Maximizing SocialSecurityIncome:IncomeStrategiesforMarriedCouplesWelcometotonight'sseminar,whichisdesignedtodiscussfilingstrategiesforsocialsecurityretirementincome.Thepresentationwilllast1hour,andwewillbeofferingeachattendeeafollowupmeetingtoreviewyourretirementincomeneeds,includinghowsocialsecurityfitsintoyourretirementincomeplan,aswellasotherfinancialproductsthatareavailabletohelpyoumeetyourincomeneedsinretirement.Wewillalsoprovideyouwithacustomizedreportshowingyouvariousfilingchoicesforyoursituationtohelpyoumaximizetheamountoflifetimeincomeyoureceiveinsocialsecurity.

Whenyourparentsretired,SocialSecuritywasmuchdifferent.Theywenttotheirlocalofficeatage65orage62iftheyretiredearly,filedforbenefitsandthatwasit.Mostpeopletooktheirbenefitsforgrantedanddidn'taskquestions.Wehavefoundthatintheageofinformation,theBabyBoomergenerationhastakenaverydifferentapproachandwantstomakesurethatnotonlywilltheirbenefitsbeavailable,butalsothattheyreceivethemostpossibleincomeduringtheirlifetime.

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Notice toAllAttendeesSothateveryoneattendingtonight'sseminarisaware,wearenotaffiliatedwithorendorsedbythesocialsecurityadministrationoranyothergovernmentalagency.Thestrategiesdiscussedtonightwillbeuniquetoeachspecificsituation,andyouneedtocarefullyevaluateallofyouroptions- includingthetaxconsiderationswhendecidinghowandwhentostartreceivingsocialsecurityincome.Itispossiblethatthismaybethefirsttimeyouhaveheardaboutmanyofthesestrategies.Wehopethattonight’sbriefoverviewwillhelpshowyouwhatyouroptionsaresothatyoucanseetheimportanceofhavingafilingstrategyinplace.

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AboutYourSpeakerMynameis(AGENTNAME)andIworkwith(COMPANYNAME).Ourofficeislocatedat(STREETNAME)in(CITY)andaswehavemetwithourclientstodiscusstheirfinancialneeds,andinparticularwheresocialsecurityfitsintheirincomeplan,wehavefoundthatSSAemployeesarenotalwaysasinformativeastheycouldbe.Theyaretrainedtoanswerquestionsbutnottoofferyouanyadviceorspecificinformationaboutyouruniquesituation.Thereareoftenalotofquestionsthatgounansweredandasyouwillseetonight,establishingafilingstrategyhasneverbeenmoreimportant.Ourgoaltonightistohelpyouknowmoreabouttheoptionsthatareavailabletoyoupriortodecidingwhentostartcollectingbenefits.Thatsaid,weareafor-profitcompany,andwemakeourlivingbyprovidingourclientswithinsuranceandincomestrategiestohelpfilltheincomeneedsthatsocialsecuritywillnotprovide.Thankyouagainforcomingtonight,let'stakealookatwhatwewillcover.

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Tonight’sAgendaonightwewillcover3keytopicstoconsiderwhenyouareplanningforsocialsecurityincome:

1.First,wewillreviewthebasicsofsocialsecurityandhelpensurewearemorefamiliarwithsomeoftheterminologyusedwhenwediscussbenefits.Inaddition,wewilldiscusstheagerequirementsforfiling,howbenefitsarecalculated,andpossibletaximplicationsthatmayexistwhenyoufile.2.Second,wewillreviewtheprocessforplanningyoursocialsecurityincome,includingtheinformationyouwillneedtoprepareyoursocialsecuritystrategy,thepotentialbenefittodelayingpaymentsandwheretofindyourbenefitstatement.3.Third,wewilldiscusswhyitisparticularlyimportantformarriedcouplestoplanbeforetheyfileforbenefits.Uniquestrategiesareavailableformarriedcouplesthatarenotavailableforindividualsandwewillreviewthosestrategiesindetailalongwithhowtheycanprovidepotentiallymorelifetimeincome,byfollowingsomesimplefilingsteps.4.Aftercoveringthese3maintopics,wewillreviewasamplereporttoseehowthistypeofinformationcouldbenefityouasyouplanforyourretirementincome,byjustsittingdownwithusforaboutanhour.

