Social Security income can make or break clients’ plan

Social Security income can make or break clients’ plan
Social Security is a major source of income for many retirees, so it’s vitally important that they use the claiming strategy that will maximize their retirement benefits, according to this article on Kiplinger. They should consider delaying their retirement and include their spousal and survivor benefits in their claiming strategy. Clients should avoid filing for their benefits while still employed, and claim their retirement benefits only when they have used up all their taxable income sources, as their benefits could be taxed if their taxable earnings reach a certain threshold.

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Social Security: Is it really in danger of collapse?
Future retirees can still expect to receive Social Security benefits even if the program's trust funds run out by 2034, writes an expert on USA Today. Some of them can expect bigger benefit reductions than others, depending on when they intend to file for their benefits. For example, boomers aged 65 and older and 55-year-olds aiming for retirement at 65 are less likely to get a benefit cut by the time they retire. However, a cut is very likely for clients who are around age 50, particularly for those between the ages of 35 and 45, who can see a 25% reduction in benefits.

How to avoid outliving retirement savings
A 65-year-old couple who has considerable retirement resources may want to have the spouse with the higher benefit delay his or her Social Security benefit while the other one with the lower retirement benefit start collecting the benefit when they reach their full retirement age, according to this article from the Los Angeles Times. This strategy will enable them to maximize their benefits, as it will allow the higher benefit to continue to grow until 70.

How to make the most of charitable donations
Charitable giving can be a time for clients to save if they know the strategies, according to this article on CNBC. For example, instead of exchanging gifts clients may want to donate the money to a qualified charity. They may also want to donate valuable personal items that they don't use anymore, such as toys and clothes, to hospitals, homeless shelters and other charitable organizations. Consumers have the option to donate while shopping online, and while investors and retirees may opt to make charitable contribution directly from their tax-deferred retirement account or donate appreciated stock to take advantage of the tax breaks.

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