Nick BloomfieldPresident

GlidePath Financial Solutions, LLC

Social Security….Need to Know Information to Maximize your Social Security Income Benefit

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DisclosureThe information and strategies we will share during this presentation are believed to be accurate.

To get specifics about your particular situation, it is recommended that you speak directly with the Social Security Administration offices near you.

The information shared is based upon the current rules and regulations of the Social Security system. It is VERY possible that these rules may change in the future.

This seminar presentation is intended for general information purposes only and does not and is not intended to provide specific investment advice or recommendations for any individual.

The views expressed are those of the presenter and may not necessarily reflect those held by (BD). Material presented is believed to be from reliable sources GlidePath makes no representation as to it’s accuracy or completeness. Concepts

and ancillary programs described in this seminar are only available exclusively through GlidePath Financial Solutions, LLC.

This event is not sponsored by, or affiliated with, the United States Social Security Administration. 2

Table of Contents

• Introduction ………………………………………………………..…………..7

• Is the system solvent?.........................................................8

• What do I need to know before I apply for benefits?.......15

• Income Benefit Calculations……………………………………………21

• Spousal and Survivorship Benefits……………………..…..……..28

• Maximization Strategies…………………..................................36

• Schedule time w/ Nick………………………………………………..46/47

• Closing………………………………………………………………………..49

• About the Author………………………………………………….......51

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A friendly reminder- there’s about 45 pages of in- depth info here. If you have questions or want to schedule some time to chat so I can point you in the right direction, Click Here No strings attached.

• If you’d like to discuss any of this material in further detail, that’s what we are here for

• We offer entirely complimentary phone consultations, throughout the day, entirely at your convenience.

• Simply click the above link and schedule an appointment with our online calendar.

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IS NO DIFFERENTTHAN BUILDING

BLOCKS.

Social Security Income Planning

WE BELIEVE IT MUST

BE COORDINATEDWITH ALL OTHER

SOURCES OF YOUR

RETIREMENT INCOME

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UNDERSTANDING

Three Legged Retirement Stool

RETIREMENT

INCOME

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• Was established in 1935 by President Franklin D. Roosevelt.

• Provides Guaranteed Lifetime Income to Qualified Retirees.

• Provides Spousal, Survivor, and Disability Benefits.

• Has the potential to keep pace with inflation.

Social Security

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Items We Will DiscussAbout Social Security

1. Will it be there for me?2. What should I know or do BEFORE applying for Social

Security?3. Who is eligible for Social Security?4. How is my Social Security income calculated?5. How do spousal and survivor benefits work?6. When should I take Social Security?7. Are there strategies for maximizing my income?8. What other items should I consider as it relates to my

social security?

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Question 1

Will Social Security be there for me?

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Social Security

Nothing Left?

What if I wait to begin collecting

Retirement Income Benefits

and there is

Q

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Challenges Facing Social Security

Source: Social Security Administration, “2011 OASDI Trustees Report”

YEAR RATIO

• Life expectancies are climbing.

1960 5.1 to 1

2009 3 to 1

2030 2.1 to 1

• Ratio of workers to beneficiaries is shrinking.

Workers to Beneficiaries

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Social Security Trust Fund

According to the 2012 Trustee Report, the Social Security Trust Fund:

1. Has about $2.7 Trillion in Reserve2. Is managed by the Treasury Department3. Holds all Social Security Accumulated Assets

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Social Security Trust Fund2011 Social Security Revenue and Earnings

• Workers and Employees - $564 Billion

• Fund Reimbursements - $103 Billion

• Net Interests -$114 Billion

• Taxation on Benefits - $ 24 Billion

• Total Earnings -$805 Billion

$805 Billion - Income

$736 Billion - Paid Out

$69 Billion - Surplus

Source: Social Security Online Trust Fund Data

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Social Security Trust Fund$2.7 Trillion in Reserve

Source: 2010 OASDI Trustees Report

100%MonthlyBenefit

2033

2013

2083

78%

75%

PROPOSALS1. Raise Social Security Tax Rates2. Raise earnings limit subject to Social Security Tax to $190,000 [Currently $113,700]3. Raise Full Retirement Age (FRA) to age 69 [Currently age 66]

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Great News for Baby Boomers!

For a 55 year old today,Retirement INCOME Benefits

ARE NOT LIKELY TO BE AFFECTEDby Social Security reform.

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Question 2

What should I know or do BEFOREapplying for Social Security?

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What should I know or do BEFOREapplying for Social Security?

Verifying your earnings history. Estimate your benefits at different ages. Refer to your SS statement. Visit www.SSA.gov and use the benefits estimator

calculator. Evaluate strategies to maximize your benefits. Consider and plan out ALL of your retirement income

sources.

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Who is eligible for Social Security?