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SocialSecurityBasicsThe firsttopictonightisSocialSecurityBasics. Thismaybearefresherforalotofyou,butitisimportanttobecomfortablewithsomegeneralinformationaboutSocialSecuritybeforewestarttodiscusswaystohelpyoumaximizeyourbenefits.WewillgothroughabasicQ&AofthemostcommonquestionswereceivefromourexistingclientsregardingSocialSecurity.Wewanttorespectyourtimetonightandhavealottocoverin60minutes,sowewilltrytotakeafewquestionsaswegobutbecausewewanttorespecteveryone'sprivacy,weaskthatanyquestionsspecifictoyoursituationbeheld.Wearehappytomeetindividuallywitheachofyou1-1todiscussyourretirementincomeneeds,includinghowsocialsecurityfitsintoyourincomeplan.

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WhenCan IFileforBenefits?Thisiseasilythemostcommonquestionwegetatourofficeonadailybasis.Formostpeopleintheroomtoday,youwillbeeligibletoapplyforbenefitsatage62andyourFullRetirementAge(FRA)willbe66.YouwillhearusrefertoFullRetirementAgeasFRAforshortandthisisanimportantnumbertoremember.

Q:Hasanyonebeentoldthattheyshouldfileatage62immediatelywhentheyareeligibleandthatthisisthewaytoreceivethemostbenefit?Whilethismaycertainlybetrueforsomefolks,bewaryofanyonethattellsyouthatonestrategyisbestforeveryone.Forexample,formarriedcouples,thisstrategycouldpotentiallyresultinasignificantlossoftotalbenefitsovertheirlifetime.Inourexamplelateron,you'llseewhatImeanbythis.

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HowareMyBenefitsCalculatedCalculating yourFRAbenefitcanbefairlycomplicatedbutwewillgooverthebasiccomponentswithyou.Thankfully,allthisinformationisreadilyavailableonlineattheSSA.gov andyourstatementwillshowwhatyourexpectedmonthlyincomewillbeatFRAbasedonyourworkhistory.TocalculateyourPrimaryInsuranceAmount,whichistheamountyouareprojectedtoreceiveatFullRetirementAge,theSSAwilluseyourtop35yearsofworkhistory.TheseearningswillthenbeadjustedforinflationtodetermineyourAIME.AIMEstandsfor“AverageMonthlyIndexedEarnings”.Thereisthenatieredcalculationrangingfrom15%-90%todetermineyourPrimaryInsuranceAmountorPIA.Q:AnyoneConfusedatAll?Metoo!Thankfully,youwillnothavetocalculatethisyourself.Yousimplywanttomakesurethatyourworkhistoryisaccurateandthatyouhaveanaccuratecopyofyourbenefitstatementsoyoucanstarttheplanningprocessanddecidewhentofile.

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HowareMyBenefitsCalculatedCalculating yourFRAbenefitcanbefairlycomplicatedbutwewillgooverthebasiccomponentswithyou.Thankfully,allthisinformationisreadilyavailableonlineattheSSA.gov andyourstatementwillshowwhatyourexpectedmonthlyincomewillbeatFRAbasedonyourworkhistory.TocalculateyourPrimaryInsuranceAmount,whichistheamountyouareprojectedtoreceiveatFullRetirementAge,theSSAwilluseyourtop35yearsofworkhistory.TheseearningswillthenbeadjustedforinflationtodetermineyourAIME.AIMEstandsfor“AverageMonthlyIndexedEarnings”.Thereisthenatieredcalculationrangingfrom15%-90%todetermineyourPrimaryInsuranceAmountorPIA.Q:AnyoneConfusedatAll?Metoo!Thankfully,youwillnothavetocalculatethisyourself.Yousimplywanttomakesurethatyourworkhistoryisaccurateandthatyouhaveanaccuratecopyofyourbenefitstatementsoyoucanstarttheplanningprocessanddecidewhentofile.

