By Jim Silbernagel
Clients applying for social security benefits may be anxious about whether the amount they receive will sufficiently cover their needs, since benefits can vary based on individual circumstances. Plus, it’s uncertain how long the payments will continue coming in, if at all.
By mastering the ins and outs of social security and fully understanding your clients’ future cashflow needs, you can increase – and potentially even double – the amount they will receive in benefits.
Enhance Your Credibility
Learning the intricacies of social security income can be intimidating, especially due to the unforgiving nature of the application process. The unpredictability of the payments can also leave advisors lacking confidence when discussing social security with clients — which may lead clients to doubt your credibility. The best way to give yourself that confidence boost is to dedicate time to mastering these plans.
Tap into financial service professionals who have already learned the intricacies of social security and have distilled their wealth of knowledge. One of my favorites is Robin Mueller, a world-class speaker on optimizing social security.
According to Robin, it’s imperative for advisors to understand that social security will always be a source of income, regardless of political affiliations or concerns about funds running out.
Another great resource is Professor Laurence Kotlikoff’s social security calculator. This tool allows you to efficiently determine when your client should reap their benefits. Take advantage of all the information that already exists and utilize it to become the authority on the topic that your clients need.
Understand Your Clients’ Needs
It can be tempting to advise clients based on generalized “rules of thumb,” but clients are not a monolith – it’s important to treat client situations based on their individual circumstances. General rules can still be used, but they must be applied to the demographics and income of the client.
For example, you may have a 62-year-old client who is a practicing doctor looking to retire. You must consider whether they will have the resources to bridge the gap in income until they are able to claim their social security benefits at 70.
No one client is the same as another, so it’s important to understand exactly how much income they will need to sustain them after they stop working. Spend some time getting to know their familial makeup, work history, financial needs, etc.
Helping your clients get the most out of their social security income is a complex, convoluted process. The layers of information that you must incorporate are enough to make even the most seasoned advisors feel overwhelmed — which is why it’s important to have a deep comprehension of the subject matter. Combining your proficiency with the needs of your client will allow you to make the most profitable decisions for their circumstances.
About the author
Jim Silbernagel, CFP, CEPS, LACP, LUTCF, is an independent agent registered with Concorde Investment Services, LLC and has been in the financial services industry since 1986. Jim is a 26-year MDRT member with both Court of the Table and Top of the Table qualifications.
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