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For the Advisor Who Doesn't
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2-Volume Set, Plus Calculators and Program
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- Don't Get Caught Dumbfounded
When a Client or Prospect Asks About Social Security…
- Get "Financial Advisors Guide to Savvy Social
Security Planning"…
- Get "135 Social Security Questions Answered:
What Savvy Advisors Need to Know"…
- Use 4 Proprietary Calculators to Run Client
Scenarios (Download from Savvy Social Security website)…
Social Security Mastery Program Offers
Unparalleled Advisor Support for Your Tough Social Security
Cases…
Imagine Answering Clients' and Prospects'
Social Security Questions With Confidence
Deftly guide people through such thorny issue as:
- What's the best time to file for benefits and get the
highest monthly check?
- What if I file early and invest all of my benefits?
- Should I spend Social Security money or IRA money first?
- What if my wife wants to file now on my record, but
I want to keep working?
Dear Advisor:
Now you don't have to be doing
client workshops and seminars on Social Security in
order to have access to all the great expertise contained
inside Horsesmouth's Savvy Social Security Planning
for Boomers resource.
We've created a program that will
give you important insights and tools to help you help
your clients make the best Social Security decisions
possible when planning their retirement income strategy.
It's called
the
Social
Security Mastery Program.
And the program is designed for
advisors who want the best available resources to help
their clients make smart retirement income decisions—but
who don't want to put on client education workshops
and seminars as part of their business development strategy.
It's critical that you be able
to offer good analysis and insights for your clients
on this topic…It's amazing how many COSTLY, bad decisions
are being made by Boomers and many advisors…
"I Would Have Never Known
It Was Possible…"
In a minute, I'm going to tell you more about this
amazing new resource Elaine Floyd has developed to help
advisors master their understanding of Social Security.
But first I want to share an e-mail we received just
the other day. It's from an advisor in Rochester, Minnesota
named Dennis Bussian. Here's what he wrote to Elaine:
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I want to share with you a personal experience
that I had just this past week. I have
a client where the wife is the primary bread
winner and is still working at age 66 and plans
to continue for another year or so. The husband
has been retired and drawing on his benefits.
Last week they were in and the wife just
turned 66 and I told her that she should begin
collecting a spousal benefit on him and continue
to earn delayed retirement credits on her benefits
at least until she retires and possibly to age
70.
This was almost identical to the situation
illustrated in the seminar on slide # 34. This
meant she would be entitled to about $550 [per
month] of spousal benefits.
They were surprised to learn they could do
this and obviously would never have known about
it unless I told them.
And even though I am a CFP and ChFC and have
been a financial planner for 17 years, I would
have never known it was possible either if I
had not purchased Savvy Social Security Planning.
When they called the local social security
office, they were shot down.
The local rep told them she was only entitled
to a spousal benefit if it was greater than
her own benefit. I called and got the
same answer and pushed back hard finally convincing
the representative to do a little research.
She came back and told me I was right.
This shocks me. Is this fairly common?
These clients almost lost out on $550 per month
for the next 4 years. Just wanted to let
you know that the clients are happy and the
Savvy Social Security Planning was money and
time well spent. Thank you. |
Dennis came to the rescue of his client in this case.
And that little action on his part earns them $26,500
over the next four years. Now that's the kind of thing
clients love to see from their advisors!
Sadly, of course, Dennis's experience is not uncommon
at all.
People at the Social Security office can be nice
and helpful and informed.
But it's not uncommon for them to be
misinformed about certain aspects of how
Social Security works. And that's what you have to be
on the lookout for. (It's the same reason you wouldn't
send your clients to the IRS to get an answer about
an IRA rollover question. Right?)
Clients need guidance when it comes to figuring out
exactly how Social Security fits into their retirement
income plans.
And you're the one who needs to prepare the best
analysis and options available to them.
We want advisors in the U.S. to be masters over the
ins and outs of Social Security because it's too important
to be left to your clients and unconcerned government
workers.
And that's why we've created this new resource for
advisors who are faced with answering this deceptively
simple question...
The
Ultimate Litmus Test: Here's how to Pass It
Here it is: "When should I file for Social Security
benefits? "It's the question every Boomer needs to answer.
Rich or poor. Whether they'll need Social Security to
make ends meet or whether they intend to use it to fund
an investment program for themselves or, say, their
grandkids' education. Or anything else in between.
And here's where you come in…The answer to that question
is complicated.
The distribution phase of retirement is a lot more complicated
than the accumulation phase.
As a professional financial advisor in good standing
in your community, people increasingly will turn to
you for expert help in figuring out Social Security's
role in their retirement mix.
The reason clients need your help is that there are
very few REAL rules of thumb that apply to everyone
when it comes to Social Security.
And the decisions clients make at this stage in life
depend on a multitude of factors including income, assets,
health status, life expectancy, family dynamics, life
goals, and a lot more.
