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www.theconnectionsnj.com
Spotlight on
“
SeniorS”
GET THE MOST FROM
SOCIAL SECURITY.
Gary Len
Financial Advisor
29
Olcott Square, Suite 6
Bernardsville, NJ 07924-2306
(800) 220-5717
gary.len@raymondjames.com
RaymondJames.com/LTG
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, and are not insured by
FDIC, NCUA, any other government agency or any other financial institution insurance, are not deposits or obliga-
tions of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including
the possible loss of principal. Raymond James is not affiliated with the financial institution or the investment
center. ©2010 Raymond James Financial Services, Inc., member FINRA/SIPC 10-BDMKT-0426 FID 10/10
Timing is everything, especially when it comes
to starting Social Security benefits. Too many
retirees receive permanently reduced pay-
ments due to ill-informed decisions that ne-
glect to account for factors such as age, job
status, taxes and marital status. You don’t
want to be one of them. It could mean leaving
money on the table at a time when you’ll need
it most. I can help you develop a strategy to
help maximize your household Social Security
benefits and enhance your overall retirement
income plan.
LIFE WELL PLANNED.
Myth: Social Security will provide
most of the income you need in
retirement.
Fact: It’s likely that Social Security will
provide a smaller portion of retirement
income than you expect.
There’s no doubt about it – Social
Security is an important source of retire-
ment income for most Americans.
According to the Social Security
Administration, more than nine out of
ten individuals age 65 and older receive
Social Security benefits.
But it may be unwise to rely too heavily
on Social Security, because to keep the
system solvent, some changes will have
to be made to it. The younger and
wealthier you are, the more likely these
changes will affect you. But whether
retirement is years away or just around
the corner, keep in mind that Social
Security was never meant to be the sole
source of income for retirees. As
President Dwight D. Eisenhower said,
“
The system is not intended as a substi-
tute for private savings, pension plans,
and insurance protection. It is, rather,
intended as the foundation upon which
these other forms of protection can be
soundly built.”
No matter what the future holds for
Social Security, focus on saving as much
for retirement as possible. You can do so
by contributing to tax-deferred vehicles
such as IRAs, 401(k)s, and other employ-
er-sponsored plans, and by investing in
stocks, bonds, and mutual funds. When
combined with your future Social
Security benefits, your retirement savings
and pension benefits can help ensure
that you’ll have enough income to see
you through retirement.
Myth: Social Security is only a retire-
ment program.
Fact: Social Security also offers disability
and survivor’s benefits.
With all the focus on retirement benefits,
it’s easy to overlook the fact that Social
Security also offers protection against
long-term disability. And when you
receive retirement or disability benefits,
your family members may be eligible to
receive benefits, too.
Another valuable source of support for
your family is Social Security survivor’s
insurance. If you were to die, certain
members of your family, including your
spouse, children, and dependent par-
ents, may be eligible for monthly sur-
vivor’s benefits that can help replace lost
income.
For specific information about the bene-
fits you and your family members may
receive, visit the SSA's website at
www.socialsecurity.gov, or call 800-772-
1213
if you have questions.
Myth: If you earn money after you
retire, you’ll lose your Social Security
benefit.
Fact: Money you earn after you retire will
only affect your Social Security benefit if
you’re under full retirement age.
Once you reach full retirement age, you
can earn as much as you want without
affecting your Social Security retirement
benefit. But if you’re under full retire-
ment age, any income that you earn may
affect the amount of benefit you receive:
•
If you’re under full retirement age, $1
in benefits will be deducted for every
$2 you earn above a certain annual
limit. For 2013, that limit is $15,120.
•
In the year you reach full retirement
age, $1 in benefits will be deducted
for every $3 you earn above a certain
annual limit until the month you reach
full retirement age. If you reach full
retirement age in 2013, that limit is
$40,080.
Myth: Social Security benefits are not
taxable.
Fact: You may have to pay taxes on your
Social Security benefits if you have other
income.
If the only income you had during the
year was Social Security income, then
your benefit generally isn’t taxable. But if
you earned income during the year
(
either from a job or from self-employ-
ment) or had substantial investment
income, then you might have to pay fed-
eral income tax on a portion of your ben-
efit. Up to 85% of your benefit may be
taxable, depending on your tax filing sta-
tus (e.g., single, married filing jointly) and
the total amount of income you have.
For more information on this subject, see
IRS Publication 915,
Social Security
and Equivalent Railroad Retirement
Benefits.
MYTHS & FACTS ABOUT SOCIAL SECURITY
Submitted By: Gary Len, Financial Advisor
Raymond James Financial Services
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