Increase Social Security Benefits for the Wealthy

Politicians like to talk about “fixing Social Security” to that it will be financially health for the long term, 75-100 years from now. However, no particular solution has emerged. One possible solution might be to increase Social Security benefits for the wealthy. In this report, Social security expert Brian Doherty explains why his strange-sounding suggestion makes great sense.

Brian Doherty

Brian Doherty

Doherty points out that one presidential candidate has proposed means testing for Social Security benefits as a means of improving the system. Under this plan, people who made over a certain amount would receive lower benefits, and those who made a lot of money would get no benefits at all. The theory, of course, is that wealthy people don’t need the money.

Doherty says this is a bad idea for two reasons. One is that Social Security works so well because everyone who pays into the system gets benefits back when they retire. There is no discrimination. The bigger problem, Doherty says, is that this approach has almost no effect on the long-term funding problems that concern so many people.

Doherty suggests that one approach to fixing Social Security funding would be to eliminate the FICA tax earning cap. The FICA tax is what funds Social Security. The current FICA tax earning cap is $118,500. All earnings above that amount are exempt from the tax. Doherty notes that only about 6% of Americans fall into that group.

Doherty says that eliminating the cap would resolve “80 to 90 percent of long-term funding problems.” This simple step would fix Social Security without requiring any benefit cuts. The people who fall into that 6% group would probably be unhappy about paying more FICA taxes. However, they would probably be very happy when it came time to claim their benefits because the benefits would be much larger. Doherty’s reaction: “I think that’s a good thing.”

Brian Doherty is the author of a new book “Getting Paid To Act Now,” which reveals his groundbreaking strategy on how to maximize Social Security benefits. He is a nationally-recognized expert on Social Security claiming strategies and a top-rated speaker and media commentator on this topic. He began his career as a financial advisor with Dean Witter. He is President of Filtech, a consulting company specializing in Social Security claiming strategies. The Legal Broadcast Network is a featured network of the Sequence Media Group.

Why Your Social Security Statements Are Wrong

If you haven’t retired yet, you may be curious what your Social Security benefit amount will be. You may have gotten a statement from Social Security showing three amounts, or you may have looked it up online. But whatever you have seen, you have not gotten the right information. In this report, Social security expert Brian Doherty explains what you may not be aware of when it comes to Social Security benefits.

Brian Doherty

Brian Doherty

Doherty says that the statements will show you three possible benefit amounts: (1) the benefit amount at your full retirement age (for many people, this is 66), (2) the benefit amount at age 62, the earliest age at which you can start claiming benefits, and (3) the benefit amount you would receive at age 70, the latest you can claim. This is also the largest amount you can receive.

Doherty points out that the benefit amounts shown for ages 66 and 70 are wrong. They are too low. The reason the amounts shown are too low is that they do not reflect the larger amounts you would receive because of cost-of-living adjustments (COLA). The effect is especially great for those who wait until age 70 to claim benefits.

Doherty explains that, if you hold off on claiming your benefits until age 70, Social Security will go back and credit your benefit amount with eight years of COLAs. “They’ll give you eight years of . . . retroactive COLA credits.” Those COLAs will be applied to your age 70 benefit amount. That will make your benefit amount substantially larger than the benefit statement says. If you wait until age 66 to claim your benefits, you will receive four years of retroactive COLA benefits.

The enhancements from the retroactive COLA benefits make it an even better deal to wait until age 70 to claim your benefits. Doherty says that all of this is thoroughly explained in his new book, “Getting Paid to Act Now,” that can be purchased at the link shown. Think carefully before you claim your benefits.

Brian Doherty is the author of a new book “Getting Paid To Act Now,” which reveals his groundbreaking strategy on how to maximize Social Security benefits. He is a nationally-recognized expert on Social Security claiming strategies and a top-rated speaker and media commentator on this topic. He began his career as a financial advisor with Dean Witter. He is President of Filtech, a consulting company specializing in Social Security claiming strategies. The Legal Broadcast Network is a featured network of the Sequence Media Group.

