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Wednesday, January 30, 2013

Clever yet Lawful Ways to Boost Your Social Security Benefits – PART 2

In a recent blog post, a Los Angeles permanent disability lawyer featured few of the most clever but lawful ways to increase your social security benefits. Unfortunately, he was not able to provide everything you need to know. Therefore, he continues his blog with some addition information, which he thought would be useful for recipients in coping with today’s financial challenges.

There are actually lots of tricky strategies that could help you maximize your social security earnings as you approach the retirement age. Kindly see below for these additional tips:

Claim spousal benefits

Being married gives you an option in obtaining benefits. You can either take the benefit based on your own work history, or half your spouse’s benefit. You can compare which one will give you the higher benefit. Also, although if you are divorced or separated, you can still claim for social security benefits based on your estranged spouse, given that you were married for at least 10 years. Fortunately, doing so would not harm your former spouse’s benefit. In fact, they would never even know that you applied.

Claim benefits for your children

As you start collecting social security benefits, your unmarried children under the age of 18 may be entitled to receive benefits worth up to half of your full retirement benefit amount. Meanwhile, if they reach 19 years of age and above, they may also receive benefits given that they are a full-time student or with disability that started before the age of 22.

Plan ahead for taxes

As it is, up to 85 percent of your entire benefits may be taxable. Therefore, to at least minimize said expense, seek for some certain tax-saving moves like investing in annuities that allow you to earn interest that isn’t taxed until you withdraw it.

Always check your account statement

Although inaccuracies are uncommon, the chances of having such scenario are still present due to possibilities of clerical errors.

Clear your debts

Although your social security benefits are protected from most debt collections, the sad part is that it can be taken to collect unpaid federal taxes such as federal student loan balances, child support or alimony. Apparently, to ensure that your social security benefits will be left untouched, clear all your debts.