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Social Security Social Security — It’s complicated How much do you really know about Social Security? Eventually, most people will have to make some decisions regarding their Social Security benefits. Understanding some of the issues that may arise can help you in your retirement planning. Here are some commonly asked questions. When can I receive benefits? Your “full retirement age” is the age at which you will be eligible to start receiving full (unreduced) Social Security benefits. It’s based on the year you were born. If you were born in: Full retirement age is: 1943 – 1954 66 1955 – 1959 between 66 and 67 1960 and later 67 You can start collecting benefits as early as age 62. However, your benefits will be reduced a fraction of a percent for each month before your full retirement age. Can I delay collecting Social Security benefits? You can postpone signing up for Social Security until after your full retirement age. If you delay taking benefits, your benefit will increase by a certain percentage, depending on your date of birth, until you reach age 70. If you were born in 1943 or later, your benefits will increase by 8% each year you delay taking benefits until you reach age 70. For example, if you were born in 1960 and decide to postpone taking benefits, your benefit will increase 8% per year up until age 70. Here’s how it’s calculated: If you start receiving benefits at age: Multiply your fullretirement benefit by: 67 100% 68 108% 69 116% 70 or later 124% How are my benefits calculated? To be eligible to receive Social Security benefits, you need to work and pay Social Security taxes. You can earn up to four “credits” for each year you work. You need at least 40 credits to receive benefits. In 2014, you must earn $1,200 to get one Social Security work credit and $4,800 to get the maximum four credits for the year. When you retire, your Social Security benefit will be based on the 35 years you earned the most money. Keep in mind, however, that there is a maximum benefit amount. For example, the maximum monthly benefit for a worker retiring in 2014 at full retirement age is $2,642. The average monthly benefit is $1,294. Will I have to pay taxes on my Social Security benefits? Depending on your income, a portion of your Social Security benefits may be taxed. Your income includes half of your Social Security benefits plus any wages, self-employment income, dividends and interest (including tax-exempt interest), and any other income you earn. If you file a federal tax return as an individual, you may have to pay income tax on up to: - 50% of your benefits if your income is between $25,000 and $34,000 - 85% of your benefits if your income is more than $34,000 If you file a joint federal tax return, you may have to pay income tax on up to: - 50% of your benefits if your income is between $32,000 and $44,000 - 85% of your benefits if your income is more than $44,000 What if I work part-time during retirement? If you retire early and then decide to go back to work after you start receiving Social Security benefits, earning too much could reduce your benefits. In 2014, if you earn more than $15,480 and are under your full retirement age, your benefits will be reduced $1 for every $2 you earn above that limit. There is a different limit and benefit reduction formula for the year you reach full retirement age, and only amounts earned before the month you reach full retirement age count. Beginning the month you reach your full retirement age, there is no limit on earnings.

Wealth Management Strategies Designed to Help You Move Forward We are avid listeners—and take the time to really understand your current needs, concerns about managing your wealth and ideas for the future. To help you hone your vision, we use the Merrill Lynch Wealth Management Process, a disciplined, four-step method of gathering information, organizing a targeted strategy and, ultimately, helping to suggest an investment portfolio that meets your needs. The process is essential to helping you identify goals and craft strategies you can use to pursue them. It includes an ongoing progress review that helps keep your portfolio aligned with your goals and risk tolerance following shifts in the markets and your life. Merrill Lynch Personal Investment Advisory is a registered trademark of Bank of America Corporation. CERTIFIED FINANCIAL PLANNER and CFP are certification marks owned by the Certified Planner Board of Standards, Inc., and are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements. Certified Investment Management Analyst® and CIMA® are registered certification marks of Investment Management Consultants Association, Inc. Chartered Financial Analyst and CFA are registered trademarks of the CFA Institute. Merrill Lynch offers a broad range of brokerage, investment advisory (including financial planning) and other services. There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the differences, particularly when determining which service or services to select. Using Research to Identify and Evaluate Potential Investments When seeking potential investment solutions that align with your wealth management strategy, we search both within and beyond the bounds of Merrill Lynch. · BofA Merrill Lynch Global Research—provides us with in-depth information on stocks, bonds, global economics and investment strategy. · Investment Management and Guidance Group—analysts who perform rigorous due diligence on third-party products, services and asset managers. · Personally interview the portfolio managers under consideration, whenever possible, before adding them to our investment roster. · The RIC Report—a monthly digest published by the Merrill Lynch Research Investment Committee that highlights significant strategic and tactical investment themes and provides asset allocation guidelines.

Often, a certain degree of emotion—both positive and negative—accompanies the acquisition and management of significant wealth. It brings a set of complex challenges. We help you confront and understand these challenges by establishing a clear, goal-based wealth management strategy designedto help you determine—and then pursue—your financial objectives. Although we view ourselves, first and foremost, as problem-solvers, there is far more to wealth management than that. We are committed to helping you invest and strategize the way institutions do: with a focus on economics, in order to help you make rational decisions about managing your wealth. Your goals may include purchasing a retirement home, caring for an elderly parent or funding your grandchildren’s education. Or maybe you want to support a worthy cause or wish to leave a legacy for your children. Whatever your goals may be, we can help you determine strategies designed to help you move from Point A to Point B on the road to pursuing them. Read more