09 Aug Social Security Benefits
Social security, Uncle Sam is finally ready to pay you back for all of your years of generous patriotic contributions. Why waste a second waiting to receive that hard earned check every month, well actually there are a few reasons. For instance just by waiting to collect until age 66 a higher earning client can enable a spouse to claim spousal benefits worth 50% of the partner’s benefit! Patience is a virtue as it may seem, but is it really worth it to wait to receive social security? A well informed answer would be the best, so let’s discuss further the benefits of waiting on you social security benefits.
Some in the financial business consider social security the “Cheap Annuity Option”. One in which inflation is adjusted, and where benefit payment becomes 76% large just by waiting until age 70 to start receiving it. Another strategy, for married couples ready to retire, is for the spouse with the largest benefits to sign up and defer social security while the spouse with lower benefit claims theirs at the normal retirement age.
This strategy allows growth on benefits received by both and is smarter than simply deferring. Basically if a couple delays collecting social security until age 70 they at least collect 50% more than they would if they bought an actual annuity through a commercial insurer. Although leaving sizeable amounts of money on the table which for many who are ready to retire is too difficult an option. But for those who desire more than minimum grunted income, this strategy for social security is especially attractive.
There are multiple other “loopholes”, if you will, when it comes to Social Security depending on your situation. For instance those who are widowed or divorced can receive more benefits than they previously believed. Although the situations vary and everyone’s is different, there are many reasons to strategize your social security, you may have more coming your way from Uncle Sam than you think. Here at Ortiz World Wealth Advisors we have experience and sophisticated software that can calculate and assist you in these matters, so if this interests you, call for a free consultation!
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