You don't stand to gain a thing directly. You just want them to have a more secure, comfortable retirement….

For boomers with no advisor—affluent DIYers— Social Security is the question that will bring them into your offices. The advisor who does the bang-up job on this crucial question stands a great chance of becoming the main advisor for all their retirement planning needs.

Helping clients and prospects make the smartest and most informed decision about Social Security may prove to be the key that unlocks the door to the big "IRA rollover" issue.

No advisor should be lacking for deep, up-to-date knowledge of Social Security. That's not a super-tall order, mind you.

Yes, at first blush, the formulas and calculations and consequences of different options seem complicated.

But it's like anything else. You can gain mastery of these topics in a short time and in a way that will help your clients and build your reputation around town as a retirement planning expert.

175+page action research report

• The retirement paradigm shift that caught baby boomers off guard
• Why baby boomers are turning to financial advisors for help with Social Security
• Why advisors with Social Security expertise will be in demand
• 4 reasons why the financial services industry has downplayed Social Security, to its disadvantage.
• Why now is the time to gain Social Security expertise
• How Social Security planning can help build your business
• Why Social Security planning helps you better serve existing clients
• How Social Security expertise will attract new, unadvised (or poorly advised) baby boomers to your practice
• 3 key benefits of being a Social Security expert
• How to position yourself as an expert on Social Security
• How to write your positioning statement that focuses on Social Security
• How Social Security planning opens the door to additional products and services
• The niche potential of being an expert on Social Security
• Working with centers of influence, such as CPAs and estate-planning attorneys
• Preparing for clients who are turning 62
• Understanding why the lifetime value of Social Security is far greater than most people realize
• Correcting boomer misimpressions about Social Security
• Why each client's case must be analyzed individually and coordinated with the rest of a client's financial and life plan
• The reality of Social Security reform and the opportunity it presents to advisors
• 4 keys to planning your initial consultation

• Why clients need your help with Social Security before they can figure out the rest of their retirement income plan
• Guidelines for developing a retirement income plan
• What percentage of total retirement income will Social Security represent
• How does the nature of Social Security income inform the rest of a client's retirement income portfolio
• Clients' and advisors' main concerns about Social Security
• Setting insolvency fears aside and understanding the program as it exists today
• 4 key points on why replacement ratios oversimplify the retirement income planning process
• 8 crucial items to consider when determining retirement income needs
• 4 risks that will increase spending needs in retirement
• The four-legged retirement stool
• Why planning for the longest life expectancy makes sense
• Annuity income versus lump sum: common misperceptions
• Why the annuity is worth more than a lump sum for half of all people
• 4 key decisions clients need to make at the onset of retirement

• Social Security is not a giant pyramid scheme; find out the crucial element that makes it work through the generations.
• Understanding the math: How a high-earning client could contribute $230K over a lifetime and possibly collect $1.7 million in benefits.
• Why it's important for clients to understand the essential nature of Social Security regarding current benefits and current contributions.
• How to determine basic eligibility
• How wages are indexed for inflation
• How benefits are calculated based on a formula that takes into account the highest-earning 35 years
• What the "drop out years" are (hint: they have nothing to do with the hippie movement).
• Computing the primary insurance amount (PIA)
• Why the PIA isn't the actual amount people receive. How to compute the actual benefit from the PIA
• Maximizing benefits: The key objective of Social Security planning.
• The compounding effect of COLAs on the PIA
• Warning: The monthly benefit may be higher or lower than the PIA depending on when a person applies.
• Why taking benefits immediately upon attaining eligibility is not always a good idea
• Understanding the reduction in benefits for baby boomers born between 1946 and 1954
• Spousal benefits: One of the most unappreciated aspects of Social Security.
• What happens if a spouse lacks a 35-year earnings history
• 10 key points about spousal benefits
• 4 tests for receiving spousal benefits when you're divorced
• How working affects benefits
• What happens to withheld benefits for retirees who work
• How to avoid "cash-flow shock" from withheld benefits
• How to handle "special payments" for work done prior to receiving Social Security
• Why benefit reductions due to the earnings test are not truly lost
• How COLAs affect benefits
• Who is affected by the Windfall Eliminations Provision—Help clients avoid a rude awakening.