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HowDoesCOLAImpactBenefits?COLAstandsfor“CostofLivingAdjustment”andisdesignedtohelpprotectyoursocialsecurityincomefromtheeffectsofinflation.Itisimportantthatat leastaportionofyourretirementincomehasinflationprotectiontohelpaddressrisinginflation,andthisisoneofthebenefitsthatsocialsecurityoffers.(BeforeYouClicktheNextBulletPoints)Q:DoesanyoneknowwhattheaverageCOLAadjustmenthasbeensince1975?Almost4.0%peryearhasbeentheaverageincreaseinbenefits.

Q:Whataboutfrom1990-2015?Asyoucanguess,interestratesandinflationhasbeenlowersotherateisless,averaging2.5%.Tobeconservative,weusearateof3%whenpreparingyourSocialSecurityReportsinouroffice.Iftheratesarehigher,theremaybeevenmoreatstakeifyoudon’tplan.

Longstoryshort,COLAcanbeavaluablefeatureandcanhelpyourincomekeepupwithinflationasyougetfurtherintoretirement.

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HowDoesCOLAImpactBenefits?Let’s seehowCOLAcouldhaveworkedinthisexample,assumingyouretiredin1990andyourinitialSocialSecurityBenefitswas$2,000permonth.Asyoucansee,eachyearyourincomeisadjustedforCostofLiving.Withtheexceptionofof2009-2010,therewasanincreaseofbetween1.8%and5.8%eachyearasdeterminedbytheCPI-W(theconsumerpriceindexforurbanwageearnersandclericalworks).Thisamountwillvaryeachyear,buttheaverageduringthisperiodwas2.7%,aswediscussedonthelastslide.Asyoucanseeinthisexample,eventhoughtheamountstartedat$2,000permonthis1990,youwouldhavebeenreceiving$3,656permonthattheendof2013.

WewillcomebacktoCOLAwhenwediscusstheimportanceof“TimingYourBenefits”andchoosingtherightstrategyformarriedcouples,butIwanttoraiseanimportantquestionhere.Whileyoursocialsecuritybenefitshaveaninflationprotectionfeature,willtherestofyourretirementincomealsobeprotectedagainstit?

That’saquestiontoconsiderverycloselybecauseifyourretirementincomeisnotkeepingupwithinflation,it’scostingyoumoneyyearafteryear.

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CanI Work&CollectBenefits?InadditiontoSocialSecurityBenefitsbeingtaxableifyoumakeoveraspecificincomeamount,itisimportanttorememberthepenaltyyoumayincurifyoucontinuetoworkandfileforbenefitsbeforereachingyourFullRetirementAge(FRA).For2017,ifyouarecollectingSocialSecurityBenefitsyouwillonlybeabletomakeanincomeof$17,040beforebeingpenalized.Itisimportanttorememberthatforincomepurposes,weareonlytalkingaboutW-2earningsor1099earningsifyouareselfemployed.Incomefrompensions,annuitiesandinvestmentsisnotincludedforpurposesofcalculatingthepenalty.Forevery$2inincomeyouearnperyearabove$17,040fromages62-65,youwillhavetopayback$1inSocialSecurityBenefit.Thisisinadditiontoanytaxyoumayhavetopayattheendoftheyearonyourbenefits.DuringtheyearyoureachyourFullRetirementAge(FRA),theExemptAmountamountbecomes$45,360andyouhavetopayback$1inbenefitforevery$3inincome.

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Let’s LooksatanExample:Ifyouare65anddecidetocollectSocialSecurityBenefitswhilestillworkingandmake$50,000peryear,aftersubtractingtheExemptAmountof$17,040ourpenaltybasisbecomes$32,960.Wehavetopayback$1forevery$2ofincomesoourpenaltyfortheyearwouldbe$16,480.Asyoucansee,itisveryimportanttoconsultanaccountantpriortocollectingSocialSecurity,especiallyifyouplantocollectbeforereachingFullRetirementAge(FRA).

