News & Information

Where is the Best Place in Invest Now?

Sounds similar to headlines I often see in the press. I recently found an investment for a client that is netting the client a return of 30% per month on her investment. Sound too good to be true? Read on.

The client is 64 years old and lost her husband two years ago. She contacted the Social Security office in her home town to set up her Social Security income payments. After discussing the options with the Social Security personnel, she decided to hold off taking her Social Security benefit, instead she decided to wait until she reaches the age of 66 and start her benefit based upon the benefit earned by her husband. By waiting until she is 66, the monthly benefit will go up by about 25%. The thinking was she could collect a higher benefit over the long haul by waiting for four years and letting her survivor benefit amount increase up to the maximum at age 66.

I did some research for the client and told her to call the Social Security office and request that her benefit be started immediately based on her retirement benefit. The rules entitle her to a benefit on her own earnings, in addition to that from her husband’s earnings. The Social Security office confirmed she could claim her own retirement benefit and get a check for $450 per month. Most importantly, when she turns 66 she can then switch back to her husband’s benefit and get the same approximately $2,000 per month benefit based on his record. Her benefit at age 66 will be the same as if she had not taken her own benefit earlier. This ability to switch from one benefit to another is unique to Survivor benefits. You cannot switch from one benefit to another while both spouses are alive.

The client asked me to help her analyze her current financial condition. I provided her many specific recommendations concerning her bank accounts, debt, taxes, insurance, investments and funding her retirement. The client paid me a fee of $1,500 for my efforts. Most of the time it is difficult, if not impossible to define the value of our service to the client in dollars and cents. But for reviewing her Social Security benefit eligibility the client will receive an additional $9,000 over 20 months until she is age 66. That is a 30% return on her investment every month for 20 months, well north of a 300% annualized return. This holistic approach to financial planning is what is truly rewarding. If anyone knows of a better investment, please let us all know.

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Contact Us:

Stan Johnson, Registered Investment Advisor
Comprehensive Financial Planning, Inc.
1075 Main Avenue, Suite 216
Durango, CO 81301
970-385-5227
Toll-Free: 877-901-5227
E-mail: Stan@CompFinancial.com