Category: Financial and taxes in retirement
January 9, 2024 - People contemplating retirement often wonder what is the Maximum Social Security Benefit is 2024. That is the benefit received by high earners who have maximized their FICA payments for 35 years, and who waited until age 70 to collect. The answer is pretty impressive - the maximum Social Security benefit in 2024 is $4,873 per month!
Others with less fortunate earning records, or who claimed as early as age 62, are more likely to receive something around the average 2024 Social Security benefit. That figure is a relatively paltry $1,907 per month in 2024, up from $1,848 in 2023.
Waiting until Age 70 Helps with the Maximum Social Security Benefit
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Published on January 9, 2024
Comments 23
Category: Financial and taxes in retirement
December 7, 2023 - Some people ask, am I required to take an RMD this year (Required Minimum Distribution) from my IRA or 401(k)? It is a good question because of recent changes in the law (SECURE 2.0). The actual answer depends on your age. If you were born in or before 1950, YES, you must take one. If you were born Jan. 1, 1951 or later, you are not required to take one this year. The new age for taking the distributions is 73.
Required to take an RMD this year?
Again, if you are required to take an RMD this year, it depends on your birthday. If you hit the age of 72 in 2023 you can postpone your first RMD until April 1, 2025. But you could take it in 2024 to avoid having to pay taxes on two RMDs in the same year (you would have a second one by Dec. 31, 2025 for the 2024 year).
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Published on December 6, 2023
Comments 7
Category: Financial and taxes in retirement
September 12, 2023 -- Even if you are in your 30's you have probably started the countdown to retirement. Probably with a mix of dread (will I be ready?) and anticipation (can't wait to be free!). No matter what your current age, we've set up a retirement countdown in 10 year periods to help with that. The idea is that by doing the preparation in stages you will be building a solid base, one that will result in an effortless blast off when that retirement finally comes. In our experience the happiest retirees are the ones who planned for it.
R (Retirement) Minus 30.
With 30 or more years before retirement you are lucky to
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Published on September 12, 2023
Comments 3
Category: Financial and taxes in retirement
August 31, 2023 -- One of the more common predicaments in the retirement world comes when an organization offers a retirement buyout package to a long standing employee. Many times Topretirements has been asked for advice on this topic, which usually came from someone whose employer is a government entity (state, university, local police department).
Honestly, it is a very tough decision to make, with a number of factors to consider. Ultimately each individual has to make their own decision based on that totality of factors, ideally mixed with input from professional advisors and family members.
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Published on August 30, 2023
Comments 7
Category: Estate Planning
July 20, 2023 -- Just about everyone knows that not having a will is a really bad idea. But still, about 60% of Americans either don't have one or have no estate planning. But almost as bad as not having a formal will is having more than one, or not having it designed by a professional and signed in the presence of witnesses. That is the case in the Aretha Franklin estate case, which was decided by a jury last week.
Franklin's estate was reportedly worth $80 million when she died in 2018. But last week its value was estimated to be about $6 million (plus song royalties, etc.). Where did all that money go - it went to expenses, taxes, and lawyers trying to figure out how the estate should be settled among her 4 sons.
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Published on July 19, 2023
Comments 3
Category: Financial and taxes in retirement
June 14, 2023 - A study on retirement by the World Economic Forum found considerable unease about retirement issues in various age groups. Health and income issues were prevalent among its Pulse Poll respondents. The report was focused on how individuals, companies, and government will respond to longevity and people living longer lives.Here are some of the key findings in the Understanding Longevity Study
Many people, especially women, are worried about having enough money in retirement. Some 55% of women are willing to admit they don’t understand their financial situation.
Health concerns are a big concern as people age. Many are worried they will have to become caregivers.
Men are more likely to be looking forward more to retirement than women.
The "bank of mom and dad" is flipping - in more cases younger people might have to support their parents - instead of the other way around. (Interesting, another study we came across found that many baby boomers are blithely spending money, while younger folks are having to pinch pennies)
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Published on June 15, 2023
Comments 3
Category: Best Retirement Towns and States
May 31, 2023 — Condo boards in Florida are reeling from a one-two punch. Quotes for insurance renewals are literally through the roof, and that is if the condo association can get coverage at all. Year to year rate hikes of 50% are common. The Jade Winds condo complex in…
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Published on May 30, 2023
Comments 16
Category: Financial and taxes in retirement
March 30, 2023 — It might come as an unpleasant surprise to many people that Social Security benefits can be taxed on both the federal and the state level. But which states tax social security income? While there is no escaping the federal tax if your income exceeds certain levels,…
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Published on March 29, 2023
Comments 0
Category: Financial and taxes in retirement
March 5, 2022 -- How many people do you know who have been scammed? Chances are, there are a lot more than you know about, including many friends or relatives who are too embarrassed to talk about it. Scammers are counting on you being uninformed of their deceptive tactics so that you will fall prey to their ruses. Don’t let it happen. The Social Security Administration, invoked maliciously by so many criminals, wants you to join them on National Slam the Scam Day, March 9, 2023. Their aim is to help raise awareness and prevent scammers from succeeding in crimes against innocent victims.
National Slam the Scam Day was created in 2020 to combat Social Security-related scams. Last year, it expanded to include other government imposter scams as reported losses from consumers climbed to more than $446 million in 2021. According to the Federal Trade Commission, reported losses for 2022 are nearly $509 million. And unreported losses are so much more.
Beware a government agency telling you about a problem.
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Published on March 4, 2023
Comments 6
Category: Financial and taxes in retirement
February 15, 2023 — In 2021 the Federal Trade Commission received 1.5 million reports of identity theft. And guess who is usually the #1 target for scammers – right, retired people. A combination of carelessness, trust, declining faculties, and increasing deviousness from criminals is raising this crime to new levels.
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Published on February 15, 2023
Comments 9