Irreversible Decisions and Long-Term Effects
And unlike a lot of other decisions clients made earlier
in life,
some decisions they will be forced to make now are irreversible.
For instance:
- Starting Social Security at age
62 can cause a client to leave a lot money on the
table if they live well into their 90s.
- Failure to consider the impact
of marriage, divorce, remarriage, and widowhood
can severely pinch your clients' lifetime stream
of income…
- Failure to coordinate IRA RMDs
with Social Security taxation results in needless
diminishment of income that could be put to better
use for health care or just enjoying life.
And those are just a few key points. There are literally
millions of permutations. For every rule of thumb, there
are dozens of exceptions.
And here's the key: From the clients' perspective,
there really is no substitute for sitting down with
an advisor, spreading the papers around the table, and
talking about the clients' life and family, hopes and
fears, and developing a retirement plan that makes all
aspects of their financial and life goals work together.
But you've really go to know what you're talking about
when it comes to Social Security.
We're Not Talking Chicken Feed, Either
Social Security is a lot more valuable than most people
realize. Here are a few things to consider. First, it
is a lifetime annuity. Once you start getting it, it
keeps coming until you die.
Second, it's inflation-protected. A nice benefit, indeed,
thanks to annual cost-of-living adjustments (COLAs).
With the power of compounding, these annual bumps can
really start to add up over the years. This aspect is
often overlooked by individuals and advisors.
Third, there is right of survivorship. So when one spouse
dies, the other can continue to receive the higher of
the two benefits until they die, too.
Consider this example. In 2008, the maximum benefit
for a person turning full retirement age is $2,185 per
month. If that person lives for 30 more years, assuming
an annual cost-of-living adjustment of 2.8% (which is
what Social Security trustees project under their intermediate-cost
scenario), he or she will collect more than $1.2 million
in benefits.
As Elaine Floyd, Horsesmouth's Director of Retirement
and Life Planning says, "Given the great potential of
Social Security benefits over a person's lifetime,
it makes sense to treat this resource as a significant
asset and to make decisions that will maximize it to
the greatest possible extent."
In addition, "retirement," or whatever it may be called
in the future, will be different for the Boomers.
We already know that. Youth was different. Marriage
is different. Career paths are different. Recreation
is different. Health is different. Longevity is different.
Religiosity is different. It keeps going.
So when it comes to figuring out Social Security, that'll
be different, too. Unlike previous generations, they
won't just pad on down to the local Social Security
office and sign up.
They've got a lot of questions. Should they apply now?
What if they keep working? How will their decision affect
their spouse's benefits? A dissection of all things
Social Security is in the offing.
So how prepared are advisors to respond?
What Do Advisors Know About Social Security?
Not Enough…
Earlier this year we started thinking about the best
way to help advisors help their clients regarding Social
Security. We sensed advisors were lacking expertise
in this basic retirement income topic.
We knew anecdotally that clients often asked advisors
about Social Security. Some advisors admitted they didn't
know as much as they felt they should about the topic.
And that's a problem…
After all, when it comes to figuring retirement income
streams—regardless of your client's wealth—Social Security
is guaranteed and inflation protected. You can't disregard
it!
So we decided to conduct a survey to gauge the level
of advisor expertise and interest on this issue…The
results surprised and shocked us.
More than 85% of 1,110 advisors told us they talk with
their clients about how Social Security fits into their
retirement plans. That was good.
But when those advisors were asked to rate their knowledge
across key Social Security topics—and quizzed on fundamental
questions about Social Security—a troubling picture
emerged.
In only 1 of 8 categories did more than 50%
of the advisors rate their knowledge as "above average"
on common Social Security benefits issues!
Advisors admitted they lacked expertise in these
seven categories, saying their knowledge was average
or worse:
- How a person accumulates Social Security
benefits over their working career…
- How annual cost-of-living increases are
determined…
- How to do a breakeven analysis to determine
if a client should consider delaying benefits…
- The formula for determining how benefits
are taxed…
- How to estimate lifetime Social Security
benefits…
- How to coordinate spousal benefits for maximum
income and protection for the surviving spouse…
- How to optimize benefits taking into account
a client's age, current health status, life
expectancy, earned income, taxes, and overall
financial goals…
A brief multiple choice quiz we administered to
advisors also produced similar dismal results. We
asked:
- How much of a cut in benefits
will you take if you apply early instead of
the normal retirement age?
- If you decide to work after
starting retirement, how much can you earn before
your benefits are reduced?
- If a person begins receiving
the maximum benefit at full retirement age in
2008 and lives to age 95, how much will he receive
in total lifetime benefits, assuming an annual
COLA of 2.8%?
- True or false: Once a person
reaches full retirement age it is impossible
to accumulate higher benefits by working longer
and earning more.
