Social Security is more complicated than before the passage of the Bi-Partisan Budget Act of 2015. We know, as this is what we do each day. There are not just three choices as stated on your Social Security statement, there are literally thousands of different options and ways to file for your benefit. Unfortunately, many advisors and consumers have fallen into the myriad of misinformation traps that exist around Social Security planning.
People tell us their financial planning software includes an option called Social Security. These cost effective software programs have logic flaws and gaps that can be detrimental to making the best decision for you and your family. And worse than that, the free options are about as good as their cost…..FREE!! One well-known tool defaults to age 85 or 95 – for life expectancy and that is it. It cannot be changed, so if your client does not fall into these categories, all the best advice you are receiving is WRONG. The software choice must include all 2,728 rules and regulations, plus the thousands of exceptions to the rules to be effective. We searched, researched, tried and used many different software programs until we settled on the one we use for our clients.
Considering that lifetime Social Security benefits for most of our married clients is well over a million dollars, you want the best advice you can get before making this basically permanent decision. This means considering every option and analyzing the tradeoffs. Pillars’ customized reports are tailored to each individual set of circumstances, and every case is unique. You can’t fool the computer per se, but you can create (with some software programs) situations for your clients that take into consideration their wishes, dreams and desires for retirement.
Many software programs are not capable of calculating benefits for best use of the Survivor benefit, Disability clients, Spousal Benefit, Family Benefit maximums, and the list goes on. We are just cautioning our readers……don’t be fooled by what you see on the Internet…..you are the one that will suffer with a bad decision.
By Laurence Kotlikoff, PBS Newshour
“Unfortunately, Social Security has some very nasty “gotcha” provisions, so if you take the wrong benefits at the wrong time, you can end up getting a smaller benefit forever.”
“Getting this right on your own, is neigh impossible”
“Social Security’s online benefit calculators either don’t handle or don’t adequately handle spousal, divorcee, widow, widower, children, and Restricted options.”
Just looking out for our readers. Trust us….this is a BIG DEAL!! Contact us at 601-954-0699 or dthompson@pillarsllc.com or visit our website at www.pillarsllc.com. Roy and Diane are both National Social Security Advisors and Roy is a retired CPA .
