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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10093
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I own my own business. I am 67 years old (July 3rd). I can

Customer Question

I own my own business. I am 67 years old (July 3rd). I can pay myself any amount I want to and pay the larger amount to my wife who is an officer in the Corporation. I normally pay myself a base salary plus bonus at the end of December. Should I start taking social security now, wait until I am 70, pay myself $40-$50K and my wife a much large salary since she is only 59?
Submitted: 2 months ago.
Category: Social Security
Expert:  Lane replied 2 months ago.

Hi, My name's Lane. I can help here.

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Regarding waiting until age 70 for your own benefit, many times the conventional wisdom is to ALWAYS wait as long s possible, but you've already gotten to Full Retirement Age (FRA) and even a added year's work of delayed retirement credit. ... so unless you think you'll live well into your ninety's taking now (especially since there is no longer a reduction in benefits for working while taking (after FRA)) ... taking your benefit now may very well be the "sweet spot."

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After running hundreds of these scenarios for clients, it's becoming clear that forgoing another three years of full benefits take a long life expectancy for the additional benefit to really break even for you.

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And paying your wife a much larger salary and having HER defer at least until age 66 will both eliminate that 25% reduction for her taking early AND raise her Average Indexed Monthly Earnings (AIME) making that FRA benefit higher than fs she stayed at the same earnings level.

Expert:  Lane replied 2 months ago.

Yes, your intuition is good here ... also, that AIME number is ***** on the 35 highest years' earnings .. so if you wife hasn't worked 35 years in the system adding higher earnings AND replacing zeros in the average will REALLY take it up.

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Please let me know if you have any questions at all, before rating me

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit") ... Otherwise JA doesn't credit me for the work here.

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Thank you!

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Expert:  Lane replied 2 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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But again, let me know if you need more here.

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Lane

Expert:  Lane replied 2 months ago.

Did my answer help?

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Let me know if you need more or want to continue the dialogue

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Lane

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