• What everyone needs to know about getting the highest Social Security benefits
• 3 groups of clients who especially need to hear about how to boost benefits
• Why under-saved boomers need to understand how Social Security benefits are computed

  175+page action research report

• What the Social Security wage base means for younger clients and the huge effects slightly higher earnings have on Social Security benefits
• Warning: Women who took time out of the work force to raise children may have set themselves up for dramatically lower benefits. Here's how to fix it.
• Why some women need to focus on improving their earnings now in order to substantially increase their retirement income
• What clients who work during retirement need to know about how and when their annual benefits are recomputed
• Watch out: Self-employed clients who incorporate their small businesses in order to avoid paying the high SE tax may be setting themselves up for drastically lower benefits in retirement. Find out how to properly analyze their situation.

• How delaying the onset of Social Security results in a higher benefit for life
• Factors to consider when deciding when to apply for Social Security
• Key elements of personalized, customized, breakeven analysis
• Plus, simple breakeven analyses samples that help clients easily grasp the concept
• Why considering spending needs is a more realistic way to analyze the breakeven issue
• Calculating a client's breakeven age if benefits are spent
• Calculating the breakeven age if benefits are invested
• Special advice for married couples
• The importance of incorporating annual COLAs into your breakeven analysis
• The truth about early retirement: Why the early eligibility age was lowered to 62 and what it means for the average retiree
• How the "wealth effect" has been influencing early retirement decisions and why it should be replaced with the "breakeven effect"
• Warning: Irrational fears and bad information may be driving people to choose early retirement. What they need from their advisors is a rational "breakeven" analysis of their options.
• 4 key factors to review when conducting a breakeven analysis
• Why baby boomers between 62-65 should take the "earnings test" before deciding to file for early benefits
• Longevity and the COLA compounding effect
• Why married couples need to carefully coordinate their decisions about when to file for benefits
• How long does a client have to live to make it worth delaying benefits?
• Common wisdom is that you should retire at 62 to take early benefits and delay drawing down personal assets, right? Wrong! Find out why.
• Taking early retirement and turning Social Security benefits into an investment program for wealthy clients only makes sense under certain expected outcomes.
• What to consider if a client is considering taking early benefits in order to leave assets invested
• Once you start receiving early benefits, you're stuck forever at the lower benefit, right? Wrong! It is possible to reverse your decision. See the details.

• Understanding the challenge of coordinating benefits for couples.
• Maximizing benefits for the survivor, who may live 20, 30, or 40 more years
• Understanding the unique rules for spouses
• Estimating benefits for each spouse
• Determining when the husband and the wife should each apply for their respective benefits
• What happens when one spouse dies
• How survivor benefits affect decisions that must be made now
• What happens when a surviving spouse remarries
• Why spousal benefits may play a bigger role for the clients of financial advisors than for the average low- to moderate-earning couple
• Why you must know the rules for spousal benefits and become familiar with strategies for maximizing spousal and survivor benefits
• Did you know that spousal benefits are not restricted to the low-earning spouse? Even a high-earning spouse planning to retire at 70 can apply for his or her spousal benefit at 66.
• Common strategies for coordinating benefits for spouses
• Warning: When a person applies before full retirement age, the actuarial reduction will apply even if the person switches over to a different benefit later (spousal benefit to earned benefit or vice versa). Understand why.
• Understand the playoff between filing for a reduced spousal benefit versus applying for one's own reduced benefit versus waiting and filing for full benefits
• Did you know: If a husband wants to earn delayed credits, he can file for benefits at FRA but request that they be suspended until he turns 70?
• Why it never pays to apply for a spousal benefit after FRA
• Why a high-earning husband with a shorter life expectancy should delay claiming benefits until age 70
• Key: Remember that for married couples the life expectancy of the second spouse to die is what counts in planning.
• Learn how "file and suspend" works
• How to respond to Social Security personnel who are not familiar with file and suspend
• Three key choices the lower-earning spouse faces
• How to coordinate benefits when spouses are different ages
• How to compare optimal benefits when spouses are more than 10 years apart in age
• How to plan for a possible gap in survivor benefits

