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We get phone calls quite frequently from people wanting to know why their Social Security check is less than expected; there are several possible reasons:

1. If you opted to take your benefit before your Full Retirement Age there will be a reduction to your benefit amount. Mind you, this is for life! Could be as much as 25-30% depending on your Full Retirement Age.
2. If you are eligible for Medicare, that required amount is reduced from your Social Security check. Starting in 2017 that standard amount is $134. And this amount varies incrementally based on reported income.
3. If your income levels, if filing before Full Retirement Age, are above the allowed earnings per the Earnings Limitations rules and regulations. This is could effectively reduce your Social Security check to zero. The Earnings Limitations for 2017 is $16,920.00 per year, and $44,880 in the year you turn Full Retirement Age. Be careful you don’t make a mistake with Earnings Limitations – could prove costly!
4. If you signed a form that allows the SSA to take taxes out of your benefit amount. Some people make this decision based on their tax situation.
5. Delayed retirement credits that accrue after Full Retirement Age (8% per year after Full Retirement Age) are paid out the January after the credits are earned, if you claim before age 70, and after your Full Retirement Age. If you want to shorten this delay in getting your final credits, claim late in the year. As we tell our clients, TIMING is critical.
6. Also, there are reductions for those that have Federal Pension Offset. This is a whole different set of rules and regulations.

Please be mindful that filing for your benefit is not an easy decision, in fact if researched properly, is very complicated.

Professional advice is simply a phone call away at 601-954-0699 or email us at dthompson@pillarsllc.com or visit our website at www.pillarsllc.com. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of 40 years– we have your back on this one! We are Corinth, MS residents, but we service clients nationwide.

During our seminars, we try to explain AIME to our attendees. It is quite complicated, so very hard to explain in few short minutes. AIME stands for Averaged Indexed Monthly Earnings. So that the Social Security Administration can determine your PIA (Primary Insurance Amount), 35 top years of earnings are needed to compute the AIME. Your Primary Insurance Amount is what is reported on your SS statement as the amount you will receive at a designated age. SS chooses those years with the highest earnings, sums the indexed earning amounts, applies an indexing factor, and then divides this amount by the total number of months in those years, being 420.

Your past earnings are indexed by adjusting them for subsequent economic growth, to put them in terms of today’s dollars. This is done by multiplying your past earnings by an index, that reflects changes in the national earnings for every year since you earned wages until you turn age 60. Included in this compensation are wages, tips and other compensation subject to federal income taxes and reported on your W-2. It 1991, this also started including contributions to deferred compensation plans. Excluded in this amount are certain distributions from plans that are reported as taxable compensation.

So, in thinking this through, you might be thinking what happens to the totals after age 60? These years are not indexed so they are counted at their actual value. How does that affect me? If you earn above the annual ceiling ($127,500 in 2017) the benefits of continuing to work are almost guaranteed, because they will represent a new top 35 year of earnings for you.

My top 35 years of earnings has some zeros included – this was because I chose to stay home with my kids during their younger years. My decision – no regrets, but these zeros are included in my total. So, for each year I work past age 60, if my income is more than zero, that will replace one of the numbers used to compute my AIME and my amount should increase. This could be a BIG DEAL for many of you.

The BIG DEAL doesn’t just stop at your benefit – the higher your benefit amount, the higher any auxiliary benefits will be for your family – Spousal Benefits, Family Benefits, and Survivor Benefits.

Putting a pencil and paper to all these calculations can be daunting to say the least. When we tell you it is complicated, we are not pulling your leg. Missing one of these rules and regulations can cost you income, and that is for the rest of your life.

Professional advice is simply a phone call away at 601-954-0699 or email us at dthompson@pillarsllc.com or visit our website at www.pillarsllc.com. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of 40 years– we have your back on this one! We are Corinth, MS residents, but we service clients nationwide.

People often ask why Roy and I are helping people with their Social Security decisions. It is an easy answer….as we were approaching our own retirement, we started to get things in order (why we suggest clients to contact us 2 years prior to retirement). We visited our local SS office and quickly realized that much more research was necessary before we felt comfortable with our options. The more we researched the topic, we realized that people needed to be educated on their options, as there were many more options than what appeared on our SS statements. We both went back to school and became National Social Security Advisors, and the rest is history. We had no idea how this company would be accepted in the Jackson, MS area, but it quickly took off. We have facilitated over 60 seminars in the last three years and some of those are listed on our website at www.pillarsllc.com. We have also helped hundreds of folks in Mississippi to improve their income stream regarding their SS benefit.

It doesn’t matter to us when you file for your benefit; it does matter to us that you are educated on all your options before making this basically permanent decision. The SS office can give you information on your benefit amount, but it cannot give you advice, or look at your benefits collectively if married. That is our area of expertise.

