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The Yours - Updated | Book by Laurence J. Kotlikoff, Philip Moeller, Paul Solman | Official Publisher
This book's first edition began with a memorable tale of a straightforward social security strategy: how Larry and Paul made $48,000 for Paul in less than two and a half minute during a pause in what they call "tennis", telling him how to get his.
In the remainder of the book, the reader was led through the various footsteps and policies necessary to get theirs too by using other material histories, reasonable hypotheses and humour, to the confined degree that we could entertain Social Security. There was a wide range of the book's profound goals: to make our American citizens realize how little they knew about the country's most important pension programme; to make them realize how important it was for their own finances to grasp the fundamental outlines of the system and its edges; and lastly to unmystify the debilitating complexities of social security so that virtually anyone could control it.
However, when it comes to getting what you deserve, our primary goal was to put you over your heads with a winning combination - one particular strategy: patient and the enormous opportunity that comes from expecting massive increases in your performance from old age onward regardless of your own old age, your family situation or your income upbringing.
But - and here the take-away solution is - it is much smaller than what the couples can get by maximising their social well being. Because if they make the right choices, they can raise the value of their life time social security "asset" to more than $1. 7 million! "Under what is probably the dishonest title "Protecting Social Security Benefits", the new act amends several earlier regulations, including in particular the easy "file-and-suspend" policy that Larry and Paul had agreed to share over the net.
Six and a half years after the Act was signed, the file-and-suspend policy would be tight. The book will tell you everything about the new regulations and help you see to what degree they will influence you or not. Under the new act, the 62-year-old pair we referred to can no longer receive a full spouse's allowance between the full pensionable life and the 70 years of life, while they wait until 70 years, as Larry Paul had discussed about the game.
However, many spouses and divorces will still be entitled to pursue Paul's policy for the next 4 years. However, here is the good part, and an important factor why we felt forced to re-write and present this reworked issue of Get What's Yours: the $48,000 Paul and his spouse raised could still work for many pairs and people who were 62 years old or older on January 1, 2016 but are not yet 70 years old and not of the same year.
We estimate that there are literally a million of you out there, a million of Americans who will be "grandparents" and are therefore still able to apply the policy recommended by Larry Paul. Moreover, the remainder of the book's proposals and policies stay accurate and invaluable: be patient; become conscious and then Learn how to take all the advantages to which you are allowed (and may never have belonged ); to make the various good that most of them; and overall, Social Security guidelines well enough to make the best choices for you and your family as you really can't count on Social Security to do them for you.
The unreliableness of social security was something we knew when we wrote Get What's Yours, but we have had it memorized over and over again since we wrote to us as complaining writers to grieve that we had received bad counsel. In fact, one of our clients gave us a badge on Amazon because we gave her "wrong advice" because her social security department reassured her that we were not.
It wasn't us, and Larry has taken out the reviews and, we trust, put the reader's benefit in order. However, in defence of the Amazon critics, another said he had learnt a lot from our book - and himself as a social security advocate. However, since the story Larry and Paul share - and this co-author Phil Moeller and his woman Cheryl use it - still holds true for the next four years for billions of Americans, what exactly is that?
Returning to 2010, when Larry and Paul had taken a pause from what they call an optimistic view of playing football, Larry started into a harangues, as he often does; this time it was about the crazy complexities of social security. He was listening with the ears of his sceptical reporter. Or maybe, since it was a Larryarangue.
Larry then banged the question: How old were Paul and his woman and when did they intend to take their social security at? Paulus Larry was proud to tell him not to worry: "He and his woman have found out everything. You would both be waiting until 70 if Paul would get something like $40,000 a year instead of $30,000 or so if he took his benefit early at 66, his "full" - but not "maximum" - pensioner, which was in fact just around the corner. Sure.
For years Paul had read and filed these yearly green declarations of the social security administration with their "estimated benefits". asked Larry. Then Larry said when you (Paul) turn 66, call or go to Social Security and sign in to the system. However, you are not applying for your own advantage, but for a spouse's allowance.