• The triple whammy many women face in retirement
• Why singling out women for Social Security planning is important
• Why women really need Social Security planning—and why men should care
• How Social Security benefits women
• What all women need to know about Social Security
• How a husband's decisions affect a woman's Social Security benefits
• How to claim benefits from a divorced spouse
• How remarriage affects benefits
• What women can do now to increase their Social Security benefits
• Essential Social Security planning for women of all ages
• Why Social Security planning inspires people to do comprehensive survivor planning, including insurance, investments, and estate planning
• Which is greater: earned benefit or spousal benefit?
• 4 key questions to answer when projecting benefits
• 6 possible scenarios to consider
• Understanding the rules for earned benefits, spousal benefits, divorced-spouse benefits and survivor benefits.
• What if you divorce in retirement
• Why it is important to report all marital events to Social Security

• How taxes on Social Security benefits are calculated
• The impact of these additional taxes on a client's effective tax rate
• How taxes drive decisions on how much other income a client may choose to receive
• Which types of income are exempt from the formula
• How to plan ahead for IRA required minimum distributions at age 70-1/2
• Clear disincentives not to earn more income in retirement
• The marginal tax rate red zone
• Avoiding excess tax: One more reason why it may pay to delay Social Security benefits.
• Tax considerations for clients who plan to work in their 60s
• Tax issues for clients who plan to retire before age 70
• 6 keys for coordinating income and spending needs
• Reduction in benefits vs. taxation of benefits: helping clients understand the difference.

• Dependents' benefits: Why Donald Trump's toddler son could even receive Social Security.
• Understanding the maximum family benefit (MFB)
• How the MFB is computed
• Why you must always ask about grandchildren
• How the earnings test applies to dependents' and survivors' benefits
• Remember: Taxation applies to dependents' and survivors' benefits.
• How a person becomes eligible for disability benefits
• Social Security's strict definition of disability
• Understanding the lag time before benefits begin
• 3 key planning issues
• Supplemental Social Security Income: Rules for qualifying.

• Why every client will need a crash course in Medicare sometime before turning 65
• Warning: If clients don't apply for Medicare in a timely manner, penalties will be applied to future Part B premiums.
• Understanding the alphabet soup that is Medicare: Parts A, B, C, and D
• The 3 most important things to understand about Medicare
• How Medigap policies work
• Medicare and the long-term care myth
• Options for long-term care
• What to consider when choosing a long-term care policy
• 9 key points to consider when choosing policy features
• Ways to protect against inflation in long-term care costs
• How Social Security planning integrates with Medicare and long-term care
• Warning: One of the most important services an advisor can provide to baby boomers is to help them avoid penalties and gaps in health care coverage by enrolling in a timely manner.

• How and when to apply for Social Security benefits
• Know the exact month and day people should apply in order for benefits to start
• How and when checks are received: automatic deposits make it easy.
• 27 questions clients will need to answer when applying in person or online
• Documents clients will need to produce at the time of application
• When applying in person is productive
• What every widow needs to do when a spouse dies
• What every widow should consider before applying for survivor benefits
• What survivors need to bring to the Social Security office
• Warning: Errors are not uncommon in computing benefits. Overages will be collected at a later date.
• What do with Social Security payments made to a deceased spouse. Warning: Benefits may be stopped for up to 24 months for intentional, false statements
• What to do when changing bank accounts and redirecting direct deposit.
• Watch out: Marrying and divorcing while receiving benefits can change calculations.
• Death of a beneficiary and what to about payments received after death
• How benefits are withheld if a client earns more than the earning test amount
• What type of income counts toward the earnings test
• Why self-employed people who retire will be scrutinized to make sure they are not just reporting a lower salary while still working or receiving other compensation
• Figuring out taxes and Social Security
• How to get taxes withheld
• How to appeal a decision
• The four levels of appeal
• Special rules for clients living outside the U.S.

