Key Points The latest Social Security Trustees report revealed that benefits could be reduced as early as 2032 if Congress doesn’t intervene. Current estimates point to a potential 22% cut. Even though lawmakers have never let Social Security cut benefits before, it’s important to prepare for that possibility, just in case. The $23,760 Social Security […]
Planning for an enjoyable retirement is a primary goal of many financial planning clients. For many, this means working full-time well into their 60s before leaving the workforce entirely. However, this ‘traditional’ view of retirement might not be a fit for every individual, as some might not want to wait until they reach their mid-60s […]
Michael Kitces
Key Points Many seniors rely on Social Security to provide a substantial portion of their income in their later years. Cost-of-living adjustments occur in most years to help benefits keep pace with inflation. Experts believe a flaw in the COLA formula may have cost retirees as much as 20% of their buying power in recent […]
Key Points Delaying Social Security until 70 can feel like a major sacrifice since you become eligible for benefits at 62. Putting off your claim provides you with more monthly income and higher COLAs on a dollar-for-dollar basis. What’s more, you can also get higher survivor benefits for your widow(er) if you were the higher […]
Key Points Before you retire, you must make sure you’re in a good financial position. This means you have to determine what your income needs will be. You should also estimate the amount that you’ll have available to spend. The $23,760 Social Security bonus most retirees completely overlook › Are you thinking about retiring in […]
Image source: Getty Images Gen Z carries the lowest credit card balance of any working generation — about $3,493 on average, according to Motley Fool Money research. That’s roughly half of what the average millennial owes. But this stat gets misread constantly. It’s easy to think Gen Z is just better at managing their money. […]
Key Points The first of three data points needed to determine the coming year’s increase in Social Security’s benefit payments is now in hand. Although the next two pieces of information could end up being markedly different than the first, that’s unlikely. While every beneficiary’s COLA raise is the same percentage, on a dollar basis, […]
Image source: Getty Images There are plenty of credit score myths out there. For example, lots of people think that checking your own credit score will lower it, or that your income is a factor in your score. Both false. In truth, there are only a few things worth thinking about when it comes to […]
Key Points If you got a tax refund last year, reduce your withholding to free up cash today. Consider tax-loss harvesting when rebalancing your investments. Make sure your retirement contributions are on track. The $23,760 Social Security bonus most retirees completely overlook › Taxes might be the last thing on your mind when it’s sweltering […]
Key Points If you sign up for Social Security at 65, your benefits will be reduced. Despite that hit, an early claim can sometimes pay off. One thing you don’t want to do is file for Social Security at 65 because you think you need to in order to get Medicare. The $23,760 Social Security […]
By Rick Kahler, originally published at Financial Awakenings. A divorce. A house fire. A serious accident or illness. The death of a family member. Caring for elderly parents. Life events like these are some of the hardest, most emotionally draining challenges we can face. Just to make things worse, they also require us to deal […]
Rick Kahler
Key Points Healthcare can be a huge expense for retirees. Understanding when to enroll in Medicare and how your plan works is key. Also remember that you’re not locked into the same Part D or Advantage plan for life. The $23,760 Social Security bonus most retirees completely overlook › When you think about the expenses […]
Key Points Those faced with burdensome home expenses may downsize or move to lower-cost areas to stretch funds. Community support and social connections can provide practical assistance, but both types of connections can enhance emotional well-being. The first thing retirees living on Social Security benefits alone should consider is signing up for all government and […]
Key Points Maximizing a healthcare savings account (HSA) is a tax-efficient way to save for healthcare in retirement. Creating a separate healthcare bucket in your portfolio allows you to set aside money for medical costs. Earmarking $200,000 for lifetime healthcare expenses can transform uncertain future costs into a plan. The $23,760 Social Security bonus most […]
Key Points A mortgage in retirement is no problem, as long as the monthly payment fits safely within your budget. If necessary, you could consider making changes to your mortgage to lower payments. There are also property taxes, homeowner’s insurance, and home maintenance to keep up with, too. The $23,760 Social Security bonus most retirees […]
Key Points Social Security’s intended retirement age, or full retirement age, for this year is 67. However, beneficiaries have the option of claiming as soon as they’re 62 years old. Just understand how much it will affect what you collect if you claim at this age. The $23,760 Social Security bonus most retirees completely overlook […]
Key Points Required minimum distributions can add to your taxable income. They can also have other consequences, such as higher Medicare premiums. One trick could help you satisfy your RMDs without increasing your tax bill at all. The $23,760 Social Security bonus most retirees completely overlook › If you have money saved in a traditional […]
Key Points Inflation will continue to drive up living expenses. Aging typically brings increased healthcare costs, and Medicare doesn’t cover everything. Social Security may not go as far in the future as it does today. The $23,760 Social Security bonus most retirees completely overlook › At first glance, the idea that you might spend less […]
Rick Kahler, CFP(R), is president of Kahler Financial Group and writes the weekly Financial Awakenings column on the psychology of money, retirement and financial behaviour.