Spouse' s pension is 50 per cent of what Jan is due at her full pensionable age of 66, in Jan's case. It was confusing but fascinating. Marital allowances? They had been vague to Paul. Yeah, said Larry, until you get your own end of it. Then Larry went on when Jan strikes 70, she does as initially planned-she will call or visit Social Security again and says that she now wants to take her pension, at this point it starts at its highest possible value.
asked Paul. Exactly what you had in mind, Larry said. Contacting social security and telling them that you are changing from spouse's allowance to your own advantage. asked Paul. Now, Larry said, during the four years you are waiting, you would make about $12,000 a year - half of Jan's full pension.
In the meantime, your own use would have increased by 8 per cent per year, that is, by a combined 32 per cent (the achievement of the amount that Paul's verdicts in green had he been waiting for 70). Spouse' s allowance for four years. In fact, that was supposed to be almost $50,000, as Larry had quickly guessed. And, most important, there would be a pillow for Paul and Jan as they were waiting until 70.
He was 66. It applied for a spouse's allowance. She had never even been told about file-and-suspend, asked her superior and came back to thank him for clarifying a policy that she could now agree with anyone who phoned. As they turned 70, Paul and his woman were contacted again, gracious, competent and within a few moments, although his woman was confused when asked if she had ever been a nun. It was 1946, and his woman, Cheryl Magazine, is four years younger.
Phil, of course, waited obligatorily until 70 to get his own maximal social security benefits, 32 per cent higher than he had started receiving his benefits at the tender of 66 years. As a co-author of a book whose principal council is to hold out as long as possible before taking out social security, he should have run the risks of being publicly suspicious - and the co-author had done otherwise.
As Phil turns 70 and begins to receive his full pension, Cheryl turns 66, submits a limited proposal and begins to receive only her spouse's benefit: half of Phil's "full pension", the amount he was entitled to receive at 66, and exactly what Paul did when he started recording on Jan's album.
They are the ideal match - at least for entitlement to spouse allowances under the new regulations. Four years of old means that Cheryl can start taking spouse's wages, just like Phil, who robs the crib, turns 70, and she can get them for the full four years until she herself achieves this high one.
Crucial for the reader of Get What's Yours is the same for any partner who is four or more years younger than the individual to whom he is currently engaged - keep in mind that the younger partner must have been at least 62 years old before January 2, 2016 to be entitled under the old regulations.
Phillipe and Cheryl are also the tense family, because, they were single digit gathering adolescent - a crisp female when he was an aged, for representation - she would already be 67 when Phil inverted 70 and thus get single digit gathering measure of spouse good; if a prison intellectual to his aged, two gathering old; fitting a juvenile, do the science excavation.
The new legislation does not allow older couples who submit and stay to grant pension payments to their husband/wife or other dependants while their old-age pension is suspended. It' truely Paul and Jan would have profited if they had got a divorce, because each of them could have taken husband services for the other.
01/01/2016 But the way the bill now is reading is the only way for peer pairs who were 62 to January 1, 2016, to do what Paul did (collect a full spouse allowance while awaiting up to 70 to take his pension ) to get a two year divorce before reaching full pensionable age- A friendly divorcee ( "friendly to the point of familiar, even).
Do you want to know how much they can pay out for the meeting just because they received spouse's pension in the four years between the full pensioner' s pension (66) and the 70th? Had they not been top earner, but only the current performance of 15,000 dollars a year, they would still have raised 60,000 dollars in the four years.
In fact, we do not agree on many social security issues, as is made clear in section 17. Whether it is God or the Deer in detail (lexicographers differ), it is clear that in social security the detail can make the big deal. The last time social security was reviewed by Congress in 1983, the pensioner' s pensionable life was increased by two years - from 65 to 67.
On the other hand, the possibility of granting or receiving pension payments from dependants on the basis of an application for a pension has been abolished for most individuals over a shorter six-month span, and the possibility of receiving spouse's pension at 66 years of life, while one's own pension increases up to 70 years of life, has a four-year phase-out.