• Understanding the Social Security trust fund
• The difference between the Social Security trust fund and the assets of the U.S. government
• The future of Social Security
• Understanding how the Social Security trustees make 75-year projections
• When expenses exceed revenue: what really happens
• Three ways the actuarial balance is expressed
• Building sufficient trust fund reserve
• Explaining the actuarial balance
• Why immediate cash infusions aren't required
• The history of the actuarial deficit: why Congress doesn't always need to act immediately
• 14 ways Social Security could be reformed in the future
• How Social Security reform is likely to affect baby boomers approaching retirement
• How to incorporate possible Social Security reform into your long-term planning with clients

Don't miss this chance to get the Horsesmouth Social Security Mastery Program. Go ahead and learn more now!

135 Social Security Questions Answered:
What Savvy Advisors Need to Know

Every day Elaine Floyd spends time researching and answering tricky, perplexing, contradictory and generally vexing Social Security questions.  It's the nature of the topic…

In case you didn't know, Elaine's the leading, independent expert on Social Security payout questions.  Even the Wall Street Journal turns to her for answers…

Now she's edited and sorted a year's worth of the best questions. And they're available to you now to boost your Social Security mastery.

Here's the overview of what's covered and some questions to give you an idea of what you'll find.

• When to apply - questions 1 - 9
• How working affects benefits - questions 10 - 24
• Spousal benefits - questions 25 - 70
• Survivor benefits - questions 71 - 95
• Divorced-spouse benefits - questions 96 - 117
• Taxation of benefits - questions 118 - 123
• Miscellany - questions 124 - 135

Here's a peak at some of what's addressed in this new report:

Answers to real-life questions…

When to Apply

The most fundamental question facing baby boomers is when to apply for benefits. It's not 65 anymore. Full retirement age for boomers is 66.

But Social Security benefits may be claimed anytime between the ages of 62 and 70. It is crucial for boomers to understand how claiming early benefits will reduce their benefit (for life) and delaying benefits will increase it. Most advisors understand this, so most of the questions here relate to the "repay and reapply" strategy (also known as the "do-over"), and other miscellany…

Among the questions answered are:

• I presented a seminar last evening and have a question relating to disability. The wife has been disabled since age 50, not sure of current age, but the husband worked to age 68 and will be turning 70 this year. He has not yet applied for benefits. His wife is getting $618 per month. When he applies for his benefit at age 70, can she receive or substitute the DI benefit for the spousal benefit if larger? The husband was a government employee so he was aware of the offset. Any suggestions?—David P.

• When a parent is age 62 or older and begins collecting Social Security and still has minor age children, do they receive any benefits at that time? Does the adult have to file for and receive Social Security for the benefits to start?—John F.

• We may have run across a client who never applied for Social Security and is 80 years old.  He owns a successful business and didn't "need" the extra cash.  We are still gathering facts. Can he apply for retroactive benefits?  If he applies now, will his benefit include an adjustment to make up for the lost $$$?  Does he simply lose those benefits not taken since age 70?

• Is it possible to do a "do-over" for both survivor benefits and spousal benefits?—Toby G.

How Working Affects Benefits

"What if I keep working?" is the most commonly asked question by clients today. Everyone knows there is some rule about Social Security benefits being withheld if they work, but many clients are unclear about the details. The basic earnings test is pretty straightforward—for anyone under full retirement age (FRA), $1 in benefits is withheld for every $2 earned over $14,160 in 2009 and 2010—but as with anything related to Social Security, there's more to it than that.

One area of confusion relates to the re-computation of benefits at FRA…

Among the questions answered are:

• Client is age 62-1/2. Retires July 2009 and begins receiving Social Security benefits August 2009. Opportunity comes along for independent contractor employment from former employer. Monthly independent contractor income will be about $2,200 a month for remainder of year (4 months). Will Social Security benefits be reduced because monthly income (self-employment) will be greater than $1,180/month ($14,160 / 12 months)? Isn't the yearly maximum broken down to a monthly maximum?—Linda

• Just to confirm, after a beneficiary has reached FRA, the benefits will no longer be subject to reduction due to other income, but the benefits will forever be subject to taxation, even into their 90s.—Andrew

• If someone reaches FRA and takes SS but is still working and makes a lot of money, can their present earnings increase their benefit in the future, or is the benefit frozen once they start taking SS?—Debra

• I have a couple, both age 62, where the husband plans to continue to work, possibly to age 70. The wife is considering going ahead and taking her Social Security reduced benefit now. If she does so, does the income limit before benefits are reduced apply to just her income, or to their joint income since they file jointly? What other considerations do we need to pay attention to?—Kevin J.

