In advance of our sixth client story, I wanted to share a personal holiday experience.
What is love?
My wife regularly puts together holiday gifts that we deliver to residents in our subdivision.
This year, she decided to dress up like an elf while making the deliveries. She then asked me to don a special costume.
As a 48-year-old Jewish guy from Brooklyn, NY, I agreed to wear a onesie Grinch outfit while on our delivery route. I walked in costume throughout our subdivision at constant risk of attack from neighbor’s dogs that had to wonder who this green furry thing was invading their space.
I do love my wife quite dearly and only said “Are you kidding me” a few times. She always reminds me about the importance of caring for and being mindful of others, making me a better person. As the famous story goes, she makes my heart grow three sizes.
Our sixth client story is about how choosing the right Social Security claiming strategy can save a substantial amount of money over one’s lifetime.
Our client was about to turn 60 and needed additional cash flow to supplement his business income. The original plan was to draw upon personal assets from ages 60-62 and then to claim his own Social Security at age 62.
In our discussions, he had mentioned that his wife had passed away several years prior. I asked if she had built a Social Security benefit. Upon researching, he determined that she did.
He was thus able to claim her survivorship benefit when he turned 60. The following resulted:
ü He no longer needs to claim his own Social Security benefit at age 62. He can now wait until age 70, which will allow him to lock in a substantially higher benefit for the rest of his life.
ü The survivorship benefit plugged a lot of the cash flow gap, significantly reducing his need to draw from his own assets.
ü He is currently drawing the full survivorship benefit that he was eligible for at age 60. This is because his business income is below the threshold at which his survivorship benefit would be reduced.
ü Depending on how long he lives, the potential savings could ultimately be in the hundreds of thousands of dollars.
Our motto is “we can help you with that.” We will collaborate with you on any financial decision you make, engaging other subject matter experts when necessary. We will not stop until we get things right.
We encourage you to reach out to us for assistance making important financial decisions and we always appreciate you recommending us to others.
- Any examples given are for illustrative purposes only and not meant to provide specific advice or recommendations for any individual. We strongly recommend you consult a qualified professional regarding your specific situation.