Maximizing Social Security & Retirement Income

Preliminary Thoughts

• Social Security is very confusing
• There are no do-overs
• Mistakes are costly

Retirement Income Structure

Social Security is only one part of retirement income planning.

House Keeping

• Silence Phones
• Restrooms
• Hold Questions

Notice to All Attendees

Social Security Simplified and today’s guest speaker(s) are not affiliated or endorsed by the Social Security Administration or any other governmental agency.

More About Your Host

• Unified Legacy Advisors was formed in 1995
• Family owned and operated
• We are a referral based asset protection and retirement services firm
• Better Business Bureau A+ rated
• 3,000+ clients

MIKE NEBEN

• Grew up on a farm in central Nebraska
• Formed ULA in 1995 to focus on the needs of retirees and those planning for retirement
• Developed a network of trusted advisors
• 12-year Top of the Table MDRT advisor – top 1% of financial professionals in the nation

SETH NEBEN

• Raised in Lincoln, NE
• Graduated from UNL with degrees in Finance and Economics
• Started career over 7 years ago at Ash Brokerage out of Indiana
• Qualifying member of the Million Dollar Round Table (MDRT)
• Member of the National Ethics Association

BLAKE NEBEN

• Grew up in Lincoln, NE
• Graduated from UNL with a degree in Business Communication
• Started career over 10 years ago working with DMI out of Boston, MA.
• Qualifying member of the Million Dollar Round Table (MDRT)
• Member of the National Ethics Association

Today's Workshop Agenda

Our workshop will be approximately 1 hour long and we will cover 5 main topics that will help you better understand Social Security & Retirement Income:

1. Understanding the Basics About Social Security

2. About the Social Security Planning Process

3. Unique Planning Strategies

4. Sample Report Showing How to Maximize Your Benefits

5. Threats to a Secure Retirement

Understanding the Basics About Social Security Benefits

Common Questions About Social Security Benefits

When Can I File For Benefits?

Min/Max Ages

• Born After 1937
• Minimum Age 62
• Maximum Age 70

Full Retirement Age (FRA)

• Born 1943-1954
• FRA Age 66
• See Chart at SSA.gov

Should I file right away?

How Are My Benefits Calculated?

Earnings History

What if I don't have 35 years of earnings history?

• Missing years replaced with zeros
• Lowers benefit amount

How Are My Benefits Calculated?

Three "Bend Points"

• 90% of First $885
• +32% of $885 - $5,336
• +15% Amount Over $5,336

Primary Insurance Amount (PIA)

• Benefit Amount at FRA

Very Confusing

Designed to replace lower

earners income

How Does COLA Impact Benefits?

COLA stands for “Cost of Living Adjustment” and is used to protect your Social Security Income from the effects of inflation.

COLA Averages

• 1975 - 2016: 3.8% Per Year
• 1990 - 2016: 2.4% Per Year

We use rate of 1.5%

COLA is a very good thing!

COLA Example

COLA stands for “Cost of Living Adjustment” and is used to protect your Social Security Income from the effects of inflation.

Starting Income

• $2,000/month
• Starting in 1990

Ending Income

• $3,729/month
• Ending in 2016

COLA Example

Is the rest of your retirement income keeping up with inflation?

Can I Work & Collect Benefits?

Example: Full Retirement Age (FRA) = 66 & 5 Months

Example

Will My Benefits Be Taxable?

Provisional Income = ½ Social Security Benefit + AGI + Tax Exempt Interest

About the Social Security Planning Process

Make Sure You Have All the Facts Before Starting Social Security

What to Consider When Planning?

Your Complete Wage History

Desired Retirement Age

Estimated Life Expectancy

Inflation & COLA

Other Sources of Income

• Qualified Accounts
• Non-Qualified Accounts

*Social security won’t provide all of the income you

will need in retirement

Steps in the Planning Process

Finding Your Benefit Information

Social Security Website

SSA.gov

• Create Account
• Research Earnings
• View Benefits
• Sample Statements

Longer Wait = More Benefits?

Full Retirement Age (FRA)

• Benefit $2,000/month
• $24,000/year

Minumum Age - 62

• Benefit $1,500/month
• $18,000/year

Maximum Age - 70

• Benefit $2,640/month
• $31,680/year

*COLA + Delayed Retirement Credit

What is Break-Even Analysis?

A common strategy used to determine the cost of taking benefits early or advantage to taking benefits later.

Breaks down when we begin planning for married couples.

Unique Planning Strategies

Social Security Planning Strategies

Spousal Benefits

Spouse must be married to worker for at least one continuous year before applying for benefits.

The spouse must have turned 62 by Dec. 31, 2015

The worker must be entitled to benefits and have filed for benefits.

