In this timely episode, Joe and Al bring to attention the deadline to apply for two Social Security strategies (file & suspend and restricted application) that are being eliminated by Congress this year. If you qualify for either of these strategies, take advantage before they’re gone for good.
In this special episode of “Your Money, Your Wealth,” your hosts explain the history and importance of Social Security, as well as give you a quiz to sum up everything you’ve learned. Get ready for Social Security 101.
0:50 “In regards to claiming your Social Security benefits, you’ve got to be a little savvy. There are many, many combinations to claim, but unfortunately some very important moves are going away. That’s today’s financial focus”
4:37 “This is really important for you to figure out the best strategies because this could be the majority of your income”
5:24 “Every year that you wait [to claim your benefit], you get a lot more monthly income”
9:39 “File and suspend is a strategy in which one spouse, typically the higher earner, files and suspends a claim for benefits to allow delayed retirement credits to accrue”
11:27 “If you turned 62 by 12/31/15, you still can do a restricted application”
15:25 “True or false? You must claim Social Security benefits as soon as you stop working”
17:09 “Let’s go to question number three: what’s the minimum number of years to work in order to be eligible for Social Security benefits? No minimum, five years, ten years or no minimum?”
20:37 “The longer you work at a higher salary, the more [Social Security] benefits you’ll receive”
21:28 “Here’s the order of savings: you want to go to the 401(k) if you have the match; start there first. Let’s say they match you 4%, you go 4% to the 401(k)—get that free money. Once that match is done, you go to the Roth IRA and contribute $5500. Once the $5500 is filled you go back to the 401(k); you can max that out to $18,000. Once that’s done, you want to take a look at saving outside of retirement accounts. That’s the order”