Wink Inc. Enrolled Agents America’s Tax Experts ®
Wink Tax Services

Social Security Optimization & Maximisation

It is WRONG to pay into Social Security your whole life and not get ALL the benefits you deserve and are eligible for!

Control Your Destiny

Social Security is essential for retirement, and it’s importance is increasing as employer pensions have all but disappeared, replaced by personal savings, IRA’s, 401k’s subject to market risk and todays near zero interest rates. Claiming Social Security is one of the most important financial decsions one can make. Choosing the best strategy could result in thousands of dollars in additional family income. According to a recent study, retirees lose on average $111,000 per household because they claimed Social Security at a Sub-optimal time. Call today and schedule a Social Security Review. 248-816-1220 or schedule an appointment Singles, and especially couples, can miss opportunities to collect hundreds of thousands of dollars of additional income over their lifetimes when they make poor Social Security income election decisions. By applying little-known, yet creative claiming strategies, you may be rewarded with significant additional lifetime retirement income. There are literally hundreds of Social Security income election combinations available for you to choose from. Furthermore, only a handful of diligent retirees investigate this critical financial decision at a deeper level. There are compelling financial income incentives for applying some of the advanced claiming strategies. Depending on a couple’s Social Security “vitals” (earnings history, relative ages, and life expectancy) and their goals, they may wish to apply claiming strategies such as “File and Suspend,” or “Claim Some Now, Claim More Later.” A detailed description of these strategies is beyond the scope of this article. In short, these strategies all involve the timing of filing for benefits and utilization of the spousal and survivor benefit concepts to maximize lifetime income. A significant portion of those who claim Social Security execute the “land grab” strategy and take it as soon as possible at age 62. Others may partially understand the potential merits of waiting to claim later at age 66 or or even up to age 70. Failure to examine and implement these advanced claiming strategies can result in a significant reduction in total lifetime income for many retirees.

Social Security is the major source of income for most of the elderly.

• 9 out of 10 individuals age 65 and older receive Social Security benefits. • Social Security benefits represent about 39% of the income of the elderly. • Among elderly Social Security beneficiaries, 53% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security. • Among elderly Social Security beneficiaries, 22% of married couples and about 47% of unmarried persons rely on Social Security for 90% or more of their income. Source: Data from the Social Security Administration

Social Security Questions?

Questions you should be asking regarding Social Security: Should I take Social Security early or later? Which Social Security income election strategy will give me the most lifetime net after tax income? Does it make sense for me to first draw upon my 401K and/or IRA account(s) and then claim Social Security later? Does it make sense to re-distribute some of my assets into other investment vehicles that minimize, or altogether possibly eliminate, the taxation of my Social Security benefit? Married? Who should take Social security early, Who should delay, maximum joint lifetime benefit calculation?

What is the difference between Maximization and Optimization?

It is important to recognize the difference between Social Security maximization and optimization. The Social Security maximization decision is based on math to target the highest lifetime dollar amount of Social Security income that the government will pay you. This is essentially a calculation that is done in a vacuum. This maximization calculation does not consider other aspects of the client’s bigger picture financial situation, such as income taxes and how other assets or income streams impact the taxation of the Social Security income stream. On the other hand, Social Security income optimization considers the Social Security income election technique and timing and includes other aspects of retirement financial and tax planning to work with the client towards harvesting the client’s maximum net after tax (i.e. post Uncle Sam!) lifetime income.

I thought Social Security was tax free?

Some Social Security claimants think their Social Security income is, or will be, tax-free. For many, this may not be the case. Up to 85% of Social Security income may be taxable due to what is called provisional income. What is provisional income, it is “... basically your adjusted gross income plus any tax-exempt interest, plus 50% of your Social Security benefits, plus your taxable income” We also call this as the stealth tax, because the taxation of the Social Security income benefit tends to “sneak up” on taxpayers. Several sources of income can contribute toward triggering the provisional income taxation thresholds for a client. These income sources may impact the taxation of their Social Security income benefit. These income sources include, but are not limited to, distributions from your 401k or IRA account(s), wages, pension income, CD and bond interest, and stock/mutual fund dividends. Of course, one ought to be mindful and attempt to minimize taxation of the Social Security income benefit if possible, and this often requires advanced planning. Therefore, it is important to investigate and determine in which sequence you might draw upon your retirement income stream and/or retirement asset account buckets. When and how you take your Social Security income can significantly enhance or reduce the longevity of your retirement assets and income stream. No one should run out of money.