"To maximise deferred pension payments, the EU government is proposing to remove harsh social security benefit policies that allow high-income recipients to tamper with the date of withdrawal of social security payments. "But there was no reference in this year's household to the abolition of social security rules, no open consultations or debates.
In fact, we know that the definitive tongue was seat-of-pants, because after Larry (in his PBS NewsHour on-line social security weekly, "Ask Larry "2) that the initial speech would remove some advantages that had already collected folks, the bill was changed - changed, Larry was explained by a high-ranking Social Security officer because the implications of speech had not been realiziated until he pointed them out.
One estimation we used in the first issue of Get What's Yours was that if all husbands and ex-husbands used the system, it would be $9. 5 billion per year. One main reason against file-and-suspend is that high income is likely to be the main beneficiary of this policy.
Larry, an associate at Boston University, knows exactly who we will call Alice. She was planning to draw and suspend her old-age pension at 66 so that her spouse's pension and her son's handicapped children's pension could be paid while she was waiting up to 70 years for her old-age pension.
It was her plan to terminate her second position thanks to these additional services. However, if she can no longer work at her present rate, she will have to draw her old-age pension prematurely. It activates the payments for her husbands and children, but also means a lower long-term pension for them.
Please refer to section 4 for some other characteristics of the Act that seem unjust and/or random, if not perverted, for them we have written in the hope that we would achieve the reader least knowledgeably and most dependently on social security for their living in old age. 3.
We' d been writing a book to help those of us see how to maximise the social services they had been earning and that's why we thought we could get them. We thought that three of us - the economists and the two reporters - had been spending years learning about social security and making the complexities of the economy clear to the general population that we were the right men for the task.
For the Americans, social security is by far their most important age group. Indeed, medium - and higher-income budgets benefit most when they are granted the right to social security. Tooting up life time benefit, even low-income couple can be social security millionaires. ªNo... Apart from the Bill Gateses and Warren Buffets of the whole wide globe - whose share of the local people has been very small recently - social security is a very sensible means of subsistence.
Thus, this book is justified for almost every one of you who has ever acquired a salary check and wants every Social Security benefits dollars to which you are entitled- because you were paying for it. It'?s yours. This can be yours, even if you have never donated a single pfennig to the system, but have or had a live or deceased partner.
This can be yours even if you have had some or all of your careers working for companies that did not have to take out social security. Had you learnt that it stands for the Federal Insurance Contribution Act, you might not have been too happy at first, but then reassured if you had heard that these "contributions" - weeks, months, years, years - from each salary check (up to a restricted amount of income) - would result in higher pension pay.
Some of us who aren't super rich, but have acquired and stored a great many things, regard social security as a vital life line. But, isn't social security a greater thing for the world' s rich? In order to be safe, social security is an important artery for low-income people. And yes, social security payments are rising for higher earner less than their FICA taxes, for the reason we will discuss later.
However, the benefit increases over the course of the years and with the yield, and the amounts involved are very high. Another history to show why social security is so damn complicated - and can be to the point of the absurd. The morbid, funny account was written by our technical expert Jerry Lutz, who lived his whole social security history and checked this book for truth.
When Jerry was still working for social security one of the days, a claim adjuster asked him a query. You were clearly less than 9 month of marriage, the limit for the receipt of survivors' benefit. So, he looked through the extensive social security policy book and found POMS GN 00305. So, on the basis of the plaintiff's statement and her husband's deathbed, the widow's benefit was finally granted, but the decision was anything but easy.
Correct: 10,000 Babyboomers reach pensionable life every single working day. 3,000. Every one of them has to know exactly how to get the best social security offer. or Larry or Phil's, for that matter, aren't necessarily yours. There are 2,728 key codes and tens of thousands of other codes governing the social security system in his program operations manual, which allegedly explain these two.
For a couple alone, the equation for each couple consists of 10 mathematically calculated formulas, one of which has four different dimension. The book contains minimum mathematics, with the exception of the "simple" equation in this notation. Rather, it provides a very straightforward explanation of the pitfalls to be avoided and fundamental policies for maximising the pension, matrimonial, children's, mother/father, survivors', divorce and invalidity payments of a family.