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WillMy BenefitsBeTaxable?NowthatweknowhowbenefitsarecalculatedandadjustedforCostofLiving,thenextmostcommonquestionwereceiveis“WillMyBenefitsBeTaxable?”WewantedtospendafewminutestonightdiscussinghowyourbenefitsbecometaxableforindividualsandalsoforMarriedFilingJointly.Forindividuals,yourSocialSecuritydoesnotbecometaxableuntilyour“ProvisionalIncome”reachesmorethan$25,000.ProvisionalIncomeincludeshalfofyourSocialSecurity,alongwithadjustedgrossincomefromyourtaxreturnandanytaxexemptinterest.Thisisparticularlyimportantifyouhave“TaxFreeBonds”.Althoughtheinterestmaynotbetaxableonyourtaxreturn,itisconsideredacountablesourceofincomeforSocialSecurityPurposes.Whenyourprovisionalincomeisbetween$25,000and$34,000,50%ofyourSocialSecurityIncomebecomestaxable.Ifprovisionalincomeisover$34,000,85%ofyourSocialSecuritybecomessubjecttotax.Formarriedcouplefilingjointly,thenumberschangeslightly.Thereisnotaxonbenefitsuntilyourprovisionalincomeisover$32,000.Thetaxesare50%onamountsbetween$32,000and$44,000.Benefitsbecome85%taxablewhenyoufilejointlyandmakegreaterthan$44,000inprovisionalincome.*Onespecialnote,ifyouaremarriedandlivetogetherbutfileseparately85%ofyourbenefitswillbetaxableregardlessofhowmuchprovisionalincomeyouearn.

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AboutTheSocial SecurityProcessInthenextsection,wewilldiscussthestepsyouneedtotaketostarttheplanningprocess,howitworksandwhattoexpect.Specifically,wewilltalkaboutthevariablestoconsiderwhendecidinghowlongtowaitbeforestartingbenefits,whatfactorstoconsiderwhenputtingyourplaninplaceandalittlemoreaboutbreakevenanalysis.

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WhattoConsiderWhenPlanning?Thereareseveralkeycomponents toconsiderwhenplanningforSocialSecurity.Thefirstisyourcompleteworkhistory,whichwillprovidetheAIMEcalculationthatwediscussedearlier.YouwillwanttomakesurethishistoryisaccurateandcontactSSAifthereareanyerrors.Secondisyourdesiredretirementage.ThisisimportantbecauseafterwemaximizeSocialSecurityusingthestrategieswewilldiscussinafewminutes,youmayhavetoadjustwhereyoupullretirementfundsfrombeforeyourSocialSecuritystartstopay.ItisimportanttorememberthattheageyouretiredoesnotalwayshavetomatchtheageyoustartSocialSecurity.Thenextstepsarelookingatyour“ShelfLife”,howlongdoyouexpecttolive.Thisispartofyourconsultation,wewilldiscussyourfamilyhistoryanduseourcalculatortohelpyoudetermineyourestimatedlifeexpectancy.Forbetterorworseguys,theladiesusuallyhaveusbeatonthisone!WealreadydiscussedinflationandCOLA,generallyweuse3%asanaverageCOLAtobeconservative,butwecanadjustthisupordownbasedonyourspecificconcerns.Finally,youwillwanttolookatyourotherassetstodeterminehowtofilltheincomegapsthatSocialSecuritywon’tprovide.SomeofyoumaystillbeluckyenoughtohaveaPensionthatwillhelpfillthosegaps,whileothersmightberesponsibletocreatingtheirownincomestreamfroma401(k),IRAorsavings/brokerageaccounts.SocialSecurityisthefirststep,butinordertomaximizeyourSocialSecurityIncomeitisimportanttoconsiderothersourcesofincomeaswell.Letstakeacloserlookathowitworks…

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StepsintheProcess1. Firstwehavetogatheralltheinformationwewillneedtoprepareyourreport.

YoucanfindyourwageinfoandbenefitstatementsonSSA.gov.Next, youwilldecidewhatageyouwanttoretire,againthismaynotbethesameageasyoutakeyourSocialSecurity.Finally,whatisyour“ShelfLife”,orlifeexpectancy.Thiswillgiveustheinitialinformationneededtostartpreparingyourreport.

2. Afteryour1hourconsultation,youwillreceiveyourreportshowingthedifferencebetweenfilingnowandfilinglater.Thereportalsoexplainsthedifferentstrategiesavailablespecificallyformarriedcouples,knownasswitchingstrategies.Finally,youwillseewhatcouldhappenifyoudon’tincorporatesomelevelofSocialSecurityPlanning.

