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Social Security Planning What about the Retiree?

Social Security Planning What about the Retiree?. Presented By: Marcia L. Miller, MBA, EA Financial Horizons, Inc. Weston, Florida ProactiveTax@aol.com. Planning For Social Security Is A Growing Niche It Fits In Nicely With General Retirement Planning.

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Social Security Planning What about the Retiree?

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  1. Social Security Planning What about the Retiree?

  2. Presented By: • Marcia L. Miller, MBA, EA • Financial Horizons, Inc. • Weston, Florida • ProactiveTax@aol.com

  3. Planning For Social Security Is A Growing Niche It Fits In Nicely With General Retirement Planning

  4. But With Longer And Longer Life Expectancies The Value Of Planning Grows

  5. Social Security Planning A. Social Security adjustments B. Spousal benefits C. Widow & Widower’s insurance benefits D. Early versus normal retirement

  6. A. Social Security adjustments Wage base • Taxable wage base was increased to $102,000 in 2008, $106,800 in 2009 Full retirement age • Basic benefits of a worker or survivors are reduced by 5/9 of one percent for each month the worker receives benefits before normal retirement age.

  7. B. Spousal benefits 1. Spouses or divorced spouses that meet four requirements are entitled to old-age or disability insurance benefits: • The spouse has filed an application for spousal benefits, • The spouse has attained age 62, • In the case of a divorced spouse , the ex-spouse is not married. • The spouse is not entitled to old-age or disability insurance benefits. 2. Spousal benefits begin with the first month in which the spouse meets the four above criteria 3. Spousal benefits end the month proceeding: the spouse dies, the individual dies, or if they are divorced, has not been married to such individual for a period of 10 years and the the spouse has not attained age 62 or the spousal benefit for each month is ½ the primary insurance amount.

  8. C. Widow and widower’s insurance benefits Widow or widower and every surviving divorced spouse of an individual who died a fully insured individual is entitled to their benefit and is - Not married - Meets age requirement - Meets one of the following Has filed an application for widow’s or widower’s benefits and is entitled to spousal benefits, or is Not entitled to old-age insurance benefits or is entitled to benefits which is less than the primary insurance amount of the deceased.

  9. C. Widow and widower’s insurance benefits What is the amount of the benefits ? Generally equal to the primary insurance amount (also referred to as PIA) of the deceased individual.

  10. Early versus normal retirement 1. Remember that the FICA/SE tax base is $106,800 in 2009. 2. Excess earnings before Full Retirement $1 per $3 > $36,120 in 2007 (65 Yrs + 8 mos) $1 per $2 > $13,560 age 62 to 65 Yrs, 8 mos)

  11. D. Early versus normal retirement When to retire? Retirement prior to normal retirement age is reduced by a percentage for each month. Working full-time beyond retirement age can increase their benefit. • Each additional year adds another year of earning to their Social Security record • Higher lifetime earning may result in higher benefits when one retires • Delayed retirement credits will be added in automatically from the time one reaches full retirement age

  12. ASSET PROTECTION • Asset Protection refers to a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil money judgments. • Medicare and Medicaid recipients need to plan for the transfer of their assets prior to their needing extensive care or living arrangements.

  13. REVERSE MORTGAGES • Why do they have a bad reputation? • Should you consider if over age 62? • What about your heirs? • Who can you trust?

  14. LONG-TERM CARE INSURANCE • When to start funding for possible assisted living programs or LTC. • BEWARE !!! Long – Term Care is not just for the elderly!

  15. LEGAL DOCUMENTATION • Estate Planning, Wills & Trusts • Probate Issues • Appointing a Health Care Surrogate • Durable Power of Attorney designations

  16. Thank you for attending today. • Be well and protect the assets of your family and clientele by being informed and be prepared to calmly face whatever life throws our way.

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