Category: Financial and taxes in retirement
October 31, 2011 -- This isn't a good news story. Obviously, no one is going to get rich, or even thrive on social security alone. After all, it was designed as as a security blanket to keep retirees from starving, a condition which many faced before FDR implemented the program in the 1930's.
The bad news is that social security is becoming an ever more important source of income for retirees. MSN/Money reported recently in "More Rely on Social Security" that in 1962 social security represented 30% of people over 65's income - in 2010 it had grown to 38%. Today more than
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Published on October 31, 2011
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Category: Financial and taxes in retirement
October 29, 2011 -- In what was a surprise to most prognosticators, Medicare Part B premiums will increase far less than predicted in 2012, and in fact will actually decline for many of those covered.
In 2012, the “standard” Medicare Part B premium will be $99.90. This is a $15.50 decrease over the standard 2011 premium of $115.40 paid by new enrollees and higher income Medicare beneficiaries and by Medicaid on behalf of low-income enrollees. The majority of
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Published on October 29, 2011
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Category: Financial and taxes in retirement
October 25, 2011 -- Let's hope you are one of those who have prepared well for the financial aspects of retirement. If so, congratulations! But before you start taking too many high fives with your friends or significant other, we suggest you look at some of the expenses that many folks are not prepared for. If you are vulnerable to one of these, take some action now to prepare against it.
If you aren't concerned about unexpected costs, consider this sobering estimate from the non-profit Employee Benefit Research Institute, which EBRI figures that it will cost $287,000 for a couple to have a 90% chance of covering their medical costs in retirement, assuming that their prescription drug costs are about average.
Long Term Care -- Unless you spend all of your assets and have no other recourse, Medicare is not going to cover your long term care expenses (although there are some expenses within that might be covered). Whether you are cared for in your home, in an assisted living facility, or in a nursing home, these expenses can be significant and far higher than your expected social security benefit. Typical assisted living fees are less than in a nursing home or in a Continuing Care Retirement Community (CCRC - which tend to be more luxurious). Figure at least $2400/month for assisted living, with extra costs if more than basic care is needed. Costs vary by state. Charges at CCRCs can easily go to $7,000 or more per month, depending on services provided. If you or your significant other have unusual medical conditions such as Alzheimers or dementia those fees can be much higher. Figuring that if you spend 10 years in an assisted living facility at $2400 a month, that is $288,000. Even if you are cared for in your home by a part-time health care aide at $15/hour, that can add up. Long term care insurance can
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Published on October 25, 2011
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Category: Financial and taxes in retirement
October 19, 2011 -- It was announced today that starting in January 2012 some 55 million Social Security beneficiaries will receive their first cost of living adjustment (COLA) in almost 3 years. The increase will be 3.6%, or about $516 year for the average recipient. Some seniors are upset that the increase doesn't match the corresponding health care cost increases they have been paying, and they might have a point, since they are heavy consumers of that service. However, the government calculates the COLA based on a range of costs, some of which do not typically
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Published on October 19, 2011
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Category: Financial and taxes in retirement
October 17, 2011 -- Bulletin: Today (October 19) it was announced that Social Security benefits will increase 3.6% starting in January, 2012. It is the first such increase in almost 3 years, amounting to about $516 per year per beneficiary. See our article on the 2012 Social Security increase for more, as well as What You Think You Know About Social Security Might Hurt You.
If you are a baby boomer or just slightly older (born before 1946), social security is about to become a big part of your financial life. Getting ready to take advantage of that benefit is therefore a critical step in your financial future. Here are some of the top questions asked by visitors to the Social Security and AARP websites, along with the answers everyone needs to know.
1. When can I start taking my benefits?
The earliest you can get your first check is the first full month after your 62nd birthday. But before you rush to sign up, just be aware that there might be significant benefits to holding off (see question 7 below).
2. When Can I apply?
You can apply 3 months before you turn 62. You can sign up for Medicare
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Published on October 17, 2011
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Category: Financial and taxes in retirement
June 19, 2011 -- Imagine for a moment that you just purchased an annuity at age 62 and a half. If you decide to start taking payments on it today, you can. But if are willing to wait 7 and 1/2 years, you could increase your monthly payments by at least 75%, maybe more. Which option would you take?
From our headline you have probably guessed we are talking about social security, which at its most basic is an annuity - a guaranteed payment for as long as you and/or your spouse lives. It is clearly one of the best annuities available. You and your employer paid for it. And the money is virtually guaranteed (unless
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Published on July 19, 2011
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Category: Financial and taxes in retirement
June 25 -- Seems like there is no end of articles about folks delaying retirement. Millions of boomers are planning to work longer than they had intended. But just how long should you delay: how good are your reasons, and even if you don't retire - should you hold onto your current home? We will explore these questions in this short article.
There are several main reasons for delaying retirement - most, but not all of them, have to do with money.
- Haven't saved enough - need more money...
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Published on June 25, 2011
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Category: Financial and taxes in retirement
Updated February 2018 -- The first article in this series, "Five Reasons Why You Should Retire in Another State", explored the major reasons why it might be a really good idea for you to move from the Midwest or the Northeast to a different state. In this related article we have had the good fortune to interview Barton Smith Esq., a Florida attorney who, in addition to focusing in the areas of real estate, land use and civil litigation, has helped many clients establish legal residency in the Sunshine State. While this article specifically refers to becoming a Florida resident, most if not all of the steps are similar to moving your residency to another state.
TR: Bart, thanks for taking the time to talk with us. We understand you are not giving legal advice here, but have agreed to provide some helpful overview information for Topretirements members. First off, could you tell us if there are any advantages to becoming a legal resident in Florida?
BSmith: There are obvious advantages to becoming a Florida resident. The first, and most well known, is...
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Published on June 21, 2011
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Category: Financial and taxes in retirement
June 14, 2011 -- So you've been thinking about your impending retirement. We'll bet you are wondering where in the heck you should retire to, even if you are pretty sure you will end up in the group of 70% of retirees that never move more than a few miles from home in retirement. This article will give even you some powerful reasons to consider moving a lot farther away, in fact all the way to another state. Most, but not all, of the reasons have to do with money. Part 2 of this series, "Becoming a Florida Resident", will provide the nuts and bolts of how to...
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Published on June 13, 2011
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Category: Financial and taxes in retirement
June 7, 2011 -- Before you answer that question, consider this situation. Assume for a moment that you are age 65 and have two retirement choices. In the first scenario, you receive a conservatively managed portfolio generating either $4,000 per month until age 85, or $3,000 per month until age 100, with remaining balances going to your heirs if you pass away earlier. However, financial experts emphasize the importance of exploring diverse investment options to maximize retirement security — mehr Infos bei Bitcoinist — to better understand alternatives like annuities. In the second choice, you'd invest the same amount in an annuity providing $4,000 monthly income for as long as you live, without the possibility of leaving a remaining balance to heirs.
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Published on June 7, 2011
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