Category: Medicare

The average Social Security payment isn’t that large, but it will be a significant source of income in retirement. You can have a more secure retirement if you receive higher Social Security benefits. After all, the program includes cost-of-living adjustments to help prevent the loss of purchasing power due to inflation. Sadly, the average Social Security payout is only $1,661 per month, which is relatively small.

Thankfully there are strategies you may use to increase your perks and receive larger paychecks overall. Here are some Social Security tips that will help you achieve that.

1. Maximize your monthly paycheck by filing it later.

Many people are unaware of how your age at the time you apply for social security benefits influences the amount you get. But compared to practically any other choice, this one could be more significant.

A full retirement age (FRA) is given to each retiree. The FRA age ranges from age 66 to 67 for people born in 1956 or after. You can file for social security once you clock age 62, but it’s optional.

Your monthly benefit amount decreases each month you receive a check before your FRA. On the other hand, you can postpone your FRA, and your benefits will increase for every month you wait until age 70.

The effects of filing early or late are significant. Your monthly benefits may be as much as 30% less than your normal benefits would have been had you waited if you began collecting benefits at age 62 and your FRA is 67. However, if you file at 70, it could rise by as much as 24% compared to your current benefit.

So simply delaying your Social Security benefits for an additional year or more will result in substantially larger checks and a higher monthly income for the rest of your life.

2. Increasing your benefits by working longer and earning more money.

Not only are benefits based on your age when you apply, but also your wages. Your average inflation-adjusted earnings over the 35 years when your salary was highest will be used to determine your standard benefit when you reach full retirement age.

You must work for a minimum of 35 years to avoid adding years of $0 wages when determining your average earnings, reducing your Social Security benefits. However, if your wage has increased over the years, it may be advantageous to continue working.

Your benefits calculation will disregard one of your work years for every year you continue to work after 35 years. You can therefore replace some lower-earning years in the calculation used to determine your check amount by working longer at a job that pays more.

3. Working together with your spouse can help you maximize your benefits.

If you’re married, you might be shocked to learn how much your spouse’s cooperation might affect the amount of your Social Security payment.

You can use your spouse’s retirement benefits in place of your own. Up to 50% of your partner’s normal pension at full retirement age may be covered by spousal benefits. However, you can only get them if your spouse has already applied for retirement benefits.

As such, you must decide if the higher earner should start checks as soon as possible so that spousal benefits can also start.

However, there are several situations where it makes sense for the higher earner to put off filing so they can maximize their larger benefit. This would also result in additional survivor benefits since the last living spouse in your marriage gets to keep the higher of the two checks either partner was getting.

The higher earner could postpone if a lesser earner can claim some funds to support the family. This might be the wiser decision for some families.

4. You can keep more of your Social Security benefits if you choose the right retirement plan.

Finally, consider the type of retirement account you use to save money. Social Security benefits are taxed once countable income reaches a particular level. However, withdrawals from Roth accounts do not count when assessing whether benefits are taxed; only distributions from standard IRAs or 401(k)s do.

Consider investing in a Roth throughout your career if you want to be able to withdraw as much money as you like from your investment accounts without worrying about making Social Security taxable. As a result, you might receive higher Social Security payments since you won’t have to pay the IRS a portion of your benefits.

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]

What if your favorite eating establishment’s menu grew from 15 to over 5,000 new options? Could you deal with it? Do you think it’s a good idea, or do you think it’s a bad idea? Maybe you’ll choke on your options.

Prepare to be surprised.

Starting later in the year, the federal Thrift Savings Plan (TSP) will dramatically boost the number of investment options available to active and retired government and military personnel. TSP participants might have up to 5,000 new investment alternatives by the end of the year.

So, what comes next?

The TSP is the government’s version of a 401(k) plan. It is currently valued at $770 billion. It is one of the world’s largest investment vehicles that private companies and organizations have sought a piece of since Congress established it.

The TSP is the crown jewel of investment alternatives, with a 5% match for most investors and strict control. Members of Congress, ambassadors, and the Supreme Court are all covered by the TSP, encompassing everyone from SEC lawyers to park rangers and even astronauts.

TSP has only five funds at the moment. They include three stock index funds, a bond and treasury securities fund, and ten Life Cycle funds that automatically adjust to your needs.

Environmental, social, and governance (ESG) funds will be included in the new investment possibilities. This will gratify investors who have been clamoring for greater ESG for decades. Investors will transfer up to 25% of their TSP balance to one (or more) of the newly approved funds. They’ll also have to pay more administrative costs than those who adhere to the five essential funds.

At the end of the day, the main question is whether you should invest some (or all) of your retirement savings in new options with higher growth potential.

Alternatively, you may get into the tank! According to some estimates, the TSP will provide a third to half of the income that more federal or military investors will get in retirement, assuming they invest wisely and effectively.

The new alternatives will be a boon to federal employees. They have been trying to time the market by forecasting high and low moments and then investing accordingly, especially if they know to buy low and sell at a higher price, which is more difficult in practice than it appears in principle.

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]

One of the most misunderstood components of federal retirement policy is the “lump-sum option,” often known as the “alternative form of an annuity.” Even though it is no longer widely available, many employees nearing retirement age still ask for it.

The lump-sum option was developed to replace the previous “three-year recovery rule.” A program under which retirees are exempt from paying taxes on annuity payments for up to three years in exchange for receiving a refund equal to their contributions to the federal retirement fund. For most retirees, the tax-free period was around half that long in practice.

The initial lump-sum option permitted retirees to take out an amount equal to their contributions upon retirement while accepting an actuarial reduction of their annuity amount based on their average life expectancy. After its inception in 1986, the choice was widely available and enormously popular. However, it garnered a lot of attention from those in charge of the federal purse strings, and it was repealed on October 1, 1994, for everyone save those with a medical condition that is predicted to kill them within two years.

Although everyone currently eligible for this option has a substantially shorter life expectancy, those with life-threatening diseases may elect to get the lump sum and, as such, have their annuity actuarially decreased using the same life expectancy method.

The Office of Personnel Management (OPM) maintains a list of medical problems that automatically qualify for the alternative kind of annuity. It often requires providing medical papers for it. Other circumstances are evaluated on a case-by-case basis.

Even though that transition occurred many years ago, most employees approaching retirement appear to be making plans based on the availability of a lump-sum payment. This may be because they entered government employment around the period of the original lump-sum design and still believed in it.

Those who require a lump-sum withdrawal in retirement for a specific purpose, like paying off mortgages or other debts, or making a large purchase, should consider a Thrift Savings Plan (TSP) lump-sum withdrawal.

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]

A lot of people have retired in the past few years. Many government employees have elected to end their service because of the pandemic, market instability, the shift in pace and workplace culture, and several other factors.

When it comes to deciding when to retire, many factors will go into the decision – one of which is determining what to do with Social Security.

According to Kiplinger, there are more than 500 different ways to determine when and how to apply for Social Security. Around 80 of those are solely for individuals that are married.

 

What Should a Retiree Do When Deciding on Social Security?

There’s so much misinformation about Social Security, and many people don’t know their choices. Even an SSA agent may not be aware of all your options. They also don’t know you or your lifestyle, so they’re not well-equipped to assist you in making the best decisions.

We won’t be able to cover all of the aspects of the Social Security system in this article, but we’ll discuss some of the most important things to keep in mind when filing for benefits. Learn how to get a free worksheet to help you calculate your Social Security taxes.

Special Retirement Supplement

You can get the special retirement supplement until you reach the age of 62 if you retire under FERS with 30 years at the MRA or 20 years at 60. As a federal employee, this well-known benefit is intended to bridge the gap between your exit from service and the commencement of your Social Security payment.

Waiting For The Perfect Time To File For Social Security.

Simply because you have the option to take Social Security does not mean you should.

You should be aware of the three primary target milestones for Social Security. The first is when you turn 62 and become eligible. The second is your full retirement age (FRA), ranging from 66 to 67 years old, depending on your birth year. The third is your age, which is 70. Between those dates, you can collect your Social Security payment at any time (excluding disability).

While you can start collecting Social Security at age 62 if you meet the requirements, this is the earliest date permitted (non-disability related).

Depending on your birth year, your full retirement age (FRA) is between 66 and 67. This is when you start receiving your full Social Security income (not the maximum amount). You’ll get whatever you’re entitled to based on the calculations.

A third option is to postpone filing until you reach your full retirement age (FRA).

Why would anyone want to wait? Because you received an annual raise of 8% for waiting until you were 70 years old. There’s no point in waiting until you’re 70; the bonus credits stop at 70, so grab it now if you haven’t already.

These aren’t your only options, but they’re just where you start when planning your retirement. Here are other considerations when deciding when to file for Social Security.

 

Considerations for Your Health

Another thing to consider is that you may have information about your health that leads you to believe you will not live to be extremely old. If this is the case, it might make sense to start taking Social Security before your full retirement age (FRA).

Consider your family.

If a surviving spouse applies for Social Security, they may be eligible to receive benefits from their deceased partner. If theirs is higher, they can keep it, but they also have the option of acquiring their spouse’s. Because of this, they will lose their own money, so it’s essential to plan for a drop in income (this is where a life insurance policy comes in).

 

You made a mistake in your application.

If you believe you made a mistake when applying for Social Security benefits, you usually have 12 months to withdraw your application and refund the benefits you’ve received. This might help you return to your original choices, which are ideal for you and your family.

Don’t be too hard on yourself. There is relatively little education about the complexity, and many of the rules are illogical.

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 federal 401(k) funds saw gains in November. But if the amount for the year is calculated, it has not been in surplus. Rather they have gone down for the whole year. After October, November’s Thrifts Savings Plan (TSP) collection was in black, considered the second growth month. The international stock market has recorded massive collections for certain funds. The I funds were the succeeders for October. The increase that was documented was 13.2%. The increase in the G fund was brought to light. The increase that was noted was 0.35%. And the fixed income was rebounded. It happened right after October since the increase was recorded at about 3.70%.

Stocks international have seen a way downwards. However, there has been a rebound in July and August. But for the year it is in notes, it will be written as the most negative year for funds since there was no profit, only losses. Some of the funds have seen a great rise. Moreover, the common stocks of C funds rose to 5.58% in November. The S funds were small and mid-sized businesses, which increased to 3.59%. The G funds were the only ones in the black for October. It has increased to 2.65%. There is still some time to go, and it might rise again to much more than it already has. 

Moreover, this year, everything has worked differently. The stock market has seen many changes. Every TSP (L) Fund’s lifecycle posted gains for the second month. Therefore, it has been recorded that the rise was unimaginable and a shocker for everyone. The increase in the L income funds was up 2.41% in November. The expectation has risen just like the gains. The market has aimed to get a good result in the coming year till 2065. It is estimated that it will rise to 8.03% in 2065. Just like the growth of the L fund has been on notice, the G funds remain in a deficit like every time. The two months of growth were straight except for the G fund. It has been verified to be the lowest for this year. 

Furthermore, comparing all the F, C, I, and S funds, the F fund has been down and ends at 2.65%. The S funds have been said to be the loser of the year. The decline that was logged was around 21.09%. The total drop was seen in the ongoing year 2022. However, every L fund has been dropped since January. The decline was an estimate which landed at 1.82%. The year 2022 is said to be a record for having statistics significantly below the expected rises. The plans have been formulated to respond better in the coming years. Lastly, the prediction has been made for the years till 2065. 

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]