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What's Best for Mom in a Mom-and-Pop Business?
Q: My wife and I are in our 30s. We're partners in a business that nets us about $80,000 per year. What's the best way to report our income on our tax returns to maximize our Social Security benefits?
A: Even though you're asking about your future …Read more.
Bleeding Hearts and Bootstraps
Q: I was surprised by the woman who wrote to you and said that people living on a small amount of Social Security were just lazy. Let me share my story to help this callous woman understand why people like me don't get very much from Social Security.…Read more.
Don't Base Critical Decisions on Prophets of Doom
Q: I'm about to turn 66. I want to put off starting my Social Security until age 70 because if I do, I'll get an extra $600 or so per month in a delayed retirement bonus added to by Social Security checks. But my husband said I should take my Social …Read more.
Geezers and Floozies
Q: I'm part of a group of old geezers who gets together every week at the local coffee place. Social Security is a frequent topic of conversation. At our last meeting, the subject of benefits for divorcees came up.
One of our geezers was married to …Read more.
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The Best Deal Is Behind Husband No. 1Q: I am 60 years old and still working. I was married for 16 years to my first husband before we divorced many years ago. He is 64 years old, has remarried and is not yet retired. I also remarried. Husband No. 2 is six years younger than me. We have been married 15 years, but have been legally separated since 2007. Could you please explain all of my Social Security options? Specifically, I'd like to know if I should file for Social Security at 62 or 66. Also, I want to know if there would be any advantage for me to stay married to my second husband. A: Let me begin by putting on my compassionate advice columnist hat and tell you that you and your second husband should talk things through to do all you can to get back together and make this marriage work. Now let me put on my pragmatic Social Security columnist hat and tell you that you should call the divorce lawyers tomorrow and dump husband No. 2 like yesterday's garbage! From a Social Security perspective, there is no reason for you to remain married to husband No. 2. In fact, there would be a couple of potential advantages to divorcing him. Advantage No. 1: A divorced woman can receive dependent wife's benefits on her ex's Social Security record even if he isn't receiving anything himself. He has to be old enough (i.e., at least 62) to be eligible for Social Security, but he does not need to have actually filed for benefits. On the other hand, a married (or separated) woman cannot receive Social Security spousal benefits unless the husband is drawing them himself. Advantage No. 2: As long as you're legally married to husband No. 2, you can't get any of your first husband's Social Security. So by divorcing No. 2, you open up the option of collecting Social Security from No. 1. So here's a quick rundown of your Social Security options — assuming you get the divorce.
YOUR OWN SOCIAL SECURITY BENEFITS It is your call whether you start your Social Security at 62 or your full retirement age of 66.
At whatever age you start your benefits, the Social Security Administration will pay your own Social Security first. Then they look to your husbands' records to see if you can get any extra benefits from their accounts.
HUSBAND NO. 1 Because he's older, you have more likelihood of collecting on his record sooner. The fact he remarried means nothing. Both you and his current wife could get benefits on his record without offsetting each other. While he's alive, you'd only be able to supplement your own Social Security with an amount equal to one-third to one-half of his rate. So unless he made a lot more money than you did, you wouldn't be due anything on his record until he dies. Then you could supplement your own Social Security benefits with an amount up to 100 percent of his rate.
HUSBAND NO. 2 You can't get anything on his record until he's at least 62 years old. Then the same rules apply as husband No.1. While he's alive, you're only due a small supplement from his Social Security account. But when he dies, you could get the higher widow's rate. And here's something you should know: You can't get benefits from both husband's Social Security accounts at the same time. You will only get benefits from the ex that pays the higher rate. There is one more little twist. If either No. 1 or No. 2 dies before you start getting Social Security, then there's another advantage to you. As a divorced widow, you would be able to take reduced benefits on your own record at 62 and then switch to full benefits on the deceased ex's record at 66. To find out more about Tom Margenau and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. COPYRIGHT 2009 CREATORS SYNDICATE INC.
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