Archive for the ‘Personal Finance’ Category
Can you receive social security benefits?
Slim asked:
Can you receive Social Security if you work. Hypothetically speaking if katie was receiving benefits because her father past away, she is a senior in high school so she get benefits. However it is no enough. she wants to work but she don’t want her funds to get cut off is it possible for her to work and receive benefits? Please respond reasonable.
Social Security Benefits
Can you receive Social Security if you work. Hypothetically speaking if katie was receiving benefits because her father past away, she is a senior in high school so she get benefits. However it is no enough. she wants to work but she don’t want her funds to get cut off is it possible for her to work and receive benefits? Please respond reasonable.
Social Security Benefits
Will taking $4000 out of a 401K for an emergency affect someone recieving social security benefits?
L F asked:
My brother is deaf and has been recieving SS Benefits for 8 months now. He had to take $4000 out of his 401K for some dental work and to fix his car. I want to know if him using this money will make him ineligible for Social Security benefits, since we know one can only make a certain amount of money working while they are recieving Social Security.
Jacqueline
My brother is deaf and has been recieving SS Benefits for 8 months now. He had to take $4000 out of his 401K for some dental work and to fix his car. I want to know if him using this money will make him ineligible for Social Security benefits, since we know one can only make a certain amount of money working while they are recieving Social Security.
Jacqueline
I have social security benefits, Can my chilld work without losing benefits?
T.s. asked:
Me, my husband, and my two children get social security benefits, and my 16 year old daughter wants to work, can she work without losing her benefits because she is under 18?
Shirley
Me, my husband, and my two children get social security benefits, and my 16 year old daughter wants to work, can she work without losing her benefits because she is under 18?
Shirley
Is there a difference between social security benefits in California or Arizona?
hellfreezeover666 asked:
My parents are thinking about moving to Arizona after their retirement. They been working and paying social security benefits in California for the last few decades. Now they’re trying to find out if there’s any difference in retirement benefits between California or Arizona. I heard that social security benefit based solely on the amount you contributed during your working life, not on where you live when you retire. Is that true? Is there any other potential benefit for retiring in California (other than weather or higher living cost)? Thank you very much.
Barry
My parents are thinking about moving to Arizona after their retirement. They been working and paying social security benefits in California for the last few decades. Now they’re trying to find out if there’s any difference in retirement benefits between California or Arizona. I heard that social security benefit based solely on the amount you contributed during your working life, not on where you live when you retire. Is that true? Is there any other potential benefit for retiring in California (other than weather or higher living cost)? Thank you very much.
Barry
Can a husband & wife get their Social Security benefits when they retire?
joie asked:
I heard that only one can draw their Social Security benefit when they both retire. Is this true? I also was told that some married couples file for divorce but then live together just so they can both get their S.S. retirement benefits.
Amanda
I heard that only one can draw their Social Security benefit when they both retire. Is this true? I also was told that some married couples file for divorce but then live together just so they can both get their S.S. retirement benefits.
Amanda
How do you understand a Social Security Benefits estimate letter from government?
rrsafety asked:
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
The Guide to Social Security – How to Pay Fewer Taxes
Shelby Smith asked:
Most individuals in or near retirement have three financial legs to support them in retirement: Social Security benefits; qualified retirement savings [401(k), IRA, 403(b), etc.] on which taxes have not yet been paid; non-qualified savings and investments on which taxes have been paid on the principal and possibly some or all of the earnings. By carefully coordinating the use of these three sources of money, the typical retirement-minded couple can add up to 20% to their after-tax income and afford a better retirement lifestyle. Unfortunately, most couples in or near retirement overlook the importance of coordinating the uses of their available money. The results are higher tax bills and lower lifestyles in retirement. Both can be avoided.
In what follows, you will be shown how the typical retired couple can add as much as 20% to their after-tax retirement income just by coordinating when to use the different categories of their money. There is nothing to buy, no risky investments to make or additional money needed: you just use what you have smarter. This is very important for a married couple because one spouse could spend as much as one-third of their lifetime in retirement.
