Social Security Explained | How to Maximize Your Social Security Benefit

День тому

How can you maximize your Social Security benefit? Social Security may be one of your primary sources of income in retirement, and you'll learn the tips on how you can be sure to get the most out of your Social Security benefit in today's video.
Timestamps:
00:00 - Introduction
1:15 - Full Retirement Age
3:00 - Cost of Living Adjustment
6:57 - Provisional Income
9:17 - State Income Tax
11:39 - Survivor/Spousal Benefits
13:11 - Example of Spousal Benefits
15:54 - TWO-Person Decision!
17:32 - Foundation of Planning
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КОМЕНТАРІ: 84

@cashflow68 Рік тому

Im waiting another 2 yrs to collect my maximum SS at 70. Since I was the higher earner, my wife started hers at 62. With her early SS, dividend paying stocks and 0 debt, it was an easy decision. Great explanation on SS benefit.

@holdentodd4430 10 місяців тому

Great video! This is one of the best explanation of Social Security benefits and claiming guidelines that I have ever heard. As a 75 year retired CPA I went through the decision making process without good direction despite having a "so-called" financial planner.

@jdenino6022 7 місяців тому

Meanwhile another guy who is on UKposts is telling us to retire as soon as you can without going into detail. He says to get a financial advisor.

@JamesOKeefe-US Рік тому

Great info and presentation! I have watched several of your videos today. Really glad you got recommended to me! Subscribed!

@tammychick4341 8 місяців тому

Great video! Your explanations are so easy to follow and understand. Thank you!! What are your thoughts on the reductions in social security coming in 2034? Seems like that puts a whole new twist on planning and deciding when to start drawing.

@vinnyg2619 Рік тому

Great info James! Although I believe most people know about some of this it's good to see information on SS benefits for planning on the whole financial picture. Helping a spouse after we're gone should be part of the equation assuming that our own health is good enough to work. I would hate to think that my wife was struggling after I'm gone or be a financial burden on our kids because she needs the money. Glad you did this!

@janethunt4037 Рік тому

Thank you for this great explanation on spousal benefit and survivor benefit. I needed clarity on that as we're considering taking my own benefit earlier and waiting for later on my spouse's.

@cmbooks2000 Рік тому

A very clear explanation of ss and the tax effect of retirement income. Thank you

@kellymcgrew9949 Місяць тому

You fail to mention how collecting social security at your full retirement age (FRA) AND continuing to work will increase one's benefit. My FRA was 66 (born in 1954) and I started collecting SS benefits at 68 (2022). As I'm still working and making the SS limit, my benefit increases each year as the 35 highest years are recalculated. My wife is five years younger than me, so her FRA is 66 and 10 months, at which time she will collect 50% of my benefits. I'm planning to work until at least 73 so my benefit should continue to increase each year as I replace lower income years with higher income years. Great videos!

@mandypdx 9 днів тому

Should i marry a homeless man at 70??

@cindimeyers8074 Рік тому

I'd love you to make a video when the older spouse is the low earner. When to collect for either person.

@BadPhD777 Рік тому

I appreciate your videos! Sure beats trying to read the SS website!

@andersonlegacy3136 Рік тому

🎉 Very informative

@donwhittaker5899 Рік тому

Excellent video! Thanks! The link at the end didn't work for me. I'd like to watch it.

@JP-qz9uz 2 місяці тому

Great Video.

@rambo-rb 3 місяці тому

thank you @James. Good to know about taxes on Soc Sec income and that CA does not tax social security benefits.

@Juarez979 Рік тому

Thank you James for all of this valuable information. I appreciate the way you explain things- at my level. I have a basic understanding of finances and retirement and I've learned so much from you! I've had an introductory meeting with Chris Riboli and I'm having another meeting with him tomorrow- my 62nd birthday! I'm looking forward to retiring in October!!!!

@MADHIKER777 11 місяців тому

Excellent explanation!

@RootFP 11 місяців тому

Thank you

@darrellbratton9679 Рік тому

Thank you James. I just investigated whether I should wait to full retirement age or take it at 62. I would give up 180000.00 for five years to get 1000.00 per month more per month.

@michaelswami Рік тому

Careful of the clawback if you still have earned income.

@randolphh8005 Рік тому

If you get the max at 62, which is $2572 for 2023 you would get an extra $154,224 over 5 years. The increase is $1100. So your break even is about age 78, minus the opportunity costs. Always a tough call. I’m waiting till 70 due to the survivor benefit, my wife took early, my break even is around 82, but all women in her family live closer to 90. I have a 50% chance of making it to 83. Also remember that the inflation adjustment is larger when you start with a larger number.

@ziolapolo266 Рік тому

Good to knowing

@garyminn 3 місяці тому

James, what can you tell us about the six-month "look back" payment, we we are told is available when a person decides to start the SS benefit? Our understanding is that - when commencing SS payments -- a person has the option of looking back six months prior, and collecting (as a first payment) that slightly smaller amount, multiplied by six. At that point, the ongoing payment monthly will be that prior amount (the number that is multiplied by 6) but loosing that incremental amount ongoing may be amount that would not be "recouped" for many years, making the six month "look back" large payment the best decision. Thoughts?