3. Fromthisreportandexaminingyourcurrentincomeneeds,wewillalsoprovideasupplementalreportthatwillshowyouthedifferencebetweenwhatSocialSecuritywillprovideandwhatyouwillneedtokeepyourstandardoflivingthroughoutretirement.Forsome,SocialSecuritywillprovideadequateincometosatisfyalltheirfutureincomeneeds.Formost,youwillneedtotakeitastepfurtherandlookatyourpension,401(k),IRAorotheraccountstoputtogetheranoverallincomeplan.Thissupplementalreportwillhelpyouidentifywherethegapsexist.

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Finding YourBenefitInformationAswehavediscussedtheplanningprocessitisimportanttobecomefamiliarwithwheretofindyourinformation.Q:HasanyoneinhereseentheirstatementonlineonSSA.gov?Great!Forthosewhohaven't,thisisalsopartofourconsultation,wewillwalkyouthroughwheretogotofindyourstatementandhowtoreadthestatement. Thereisagreatresourceavailableonlinetohelpyoubecomemorefamiliarwithalltheterminologywehavediscussedtoday.

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LongerWaitEqualsMoreBenefits?Wehavediscussed thebasicsofwhenyouareeligibleforbenefitsandwhenyouhavereachedfullretirementage(FRA).Again,formosteveryoneheretonight,yourFRAwilllikelybeage66.Thissimplymeansyouwillreceive100%ofyourPrimaryInsuranceAmount.Inthisexample,thebenefitatFRAis$2,000permonthor$24,000peryear.Ifyoustartedbenefitsatage62,youwouldonlyreceive$1,500permonthor$18,000peryear.Thisisreferredtoasanactuarialreduction,basicallymeaningthatyouwillreceivebenefitslongersoyourbenefitamountwillstartatadecreasedamount.Atage62,youwillonlyreceive75%ofyourFRAbenefit.Ontheotherhand,ifyouwaituntilage70tostartyourbenefits,yourmonthlybenefitamountwillincreaseby8%eachyearyouwaituntilyoureachage70,andyouwouldthenget132%ofyourFRAbenefit.Wherethisreallystartstohithomeiswhentheincomestartsbecomingadjusted.DoeseveryonerememberCOLA?WouldyouratherhaveCOLAon$1,500or$2,640?Dependingonyourlifeexpectancyandotherassets, itcanmakealotofsenseformanytodelaybenefitsaslongaspossible.Wewillcomebacktothisinaminute,butfirstIwanttospendaminuteonBreakEvenAnalysis.Q:Hasanyoneeverhadanaccountant,financialadvisororevenafriendtellthemthatyoushouldfileforbenefitsassoonaspossiblebecauseittakessolongtobreakeventhatyoumightaswellhavethemoneynow?

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WhatisBreak-EvenAnalysisAcommonsocialsecurityplanningstrategyiscalledBreak-EvenAnalysis. Theargumenthasbeenmadethatitisalwaysbettertostartbenefitsearlybecausebythetimeyoubreakeven,youwillbetoooldfortheeffecttomakeadifference.Thebenefitisyoumaybeabletoretireearlierwhileyoucanstillenjoythemoney.Soundsgreat,anditmaybeforsome,especiallyifyouarenotmarried.Asanindividual,youmaydecidethisstrategymakesperfectsenseandaslongasyouknowwhatyouaregivingupinfutureincome,itmaybeaviableoption.Wherebreakevenbreaksdowniswhenyouaremarriedandthatiswhytonight’sprogramisdesignedspecificallyformarriedcouples.Thestrategieswewilldiscussformarriedcouples,alsoknownasswitchingstrategies,taketheprocessbeyondbreakevenandwillshowyouwhatcouldhappenifyouusethesestrategies.

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Strategies forMarriedCouplesNowthatweallhaveagoodgrasponhowthebasicsandhowtheprocessworks,Iwanttotalkmoreaboutthespecificfilingstrategiesavailableformarriedcouplesthatarenotavailableforsingleindividuals.First,Iwanttoreviewthegeneralrulesregardingspousalbenefitsbecauseit’s importantweunderstandhowtheyworkbeforewemoveontomorespecificfilingstrategies.Ialsowanttodiscuss2veryimportantchangesthatwererecentlymadetotheSocialSecurityrules.

