Category: Financial and taxes in retirement
Update Dec 2, 2017: The Senate passed their tax proposal early this morning. It is anticipated that the reconciliation between the Senate and House versions of the bill will go smoothly and it will be signed by the President soon. As soon as the final details emerge we will either update this article or create a new one, so that you can see how tax reform might affect your retirement.
November 23, 2017 -- Recently we had some Comments made to other posts that touched on how the proposed tax bills approved by the House and being considered by the Senate might affect retirees. While the bills and different how they might be reconciled in the end is very fluid, it is worth considering how they impact your retirement. Just about everyone agrees that the concept of simplifying our overly complex tax code is a good thing in principle. But it also certain that any tax reform always produces winners and losers. In this article we will give our opinions on how different groups of retirees would fare on tax reform. Let us hope for your sake you are among the winners!
Tax Reform and Roth Conversions
Here is the Comment by Peder: "If the tax reform/cut/whatever gets through and they raise the 25% bracket all the way to $200K, I’m seriously going to consider converting
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Published on November 23, 2017
Comments 37
Category: Financial and taxes in retirement
November 20, 2017 — Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 66 million Americans will increase 2.0 percent in 2018. The 2.0 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 61 million Social Security beneficiaries in January 2018. Increased payments to…
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Published on November 20, 2017
Comments 12
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
Comments 0
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
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Published on April 24, 2017
Comments 0
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
