Social Security: How to get $250,000 More

Matthew Illian

Marotta Wealth Managementwww.eMarotta.com

Social Security Quiz

1. Social Security Income is never taxed □ □

2. You should always file early for SS (age 62) □

□

3. Earned income can penalize your Social Security income before age 66

□ □

4. You need to have worked to get SS. □ □

5. Social Security paychecks keep up with Inflation □

□

True or False

-25% +32%

AGE: 64 AGE: 62Basic Benefit

(AGE 66): $2300Basic Benefit (AGE

66): $800

$800 X 75% = $600

Everything you need to consider beforeFiling for Social Security

Everything you need to consider beforeFiling for Social Security

$2300 X 35% = $805

Everything you need to consider before filing for Social Security

$2300 X 100% = $2300

Primary Income

HomemakerAGE: 61 AGE: 60

Basic Benefit (AGE 66): $2300

Basic Benefit (AGE 66): $400

Option 1: Primary Income at 62

$688,620

Option 2: Primary Income at 70

$724,032

Option 3: Homemaker at 66 and Primary at 68

$774,288

Primary Income

62 63 64 65 66 67 68 69 70

62 -$85,668 -$80,148 -$70,366 -$62,101 -$56,928 -$48,636 -$44,760 -$45,300 -$50,256

63 -$82,908 -$77,388 -$61,546 -$53,731 -$49,008 -$41,166 -$37,740 -$38,730 -$44,136

64 -$73,552 -$68,032 -$52,189 -$37,865 -$33,979 -$26,975 -$24,386 -$26,214 -$32,458

65 -$66,955 -$61,435 -$45,593 -$31,268 -$20,035 -$13,846 -$12,072 -$14,714 -$21,773

66 -$62,208 -$56,688 -$40,846 -$26,521 -$15,288 -$936 $0 -$3,480 -$11,376

67 -$76,008 -$70,488 -$54,646 -$40,321 -$29,088 -$14,736 -$4,800 -$7,896 -$15,408

68 -$89,808 -$84,288 -$68,446 -$54,121 -$42,888 -$28,536 -$18,600 -$13,080 -$20,208

69 -$103,608 -$98,088 -$82,246 -$67,921 -$56,688 -$42,336 -$32,400 -$26,880 -$25,776

70 -$117,408 -$111,888 -$96,046 -$81,721 -$70,488 -$56,136 -$46,200 -$40,680 -$39,576

Option 4: Primary Income “File and

Suspend”

$785,164

1. Primary Earner Files at 66 and “Suspends” Benefit

2. This makes Secondary earner “eligible” for spousal benefits

3. Primary Earner Re-files at 704. Secondary Earner keeps lower

spousal benefit even though Primary Earner has raised their personal benefit.

“File and Suspend”

Charles “Chuck” Schwab

Mrs. SchwabAGE: 66 AGE: 62

Basic Benefit (AGE 66): $1,930

Basic Benefit (AGE 66): $1,193

Option 1: Both File at 62

$653,836

Option 2: Chuck at 70 and Mrs.

Schwab at 64

$754,620

Option 3: FAASF

$782,172

1. Lower wage earner files.2. Higher wage earner files for

spousal benefits at age 66.3. Higher earner re-files at 70.4. Surviving spouse receives higher

benefit amount.

“File As A Spouse First”

1. Must have been married 10 years2. Must not be remarried.3. You can claim even if other spouses

are claiming.

Divorced Spouse Benefits

Taxable Portion of Social Security

MAGI = ½ of SS Income + Income from all sources

Filing StatusOver Max Amount Taxed

Single, HOH 25,000 34,000 50% over $25k34,000 Unlimited 85% over $34k

MFJ 32,000 44,000 50% over $32k44,000 Unlimited 85% over $44k

MFS Any 85% over $34k

CONCLUSIONS

1. Joint Income Maximization vs. Individual Income Maximization

2. Social Security is very complicated

3. Consider Longevity Insurance

R E T I R E M E N TR E T I R E M E N T

Social Security: How to get $250,000 More

Matthew Illian

Marotta Wealth Managementwww.eMarotta.com