U.S. Adds 287,000 Jobs in June

The Department of Labor’s monthly report on America’s employment situation brought some good news: 287,000 jobs were added in June. The nation’s unemployment rate rose to 4.9%, but economists attribute that figure to the expansion in the pool of workers. This is especially good news for the economy after the new job numbers for May came in at only 11,000. Jobs increased in almost every sector of the American economy. The exception was the mining industry. Since September 2014, mining has lost 211,000 jobs.

Forbes

Forbes

The good numbers in the June jobs report has eased fears after May’s numbers that the economy was entering a downturn. However, the numbers in the June report pre-date the Brexit vote, and it is not yet clear what the long-term effect of that vote will be.

While the future is still an unknown quantity, the June job numbers are a hopeful sign. For example, the June numbers bring the average three-month job gains to 147,000. Some commentators view the June report as a sign that the U.S. economy is continuing on a path to steady recovery.

The Sequence Media Financial Network is a featured network of Sequence Media Group.

How Does the Brexit Impact the US Economy? Rudy R. Miller Explains

The United Kingdom’s vote on June 23 to leave the European Union (a 52% to 48% final tally) was the biggest story of the day. The financial world has been scrambling in the wake of Brexit. The Miller Group’s CEO, Rudy Miller, a frequent guest, discusses the historic vote and what it will mean in the longer run in this report.

The short version of the event, Miller says, is that the citizens of the UK made the political decision to leave the EU. One aspect of the vote is that it was a move towards independence, a decision that the country should not be governed by the EU. In addition to the issue of political independence, there is a matter of economic independence. “The EU is telling you what hair dryer to buy.” Miller points out that the British people have a strong sense of independence, and they spoke out at the polls. Britain has had a long history with the EU, but it will be moving away.

Rudy R. Miller

Rudy R. Miller

The vote by British voters to leave the EU has caused Prime Minister David Cameron to resign. He will step down in October. Miller says that this causes some obvious uncertainty politically and in the financial world, as people wonder who will be the next prime minister and what the country’s political direction will be. Miller quotes a friend in London who said, “It’s a bloody mess on the market, but many people are celebrating their independence.”

As to what happens next, Miller explains that the Treaty of Lisbon contains Article 50 that provides a means for a country to leave the EU. The exit process would take at least two years, during which time the UK would continue to abide by all EU treaties and laws. During that time, Britain would negotiate the terms of its departure. Issues include financial regulations, trade arrangements, and the movement of British nationals through EU countries.

Miller notes that Britain’s decision to leave the EU might encourage similar referendums in other countries or efforts to get special accommodations from the EU. There will be elections soon in several European countries. There has also been talk that Scotland, where the citizens voted to stay in the EU, might seek independence from the UK so as to join the EU.

As to the financial effect of the Brexit vote, Miller believes it will be less than some are saying. “It’s not 2008, when we had our banks in a financial economic crisis.” The events of 2008 left banks in Europe and America stronger than they were. However, there will be many financial jobs that will move from London to other places because of Britain’s decision.

Miller does not believe that the drop in stock markets today is the first sign of a major recession. He sees it as “a flight to safety.” Miller points to the gold market, which reached a two-year high today. Treasury bonds are selling well. Notwithstanding some bumps on the road, Miller believes that the US economy is stronger than any of the European economies. He also believes that the Fed is glad it did not raise interest rates, and he believes there will be no further increases in 2016.

Rudy R. Miller is the Chairman, President, and Chief Executive Officer of The Miller Group as well as Miller Capital Corporation, an affiliated company The Miller Group, established in 1972. He was the Founder and Chairman of the Board of Miller Capital Markets, a FINRA member investment banking firm, from 2006 through 2012. He has over 35 years of executive-level experience owning, operating and advising corporations, from large NYSE listed public companies to emerging-growth private companies. His extensive operating and advisory experience provides clients with a comprehensive understanding into the challenges of successfully navigating a business through varying economic climates. The Sequence Media Financial Network is a featured network of Sequence Media Group.