Some people need to file for benefits at age 62, and we understand that completely. But, they also need to understand some of the consequences of this decision:

1. Reduces your benefit amount by 25-30% depending on your Full Retirement Age.
2. Reduces your Survivor Benefit to your spouse.
3. Eliminates Claiming Strategies that can greatly improve your income stream.
4. Eliminates Delayed Retirement Credits which are 8% per year after Full Retirement Age for a total of a 32% increase from 66-70. You do not have to wait until age 70, in fact this increase is calculated on a monthly basis for increases to your Primary Insurance Amount.
5. Limits income potential – if drawing early, in 2017 you can only earn $16,920 per year without being penalized by Social Security.
6. Interferes with health insurance coverage, if you are no longer working and do not have medical coverage. You must fill this gap until age 65 when you qualify for Medicare.

A long list of what if’s; that is why professional advice is strongly recommended before filing for your benefit. We review all options with you at different ages, to insure complete knowledge of your options, which allows you to make a PLAN. Consider your SS statement not a stop sign, but a green light for improvement in your income potential.

Social Security is only one piece of the Retirement Puzzle, but we consider it the cornerstone or foundation. We see couples weekly that their combined SS benefit through their life expectancy is well over a million dollars…. middle America earners. Don’t let this slip through the cracks!!

Professional advice is simply a phone call away at 601-954-0699 or email us at dthompson@pillarsllc.com or visit our website at www.pillarsllc.com. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of 40 years– we have your back on this one! We are Corinth, MS residents, but we service clients in all 50 states.

Life is a bucket of choices….some are easy, some not so much. But we all must take more seriously choices that will have a lifetime of consequences. Agreed? Well, that is what you are looking at when you decide on your Social Security benefit…. basically, a permanent decision.

We are going to share with you in this article a real situation…..middle America, both spouses working for most of their lifetime, just trying to keep their heads above water, raising those kids and now approaching retirement. They need to get every penny they are entitled to, so that is where Pillars LLC steps in to advise.

FULL RETIREMENT AGE BENEFIT – JOHN ($2193) SUSIE ($1387)   John is 65 and Susie is 63 – their life expectancy is normal, being 85 for John and 88 for Susie.

After talking with this couple, we determined their desire was for one of them to take a benefit and for the other one to maximize their position by collecting the available Delayed Retirement Credits. They were not sure how long they want to do this, but will supplement their income with part-time jobs until they desire to both draw their benefits. Susie is starting to have some medical issues, so they want to explore all options.

PRIMARY – Cumulative lifetime benefit would be $1,023,780.69. This is the best option they have, but does not take into consideration their desires or emotions and is used for comparison purposes. With this option, John would file at age 69.2 months in the amount of $2,734.00. Susie would file a Restricted Application for Spousal Benefits at 66.8 months in the amount of $1,096 and then switches to her benefit at age 70 in the amount of $1831. Survivor Benefit would be $2,748.00.

FULL RETIREMENT AGE – cumulative lifetime benefit would be $922,839.31. both would simply draw their benefits at age 66. Survivor Benefit will be $2,208.00.

DELAYED – Cumulative lifetime benefit is $988,546.73.   Both would wait at draw at age 70. Survivor Benefit will be $2895.00.

***Many people think waiting to age 70 is the best option – not so – as you see in these totals, not using a claiming strategy costs them $35,000 and income stream for 2 years****

ALTERNATIVE ! – Cumulative life-time benefits are $1,021,441.76. John begins benefits at age 70 at $2,895.00 Susie files for a Restricted Application for Spousal Benefits at age 67.6 in the amount of $1,096.00. Susie switches to her own benefit at age 70 in the amount of $1831.00. Survivor Benefit amount is $2,895.00

ALTERNATIVE 2 – Cumulative lifetime benefit is $1,009,986.23. Susie begins her benefits at age 63.7 in the amount of $1,164.00. John files a Restricted Application for Spousal Benefits at age 66.1 in the amount of $694.00. John switches to his own benefit at age 70 in the amount of $2895.00. Survivor Benefit is $2895.00

The early option (at age 62) did not come into play with this couple, as they were past that age when requesting our services. We could have given them literally hundreds of other option combinations, but these were in line with their desires.

Our job as Advisors is to keep the income stream where people are comfortable, and to maximize the Survivor Benefit.  Most people do not realize that with some flexibility and knowledge of the rules and regulations, you can continue with income, improve your benefit and your survivor benefit until you decide to draw. In this real-life case, from simply drawing at age 66 to utilize claiming strategies, the lifetime benefit can improve over $100,000, depending on the option the client chooses, and the survivor benefit improved over $540 per month. Most online calculators will give you Primary, Full and Delayed benefit amounts…..….Pillars LLC gives you the Alternatives.

Your Social Security statement is the starting point for your benefits computation. Make the right choices…..they are basically permanent. Professional advice is simply a phone call away at 601-954-0699 or email us at dthompson@pillarsllc.com or visit our website at www.pillarsllc.com. Roy and Diane are both National Social Security Advisors and Roy is a former CPA of 40 years– we have your back on this one! We are Corinth, MS residents, but we service clients in all 50 states.

Roy and I read probably 10 news articles a day and listen to several webinars a week to keep up to date with news in the Social Security world. Social Security laws are very complicated and we owe it to our readers to keep up to date. We would like to caution you about the things you read on the internet…. some of it is true and some is not…. heard of the term FAKE NEWS……well, we see that as well. In this article we are going to highlight some of the latest news that might interest out readers.