- True or false: If a woman who
is receiving benefits under her former spouse's
earnings record remarries, she can choose which
spouse's record to base her benefits on.
- Which income sources are included
in provisional income to determine if Social
Security benefits are taxable?
Again, the results of the quiz were poor. In only
two of the six questions above did more than 50%
of the polled advisors answer the questions correctly…
Wow. That's a retirement knowledge crisis in my
book. And there's more…
The common questions about "When should I apply
for Social Security benefits?" is just the opening
salvo.
There are plenty of other follow-on questions, such
as these:
- Can it make sense for a spouse
to collect benefits on his/her own work record
at age 62 and then switch to a higher spousal
benefit at age 66?
- Does the fact that the spouse
starts collecting benefits on his/her own work
record at 62 negatively impact the spousal benefit
at age 66?
- If a spouse wants to wait to
collect benefits at 70, can he collect benefits
on his spouse's earnings record before then?
- If a married person who is
less than full retirement age is collecting
SS benefits and is also working, is it only
that person's earned income that determines
if benefits will be reduced or is it the joint
earned income that is compared against the earned
income limits?
- Can legitimate tax write-offs
be used against any Social Security income that
is deemed to be taxable?
- What if your client was a local
government employee, who didn't pay into Social
Security, retired early, and now is in a new
high-paying career contributing to Social Security?
You can see, it gets complex fairly quickly.
After all, clients and employers have been paying
into it for years and it's one the most successful
government programs around. And with the coming
Boomer retirement crisis, it will be even more important.
Boomers Need Advisors Now More Than Ever: And
What They Need is a Customized, Break-Even Analysis
So, where do you and your clients start?
What every person needs is a customized, break-even
analysis that takes into account their family situation,
their life goals, their other resources, and how
Social Security fits into their overall retirement
plan.
The media can't do that. And the Social Security
Administration can't do that, either. You are the
only one who can really do that because you know
your client.
Everyone wants to know how to get the most out of
their Social Security. It's a perfectly natural
response, especially when someone actually looks
at what they've paid in over the years.
Fair enough. But how do they do it?
Well, lots of people will do it on their own and
maintain a life-long pattern of making important
investment mistakes because they don't understand
the rules and how they apply to their own situation.
But for the advisor who understands the complexities
of the system and how to apply them to each client-specific
circumstance, their clients will benefit over the
remainder of their lifetime by having maximized
their monthly Social Security payments.
Simply put, Social Security represents an important
opportunity for advisors to provide advice to clients
and prospects—regardless of where they sit on the
retirement spectrum—on
an issue that affects nearly all of them, is very
complex, and yet is non-threatening because they
are not being "sold" anything.
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.
Introducing
the Social Security Mastery Program
When boomer prospects and clients come calling
with questions, we don't want you caught
behind the curve on this issue.
In fact, we want you to recognize the unique
role you play in clients' lives and get
ahead of the curve on the important issue
of Social Security and retirement income.
We want you, or folks on your team, to be
the "go-to" person for all your clients,
their friends, their colleagues and their
family members.
We want you to be able to lead people through
a complete and clear understanding of how
Social Security works, how it fits into
their own retirement needs, and what their
options are for when and how to collect
benefits.
It's an important leadership position for
you and your firm. And the best way
we know to do it is with Horsesmouth's
Social Security Mastery Program.
The heart of the program includes two major
resources:
The Financial Advisor's Guide to Savvy Social
Security Planning for Boomers
and
135 Social Security Questions Answered:
What Savvy Advisors Need to Know…
(And learn to run your own scenarios with four
special calculators: Simple Breakeven; Retirement
Spending Breakeven; Reinvestment Breakeven;
and Spousal Planning...)
The Financial
Advisor's Guide to Savvy Social Security
Planning for Boomers
 |
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175+ page action research report |
This 175+page action research report by Elaine
Floyd walks you through all the major aspects
of smart Social Security planning, equips you
both with business development insights for
how and why to engage clients and prospects
around Social Security, and a reference guide
that gives you mastery and competence over this
important, complicated topic. Topics include:
Chapter 1: What Financial Advisors Need
to Know About Social Security
- 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
Chapter 2: The Role of Social Security
in a Client's Overall Retirement Plan
- 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
Chapter 3: How Social Security Works
- 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.
Chapter 4: Boosting Benefits by Increasing
Current Earnings
- 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
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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.
Chapter 5: When to Apply: Strategies
for Maximizing Lifetime Benefits
- 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.
Chapter 6: Coordinating Spousal Benefits
- 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
Chapter 7: Women and Social Security
- 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
Chapter 8: Taxes on Social Security
Benefits
- 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.
Chapter 9: Other Social Security Programs
- 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.
Chapter 10: Medicare and Long-Term Care
- 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.
