Q & A
How do I know if I’m getting appropriate and accurate advice?
Complete Question: I will be 66, or full retirement age, at the end of the year. My wife is 63. We are both still working but we’ve had a lot of discussions about whether or not we want to keep working. I’m on Medicare now so I don’t need the insurance, but I have twice as much income as she does, and both of our income levels are more than a Social Security benefit. It is important to us to make an informed decision that we won’t regret years down the road, but unfortunately, we are getting conflicting advice from friends and family. After seeking out information on our own from books and websites, it just made us more confused especially when reading about complicated situations that don’t even apply to us. Do you have any suggestions on what resources are the best and how we know if we are getting the most accurate information for our needs and not the general public?
Answer: You have already made great initial steps, which include being aware that there are options out there and not all of them apply to everyone. For example, one of the most popular filing options suggested online to the general public is “file and suspend”; however, sometimes people are not even eligible for this option, but they may be eligible for a different option they have never heard of. Most people do not realize that there are actually over 2,000 ways to get Social Security. Furthermore, if you and/or your spouse is at least full retirement age, your options increase tremendously. Add this to your personal financial needs and goals and it is always best to speak to an expert.
So how do you know if the advice you receive is factual and in your best interest? First, you want to make sure you are speaking to someone who is very knowledgeable about all your options. With this in mind, you should be aware that the Social Security office is not meant to give you advice; they are there to help you file claims, inform you of your benefits and application status, etc. Some people expect advice from them, but that is not their function.
As you are seeking out a professional, there are some key points to look out for. For instance, if you choose to hire a Certified Financial Planner or a CPA, keep in mind that Social Security may not be their specialty. Therefore, you may not want to choose just any CFP or CPA, even if they are recommended, only because their expertise is so wide they are unable to concentrate on all the intricacies of Social Security. On the other hand, there are CFP’s and CPA’s who do specialize in Social Security, so this is one way to go. If you choose someone else, find out what their background is. For example, I am a Certified Social Security Advisor. Think of it like finding a doctor or lawyer. Would you go to a dentist to get your eye glasses? Would you go to a divorce lawyer to file bankruptcy? It is the same idea.
When in doubt, try to come up with one or more “test” questions. Research some very difficult questions and answers and see how the person responds. Do they automatically know the answer? Do they guess? Do they admit they do not know but are willing to find out for you at no additional charge? This can help you determine if you are comfortable with them and how they handle a complicated situation.
After you get the answers you are looking for, always remember, the decision you make is yours (and your wife’s) alone. It is your money and your life. And do not forget – if you change your mind, there is always the option of “withdrawal of application”. There are some drawbacks, such as paying back the money (interest free) within one year, but at least it is available if needed.
The overall good news here for you is that the longer you wait to get the answers you want and make a decision, your benefits are growing larger every month.
C.J. Miles, MSA, MBAHCM
Research Analyst & Social Security Advisor
AMAC Foundation