Social Security: Indispensable Information for Financial Professionals (Completed)

This course discusses the basics of the Social Security program, including a review of the most recent rule changes made in the Bipartisan Budget Act of 2015.

Along with background information on the Social Security program history, funding and how benefits are calculated, descriptions of benefits available for married, single, divorced and widowed retirees are given.

Case study examples explain the most commonly used rules and strategies needed to optimize Social Security benefits through the comparison of best vs. worst claiming decisions.

The importance of determining optimal Social Security income claiming strategies is explained for its importance when examining portfolio withdrawal strategies to create a reliable retirement financial plan for your clients.

Required client information, terminology, acronyms, and concepts needed to understand how to optimize benefits are presented.

Who Should Attend
Tax and Financial Professionals who want to better steward their clients and prospects with the Social Security income planning process or who want to expand their practice into Social Security income planning. Including the following licenses and certifications: Tax Professionals: CPAs, Enrolled Agents Financial Professionals: CFP, IAR, Life & Annuity Agents, CLU, CPRC, CFS, ChFC, CIC, and CIMA.

Topics Covered

• Review of Social Security rule changes resulting from the Bipartisan Budget Act, 11/2/15
• History of Social Security and long-term solvency of trust fund
• Social Security terms and acronyms
• How the Social Security benefit is calculated
• An overview of life expectancy and statistics for men vs. women
• The effects of electing to claim Social Security too early — and a possible 'fix'
• Spousal and survivor benefits, the rules and strategies you need to understand
• Single, divorced, and widowed benefits
• Computing the optimal benefit, a look at some case studies
• Aligning your Social Security election decision with other retirement assets
• Resources, software, further education

Learning Objectives

• Recognize important Social Security program historical facts, changes to the program, and possible future adjustments for the trust fund to remain solvent
• Identify the components of the Bipartisan Budget Act of 2015, noting its late passage, phase out of claiming strategies, options, and age deadlines
• Recognize the most commonly used Social Security terms and acronyms
• Note the funding mechanisms of Social Security, including maximum taxable earnings amounts
• Recognize the elements of calculating social security benefits, including how to calculate AIME and PIA
• Note the age at which full retirement benefits can be collected, time windows to fix an incorrect income election, and the life expectancy of men, women, and couples
• Identify the mechanics of the earnings test, noting exempt amounts and earnings in excess of the exempt amounts
• Recognize the rules and requirements for spousal benefits, divorced couples, and survivors
• Specify Social Security income amounts for clients electing to start at various ages, noting ways to optimize Social Security benefits through reduced benefits and delayed retirement
• Recognize the importance of aligning the Social Security election decision with management and withdrawal of other retirement assets

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Specialized Knowledge (2 hours)

Program Prerequisites
None

Advance Preparation
None