Be an employee or a self-employed worker who has earned at least 40 credits…

Generally looked at as 40 quarters, or 10 years. To earn a credit, you must make a certain amount of

money (at least $1,120 per “credit”). Be at least age 62. Age 62 is currently referred to as “early retirement.” Your full retirement age depends upon the year you

were born (more on this in a moment).

Source: www.ssa.gov

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Who is eligible for Social Security?

Certain members of your family may be eligible for family benefits based on your record.

A spouse who is 62 years of age or older. A spouse who is under 62 years if he/she is caring for a

child under 16 years or disabled. Unmarried children under 18 years. Unmarried children age 18-19 (if they are full time

students in high school).

Source: www.ssa.gov

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Who is eligible for Social Security?

Certain members of your family may be eligible for family benefits based on your record.

Children of any age, if they are disabled from a disability that started before age 22.

A divorced spouse, unmarried, age 62 or older, and married to you for at least 10 years (payments to a divorced spouse are not counted toward the family benefit limit).

Source: www.ssa.gov

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Full Retirement Age

Source: www.ssa.gov

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Question 4

How is my Social Security Income calculated?

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How much will you receive?

Benefitsdepend on:

• How much you earned over

your working career

• The age at which you apply

for your benefits.

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How Your Benefit is Calculated

Formula includes your highest 35 years of earnings (Any missing years are counted as zeroes in the average) to find the AIME.

AIME (Average Indexed Monthly Earnings) goes through a calculation to determine your PIA (Primary Insurance Amount).

Your PIA is the amount you will receive at full retirement age (remember the chart we just showed).

Your benefit will be calculated according to your PIAand any reductions or enhancements based upon what age you elect to retire.

Source: www.ssa.gov

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• The first $761 of your AIME is multiplied by 90%

• The amount between $761 and $4,586 is multiplied by 32%

• Any amount in excess of $4,586 is multiplied by 15%

AIME Avg. Indexed Monthly Earnings

Source: www.ssa.gov

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ExampleMeet Ronald Retiree Ronald was born in 1946.

His AIME (Avg. Indexed Monthly Earnings) are $6,500

The formula is applied:

$ 684.90 [$761 x 90%]$1,224.00 [$4,586 – $761 = $3,825 x 32%]$ 287.10 (Excess) [$6,500 – $4,586 = $1,914 x 15%]

$2,196.00 Total IPA

HOW COMPLICATED IS THAT?!

This example is for illustrative purposes only, results illustrated will differ from client to client.

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What if Ronald wanted to applyfor early benefits?

BENEFITS DEPEND ON:• How much you earned over your working career.

• The age at which you apply for benefits.

This example is for illustrative purposes only, results illustrated will differ from client to client.

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But...What if he applied AFTERreaching his full retirement age?

Ronald would earn delayed credits.*ONCE YOU REACH AGE 70, YOUR DELAYED CREDITS NO LONGER DECREASE.

This example is for illustrative purposes only, results illustrated will differ from client to client.

Please note: cost of living adjustments are not included. These figures are hypothetical only.

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Question 5

How do Spousal and Survivor Benefits Work?

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How Do Spousal Benefits Work?

The spousal benefit is exactly ½ of the primary worker’s benefit.

If the spouse qualifies for SS on his/her own record, they will receive the higher of their own benefit or the spousal benefit.

Spouse must be at least age 62 for the reduced benefit, or 66 for their full spousal benefit.

A spouse can NOT earn delayed credits on spousal benefits after age 66.

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Example

Dave & Diane Dave’s benefit is $2,200. Diane’s benefit (on her own earnings

history) is $900.

Diane’s spousal benefit is 50% of Dave’s benefit: $1,100.

Therefore, Diane will receive the higher of the two which is $1,100.

KEY POINT: Dave (the primary worker) must have applied for benefits in order for Diane to receive any spousal benefits. However, he can suspend his payments after he applies in order to build delayed credits if over FRA). We’ll discuss this in a moment.

This example is for illustrative purposes only, results illustrated will differ from client to client.

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Understanding Survivor Benefits

When a spouse dies…

• The surviving spouse receives the

higher of the two benefits. The

lower of the two goes away.

Basic Rules

• Except in the case of accident,

marriage must have been for at

least 9 months at date of death.

• Surviving spouse must be at

least age 60 for reduced

benefits.

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Something to ConsiderLet’s look at an example…

• Dean and Margaret have been married for 35 years.• Margaret’s benefit is $2,100/mo & Dean’s benefit is

$1,500/mo.• Margaret passes away.• Dean will receive the higher of the two benefits

[$2,100/mo.]• He will no longer receive his benefit of $1,500/mo.

REPRESENTS A LOSS OF $1,500/mo. IN HOUSEHOLD INCOME!

This example is for illustrative purposes only, results illustrated will differ from client to client.

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1st Tip for Getting the Most from Social Security

(Statistics suggest that those that celebrate the most amount of birthdays live the longest)

Live a Long Time!

