I recently was explaining the difference to a client between the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). I realize that it is a distinction that many probably don't understand and thought I would explain for those who are curious and are impacted by it. Both the WEP and the GPO impact the same person… someone who earned a non-covered pension. Non-covered means that it was earned in a job in which you were not paying Social Security taxes and were part … [Read more...]

Did you know there's actually a disadvantage of having too much Social Security? I was recently working with new clients who I’ll call Rick and Patty. They had continued to work and save into their late 60s and planned to activate each of their Social Security benefits at age 70. Because they both had a substantial working record, their combined Social Security's would be well over $80,000 per year. What that meant, however, is that if one spouse passed away, the surviving spouse's income … [Read more...]

Did you know that a majority of retirees are going to need some form of long-term care, whether at home, or in a facility? And the costs are going to range substantially, depending on the level of care. According to the 2018 Cost of Long-Term Care study by Genworth, homemaker services can cost up to $4,000 per month and a private room in a nursing home is $8,400 per month. Several years of these types of costs can make a huge dent in a retirement nest egg. Have you thought about where … [Read more...]

Have you ever had the experience of seeing all your 401(k) contributions go up in smoke during a bad market cycle? You look at your statement, and it seems like you've made no progress at all… Everything you contributed has been swallowed up by losses, and you feel as if your contributions aren't helping at all. Let me encourage you to look at what's happening in a different way so that you don't give up and throw in the towel. It's important to understand what is happening when you … [Read more...]

Did you know that a retiree's greatest fear is running out of money? It's a legitimate concern… We saved less and were living longer. The markets are more volatile and uncertain than they've ever been. Some of us are faced with providing for ourselves and for aging parents, and Social Security certainly isn't replacing the  paycheck we enjoyed while we were working. That's one of the greatest joys in my work… Seeing initial anxiety melt away after creating a realistic game plan that … [Read more...]