ABOUT THE GUESTS

mary beth franklin
ABOUT Mary

Mary Beth Franklin is a contributing editor for InvestmentNews and is a nationally recognized expert in Social Security claiming strategies.  Formerly a Capitol Hill reporter at United Press International and retirement and tax editor at Kiplinger Personal Finance, Mary Beth has been working in the finance industry for years.  She frequently speaks and writes about current research on [...]

ABOUT HOSTS

Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine
ABOUT Alan

Alan Clopine is the CEO & CFO of Pure Financial Advisors. As CEO he currently leads Pure Financial Advisors along with our executive team. As CFO he is responsible for the financial operations of the company. Alan joined the firm about one year after it was established. At that time the company had less than [...]

Published On
October 31, 2015

There are major changes to Social Security claiming strategies that were recently passed by Congress. Social Security expert Mary Beth Franklin joins the show (0:40-19:20) to explain what you need to know about this latest stealthy attack on your retirement. She explains in detail the elimination of the file and suspend strategy, who this affects and how filing for spousal benefits could change. Joe and Al also ask Mary Beth about what’s on the horizon for Medicare and what actions retirees should take from here.


0:40 Start of Interview with Mary Beth Franklin

1:19 “You probably know that there’s been some big legislation in Congress this past week to keep the government from running out of money…the only problem was there were a lot of sneaky things in it that no one knew about”

1:36 “Some of the good things for retirees are the Medicare premium increase for 2016 will not be as bad as we thought. The other good news is disability benefits will not run out next year in the middle of a presidential election”

1:51 “The bad news is the tradeoff was that Congress decided to change some very important claiming rules for future beneficiaries, and only some people will be able to take care of these claiming strategies and they have to act fast—depending on when you were born, you may not have any options”

2:17 “I have covered Congress for 30 years, and I have never seen anything like this…this came out of nowhere”

2:47 “Let me explain what my magic claiming strategies are for Social Security, when they’re going away and who can still use them”

3:40 “If you’re 66 now or will turn 66 roughly by May 1st, 2016, you will still be able to file and suspend to trigger benefits through your family. After that deadline, you can still file and suspend so your benefits grown, but nobody can collect on your record while your benefits are suspended”

5:06 “No one who is currently collecting a benefit will lose it, but the rules will change going forward”

5:39 “The second part has to do with filing for spousal benefits only”

6:29 “If you are 62 years old by the end of this year (December 31st, 2015) you retain the right to collect spousal benefits only when you turn 66”

7:10 “A deemed filing means when you file for benefits, you are filing for all benefits you’re entitled to, and they will pay you only the higher of the two. So for many married couples, the spousal benefit will go uncollected and completely to waste”

12:18 “If you postpone collecting your benefits beyond your full retirement age up until 70, you will still be able to earn an extra 8% per year; that has not changed. The difference is your family can’t collect on your benefits while you delay”

12:39 “The other thing that has not changed is if you are a surviving spouse (your husband or wife died), you are entitled to survivor benefit”

15:52 “Because inflation has been so low, there will be no cost of living adjustment in Social Security benefits for 2016; the benefits will remain flat”

17:32 “If you are enrolled in Medicare now and have been receiving Social Security and your income is under $85,000 if you’re single or $170,000 if you’re married, you will continue to pay the $105 a month next year”

18:13 “People whose income is above those levels are going to pay a lot more for Medicare next year”

19:20 End of Interview with Mary Beth Franklin

27:00 “You can’t do the spousal benefit and let your benefit continue to grow”

30:44 “Get your charitable house in order. If you claim a charitable deduction of more than $500 in donated property, you must attach a Form 8283”

35:04 “Make up for a tax shortfall with increased withholding”