SOFTWARE
Improve Social Security planning with software
Social Security analysis highlights your value as a financial advisor by quantifying the decision , and by illustrating the impact .
Joe Elsasser , CFP ®
Joe is founder and president of Covisum , a financial tech company focused on creating software that improves lives through better financial decisions . Covisum helps financial advisors serving clients in or near retirement and powers some of the nation ’ s largest financial planning institutions . Contact Joe at jelsasser @ covisum . com .
Millions of Americans rely on Social Security benefits to supplement their retirement income , and most financial advisors recognize the importance of being well-versed in the rules and regulations surrounding Social Security . However , while many advisors can talk about claiming strategies and how to navigate the program , those who are equipped with good financial planning software can stand out from the crowd .
Show vs Tell
It ’ s important to be able to tell clients about the Social Security claiming options available to them but using a Social Security optimizer can help you demonstrate the value of a smart claiming decision . Showing clients a Social Security analysis highlights your value as their financial advisor in two ways ; by quantifying the decision , and by illustrating the impact .
When clients can visualize the dollar difference between claiming strategies , your words have more meaning . Some software allows you to compare more than one claiming strategy side-by-side , so clients can clearly see the difference . This feature is incredibly helpful , especially for married clients . Whenever you have more than one Social Security benefit in a retirement strategy , claiming decisions get more complex . Software can help you examine each benefit separately and in the context of the whole financial plan , to help you determine the optimal time to claim each benefit .
Additionally , some software allows you to demonstrate the impact of cuts to Social Security benefits . The latest Social Security Trustees Report projected the trust fund for OASI will be depleted by 2034 . Benefits will be cut by 23 % if no changes are made to shore up the program . While we are likely to see some legislative changes , it ’ s important to prepare clients . Using software to show clients how their retirement would be impacted by benefit cuts , helps you alleviate concerns and create contingency plans if necessary .
What to look for in software If you ’ re looking for Social Security planning software , there are several good options on the market . Good software has a couple key elements : Simple clear visuals are a must . Technology can and should help you explain elaborate concepts in a way that ’ s easy for the average retiree to understand . Make sure the visuals in the software you ’ re using don ’ t overcomplicate important points . We all know how tiresome it can be to get in touch with tech support when you need it . If you ’ re in the market for a Social Security optimizer , make sure the software support team is accessible and knowledgeable . It seems like a small thing , but it can make a big difference . You want reliable support that can address your issue before your next client meeting . If you have any clients in or near retirement , and you don ’ t subscribe to a Social Security optimizing software you should . Social Security is the backbone of most retirement strategies . Financial technology makes it easy to answer your clients ’ and prospects ’ Social Security questions and move into the broader retirement strategy .
46 Perspectives Q3 2022