Greetings!,

Did you remember to wish your rich Uncle Sam happy birthday last week? Well, maybe being $33 trillion plus in debt, he is not so rich. And no, we are not talking about the birth of the nation, but the birth of one of the most popular programs in the U.S. Government: Social Security.

August 14, 1935, President Franklin D. Roosevelt signed into law the Social Security Act, effectively marking August 14th as the annual birthday of the Social Security benefits program as we know it today. It just had its 90th birthday!

Social Security may be one of the largest assets for people in retirement, and yet maybe the one asset that is the most misunderstood.

The most common question we get is "when should I claim Social Security? As part of that, when should my spouse claim Social Security." Claiming benefits too early after turning age 62 could leave you short on income in your later years. Not claiming soon enough, and depending on when you or your spouse pass away, you did not receive all the benefits you planned on.

The other question we get a lot is "what is the earnings limit if I claim early? I don't want to lose benefits."

Since its inception, Social Security was intended not to be a the sole source of retirement income, but a safety net for those without means. Keep in mind, in 1935, the world was still in the midst of the Great Depression.

According to the Social Security Administration, here are the most common myths regarding the program:

Franklin Roosevelt introduced the Social Security (FICA) program. He promised:

1) That participation in the program would be completely voluntary.

2) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the program.

3) That the money the participants elected to put into the program would be deductible from their income for tax purposes each year.

4) That the money the participants paid in would be put into the independent "Trust Fund," rather than into the General operating fund, and therefore, would only be used to fund the Social Security Retirement program, and no other Government program.

5) That the annuity payments to the retirees would never be taxed as income.

Here is the link to read more about the myths:

Social Security Myths

However, if you have the same 2 questions we mentioned above, or have other Social Security questions, please call us. We have benefit planning software to illustrate potential Social Security income benefit. We also have resources which may allow us to provide answers to your questions.



Bernie & Chad