THE CHARITABLE GIFT ANNUITY

Probably this question has never been presented to you, and it may not be appropriate for you to consider.

However, if you will recall, your check from social security works like a pension check - it stops on death.   The exception, of course, is that your spouse will continue to receive a check until death, at which time the check stops.  If you are a single retiree, and you pass on, there is no further benefit payable.

For example, a single man who tries to decide whether to take a check at the age of 62 must recognize that failure to do so will mean that there will be NO VALUE to all the taxes he paid in over the years.  It will be totally lost to his estate.

As we said, it works differently  for a married couple, as the income lasts until the surviving spouse passes.

Many advisors point out that the longer you defer starting your social security check, the large will be the ultimate monthly benefit you receive.  While there is no doubt that this is true, the real question is whether that is the best alternative.

Consider this:   You can use the monthly income (or a portion of it), to set up a benefit account with an insurance company.  A 62 year old man, for example, could have a $500,000 benefit account that would be available to him if he ever needed long term care or home care.  If not needed, the full amount would be payable to his estate.

If your overall circumstances allow you to use your social security check in this manner, I advise you to get exact figures from a responsible agent for your own particular situation.

Even if the ‘benefit’ account has no appeal to you,  you are well advised to take the social security check as soon as you are eligible, using it to make an outside investment that you can have full control over.