Conventional wisdom says to delay the use of your qualified money as long as possible in retirement because it grows faster due to the tax deferral. Generally, the conventional wisdom is wrong. The millions who have heeded this inappropriate advice will have less after-tax money to support them in retirement. This Guide will show you that qualified money should be used first so you can delay taking Social Security benefits as long as possible. There are also tax advantages to using your non-qualified money last in retirement. This timing can give you more after-tax income in retirement and a better lifestyle.
Unless you have substantially more money than needed for retirement, it is foolish to pay taxes you can avoid by simply changing the timing of how your three categories of money are used in retirement. The typical retiree’s greatest fear, and also the greatest challenge, is to not run out of money before they run out of breath. Many are in danger of losing this battle because the Center for Retirement Research is now reporting that 43% of U.S. households headed by workers ages 34-60 are in danger of having 90% or less of the money they’ll need to maintain their lifestyle in retirement. According to one recent study reported in Retirement Weekly:”The average American family is on track to replace 57% of its annual pre-retirement income, some 28 percentage points less than the minimum 85% figure experts typically say retirees will need to live on in their golden years”.
You can stretch your retirement money by up to 20%. Before we can discuss when and how to use the three categories, each needs to be identified and defined. You may receive other categories of money, e.g., inheritance, life insurance benefits, loans, reverse mortgage proceeds, trust income, lottery (dream on) and support from family members, but these will not be discussed in this Guide. Also, in the following discussion we’ve assumed the “average” retirement-minded couple; however, there are many exceptions, and we recommend you seek professional advice before taking action.
Get the details! Read my free e-Report and watch a 10min video overview at the Retirement Pros at:
http://www.theretirementpros.com/eReport_Social_Security.php
Stacy
Most individuals in or near retirement have three financial legs to support them in retirement: Social Security benefits; qualified retirement savings [401(k), IRA, 403(b), etc.] on which taxes have not yet been paid; non-qualified savings and investments on which taxes have been paid on the principal and possibly some or all of the earnings. By carefully coordinating the use of these three sources of money, the typical retirement-minded couple can add up to 20% to their after-tax income and afford a better retirement lifestyle. Unfortunately, most couples in or near retirement overlook the importance of coordinating the uses of their available money. The results are higher tax bills and lower lifestyles in retirement. Both can be avoided.
In what follows, you will be shown how the typical retired couple can add as much as 20% to their after-tax retirement income just by coordinating when to use the different categories of their money. There is nothing to buy, no risky investments to make or additional money needed: you just use what you have smarter. This is very important for a married couple because one spouse could spend as much as one-third of their lifetime in retirement.
Conventional wisdom says to delay the use of your qualified money as long as possible in retirement because it grows faster due to the tax deferral. Generally, the conventional wisdom is wrong. The millions who have heeded this inappropriate advice will have less after-tax money to support them in retirement. This Guide will show you that qualified money should be used first so you can delay taking Social Security benefits as long as possible. There are also tax advantages to using your non-qualified money last in retirement. This timing can give you more after-tax income in retirement and a better lifestyle.
Unless you have substantially more money than needed for retirement, it is foolish to pay taxes you can avoid by simply changing the timing of how your three categories of money are used in retirement. The typical retiree’s greatest fear, and also the greatest challenge, is to not run out of money before they run out of breath. Many are in danger of losing this battle because the Center for Retirement Research is now reporting that 43% of U.S. households headed by workers ages 34-60 are in danger of having 90% or less of the money they’ll need to maintain their lifestyle in retirement. According to one recent study reported in Retirement Weekly:”The average American family is on track to replace 57% of its annual pre-retirement income, some 28 percentage points less than the minimum 85% figure experts typically say retirees will need to live on in their golden years”.
