6 ways to get the most out of social security

Social Security took a cut of every paycheck that we won, and the money was used to pay the benefits of our grandparents, parents and older brothers and sisters. Now, finally, it's our turn, and it is natural that we want our benefits, too. However, the procedures for collecting social security are incredibly complicated, and vary depending on your marital status, how long you worked, when you worked and when you retire.
Meanwhile, we hear dire predictions that Social Security is running out of funds, benefits will be reduced and eligibility rules may change. Nobody knows what the long-term future holds, but in the current program, which is not likely to change much in the short term, there are six proven to make the most of the program strategies:
1. Work time. Social Security says it appears your advantage by calculating "average indexed monthly earnings during the 35 years in which you earned the most." Then, of course, a way to maximize your benefit is to a full career, working at least 35 years. Maybe this seems like a long time, but look at it this way: If you retire at full retirement age (66 for most of us), you can still get the maximum amount of benefits, even if you have not started your career until you were 31, or if you have started working at 21 years and 10 years off to raise children.
2. Having a good job. Social Security sets a maximum amount of wages that are subject to payroll tax, currently U.S. $ 113,700 per year, which is the same fee will be credit to your advantage. This amount is adjusted for inflation. The maximum amount in 2000 was $ 76.200 and in 1990 is was $ 51,300. This is easier said than done, but how to maximize your profit is to win the maximum amount set by the Social Security throughout your career. If you earn at least 51,300 dollars in 1990, U.S. $ 76 200 in 2000 and 113 700 U.S. dollars today, you are eligible to receive the maximum benefit from social security.
3. Do not retire early. Workers have the right to start taking Social Security benefits at age 62, but the amount you receive is reduced by 62 to nearly 25 percent. Also, if you start Social Security before full retirement age, and you earn more than $ 14 160 per year, the government began temporarily stopping your benefits. Conversely, if you work beyond the age of full retirement, you receive a bonus of about 7 percent per year until age 70. There is no additional benefit to work 70 years ago.
4. Do not make too retired. If you are married and file a joint tax return, your Social Security benefits are not taxable if your combined income is less than $ 32,000. Half is taxable if your income is between $ 32,000 and $ 44,000, and 85 percent of your benefits are taxable if your income exceeds $ 44,000. If you had a good career and you do not have an early retirement, you will probably be subject to the rule of 85 percent. Do not get excited, this is the only progressive aspect of social security. But there is a way around this: do not get married. Two singles can earn up to $ 50,000 instead of $ 32,000, before their benefits are subject to federal income tax.
5. Living in a State Tax friend. There is not much you can do to avoid federal taxes, unless you take a vow of poverty, but you can do something on the taxation of the state. Most states do not levy income tax on social security benefits, including retirement paradise like Florida, Arizona and Carolina. But about a dozen states are exact tax income of your social security benefits, including red states like Kansas and Utah as well as blue as Connecticut and Vermont state.
6. Stay healthy. By far the most important in how you look at the social security factor is not how much you won, but how long you stick around to receive benefits. You can work all your life, but if you die the day after your retirement, all is lost. The best way to maximize social security is to eat well, go to the gym, get your annual exam and all others take care of you so that you can continue to receive this monthly benefit through your 70s, 80s and 90s .
         Stars Tom is a former leader of the edition was eased into early retirement in his mid 50 years. He lives in the area and blogs on the fly to New York at age 60, where he covers health, finance, retirement, and other concerns of baby boomers who realize that somehow they have grown up.