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How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

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Page 1: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

How Can You Maximize YourSocial Security Retirement Benefit?

AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Page 2: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Virtually Every American is Covered by OSI,

“Old Age and Survivors Insurance”

Page 3: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

The Federal Insurance Contributions Act of 1935

“FICA”

Page 4: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Insurance?

How is Social Security, “Insurance?”

Page 5: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

On January 31, 1940, Ida May Fuller received the very first Social Security retirement check for $22.54.

Ida May Fuller

Page 6: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

She collected benefits from age 65 to age 100. She is an example of why people need “Old Age Insurance.”

Ida May Fuller

Page 7: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

“The first person who will live to see their 150th birthday has already been born.”

-- Dr. Aubrey De GrayChief Scientific Officer, SENS

Page 8: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Longevity Magnifies All Other Retirement Risks

• Inflation• Market Downturns• Low Interest Rates

• Income Taxes• Long Term Care• Outliving Your Money

Page 9: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Public and private insurance can help you build a safe foundation to

eliminate longevity risk

Page 10: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Fred and Wanda WorkerBoth Age 60

Excellent HealthOut of Debt

$500,000 in 401(k) / $50,000 CDs

CONSIDER THIS STORY OF

Page 11: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

We Start With Their

Social Security

Statements

ssa.gov/myaccount

Page 12: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Wanda Worker’s StatementFull Retirement Age, or “FRA”

Age 66 Benefit = $1,619

ssa.gov/myaccount

Page 13: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Wanda Worker’s StatementAge 70

Benefit = $2,023

ssa.gov/myaccount

Page 14: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Wanda Worker’s Statement Age 62

Benefit = $1,113

ssa.gov/myaccount

Page 15: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Fred’s Monthly Social Security Benefits

Age 62 = $1,875Age 66 = $2,500Age 70 = $3,334

Page 16: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Wanda: $1,113 per monthFred: $1,875 per month

$35,856 Annual Income

LIKE NEARLY HALF OF ALL RETIREES*, FRED AND WANDA WERE INCLINED TO START

SOCIAL SECURITY AT AGE 62

* 2013 Urban Institute analysis of U.S. Census Bureau

Page 17: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

• $60,000 Income Needed• $36,000 Social Security Income• $24,000 Income From 401(k) (Only Need A 5% Return Each Year)

THEIR THOUGHT PROCESS

Page 18: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

“If you've only got one shot, you've got to make it count.

You can't afford to miss because you screwed up the planning.”

-- Lee Child, The Killing Floor

Page 19: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

• Social Security Increased Benefits• Effects of Inflation• Longevity Risk• Market Risk• Income Taxes

THEY OVERLOOKED

Page 20: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Why poor planning could have caused them to run out of money in about 27

years

Page 21: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

SOCIAL SECURITY BENEFIT ANALYSIS

$315,000

Difference

Page 22: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

By collecting a reduced Social Security benefit

instead of maximizing it . . .

THREE WAYS THEY WOULD LOSE MONEY

Page 23: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

SOCIAL SECURITY BENEFIT ANALYSIS

$28,428 Differenc

e

1- They Would Lose Annual Income

$35,856

Instead of

$64,284

Page 24: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

SOCIAL SECURITY BENEFIT ANALYSIS

$60,000 Differenc

e

2 – They Would Lose the Spousal Benefit

$0

Instead of

$15,000 for 4 years

Page 25: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

SOCIAL SECURITY BENEFIT ANALYSIS

$17,508 Annual

Difference

3 – They Would Reduce Survivor Income

$22,500

Instead of

$40,008

Page 26: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

SOCIAL SECURITY BENEFIT ANALYSIS

You Just Saw an Overview of the “File and Suspend” Strategy

Page 27: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

discovered they should work three more years then live on

their 401(k) assets to maximize their Social Security.

However . . .

FRED AND WANDA

Page 28: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

EVERY SITUATION IS DIFFERENT

Page 29: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

STARTING AT AGE 62 IS BEST IN THIS SITUATION

Page 30: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

HERE THE HUSBAND SHOULD START AT AGE 70 AND THE WIFE AT AGE 62

Page 31: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

STARTING AT AGE 66 IS BEST IN THIS SITUATION

Page 32: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Get Your Own Social Security Maximization and Retirement Analysis to Discover the Strategy that Works Best for

You

WE WILL HELP YOU

Page 33: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Get Your Social Security Statement

WE WILL HELP YOU

Page 34: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Explain Key Social Security Terms

Full Retirement Age “FRA” “File and Suspend” Strategy Spousal Benefits Survivor Benefits Early Retirement Benefit Reduction

WE WILL HELP YOU

Page 35: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Answer Key Questions

When Should I Begin Social Security Income?

Can I Get Spousal Benefits From My “Ex?” When Should I Stop Working? Are My Retirement Accounts Adequate? Can My Retirement Accounts Provide

Guaranteed Lifetime Income?

WE WILL HELP YOU

Page 36: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

Discussion Points

Life Expectancy Financial Situation (assets, debts, income,

and tax situation) Financial Objectives and Experience Risk Tolerance Family Circumstances

WE WILL HELP YOU

Page 37: How Can You Maximize Your Social Security Retirement Benefit? AN OVERVIEW TO HELP YOU MAXIMIZE YOUR LIFETIME SOCIAL SECURITY INCOME

For a Free Social Security Analysis

I WILL HELP YOU

Michael J. Prestwich(505) 480-4331

www.SafeLifetimeIncome.com