You can stretch your retirement money by up to 20%. Before we can discuss when and how to use the three categories, each needs to be identified and defined. You may receive other categories of money, e.g., inheritance, life insurance benefits, loans, reverse mortgage proceeds, trust income, lottery (dream on) and support from family members, but these will not be discussed in this Guide. Also, in the following discussion we’ve assumed the “average” retirement-minded couple; however, there are many exceptions, and we recommend you seek professional advice before taking action.
Get the details! Read my free e-Report and watch a 10min video overview at the Retirement Pros at:
http://www.theretirementpros.com/eReport_Social_Security.php
Stacy
When to Take Social Security
Shelby Smith asked:
One of the most important retirement decisions facing most Americans is: WHEN TO START SOCIAL SECURITY BENEFITS. Conventional wisdom has always been “take it as early as possible — age 62″. Why? Several reasons are given: (a) it might not be there if you wait; (b) you can take the benefits and invest them and have more money later; (c) I might die early and never get a dime.
About three-fourths of Americans have heeded this advice and for most it was, or will prove to be, a big mistake. Why? There are several reasons: spousal benefits, higher benefits for delaying, penalties for starting early, penalties if you work while drawing benefits and are less than normal retirement age, and Social Security benefits get favorable income tax treatment.
Spousal benefits: If you qualify for Social Security benefits they will last the rest of your life — what’s more, if you’re married and your spouse is entitled to a lower amount, she/he will “step up” to the higher amount at your death. The spousal benefits say a spouse gets at least 50% (even if they paid zero into their Social Security account) of what the other spouse qualifies for AND the larger amount when the first spouse passes on. So by delaying your benefits your surviving spouse could get a bigger Social Security check every month for the rest of her/his life. Since “break-even” is about age 80 and joint life expectancy is closer to 90 for a married couple age 62, the odds of getting more are overwhelming. In fact, if Las Vegas gave the same odds you’d be booking reservations today.
For every year you delay taking Social Security benefits beyond age 62, your benefits grow between 7.5% and 8.0% annually PLUS a cost of living adjustment (COLA) based on inflation. In the past 30 years inflation has averaged over 3% annually…so your Social Security benefits will grow by over 10% a year. Where else can you get an investment backed by the U.S. Government and pay you over 10% annually? Stop looking, they don’t exist unless you want to take loads of risks. So if you are healthy, married and can afford to wait, postponing Social Security until age 70 will pay great dividends. Social Security will be there because with 50 million current getting benefits and another 76 million (the boomers) coming of age, politicians who vote to do away with Social Security will be unemployed.
If you start benefits at age 62 (the earliest time possible) you get about 25% less than if you wait until your normal retirement age (age 66 for most 62-year olds). This 25% less is for the rest of your life AND COLA is applied to a lower amount to compound the injury. Again, postponing make a great deal of sense.
If you start Social Security before normal retirement age and continue to work, your benefits will be reduced $1 for every $2 you make over about $13,000 annually. Yes, you’ll get this back later but when you consider taxes and the time value of money you’ll be worse off.
The big reason to delay is because Social Security benefits are taxed differently than other income: it is never 100% taxed and it is easy to manage the taxes on your Social Security benefits. PLUS, if taxes rise you’ll want to have as much of your retirement money in tax advantaged places (like larger SS benefits) as possible. Which way to you think income taxes are headed? Let’s see: record federal deficits, fighting terrorism, rebuilding our highways, bridges & infrastructures, an aging population, cleaning up the environment, etc. which must be financed by the federal government with income taxes. No doubt in my mind…how about you?
If you’d like to make sure you get Social Security right — and also take your qualified money (IRA, 401(k), 403(b), TSP, etc.) at the right time and use your other savings & investments wisely, I invite you to read my Guide to Social Security…and a Better Retirement by going to http://www.theretirementpros.com/eReport_Social_Security.php
You’ll have one chance to get Social Security right, so get all the info you can to make a good decision — most Americans haven’t and they’ll pay a lot more in taxes on their retirement money. Less money in retirement means less of a retirement. For more info on Retirement Planning, go to the Retirement Pros website at http://www.theretirementpros.com/
Dustin
One of the most important retirement decisions facing most Americans is: WHEN TO START SOCIAL SECURITY BENEFITS. Conventional wisdom has always been “take it as early as possible — age 62″. Why? Several reasons are given: (a) it might not be there if you wait; (b) you can take the benefits and invest them and have more money later; (c) I might die early and never get a dime.
