Category: Financial and taxes in retirement
September 19, 2017 -- Last week we found out that one of the nation's largest credit monitoring services, Equifax, had been hacked. The credit records of 143 million Americans were compromised, including in most cases their social security numbers, addresses, birth dates, credit ratings and sometimes a lot more - basically the keys to the scamming kingdom. Since then the company is being investigated because there was an earlier hack not disclosed, and corporate insiders might have traded ahead of the public release of information.
If you have been wondering if you were one of those whose credit info is now available to the highest underworld bidder - yes you probably were. After all the U.S. population is 323 million, so statistically you have just under a 1 in 2 chance of being affected. This
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Published on September 18, 2017
Comments 19
Category: Financial and taxes in retirement
August 28, 2017 -- From June to mid-August 15, nearly 107,000 payments for more than $100 million were attempted by people trying to use the latest financial scam. Unfortunately for those who tried, all of the payments were nullified. In this "too good to be true" flim flam people are being told there are secret accounts at the Federal Reserve that ordinary people can tap into to pay bills, if they learn how. All you need to do is add your Social Security number to
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Published on August 28, 2017
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Category: Financial and taxes in retirement
August 15, 2017 -- If you are receiving Social Security or you plan on relying on it for your retirement, this news is important. If no action is taken, your benefits will take a big haircut in just 17 years.
Every year the Social Security Trustees prepare an annual report. The one for 2016 was just published, and once again it predicts trouble ahead for the nation's system of Federal Old Age and Survivors Insurance and Federal Disability Insurance Trust Funds (OASDI), otherwise known as Social Security. Every year the Trustees warn Congress that something must be done, and every year Congress kicks it down the road. Fixing the system will be painful, but in our opinion, something must be done. The longer it takes to correct the system, the worse the problem gets.
Income still higher than expenditures - for now
Total expenditures in 2016 were $922 billion, while total income was $957 billion: the surplus for the year was $35 billion. Asset reserves held in special issue U.S. Treasury securities continued to grow. Social Security’s total income is projected to exceed its total cost through 2021, as it has for every year since 1982.
Interest income not enough to cover program cost deficit
The Trustees project that interest income, which was $88 billion in 2016, is shrinking every year. Up to this point it has helped cover the deficit of expenses over contributions paid in. As interest income declines, however, the total surpluses will turn to
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Published on August 15, 2017
Comments 81
Category: Financial and taxes in retirement
June 26, 2017 -- This is Part 2 of our "Social Security 2017 Update". Here we will cover the changes to two popular SS claiming strategies that went into effect last year, and what you might do in response.
In Part 1 we explained how the Full Retirement Age (FRA) is gradually increasing for those born in 1955, eventually reaching age 67 for those born in 1960 or later. We also provided some strategies on how to make up for this delay and the slightly smaller benefits that come with it. Here is the link to Part 1, "What You Need to Know About Social Security in 2017".
2 big changes to SS in 2016
Two Social Security claiming strategies went into effect on April 30, 2016 that changed
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Published on June 26, 2017
Comments 30
Category: Financial and taxes in retirement
Update June 29 -- Since we wrote this article another major malware/ransomware attack, Petya, started in the Ukraine and spread across the world. Here is a helpful article from Norton (they make a good anti-virus software) - 7 Tips to Prevent Ransomware Attacks.
June 14, 2018 - Don't think for a second that you are safe from the criminals who are trying to separate you from your money. There are tens of thousands of these folks who spend all day, every day, coming up with clever ways to trick you. Here are just a few tips to help keep them at bay.
1. Never, ever give out private information like credit card, SSAN, or bank account numbers to someone calling you. No reputable outfit will ask you for it. The IRS doesn't call people, they send letters. If you "won" something, someone tells you your grandson needs bail money, or that you missed jury duty, hang up. They are trying to trick you. No credit card company or bank will ask for your credit card or account number.
2. Be very cautious about giving out too much information over the phone, even if you are the one calling out. Here is how your editor got tricked last
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Published on June 14, 2017
Comments 20
Category: Financial and taxes in retirement
May 27, 2017 -- If you thought you knew everything you needed to know about when and how to claim your Social Security benefit - think again. For those who have not yet claimed their benefit as of 2017, two major developments probably affect you. This 2 Part article will help educate you on how to best navigate this new world. Part 1 explains how benefits are different (lower and later) for people born in 1955 or later, and how those folks might cope with that. Part 2 explains the 2016 changes affecting the popular claiming strategies called "file and suspend" and "restricted benefit".
Where you born in 1955 or later?
The first item affects those who will celebrate their 62nd birthday in 2017 (or in a later year). If that describes you, the age in which you are eligible for full Social Security benefits is on its way from age 66 to 67. The Full
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Published on May 28, 2017
Comments 19
Category: Financial and taxes in retirement
By Robert Jones
April 25, 2017 — The good news about retirement is that it can be as much about beginnings as endings. While retirement often means concluding an existing employment contract, increasing numbers of people are grasping the opportunities that open up once they step away from the 9-5.
Today, worldwide connectivity through the internet means that, for most of us, there’s a whole planet of potential enterprise opportunity within easy reach. And many retirees are now considering starting up a retirement business – some to find a source of additional income, others simply in pursuit of an enriching or rewarding experience.
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Published on April 24, 2017
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Category: Financial and taxes in retirement
February 22, 2017 -- A lot of baby boomers are facing a very difficult retirement. The Employee Benefits Research Institute’s (EBRI.org) 2014 survey reported only 55% of retirees are very or somewhat confident they will have enough money to live comfortably in retirement. A Topretirements.com survey was even less optimistic; only 46% of our Members said that their expected retirement income will allow them to continue their pre-retirement lifestyles.
The Wall Street Journal recently profiled a baby boomer in this situation who took a surprising solution to solve the problem - "With $15 in the Bank, A Baby Boomer Makes Peace with Less (article might be behind a paid wall). Kathleen Wolf lived in the San Francisco area until recently. During her working life in real estate she made
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Published on February 21, 2017
Comments 35
Category: Financial and taxes in retirement
February 12, 2017 -- First the good news - the financial outlook is not as bad as has been reported - for most states. A study by the Center for Retirement Research (CRR) looked at 3 fiscal components: pensions, other post employment benefits (OPEBs), and debt payments - to analyze which states, counties, and municipalities face the biggest future financial crunch. Most states have a manageable situation in the coming years; 36 of them have required payments below 15 percent of own-source revenue, and 22 of them have obligations less than 10%. The problem is more acute for the 8 states who face obligations more than 20% of own-source revenues. The experts in the study believe that payments over 25% are untenable.
The problem children
The bad news for five states – Illinois, New Jersey, Connecticut, Hawaii, and Kentucky – is that future payments for pensions, OPEBs, and debt service are more than 25 percent
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Published on February 11, 2017
Comments 17
Category: Financial and taxes in retirement
February 7, 2017 -- If you will celebrate your 62nd birthday in 2017 or later, the age in which you are eligible for full Social Security benefits is on its way to 67. The full retirement age (FRA) will steadily increase in two-month increments from age 66 over the next six years, eventually reaching age 67 for those born in 1960 or later. This is not a new development, however. It has always been part of changes made the last time the Social Security program was overhauled, which was 1983.
The bad news is that your Social Security benefits are also taking a hair cut compared to your fellow boomers who were born prior to 1955. When your FRA becomes age 67, your
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Published on February 6, 2017
Comments 24
