Your Social Security Weiss Educational Services. All Rights Reserved.