Over the past few days, I’ve shared with you some thoughts on Social Security planning.
In my last email, I even gave you a teaser, so to speak, of why COLAs in Social Security should not be overlooked.
In this video, I show you EXACTLY why that is.
It’s pretty simple, once you think about it. John has a $1000 a month Social Security benefit and his wife Jane $1500. Thus Jane gets $500 more a month than John. With me so far?
They both receive a 3% COLA next year on their Social Security benefits. So the next year, John will receive $1030 a month. Jane $1545.
How much more is Jane getting than John now? $515. So that COLA put an extra $15 in Jane’s pocket than it did for John, even though it was the exact same percentage increase. If you play this out over the course of years, that increase for Jane gets larger and larger and…you get the point.
But it doesn’t stop at Jane’s death either. When Jane dies, if she dies first, John will get the benefit she was receiving at death or his own, whichever is larger.
Even a poor boy from an island in Maine (that’s me in case you were wondering) can figure this out.
Most Social Security planning leaves out this significant aspect of COLAs. And that’s a HUGE mistake.
The video referenced above is Part 2 of my two part webinar/seminar program I do on Social Security planning. Part 1 is here.
If you are in the North Atlanta suburbs, I am doing this presentation next week, here in Milton on June 19th and 21st. By all means, contact me and it’d be my pleasure to provide you the address for you to attend.
If you are part of a group that could benefit from this presentation, let me know too and I’d be happy to do it.
As always, any questions, thoughts or concerns, just contact me.