@huetang Рік тому

i believe you are over-simplifying the explanation of how much ss is taxed. the 3 buckets (0,50,85) are progressive. if the provisional amount is 33k, then only 50% of the amount over 32k is taxable, so .5*(33k - 32k)=$500 of ss is taxable. and if the provisional income is 45k, then .5*(44k-32k) + .85*(45k-44k) = $4k + $850 => $4850 is taxable. and these thresholds (0 to 32, 32 to 44, 44+) are for joint returns. single filers have lower thresholds, but the same progressive rules apply.

@braddevendorf9901 2 місяці тому

You are absolutely correct.

@kelleysmith2549 6 місяців тому

Does any of this apply to ssa payments?

@barbaramendoza6312 Рік тому

It's really ridiculous to think someone should have to work past 62 life is really short to think all you are going to do is work. Wake up people in US. This is crazy and wait... insurance what a rip off. Nuts!!!

@mltbkr Рік тому

So many angles to try to understand. 🙄😣😫

@RetNavyChiefBTC 11 місяців тому

Of course, rules written by lawyers, lobbyists and politicians convoluted to please their campaign donors wishes.

@kenttappan1 Місяць тому

I got ripped off badly when I became disabled many years ago. They said that because I waited too long to file that they didn't have to pay me maximum benefits like they would have if I had filed about 3 months earlier. So, I get about $3,000 less a month than I should be. So stay on top of things or end up making not even enough to rent a decent home or even eat well.

@marcredgate7288 5 місяців тому

James, why do we not include the published forecast reduction of Social Security benefits down to 78% in 2033?

@heltonja 3 місяці тому

Do military pensions apply to calculating provisional income? Also, I thought they were restricting the ability to collect a spouse's and then switch to your own benefit at 70?

@Beadgcfb 21 день тому

Please clarify the effect of remarriage on collecting based on the ex's work record.

@jscott7348 2 місяці тому

I have 30 years working towards SS. The last 10 years I have received 0 for each year I have not worked. If my estimated benefit would be say 1800 at 62 how much more would it benefit me to work a part time job to get to 35 years. Basically I’m just wondering how much of a difference it would make. If it’s not much than it would be worth. Please let me know what you think. Thanks!

@shawnbrennan7526 5 місяців тому

Good information, but not enough to help people do their own analysis. SSA needs better tools on their website

@turnertruckandtractor Рік тому

Federal or state taxing SSI is just wrong.

@hanswhite 6 місяців тому

You can thank Ronald Reagan and Republicans for that.

@SandfordSmythe 4 місяці тому

@@hanswhite Federal taxing SS and SSDI was designed to effect those with higher outside income, and this money is returned to to SS to help preserve the fund. It was in the same position then SS is in now with limited funds. There was a BI-PARTISAN congressional commission that worked out ideological compromises in a back room, and it was expected that all would sign off on it.. The reason why it is hard to make the necessary changes is because people like you will play politics.

@charlesbyrne71 3 місяці тому

@@hanswhite During the Reagan Administration The Democrats, lead by Tip O'Neal in the house of representatives voted in the 50% tax on social security. The Democrats had majority in both houses. During the first term of the Clinton administration (Democrat) the second tax on social security was voted in by the Democrat led house and the vote was tied in Senate with Senator Joe Biden (Democrat ) voting in favor of the 85% tax and Vice President Al Gore (Democrat) was the tie breaking vote and signed into law by Bubba Clinton. That law was awful because that law never adjusted the provisional income bracket for inflation.

@jasonjstdr Рік тому

Thank you for this information. After a hostile divorce, how does an ex-spouse determine if their spousal benefit pays more?

@MrStan0630 9 місяців тому

Having a “hostile” divorce has nothing to do with social security entitlement. As part of the process of applying for social security retirement, you will be asked for your marital history, and social security will advise you of your divorced spouse’s benefit, if you want to know it.

@craigfugit997 Рік тому

If a Spouse begins taking their Spousal Benefit prior to their Full Retirement Age (= a reduced benefit) does that benefit reduction carry-over to the Spouse’s Survivor Benefit when their spouse passes away?

@randolphh8005 Рік тому

No, it only affects your own benefit. The only exception, is if your spouse passes before your FRA, and you take it before your FRA.

@DougASAP Рік тому

I am quite confident (95%+) that they are separate. If the surviving spouse is at least their FRA when they claim the survivor benefit, they will receive what their spouse was receiving (or would be receiving if they had claimed) when they passed away. If anybody thinks this is incorrect, let me know.

@Larimarc 8 місяців тому

Quick question regarding spousal benefits: Let’s assume my wife and I are both 62 and my Primary Insurance Amount (PIA) at Full Retirement Age (FRA) is estimated at $3,000 per month as per your example. If I decide to collect SS at 62, I will incur a 30% penalty and so my monthly check would be $2,100. If my wife also decides to collect spousal benefits at 62, she will also incur a 30% penalty, but will the penalty be 30% of $1,500 (50% of my $3,000 PIA at FRA) or 30% of $1,050 (50% of $2,100 that I am collecting at 62)?

