When You Start Could Have a BIG Impact On Your Spouse. Social Security Strategy

the date that you start social security can really impact the success of you and your spouse's retirement plan and you probably know this already but not every married couple understands the extent that these changes can make and really a lot of them are making costly mistakes when they're planning social security they're obviously not doing this on purpose it's just that the information on what to do isn't always clear and they unknowingly make decisions that have big imp implications for themselves and for their spouse in the future so in this video i want to share what you need to know so that it doesn't happen to you and then how to maximize your family benefit but first welcome i'm dave zoller and i own streamline financial it's a retirement planning firm and i run that company with tim and luke and sean and then our team and we created this channel for people like you who are in or close to retirement if you'd like just one actionable tip per week about making your retirement just a little bit better check out the five minute retirement link below so today i want to share a quick story about how this great couple that we met recently how they're thinking through the optimal income strategy for their plan and social security planning is one of those age specific strategies that we help clients think through and plan and then come up with an idea but really it's not a one and done solution a lot of people think this is the plan okay let's do it but a lot depends on how long are you really gonna work is anything gonna change over the next few years and a lot depends on what type of accounts you have and what is available for withdrawal so there's a lot that goes into it for example this couple they're nine years apart so the husband will call him paul is 67 and then wife will call her jane is 58 and the husband was looking at stopping work this year and starting social security as supplemental income so the traditional planning technique would be sure 67 you're at full retirement age there's that makes sense but when we ran the scenario and i'll show you a picture of it coming up things looked good but it brought up an important discussion so let me see if i could pull this up for you now and all right so you're seeing this screen so this helps us look into the future as we often do with with our clients and we mapped out a scenario well where paul passes away at 84 and jane is still 75. she's got a good family track record of living a long time in paul not so much now again that doesn't mean it's definitely going to happen but just looking at the odds it seems that's a scenario we should plan for what happens is that the social security benefit would actually decrease by hundred dollars and that's using just today's values that decrease happens because paul's receiving about three thousand a month if he were to start now or this year and then jane is receiving or scheduled to receive eighteen hundred per month if paul passes away though jane will be able to step up her benefit to what paul's was if he passes away to 3 000 but that 1800 that she was taking goes away essentially reducing her total benefit really the family benefit from 4 800 down to 3 000 a 37 percent decrease right around there so the question becomes should we delay paul's benefit and instead use his other accounts ira or taxable accounts to supplement income first so that he can continue to get an increase in social security so now let's go to that that slide so in this example here is paul passing away at 84 and jane is 75 at that time and the social security example happens what if he's able to delay till age 70. you can kind of see the increase green bars that pop up and this is for the benefit of jane so if they're planning together as a couple then that then this could make a lot of sense now again they're one case they're one scenario and their plan looks great here and that allows them really when we're planning we first want to cover the needs and and just the essentials of of living to make sure that everything is is good and you feel confident with what you're doing and then you can look at some of the the wants or the fun things to add on top of uh those needs expenses and see how that impacts your plan moving forward and coming up i'm going to give you three reasons why it might make sense for you to do something similar i'll give you three uh scenarios when it could make sense but for paul and jane if he waits to claim his benefit and draw from investment accounts first then his benefit could increase to 3 900 per month and that's why we're seeing this that green back at the start here so what we put in as the tentative plan right now is is to do that and again things could change for this plan and for this couple because life changes but that's what we have for now because it was important to maximize future benefits for jane if if paul were to pass away so let's go over three reasons when this sort of scenario could make sense for you and by the way there's a lot of factors that go into these kinds of decisions and i'm sure you're aware having the ability to map out these scenarios and arrive at the best possible decision is is a real benefit to retirees and also you already know this this isn't specific advice for you because we're not talking about your specific situation it's really just to share an example of how another couple did it and how they think through this process of planning and if you're thinking about planning in this way i recommend meeting with your own financial professional before making a decision and if you're realizing that there's a big difference between the last 30 years of saving for this retirement date and using these things and now you're getting to the point where you are going to start using them and figuring out the tax impact the withdrawal strategy and income and and the investment strategy in retirement if you're not getting that sort of help right now feel free to reach out to us we don't always have time but i'll get back to you either way if you go to the website i'll be able to get to get back to you somehow so here are the three reasons when it could make sense uh to do the strategy of delaying so the first one is just to remember that delaying from 67 or really to any age that means you're not receiving quite a bit of money from social security so that's just something to get over for for paul specifically in this he's not receiving over 100k for those three or so years where he's delaying it and that's a lot but it could be worth it if your spouse is going to live longer than you are the trade could also make sense for couples who have available funds in accounts other than the social security the funds that they're going to be drawing from so other accounts they can use it could also make sense for couples who have that significant gap in age sometimes makes sense for that and then also couples whose spouse at least one of them has a long or uh they're healthy and they have a history of living a long time that's when it could make sense so i hope this example of another couple was helpful as you're thinking about your own income plan and social security plan if it was please click the like button and if you like these kinds of retirement specific videos subscribe so that you don't miss the next one and then i'll see you there take care you

Channel: Streamline Financial

Views: 6,470

Keywords: retirement calculator, retirement planning, retirement income, retirement investing in your 50s, financial planning, how to retire, 4% rule, retirement, roth ira, investing, 3 buckets strategy, how to withdraw money in retirement, how much to save for retirement, financial advice, social security retirement, how much do i need to retire, retirement withdrawal strategy, retirement planning at 60, retirement planning at 50, Chicago financial planner, naperville financial planner

Id: eVN4Gtyia8k

Length: 7min 19sec (439 seconds)

Published: Mon May 23 2022