One of the most common questions people approaching retirement age have is “When should I claim my Social Security retirement benefits?”. In fact a new client recently asked me “No one in my family has lived past 80, so shouldn’t I claim my Social Security early in order to make sure I actually get to use it?” The timing of that decision can have an enormous impact on your financial situation in retirement, and I find that some of the advice given to people doesn’t show the full picture. When … [Read more...]
Calculating Your Windfall Elimination Deduction From Your Benefit
If you’ve ever worked for an employer who doesn’t withhold Social Security taxes from your salary, you need to consider the Windfall Elimination Provision when determining how much you’ll earn each month from your Social Security retirement benefit. The Windfall Elimination Provision (WEP) can affect how the Social Security Administration (SSA) calculates your retirement or disability benefit. If you work for an employer who doesn’t withhold Social Security taxes from your salary, such as a … [Read more...]
Is the Consumer Getting Good Unbiased Education About Fixed Indexed Annuities?
Recently I found myself wondering what consumer education on annuities is really like and if people are getting a good, unbiased education about them. It’s important to know that there are 3 kinds of annuities: Fixed Annuities Fixed Indexed Annuities (or Indexed Annuities) Variable Annuities … [Read more...]
Commission or fee based investment management – which compensation model is better for the client?
Commission or fee based investment management - which compensation model is better for the client? In my last post, I explained how commission-based investment advisors make their money since they don’t directly charge clients a fee. In this post, I’m going to explore if the difference in compensation models present any conflicts of interest between client and advisor and which is best for you. Let’s look at an imaginary investment advisor named John. If John sells an A Share Class … [Read more...]
Case Study – How a Social Security class participant is getting an additional $60,000+
Many people don’t realize that they are eligible for Social Security divorced spouse benefits so they never end up applying for them. That was the case for a recent participant in my Maximizing Social Security class. After the class, he went through the process of getting his divorced spouse benefits and laid out his experience for you to learn from below. … [Read more...]
What Everyone Should Know About How Commission-Based Investment Advisors Work Part 1
What Everyone Should Know About How Commission-Based Investment Advisors Work Recently I had a conversation with a client where we reviewed their investment accounts and the topic of investment management fees came up. This client had previously worked with an investment advisor who worked on a commission basis so they weren’t used to seeing these fees on a statement. Of course I’m very transparent about the way I am compensated as an investment advisor, but when you come from working … [Read more...]
Is it better to contribute to a Roth account or a non-Roth account?
Many people ask if it is better to contribute to a Roth IRA/401k or a Traditional IRA/401k. Before I get into the breakdown of the numbers, we need to cover some definitions. Contributions to a traditional IRA or 401k can be taken as tax deductions in the tax year they are made. These deductions reduce your gross income, thus reducing your tax burden for the year. Both contributions and earnings are tax-deferred until the funds are withdrawn. That means that when you withdraw the funds, they … [Read more...]
Where can you get a guaranteed 14% return on your money?
When it comes to planning for retirement, many of us neglect to see the real value that Social Security provides. Perhaps that’s because active investing is seen as more exciting or because we hear a lot of doom and gloom about Social Security. But your Social Security retirement benefit has extraordinary value. Let’s consider a married couple, a man and a woman who are both 65 years old that are retiring this year. And of course we don’t have control of this, but let’s assume that they both … [Read more...]
Aren’t all financial advisors the same?
Something I’ve noticed lately through conversations with prospective clients is that many people believe that all financial advisors (and people who give any sort of financial guidance/advice) are the same and that they basically do the same things. I completely understand why people think this. There are many different titles like financial advisor, financial planner, financial counselor, financial consultant, investment advisor, investment consultant, investment counselor, the list goes on … [Read more...]
What is the impact of working while receiving your Social Security benefit?
According to Pew Research, more older Americans – those ages 65 and older – are working than at any time since the turn of the century. Whether it’s a desire to work, a need to work, or a combination of both, you’re certainly not alone if you’re planning to work past the age of 65. You can get Social Security retirement or survivors benefits and work at the same time. But, if you’re younger than full retirement age, and earn more than certain amounts, your benefits will be reduced. But … [Read more...]