Can I call Social Security for Help?

NO, Social Security Administration staff typically only help the public with information requests, case management, and routine claiming requests. The local Social Security staff are NOT allowed to provide customized financial advice or to suggest case-by-case Social Security optimization planning recommendations for singles or married couples.

Is There More Than One Way Too Sign up for Social Security?

There are many strategies to consider and to weigh the pros and cons of each and how each one interacts with your Income Taxes and retirement assets. Delaying retirement to receive higher benefits Work longer, earning more to increase benefit Sequence and time spousal and retirement benefits for grandfather under prior law. File/Suspend/Reinstate retirement benefits Early retirement to activate child or disabled-child benefits and child-in-care spousal benefits Start widow(er) benefit before full retirement when deceased spouse took retirement benefits early Take retirement benefits before taking non-covered pension to delay activation of Windfall Elimination Provision Delay retirement benefits to raise widow(er) benefits for surviving spouse or ex spouse.

Other Social Security Benefits?

Retirement Insurance Benefits Spouse's Insurance Benefits Divorced Spouse's Insurance Benefits Social Security Disability Insurance Benefits Child In-Care Spouse's Insurance Benefits Widow(er)'s Insurance Benefits Divorced Widow(er)'s Insurance Benefits Child's Insurance Benefits Childhood Disability Benefits Surviving Child's Insurance Benefits Father's and Mother's Insurance Benefits
Wink Inc. | Enrolled Agents | 2701 Troy Center Dr, Ste 255 | Troy | Michigan | 48084 | Tel: 248-816-1220 | 800-276-8319 | Text: 248-800-6013|
Wink Inc. Enrolled Agents America’s Tax Experts ®
Wink Tax Services

Social Security Optimization &

Maximisation

It is WRONG to pay into Social Security your whole life and not get ALL the benefits you deserve and are eligible for!

Control Your Destiny

Social Security is essential for retirement, and it’s importance is increasing as employer pensions have all but disappeared, replaced by personal savings, IRA’s, 401k’s subject to market risk and todays near zero interest rates. Claiming Social Security is one of the most important financial decsions one can make. Choosing the best strategy could result in thousands of dollars in additional family income. According to a recent study, retirees lose on average $111,000 per household because they claimed Social Security at a Sub-optimal time. Call today and schedule a Social Security Review. 248-816-1220 or schedule an appointment Singles, and especially couples, can miss opportunities to collect hundreds of thousands of dollars of additional income over their lifetimes when they make poor Social Security income election decisions. By applying little-known, yet creative claiming strategies, you may be rewarded with significant additional lifetime retirement income. There are literally hundreds of Social Security income election combinations available for you to choose from. Furthermore, only a handful of diligent retirees investigate this critical financial decision at a deeper level. There are compelling financial income incentives for applying some of the advanced claiming strategies. Depending on a couple’s Social Security “vitals” (earnings history, relative ages, and life expectancy) and their goals, they may wish to apply claiming strategies such as “File and Suspend,” or “Claim Some Now, Claim More Later.” A detailed description of these strategies is beyond the scope of this article. In short, these strategies all involve the timing of filing for benefits and utilization of the spousal and survivor benefit concepts to maximize lifetime income. A significant portion of those who claim Social Security execute the “land grab” strategy and take it as soon as possible at age 62. Others may partially understand the potential merits of waiting to claim later at age 66 or or even up to age 70. Failure to examine and implement these advanced claiming strategies can result in a significant reduction in total lifetime income for many retirees.

Social Security is the major source of income for

most of the elderly.

