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
more...
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
more...
Published on February 6, 2017
Comments 24
Category: Financial and taxes in retirement
January 28, 2017 -- Dear Members. On our "Are You Ready for Retirement" thread MaryNB started an interesting thread about cost of living and coping with various expenses. That generated a raft of suggestions, so many that we have decided to move them all here to a new post just on that subject. Below are the Comments moved over from the original. Feel free to add your own!
---This may be off topic, but part of the calculations about cost of living. The references
more...
Published on January 28, 2017
Comments 114
Category: Financial and taxes in retirement
January 2, 2017 -- Just as millions of baby boomers start to enjoy their Social Security retirement or disability checks comes a new worry. The problem arises for the folks who, for whatever reason, did not pay off all of their student loan debts. Many non-payers thought that after the initial wave of debt collection efforts subsided, they were off the hook. Wrong! The government has one last ace to play, and that is garnishment of your Social Security checks.
Last year the Feds reclaimed $171 million in unpaid student loans, and many of those paying it back were over 50 years of age - 114,000 of them in fact. According to a recent Wall Street Journal article the typical delinquent borrower sees their Social Security
more...
Published on January 1, 2017
Comments 10
Category: Financial and taxes in retirement
December 21, 2016 -- Almost everybody agrees Social Security needs some tweaking to keep this popular program running smoothly. After all the latest estimates are that, if no changes are made, starting in 2034 only 75% of promised benefits will be able to paid (Social Security Trustees Annual Report).
Politicians and economists have been talking about the need to fix Social Security for years, but up until now no one has done more than talk. Finally, at least one person in Congress, Rep. Sam Johnson (R-TX), has proposed something. We don't agree with a lot of what is in his plan, but we salute him for at least proposing something. The Bipartisan Policy Center has also proposed solutions, some similar to Johnson's and some different. Soon to be President Trump said during the campaign
more...
Published on December 20, 2016
Comments 73
Category: Financial and taxes in retirement
Nov. 11, 2016 -- The Centers for Medicare & Medicaid Services (CMS) has announced that 2017 premiums for the Medicare inpatient hospital (Part A) and physician and outpatient hospital services (Part B) programs will increase.
Because of the low Social Security COLA, (0.3 percent for 2017) a statutory “hold harmless” provision designed to protect seniors will largely prevent Part B premiums from increasing for about 70 percent of beneficiaries. Among this group, the average
more...
Published on November 11, 2016
Comments 4
Category: Financial and taxes in retirement
October 18, 2016 — The Social Security Administration today announced a very modest Cost of Living Adjustment (COLA) for 2017 of 0.3%. There was no COLA in 2016, whereas the COLA in 2015 was 1.7%. The 2017 increase results in a whopping $4 a month based on the average SS…
more...
Published on October 18, 2016
Comments 2
Category: Financial and taxes in retirement
Updated Oct. 2023 - There is no shortage of articles on how to "maximize" your Social Security benefit, often from some of the top experts in the field. Some of them advocate taking the benefit early, but just as many advocate waiting. It's a complicated subject, but the best answer lies in understanding your personal situation.
This article provides 5 reasons why we think taking your Social Security retirement benefit is nowhere near as simple as you might think. We will also give
more...
Published on October 10, 2016
Comments 59
Category: Estate Planning
August 31, 2016 -- Consider this unpleasant scenario: You go to bed tonight and don't wake up. Instead, you go on to your greater reward, leaving a saddened spouse, family, and friends. They, on the other hand, are about to find out how well you prepared for this event. While not fun to think about, this is not an "if" it happens situation, it is only "when".
Not so long ago your heirs would face many unpleasant chores as a result of your untimely death, but at least the tasks were relatively straightforward. Assets could generally be traced by looking in file folders, safe deposit boxes, and various spots around the house. Statements would eventually come in the mail, alerting your survivors to the existence of various accounts. Now in the digital age, your executor or surviving spouse face the same tasks, only they tend to be much more difficult. That is mainly because so many of your assets and accounts only exist online. How will they find out what accounts
more...
Published on August 30, 2016
Comments 13
Category: Financial and taxes in retirement
July 20, 2016 -- The decision on when to start taking your Social Security retirement benefits is a very personal matter. Our members report a wide range of answers - from "as soon as I can" to "waiting until the maximum age of 70". This article will give some highlights from a recent survey by Nationwide Insurance on how 50+ adults feel about those Social Security decisions, particularly after they have made them.
The Nationwide Retirement Institute Consumer Social Security PR Study polled 3 different groups: people who have been retired 10 years, those who have
more...
Published on July 19, 2016
Comments 43
