HERE IS YOUR REMINDER FOR OUR 25TH ANNUAL HOLIDAY PARTY
DALLAS ATHLETIC CLUB FROM 3-5 PM
SATURDAY BEFORE THANKSGIVING NOVEMBER 20TH 2021
INVITATIONS GO OUT LATE NEXT WEEK
HOPE YOU CAN COME
CONFUSION ON HOLIDAY
At this moment, we think the Federal Reserve will be closed on Monday which means wires will not occur and the post office…. there is confusion on Banks…
We would plan on not being able to move money Monday, just to be safe…
Rowdy Kids Friday and Holiday Weekend
Today is a Friday, heading into a long weekend due to the local Texas State Fair Day weekend with kids off Monday and an early exit today….
For the collective safety of the local residents and a bit of a break before fall kicks in completely, we will be out early today and loosely tethered on Monday.
As a kid, sure do not recall so many Holidays…. maybe they went by so fast…. oh well!
Have a Great Friday, Super Weekend and Talk next week!
As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.
Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:
Living
Deceased
Divorced
As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!
The following bullets will explain in type form the audio, please take a minute to listen as there is a ton of information in just 4 minutes:
Husband and Wife benefits same for deceased
Unlike living, a Widow Benefit based of FULL UN-REDUCED amount of Social Security Benefit
Example: Widow drawing own benefit spouse dies, the spouses benefit increased to the full amount
Widow can draw at age 60 unlike any other benefit
Widow DOES NOT have to take own benefit – can delay own OR draw deceased spouse – this gives various options and strategies
Cannot marry again before age 60 to have the prior example
So complicated, Mr. Clark suggests we go to Social Security options to make an informed decision
Bring Marriage Certificate – any proof of your benefit beneficiary
Strategy available for Widows due to the options available- i.e. Draw your own, delay widow or visa versa – its complicated but there likely is a right and wrong answer
“If you were married to a high wage earner, might consider waiting until age 60 before getting remarried!” Says Clark – near end of the audio
Dealing with Deceased spousal benefits allows the most options of almost any Social Security Benefits, these options lead to complications, but also maximization strategies …
Be sure to listen to the audio below from the event, it is very informative
As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final/next Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.
The Next Three Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:
Living
Deceased
Divorced
As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!
The following bullets and audio will expel many false items you may have heard …
Spouse (wife in Clark’s examples) CAN receive benefits based on her spouses benefits, ONLY if she will not receive more benefits by drawing her own benefits
If she were to receive a benefit check greater than one half of her spouses benefit, she MUST draw the higher amount due from her benefit
One time based exception to the above statements – this exception is quickly fading due to timing of the laws passed –
Spouse must be age 62
Other spouse MUST be drawing own benefits in order to have spousal benefit
All spousal benefits are based on one half the other spouse full retirement age benefit
Benefit is reduced for spouse based on early age i.e. Spouse is 62 benefit will be reduced – Read next -Important
If spouse is older than wage earning spouse, the benefit will NOT be discounted and will be half of the wage earnings spouses full benefit – in effect greater than one half the early retiring spouses benefit – Great Example at 2 minute mark of audio
Wow, there is so much clarity in the following 2+ minutes of audio, we hope you enjoy – feel free to listen more than once – it took at least a dozen times to get this edited …
Effects of Lower Social Security Earnings Near Full Retirement Age
Very frequently our Financial Planning discussions include early retirement or halting of the big weekly grind/travels to do something always desired but may result in a reduction in income… all very near Full Retirement Age/Last Years of Social Security Credits.
Will a few missed or greatly lowered earnings years near Social Security Full Retirement Age knock your benefit down? Likely Not
Since Social Benefit first part of earnings may count more than last
A few missed years likely will not hurt your retirement benefit
Recall from earlier discussion that Retirement Benefits are based on your highest Wage (not Inflation) adjusted 35 years
Per question/statement from audience in audio – very possible first 10 years count much more than final 3- 5 years
Likely not working last few years or taking a greatly reduced but desired occupation could result in NO DIFFERENCE in Social Security Retirement Benefit
There are always exceptions to the norm, but with repeat occurrences of desired life style change near Full Retirement Age, we feel more comfortable knowing it just likely will not make a big difference… one can infer this will hold true for early retirement as well…. Thanks Tom!
Delaying Full Retirement Benefit and Important Spousal/Widow Understanding
While about 50% of retirees take Social Security at 62 with another huge portion taking the benefit at FRA or Full Retirement Age – there are some folks that delay benefits – here is why
Why would folks delay Social Security Retirement Benefits?
Delayed Retirement Benefits – an ANNUAL 8% increase in benefits
Annual increase until age 70
Cannot wait past 70
Possible 32% increase in benefits
Spouses/Widow DO NOT GET an increase- Don’t wait past FRA for spousal benefits
Spouse would receive higher monthly benefit upon death if delayed benefit
The most important item in this section is the Spousal/Widow benefit – it does not make sense for the spouse to wait for delayed benefit if claiming benefits from a spouse – there have been some rule changes making this more difficult.
