Answering Popular Listener Questions, Ep #92

<p>This episode of the Retirement Made Easy podcast is a mix of the old and the new. I revisit some listener questions that are currently relevant as well as answer a NEW question that’s debunking a once-popular social security disbursement method. What is it? You’ll have to give this episode a listen to learn more. </p> <p> <<<<<<<<<<<<<<<PLAYER CODE GOES HERE>>>>>>>>>>>>>>>></p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[1:40] Get your FREE pre-retirement assessment</li> <li>[2:15] Question #1: Debunking the “file and suspend” disbursement method</li> <li>[6:07] Question #2: Required minimum distributions and Roth conversions</li> <li>[7:18] Question #3: Do you take the lump-sum pension or monthly checks?</li> <li>[10:16] Question #4: What’s the best way to pay for Medicare part B?</li> <li>[13:45] Question #5: Should you invest in Series I Savings Bonds?</li> <li>[16:03] Question #6: What an inheritance means for your retirement</li> </ul> <h2>Debunking the “file and suspend” disbursement method</h2> <p>After doing some research, Paul concluded that filing and suspending his benefit at his full retirement age would be the best scenario for him. Why? At any point after full retirement, he could go back to social security and say he messed up and wanted to claim his benefit at his full retirement age. What would happen? They’d write him a check for a lump sum for the difference of those years. </p> <p>Here’s the problem with the file and suspend method: The Bipartisan Act of 2015 eliminated the lump sum option. Now, if you file and suspend, they will NOT write you a lump sum. While this idea doesn't work anymore, we’ve certainly used this method in the past.</p> <p>Another popular loophole was to file a <em>restricted application</em> for your spouse. If Paul’s benefit was $3,000 and his wife’s was $2,000 a month, Paul could file a restricted application. His wife would still get the $2,000 but he’d get half of her benefit—$1,000. Then, he’d let his own benefit defer until