Written by Broadridge Investor Communication Solutions, Inc. and Provided by Ken Fortuna, Financial Advisor with Waddell & Reed.

Most people will receive Social Security benefits at some point in their lifetimes, but how much do you know about this important source of income?

Take this quiz to learn more.

Questions

1. Can you receive retirement and disability benefits from Social Security at the same time? 

A. Yes
B. No

2. If your ex-spouse receives benefits on your earnings record, your benefits will be reduced by how much?

A. Reduced by 30%
B. Reduced by 40%
C. Reduced by 50%
D. Your benefit will not be reduced.

3. Monthly Social Security benefits are required to be paid by which of the following methods?

A. Paper check only
B. Paper check, direct deposit, or debit card
C. Direct deposit or debit card

4. Are Social Security benefits subject to income tax withholding?

A. Yes
B. No

5. Once you start receiving social security retirement benefits, you can withdraw your claim if how much time has elapsed?

A. Less than 12 months since you’ve been receiving benefits
B. Less than 18 months since you’ve been receiving benefits
C. Less than 16 months since you’ve been receiving benefits

Answers

1.-B. No. If you receive a disability benefit, it will automatically convert to a retirement benefit once you reach full retirement age.

2.-D. Your benefit will not be reduced if your ex-spouse receives Social Security benefits based on your earnings record.

3.-C. Starting at full retirement age, you will earn delayed retirement credits that will increase your benefit by 8% per year up to age 70. For example, if your full retirement age is 66, you can earn credits for a maximum of four years. At age 70, your benefit will then be 32% higher than it would have been at full retirement age.

4.-C. Since 2013, the Treasury Department has required electronic payment of federal benefits, including Social Security. You can sign up for direct deposit of your benefits into your current bank account or open a low-cost Electronic Transfer Account (ETA) at a participating financial institution. Another option is to sign up for a Direct Express® prepaid debit card. Under this option, your Social Security benefits are deposited

Did you know that 94% of all workers are covered under Social Security?
(Source: Social Security Fact Sheet on the Old-Age, Survivors and Disability Insurance Program, July 2017)

Call, click or stop by my office today and allow me to help guide you through financial planning, retirement, investments, business planning and risk management.

My goal is to make it simple and straightforward to identify and plan for your financial goals, no matter what stage of life you are in.

Accumulation

A saving and investing period that usually runs from your early working years until your late 40s.

Pre-Retirement

A time to manage your funds and transition to more conservative investing, usually your 50s and early 60s.

Retirement

The time when you begin your post-work life and live off your investment income.

Legacy

A time to pass down what you’ve learned and gathered to the next generation.

Ken Fortuna, M.B.A.
Financial Advisor at Waddell & Reed, Inc.

Address: 2515 Foothill Blvd Suite 101, Rock Springs, WY 82901
Phone: 307-382-2944
Website: kenfortuna.wradvisors.com

This article is meant to be general in nature and should not be construed as investment or financial advice related to your personal situation. The article was written by an independent third party, Broadridge Investor Communication Solutions, Inc.  (Copyright 2018) and is provided for informational and educational purposes only.


Securities and Investment Advisory Services offered through Waddell & Reed, Inc, a Registered Broker-Dealer, Member FINRA/SIPC and Federally Registered Investment Advisor.


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