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No more Social Security "Do-Overs"

12-21-2010 - The Social Security has eliminated the option that allowed seniors to retire early and still come out ahead.The "do-over" method allowed a person to retire before full retirement age, collect and invest reduced benefits for several years, then repay benefits and refile for increased benefits. It was a good deal for early retirees who could afford to pay back benefits. But from the government's government's perspective, it was an interest-free loan. The new rules set a twelve-month limit for withdrawing the application for benefits.

Even with this strategy eliminated, there are a number of other steps Baby Boomers can take to leverage their Social Security income. Taxation of benefits, when your spouse will file for benefits, whether you will continue to work, overall anticipated income, life expectancy and a host of other factors should be considered and discussed with your estate planning lawyer and financial advisor.

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