A Registered Investment Advisor, offering fee-only financial planning, trust management, and investment advisory services.

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Social Security claiming strategies are in jeopardy...

First, some background.  Social Security allows some unique claiming options that are available to certain people within a very narrow age and benefit category.  We have oftentimes recommended these strategies to people entering into retirement as a way to squeeze more out of the system.

President Obama’s FY 2015 budget proposal called for changing the rules to eliminate “aggressive Social Security claiming strategies which allow … beneficiaries to manipulate the timing of collection of Social Security benefits in order to maximize delayed retirement credits.”  The bill includes language titled as “closure of unintended loopholes”, has passed the House and now moves on to the Senate.

The content and speed of this legislation has caught many of us in the Financial Services industry by surprise.  Gahhhsp!!!

I have not detailed all of the provisions as the situation is fluid and many questions remain… most critical is that it may be applied retroactively.  So if you are currently using certain claiming options, such as “File and Suspend”, it is possible you will see your benefits stop.

 I will update my clients, followers, and e-mail subscribers as information becomes available.