Chapter 11: Mechanics of the Social
Security Program
- 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.
Chapter 12: History
and Financing of the Social Security System
- 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 peek 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
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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
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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
Savvy Social Security
Calculators (Download from Savvy Social Security website):
Elaine Floyd has developed four proprietary
calculators that provide important flexibility
and insight into
Social Security planning scenarios on four
special topics: Simple Breakeven, Retirement
Spending, Reinvest Breakeven, and Spousal Planning
-
Simple Breakeven
Calculator—This basic calculator
helps you advise clients on when to apply
for
Social Security benefits. It allows
you to run two scenarios— apply earlier
and receive a smaller amount, or apply later
and receive a larger amount. The calculator
shows the age the client must live beyond
in order for delayed benefits to produce
a higher cumulative amount. This calculator
is designed for simplicity and does not
take into account investment returns if
benefits are invested.
- Retirement
Spending Breakeven Calculator—This
calculator assumes the client has personal
assets in addition to
Social Security. If the client retires
sometime between the ages of 62 and 70,
should he apply for
Social Security immediately and leave
the personal assets invested, or should
he draw from the personal assets first and
wait to apply for
Social Security in order to build delayed
credits? A year-by-year run shows how much
of each year's spending need is met by personal
assets vs.
Social Security. The objective is to
determine which strategy (early or later
filing) requires the least amount to be
drawn from personal assets to meet the same
spending need.
- Reinvest
Breakeven Calculator—This calculator
is designed for high-income clients who
will not need
Social Security to meet living expenses.
If their intent is to invest their monthly
benefits, should they apply early and get
those benefits invested as soon as possible,
or should they delay their application in
order to receive a higher benefit? At varying
return assumptions, the calculator shows
the year-by-year results and cumulative
totals so you can see the crossover point,
or breakeven age, at which delaying benefits
produces the higher total amount.
- Spousal Planning
Calculator—One of the most challenging
aspects of
Social Security planning is coordinating
spousal benefits, especially when the spouses
are of different ages. This simple calculator
allows you to enter each spouse's age and
respective benefit amount, along with the
projected COLA, and see a year-by-year run
of the couple's combined benefits and the
cumulative total. Five identical worksheets
allow you to try out several scenarios (wife
applies at 62, husband applies at 66; wife
applies at 66, husband applies at 70; and
so on), so you can see what their combined
benefit would be in 2013, 2014, 2015, etc.
Don't miss this chance to get the Horsesmouth
Social Security Mastery Program.
Go ahead and learn more now!
Stay Informed and Updated on Key
Social Security Issues
PRIVATE WEBSITE
ACCESS
-
SavvySocialSecurity.net website
gives you instant access to all the
program's materials, plus easy access to
asking questions.
WEBINAR AND
NEWSLETTERS
- Special, occasional webinars and
bi-weekly newsletter help you stay
abreast of new developments in Social
Security and stay informed about tricky
case filing issues.
Your Path to
Greater Expertise
In a perfect world, your clients wouldn't
be confused or concerned about Social Security.
They could just schedule an appointment
at the local Social Security office and
then pad on down there to easily resolve
any questions or issues.
But it's not that easy or simple. First,
Social Security is the epitome of a large,
unwieldy—some would say unresponsive—government
bureaucracy.
Second, Social Security should not be viewed
in isolation. The hard issue of retirement
income replacement needs to be analyzed
in a highly personalized, one-on-one manner,
one that takes into account all of a person's
sources of retirement income. Social Security
can't and won't do that.
Third, your clients will crave "Peace of
Mind" regarding their retirement. Having
received a personalized, break-even analysis
of their Social Security decision will go
a long way toward engendering that warm,
positive feeling clients seek.
Putting aside do-it-yourselfers, people
are going to need and seek out advice on
this crucial issue. Financial advisors are
the professionals best positioned and equipped
to address these issues for clients and
prospects.
That's why I urge you to purchase
Horsesmouth's Social Security Mastery Program
and get
The
Financial Advisor's Guide to Savvy Social
Security Planning for Boomers, 135 Social
Security Questions Answered, and 4 proprietary
calculators.
Why You Need The Social
Security Mastery Program
1) You Need to Master the Social Security
Debate Issues. Over the coming months and
years, Social Security will gain increased prominence
as an issue that transcends Washington politics
and takes root as a key, nitty-gritty issue among
many of your clients.
You'll be called upon to express a knowledgeable
and considered opinion on this key aspect of retirement
income replacement. It's no longer viable—indeed,
probably unwise—to subscribe to the notion that
Social Security is "broke" or won't be there for
clients.
Horsesmouth's
Social Security Mastery Program will
help you achieve and maintain mastery over this
crucial client retirement issue.
