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Mountain Peak Financial, Inc

At Mountain Peak Financial, Inc., we are dedicated to informing our clients and working closely with them to help develop the best financial strategies for their long-term goals. Our goal is to be the trusted lifetime advisor that helps our clients achieve the confidence they deserve for their financial futures.

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Mountain Peak Financial, Inc.  |  1425 W. Foothill Blvd., Ste 115, Upland, CA 91786 MAP  |  Tel: 909.982.2277

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Mountain Peak Financial, Inc. are not affiliated companies.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. Charles Ragonese CA LIC #0B02155, Firm LIC #0I088569

Any references to protection benefits, safety  or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

Neither the firm nor its agents or representatives may give tax or legal advice.  Individuals should consult with a qualified professional for guidance before making any purchasing decisions. Mountain Peak Financial is not affiliated with the US government or any governmental agency. 615813

© 2018 by Mountain Peak Financial, Inc.

This New Act Will Change the Way You Maximize Your Social Security Benefits

July 12, 2016

 

If you and/or your spouse are already collecting social security, chances are you’re working the system as much as possible to maximize those benefits. Workers who have contributed taxes to social security during their lives can begin collecting monthly payments at age 66. Just as retirement itself changes – as we explained in our infographicThe Evolution of Retirement – social security is changing along with it, as it remains an essential component of retirement.

 

If you aren’t living under a rock, you’ve heard all the media debate over the death of social security and whether or not it’ll still be around in the future to help the current young ones retire. As a start to the Social Security reforms intended to avoid this crisis, the government has effectively put an end to 2 common maximization strategies – File and Suspend, and Restricted Application – through the Bipartisan Budget Act of 2015.

 

1. File and Suspend

 

What is it? One spouse files for SS benefits but then suspends those benefits. However, because this spouse has technically filed, the other spouse can now claim spousal benefits. Meanwhile, the first spouse’s benefits will continue to grow through delayed retirement credits.

 

Here’s an example. Mike is 66 and Tina is 62. Mike files for his social security benefit which would come out to about $1200 monthly. He then suspends receipt of his benefits but his wife Tina – who is not yet at full retirement age – can already claim her spousal benefits of about $400 monthly. This way Mike and Tina can already receive some income while the rest continues to grow until Mike officially claims his delayed retirement benefits at age 70. It’s the best of both worlds and a very common strategy.

 

2. Restricted Application

 

What is it? One spouse is already receiving retirement benefits and the other spouse, who is also of retirement age already, claims spousal benefits. Because the second spouse is of retirement age, he/she does not need to claim his/her own benefits and can allow them to grow until age 70. Yet another method of both receiving income and letting the rest of your income continue to grow.

 

The Bipartisan Budget Act of 2015 puts an end to both of these maximization strategies in Section 831 – Closure of Unintended Loopholes. Though these strategies did help maximize benefits, they also contributed to the looming depletion of future social security benefits. This is only effective for people who are beginning to collect after April 30, 2016. If you’ve already implemented these strategies before April 30, then you can continue to use them.

 

For everyone else, the good news is that there are sources of retirement income other than Social Security. While you can still receive your Social Security benefits, it may be wise to not rely on that for 100% of your income. Instead, it’s recommended to put money aside in IRAs or 401ks or even delay taking benefits to as late as 70 years old. Start thinking of Social Security more as a supplement to income, as it was intended to be, and speak with your advisor to set a strategy for your best retirement.

 

 

 

Sources:

http://money.usnews.com/money/retirement/articles/2015/12/04/say-goodbye-to-the-social-security-file-and-suspend-strategy

http://www.socialsecuritychoices.com/blog/?p=98

https://www.ssa.gov/legislation/legis_bulletin_110315.html

https://www.ssa.gov/news/press/basicfact.html

 

Investment Advisory services offered through Global Financial Private Capital, LLC., an SEC secured Registered Investment Advisor. Only Charles Ragonese of Mountain Peak Financial, Inc. is licensed to give investment advice.

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