Thursday, June 28, 2012

The Viagra College Fund - Social Security Secret

Social Security Poster: old man
 (Photo credit: Wikipedia)
I recently came across a little know Social Security secret. This loophole in the Social Security rules and regulations is going to make a lot of retired fathers very happy. According to InvestmentNews.com, a parent who is receiving retirement benefits, can also receive benefits for their under 18 year old children. 

InvestmentNews' contributing editor Mary Beth Franklin had received a call from a client who told her that he was 68 years old and was collecting his Social Security retirement check. He went on to say he had a 5 year old child through remarriage.

Financial Planner Mary Beth Franklin told him that his child was qualified to also receive a check from Social Security. Franklin went on to say that the client called a few months later saying his child was now receiving a check for almost half of what he was receiving.

I couldn't believe this was really in the Social Security rules. I went to the Social Security Website. Here: Benefits for children


It clearly states that benefits could go to your children if you were disabled or the parent died. This is understandable. But it also says, if you are just retired.

The rules also say that the child could continue to receive benefits until the 19th birthday if secondary school was not completed yet.

The whole thing is crazy.


InvestmentNews' contributing editor Mary Beth Franklin did finish the story with some advice for the retired father. She said to put the income into a 529 College Savings Plan thus the name "Viagra College Fund".
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2 comments:

  1. That is amazing, I had no idea. Thanks for sharing this info!

    ReplyDelete
    Replies
    1. It's incredible. My daughter will turn 18 when I'm 62. Too late. My older brother has a son and he will be only ten when he retires. Amazing.

      Delete

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