2) Your Clients Need Help. When
you lead your clients through the principles in
The
Financial Advisor's Guide to Savvy Social Security
Planning for Boomers both of you are
accomplishing important goals. Your clients
will have experienced a real sense of accomplishment
in reviewing their Social Security earnings record,
analyzing their potential benefit options, and seeing
how the replacement income fits with their other
resources. More than nearly all client events, knowing
and understanding how Social Security works and
fits into their lives will be concrete, real-life
information.
For you, the advisor, the activity of leading people
through the program confers "expertise by action."
You'll be demonstrating your professionalism, showing
people the value you add to the advisory relationship,
again, in a real-life scenario. It's a client meeting
with an important outcome.
3) It's a Retirement Income Opener:
Social Security, of course, is just one piece of
the retirement income puzzle. By getting clients
into a meeting or event to look at their personal
situation with Social Security, they're also getting
a real-world view of the total retirement income
picture. It all seems a lot more real and a lot
less abstract and theoretical. While focusing on
the "income replacement" aspect of Social Security,
it naturally begs the question of what specifically
the other pieces of their retirement income puzzle
will be?
The demonstration of your high interest and expertise
in the Social Security issue—and your position as
the person who has solutions to common retirement
income problems—means, naturally, that people will
see you as a good person to turn to and recommend
to others for the bigger retirement income issues,
as well.
4) It Will Elevate Your Position Within
Your Community: When you present the ideas
in " The
Financial Advisor's Guide to Savvy Social Security
Planning for Boomers" you'll actually
be doing a public service. People need this information.
They want to know more about the program that they've
contributed to through every paycheck they've ever
received throughout their entire lives. And they're
not going to find anywhere else—either online or
at the local Social Security office—the kind of
information that you'll be giving them.
Your status and reputation within your community
will be enhanced through your delivery and mastery
over the Savvy Social Security information.
People will be gratified and appreciative that you've
taken the time to learn this issue and make available
to them the opportunities to learn more.
5) You're the Expert. Stay That Way.
We already know that operational Social Security
knowledge is fairly low among advisors. Many indicated
they want to learn more because they see it as a
real need—they've had questions over the years and
answered them, perhaps, in fits and starts, not
with the kind of confidence they'd prefer and that
people should expect from a financial professional.
By committing to following
The
Financial Advisor's Guide to Savvy Social Security
Planning for Boomers, you're covering
yourself on an important topic.
As long as you remain in this business, people will
have questions about this topic and your wisdom
and insight will be sought for that reason. There
is no better way to ensure that you achieve a high
level of understanding about the key Social Security
issues your clients and prospects face than by following
the principles in
Social
Security Mastery Program.
Special Offer: Social
Security Mastery Program—Save $100
We are offering
The
Financial Advisor's Guide to Savvy Social Security
Planning for Boomers,
135
Social Security Questions Answered, four important calculators (download from Savvy Social Security website), and program updates
for only $397 (plus shipping)— a $100 savings.
I think that's an extraordinary value for the price
— considering the importance of the topic and the
amount of business you stand to gain from sharing
this essential information with clients and prospects.
It's been a difficult period for advisors all around
and I really want the good folks in this industry
to start looking ahead to the end of the recession
and start thinking about what good, positive things
can happen in 2014.
Normally, this complete program would cost you $497.
But now you can save $100 by ordering the today for
$397. Act now to gain mastery and expertise about
the crucial retirement income replacement issues
your clients will face in the coming days and weeks
and years.
What Your Colleagues
Say About Savvy Social Security Planning
Another Tool in
Advising Clients on Income Planning
"A 60-year-old prospect came to the office because
his 73-year-old wife had just been diagnosed with
cancer. He wanted to retire so he could stay home
with her. He wanted us to develop an income plan
which included his savings, her Social Security,
his company pension and what he could expect at
ages 62, 66 and 70 from his Social Security. The
analysis showed he could retire immediately, wait
until age 70 to maximize his Social Security and
have enough income until then from annuitizing two
of his annuities.
"Knowledge of Social Security provides another tool
in advising clients on income planning." —Darrill
Beebe, Arlington, TX
Changed My Clients' Lives
"A client who had been married twice was unaware
that she could receive spousal benefits on her first
husband. This knowledge helped her plan a better
retirement since her SS benefits were less than
half of his.
"Another divorcee who was dating someone on a small
SS benefit, did not realize that she could file
for a spousal benefit on her ex if she remained
unmarried.
"The information I was able to provide ended up
changing their lives." —Timothy C. Ebert, Winston-Salem,
NC
It Was A Great Idea
"I explained to a couple that she could take half
of her husband's SS for several years, postponing
her SS benefit and letting it increase in value
8% per year.
"They didn't know they could do this and thought
it was a great idea." — Lisa Winward, Salt Lake
City, UT
A Pleasant
Surprise
"I had a prospect who couldn't make it to any of
my seminars call me with a question. He said he
was 66 years old, his wife was 78 and collecting
Social Security. He was still working and wanted
to know if he could delay his SS benefits until
he stopped.