• Is non-passive income from an S corp considered earned income for SS taxation between age 62-66?—Michael

• I have a couple who received conflicting advice from Social Security (two different answers on two different visits) and they came to me for "the right answer." The issue is interpretation of the working spouse drawing her benefits at age 62 (husband continues to work until NRA and they're the same birth year) and taxation of those benefits because they file jointly and there is earned income pushing them over the earnings threshold.
   
  One SS worker told them that she should wait because her benefits would be subject to the earning test because they file jointly. She'd receive the benefit but it would be reduced 3 to 1. Another SS worker told them earning test only applies by Social Security number and the joint filing doesn't matter. They don't know which to believe and are hesitant to file until they know which is correct. I can't find a definitive answer to this issue on SS website. Which one is correct?—Larry F.

Spousal Planning

Answers to real-life questions…

By far, the most complex area of Social Security planning is spousal planning. The vast majority of questions that come to us have to do with this complicated area of Social Security planning…

Among the questions answered are:

• If the primary worker's benefit at FRA is $2,000, the spousal benefit would be $1,000. If the primary worker delays benefits until age 70 and his benefit is $2,600, would the spousal benefit be $1,300? Or does it top out at $1,000, which is half of FRA?—Andy U.

• The more I deal with Social Security, the more I realize there is to understand.  Can I assume a wife can take a spousal benefit at 62 if it is higher than her own benefit and then switch to her own benefit at any time after her FRA if her own benefit is higher at that point? Is the alternative also possible whereby she takes her work benefit at 62 (because it's higher) and then changes to a spousal benefit sometime after FRA if the latter benefit is higher? I guess the key thing you're telling me is that a spouse will receive the higher of either her spousal or her own benefit before FRA, and if she starts her own benefit early, she is stuck with that unless her spousal benefit at some time becomes higher.—John G.

• Let's say a wife starts to collect on her husband's Social Security at age 62. He applies for his benefit but doesn't actually take it. He starts receiving his benefit at 66. When he passes away, does she jump up to the amount he is receiving, or will she always get a little bit less because she started collecting early at 62?—Joe C.

• If the wife is 66 and the husband is 65, can the wife apply for spousal benefits on the husband's record? Can he file and suspend in order for his wife to receive spousal benefits at her age 66 or does she need to wait until her age 67 and his age 66?—Ron C.

• I recently called the Social Security office to inquire about drawing my spousal benefits after I turn 66 in September of this year. My wife is 64 and has already filed for her retirement benefit based on her work record. It is my intention to file and suspend and draw spousal benefits based on her work record. The person I talked to at the Social Security office was familiar with the file-and-suspend procedure but stated that my wife had to be age 66 (FRA) before I could file for spousal benefits on her work record. Is it time to ask to speak to a Title 2 Technical expert or a Title 2 Claims representative?—Sam K.

• Can file-and-suspend be used by the lower-earning spouse to enable the higher-earning and older spouse to get extra benefits? For example, the higher-earning husband is 66 and will work to 70. The lower-earning wife is 62 and will work to 66. Can the lower-earning wife file-and-suspend and the higher-earning husband take four years of spousal benefits without impacting his own benefit at age 70?—John E.

• If a person was a teacher before retirement, and covered by a state teachers retirement plan, she is not eligible for Social Security. Does that regulation apply for spousal benefits as well?

Survivor Benefits

Survivor benefits are one of the most valuable and important aspects of Social Security. It has been estimated that the average survivor benefit is equivalent to a life insurance policy with a face value of $433,000. Maximizing the survivor benefit is a crucial aspect of Social Security planning for married couples, and it is important to stress to clients that the amount that stands to be paid far in the future depends on decisions made today….

