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« R.I.P. Wyatt E.T. Fleming | Main | Elective Share and Separate Property »

May 09, 2008


Diana Klosterman

I was reading the SS reversed, when the age applies. I am soon to be 63 and my husband and I are applying for our SS now. We are interested in the reversed part, but would like to know more information pertaining to this. If one of us should die before the allotted 3 years, does that mean we both lose all the money we paid back to reach the "more amount"? How long does it take to get back what we pay back if we go this route? If, I am understanding this correct, this is a big chance to take, or am I not understanding it correct? Please give me more information pertaining to the accurates, if we go down this road. Thanks, Diana

Andrew H. Hook

Diana, risk and return are correlated. The strategy is dependent on the client reaching full retirmenet age, making the repayment and then living to recover the repaid amount from the increase in his or her monthly checks. If the client dies prior to recovery of the repaid amount, the strategy is a loser. If the client lives to recover the repaid amount, the strategy from that point forward is a winner. You must evaluate your health and likely life expectancy. I suggest you seek the assistance of a CFP(r)in developing your retirement plan. Andrew H. Hook, CELA, CFP(r)

Jerry Lafountain

Hello Andrew,

I read your comments on withdrawing and reapplying for social security with interest because I have investigated this issue.
In my meetings with the social security people, they estimated that it would take 3-4 months to complete the withdrawal/reapplication process during which time the applicant would not be receiving a social security check. This timing differed drastically from some of the reports I extracted with Google which suggested that one could complete both actions at the same appointment.
Also, the calculation for time to equality is not as straight forward as a simple formula of:
since the loss of social security during application and the loss of interest on the payoff money must also be considered.
Thank you,
Jerry LaFountain

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