"I informed him that he could continue to work,
file for a spousal benefit now, and let his own
benefit accrue 8% credits until age 70, when he
could switch to this higher benefit.
"He was pleasantly surprised and grateful for the
reprive. Without Savvy Social Security, I would
not have been as well-versed in that prospect's
financial planning options." — Carl Janasiewicz,
Kingston, NY
Invaluable
Training
"I have found that a good percentage of clients
plan to take SS early as possible.
"This comes without any awareness or thought given
to some of the consequences and effects on beneficiaries
that may have.
"My training has helped me assess my clients overall
financial and family situation and advise them if
taking SS early is the best way to go. Consequently,
I have changed some of my clients' plans to take
SS early as a result. In many cases this has a significant
effect on their financial status." — Alfred Kulig,
Kettering, OH
Able To Make A Difference
"I have helped several widows who have lost their
husbands at a relatively young age, and had either
forgotten or simply did not know they could be eligible
for the spousal benefits.
"This has occurred multiple times.
"Is it disheartening to realize how many struggling
beneficiaries are unaware of their options. In this
case, thanks to Elaine's program, I was able to
make a difference."
— Philip Rongo, Lebanon, NJ
The Competitive
Edge
"Knowledge regarding Social Security definitely
creates an impression on prospects and differentiates
me from other advisors. I have heard the comment
‘My other advisor doesn't have a clue about this
stuff; I wonder what else he doesn't know?'" — David
Gentry, Richmond, VA
The Best Story Is My Own
"Probably the best story is my own. Until going
through your program, I was pretty much convinced
that I would take SS benefits this year, but after
going through scenarios based on my and my wife's
(who is 6 years younger) benefits it became clear
to me that waiting as long as possible is the wisest
move.
"Our combined SS income could reach over 80K a year.
And her survivor benefit increases more than 50%."
— John Tarr, Madison, Mississippi
Great Instant Credibility
"We had a client couple move to GA for retirement.
We gave them instructions on what to tell the SS
office in order to start benefits. The office's
recommended strategy was faulty.
"After several email exchanges between our office
and the local SS office they conceded that we were
right and gave the clients benefits and past due
checks. They were thankful for the information and
said they would be educating their staff as well
as doing supplementary training.
"None of this would have been possible without help
from Elaine in giving them backup data for the recommendations.
We were even able to quote the POMS manual. It gave
us great instant credibility to start a seminar
off." — Michael Egan, Vienna, VA
A Service In High Demand
"We do a weekly radio show to talk about the workshop
and the response has been overwhelming. Last night
there were 90 people in attendance. 25 sheets came
in that night requesting a review and the sheets'
assets total over 9 million dollars." —Robert
Stanlick, Hillsborough, NJ
Know What You're Talking About, And You
Can Help A Lot Of People
"A true story from my own life: while still employed,
I took my 62 year old non-working wife to the Social
Security office to begin her benefit only to learn
that since she did not have her own 40 quarters
she would have to wait until I retired.
"Three years later I went to get my wife on Medicare
and was told (erroneously) that a) she had to wait
for me to retire and/or start my own Medicare and
b) she would have to be covered by a true group
health plan for two years while waiting, forcing
me to purchase a $1100 per month Blue Cross Group
to replace my $400+ per month individual health
plan." When the "error" was discovered, it was impossible
to make retroactive changes.
"Conclusion: know what you're talking about, and
you can help a lot of people." — Victor Gadoury,
Stilwell, KS
A Great Way To Arouse Interest In Prospective
Clients
"I have been impressed with the quality of material
from Horsesmouth. As a Financial Planner focusing
on the 50+ crowd, presenting Social Security information
effectively is important. This is a great way to
garner interest from potential clients." — Ora Citron,
Alamo, CA
$25,000 Paid Retroactively—Thanks! "I love the materials that you have put together
on Social Security. I recently had a visit
with my father and stepmother in Florida and we
talked about Social Security planning.
"After educating them on their rights, my stepmother
called the local Social Security office and told
them that her spousal benefit was incorrect. They
have subsequently received a check for over $25,000
for a retroactive correction of her spousal benefit.
Thanks." —Gwen Vogt, Basking Ridge, New Jersey.
Dry and Boring Made Very User Friendly—Clients
and Prospects Eager "First of all, thank you for your work and the resource
you have become for advisors in the arena of Social
Security. I purchased the Horsesmouth curriculum
several months ago and have been a student of it
since. I am planning to hold my first workshops
in September and already have clients and prospects
eager to attend.
"I also want you to know that I enjoy reading
your material because it is so well done and friendly!
