Social Security is a complex program, but many benefits are available to those who understand all of its rules. Yet a budget proposal from the Obama administration could threaten one often-followed Social Security strategy known as file and suspend, with the budget's language suggesting that the strategy leads to excessive benefits.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, runs through the file-and-suspend strategy and the reason why some think that the budget proposal attacks it. Dan notes that the benefit is a valuable one for forward-thinking couples, with the ability to get spousal benefits now and higher benefits on your own work history later. With more two-income earner families now than when Social Security was first implemented, one could argue that spousal benefits don't make as much sense in most cases. Dan concludes that it's too early to tell what fate the proposal will have, but Social Security is certain to be a focal point of controversy for years to come.