1. For Presenter Use Only

2. Smart Ways to Get More Social Security Income John/Jane Smith, Advisor 111.111.1111 (office) j.smith@xyzadvisor.com www.xyzadvisor.com

3. When To Take Social Security 3 Choose Your Income Election Wisely! Choose wisely 100’s of combinations More important than ever

4. When To Take Social Security 4 John Smith, Advisor NOTE: This Presentation is not endorsed by Social Security Administration, nor are we affiliated with Social Security

5. When To Take Social Security 5 We’ll Learn… Why file correctly very first time 6 strategies for more income Your best-fit claiming method

6. When To Take Social Security 6 We’ll guide you, offer choices... Social Security knowledge for claiming Choices: A.Social Security election and the retirement financial “BIG PICTURE” B.Social Security outside resources to self-direct your election.

7. When To Take Social Security 7 Wants Needs Travel Hobbies Food Utilities Shelter Phases of Retirement... Income Reliability 60 75 85+ “Go – Go”, Initial “No – Go”, Mature “Slow – Go”, Seasoned Social Security Other Assets

8. When To Take Social Security 8 An Important Decision... $1,300,000 $500,000 Maximize SS Total Retirement Income $1,800,000 Claim SS Early Total Retirement Income $1,470,000 $970,000 Social Security Lost $330,000 $500,000 Social Security Other Assets

9. When To Take Social Security 9 Social Security Basics… The “Octopus” Terms Solvency Benefit calculation Life expectancy

10. When To Take Social Security 10 The Octopus

11. When To Take Social Security 11 Assumptions & Terms Rules, case studies presented herein apply to those of us born between 1943 - 1954 SS - Social Security FRA - Full Retirement Age, age 66. You get 100% of PIA PIA – Primary Insurance Amount, monthly SS income if begun at FRA

12. When To Take Social Security 12 Assumptions & Terms COLA – Cost of Living Adjustments Primary Wage Earner - Spouse with higher PIA Secondary Wage Earner - Spouse with lower PIA LE - Life Expectancy

13. When To Take Social Security 13 How is Income Calculated? SS takes your highest 35 years earnings (zeros included) and applies wage index factor to adjust forward and translates to current dollars The sum of these index adjusted earnings are divided by the total months (12 X 35=420) which generates your AIME (Averaged Index Monthly Earnings)

14. When To Take Social Security 14 How is PIA Income Calculated? 90% of $791 (0-791) =$ 712 32% of $3,977 (4,768-791) =$1,273 15% of $1,232 (6,000-4,768) =+ $ 185 PIA = $2,170 For example, if your AIME is $6,000, your PIA is: 2013 Bend Points are $791 and $4,768

15. When To Take Social Security 15 Life Expectancy

16. When To Take Social Security 16 Life Expectancy Statistics Age-80: per 1000 females born in 1927, 620 remain Source: Social Security, Actuarial Publications, 2007 Period Life Table

17. When To Take Social Security 17 Six Strategies Claim & get it right the first time Don’t elect too early If married, use your living spousal income benefit

18. When To Take Social Security 18 Six Strategies If married, leverage the survivor benefit income stream Compute your optimal benefit Align your election strategy with your overall portfolio

19. When To Take Social Security 19 Strategy #1: Claim Correctly the 1st Time The 1-Year “Get-it-Right Rule” The Voluntary Suspension “Supersize” Opportunity

20. When To Take Social Security 20 Strategy #2: Don’t Elect too Early Social Security best-fit discussion Consider life expectancy, single, married, needs…

21. When To Take Social Security 21 Strategy #2: Don’t Elect too Early Claimant Age Benefit Amount % of PIAClaiming Zone Benefit Adjusted 2.8% for Inflation 62172575 Actuarial Reduction “Penalty Zone” 1725 631840801891 642001872114 652139932323 662300100 PIA Income Amount 2568 672484108 Delayed Retirement Credits “Bonus Zone” 2851 6826681163148 6928521243460 7030361323786

22. When To Take Social Security 22 Strategy #2: Don’t Elect too Early Cumulative Lifetime Income Life Expectancy: 50% Chance of Living to... One of a Couple 92 Women 88 Men 85 Break Even 79

23. When To Take Social Security 23 Strategy #3: Spousal Income Benefit Harness the power of little-known spousal income benefit

24. When To Take Social Security 24 Strategy #3: Spousal Income Benefit Spousal Benefit =½ your spouse’s PIA at your FRA

25. When To Take Social Security 25 Strategy #3: Spousal Income Benefit John’s PIA = Jane’s PIA = Jane’s spousal benefit at FRA = $2200 $ 300 $1100

26. When To Take Social Security 26 Strategy #3: Spousal Income Benefit Spousal Income Benefit Rules… Spouse at FRA gets 50% of other spouse’s PIA Benefit reduced pro-rata, between 62 & 66 (35% at age 62) One spouse must claim (or file and suspend @ FRA) for other spouse to collect