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SpousalbenefitsareaveryimportantareaofSocialSecurityplanning,andtheyareofteneithermisunderstoodorjustplainignored.AndmistakesregardingspousalbenefitscanbequitecostlytoyouandyourspouseintermsofforgonelifetimeSocialSecurityincome.

AspousalbenefitallowsyoutoreceiveSocialSecurityincomebasedonyourspouse’searningsrecord,notyourown.Itwasoriginallydesignedtoprovidealevelofincomeprotectiontonon-workingspouses.WhenSocialSecuritywasfirstintroduced,mostofthosenon-workingspouseswerewomen.Nowweknowthat’schangedovertheyearsasmoreandmorewomenhadtheirowncareers.

Herearethegeneralrules…(reviewbullets1-3).Let’s pauseonbullet#2forjustaminutebecauseSocialSecurityrecentlychangedthispartoftherules.Previously,therewasn’tadeadlineforbeingabletousespousalbenefits.Nowthereis.Ifyoudidn’tturnage62bytheendof2015,youcan’tusethemanymore.Ifyoudid,you’reautomaticallygrandfatheredundertheoldrules.

Now,thefourthpointiswhereitgetsveryinteresting,andabitmorecomplicated.

Howmuchyoucanreceiveinspousalbenefitsdependsseveralkeyfactors:

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First,iswhatyourspouse’sownfullretirementbenefitis.Howmuchthey’llreceivegoesintodetermininghowmuchyourspousalbenefitwillbe.Second,iswhenyouelecttotakeyourspousalbenefit.Ifyouwaituntilfullretirementage, itcouldbe50%ofyourspouse’sFRAbenefit.IfyoutakeitbeforeyourFRA,you’llgetapercentagereductiondowntoonly35%ofyourspouse’sFRAbenefit.

Thereareotherfactorstoconsider,butthat’sageneraloverviewofhowtheywork.

Now,letslookagainattheslidethatshowsthepercentageofbenefitsyouwillreceiveatspecificages.

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NoSpecial FilingStrategiesAssumingbothspousesjustfiledataspecificage,withnospecialstrategies,weknowthatmostofusheretonightwillhavetowaituntilage66toreceiveourfullretirementbenefit,inthiscase$2,000permonth.Ifwetakebenefitsearly,wewillreceiveaslittleas75%oftheFRAbenefitandifwewaituntilage70andourbenefitwillincreaseby8%eachyearandupto132%ofourFRAbenefit.Q:Thisisveryimportanttorememberaswemoveforward,arethereanyquestionsonhowthisworksbeforewemoveon?

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FilingaRestrictedApplicationFilingarestrictedapplicationatFullRetirementAgewillallowasecondspousetoreceivespousalbenefitsonthefirstspouse,regardlessofwhetherornotthefirstspouseisreceivingbenefits.Asinthepreviousslideandwhatisoftenthecaseisthatthefirstspousefilesatage66butdoesn’tstartbenefitsuntilage70,sotheyareabletoreceivethedelayedretirementscreditseachyear.However,thesecondspousecanstillreceivethesamecreditsandcollectthespousalbenefitatthesametime. Inthisexample,thesecondspousewouldreceive$1,000permonththefirstyearandCOLAadjustmentseachyearuntilshereachesage70andswitchestoherbenefit.Thismaysoundconfusing,sowewillwalkthroughanactualexampleinjustaminute.

Remember, asIsaidafewminutesagoonapriorslide,inordertousethisstrategy,youmusthaveturned62bytheendof2015.Ifyoudid,yourgrandfatheredunderthe

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CombiningStrategiesNotincludingeachuniquemonthandyearcombinationavailable,thereare9yearsand3possiblestrategies thatcanbeusedbyamarriedcouplefindthebestwaytopmaximizeSocialSecurityBenefits.Thismakesalmost250differentannualcombinations.