If spouse files for benefits at FRA, her benefit will be 50% of husband’s PIA. If she applies at age 62, her benefit will be 35% of his PIA.

No Special Filing Strategies

Both Spouses File For Benefits (Ages 62-70)

No “Switching” Strategies

Age to Start Benefits

• Full Retirement Age 100%
• Less Than FRA (~Ages 62-65)
• Actuarial Benefit Reduction
• Older Than FRA (~Age 67-70)
• Delayed Retirement Credits

Filing Restricted Application

File for Benefits at FRA

Payments are Restricted

• Amount Based on the Remaining Spouse’s Benefit
• Delayed Retirement Credits
• 8% Per Year Until Age 70
• 132% of FRA Benefit at Age 70

1st Spouse Must File for 2nd to be Eligible for Restricted Filing

Example: My Wife & I

Combining Strategies - Summary

Let's assume we have a married couple:

9 Years Where the Husband Can File – Age 62 to Age 70

9 Years Where the Wife Can File – Age 62 to Age 70

X 3 Different Filing Strategies

243 Different Annual Filing Combinations

On a monthly basis, that’s over 2,900 combinations!!

Lottery Ticket For Your Retirement Income?

No Do-Overs!

How to Use a Social Security Report to Maximize Benefits

Sample Report:

How to Maximize Your Benefits

Case Study: Joe & Deborah

Joe is 63 Years Old

• SSI Benefit at FRA is $2,175
• Life Expectancy is 85 Years

Deborah is 61 Years Old

• SSI Benefit at FRA is $1,145
• Life Expectancy is 92 Years

They need a Monthly Income of $5,400 from all sources

Take right away vs. How much is at stake vs. Utilizing a strategy

Case Study: Joe & Deborah

How can they maximize SSI Benefits?

If they file immediately…

• No Special Filing Strategies
• Total Lifetime Benefits $1,253,752

The recommended strategy…

• Joe Files Restricted, Deborah Files
• Total Lifetime Benefits $1,654,224

Example

Case Study: Joe & Deborah

Take a Closer Look...

Increase in Lifetime Benefits

• $400,522 or 32% More Income

Step #1 – Maximize Benefits

Step #2 – Close The Gap

Case Study: Joe & Deborah

Take a Closer Look...

Increase in Lifetime Benefits

• $400,522 or 32% More Income

Income Summary

• How Much Will SSI Pay
• What is Your Income Gap?
• Steps to Close the Gaps

Social Security vs. Desired Retirement Income

DEMO

Frequently Asked Questions

1. Am I going to be okay?

2. How do I protect my assets from a Long-Term Care event?

3. What if I’m not ready to retire?

4. How does Unified Legacy Advisors get paid?

5. What if I already have a financial advisor?

Phases of Financial Lifetime

Traditional Financial Advisors are Growth & Accumulation Specialists

At Unified Legacy Advisors, we are Preservation & Distribution Specialists

The Problem

The economic times we live in today are radically different from anything we’ve experienced in our lifetime...

Record stock market highs

Low interest rates - projected to increase

How does this impact my retirement nest egg?

Roger G. Ibbotson, CIO of Zebra Capital Management

Social

Security

401k

Earned Income

Personal

Savings

Brokerage

Accounts

Checking

Account

Accumulation

Phase

PAY EXPENSES

Social

Security

401k

Earned Income

Personal

Savings

Brokerage

Accounts

Checking

Account

Distribution

Phase

PAY EXPENSES

Sequence of Returns: Accumulation Phase

When saving for retirement, the order in which the rates of return are realized does not affect the amount the portfolio accumulates. It’s the total return over time that matters.

Sequence of Returns: Distribution Phase

In the distribution phase of retirement, the order in which the rates of return are realized can dramatically affect your portfolio.

JUST DON'T

LOSE THE MONEY!

Workshop Part II

Printed strategy to maximize your Social Security Income

Comprehensive retirement income game plan

Strategies to reduce taxes in retirement (RMDs)

Medicare Planning

Information on how to guarantee that you WILL NOT lose money and keep it in play for solid rates of returns

Our Promise

We will listen to you carefully and show you the options that will produce the results you want, rather than give an opinion based on what we think you should want.

We will always put your best interest first, even if that means referring you to someone who can serve you better, or letting you know that we can’t help.

We will never apply any “sales pressure” or try to rush you to make a decision.

We will find out what’s important to you and make you aware of all of your options.

We will advise you of the benefits and features of each option, as well as the drawbacks.

We will always provide you the very best service long after any transactions are completed.

We help our clients simplify their lives and organize their financial affairs.

Location of Important Documents

Phone: (402) 809-2404

Email: mike@proULA.com

seth@proULA.com

blake@proULA.com

Address: Unified Legacy Advisors

9240 Andermatt Drive, Ste. 2

Lincoln, NE 68526