• 9 out of 10 individuals age 65 and older receive Social Security benefits. • Social Security benefits represent about 39% of the income of the elderly. • Among elderly Social Security beneficiaries, 53% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security. • Among elderly Social Security beneficiaries, 22% of married couples and about 47% of unmarried persons rely on Social Security for 90% or more of their income. Source: Data from the Social Security Administration

Social Security Questions?

Questions you should be asking regarding Social Security: Should I take Social Security early or later? Which Social Security income election strategy will give me the most lifetime net after tax income? Does it make sense for me to first draw upon my 401K and/or IRA account(s) and then claim Social Security later? Does it make sense to re-distribute some of my assets into other investment vehicles that minimize, or altogether possibly eliminate, the taxation of my Social Security benefit? Married? Who should take Social security early, Who should delay, maximum joint lifetime benefit calculation?

What is the difference between Maximization and

Optimization?

It is important to recognize the difference between Social Security maximization and optimization. The Social Security maximization decision is based on math to target the highest lifetime dollar amount of Social Security income that the government will pay you. This is essentially a calculation that is done in a vacuum. This maximization calculation does not consider other aspects of the client’s bigger picture financial situation, such as income taxes and how other assets or income streams impact the taxation of the Social Security income stream. On the other hand, Social Security income optimization considers the Social Security income election technique and timing and includes other aspects of retirement financial and tax planning to work with the client towards harvesting the client’s maximum net after tax (i.e. post Uncle Sam!) lifetime income.

I thought Social Security was tax free?

Some Social Security claimants think their Social Security income is, or will be, tax-free. For many, this may not be the case. Up to 85% of Social Security income may be taxable due to what is called provisional income. What is provisional income, it is “... basically your adjusted gross income plus any tax-exempt interest, plus 50% of your Social Security benefits, plus your taxable income” We also call this as the stealth tax, because the taxation of the Social Security income benefit tends to “sneak up” on taxpayers. Several sources of income can contribute toward triggering the provisional income taxation thresholds for a client. These income sources may impact the taxation of their Social Security income benefit. These income sources include, but are not limited to, distributions from your 401k or IRA account(s), wages, pension income, CD and bond interest, and stock/mutual fund dividends. Of course, one ought to be mindful and attempt to minimize taxation of the Social Security income benefit if possible, and this often requires advanced planning. Therefore, it is important to investigate and determine in which sequence you might draw upon your retirement income stream and/or retirement asset account buckets. When and how you take your Social Security income can significantly enhance or reduce the longevity of your retirement assets and income stream. No one should run out of money.

Can I call Social Security for Help?

NO, Social Security Administration staff typically only help the public with information requests, case management, and routine claiming requests. The local Social Security staff are NOT allowed to provide customized financial advice or to suggest case-by-case Social Security optimization planning recommendations for singles or married couples.

Is There More Than One Way Too Sign up for

Social Security?

There are many strategies to consider and to weigh the pros and cons of each and how each one interacts with your Income Taxes and retirement assets. Delaying retirement to receive higher benefits Work longer, earning more to increase benefit Sequence and time spousal and retirement benefits for grandfather under prior law. File/Suspend/Reinstate retirement benefits Early retirement to activate child or disabled-child benefits and child-in-care spousal benefits Start widow(er) benefit before full retirement when deceased spouse took retirement benefits early Take retirement benefits before taking non-covered pension to delay activation of Windfall Elimination Provision Delay retirement benefits to raise widow(er) benefits for surviving spouse or ex spouse.

Other Social Security Benefits?

Retirement Insurance Benefits Spouse's Insurance Benefits Divorced Spouse's Insurance Benefits Social Security Disability Insurance Benefits Child In-Care Spouse's Insurance Benefits Widow(er)'s Insurance Benefits Divorced Widow(er)'s Insurance Benefits Child's Insurance Benefits Childhood Disability Benefits Surviving Child's Insurance Benefits Father's and Mother's Insurance Benefits
Wink Inc. Enrolled Agents | 2701 Troy Center Dr, Ste 255 | Troy | Michigan | 48084 | Tel: 248-816-1220 | TF: 800-276-8319 | Text: 248-800-6013 |