Clients commonly ask the following questions about Social Security:
1. WHAT IS MY FRA (FULL RETIREMENT AGE)?
2. HOW MUCH WILL MY BENEFIT BE REDUCED IF I TAKE MY SOCIAL SECURITY INCOME EARLY?
http://www.socialsecurity.gov/retire2/retirechart.htm – the answers are here!
3. HOW MUCH CAN I EARN WHILE RECEIVING MY SOCIAL SECURITY INCOME WITHOUT REDUCING MY SOCIAL SECURITY BENEFITS?
a. Before full retirement age - $15,480 or else the benefits are reduced.
b. The year of full retirement age - $41,400 or else the benefits are reduced.
c. After full retirement age – no reduction in benefits based on earnings.
4. IS SOCIAL SECURITY INCOME TAXABLE?
Most likely up to 85% of the income that you collect will be included in your taxable income. This does not mean an 85% tax rate! http://www.socialsecurity.gov/planners/taxes.htm
5. ARE THERE STRATEGIES FOR WHEN TO TAKE MY SOCIAL SECURITY INCOME?
a. "Phase In" Strategy
b. "File & Suspend" Strategy
c. Early Election vs. Full Retirement
d. Spousal benefits
6. DO THESE STRATEGIES WORK FOR EVERYONE?
No, you should contact an advisor to review your specific facts. Your age, your spouse's age, and your incomes are some of the main factors the advisor will need to know.
7. HOW DO I LEARN MORE ABOUT THESE STRATEGIES?
c. Meet with your financial advisor. This information is based on 2014 figures. You should consult your financial and tax advisors prior to making decisions.
Securities offered through Triad Advisors, Inc. Member FINRA/SIPC.
Laura K. Schilling, JD, CPA, CFP®, CSA
Financial Innovations, LLC
Laura Schilling isn't your typical financial planner. She is also a world traveler who has been to Asia, Africa, Europe, and Israel. Laura is an active member in the community, a mother of two, and a champion for each of the working mothers she employs. As principal and founder of Financial Innovations, LLC, she staffs her firm with stay-at-home moms who work to meet the needs of their clients around the globe.