I say friendly because this stuff is so dry and
boring and unattractive in and of itself (unless
one is an actuary), and you have made it very user
friendly. Thank you again."—Susan Tackett, Visalia,
CA.
A Much Needed Resource "I'm most appreciative of the material you've put
together on Social Security. You've created a much
needed resource."—Madeline Noveck, New York, NY.
Clients' Jaws Drop—Even Hardened Ones
Open Up "Once again Horsesmouth hits a grand-slam. This
webinar is MUST SEE…Elaine made it simple to understand
yet very informative and brought tons of new issues
to the table that before might have been overlooked.
"Probably most importantly though, is the information
in this seminar I've been able to take to my clients
and you can see their jaws drop when we get knee
deep into discussing SS. "Just like Horsesmouth
has said, there is NO better way to show off your
skills than by having an elaborate discussion about
Social Security. Even the most hardened clients,
who've heard all the pitches before from brokers,
planners, insurance people, bankers, et al. will
open up and that leads to business. Way to go Horsesmouth!
Thanks!" —Joshua G. Scandlen CFP®, CRPS®, San Antonio,
TX
Future Benefits Review Led to New Client "I have enjoyed the Social Security program and
calculators very much. Although I am still learning
and educating myself on the many rules, I attribute
a recent close of a new prospective client to reviewing
their future benefits of their PIA from your calculator
to the close. Thank you."—Walt Powrozek, Novi, MI
We'd Be Lost Without It—CPAs Appreciate
It, Too "We did another Lunch and Learn on Social Security
this past Friday—it was our third—and I have to
tell you that the feedback has just been great.
I can think of at least 4 couples who have expressed
an interest in developing a Social Security strategy
with us and one has already come in.
"The calculators are great and all the ideas
you give in the book—"File and Suspend", "Do Over"
etc… have gone a long way towards convincing the
groups we've worked with that Social Security is
a not a cookie cutter govt. program where no planning
is needed. So, again, I applaud you on giving
us such a great resource in the "Savvy Social Security
Planning" book. We'd be lost without such
a guide.
"I can also tell you that we've already had two
CPAs agree to host a meeting for their clients where
we get to do our Social Security presentation.
Because we're keeping these to about 12 people per
lunch, each CPA has indicated they'd likely be willing
to do more than one. As one of the CPAs put it,
this kind of seminar allows them to distinguish
themselves from other CPA firms during a time where
there's real pressure in that market for business.
We hope this will lead to some fruitful partnerships."
—Toby Goostree, Kansas City
Thank You for a Wonderful New Marketing
Program "Your Savvy Social Security Planning program has
been wonderful and I hope to become proficient enough
with the material to be considered an expert myself
one day. Nowadays, I read everything and anything
that concerns Social Security. I have hosted two
Social Security presentations for my clients so
far and I am considering holding public seminars
later this year. I am sure this will lead
to new clients for me. Thank you for a wonderful
new marketing program. "—Sally Ng, Walnut Creek,
CA
Seminar Well-Attended, Well-Received "Our office presented the Savvy Social Security
seminar to a group of clients and guests on May
6th. The seminar was well attended and well received.
We received several questions during the Q&A afterward,
and a few folks have since called in with additional
questions." —Vicki McLellan, CFP, Southfield, MI.
Spectacular Program on
Topic Advisors Don't Think About "I just want to give you some quick feedback about
your Savvy Social Security course and supplemental
materials. I was sweating bullets for my first upcoming
community seminar as I plowed through your booklet,
slides, etc. I have a habit of creating an outline
and my own charts which duplicates steps but reinforces
the info in my mind…at least for 10 minutes!
Good Karma Payoff "I
was enthusiastic to share some of my 'new knowledge.'
As it turned out this woman was 65, divorced from
a high earner after a long marriage, unmarried,
working at an "average" job to make ends meet.
As I explained to her, she could apply at 66 FRA
(to get maximum benefit) for her spousal benefit
from her divorced spouse who has always earned the
maximum giving her an additional $1K plus per month
that she did not think was ever possible.
"She asked if this was legal. When I said
that it was she was delighted, especially
knowing that it was coming from her former spouse's
earnings history and that there was nothing he could
do to screw it up. Since she does not have
a long work history with high earnings her reduced
spousal benefit most likely will always be greater
than what she could create based on her own earnings.
I presume that if he dies first, then she will receive
the larger (by 2) survivor benefit.
"If it were not for your course, and my putting
it out there, she may never have been aware of this
benefit. Sometimes we get paid in money, other
times good Karma. I'm not opposed to either.
Pot of Gold Discovered—Ecstatic
Client "I have another client who only
makes about $10K per year as a sign language interpreter
for the deaf so she does not have much of an income.
Though she received a significant inheritance, that
will have to fund her life for the next 30-40 years
because her paltry income cannot do so. As
I have been learning your materials, we were both
surprised and excited to know that she would qualify
for a survivor benefit from her former husband whom
she divorced and he has since died. Her marriage
lasted over 10 years before they were divorced.
