[vc_row][vc_column width=”1\/4″ offset=”vc_hidden-xs”][vc_widget_sidebar sidebar_id=”sidebar-main”][\/vc_column][vc_column width=”3\/4″][vc_column_text]<\/p>\n
In the days of black and white televisions, when the remote control was one of your children, Jack Webb created and starred in a series called Dragnet.\u00a0 He played Joe Friday, a detective sergeant on the Los Angeles police squad.<\/span><\/p>\n At the beginning of each show the narrator would start off with, \u201cLadies and gentlemen the story you are about to hear is true, only the names have been changed to protect the innocent.\u201d<\/span><\/p>\n No one who has ever seen an episode would ever accuse any of the actors of over playing their roles or being off of their ADHD meds.\u00a0 No hype, no long drawn out fights, they were stories about finding the truth (a.k.a the facts).<\/span><\/p>\n Apply that searching for truth to the Old-Age, Survivors and Disability Insurance Program or as you and I know it, Social Security.\u00a0 You see there\u2019s this disconnect from the truth that seems to have invaded the public\u2019s mindset about Social Security where opinions outweigh the facts.<\/span><\/p>\n Let\u2019s start with some historical facts:<\/span><\/strong><\/p>\n -The program was enacted in 1935 by the FDR administration and Congress.<\/span><\/p>\n -The first benefit paid was to a gentleman who received a lump sum payment (this was the only form the benefit was paid during the startup period from January 1937 through December 1939) of seventeen cents.<\/span><\/p>\n -Ida May Fuller was the first recipient of a monthly check.<\/span><\/p>\n -Originally the first three digits in your Social Security number represented the geographical region where you lived at the time you applied.\u00a0 As of 2011 a randomized system has been put in place.\u00a0 Over four hundred and fifty million numbers have been issued with over $11 trillion in benefits paid.<\/span><\/p>\n These are some interesting facts, but what do we as individuals need to know?\u00a0<\/span><\/p>\n Dum dee dum dum<\/span><\/p>\n This is the city, Both will see their 62nd\u00a0birthday early this year and they are fully employed. Stan\u2019s income annually is $70,000\u00a0and Margaret\u2019s is $55,000, they both plan to continue working until they reach FRA (Full Retirement Age) which for them is 66\u00a0years and two months.\u00a0 Stan and Margaret have been married for 39\u00a0years, raised a family, have been active in their church and community all of their lives.\u00a0 They have been good stewards of their incomes and have consistently saved for their retirement through their employer provided plans. \u00a0Saving has been their focus, not planning. Sound familiar?<\/span><\/p>\n A Saturday morning ritual was is to meet with friends at a local restaurant to discuss the week\u2019s events and solve the world\u2019s problems.\u00a0 One of their friends in the group just retired early and is remarking how wonderful it is to not be on the clock.\u00a0 He related his story about the ease of which he signed up for Social Security over the phone.\u00a0 He advised everyone there to sign up as soon as they could because everyone their age needs to get their benefit before the system runs out<\/em> of money.<\/span>\u00a0<\/span><\/p>\n Fact<\/em><\/strong>:\u00a0<\/em><\/span>The Social Security Administration has projected that if changes are not made to the system by 2033 there will only be enough funds to provide all Social Security recipients with 77% of their benefits. <\/em><\/span><\/p>\n One such change was approved in the budget bill in December of 2015.\u00a0 This change put an end to the strategy known as \u201cFile and Suspend\u201d by April 30, 2016.\u00a0 This one act alone will reportedly save $9 billion per year.<\/em><\/span><\/p>\n On the drive home Stan and Margaret discuss Social Security, Stan comments they have worked hard, paid their taxes and deserve to receive their fair share of benefits.\u00a0 The following week they both call and request that their benefit from Social Security begin. <\/span><\/p>\n \u201cAn emotional decision without intellectual contemplation usually leads to a less than desirably outcome.\u201d<\/em><\/span><\/p>\n Fact<\/em><\/strong>:\u00a0<\/em><\/span>Social Security statements project what your monthly benefit known as your PIA (Primary Insurance Amount) will be when you attain FRA.\u00a0 When you file early your benefit is reduced based on the number of months you received the benefit before you reached full retirement age (FRA).\u00a0<\/em><\/span><\/p>\n Stan\u2019s PIA is $2,400, taking his benefit at 62 it will be reduced to $1,800.\u00a0 Margaret\u2019s PIA is $1,800 and hers will be reduced to $1,350, a loss of $1,050 per month of income on this rule along.\u00a0 Some individuals have to make this kind of sacrifice to live; others who rely on opinions instead of facts and sound planning will have less than optimal results.\u00a0<\/span><\/p>\n Fact<\/em><\/strong>:\u00a0<\/em><\/span>When claiming Social Security early and earning W-2 income there are limits on how much income you can make and not have your Social Security affected\/decreased.\u00a0 This year the income limit has been raised to $16,920.\u00a0 The rule is $1 will be withheld for every $2 dollars earned above the $16,920 limit.\u00a0<\/em><\/span><\/p>\n Ouch!\u00a0 Stan & Margaret\u2019s desire to work until they reach 66\u00a0will dramatically reduce the actual benefits they will receive.\u00a0 We would hope that when they made the call to Social Security someone would have asked them this question, \u201cWill you have earned income?\u201d<\/span><\/p>\n Many individuals know and understand some of these basic rules but, there are literally thousands of them in the program that can affect your benefits.\u00a0<\/span><\/p>\n Anyone who knows about the show Dragnet, associates the character Joe Friday with the phrase \u201cJust the facts Ma\u2019am\u201d, but the truth is that character never said that specific line.\u00a0 Over the years parodies of the show created it.\u00a0 Yet we take it as fact. \u00a0\u00a0<\/span><\/p>\n Saving alone is not a plan. Taking the advice of others who don\u2019t know your specific situation, or acting out of fear is not a plan.\u00a0 Taxes, all types of income, fixed and social expenses must be carefully considered when planning for your retirement. Your future must be guided by more than just opinion, hearsay and rumor.\u00a0 You need and deserve to have knowledgeable and professional individuals who have your best interest placed first in all investment and financial decisions that WILL affect your future.<\/span><\/p>\n Let the FACTS guide you.<\/span><\/p>\n Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.<\/em>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm”][vc_widget_sidebar sidebar_id=”sidebar-main”][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column width=”1\/4″ offset=”vc_hidden-xs”][vc_widget_sidebar sidebar_id=”sidebar-main”][\/vc_column][vc_column width=”3\/4″][vc_column_text] In the days of black and white televisions, when the remote control was one of your children, Jack Webb created and starred in a series called Dragnet.\u00a0 He played Joe Friday, a detective sergeant on the Los Angeles police squad. At the beginning of each show the narrator would start […]<\/p>\n","protected":false},"author":8,"featured_media":2309,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","footnotes":""},"categories":[43],"tags":[],"class_list":["post-1963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement-planning"],"acf":[],"yoast_head":"\n
\n<\/span>I work here
\n<\/span>I\u2019m a financial advisor
\n<\/span>It was Tuesday February 3rd<\/sup>, it was cold, I was working the investment desk when my boss handed me the case of Stan and Margaret.<\/span>\u00a0<\/span><\/p>\n