About three-fourths of Americans have heeded this advice and for most it was, or will prove to be, a big mistake. Why? There are several reasons: spousal benefits, higher benefits for delaying, penalties for starting early, penalties if you work while drawing benefits and are less than normal retirement age, and Social Security benefits get favorable income tax treatment.
Spousal benefits: If you qualify for Social Security benefits they will last the rest of your life — what’s more, if you’re married and your spouse is entitled to a lower amount, she/he will “step up” to the higher amount at your death. The spousal benefits say a spouse gets at least 50% (even if they paid zero into their Social Security account) of what the other spouse qualifies for AND the larger amount when the first spouse passes on. So by delaying your benefits your surviving spouse could get a bigger Social Security check every month for the rest of her/his life. Since “break-even” is about age 80 and joint life expectancy is closer to 90 for a married couple age 62, the odds of getting more are overwhelming. In fact, if Las Vegas gave the same odds you’d be booking reservations today.
For every year you delay taking Social Security benefits beyond age 62, your benefits grow between 7.5% and 8.0% annually PLUS a cost of living adjustment (COLA) based on inflation. In the past 30 years inflation has averaged over 3% annually…so your Social Security benefits will grow by over 10% a year. Where else can you get an investment backed by the U.S. Government and pay you over 10% annually? Stop looking, they don’t exist unless you want to take loads of risks. So if you are healthy, married and can afford to wait, postponing Social Security until age 70 will pay great dividends. Social Security will be there because with 50 million current getting benefits and another 76 million (the boomers) coming of age, politicians who vote to do away with Social Security will be unemployed.
If you start benefits at age 62 (the earliest time possible) you get about 25% less than if you wait until your normal retirement age (age 66 for most 62-year olds). This 25% less is for the rest of your life AND COLA is applied to a lower amount to compound the injury. Again, postponing make a great deal of sense.
If you start Social Security before normal retirement age and continue to work, your benefits will be reduced $1 for every $2 you make over about $13,000 annually. Yes, you’ll get this back later but when you consider taxes and the time value of money you’ll be worse off.
The big reason to delay is because Social Security benefits are taxed differently than other income: it is never 100% taxed and it is easy to manage the taxes on your Social Security benefits. PLUS, if taxes rise you’ll want to have as much of your retirement money in tax advantaged places (like larger SS benefits) as possible. Which way to you think income taxes are headed? Let’s see: record federal deficits, fighting terrorism, rebuilding our highways, bridges & infrastructures, an aging population, cleaning up the environment, etc. which must be financed by the federal government with income taxes. No doubt in my mind…how about you?
If you’d like to make sure you get Social Security right — and also take your qualified money (IRA, 401(k), 403(b), TSP, etc.) at the right time and use your other savings & investments wisely, I invite you to read my Guide to Social Security…and a Better Retirement by going to http://www.theretirementpros.com/eReport_Social_Security.php
You’ll have one chance to get Social Security right, so get all the info you can to make a good decision — most Americans haven’t and they’ll pay a lot more in taxes on their retirement money. Less money in retirement means less of a retirement. For more info on Retirement Planning, go to the Retirement Pros website at http://www.theretirementpros.com/
Dustin
Are You Accessing All of the Social Security Retirement Benefits Available to You?