That' s quite a bit, so this book is not as concise as we (and you) may like it. We' ll point out the social security windfall and pitfall - explaining arcane advantages and more arcane punishments; utility capture policies such as filing a limited claim (take a pension while you let your pension grow) and launch, stop, launch (start the pension, stop it and restart it).
We also describe the social security regulations (which in some cases are obliged to take up certain services early at a very high price) and the associated problems that can hinder you for the remainder of your ordeal. We will tell you the main social security incentive to get a divorce, get remarried or go into a sinful marriage, according to your situation.
Are you aware of the social security contributions for working later? On the merit test (deduction of benefit in certain groups from over-earning), which is not necessarily a test? Are you aware that you usually get the merit test allowances back in full, after adjustment for inflation if you are living to full pensionable age and beyond?
What about the highest level of performance in the whole of your household (the limitation of the amount of benefit your household can receive on the basis of your work results)? It' not really a peak. Throughout this time we will highlight the often enormous gain of awaiting benefit. We even cast in the mythic man with four ex-wives who could in theory gather divorcees or widowers services for each of them.
Time and again the often astonishing and often disappointing social security puzzles go on and on. We are also pleased that you have come to us to find out about social security and not just rely on social security counselling. Honestly, social security is not the first place we would be sending you to study how you can maximise your lifelong gains.
Except for the few system technology specialists (including Jerry Lutz, cited above ), many of the social security employees are not sufficiently educated or too besieged to give consistent and accurate information or guidance on the system's peculiarities. We are going to be providing discriminating representation of group who lose lottery medium of exchange by activity or multitude what the well-meaning kin at party security same them.
Unfortunately, the municipal National Insurance Board is a one-stop shop for most pensioners who make their pension-decision. Superficially, welfare is complicated because it has so many apparently insane regulations. On a lower plane, its complexities reflect welfare policies, which, when put into action, produce results that are often contrary to good manners.
One example is the payment of survivors' pensions, on the basis of the working documents of the former husband and wife, to divorcees who get remarried, but only when they have reached the 60th birthday. A further perversion is the payment of payments to a mother (or father) of small child if their partner receives pension payments, but only if the parent is a wife.
This has resulted in a state pension system that few, if any, can decode without the help offered here. Yet, for most of us, social security is our only pensioner. Moreover, the virtually disappearing of occupational benefits, except for those raised under old schemes, and the disruption of most Americans either contributing or contributing entirely to 401(k), IRA and other pension schemes, Social Security is good pretty much all of us it for pretty much. and IRA.
The book is compiled around general lesson planning, support topics, special schedules to suit your needs, and responses to current issues in Larry's hugely loved Ask Larry section, which is published on Paul's PBS NewsHour Making Sen$e website (http://www.pbs.org/newshour/making-sense/) every week. This is a caution that we will give in advance and which we will continue throughout the book: we will often do so.
It would be much worst if you forget some of your most important choices and, at least for yourself, overturn the whole purpose of Get What's Yours. For those of you who think that the repetition betrays a loss of trust in our reader, we know that when we reach the most important stages of our life, even though we have been writing about social security for years, we still review our own records on these issues.
The book was written after Paul's first social security epipathy with Larry. We' re writing it to help those of you who don't know Larry get every single pfennig of social security. So there is a new section on the new Medicare Act, and a new section on Medicare and Social Security, focusing on Phil's new book, Get What's Yours for Medicare.
We' ve also added new gruesome tales that we've been hearing about social security issues, about the new treatments for the handicapped that were launched at the end of 2014 because the book had already gone into print, and about new mysteries that we've uncovered since the book came out. After all, we believe that it is more than justifiable for you to consider yourself justified in political debate, even though "claim" has become a filthy name.
It is a sense that has been entrenched in all the years of FICA payment, supported by the yearly social security declarations that list your past social security contribution and project your projected performance, and underpinned by the unshakable pledges of our policymakers to protect the system and what it is theirs.