Among the questions answered are:

• If a wife takes her retirement benefit before FRA, does that reduce her survivor benefit if he delays his benefit to 70?—Alan

• A wife works and gets a small Social Security benefit. Her husband is retiring from the government as a CSRS employee. When he dies, she will get his government pension survivor benefits. Will that reduce her SS benefit?—Steve R.

• I was hoping you might be able to help me with a situation I have with a client. She's 62 and works full time. Her husband passed away and she is entitled to his benefit, which is lower than her expected benefits. My question is this: Even though she's working and would be penalized for receiving Social Security, doesn't it still make sense to obtain the benefit from her deceased husband? Doesn't that benefit go away once she reaches her full retirement age?—Peter S.

• Widows/widowers who do not remarry are entitled to survivor benefits at age 60, but SS does not remind them or clearly spell this out on the website. Benefits not applied for on time are lost. Must be a common oversight saving the system lots of money. Thoughts?—Bill

• In a "file-and-suspend" where the non-earning spouse takes her spousal benefit and higher earning spouse dies before filing at age 70, what will survivor benefit be based on?—Rick

Answers to real-life questions…

Divorced-Spouse Benefits

Financial advisors are going to have to start prying into their clients' marital histories. Why? Because it may not even occur to clients who have been divorced for many years that they could be entitled to divorced-spouse benefits or divorced-spouse survivor benefits. When clients apply for Social Security, they will be asked about previous marriages…

Among the questions answered are:

• If a divorced spouse starts drawing SS based on the ex-spouse's earnings, does this reduce the ex-spouse's benefit?—Steve

• Does a former spouse drawing benefits on an ex-husband's PIA affect his current spouse's benefit?—Anonymous

• A divorcee age 65 plans to wait until age 70 to collect SS benefits. Her former husband is 67. He is still working and she has no way of knowing if he is collecting on his SS benefits. Can she receive a spousal benefit now? Will it interfere with her future SS benefit at 70?—John

• If a woman is divorced and has remarried, how is the PIA determined? Is it based on the second husband's income history, or a combination of the first husband and second husband's income history? Does the wife have the option to choose between the two?—Paul

• I have lots of questions regarding applying for benefits post divorce. Here are a few that puzzle me.  The situation: Wife is 62, ex-husband is 65. Divorce is final 12/1/09. 2 years after final decree would be 12/01/11. At that time the unmarried wife will be 64 and the ex-husband will be 67. He is still working and doesn't plan to collect benefits until age 70. Wife's full benefit at age 66 is $785. Ex-husband's full benefit at age 66 is $2,341. Can the wife apply for her benefits now (getting only 75%) and wait to apply for her divorced-spouse benefit until her husband applies? Or does applying for hers now automatically lock in the % of what she could get from his benefits?—Debbie

• If my divorced client waits until FRA to take her divorced-spouse benefits but her ex-husband claims his benefit at 62, is she forever locked into 50% of his reduced benefit? She's a teacher making about $40,000 a year.—William D.

Taxation of Benefits

Taxation of benefits comes into play when you are putting together an overall retirement income plan that includes other sources of income. Most clients of financial advisors will need to be concerned about taxation of Social Security benefits, since the income thresholds are so low. Many clients will simply have to resign themselves to having 50% or 85% of their Social Security benefits subject to federal income tax. Still, Savvy Social Security planning would call for some degree of taxation analysis, especially if clients' income is at or near the threshold…

Among the questions answered are:

• If the client goes over the threshold for taxation, are they taxed on the very first dollar of benefits received?—Josh

• I truly enjoyed your presentation on Social Security!  We have a client that is currently 63 and collecting unemployment income, severance pay until 8/31/09, and then would be eligible to collect her pension as well as receive a lump sum in September 2009. Her FRA is 66. I realize that you would need much more information to advise when the client should begin Social Security however I was hoping you could confirm what income is counted toward the maximum earnings in relation to taxation. This is an excerpt from the Social Security website: We do not count income such as other government benefits, investment earnings, interest, pensions, annuities and capital gains—Jackie

