by C.J. Miles
AMAC’s Certified Social Security Advisor\
QUESTION: I will be 66, or full retirement age, at the end of the year. My wife is 63. We are both still working but we’ve had a lot of discussions about whether or not we want to keep working. I’m on Medicare now so I don’t need the insurance, but I have twice as much income as she does, and both of our income levels are more than a Social Security benefit. We keep going back and forth discussing how we want to retire but not knowing if it’s the right thing to do. When we try to read one of those books or go on a website to get facts, we just get more confused. How do we know what to believe in order to make the right decision for us?
ANSWER: I frequently come across people who ask why a maximizing strategy is causing them complications. For example, they see the phrase “file and suspend” multiple times and then they try it themselves and then the Social Security office says no, they cannot do it. This is simply because that strategy is not available to everyone – it only works under certain circumstances. However, there are other strategies available to people who cannot use file and suspend.
So how do you know if the advice you receive is factual? First, you want to make sure you are speaking to someone who is very knowledgeable about all your options. If someone asks me a question I am unsure of, I make a point to tell them I would like to do more research to give them correct information because I do not want to guess. If someone is making a guess, this is not someone you want advising you on your financial decisions.
If you decide to use a CFP (Certified Financial Planner), make sure the firm specializes in either retirement planning and/or Social Security. Same is true with a CPA (Certified Public Accountant). These professionals are excellent at what they do; however, they have such a broad range of financial knowledge, it would be best to choose someone who specializes in what you are looking for. Think about it this way – if you were applying for Social Security Disability and needed a lawyer, would you choose a Divorce Lawyer or a Disability Lawyer? The same applies here.
If you are still worried, come up with a test question. Research a very difficult question and use this as a test question when seeking advice and see how the advisor handles it – Do they know the answer right away? Do they guess the answer? Do they admit they don’t know it? Do they offer to find you the answer? This method will provide you with some comfort regarding the kind of advisor you are dealing with.
After you seek answers, always remember, the decision you make is yours (and your wife’s) alone – not your friends’, families’, or advisor’s. It is your money and your life. And do not forget – if you change your mind, there is always the option of “withdrawal of application.” There are some drawbacks, such as paying back the money (interest free), it has to be done within one year of initial application, and it is only available once per lifetime. However, it is available if needed.
The good news here is that the longer you wait to get the answers you want and make a decision, your benefits are growing larger.
To ask a question about Social Security contact AMAC’s C.J. Miles at cmiles@amac.us.
The information contained in this article is for general information purposes only. Every individual’s situation is unique and you should make your benefit choices according to your personal needs. Furthermore, AMAC and its affiliates do not provide legal or accounting services. Please contact a licensed professional for such advice.