(The fact that she remarried him again and got divorced
again is a whole different story!).
"She thought his SS benefit which he was receiving
was over and done with when he died a few years
ago. When I told her she could apply for benefits
right now at age 61 she was ecstatic.
"I also told her that if she waited till 66 she
could receive a lot more. For her this was
a pot of gold at the end of the rainbow and she
would rather take it now than wait. One out
two isn't bad. Her benefit is $1,300 per month
which is about 45% of her frugal monthly budget
and she will not have to draw down from her inheritance
during this down market. (Though she is aware of
the guaranteed increases of waiting till FRA).
Like Finding Free Money
"I have a number of male clients who plan
to work past age 66 till age 70 who do not want
to take SS benefits that will be taxable and they
can earned deferred credits. They did not
know that they would be eligible for a spousal benefit
from their wives' SS earnings history. That's
like finding free money while waiting to build delayed
credits based on their own earnings. If not
already, they can increase their contributions to
their retirement programs which can act as an offset/deduction
to their AGI which has been increased by the spousal
benefit. I imagine that astute financial advisors
should at least earn free lunches for the balance
of their careers on this one!
"As advisors we can toil for hours on deciding on
which small cap fund(s) should populate 5% of someone's
portfolio. It makes a lot of sense to spend time
and money on assisting a client on making their
best decision regarding what may make up 20-60%+/-
of their retirement income.
"In summary thanks for putting together a spectacular
program on a topic that many advisors don't think
about because they won't get paid on it, however
it will be/is an essential part of many baby boomers'
retirements.
"Also I want to compliment Elaine on her exceptional
communication and writing skills. It's difficult
to master a body of information, and even more so
to convey and teach it to someone else. I'm
most grateful." —James R. Zivich, Fullerton, CA
 We
think this is so important to your community, your
clients and your success, that I'm trying to make
it as easy for you as possible to gain this importance
expertise. So here's my promise:
Order
The
Social Security Mastery Program today
and save yourself $100.
Make
the
program a key client-service offering for your
pre-retiree clients. The coming retirement wave
presents a unique and sustained opportunity for
you to extend and enhance your reputation.
By helping people better understand all their retirement
benefit options under Social Security, you'll be
helping them achieve a small "peace of mind" as
they move along to the rest of the retirement income
planning puzzle. That's
why I urge you to obtain the
Social
Security Mastery Program and make this
guarantee:
Read and review the program for 30 days. If you
feel that your clients and prospects will not be extremely
grateful to have a competent, confident and knowledgeable
advisor guide them through the ins and outs of Social
Security, we'll completely refund 100% of your purchase
price—guaranteed, no questions asked. Just call and
tell us you're returning all the materials to Horsesmouth
at: Horsesmouth, 21 W. 38th St., 14th Fl., New York,
NY 10018. Phone: 212-343-8760, Ext. 1.
You Wouldn't Do This to Your Clients, Would You?
If a client had a question about required minimum distributions
you'd never send them to the IRS for the answer, right?
Right.
It needs to be the same for Social Security questions.
Yes, of course, when it comes to actually applying for
benefits, your clients will need to go down to the local
Social Security office and complete some forms and get
the ball rolling.
But you'd never just suggest that they count on the
Social Security Administration for the bigger answers
of where and how their benefits fit into the bigger
retirement income issue.
That's why you need to take charge on this issue—here
is where you demonstrate leadership and expertise.
You've got a chance to project competency and mastery
and confidence on this very important issue.
Clients' peace of mind and their own sense of freedom
and autonomy and independence in retirement depend on
getting the question right.
That's why they'll want your help as an expert. And
that's why they'll be loathe to count on a government
bureaucrat to help them.
When you look at the coming wave of boomer retirement,
and especially the issue of Social Security, it's easy
to see that the motivated and entrepreneurial advisor
is faced with a series of opportunities disguised as
difficult problems…
Putting
The Social Security Mastery Program into your business
is the way to go. Go ahead now and make your order and
save yourself $100—a one-time offer.
About Horsesmouth
Since 1997, Horsesmouth has been helping financial
advisors succeed by providing timely guidance on key
topics such as business development, practice management,
financial planning and investment strategies.
Best,
Sean M. Bailey
Editor in Chief
Horsesmouth
21 West 38th Street
New York, NY 10018
888-336-6884 ext. 1
P.S. With 10,000 baby boomers a day turning 62, I have no doubt you'll have
many opportunities in the years ahead to help your clients
make wise decisions about Social Security. Get the mastery
you need right
here.
FOR INSTANT SERVICE
Call Toll Free: 1-888-336-6884 ext 1
(Outside U.S.): 1-212-343-8760
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