WrapManager's Wealth Management Blog
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Boosting Your Retirement Income in the New Year

Posted by Michael J. O'Connor | CWS®, Vice President Investments
December 31, 2014

Boost-Your-Retirement-Income-in-the-New-YearMany people think of Social Security as a steady, if meager, contributor to their retirement income—no flexibility, but at least it shows up monthly. The truth is, however, that there are strategies you can use to maximize your Social Security income.

By incorporating these strategies into your overall retirement lifestyle planning, you can provide yourself with more options during retirement.

The Restricted Application for Spousal Benefits

The Restricted Application for Spousal Benefits allows for one spouse to begin collecting spousal benefits even as their own retirement benefits continue to grow. If you continue to let one spouse’s benefits grow until age 70, the benefit will be quite a bit higher than it would have been if collected at age 66.

Whether or not to use this strategy depends on your situation; a financial advisor will help you to determine the advantages you could gain by using it. Our Wealth Managers can help you to build a comprehensive retirement plan that includes the wise use of Social Security benefits.

The Reset Feature

Most people don’t realize that there is some flexibility given to taxpayers who regret taking their reduced Social Security benefits at age 62. Essentially, this option allows you to “reset” your benefit amount by filling out Form 521, a “Request for Withdrawal of Application.” To “reset” your Social Security benefits, you have to repay all the Social Security benefits you have received and then reapply at your current age. You can only reset your benefits once, and you can’t reverse the action.

Once your request is approved, you begin collecting the new, higher amount, and this continues for the rest of your life. You can see how this “reset” can really make a difference in your long-term retirement income.

As you can see, Social Security is not necessarily a one-size-fits-all formula. If you’ve already started collecting reduced benefits, you can reset your Social Security disbursements and begin collecting more. You can also use the Restricted Application for Spousal Benefits to maximize your benefits.

To learn more about what you can do to create an investment plan and implement wealth management strategies for your own family, contact one our Wealth Managers at WrapManger. Our Wealth Managers can evaluate your individual situation and help you to formulate a custom solution that includes Social Security benefits as well as your own investment strategies. Give us a call at 1-800-541-7774.

 

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Additional Disclosure: To the extent this presentation includes any state or federal tax advice, the presentation is not intended or written by WrapManager, Inc. to be used, and cannot be used, for the purpose of avoiding federal tax penalties. WrapManager, Inc. does not advise on any income tax requirements or issues. Use of any information presented by WrapManager, Inc. is for general information only and does not represent tax or legal advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.

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Retirement Income Strategy