1. Social Security paper statements are AGAIN becoming a thing of the past. Only individuals who are 60 and over, who aren’t receiving benefits and who don’t have a MY SOCIAL SECURITY account online will get paper statements. This measure will net a reduction in processing costs of about $11.3 million in 2017.
2. You can be both a widow and a surviving divorced spouse. Lots of rules and regulations, but if single and of filing age, you need to determine which benefit, at what time, is best for you.
3. Unpaid student loan debt can lead to a smaller Social Security check or Disability benefit. In 2015, the government reduced Social Security checks for 173,000 Americans, up 380% from 2002.
4. The Earnings Limitations test will increase in 2017 to $16,920 per year and in the year you reach Full Retirement Age that limit will increase to $44,880 for the year or $3,740 per month. So, you can work and collect Social Security, but you need to be very aware of these thresholds.

Most readers know that collecting Social Security benefits before Full Retirement Age can lead to a temporary reduction in retirement benefits. But, did you know that it can also reduce payments to family members – such as spouse or minor dependent children – who collect benefits on your record?

5. Your Social Security benefits are not tax-free. Maybe people don’t have to pay tax on their Social Security benefits, however, if you have significant taxable income in addition to your Social Security benefits, up to 85% of your benefits could be subject to tax.

We are planning Social Security education seminars in the Corinth, MS area in February and March of 2017. Please watch for further details or call for dates and times. Roy and Diane Thompson are both National Social Security Advisors and Roy is a former CPA of 40 years. Their guidance and direction will make a difference for you and your family. You may contact Pillars LLC on our website at www.pillarsllc.com or email at dthompson@pillarsllc.com or simply give us a call at 601-954-0699. We are located in Corinth, MS but assist clients throughout the United States.

Women currently represent more than half of all Social Security beneficiaries age 62 and older and two-thirds of all beneficiaries over the age of 85. Because women usually live longer, and because they are more likely to live alone due to widowhood or divorce, they need to pay special attention to the rules and regulations regarding Social Security. Actually, they need to have a professional review of their situation before filing, because that decision to file is basically a permanent decision. Statistics show for unmarried women 65 and older including widows, nearly half of their income is from Social Security benefits, and for elderly unmarried women age 85 and older, 90% of their income is from Social Security benefits.

Available benefits for women are as follows: as a worker or spouse of a worker that qualifies for benefits, as a widow or surviving divorced spouse, as a divorced spouse, or as the caregiving spouse of a worker’s minor or disabled child. The Bi-Partisan Budget Act of 2015 changed the rules in many areas and beneficiaries need to understand which benefit to take first and what the possible consequences would be for each option.

We experienced so many errors in this Survivor Benefits area, we felt it necessary to visit some of the Funeral Homes in the Jackson, MS area to share with them the REAL rules regarding Survivor Benefits. They were very grateful for the education. Widowers are told (not with any harm intended) that they need to look at their Survivor Benefits as soon as possible.   Yes, look at them, but not necessarily take them. You need to weight the options….possibly taking yours first, at the appropriate age, then draw the Survivor Benefit at the appropriate age, or vice-versa depending on the higher income outcome. Tax consequences, Earnings Limitations, and Delayed Retirement Credits should be reviewed to work in your favor to make the best decision. And if you are divorced, were married at least 10 years and are still single, you add a whole new layer to the equation.

Again, ladies heed this warning…..this benefit is for the rest of your life. 10,000 Boomers are retiring each day and 40% regret the decision they made. Please, get this right!!

Roy and Diane Thompson are both National Social Security Advisors and Roy is a former CPA of 40 years. Their guidance and direction will make a difference for you and your family. You may contact Pillars LLC on our website at www.pillarsllc.com or email at dthompson@pillarsllc.com or simply give us a call at 601-954-0699. We are located in Corinth, MS but assist clients throughout the United States.

Some good news to share about Social Security and Medicare:

1. Earnings Limitations in 2017 will increase from $15,720 to $16,920 annually or $1410 per month.
2. In the year you turn Full Retirement Age, Earnings Limitations increase from $41,880 to $44,880 or $3740 per month.
3. The maximum SS benefit in 2017 rises to $2687.
4. Medicare will increase to $134 per month for people 65 and older who do not yet collect Social Security benefits, higher-income retirees subject to a premium surcharge, and those who will be enrolling in Part B for the first time in 2017.

We do not handle Medicare issues, but wanted to include this information to our readers. Also, the cap on SS wages is going to increase from $118,500 to $127,200.

Getting your Social Security benefits right the first time is essential, as it is basically a permanent decision. There are 10,000 Boomers retiring each and every day and 40% regret the decision they made…..don’t find yourself in this category. We have your back on this one!!

Roy and Diane Thompson are both National Social Security Advisors and Roy is a former CPA of 40 years. Their guidance and direction will make a difference for you and your family. You may contact Pillars LLC on our website at www.pillarsllc.com or email at dthompson@pillarsllc.com or simply give us a call at 601-954-0699. We are located in Corinth, MS but assist clients throughout the United States.