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Everyone’sSituationisDifferentTheimportantthingtorememberisthateveryone'ssituationisdifferentanditdoesn'thurttoknowyouroptions.Aswementionedearliertonight,weareofferingacomplimentaryonehourmeetingforeveryonewhohasattendedtonightwherewewillsitdownwithyouandprepareyourcustomizedreportatnocharge.

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Actual SampleReportBeforewemoveon,Ijustwanttomakesuretherearenoquestionsaboutanyoftheinformationwehavecoveredsofar.Let’s lookatarealsamplereportandandfindouthowitworks…

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CaseStudy:Joe&DeborahM.In yourfolder,youwillfindtheinformationthatwewilldiscussinthenextfewslides.Youarewelcometoviewthereportsaswegothroughtheslides,buteverythingyouneedwillalsobeonthescreenaswegoforward.JoeandDeboraharefictionalclientsonly,andI'mjustusingthemasanexamplehere.Joeis63andiscurrentlyworking.Heplanstoretireinthenextfewyears,buthasn’tdecidedexactlywhentostarthisSocialSecurity.Hehasa401(k)atworkandsomeadditionalmoneyinabrokerageaccount.AfterlookingontheSSA.govwebsiteandpullinghisstatementwefoundhisFRAbenefittobe$2,175.Afterabriefdiscussionregardinghisfamilyhistoryandcurrenthealth,weestimatehislifeexpectancytobeapproximately85yearsold.

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CaseStudy:Joe&DeborahM.First,welookatwhathappensiftheyfileimmediatelyanddon’tuseanyofthespecialfilingstrategiesthatareavailabletomarriedcouples.Joecanstarttakingbenefitsrightaway,butDeborahwillhavetountilnextyearwhensheis62.Wefindthattheywillreceiveapproximately$1.2millioninlifetimebenefits.Theythinkthatnumbersoundsgooduntilwelookatotherfilingstrategiesavailabletothem…

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CaseStudy:Joe&DeborahM.AfterJoeandDeborahreviewthefilingstrategiesavailabletothem,theydecidetouseonethatincorporatesspousalbenefits.Deborahwillfileforbenefitswhensheturns64.Joewillfileforspousalbenefitswhenheis66andreceivehalfofDeborah’sfullretirementagebenefitamount.Joe'sbenefitwillcontinuetoincreaseby8%eachyearindelayedretirementcreditsuntilheturns70.WhenJoeturns70,hewillswitchovertohisownbenefits.AssumingthatJoeandDeborahlivetoages85and92,asassumed,thisstrategycouldprovideover$1.8millioninlifetimesocialsecuritybenefits.

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CaseStudy:Joe&DeborahM.Justbysittingdownforaboutanhour,wewereabletoreviewJoeandDeborah'sfilingoptionsandhowtheycouldpotentiallyreceiveasmuchas30%morebenefitjustbyunderstandingandevaluatingalloftheiroptions.Noweveryone'ssituationisdifferentandyourtotalbenefitamountmaynotbethishigh,buttheimportantthinghereisforyoutounderstandyouroptions.Onceyouknowwhatyoucanexpectfromsocialsecurity,youmayrecognizethatitmaynotpayforeverythingsowecanthenshowyouhowtoplanforincomefromyourotherretirementplansandaccounts.Forexample,let'stakealookathowmuchJoeandDeborahwillneedtocomeupwithtoretirecomfortably.

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CaseStudy:Joe&DeborahM.Asyoucansee,Social Securitypaysagoodportionbutduringthebulkoftheirretirementyears,JoeandDeborahareabout20-25%shortoftheirneeds.Thelastthingwewantyoutodoissacrificeduringretirementornothaveanyideawhatyouwillneedtoretireorwhenyoucanretire.ThisextrastepcanhelpyouidentifytheincomegapsthatexistafteryoureceiveSocialSecurity.

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CaseStudy:Joe&DeborahM.Here’sanothersnapshotofpartoftheincomegapreportforJoeandDeborah.Theredbarsrepresenttheirtotalretirementincomeneed.ThebluebarsrepresenttheirSocialSecurityincome,whichyoucanseedon’tcoveralltheirincomeneeds.Aswe’vediscussed,formostofyouattendingourseminar,SocialSecuritywillprovidesomebutnotall,oftheincomeyouneedinretirement.