27. When To Take Social Security 27 Strategy #4: Survivor Income Benefit Plan for your surviving partner’s income stream

28. When To Take Social Security 28 Strategy #4: Survivor Income Benefit Jim & Linda Heartland $2,300$300

29. When To Take Social Security 29 Strategy #4: Survivor Income Benefit $2,300 Jim passes on; Linda gets…

30. When To Take Social Security 30 Strategy #4: Survivor Income Benefit Jim dies at 77 and Linda collects for 16 years to age 93

31. When To Take Social Security 31 Strategy #5: Compute Your Optimal Benefit Timing… PIA, life expectancy, relationship history, financials

32. When To Take Social Security 32 Strategy #5: Compute Your Optimal Benefit

33. When To Take Social Security 33 Strategy #5: Compute Your Optimal Benefit

34. When To Take Social Security 34 Case 2: The Heartlands “File and Suspend” Case 1: The Metros “Claim Some Now, More Later” Strategy #5: Compute Your Optimal Benefit - Couples

35. When To Take Social Security 35 Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros Bob Metro age 63 (LE = 82) Secondary Earner ------------------------------------------ PIA $2,000 Mary Metro age 61 (LE = 86) Primary Earner ------------------------------------------ PIA $2,200

36. When To Take Social Security 36 Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros Claims age 68 $2307 for life (Bob’s PIA = $2000) Collects $1000 between 66-70, Increased benefit at 70 of $2904 for life

37. When To Take Social Security 37 Strategy #5: Compute Your Optimal Benefit Case Study 1: The Metros

38. When To Take Social Security 38 Strategy #5: Compute Your Optimal Benefit Case Study 2: The Heartlands Jim Heartland age 66 (LE = 77) Primary Earner ------------------------------------------ PIA $2,300 Linda Heartland age 61 (LE = 93) Secondary Earner ------------------------------------------ PIA $300

39. When To Take Social Security 39 Strategy #5: Compute Your Optimal Benefit Case Study 2: The Heartlands Age 66, files and suspends Age 70, collects $3,036 for life...Age 77, dies Age 63, collects $825 Ages 73-92 a fter Jim dies, collects $3,036

40. When To Take Social Security 40 Strategy #5: Compute Your Optimal Benefit Case Study #2: The Heartlands

41. When To Take Social Security 41 Strategy #5: Compute Your Optimal Benefit Case 3a: Sally Solo, Single Sally Solo age 60 (LE = 88) PIA $1,600

42. When To Take Social Security 42 Strategy #5: Compute Your Optimal Benefit

43. When To Take Social Security 43 Sally Single Maximizes Her Social Security Income Strategy #5: Compute Your Optimal Benefit Cumulative Lifetime Income Begin at 70 = $481,536 LE = 88 Begin at 62 = $376,584

44. When To Take Social Security 44 Strategy #5: Compute Your Optimal Benefit Case 3b: Sally Divorced Married > 10 years Ex-husband PIA = $2,000 Takes ex-spousal income benefit then switches to own

45. When To Take Social Security 45 Strategy #5: Compute Your Optimal Benefit $1,000 monthly ex-spousal income Switch to own benefit at 70

46. When To Take Social Security 46 Strategy #5: Compute Your Optimal Benefit

47. When To Take Social Security 47 Strategy #5: Compute Your Optimal Benefit Case 3c: Sally Widowed Married > 9 months Deceased husband’s PIA = $2,000 Takes survivor benefit then switches to own

48. When To Take Social Security 48 Strategy #5: Sally PIA = $1,600 Deceased Spouse PIA = $2,000 Switch to own benefit at 70

49. When To Take Social Security 49 Strategy #5: Compute Your Optimal Benefit

50. When To Take Social Security 50 Strategy #5: Compute Your Optimal Benefit

51. When To Take Social Security 51 Strategy #6: Align Your Election Strategy Align your election strategy with your overall portfolio

52. When To Take Social Security 52 Strategy #6: Align Your Election Strategy Income Investment accounts 401(k) IRA Life insurance Mortgage

53. When To Take Social Security 53 Social Security Choice Asset Placement Sequence of Withdrawal Strategy #6: Align Your Election Strategy INTELLIGENCE OF DECISION % Rise in Standard of Living Provisional Income SS Tax Age 70 ½ RMD

54. When To Take Social Security 54 Social Security Choice Asset Placement Sequence of Withdrawal Social Security & The Big Picture INTELLIGENCE OF DECISION % Rise in Standard of Living

55. When To Take Social Security 55 Summary Filing correctly you can gain $100s of thousands of income Get it right the first time (one year ruling) Use the 6 strategies you’ve learned today We look forward to helping you

56. When To Take Social Security 56 Next Steps... Make wise choices!

57. When To Take Social Security 57 Choice A: Get the big picture “edge”

58. When To Take Social Security 58 Choice B: SS Tools to Self-Direct

59. When To Take Social Security 59 John Smith, Advisor NOTE: This Presentation is not endorsed by Social Security Administration, nor are we affiliated with Social Security