@igorkot5895 Місяць тому

your wife will be eligible for spousal benefit only if you start collecting your at FRA, not at 62. Read related info on SSA.gov site

@angelaarnold9835 2 місяці тому

Thanks for the video! Is there a way to find out how much less the benefit will be if I plan to retire early (before 62) and I don’t have 35 years of work?

@heidikamrath1951 2 місяці тому

I think we receive an annual SS statement. If you accidentally threw it out, go online and pull yours from there. That would be your best chance given it should represent your actual payments in to the system.

@vermelbrown1824 11 місяців тому

Just in case you were not aware, spousal benefits no longer exist. If you didn't reach age 62 by Dec. 31, 2015, you cannot claim spousal Social Security benefits and later switch to claiming your own benefit. A federal law was passed in 2015 eliminating that strategy, which some couples once used to maximize their Social Security benefit.

@RootFP 11 місяців тому

Spousal benefits do still exist. The file and suspend strategy is what congress eliminated.

@jdenino6022 7 місяців тому

Yeah I think I read about that. The information is here: www.ssa.gov/benefits/retirement/planner/applying7.html

@dutchcrunch91 2 місяці тому

Maybe I missed this but does the surviving spouse receive 100% of the deceased spouse’s full retirement age benefit or 100% of the deceased spouse’s actual benefit. (Say their delayed benefit if they waited until age 70 or age 62 benefit if they elected early)

@larryrogers6224 Рік тому

How do dividends play into s s taxes

@shawnbrennan7526 5 місяців тому

Dividends are part of your provisional income for the calculation about how much of your SS is taxed.

@vnagawin4053 6 місяців тому

Your video is very clear and really helpful. However, when I went to SS to claim what you mentioned about claiming against benefits of spouse ( my own benefit is quite low, 1/4 of my husband's benefit), I was told I can't qualify. I started collecting my benefit at 62. The only time I will qualify for husband's benefit is when he dies! Who should I go to seek guidance and assistance? Thank you.

@igorkot5895 Місяць тому

you need to provide more info. such as your spouse age, what his FRA is, is he collecting SSA already, and if started to collect at FRA or before

@revathynair4650 5 місяців тому

Can you recommend someone from North Carolina that can help with retirement/tax help.

@RootFP 5 місяців тому

We are licensed to help clients in all 50 states. You can go to our website rootfinancialpartners.com to see if we might be a good fit.

@tonycicarella876 9 місяців тому

SO the spousal benefit confuses me. I’m planning on taking SS next year. I will be 65 plus 8 months. My full retirement age is 66 and 8 months. My wife started drawing her benefits at exactly 65. Her full retirement age is actually the same as mine. Since i”m not at full retirement age and neither will she be when I start drawing SS would she be able to take the spousal benefit then or should she wait until we are both actually at full retirement age? My benefit is more than twice her benefit even though I won’t be full retirement age when I start drawing.

@jdenino6022 7 місяців тому

We are confused about this as well.

@catchristo9406 5 місяців тому

If you let your retirement benefit ride and just live off of hers, she can bump up to whatever yours is worth if you die before she does. Once you hit full retirement age, I THINK she can bump up to spousal payments, which is half of your full retirement amount, even if you don't start taking yours.

@shawnbrennan7526 5 місяців тому

@@catchristo9406 She cannot switch to spousal until he claims his.

@jdenino6022 7 місяців тому

My husband could get $4700 a month at age 70 but I don’t think he can wait that long.

@jerrythomas758 Рік тому

I'll be 67 this year and trying to stay in the 12% tax bracket while doing roth conversions and save on taxes when the RMD'S kick in. But I'm still not 100% sure if that is the best strategy. By holding off another 3 years for SS, I'm giving up on approx 100k.

@catchristo9406 5 місяців тому

But how much are you saving by rolling over the retirement accounts early at lower tax rates that will grow tax free...plus your SS will grow at 8% per year too.

@LPerezDancer 11 місяців тому

If my spouse is 10 years younger than me and I'm 62, can I collect the spousal benefit?

@RootFP 11 місяців тому

Your spouse must be collecting their own benefit for you to collect a spousal benefit on their earnings record.

@Ricocase 11 місяців тому

They expect you to pass by 71.

@ronsmith7594 2 місяці тому

I have $3,000,000 in my IRA. Age 62. Do I have to wait until full retirement-age 67 to retire???

@heidikamrath1951 2 місяці тому

I think you can access your IRA at 59 1/2. To answer your question (maybe?): Depends on how much you will need annually in retirement and on how long you plan to be retired (that is a polite way of saying “when do you plan to die?”). You may not wish to consider SS in your calculations-but that’s what this video is about, so…not sure what prompted you to ask that particular question in the comments section of a SS video.

@ronsmith7594 11 днів тому

I have the same but working until 65 so I don’t have to spend $1,000 a month of private insurance!

@teacherburton3559 5 місяців тому

So it’s not gonna be half of my retirement because I have the windfall elimination act hitting my Social Security so that first statement made me want to turn this off--I’m going to listen and I may change his comment and I may not