Tuesday, November 24, 2015

Social Security Changes Slipped In By Congress

No one in our industry saw this coming. Apparently, we financial advisers have been doing too good of a job in regard to advising clients on Social Security distributions and when to take them. Congress has gone in and taken away two major, not minor, but major planning opportunities. One is the Restricted Application Strategy and the other is the File and Suspend Strategy. No sense describing them since they no longer exist. Might as well not muddy the water. Well, they don't exist for most people, unless you file in the next 6 months or so.The point is that you might want to have a conversation with your financial adviser if you plan on taking your Social Security in the next 6 months.

The good news is if you delay taking your Social Security benefits, then you can still earn 8% a year for each year that you delay up until age 70. If you are in good health and have another source of funds that you are making less than 8% guaranteed, then you might be better off delaying your Social Security benefits. However, I would advise speaking with a financial adviser (if not me) about it.

Happy Thanksgiving!