How Social Security Retirement Benefit(s) are Earned
Dispelling the myths…. (Was that too dramatic?) … Enjoy
After 40 Years of Teaching/Working as an Expert in Social Security Benefits … “Everything/Common knowledge I hear about how benefits are calculated is Wrong” … Says Clark
Retirement Benefit are based on your highest 35 years earnings – NOT YOUR LAST 3, 4 OR 5 – Break In – Cannot count the times we have read or heard that incorrect statement
Wage inflation adjustments are used to calculate your beginning benefit- not CPI (Consumer Price Index) which is used for the annual increase in monthly Social Security Benefits once commenced
Wage Inflation is much greater than CPI or we would not have had an increase in standard of living over the years
Starting monthly benefits being counted from the higher Wage Inflation calculations versus CPI means current/future Social Security Retirement beneficiaries will receive more than prior, older beneficiaries – Possibly an accidental inflated benefits mistake paying too much in the future, according to Clark
Earnings are Wage adjusted until age 60 – All post 60 earnings are included at regular value
Taking the highest 35 years, Wage inflated prior to 60 and actual benefit after 60 while still working will create your monthly Retirement Benefit
Part 3 from our Social Security Event earlier this year, Expert, Mr. Tom Clark, continued with the meat of Social Security, Retirement Benefits …. that Social Security Provides. Part 1 Here , Part 2 Here and Direct Audio Here on our site for your viewing/listening pleasures.
Social Security Retirement Age(s) Benefit(s)
Retirement Benefits are available at age 62 at a discounted amount
Benefits increase (discount fades) monthly until full retirement age
Full Retirement age is a moving target based on laws changed in 1983 and implemented over several decades
The attached chart shows exactly your full retirement age
In 2019, you may have earnings up to $17,640 before tax penalties begin if you are drawing Social Security BEFORE full retirement age
Via Social Security Administration – In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2019, the limit on your earnings is $46,920 but we only count earnings before the month you reach your full retirement age.
Age To Receive Full Social Security Benefits
(Called “full retirement age” or “normal retirement age.”)
Part 2 from the very beginning of our Social Security Event earlier this year, Expert, Mr. Tom Clark, led off the fun casual discussion with the much important and frequently forgotten secondary benefits that Social Security Provides. Part 1 Here and Direct Audio Here on our site, Discussed Social Security Death Benefits – but now the secondary forgotten portion of Social Security Benefits:
Social Security Disability Benefit
Social Security Disability benefits are VERY important, due to the fact that 1 of 3 workers die or become disabled, with the great majority being Disabled
Disability benefits are for very disabled, and pay to those that cannot due any work anywhere in the US
One in four workers being disabled now versus one in three in recent years is a great improvement
Majority of workers become disabled in mid to late 50’s
Disability benefits are paid as if you are retired at Full retirement age I.e. Your maximum full retirement age benefit will be paid to you if you become disabled no matter your age
Multiple Audio for Different Devices – Mr. Tom Clark – If first does not work, click next file – all are same audio, just different format
At our Fantastic Social Security Event earlier this year, Expert, Mr. Tom Clark, led off the fun casual discussion with the much important and frequently forgotten benefits that Social Security Provides.
Social Security Death Benefits
Should a parent die with children under the age of 18, Social Security Monthly Death Benefits will be payable until age 18 for each child
Parents will have needed to pay into Social Security for the benefit to occur
Benefits will pay to a maximum of three children per family i.e. Families with greater than three children will max at the third child (called the family maximum benefit), families with less than three children will be receive monthly benefits based on number of children under 18 – Here is a link to how to calculate the benefit, as warned by Clark, its complicated
Benefit amount will depend on amount being paid into at the time – i.e. Higher payers will receive higher benefits
No matter the income a benefit will be paid i.e. “Even a billionaires child will receive monthly benefits until age 18!” This statement in the Audio from event, below
Benefits will be paid to an adult for the benefit/use of the child
Over THIRTY FIVE THOUSAND, yep, thirty five thousand children receiving benefits in the Dallas Fort Worth Area alone! From audio below
Multiple Audio for Differing Devices – Mr. Tom Clark
Have a Great “Understanding Social Security Death Benefits” Day!
Hello this is your official reminder to RSVP for the Social Security event.
It’s going to come very fast since this weekend is a holiday weekend … Capital Markets and our office will be closed on Friday.
We look forward to seeing you and a friend where the subject matter may be applicable at our Social Security event Saturday, April 27 at DAC – Dallas Athletic Club at 10 AM for a fun special informative visit with our local Social Security expert and former Social Security three decade Employee, Mr. Tom Clark !
Here are our questions so far- but we want more – keep them coming!
Last time we spoke you were VERY certain Social Security would be there for all of us upon retirement – With all of the changes, do you still feel this way?
Can you explain the divorced verses divorced and remarried benefits?
Have you ever heard of someone being offered a lump sum of retroactive Social Security benefits?
November of 2015 ushered in new laws and changes, are there any neat techniques that survived?
Can you explain non US citizen spousal benefits?
We have been told many of the benefit statements are not always accurate, understating the actual eventual benefit, has this been your experience?
How much can I earn and not receive penalties if I retire before my full retirement age?
The Full Retirement Age keeps being pushed out, will this continue? Is there a schedule?
How long do I have to report my Social Security earnings if they were not reported by an employer?
For many years I did not draw on an ex spouses earnings by accident – using only my earnings benefit, can I request some sort of look back to get my full benefits?
If want to change my Social Security election decision after I made it and have been drawing benefits, Can I do that?
Do I have to take Social Security Benefits ? What if I do not want to?
Is it better to sign up in person or use the website, or does it matter?
My wife is not a US citizen, does that affect her spousal benefits?
Will Social Security always be there in your opinion?
What percent of people take benefits early, at full retirement age and as late as possible?
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
Background
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.
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