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PART 2: The Tax and Money Traps Social Security and IRS Have Set For You!

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Just south of ‘Sawmill Creek…..
Hi Attorney Kevin Pritchett here
PART 2:
The Tax And Money Traps
The IRS and Social Security Have Set For You
   Yesterday I shared how the IRS
schemed to take your IRA/401k money
from you.
   Today I’ll explain the outright
THEFT of your Social Security benefits…
if you’re not vigilant.
Social Security Deadline To Take Benefits
   All during your working life you and
your employer pay money into an account
for your eventual social security benefits.
   You can begin to take Social Security
at age 62, your benefit increases at your
Full Retirement Age (roughly age 66 2/3 depending
on when you were born) and maxes out
at age 70.  Now here’s the part I bet you didn’t know…
   The Social Security Theft
    If you don’t take your benefits by age 70….
YOU LOSE THEM!!!!  Yes….
All that money you and your employers
have paid into your account for decades…
GONE…just because you didn’t claim it
by age 70!!!
    Its the equivalent of putting your money
in a bank or brokerage account and the
bank or brokerage saying….
“sorry…you didn’t take YOUR money out
of YOUR account by such and such time…
we keep it!!!”
    Its outrageous and probably unconstitutional
should anyone choose to challenge it!!!
    How To Prevent Social Security From
Stealing Your Money
Of course the answer is
TAKE YOUR SOCIAL SECURITY BENEFITS BEFORE AGE 70!!!
    Sounds simple and actually it is….
the trick is knowing WHEN’s the best time
to take your Social Security…..
not to mention,
==survivor benefits…
==spousal benefits
==disability benefits
==how much can you earn and not lose your SS
 

Its Now On You    

     I bet you didn’t know about this money trap did you??
(unless you’ve been to one of my workshops
or watched my tax trap video of course LOL)
   As with most things..its what you
don’t know you don’t know that can hurt you..
BADLY!!!
No ‘One Size Fits All Solution
   I create such plans for my individual
and business clients every day…..
There’s ABSOLUTELY NO NEED FOR
YOU TO ALLOW SOCIAL SECURITY  TO STEAL YOUR
MONEY!!!
   As with all things financial, there’s no
‘one size fits all’ solution…each person
is different and therefore each plan design
must be different….but to do nothing is
insane….
Now Its On You
NOW THAT YOU KNOW THERE’S A
SOLUTION…if you suffer its now YOUR FAULT.
   Tomorrow I’ll share how the Social Security
Administration literally STEALS YOUR MONEY!!!
Reach Out To Me If You Have Questions.

OR
…send me an email :ironkop@gmailcom
or if reading on my blog or Facebook page
leave your questions or comments below.
Remember…..

“Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq
Law Office of Kevin Pritchett, Inc.
312-505-1957
ironkop@gmail.com

” Will Social Security Run Out Of Money?”

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Just south of ‘Sawmill Creek…..
Hi Attorney Kevin Pritchett here
     Before I answer the question of

“Will Social Security Run Out?

I have to explain how Social Security is funded and hence how you are taxed for it.

How Much  Social Security Tax Will You Pay?   
Social Security taxes are paid on amount of all wages earned.  In 2018 the maximum income for social security tax is $128,400 and the maximum tax on that amount is 6.2%.  So if someone earned the maximum of $128,400 they would pay $7960.

Medicare Tax
    There is an additional 1.45% tax to fund Medicare.  This tax is uncapped so no matter what your earned income you pay this 1.45%.

     If you earn over $200,000 you pay an additional 9% for single filers and heads of households and that 9% is assessed on earned income over $125,000 for married filers filing separately and over $250,000 for married couples filing jointly.

Employers Social Security and Medicare Contributions
    In addition to the part employees pay Employers pay 12.4% of employees salary for Social Security and  2.9% for Medicare.

Self Employed Contributions
   Self employeds who earn $128,4400, or more
would have to pay the whole $15,921.60.

However, these self employeds can deduct half of the
Social Security taxes paid to reduce their
adjusted gross income. 

Projected Social Security Trust Fund Shortfall
     Here’s the issue regarding your retirement planning…according to Social Security Administration due to rising costs and diminished revenues, by 2034 there will be projected shortfall in the Social Trust Fund. 

     As a result either benefits will be reduced ortaxes will be increased…neither situation is good news.

Take Home Message On Social Security 
DON’T RELY ON SOCIAL SECURITY ALONE FOR YOUR RETIREMENT NEEDS!!!!

    You need to plan your savings so that you receive GUARANTEED, LIFETIME INCOME  no matter what SOCIAL SECURITY OR STOCK MARKET DOES!!!

     Don’t believe me……just talk to any number of your friends who are still working past 65 because they lost money in the 2008 recession!!!

    There are things you can do to protect your retirement income…

Reach Out To Me If You Have Questions. 
If you have comments or questions about any of this…send me an email :ironkop@gmailcom
or if reading on my blog or Facebook page leave your questions or comments below.

Remember…..”Things Don’t Get Better With Neglect…..”

Kevin Pritchett, Esq
Law Office of Kevin Pritchett, Inc.  
ironkop@gmail.com
www.KevinPLaw.com
312-505-1957

When Should You Take Your Social Security Benefit?

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At What Age Should You Take your Social Security Benefit?

Just south of ‘Sawmill Creek…..

Hi Attorney Kevin Pritchett here
When Is The Best Age To Take Social Security?
You can collect your Social Security benefit as early as age 62. 

  However, you only get the full 100% of your Social Security benefit when you wait until your Full Retirement Age, which is somewhere between  the ages of 66 and 67.

Full Retirement Agre (FRA)
    Quoting from a ‘Motley Fool’ article on the subject: 
 
   “ If you apply for your benefits at age 62, then your
monthly check will be much smaller than it would
be if you wait until FRA. The Social Security Administration reduces your monthly benefit payment by a fixed percentage for every month you claim earlier than FRA, and those monthly penalties can add up. For example, a person born in 1960 has a full retirement age of 67; if they claim benefits at age 62, they’d get 30% less per month than they would get otherwise.

From that same article….

“The difference between the amount you could collect
in benefits at age 62 and the amount you could collect
if you wait until age 70 to apply for benefits is significant.
Assuming a full retirement age of 67 and a full retirement
age benefit of $1,000, a person who claims at age 62
would only receive $700 per month, while a person who
claims at age 70 would receive $1,240 per month. In this
scenario, claiming at age 70 results in a monthly check
that’s a whopping 77% bigger than the check they’d
receive at age 62.”

Advantages of Collecting At Age 62 and Breakeven 
    The advantage of collecting at age 62 is that well…you can collect!!!  If you wait to collect and you die, then you lose!! Overall. there is a 40% chance a 60 year old will not live to age 80 based on 2015 data.
 
     Along these same lines…if you collect at age 62 the longer you live, the more total benefits you may collect…the point at which you ‘break even. “The breakeven point is different (with certain assumptions)for age 62, 67 and 70.

Other Factors
Of course since we’re dealing with ‘a government benefit…NOTHING IS SIMPLE!!!

   Other considerations:

==spousal benefits
==total income considerations
==what other income/assets you have

   If you’re nearing age 62 and expect to collect Social Security it pays to think very very carefully, consider all the possibilities and make a plan BEFORE you get to the critical age….you only get one shot at this!!!
Remember…..
“Things Don’t Get Better With Neglect…..”

Kevin Pritchett, Esq
Law Office of Kevin Pritchett, Inc.
ironkop@gmail.com
www.KevinPLaw.com
312-505-1957