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***: Hello I'm ***. Eric: And I'm Eric and we're the annuity guys.
***: Eric, social security is probably the most
overlook and the last minute panic situation;
it's time to sign up. What do we do? Eric: We often talk about social security
being the ultimate annuity and
I think people spend more time debating over which annuity
they would purchase. ***: Right. Eric: Then went to elect social? ***: Because in their
mind is like... "Hey, I just have to choose 62, 65 or whatever."
Eric: Today, tomorrow or the next day. ***: And folks don't realize
the major impact that this social security
has on their overall income plan
in the sense of when to claim and what different claiming strategies;
it can make a hundred thousand plus. I mean, I've seen it as high as a quarter
of a million dollar
difference in total amount received from social security.
Eric: Right and I always laugh because when we start start talking about annuities,
we start talking about things like
you've got eight percent roll-up guarantee and
"ohh, that's great, where can get on of those?" Well, you can get one of those with social
security
***: How about with the big cost of living increase on it? Eric: You get a COLA enhancement
and those are some of the components that go into social security that people
really don't think of
when they're starting the new income planning. ***: Right. Eric: And when they're working
with somebody that
takes all aspects into consideration like a good planner should,
knowing those components and knowing those guaranteed increases of
eight percent each year, they can make a big difference.
***: It makes a big difference and if you just compare
social security to commercial
grade annuities, you'd have about a 40 percent discount on social security when
you consider what you paid in
for what you get back. And that again you know, it's pretty controversial but it's
uncle sam, his generosity and
taking from this group to give to that group And so,
we did not make the rules, but we've all paid into it.
All of these folks, all of you folks who have paid into Social Security
and to get what social security is supposed to pay you back
is pretty important. Eric: All I can just say knowing the rules
and the funny thing is social security has some more rules other than just
on and off. There are these terms like file and suspend... ***: Restricted
application
and deaming. Eric: And if you're starting to go "What the heck are they talking
about?",
then this is where you need to do some more advanced planning because these are
all strategies that
like *** alluded to earlier, by utilizing the strategies they
could be a quarter million dollars
additional lifetime income to you and your spouse. ***: Right and this equates into
maybe a bit different stages of a thousand to two thousand, even more per
month.
And especially when we start... now we start to really get complex when we start
talking about the spousal benefit, the survivor benefit -
these type of things - and we start factoring in that cost-of-living
adjustment;
and what happens if inflation really kicks in. So, there's so many factors
that are involved here and we have to also hit on this point and that
is... that
Social Security is a legislated, at best it would be a legislated annuity.
It doesn't have the contractual guarantees so
what uncle Sam giveth... Eric: Taketh away.
So, can we guarantee that by the end of this video that it would still be in
place as we're describing it? No. ***: It's a probability.
Eric: The likelihood is very good. ***: Yes.
Optimizing social security is probably one of the most important
things you can do;
very central to your overall income planning.
It doesn't stand alone so where you actually optimize your social security
to say "this is my absolute optimum best benefit I could get from
social security"...
you may not want to go with the full optimum benefit because it may not fit
into the rest of your income plan. Eric: It's all about strategies.
In this case. it is a little bit hypothetical because you have to kind of
anticipate
your life span to really be making the best decisions possible as well. ***: You do. Eric:
So, all things that coming to par about overall
great retirement plan. ***: Yes. All things considered folks; spend some serious time
optimizing Social Security, understanding social security
and then work it, interweave it into an overall
income plan