Lisa Bayer asked:
Most people think that Social Security is only available to retirees when they completely stop working at full retirement age. In 2008 the full retirement age for an individual born before 1938 is 65. However, it is also possible for a person born after 1938 to apply for early retirement benefits as early as age 62. In this case your retirement benefit amount will be permanently reduced by a percentage depending upon what month and age you apply for early retirement benefits. Of course, the longer you wait to apply for early retirement, the closer your benefit will be to the full retirement amount. This doesn’t mean that this is the only decision for many people. Depending upon your age, it has been estimated that it takes 14 years to “catch up” on the missed benefits if an individual applies for early retirement. If you do not already have one, you should request a recent “earnings record” from the Social Security Administration. This details your work history and lists your benefit amounts at each age so that you can make an educated decision for you and your family.
On the other hand, an individual can delay applying for benefits until after age 65 (for those born before 1938) and possibly increase your retirement benefit amount. In this case, it is important to carefully keep track of and report your earnings to Social Security so that the benefit amount accurately reflects the additional work history. And, if you do decide to delay applying for Social Security, it is still important to apply for Medicare at the appropriate time so as not to lose out on important health insurance benefits.
An important note should be made here. Many people associate retirement Social Security with Medicare and in fact both programs are administered by the Social Security Administration. However, a non-disabled retired individual is not eligible for Medicare until he or she reaches age 65. It is important to consider this when evaluating whether or not to apply for early retirement benefits as you would need to make sure that, in addition to sufficient income, you will also have access to adequate health insurance (and the ability to pay for it) once you stop working.
In conclusion, to determine whether an individual should apply for early, full or delayed retirement benefits is best decided by carefully reading a recent earnings record and taking into account other individuals who may be entitled or seek to be entitled on this person’s Social Security account. Contact the Social Security administration with any questions or for help in making these decisions.
Melinda
Most people think that Social Security is only available to retirees when they completely stop working at full retirement age. In 2008 the full retirement age for an individual born before 1938 is 65. However, it is also possible for a person born after 1938 to apply for early retirement benefits as early as age 62. In this case your retirement benefit amount will be permanently reduced by a percentage depending upon what month and age you apply for early retirement benefits. Of course, the longer you wait to apply for early retirement, the closer your benefit will be to the full retirement amount. This doesn’t mean that this is the only decision for many people. Depending upon your age, it has been estimated that it takes 14 years to “catch up” on the missed benefits if an individual applies for early retirement. If you do not already have one, you should request a recent “earnings record” from the Social Security Administration. This details your work history and lists your benefit amounts at each age so that you can make an educated decision for you and your family.
On the other hand, an individual can delay applying for benefits until after age 65 (for those born before 1938) and possibly increase your retirement benefit amount. In this case, it is important to carefully keep track of and report your earnings to Social Security so that the benefit amount accurately reflects the additional work history. And, if you do decide to delay applying for Social Security, it is still important to apply for Medicare at the appropriate time so as not to lose out on important health insurance benefits.
An important note should be made here. Many people associate retirement Social Security with Medicare and in fact both programs are administered by the Social Security Administration. However, a non-disabled retired individual is not eligible for Medicare until he or she reaches age 65. It is important to consider this when evaluating whether or not to apply for early retirement benefits as you would need to make sure that, in addition to sufficient income, you will also have access to adequate health insurance (and the ability to pay for it) once you stop working.
In conclusion, to determine whether an individual should apply for early, full or delayed retirement benefits is best decided by carefully reading a recent earnings record and taking into account other individuals who may be entitled or seek to be entitled on this person’s Social Security account. Contact the Social Security administration with any questions or for help in making these decisions.
Melinda
If I retire and then I move to another country Will I be able to receive my social security benefits? How?
r74leon asked:
I have a friend who is close to retire(he’s 67) he owns a property in Costa Rica and another in Cuba, yes in Cuba. Well he was told that if he move to another country he will loss his social security benefits as well as the medicare. How true is that? There is any way to maintain those benefits at the same time he has fun out there???
Clyde
I have a friend who is close to retire(he’s 67) he owns a property in Costa Rica and another in Cuba, yes in Cuba. Well he was told that if he move to another country he will loss his social security benefits as well as the medicare. How true is that? There is any way to maintain those benefits at the same time he has fun out there???
Clyde
