windfall elimination provision

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#238 Social Security Questions Answered

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Since her last appearance on the show, I have been saving your Social Security questions for nationally recognized SS expert, Mary Beth Franklin. Mary Beth is a contributing editor at Investment News and writes regularly about the latest research and thought leadership on retirement income planning. You can follow her on Twitter here and download her book, “Maximizing Your Social Security Benefits” here.

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Thank goodness for Mary Beth, because it is so difficult to wade through the SS system’s 2,800 rules! The part of the program was devoted to the strategies around claiming SS benefits on the record of an ex-spouse.

The basic rule is that you must have been married for at least 10 years before you got divorced and you must be currently single, which also could include being widowed from a subsequent spouse. We fielded a lot of questions about making the claim retroactively, but Mary Beth notes that you must be at or beyond full retirement age (FRA), the maximum retroactive benefit is six months.

There were a lot of questions about whether an ex can claim as early as 62. The answer is yes, with a caveat. You can claim on your ex, but other SS rules apply, so you would have to claim a reduced benefit on your own record and then if ½ of your ex’s benefit is greater than your own, you can collect the difference.

Here’s an example: Jack (67) and Jill (62) were married for 20 years and then divorced. Jill would be entitled to $1,000 per month, if she were to wait until her FRA, but instead, she claims at 62, which reduces her monthly benefit to $750—remember, if you claim early, the reduction is permanent! Let’s assume that Jack has claimed his $2500/month benefit at his FRA. If Jill had waited until her own FRA, she would have been entitled to half of his benefit, which would be $1250/month. BUT, because she is claiming at 62, her share of his benefit is also reduced, so she would only be entitled to $875/month. From the perspective of SS, Jill would be entitled to two benefits at age 62: her $750 + $125 from her ex-husband, for a total of $875.

Mary Beth also covered survivor benefits; how to execute a Social Security “Do-Over”; some of the rules around SSDI; the two rules that may limit your Social Security benefits: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO); and of course, Mary Beth’s GOLDEN RULE FOR SOCIAL SECURITY!

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#227 Summer Travel with Peter Greenberg

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Just in time for summer vacation, Emmy-winning investigative reporter and producer, Peter Greenberg joins the show to provide great travel tips. Peter is the travel editor for CBS News and also hosts his own television show, “The Travel Detective with Peter Greenberg,” on public television.

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Peter covered a lot of ground, including: Tricks for navigating the consolidating airline industry (conduct research on line but don't give up on the phone yet); why travel agents are on the rise again; why now is a great time to book a cruise; what you need to know about traveling to Cuba; why you should NOT cancel your trip to Greece; and what you need to know about trip cancellation insurance.

We also covered a great question from Jessica, who is looking to make a career change from medicine to financial services. The financial planning industry is poised to grow, so she should check out the CFP Career Center!

Kris wanted to know the basics on Social Security for married couples and Carol weighed in on the Windfall Elimination Provision and the Government Pension Offset.

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 
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#224 Father's Day Financial Advice, Annuities

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This Father's Day weekend, we have financial advice for dads, moms and kids. Many of you know that my father, "Big Al" or "Albie", had a big influence on me and I miss him terribly. For those who never heard the show where Dad came on as a guest, you can check out this post. I also wrote about him here.

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In this week's show, we spoke to Frank and Camille about annuities, as well as Mike about his asset allocation. Jill wanted advice or ideas about how she could contribute to her household income, perhaps through a small business and Pam asked about the about the Windfall Elimination Provision  of Social Security.

Finally, Vinnie wants to retire early…really early -- no later than 57 and as early as 52 if he can make it work...can he?

Thanks to everyone who participated this week, especially Mark, the Best Producer in the World. Here's how to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE