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March 28, 2024

Federal Employee Retirement and Benefits News

Tag: Social Security

Social security

 

There’s So Much More Social Security Possibilities For Couples Than You Think.

Only a few spouses I’ve met think of filing for Social Security benefits as a huge decision with significant ramifications. Some of my long-term consultants tell me that Social Security is simple and not worth getting the spouses together in the office to discuss.

It Takes More

You probably know that when you wait till 70 before filing, your Social Security benefit amount will be the highest. So, if they file for benefits immediately, you become eligible (62 for retirement benefits or 52 for disability claims), and your benefit will be the lowest.

However, it is not how married couples can maximize their Social Security benefits. Failure to plan on when to file for Social Security can result in the loss of thousands of dollars.

Make Sure You Consider All of the Possibilities.

Social Security is not simple. Getting it wrong can hurt your retirement income. First, you should consult with a financial advisor who will assess your and your spouse’s situation from all sides, as no two situations are the same.

Varying work histories result in different primary insurance amounts (PIAs) at different FRAs for two people. The PIA is the benefit you get for postponing or not claiming benefits until you’re 70 years old.

How long do you think you’ll live?. You should be aware that your life expectancy will affect the overall amount of Social Security payments you and your spouse can get.

Here’s a Deep Dive into the Social Security Sea.

I recently worked with an advisor who had trouble with a couple’s case. In 2019, the husband applied for Social Security benefits. The wife, 64, had retired but had not applied for Social Security yet.

The question was whether she could take a spousal benefit for the next 3+ years based on her husband’s benefit. Then, when she reaches 70, switch to her own benefit, which will almost certainly be larger due to Delayed Retirement Credits.

A restricted application is the filing technique that the advisor believed was used. However, because she hadn’t turned 62 before January 1, 2016, the wife wasn’t entitled to file a restricted application under the Bipartisan Budget Act of 2015.

Her full retirement age (FRA) is two years away. To maximize the total benefits that she and her husband would receive, we suggested she take 24 months of lower benefits. If the woman outlives her husband, she will be entitled to survivor benefits based on her husband’s record.

Surprised?

Admittedly, this is one complicated illustration of a couple’s approach. This example emphasizes the need to take a broad view of all possibilities available under the over 2,700 Social Security rules.

Waiting until you’re 70 isn’t necessarily the best approach to get the most out of your Social Security income.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

A New Bill Could Give Seniors an Additional $2,400 Each Year in Social Security Benefits

If a new bill recently introduced to Congress gains approval, beneficiaries of Social Security could receive an annual benefit increase of up to $2,400. This is something that senior citizens no doubt would undoubtedly welcome as rising inflation nullifies their annual cost-of-living increases.

According to CBS News, on June 9, United States Representative Peter DeFazio (D) of Oregon and Senator Bernie Sanders (I) of Vermont proposed the Social Security Expansion Act. Everyone already receiving Social Security benefits or reaching 62 in 2023 would be eligible to earn an additional $200 in their checks every month if the measure becomes law.

There are several reasons the measure should be passed at this time. First, it comes after a declaration by the Social Security Administration earlier this month that citizens of the United States will no longer get their total Social Security payments in around 13 years if efforts are not taken to strengthen the program.

In addition, it takes place amid a period of historically high inflation, which has a disproportionately large influence on older people living on fixed incomes, many of whom depend entirely on payments from Social Security.

The Social Security Administration (SSA) determined this year’s cost-of-living adjustment (COLA) to be 5.9 percent based on the inflation rates from 2021. Since that time, however, inflation has reached much beyond 8 percent, meaning that people who receive Social Security now see their benefits reduced.

By increasing the amount of money sent to each beneficiary every month, the new legislation hopes to relieve some of the monetary pressure. Because the typical amount received from Social Security each month is around $1,658, an increase of $200 would result in a 12 percent pay raise.

According to Martha Shedden, president of the National Association of Registered Social Security Analysts, many seniors rely on Social Security for the bulk of their income. An additional $200 per month may make a difference for many individuals.

The proposed legislation would, among other things, increase the monthly payout amount and make various other modifications to the program itself. The Consumer Price Index for the Elderly (CPI-E) might be used instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers as the basis for calculating the yearly cost-of-living adjustment (COLA) (CPI-W).

A further modification would involve adding additional money by imposing the Social Security payroll tax on any income over $250,000. At this time, earnings greater than $147,000 are exempt from the Social Security tax.

Even if Congress does not approve the plan in its current iteration, commentators anticipate that Social Security will undergo some modifications to meet the requirements of beneficiaries long into the foreseeable future. So, it was all about the new bill passed for an additional $2,400 as a social security benefit for older citizens.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

What if You Don’t Have Enough Money When You Retire?

What if you approach retirement age and realize your pension won’t be enough to sustain your current lifestyle? Many financial gurus propose retiring with 80% of your pre-retirement income. This number comes from the fact that, after you retire, payroll taxes will no longer be a part of your life.

There are many reasons why a person may not have adequate savings for retirement. Maybe they started saving later in their career, spent money on their children’s college education, or did not set a budget and spent more than they should have. People just starting their careers typically don’t think about retiring until their forties. This reduces their time to save and compound money.

There are two ways to compensate for the deficit: working longer and living in retirement for a shorter period of time. Neither of these may seem pleasurable, but if they enable you to enjoy your retirement worry-free, they will be beneficial.

A person with a long life expectancy and a job they like or tolerate is more likely to work beyond the typical retirement age.

In a 2018 NBER study titled “The Power of Working Longer,” the authors compare the advantages of working longer with those of raising defined contribution plan contributions to save more for retirement. The results were amazing. Working an extra three to six months is comparable to adding 1% to a defined contribution plan over 30 years. According to the study, if a person waited ten years before retirement to raise their savings, it would take just one month of extra work to match the additional 1% they saved aside, owing to the shorter time for the contributions to grow.

How did working longer succeed? Social Security payouts are rising. Most individuals who read the TSP Investment Report were born in 1960 or later and have reached their Social Security Full Retirement Age (FRA), which is 67. A person’s Social Security payment is reduced by 6.67% (for the first three years before their FRA) or 5% for each year they apply before their FRA (for many years over three). Monthly discounts (one-ninth of one percent, or one-twelfth of one percent). A person’s Social Security pension would be lowered by 30% if they applied at age 62 instead of waiting until full retirement age (FRA). Working beyond FRA leads to an 8% annual increase until age 70 when it levels out. Seventy-year-olds who apply for Social Security earn 24% more than those who retire at full age. Working longer often increases the income base used to compute Social Security benefits.

In an ideal scenario, your FERS annuity, Social Security, and TSP will replace 80% of your retirement income. If you haven’t reached that point already, there’s still a solution and hope in sight. 

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Inflation reaching an all-time high may result in a larger Social Security cost-of-living adjustment in 2023

Social Security beneficiaries will get a 5.9% cost-of-living adjustment to their monthly payouts beginning in 2022, the greatest increase in almost 40 years.

However, as inflation rises month after month, the purchasing power of those benefits increases has dwindled.

According to March statistics provided by the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers, or CPI-U, increased 8.5% from a year ago.

In the meantime, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a metric used by the SSA to determine the annual cost-of-living adjustment or COLA, increased 9.4% in the previous year.

According to The Senior Citizens League, a nonpartisan senior group, the average retirement payout in 2022 will be $1,656.30, up from $1,564, a $92.30 increase per month.

They also stated that if those benefits kept up with inflation, the average retirement payment would have to be $1,711 based on March statistics, an increase of $147 from the average retiree benefit for 2021.

Thus far this year, average retirement benefits have a shortcoming of $162.60, according to the group’s calculations.

Retirees feel the pinch as prices in essential categories such as food, housing, home heating, and prescription medications continue to climb. The typical Medicare Part B premium increased by 14.5% to $170.10 per month in 2022.

Inflation reaching an all-time high may indicate a larger COLA in 2023.

Based on March figures, the Senior Citizens League expects the COLA for 2023 to be 8.9%. That’s an increase over the group’s previous projection of a 7.6% COLA for next year.

Coming months’ CPI-W data will be factored into the official COLA calculation for next year. In order to establish if there’s a COLA increase, the SSA normally takes the average of the CPI-W for the third quarter of the current year and compares it to the average for the third quarter of the previous year.

Some experts claim peak inflation may occur sooner.

Jason Furman, a Harvard professor and former top economic advisor to President Obama, recently tweeted that core CPI is down and core services are just marginally up, which gives him “a ray of optimism.”

According to Mary Johnson, the Senior Citizen League’s analyst, inflation started to accelerate in March 2021, and it might reach a tipping point this year, with a potential slowdown in the following months.

If this occurs, the estimated Social Security COLA for 2023 would be decreased.

Contact Information:
Email: [email protected]
Phone: 6023128944

Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!

Here’s Why Seniors Should Forgo 8 Years of Social Security Benefits

Giving up eight years of checks may result in you having more money in the end.

As a retiree, every dollar matters since you no longer have a paycheck to rely on. However, if you want to maximize the amount of money coming into your household each month, it may make sense to forgo eight full years of Social Security payments.

Forgoing retirement checks for years may sound insane, but it might benefit you in many ways.

Why would you want to forgo eight years of earnings?

So why would you choose to forgo eight years of Social Security benefits that you are entitled to? The rationale is straightforward.

When you reach 62, you can begin receiving Social Security benefits. However, those advantages rise each year you wait until you get to 70. And the rise is significant. That’s because Social Security constructed its formula so that those who claim benefits at an early age receive more checks, but each one is smaller. On the other hand, people who postpone will receive substantially larger payouts later in life. By forgoing their checks from 62 to 70, the average senior with an average benefit might end up with over $900 extra each month.

A larger monthly check can make a tremendous difference in your capacity to make ends meet later in life when your savings are usually running out. But that’s not the only advantage of deferring your Social Security claim. By postponing your claim, you may have a higher lifetime income and a higher monthly income.

Waiting provides you the best chance of receiving greater lifetime benefits since the benefits formula was meant to balance the money received by early and late filers – but it was devised when life expectancies were shorter. With higher life expectancy rates in current times, you may end up with so many larger checks when you claim them at 70.

Delaying the commencement of your payouts until 70 increases your check size, which benefits your spouse if you were the bigger earner and died before. Because Social Security survivor benefits allow your widow(er) to keep the greater of the two payments flowing into your household, your spouse will be better off. If you forgo eight years of Social Security to increase your monthly payout, your partner will be entitled to the much bigger check you earned after you die.

How do you know if filing a delayed benefits claim is suitable for you?

As you can see, there are three compelling reasons to postpone Social Security: A higher monthly benefit, a better probability of maximizing lifetime income, and a better capacity to care for a lower-earning spouse.

However, there are some drawbacks, the most prominent being that you will lose out on many benefits that you could have gotten, and you’ll have to figure out how to sustain yourself without Social Security until you reach 70.

However, unless you’re unmarried and have health issues, or you’re a lower-earning spouse claiming early to allow a higher-earning spouse to wait, the advantage of delaying your benefits claim may outweigh the disadvantages, and delaying the start of your Social Security benefits may be your best option.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

7 Medicare Facts That You Might Not Understand

1. You’re Responsible for Medicare Costs

Some Medicare services are free. No matter how much you contribute, you must pay a monthly premium. A percentage of your monthly wages is withheld to finance Social Security payments.

Annually, Medicare costs rise. Elder Law Answers reported a 15.5% increase in 2022. Medicare Part B‘s monthly fee rose to $170.10. Social Security’s 5.9% cost-of-living increase for 2022 hurt most Medicare enrollees. Inflation, anticipated to hit 8.6% in May 2022, hurts those on fixed incomes.

2. Unfortunately, Medicare Doesn’t Pay for Everything

Medicare Part A includes hospitals, home healthcare, nursing homes, and hospice care. The keyword here is “helps.” Medicare doesn’t cover everything. It covers most outpatient treatments (about 80 percent). You pay deductibles, co-pays, and co-insurance. If you’re sick, all these fees could add up.

Medicare Part B funds outpatient care, durable medical equipment, and preventive treatments like physicals. Again, “helps” is the key term. Medicare includes co-payments and coinsurance (up to 20 percent). Medicare does not cover eye and dental treatments.

3. Extra Cost for Coverage of Prescription Drugs

Part D, Medicare drug coverage, is separate insurance that must be purchased if you require coverage for prescription medications. When you enroll in Medicare for the first time, you will also be able to select the Part D prescription drug plan.

4. A Choice for Healthier Consumers

At 65, you can choose between regular Medicare and Medicare Advantage. Medicare Advantage differs from supplement plans (Medigap).

Medicare Supplement plans include co-payments and deductibles. Unlike original Medicare, your choice of doctors, healthcare providers, and treatment facilities will be limited. Medicare Advantage plans deal with different doctors and hospitals.

Medicare Advantage plans have modest monthly premiums and look comprehensive, yet they typically have high out-of-pocket expenses. Laboratory tests, x-rays, outpatient surgery, the ER, and other procedures have co-payments. Costs could mount.

5. Medicare coverage gaps are remedied by supplemental insurance

Private businesses offer Medigap policies and are meant to fill in the gaps left by Original Medicare. Medigap policies can assist with out-of-pocket expenses such as co-insurance and deductibles.

In contrast to Medicare Advantage plans, Medigap policies do not require members to join a particular medical network. They allow you to see any doctor or hospital participating in the original Medicare program. And a reference from your family doctor is not required.

Medigap policies are helpful for folks who are sick or have special medical requirements. They are adaptable and limit the amount of money the customer must pay out of pocket.

6. There are Constraints on Medigap Coverage

Medigap policies and Medicare Advantage plans are incompatible, unfortunately. There is no way to do both things.

Prescription medication coverage is not permitted in any newer Medigap policies. You must enroll in Medicare Part D or obtain separate prescription drug coverage if you need financial assistance to pay for your medications.

Vision and dental care are typically not covered by Medigap policies.

Emergency medical care incurred while abroad is covered by some Medigap policies. However, restrictions do apply. After a $250 deductible and up to $50,000 lifetime maximum, Medigap policies cover 80% of some emergency expenditures.

7. There are Penalties

It’s essential to enroll in Medicare Parts A, B, and D as soon as you become eligible for them.

The first part of the answer is that your premium may go up by 10%. If you don’t sign up for coverage for a full year, you could have to pay the higher cost for two years.

For Part B, you will be charged an extra 10% for every year that you were eligible for Part B but did not purchase it. It’s a permanent increase to your premium that you’ll have to pay for the rest of your life.

You may have to pay a penalty if you don’t have Part D or other drug coverage for more than 63 days after your original enrolment period. This fee is calculated by multiplying the “national base beneficiary premium” by the total number of months you were without Medicare Part D coverage. If you are enrolled in Medicare Part D, you will be responsible for the associated penalty.

You are automatically enrolled in Medicare if you are 65 or older. Medicare is a health insurance program for the elderly and handicapped. Most Medicare participants contribute through payroll taxes.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Why Jeffrey Levine Believes Retirees Should Delay Social Security

According to Jeffrey Levine, the RIA Buckingham Wealth Partners firm’s chief planning officer, now is the ideal time for advisers to demonstrate their value to their clients, particularly those on a fixed income. He says one way to go about doing this is by implementing designs, building, and protecting strategies for all of its clients, regardless of their age or whether they are pre-retirees or retirees.

Levine noted that the idea “combines components of what’s commonly known as life planning with a data-driven approach to the technical elements of a financial plan and some novel approaches to conduct the monitoring/updating portion of an ongoing planning partnership.”

In a recent email interview, Levine answered some questions about what he and his firm are doing to assist clients in overcoming the numerous hurdles that investors will face in 2022.

How does Buckingham Wealth Partners plan on helping clients in dealing with market volatility this year? 

We’ve explored a variety of approaches to assist consumers in dealing with the current market volatility. Communication and education are first and foremost, and we’ve accomplished this through various methods, including webinars, emails, and, when needed, direct one-on-one conversations.

When we build client portfolios, we think about the long term. And, throughout time, we “know” that there will be excellent markets and terrible markets, times of high volatility and periods of low volatility, etc.

We don’t usually look to make significant asset allocation modifications in response to the “news of the day” because we use an evidence-based strategy. Rather, we try to educate clients on the benefits of staying invested in a well-balanced portfolio.

Of course, this isn’t to suggest that there aren’t some efficient steps they can take to benefit from market volatility somehow. For example, we’ve executed trades in several of our clients’ taxable accounts to collect losses that will (hopefully) be used to offset potential capital gains. Other clients have also benefited from Roth conversions at cheaper valuations.

How is Buckingham Wealth assisting retired clients with inflation? What should other advisors do to help retiree clients?

Inflation is a huge concern for all clients, but those on fixed incomes are especially vulnerable. When working with retirees, making the correct “big picture” decisions is the first step in dealing with (possible) inflation. When to file for Social Security is one of those major decisions.

Everyone’s circumstances are unique, but we’re firm believers in the long-term advantages of deferring Social Security benefits wherever possible. Because Social Security benefits are subject to annual cost-of-living adjustments, postponing benefits is one of the finest tools for fighting inflation available to a (pre-) retiree.

The client’s asset allocation is another large picture factor. A fully-diversified portfolio can help offset the effects of a range of risks, including inflation. Of course, getting the more minor decisions “right” also helps.

How is Buckingham Wealth assisting clients with annuities?

We don’t use annuities very often in our planning at the moment. However, if appropriate, we will collaborate with third parties to develop a solution that will assist us in meeting the demands of individual clients.

We’re keeping an eye on several annuity-related issues. Finally, there appears to be a drive (finally) to produce more RIA-friendly [multi-year guaranteed annuities] and even income annuities.

What would you advise other advisors to undertake this year to assist pre-retiree clients? How will you assist retirees?

While there are some distinctions between retirees and pre-retirees, I’m not sure I’d divide our customer experience so sharply between the two groups.

Regardless of age, we seek to implement the Design | Build | Protect concept for our clients at a high level. That philosophy combines aspects of life planning with an evidence-based approach to financial planning.

Based on my position, I can devote most of my time to the technical aspects of financial planning. The major dilemma for most organizations is “how do you design a system that can give a consistent planning experience while taking into account each client’s unique planning demands?”

Our Wealth Planning Conversations are the answer to that question. Each Wealth Planning Conversation includes several key elements, such as our evidence-based default perspective on a particular strategy, issue, or topic, what we believe is the acceptable role for an advisor, a list of best practices, valuable resources, and even a conversation guide to assist advisors in determining how to best communicate these issues with clients.

It’s through all of these wealth planning conversations that advisors are empowered to provide clients with a consistent yet customizable experience.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

Inflation In 2022 And The 2023 COLA

The yearly Cost-of-Living Adjustment (COLA) is calculated using a federal government index compiled by the Bureau of Labour Statistics (BLS). The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is the index in question. Over the previous year, this metric has increased by 9.4%.

The COLA is calculated as follows:

• The Consumer Price Index (CPI-W) values are from the current year’s third quarter (July–September).

• These figures are compared to the average CPI-W measurement from the prior year’s third quarter (2021).

• The average reading for this year’s (2022) third quarter is compared to the previous year’s third quarter (2021).

• The difference is what beneficiaries will get as an increase in 2023, rounded to the closest 0.1%.

How much inflation will rise, and how will the final COLA computation be calculated?

The answer to this question will be calculated and announced in mid-October.

As of last year, federal retirees earned a 5.9% COLA raise under the Civil Service Retirement System’s (CSRS) Social Security benefits and annuities in 2021. Moreover, an increase of 4.9% was implemented in January 2022 for Federal Employees Retirement System (FERS) annuities.

So far in 2022, the average CPI-W for the third quarter of 2021 has increased by 5.50%. The annual COLA is calculated by comparing the changes in the CPI-W from one year to the other. Average of the third-quarter July, August, and September are used.

According to the Senior Citizens League, inflation figures from last month predicted a 7.6% COLA in 2023.

Later this year, the Federal Reserve will begin to hike interest rates to contain inflation. It is still under probability how successful it will be. Inflation has continued to rise so far.

While no one knows what will happen with inflation, some federal retirees and Social Security recipients may receive an 8% COLA increase in January 2023.

Reported Rate Of Inflation vs. Inflation in Reality

For many years, price fluctuations in a fixed-weight basket of commodities were used to measure consumer inflation. In other words, it calculated the cost of living for an individual or a family to maintain a consistent standard of life.

However, rising inflation has political ramifications. Elections are sometimes won or lost based on inflation rates. However, throughout the 1980s and 1990s, a new theory of assessing inflation arose for whatever cause.

Inflation is calculated by comparing the cost of at-bone steak from one year to the next, using a fixed-weight basket of commodities. A new measurement was developed throughout time. In other words, comparing what a family spent on food from one year to the next may be similar, but only because the family shifted from steak to chicken. Despite eating less expensive meals, the consumer’s “level of satisfaction” may remain the same.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

Is SSI And SSDI The Same Thing In Social Security?

The Social Security Administration (SSA) runs two programs that give benefits to those who are injured or blind: Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). The SSI is more comprehensive than the SSDI and may be able to help seniors in need. While the programs appear to be fairly similar, they have different eligibility requirements.

SSDI assists persons who cannot work due to a disability and their dependents. To be eligible for SSDI, beneficiaries must meet the Social Security Act’s definition of disability.

SSA Disability

A person is classified as disabled by the Social Security Administration (SSA) if they cannot work owing to a severe medical condition that has lasted (or is likely to persist) for at least one year or is expected to result in death. The condition must also hinder individuals from returning to previous jobs or adjusting to new ones.

SSDI, like Social Security retirement payments, is an earned benefit, according to AARP. You become eligible by working and paying Social Security taxes into the system. Spouses and children of disabled workers may be eligible for additional payments. Disabled children may also qualify for SSDI benefits based on their parents’ records.

Past earnings determine payment amounts. According to AARP, the average monthly SSDI compensation is expected to reach $1,358 in 2022.

SSI Disability

SSI is a needs-based program created to distribute benefits to people who are disabled, blind, or 65 and older, as defined by the Social Security Administration (SSA). Recipients must have a meager income and assets that do not exceed a specific amount. Because SSI is not related to job history, you may be eligible even if you have never paid Social Security taxes.

According to AARP, the current maximum federal SSI payment for an individual is $841 per month and $1,261 per month for a couple receiving benefits jointly. Benefits may be reduced to those levels, and income exceeding those levels may disqualify you from the program. Individuals have a $2,000 resource limit, while couples have a $3,000 restriction.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

Federal Retiree COLA 2023; The Highest Since 1981

COLA at 8.7% in 2023

The Bureau of Labor Statistics (BLS) inflation data are utilized annually to create an automated cost-of-living adjustment (COLA) for employees (BLS).

Inflation has been growing in 2022, one of the most pressing concerns for Americans today. If you are retired or planning to retire, keep an eye on monthly inflation statistics because they impact the annual COLA adjustment for federal retirees and Social Security income. The additional payments will be made available to recipients beginning in January.

The CPI-W index is used to calculate the magnitude of the increase automatically.

COLA  2023, All-Time High Since 1981.

According to the Bureau of Labor Statistics’ most recent 2022 inflation report, inflation was 0.4% higher in September based on the Consumer Price Index for All Urban Consumers (CPI-U). According to the BLS, the all-items index (a different index from the CPI-U) climbed 8.2% during the last year.

The Consumer Price Measure for Urban Wage Earners and Clerical Workers (CPI-W) is the BLS index that many FedSmith readers are interested in. This index has risen 8.5% in the last year.

The CPI-W is the most important index for retirees who receive a federal employee annuity payment. It is also the amount computed for the 2023 COLA for Social Security payments.

It is now at 291.854 on the index.

The average CPI for the third quarter of 2021 was 268.421. This is critical because the yearly COLA is calculated by comparing the year-over-year growth in the CPI-W using the average of the third-quarter months of July, August, and September. This equals an 8.7% rise over the third-quarter average last year.

The greatest COLA rise in the last three decades was 14.3% in 1980. The 2023 COLA increase will be the highest since 1981, when it was 11.2%.

In 1981, inflation was 10.3%, and the annual COLA was 11.2% higher than the current amounts.

Since Obama assumed office, inflation has been on the rise. If the methods used to calculate it haven’t evolved, the current trend could be far more severe than the one observed during Carter’s tenure. In general, modifications in inflation calculations have resulted in lower reported inflation. The updated method shifted the CPI’s idea from assessing the cost of living required to maintain a steady level of life. The revised computation technique considers the cost of living rather than price increases.

According to one source that records this data, the current inflation rate would be around 17% if the earlier calculating technique had been utilized.

Are You Dissatisfied with the Cola Increase?

In 2022, inflation has remained high. As a result, retirees may be surprised by downward revisions to their 2023 COLA expectations, as earlier estimates in 2022 were 11% or higher. The bad news does, however, have a bright side.

COLAs do not fully offset inflation. As a result, the purchasing power of a retired person’s income decreases with time. For example, since 2000, the purchasing power of Social Security income has plummeted by more than 40%.

Retirees benefit financially with lower inflation and lesser COLAs. Because COLAs do not entirely replace the purchasing power of retirement income, lower inflation and lower COLAs usually better retain a retiree’s purchasing power. While huge COLA payments in response to high inflation deliver more funds, each dollar buys less than it did previously. In light of this, seniors should view lowering COLA estimates as great news.

Why Does Your Retirement System Affect Your 2023 COLA?

Retired federal employees who retired via the FERS system will get 1% less than those who retired under the CSRS system in 2023. This is because they receive the full COLA for Social Security while not the full COLA for their pension or annuity.

Beginning in 1987, CSRS was phased away. Less than 100,000 active government employees are still employed under the CSRS system. The majority of federal retirees receive CSRS benefits.

Social Security is not a benefit of the retirement plan for CSRS employees. Some CSRS employees earn Social Security benefits based on jobs other than working for Uncle Sam. However, this is not a mandatory component of the CSRS scheme.

During their federal government careers, FERS personnel can also invest for their future retirement through the Thrift Savings Plan (TSP). The federal government contributes an additional matching amount to the TSP to offer a higher income stream during retirement.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

The Social Security Benefits Calculation Guide for 2022

Social Security benefits may be a significant component of your retirement strategy. The amount of Social Security payments you will receive is determined using a three-step method.

Step 1: Determine your average earning history 

Step 2: Determine your primary insurance amount (PIA) 

Step 3: Determine your actual Social Security benefit 

  1. Calculate your average earning history 

The first stage is to evaluate your average lifetime income. It’s not as easy as just averaging your profits after summing up all your earnings. The calculation must take into account several constraining factors.  

Only earnings that you paid Social Security taxes on will be counted against your lifetime earnings. The computation will not consider incomes that, for instance, were not subject to Social Security taxation throughout your lifetime. 

The yearly cap for Social Security taxes is $147,000 in 2022 ($142,800 in 2021). Only $147,000 of your 2022 employment income, for instance, counts in the computation of your lifetime Social Security earnings. The sum over $147,000 is not subject to taxation or factored into the computation of lifetime earnings. 

  1. Calculate your primary insurance amount 

You’ll include your average indexed monthly earnings (AIME) into a formula to get your main insurance amount, or PIA, after calculating your AIME. The foundation of this formula is a concept known as “bend points.” 

The PIA is the value that your Social Security payment would be if you applied for benefits to start at precisely the time when you would be eligible for retirement (FRA). Your PIA is multiplied by a growing or decreasing factor at any other age, even a month before or a month beyond your full retirement age, to calculate your benefit amount. 

We must first determine which bend points, based on your age, apply to you in order to compute your PIA. Bend points are chunks of your AIME, and your PIA is calculated by multiplying the sum of each bend point by a particular percentage. 

Based on numbers that were first calculated in 1977, bend points are calculated for each year. The bend points in 1977 were $180 and $1,085. Over the years, these bend points have been adjusted annually; as a result, the bend points for 2022 are $1,024 and $6,172. The bend points for 2021 were $996 and $6,002. The year you turn 62 represents the beginning of your situation’s curve. 

  1. Calculate your actual Social Security benefit 

We can determine your actual Social Security benefit using the PIA. The age you are when you start receiving Social Security payments in relation to your full retirement age, or FRA, is the additional element besides the PIA. 

Your benefit will be the same as your PIA if you petition for Social Security payments to begin at your FRA. Your Social Security income will be deducted from your PIA for each month before your FRA. In contrast, your Social Security pension will be enhanced from your PIA for each month following your FRA, up to the age of 70. 

The reductions for filing early are in relation to your FRA. The PIA is decreased by five-ninths of 1%, or 0.556%, for each of the 36 months leading up to your FRA. The decrease is 20% if benefits are started a full 36 months before FRA. 

A further five-twelfths of 1%, or 0.417%, is subtracted from the PIA for each month that is more than 36 months before the FRA. Therefore, the extra reduction is 5% for every full year (12 months) that you submit less than 36 months before the FRA. 

For each month that Social Security benefits are delayed beyond FRA, the delayed-filing increases (two-thirds of 1%) are computed. Your Social Security payment is determined by adding 8% to the PIA for each full year of delay. 

Your FRA is defined by your birth year. Your FRA is 66 if you were born between 1946 and 1954. The FRA is extended by two months for each year following 1954. The FRA is 67 for those born in 1960 or after. 

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

Is It Ideal To Wait Until Age 70 To File For Social Security?

Preschoolers at Stanford’s Bing Nursery School had a choice more than 50 years ago. Either they could consume one marshmallow right once or wait twenty minutes and consume two marshmallows. The children were then monitored for many years. Those who waited performed better in many areas, including obtaining increased SAT scores and feeling more valuable.

The marshmallow test is applied differently to American people who are approaching retirement. At age 62, they can make an early benefit claim. They could wait until their full retirement age or hold off until they are 70. The benefits increase with waiting time.

It might seem obvious to put off doing something as long as possible. But is it essential to delay filing for Social Security payments until age 70? Here are the results of the statistics.

Opportunity Of Waiting

Let’s say you consistently received the optimum Social Security benefit amount throughout your employment and decided to file for benefits in January 2022 at 62. According to Social Security Administration, your monthly retirement pension would be $2,364.

Suppose you wait until you are 67 years old to file for benefits. Your new paycheck would be worth $3,568 per month. However, if you waited to apply for Social Security payments until you were 70, you would be paid a staggering $4,194 monthly.

This isn’t as good a deal as the 20-minute wait for double as many marshmallows for toddlers. However, delaying when applying for Social Security retirement benefits has financial benefits.

If you wait until age 67 instead of 62 to file for Social Security benefits, your monthly allowance will be about 51% higher. Your monthly payment would increase by more than 17.5% if you waited until age 70 instead of applying for benefits at 67.

Is it wise to wait until age 70 to file for Social Security benefits? 

Your monthly check will indeed be greater if you wait. However, it’s crucial to consider your overall financial gain.

The cumulative benefits for receiving Social Security at ages 62, 67, and 70 were studied. The estimates were based on the highest Social Security payment levels.

The cumulative rewards for filing at age 67 will be greater at age 76 than those for filing at age 62. The total benefits for filing at age 72 will surpass those for filing at age 67 by the time you are 87.

Here are perhaps the most significant statistics. 

In the United States, males live an average of 75 years. For women, it is 81. So, according to statistics, most Americans wouldn’t gain more from delaying Social Security benefits until age 70 since they won’t live long enough to make it profitable.

The value of money and time has also not been taken into consideration. Even if you didn’t require benefits from Social Security at age 67, you could still apply for them and use the money to buy Treasury bonds or another low-risk investment. Doing so would push out just how long it will take to vindicate the delay in receiving benefits even further.

According to Social Security Administration data, only 5% of men and 7% of women wait until they are 70. About half of Americans get Social Security benefits before reaching full retirement age, frequently due to financial necessity. Moreover, a quarter of males and just under a third of women begin collecting benefits when they become eligible for Social Security at age 62.

The Statistic Is Not You

Is it unquestionably true that you shouldn’t wait to apply for Social Security benefits in light of this analysis? No. You are not a number.

You might live a life that is significantly longer than typical. You may be able to collect substantially more overall benefits than you would have if you had done so earlier in life y delaying your Social Security claim.

Regardless of your choice, feel free to indulge in a few marshmallows. There isn’t a psychologist present.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

The FERS Annuity Is A Great Deal

Whenever it comes to ensuring your financial security in retirement, the FERS annuities are a comparative steal.  

What is a FERS annuity?

In 1986, Congress explicitly created the Federal Employees Retirement System (FERS) for federal civilian employees. Benefits are available under the FERS retirement plan from three main sources:

Two of the three benefits under FERS (TSP and Social Security) will go with you if you leave the federal government before retiring, according to the Thrift Savings Plan (TSP). 

What’s the value of your FERS annuity?

The government and you must make mandatory contributions to the FERS defined benefit plan. You spend less money on this benefit than Uncle Sam does. Your service history (measured in months and years and high-3 yearly pay) determines your FERS annuity. 

If you retire before age 62 and have completed at least 20 years of service, you will earn an annual annuity based on 1%. If you retire after the age of 62 with at least 20 years of service, you will earn an annuity based on 1.1% per year. The 1% component is used for individuals who are 62 years or older but also have fewer than 20 years of service. Employees in particular categories (such as firefighters, police officers, air traffic controllers, etc.) would be paid a larger proportion. 

How much money would you have needed to accumulate on your own to obtain a payout similar to what you will receive from your FERS annuity?

A lot of it! Consider the scenario where you have 30 years of total federal employment and retire before age 62. Your top three salaries are $100,000 annually. Once you turn 62, your FERS pension will be $30,000 per year with a cost-of-living adjustment. The COLA begins to apply when a special category employee retires. 

What amount would you have to save to earn a $30,000 annual inflation-indexed income?

The consensus is that the answer is $750,000. This is based on the so-called 4% rule, which states that if you start taking withdrawals from a lump sum at 4% and adjust them for inflation each year, there is minimal risk of running out of money. The 50 years between 1926 and 1976, encompassing the Great Depression, were used to create this rule. Then, it was compared to withdrawal rates that would protect capital. 

Bill Bengen, the financial planner who conducted the analysis, concluded that there wasn’t any possibility that a person who adhered to the 4% rule would’ve run out of cash in fewer than 33 years, even under exceptionally unfavorable market conditions. In reality, Bengen asserted that a 5% rate could be more practical, reducing the sum that must be amassed for the individual in our case to around $625,000.

According to a recent MetLife analysis, the average retirement fund amount is anticipated to be $450,000. However, for the individual in this scenario, that amount would not be sufficient to match the value of the FERS annuity. 

Would you have been capable of replacing 30% of their pre-retirement salary with savings?

Whenever it comes to ensuring your financial security in retirement, your FERS annuities are a relative steal. 

How your FERS annuity is computed

The first step is to find your current “high-3” – the highest average basic wage you have received during three consecutive years of employment. A federal employee’s high-3 pay is typically the sum of the three most recent years of compensation.

Divide your full creditable years of service by your high-3 average yearly salary, then multiply that result by 1%. 

If your high-3 average is $85,000 and you’ve worked for the government for 30 years, then you qualify. Your FERS annuity would then be $2,125 per month or $25,00 per year. Your annuity will now receive a bonus if you retire after age 62 and have at least 20 years of service. You will multiply your service years and high-3 by 1.1% instead of 1%. As a result, instead of receiving $25,500 per year, as in our previous example, you would now earn $28,050 ($2,337 monthly instead of $2,125).

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Here’s How to Get an Extra 24% Out of Social Security

Don’t accept less when you might boost your benefit checks and create a more financially secure future.

The Social Security system is not designed to replace private savings, pension plans, and insurance protection. The individual’s own effort, planning, and prudence will provide him with a higher quality of life upon retirement. The system emphasizes thrift and self-reliance while preventing destitution in our national life. 

Contrary to popular belief, Social Security is not a giveaway. It’s a system that working individuals contribute to throughout their careers in exchange for some needed assistance later in life.

Social Security, which provides, on average, approximately 40% of your pre-retirement income, is likewise unlikely to support you. Nevertheless, it’s worthwhile attempting to maximize your benefits, and there are specific methods to do so, so here’s how you may gain an extra 24 percent (or more!) from the program.

The fundamentals of Social Security

Several strategies can boost your Social Security payments, and we’ll focus on one of the most effective here. To set the scenario, everyone has a full retirement age when we can begin receiving the full benefits to which we’re entitled based on our earnings history. For the majority, the full retirement age is 66, 67, or somewhere between those ages.

However, we can begin receiving benefits as early as 62 and as late as 70 – and when we start has a significant influence on the amount of our checks.

How to get an additional 24%– or more

Each year that you postpone starting to receive your benefits after reaching full retirement age, up to 70, your checks will rise by roughly 8%. Delaying from 67 to 70 will increase your benefits by around 24%, enough to transform a $2,000 payment into a $2,480 check and increase yearly benefits from $24,000 to over $30,000. Meanwhile, starting to collect your checks early will diminish them.

Start Collecting at:

Full retirement age of 66 

Full retirement age of 67 

62

75%

70%

63

80%

75%

64

86.7%

80%

65

93.3%

86.7%

66

100%

93.3%

67

108%

100%

68

116%

108%

69

124%

116%

70

132%

124%

The table shows how some people may be able to increase their benefits by 24% or even 32%.

Think it through

Delaying may appear to be a no-brainer option, but think about the big picture:

If you start collecting later, you’ll get fewer checks overall. But conversely, those who begin early will receive many more checks.

When you start may not matter much for people who have average-length lives, except for your spouse, since the two of you could optimize benefits through a coordinated Social Security plan.

Many individuals just can’t wait until they’re 70 because they need the money now, whether due to a job loss, a health setback, needing to care for a loved one or a lack of savings. Those in bad health may benefit from starting sooner as well.

Delaying your full retirement, if possible, might pay off in ways other than increasing your Social Security payment. You’d be able to save and invest for retirement for a few more years, for example, and your nest egg will have more time to develop. But, of course, it will also have to support you for fewer years.

Delaying Social Security can be accomplished by withdrawing more from other retirement funds, such as IRAs or 401(k)s until the Social Security income stream begins.

Everyone’s situation and decision-making process will be at least slightly different. Therefore, spend some time learning more about Social Security so you can make informed decisions and get the most out of the program.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Ages at which Social Security and Medicare will deplete their reserves have been postponed

According to the latest projections from the yearly basis Medicare and Social Security administrators’ report released on June 16, the Social Security program will no longer be able to provide full benefits at the start of the year 2035, a year later than the previous projection. The current forecasts estimate that Medicare’s inpatient hospital treatment trust fund would be depleted in 2028, instead of 2026.

The good news for the predicted actuarial status of the trust funds is that the 2020 downturn’s economic recovery has been greater and quicker than expected in the previous year’s reports.

President Joe Biden stated in a speech that the study predicts that the successful economic growth fueled by vaccination and economic programs has reinforced programs that a huge number of Americans depend on and has placed our country in a stronger budgetary condition.

The paper’s authors say that the ongoing COVID-19 epidemic will not significantly affect the accuracy of their long-range projections. They did, however, point out that the report’s assumptions were created back in February before cases started rising again nationally and inflation spiked even higher.

More than 65 million people in the United States are eligible to receive benefits from Social Security, including retirees, those with disabilities, and the relatives of workers who have passed away. There are approximately 64 million people in the US who are eligible for receiving Medicare benefits.

The hospital insurance fund of Medicare is likely to receive more money than anticipated for the current budget year. Payroll taxes are one major source of funding. About 183,000,000 persons will have made such tax payments in 2021.

The analysis estimates that the monthly fee for Medicare Part B (outpatient coverage) will remain the same indefinitely at $170.10. However, administration officials have stated that the estimate, based on data from earlier this year, disregards a predicted drop caused by an incorrect estimate of the price of administering Alzheimer’s treatment Aduhelm.

Both programs are managed by trustees consisting of the Social Security commissioners and the ministers of Finance, Public Health, and Labor. There should also be two public trustees; however, seats have been empty since 2015.

The White House did not respond to an email asking if the president planned to appoint new public trustees. While trying to deal with historically high inflation, pandemic recovery, and the war in Ukraine, the United States government’s financial woes are further highlighted by the trustees’ report.

AARP CEO Jo Ann Jenkins said in response to the news that the money people earned and the account they contributed to is essential, despite the temporary rise, immediate and long-term protection of the benefits. “For their financial and health security, a considerable number of Americans depend on Medicare and Social Security, and the risks are too high,” Jenkins said. This year, the cost-of-living adjustment for the recipients of Social Security was the largest in 39 years, increasing recipients’ payouts by 5.9%.

Committee for a Balanced Federal Budget president, Maya MacGuineas, said in a statement that the benefits may be increased by 8% in 2019 due to this year’s strong inflation. According to a Treasury Department official, “Legislators have to take their heads out of the sand and stop expecting these vital programs’ budgetary issues will solve themselves.”

According to a recent analysis by the Congressional Budget Office, growing interest expenses and spending for Medicare and Social Security are the primary causes of debt growth relative to GDP. They are the result of an aging population.

Contact Information:
Email: [email protected]
Phone: 6023128944

Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!

Retirement COLA? Here’s What To Do

Millions of current and retired federal employees pay attention to the magnitude of the federal pay boost and the retiree inflation catchup every year. As a result, they are even more vital to the communities where they reside, vote, shop, and raise children.

Therefore, in his State of the Union address, President Joe Biden made a particular point of announcing that federal employees who are now working remotely will return to their offices “soon,” as in “soon.”

Both current employees and those who have already retired may be concerned about the importance of increases and COLAs, but they may be unaware of the specific amounts.

Especially when the sums are so vastly different, the system dictates that the methods used to arrive at such figures are primarily of scholarly interest to the two parties. You’ll receive what you’re looking for. Period!

Cost of Living Adjustment

The Bureau of Labor Statistics provides a cost of living adjustment for retirees. The inflation rate does not play a role in any base raise for active duty federal employees.

As a result, federal employees in high-paying cities like New York, Houston, and Los Angeles earn more than their counterparts in lower-paying states like Kentucky and Idaho. COLAs are frequently granted to retirees even while government salary increases are capped, as in 2011, 2012, and 2013.

Pay for government employees increased by 2.7 percent in 2013. Old-system civil service retirees received a 5.9 percent cost of living increase, while new-system federal employee retirees received a 4.9 percent adjustment.

In January 2023, then Vice President Biden proposed a 4.6 percent increase for federal employees. The September cost of living statistics must be reviewed to establish the retiree COLA. However, considering how quickly things have evolved, the COLA for 2023 might be a monster.

Raises vs. Cost-of-Living Adjustments

For most people, the debate over a pay increase versus a cost-of-living adjustment is purely academic. There is disappointment among those who receive the lowest percentage raise. And so it goes. However, “regular times” is the most important word. These, on the other hand, are not.

We’re in the thick of a European land war. Refugees, mainly women and children, have fled to six nations, including the United States, Germany, and Canada. Nearly 11 miles from Poland, the Ukraine conflict has shifted its focus to the east.

One assault on a member of NATO (the United States included) is an attack on all NATO members. Many people in the United States think that the recent election was rigged. Many people are eager to see how the elimination of controversial mask mandates will affect the economy.

Ex-President Barack Obama tested positive for COVID earlier this week. Who knows what effect the first large-scale gatherings in recent years — from Mardi Gras in Louisiana to the Florida beaches — will have when people return to their hometowns and colleges?

Increase in the Cost of Fuel

The fuel price looks to be rapidly rising from $4 a gallon to $5 a gallon. Unless, of course, you reside in California, where time moves at a breakneck pace. It’s a little bit! What’s next? It’s hard to say when this “return to the office” trend will run out of gas.

Supply chain issues might become worse before they get better at present. The “economy,” as most people refer to it, is affected by various factors, including new trade restrictions. Your biweekly income and monthly annuity are also real.

Will the massive wave of retirements be triggered if the gap between a COLA and a salary increase widens? It has been foretold for over a decade, yet nothing has happened — for the time being. More than a hundred thousand active-duty federal employees are now eligible to retire.

They need to determine whether they can afford to retire and rely solely on diet COLAs in an inflationary environment. To achieve this, they’ll need to see how their Thrift Savings Plan account is doing and whether they need to make any changes to its allocation in light of the current economic climate.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

You and Social Security: There’s a purpose for everything

How to Apply for Social Security Benefits as a Child

Children who qualify can get Social Security benefits based on the work history of their parent(s). The Social Security earnings of the parent(s) must be sufficient. If they meet the following requirements, biological, adoptive, or stepchildren can qualify for Social Security benefits:

  • They have a parent who qualifies for Social Security payments due to a disability or retirement.
  • They are single
  • They are high school students enrolled full-time, and under 18 or between 18 and 19 years old.
  • They are disabled and older than 18 (as long as the disability began before they turned 22).

The following illustrations will help you better understand social security benefits for children.

1: Student benefits end after they graduate and turn 19 years old. 

Williams turned 18 in March and finished his secondary education in May. His benefits expired in June because he has no intention of continuing his enrollment in a program at the secondary level.

2: When a student completes high school before turning 19 and enrolls in FTA for a secondary-level course. Her student benefits expire before the age of 19.

Emma turns 18 in April and completes her secondary education in June. She intends to continue her FTA work at a secondary school from September through December after taking a vacation in July and August. She is no longer in the FTA. Thus, her benefits expire in January.

3: The student completes high school before turning 19 and enrolls in FTA for a secondary-level course. Her student benefits expire when she turns 19.

Emma turns 18 in April and completes her secondary education in June. She enrolled in FTA for a secondary-level course in September and will remain enrolled until June. Emma will get benefits based on her FTA in a secondary-level program through March. She has already completed secondary school, so her benefits end in April when she turns 19 years old.

4. The student turns 19 years old after missing a month of class.

Benjamin completes his junior year of high school in May, takes two months off for vacation, turns 19 in July, and intends to start secondary school again in August. His benefits are still in effect through June, but they stop in July because he turns 19 during that month of absence.

5. If a student turns 19 during an FTA month and the school is a 12-month institution, the student’s advantages end on the first day of the third month after the month of turning 19. 

Amy turns 19 years old in February. Her school operates on an annual schedule, with the academic year lasting from September to June. Amy receives payments through April, and after that, her benefits end in May, the third month after she turns 19.

6. The student reaches the age of 19 during an FTA month; the school is a 12-month institution. The student’s benefits end on the first of the month following the month in which the student completes the academic year in which they are enrolled.

Amy turns 19 in April and continues her high school education through May. She’s on vacation in June and July and will be back in August to start her senior year. Her benefits last until May, when she finishes the academic year for which she is registered in the age 19 attainment month, ending in June.

7. The student turns 19 during the FTA month, the school works on a semester or quarterly schedule and requires re-enrollment, and the course ends on the first day of the third month following the student’s 19th birthday.

Joseph turns 19 on September 3. His school operates on a semester system, and enrollment is required each semester, according to the SSA-1372. The semester runs between September 18 and November 30. When Jacob turns 19 and two months old in November, he’ll still receive benefits until December, when it’s terminated.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

Stay Away From These States To Protect Your Social Security Benefits.

Should you stay away from specific states due to benefit taxes? Some people aim to save enough money so that Social Security is no longer a concern for them – that is, they don’t care what benefit they receive when they retire. However, Social Security is a lifeline for many seniors, so doing everything you can to maximize your payout is critical.

You can now take a variety of steps to increase your benefits. For one thing, you can put off filing for Social Security until you’re 70 years old. Waiting that long will pay off handsomely, and the boost you get is yours to keep for the rest of your life.

Another thing you may do to get better benefits is to avoid residing in a state that taxes them. Although most states do not tax Social Security benefits, 13 do, and knowing what states are on that list can help you keep more of your money.

You might want to avoid these states.

These 13 states tax Social Security benefits:

  • Colorado
  • Connecticut
  • Kansas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • North Dakota
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

However, this list does not tell the complete story. Many of these states provide an exemption for low- and even moderate-income taxpayers. As a result, if Social Security accounts for the majority of your retirement income, you may not be subject to state taxes regardless of where you choose to live.

But what if you’re counting on your retirement assets to provide a constant source of income? If you retire in one of the states listed above, you may face taxes on your Social Security income. Even if this is the case, you might not want to dismiss them.

Several of these states have other advantages, such as a low cost of living. Furthermore, even if you can avoid paying state taxes on your Social Security benefits, that income may be subject to federal taxation.

The income levels for federal taxes on Social Security benefits are quite low. So, if you’re already planning to pay them, state taxes might not be a deal-breaker.

Prepare yourself.

Some seniors are astonished to find that some states tax Social Security benefits. However, many people are surprised to learn that such benefits are subject to federal taxes as well.

You don’t have to retire in one of the 13 states that tax Social Security benefits. However, you should investigate that tax rate to see if you are eligible for an exemption.

Reading up on the costs you’ll face in retirement will help you plan ahead of time, and you’ll be better prepared to prevent financial stress and make any living arrangement work.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

How to Avoid These 5 Common Social Security Mistakes in Your Golden Years

An increase in monthly benefits for almost 70 million Social Security recipients is expected in 2022 due to the agency’s decision to include a 5.9% Cost-Of-Living Adjustment (COLA).

However, there are other misunderstandings about Social Security benefits that many individuals do not know about. As a result, seeking the advice of a fiduciary financial counselor is critical. These finance experts can evaluate your retirement plan and assist you in determining how the benefits from Social Security fit into your overall strategy.

According to a 2021 Northwestern Mutual poll, 71% of Americans see the need for better financial planning. However, just 29% of Americans have a financial counselor working for them.

As a result of this study, individuals who work with a financial adviser feel more at peace about their finances and have an additional 15% more money to spend in retirement, which is based on the fact that advisers are legally banned from guaranteeing returns.

Over 25 years, an investment of $500,000 from Vanguard would increase to over $3.4 million on average, whereas the predicted value from self-management would be half that at $1.69 million. An advisor-managed portfolio would increase at a rate of 8% per year over 25 years, whereas a self-managed portfolio would only grow at an annual rate of 5%.

With the help of SmartAsset’s free service, choosing a financial adviser is no longer a laborious task. An easy-to-fill-out questionnaire lets you connect with up to three local fiduciary financial advisers who are legally required to act in your best interest. Advisors are screened and subjected to our due diligence requirements throughout a brief procedure that takes no more than a few minutes.

Your Social Security payments will be available shortly if you’ve reached Full Retirement Age (FRA). Avoid these common mistakes, which might significantly affect the compensation amount you receive.

Not making the most of your money

Earning as much money as possible during your career to maximize your Social Security benefits is crucial. The employees will be taxed 6.2% in 2021 on salaries up to $142,800.

Worked less than 35 years

To arrive at your ultimate benefit, the government looks at your total earnings during the 35 years you worked the hardest. The Social Security Administration (SSA) uses the Average Wage Indexing Series but adds zeros for every year you are younger than 35 years old since wages vary over time.

Adopting Early Acceptance of Benefits When They Are Made Available

Social Security payments may begin before age 62, but you’ll forfeit 30% of your benefits for that year. However, the benefits you get when you’re 62, 66, or 67 years old aren’t your maximum benefits. Every year you delay receiving benefits until you reach the maximum benefit at age 70, your benefits will rise by 8%.

Ignoring your spouse’s financial needs

If you and your spouse have been married for at least ten years, you may defer filing for your benefits and get half of your spouse’s benefit (although several conditions may apply). A higher-earning spouse may benefit you since spousal benefits are calculated depending on the spouse’s wage. As a result, widows and widowers might also benefit from a spouse’s increased income.

The failure to consult a financial counselor in advance

Some financial experts specialize in Social Security preparation and can assist you in deciding when to take your benefits and how to avoid tax pitfalls. They may also be able to aid you in determining exactly how the benefits you get go into the computation of your income in retirement. This may reduce your reliance on the tax-advantaged accounts, enabling your savings to continue to grow tax-free.

Your neighborhood is likely home to several highly competent financial advisers. However, choosing one might prove to be complicated.

You can quickly and easily locate an experienced and trustworthy financial adviser using our no-cost service. You may now be connected with up to three verified and subjected to our due diligence standards fiduciary investment advisers that service your region. To finish the whole process of matching, you’ll only need a few minutes.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
✉ Email him at [email protected]

Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.

The Hazards of Working After Retirement

When they reach retirement age, some individuals’ top priority is to give up any and all types of employment for the remainder of their life. On the other hand, some could wish to try a different tactic.

Working after retirement may be beneficial in a number of different ways. To start, there’s the financial aspect. If you work and add extra cash to your income, you may supplement those benefits well. This is because Social Security does a lousy job of keeping up with inflation on a regular basis.

In addition, many people cannot bring a sizeable amount of funds into retirement. It is in your best interest to increase your income by working if your 401(k) or IRA balance isn’t something to write home about.

What To Do?

Working also has the potential to provide benefits to one’s social life and mental health. It might be challenging not to have any routine to guide your days, but if you have a job, you’ll have somewhere to go regularly. Working might provide you with a welcome social outlet at a time when you would otherwise start to feel isolated from the outside world.

Even though continuing to work after retirement brings with it many apparent advantages, doing so also brings with it the possibility of facing some disadvantages. The following are several things to bear in mind:

You May Wind Up Paying More In Taxes

There is no standard tax rate that everyone must adhere to while filing their returns. Instead, the top earners have a more significant proportion of their income subject to taxation, which applies to their most considerable dollar amounts of earnings.

In this regard, your entire income will be considered, including withdrawals from your retirement savings and Social Security payments. If you continue working after retirement, you might find yourself in the position described above.

You May Lose Social Security Benefits

Several individuals decide to begin collecting Social Security benefits before the traditional retirement age (FRA). If you do the same thing I did and then decide to get a job, you may find that some of your benefits are reduced or eliminated, depending on how much money you make.

You are allowed to earn up to $19,560 without affecting the advantages you receive this year. From that point on, however, you will have one dollar deducted for social security for every two dollars of income you bring into the country.

If you hit FRA this year, you can earn up to $51,960 more income before reducing your benefits. After that, you will have one dollar deducted from social security for every three dollars of income.

Should You Maintain Your Current Job After Retiring?

Even if you do end up in a higher tax bracket as a result of working during retirement and even if you do end up having some of your Social Security income withheld if you apply for benefits before your full retirement age (FRA), having a job in retirement could still end up being a very positive thing for you in the long run. You should be aware of these traps and plan around them – or make decisions to avoid them – to prevent getting caught.

In the case of the latter, this may imply delaying filing a Social Security claim until the FRA if you are aware that you would wish to continue working in some manner after retirement. After you achieve your FRA, you are free to earn as much money as you like without fear that it would in any way affect the benefits you receive from the government.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.

We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.

Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Not affiliated with The United States Office of Personnel Management or any government agency

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