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Ready for Some Real Tips?(That you have some control over)

Confirm your earnings record and explore whether or not it can be improved… Do you have missing years? Are you certain it is accurate?

Avoid garnishments that reduce your benefits… SS benefits are GENERALLY protected from debt

collection actions. This is true except in the case of:o Back Taxeso Outstanding Federal Student Loanso Child Supporto Alimony

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More Tips(That you have some control over)

Consider structuring income to reduce or eliminate taxation on your benefits.

If you’re a single filer, you will have to pay taxes on your SS benefits if your total income is more than $25,000.

If you’re a joint filer, the number is $32,000. It is possible that up to 85% of your Social Security benefit is taxed.

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Strategy 1 To Maximize Benefits

Claim & Suspendinvolves spousal coordination

1. At Full Retirement Age (FRA), the spouse with the higher earnings

record applies for SS benefits, but immediately suspends benefits.

2. The spouse with lower earnings files for spousal benefits.

3. The spouse with higher earnings record claims their benefit at age

70 (“un-spends” their benefit) .

KEEP IN MIND. . .This strategy may not be done before FRA!

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Let’s explore… Dick & Jane

Dick & Jane Dick and Jane are both 66. Dick’s benefit at age 66 would be

$2,196. Based on Jane’s working record, her

benefit would only be $700, so the spousal benefit is higher at $1,098.

If Dick elects to wait to file, his benefit would be $2,899.

Dick decides to “claim & suspend”.

This example is for illustrative purposes only, results illustrated will differ from client to client.

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Let’s explore… Dick & Jane

Dick & Jane BENEFITS:

Jane is able to receive spousal benefits.

Dick’s benefits continue to grow. Survivor benefits will be higher.

This example is for illustrative purposes only, results illustrated will differ from client to client.

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Strategy 2 To Maximize Benefits

“The Double Dip”involves spousal coordination

1. At Full Retirement Age (FRA), the spouse with higher earnings

record applies for spousal benefits. [Spouse must be receiving

benefits on his/her record]

2. At age 70, the spouse with the higher earnings record switches to

his/her own record.

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Let’s explore… Sam & Susie

Sam & Susie Sam and Susie are both 66. Sam’s benefit (PIA) is $2,196. Susie’s benefit (PIA) is $1,000. Susie applies for benefits. Instead of filing on his own record,

Sam files for a spousal benefit on Susie’s record. He beings to receive $500/mo.

At age 70, Sam’s benefit will be $2,899. Meanwhile, he received an additional $500/mo. from 66-70.

This example is for illustrative purposes only, results illustrated will differ from client to client.

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Let’s explore… Sam & Susie

BENEFITS:

Sam gets benefits from age 66-70. Sam’s benefits continue to grow. Survivor benefits will be higher.

Sam & Susie

This example is for illustrative purposes only, results illustrated will differ from client to client.

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• The “Double Dip” strategy cannot be done before Full Retirement Age.

• Only one spouse is allowed to claim a spousal benefit.

• This is known as “restricting” application to a spousal benefit (not formally known as the “Double Dip”).

Caution!

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What ELSE is there to consider?

Coordinate when and how you draw Social Security benefits with your overall financial plan.

Have a plan that considers how to maximize your Social Security benefits to their fullest potential.

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Have questions about your situation?

Our Social Security Maximization Planning Tool carefully considers:

Strategies you may wish to consider in maximizing your benefits.

Coordinating spousal benefits. How your overall income plan

works with your SS benefits. Click here to schedule a

Complimentary Consultation w/ Nick

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The List of Items We’ll Discuss

Social Security Statement Latest Tax Return Financial Statements Annuity Policies Insurance Policies

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We offer Complimentary Phone Conversations at your convenience.To Schedule, Click Here

• If you’d like to discuss any of this material in further detail, that’s what we are here for

• We offer entirely complimentary phone consultations, throughout the day, entirely at your convenience.

• Simply click the above link and schedule an appointment with our online calendar.

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The List of Items to Have in MindFor your first consultation:

Social Security Statement Latest Tax Return Financial Statements Annuity Policies Insurance Policies

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Thank you!

• Thank you for participating in our online seminar.

• I hope it has been educational and informative for you.

• If you have any feedback, criticism, or even a testimonial, we would love to hear from you. Please click here to send your remarks to nick@glidepathfinancial.com

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Resources

• www.glidepathfinancial.com

• www.ssa.gov

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About the Author• Nick Bloomfield is President and Founder of

GlidePath Financial Solutions, LLC. Nick has close to a decade of experience helping individuals and families plan, set strategy, and make informed decisions regarding their own personal financial goals.

• As a CERTIFIED FINANCIAL PLANNER ™ Practitioner, Nick believes in a knowledge-based, methodical approach to help establish and guide clients on their own, unique “GlidePath” to retirement.

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