• If you take a distribution from a Roth IRA is the distribution included to calculate the taxability of Social Security?—Barbara

Miscellany

Among the questions answered are:

• Are COLAs higher the longer you wait to start SS?—Mark

• Many of my clients will receive PERA benefits and this, I hear, reduces SS benefits. Is there a formula I can use in planning with these clients?—Carol

• If you take SS early, do they prorate the amount by month (62 and 3 months) or just by year (62, 63, etc.)?—Luella

• If an individual wants to reimburse Social Security for the benefits he's received in order to restart his benefit at his current age, is he also responsible for repaying benefits received by a dependent under his Social Security number?—Laurie

• What can be done if people are already taking SS benefits? Can they still be helped?—Bob

Don't miss this chance to get the Horsesmouth Social Security Mastery Program. Go ahead and learn more now!

Savvy Social Security Calculators

Elaine Floyd has developed five Proprietary Calculators for you to use in your group presentations—but also more importantly in one-on-one meetings. The calculators provide important flexibility and insight into Social Security planning scenarios on five special topics: Breakeven Analysis, Annual Spending and Re-Investing:

Five Proprietary Calculators

• Simple Breakeven: In conjunction with the guide, you'll learn how to analyze not only the options your clients face regarding the size of their monthly benefits and when they'd "break-even" relating to getting higher benefits by delaying their retirement dates (and weighing those options against their own estimates of health and mortality). Your clients will be able to clearly and easily see the various, and significant, differences in monthly benefits based on the different potential retirement dates they might choose.
  
  
• Retirement Spending: It's important to understand the complex interchange between the various sources of income your clients will draw upon in retirement. This calculator lets you see the various impacts and outcomes based on drawing income from Social Security, taxable non-qualified accounts, and qualified retirement accounts.  This calculator lets you demonstrate how to be the most tax-efficient and profitable in terms of income draw down.
  
  
• Reinvest Breakeven: Certainly many of your top clients may view Social Security as completely irrelevant to their own retirement. They've amassed enough wealth to easily replace their pre-retirement income. But here's a chance for you to show them that their monthly benefits can be re-invested to achieve existing or new investment goals. Remember, the power of compounding a relatively high monthly benefit, coupled with the compounding of the annual cost-of-living adjustment (COLA), stretched over a 30-year retirement, can begin to add up to serious money. Many clients will never have stopped to consider some of the important points demonstrated by key "re-investing" scenarios.
  
  
• Benefit Adjustment: There may be times when you just want to estimate a client's benefit at a future age without going into one of the other calculators. The Benefit Adjustment Calculator automatically adjusts the PIA for the actuarial reduction or delayed credits, as well as the annual COLA, depending on when the client applies. It includes spousal and survivor benefits as well. All you do is enter the client's current age and PIA in present dollars, and refer to the tables to see what the benefit would be at the various ages. The default COLA is 2.8%, but you can override it. If you know a client's PIA and want a quick estimate of what a future benefit will be, this calculator will give it to you.
  
  
• Spousal Planning automatically calculates the benefit off the PIA (for clients born 1943-1954). Second, it has been reprogrammed to allow for switching. Now you can have the wife apply for her own benefit at 62, for example, and then switch to her spousal benefit at 66 and the income stream will reflect that. Then if her husband dies first, it will show his benefit going over to her column. You still must exercise some judgment when crafting your scenarios. Be especially careful of any scenario that calls for applying for benefits before FRA, because the actuarial reduction is permanent. For example, if a wife is two years older than her husband, and if she wants to apply for her spousal benefit at 66, you'll have to pay attention to the fact that he will only be 64 and would have to apply for reduced benefits in order for the wife to claim her spousal benefit. You may end up recommending that she wait until she is 68 so he won't have to take reduced benefits.  

Don't miss this chance to get the Horsesmouth Social Security Mastery Program. Go ahead and learn more now!

Program Updates

Email Updates: Two to four times a year, you'll get an e-newsletter update from Elaine Floyd with information about new developments in Social Security benefit issues, discussions about common and uncommon situations advisors encounter with clients, and any new updates to the calculators.