Mary Beth Franklin (contributing editor for investmentnews.com) published an interesting piece recently. In it, she describes a Social Security benefit strategy which she titles The Viagra College Fund.
This college fund strategy applies to retirement age fathers with children who are still minors. These children can be your natural children, adopted children or dependent stepchildren.
The first step of the strategy is for you to reach the official retirement age. Once you hit full retirement age, your earnings cap is removed and you can continue to work without lowering your benefits. You are also allowed to postpone filing, electing to suspend your Social Security benefits instead.
If you have a child who is a minor, your suspension will automatically trigger a monthly payment for your dependent. This payment is worth 50% of the full retirement benefit you would receive.
To further improve the situation, the payments received by your dependent do … Read More