Thebigquestionmostofusfaceis,howwillwebridgethatincomegap?Howwillwemakecertainwedon’teverrunoutofmoneyinretirement?Wesavedoverthecourseofourworkingcareers,andhopefully,investedwiselyduringthattimetobuildupanest-egg.Oncewegetcloserto,andintoretirement,weneedtobeabletousethatnest-egg…touseourmoneytocreatethatsustainableincomethroughourretirementyears.

Oneofthemostimportantthingswedowithourclientsistohelpthemmakethattransitionbyexploringsolutionstohelpthemprotectandpreservewhatyou'veworkedsohardtosave.

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1. WhydoweofferthisSocialSecurityAnalysisandRetirment IncomeStrategy?Weofferthembecausewebelieveit'simportantthatyouhaveastrategyinplacethattakesintoaccountbothsocialsecurityandyourretirementincomeneeds.I'vefoundthistobeaveryunder-servedarea.Often,traditionalfinancialprofessionalsarefocusedongrowingyourmoney,whichisimportantwhenyouareyounger.Butasyougetcloserandintoretirementyourneedschange,andpreservationanddistributionbecomemoreimportant.2. Howdowegetpaid?

(Forinsuranceonlyproducers):"Asalicensedinsuranceprofessional,IampaiddirectlyfromthecompaniesI

representifyouchoosetopurchaseaproductthroughme."(ForIARproducers):Asafinancialprofessional,Icangetpaidinacoupleofdifferentways

dependingonhowIworkwithaparticularclient.Manycompaniespaymedirectlyifyouchoosetopurchaseafinancialproductthroughme.Forotherclients,Iearnfeesdependingonwhataccountsorstrategiesweselect.3. WhatI’mnotreadytoretire?Evenifyou’reseveralyearsawayfromretirement,you’vegottohaveaplaninplace. It’swhatItellallmyclients.Youdon’twanttowaituntilthedayyouretiretotrytofigureoutifyouhaveenoughmoneytolasttherestofyourlife.4. WhatifIhaveafinancialprofessionalIlike?That’sgreat.Ifyoulikethem,youcankeepthem.They’veprobablydoneadecentjobforyou.Butmyfocusisdifferent

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thanmostadvisors.Ifocusonpreservationanddistributionforclientswhoarenearorinretirement.Whiletraditionalassetallocationmodelsofstocksandbondscanworkwellforsome,therecanahugeamountofriskclientsdon’trealizethey’retaking….likein2008.Ifyouhaveaheartcondition,doyougoseeacardiologistoraneurologist?Youseeacardiologist,ofcoursebecauseyouwantaspecialist.Besides,ifyouradvisorreallyunderstoodretirementincomeplanning,wouldn’ttheybehostingaseminarlikethis?

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ThankyouforAttendingAgainweappreciateeveryonecomingtonightandhopethatyoureceivedsomeinformationthatwillhelpyounavigatethroughyourpersonalSocialSecurityPlanningprocess.Ifyouwouldpleasetakeoutthesheettitled“EvaluationForm”.Weaskthatyoufillthisoutsowecanmakesureweareconstantlyimprovingthepresentation.Onthetop,pleasefilloutyourinformation,wedonotsharethiswithanyoneelseanditis100%confidential.Second,youwillseeyourAreasofInterestandConcern,pleasechecktheareasyouwouldliketodiscussinyourconsultation.Duetotimeconstraints,weaskthatyougiveustwotimesthatyouwillbeavailablewithinthenextweekandwewillcallwithinthenextfewdaystoconfirmyourconsultation.Attheconsultation,youwillreceiveyourreportandhaveachancetoaskanyspecificquestionsyouhaveabouttonight’spresentation.Finally,onthebottom,weaskthatyourateourpresentationandthespeaker.Wetakethisseriouslyandourgoalistomakesureyoureallylearnedsomethingtonightandwehaveprovidedaservicetoeveryonewhohasattended.Thanksagaintoeveryoneforcomingtonight,wehopeyougainedsomethingfromtheseminarandlookforwardtomeetingwitheveryonetoprepareyourpersonalSocialSecurityReport.Pleasepassyourformsinbeforeyouleaveandwehopeyouhaveagreatevening.

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