FOR IMMEDIATE RELEASE
THE FUTURE OF SOCIAL SECURITY
Since Social Security is a complicated system, it requires a significant amount of planning before you file for benefits. Here’s how to plan a proper strategy,
courtesy of Michael Egan, co-founder and partner, Egan, Berger & Weiner, LLC
Vienna VA, August 13, 2012 — “Since Social Security is a complicated system, it requires a significant amount of planning before you file for benefits,” says Michael Egan, co-founder and partner of the Northern Virginia financial planning firm Egan, Berger & Weiner, LLC. “I have spent years studying how it works so that I can best help my clients plan and prepare a proper strategy.”
He notes that savvy planners should keep in mind ways to integrate their Social Security strategy into their overall financial plan.
“Do not assume that the Social Security office will have all the answers to your questions; be sure to educate yourself,” Egan insists.
Following are key points to remember when you are planning your own Social Security strategy.
1. Social Security is not going bankrupt. Many people fear that if they do not take their Social Security benefit now, it may not be there in the future. Let’s examine the facts. The Social Security Trust Fund is still growing. In 2011, total revenues were $805 billion and total expenditures were $736 billion. This means that the Social Security Trust Fund actually grew by $69 billion. The Trust Fund balance as of Dec. 31, 2011, was $2.677 trillion.
2. You can actually be eligible for up to three different benefits during your lifetime: You can get your own benefit, and/or you could get a spousal or a divorced spousal benefit, and/or you could get a survivor benefit. While you can claim only one of these benefits at a time, you may actually be better off claiming all three of these during different periods of your retirement. It is not uncommon to take advantage of all three strategies in order to maximize benefits for a client and his or her family. The proper strategy can mean the difference of several hundred thousand dollars of benefits over a couple’s lifetime.
3. The checks are significant. Most people think Social Security checks are too small to make much of a difference. They have two big benefits: They never run out (you cannot outlive your benefits), and an annual cost-of-living adjustment is built into the check.
Consider this: If you were eligible for a $2,000 a month benefit when you retired:
- Over 10 years you would receive $304,000 in checks (not $240,000).
- Over 20 years you would receive $673,000 in checks (not $480,000).
- Over 30 years you would receive $1.16 million in checks (not $720,000).
- A married couple could potentially receive more than $2 million in lifetime Social Security benefits if they live into their 90s.
For more information, visit www.ebwllc.com.
About Egan, Berger & Weiner, LLC
Egan, Berger & Weiner, LLC is an independent financial services firm based in Northern Virginia whose associates offer decades of experience in many areas of financial planning. The firm’s team of Certified Financial Planners™ specializes in financial planning and coaching, and helps clients realize their dreams by skillfully navigating them through life’s myriad financial decisions. For additional information about Egan, Berger & Weiner, LLC, visit www.ebwllc.com.
About Michael P. Egan, CFP®
A founding partner of Egan, Berger & Weiner, LLC Michael Egan has 21 years of experience in the financial services industry. He has been a mutual fund analyst, and an accountant and financial planner. A graduate of George Washington University with a degree in Finance, Egan hosted a weekly radio show on financial planning in the Washington market. He has also been a presenter on retirement planning for Fairfax County Public School’s Adult and Community Education. Egan is an active member of the Financial Planning Association. To contact Egan, send him an email at firstname.lastname@example.org.