Readers may find it of interest that I created the idea of an Income Bridge using 401(k) or IRA savings to generate a higher Social Security benefit. Back in the early 2000s, I was asked by my employer at the time to help come up with a product to help workers retire from 401(k) plans with more security as defined benefit plans faded away. At the time, the financial community’s conventional wisdom was to always defer taking IRA distributions until later in retirement and to typically take SS as soon as one retired. However, I thought that this was not the best strategy for the average retiree…….Notably, my retired father lost a lot of my mother’s IRA wealth in the early 2000s bear market and it was eating him aliveGuoabong Stock. SS not only has inflation protection that couldn’t be duplicated in the private sector but had a survivor benefit few talked about (Jonathan did). At the time, no one talked about how spouses should strategize together to create the optimal SS claiming strategy. In addition, changes set forth in 1994 for SS were about to really kick in. Chiefly, Delayed Retirement Credits were to bump up to 8% per year whereas before they were in the 5% rangeHyderabad Investment. I also did a deep dive into the SS rules and discovered that due to a change made under President Clinton to eliminate the Earnings Test after FRA, an individual could file for benefits (at or after FRA) triggering the eligibility of a spouse to file for a spousal benefit and the worker could immediately suspend his benefit. I named it “File and Suspend”.
A young actuarial trainee came to work under me and he was able to design an Excel modeling tool to prove the concepts. He added greatly to the ideas…We put together an annuity product that could be designed to create a customized cashflow to bridge from retirement until delayed SS kicked in. It allowed for the spouse’s worker and/or spousal benefit to be integrated into the strategy. We wrote a paper and it was published by the Pension Research Council at Wharton. Jonathan wrote about the launch in 2006 when he was at the WSJ. Needless to say, the product failed and I probably made it too complicated as I brought in the significant tax savings that many households would find if they took the income bridge approach. That said, the research paper made the rounds and John Sloven at Stanford and Alicia Munnell at Boston College’s Center for Retirement Research, William Reichenstein at Baylor (and others) took the concept and wrote about it and advanced the research further.
“File and Suspend” was killed under the Obama Administration as it was deemed a loophole. That said, the concept did help more retirees consider the tremendous value of delaying SS to provide for a surviving spouse.
Article Address： http://pornsoldier.com/Stock/122.html
Article Source：Admin88
Notice：Please indicate the source of the article in the form of a link。
