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Category: Investment Strategies for Seniors

giving tuesday strategies

Giving Tuesday: How to Factor Charitable Giving Into Your Financial Plan

Financial security is a top concern for many Americans. When it comes to planning for retirement, the necessity of saving enough money is front-of-mind for virtually every investor. But there’s one area where most people are missing out on an opportunity to build their legacy—charitable giving in their retirement plans. Though 2020 was a difficult year for many around the world, the numbers pointed to a heartwarming trend in charitable giving among the American public. Data collected by ​​the Fundraising Effectiveness Project found that giving was 7.6% higher throughout the first three quarters of 2020 than the prior year, and 25% more giving was done on Giving Tuesday. This month, in the spirit of Giving Tuesday, we’ll be outlining several strategies you can use to make charitable giving a fruitful part of your life and retirement plan. 1. Work giving into your budget Most people who are familiar with budgeting...

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Medicaid Liens and Estate Recoveries

What are Medicaid liens and estate recoveries? Federal law encourages states to seek reimbursement from Medicaid recipients for Medicaid payments made on their behalf. There are two types of cost-recovery actions against the assets of Medicaid recipients: (1) real or personal property liens, and (2) recovery from decedent’s estate. A Medicaid lien is a form of attachment against your property that signifies that someone else has certain rights or interests in your property. A lien makes it impossible for you to sell or refinance your property without the state’s knowledge and opportunity to collect. While federal law allows a lien to be placed on your home at the time you become a permanent resident of a nursing home, not all states have adopted such provisions. Along with the use of lifetime liens, your state may be able to seek reimbursement from your estate after you die. For Medicaid purposes, the...

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Myths and Facts about Social Security

Myth: Social Security will provide most of the income you need in. Fact: It’s likely that Social Security will provide a smaller portion of retirement income than you expect. There’s no doubt about it–Social Security is an important source of retirement income for most Americans According to the Social Security Administration, more than nine out of ten individuals age 65 and older receive Social Security benefits. But it may be unwise to rely too heavily on Social Security, because to keep the system solvent, some changes will have to be made to it. The younger and wealthier you are, the more likely these changes will affect you. But whether retirement is years away or just around the corner, keep in mind that Social Security was never meant to be the sole source of income for retirees. As President Dwight D. Eisenhower said, “The system is not intended as a substitute for...

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How can I get an estimate of my Social Security benefits?

  The easiest way to get an estimate of your future Social Security benefits is to use the benefit calculators available on the Social Security Administration’s website, www.ssa.gov. You can estimate your retirement benefit based on your actual earnings record using the Retirement Estimator calculator, then create different scenarios based on current law that will illustrate how different earnings amounts and retirement ages will affect the benefit you receive. Other benefit calculators are also available that can help you estimate disability and survivor’s benefits. You can also sign up for an account so that you can view your online Social Security Statement. Your statement contains a detailed record of your earnings, as well as estimates of retirement, survivor’s, and disability benefits. It also includes other information about Social Security that will be very useful when planning for retirement....

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Social Security Claiming Strategies for Married Couples

Deciding when to begin receiving Social Security benefits is a major financial issue for anyone approaching retirement because the age at which you apply for benefits will affect the amount you’ll receive. If you’re married, this decision can be especially complicated because you and your spouse will need to plan together, taking into account the Social Security benefits you may each be entitled to. For example, married couples may qualify for retirement benefits based on their own earnings records, and/or for spousal benefits based on their spouse’s earnings record. In addition, a surviving spouse may qualify for widow or widower’s benefits based on what his or her spouse was receiving. Fortunately, there are a couple of planning opportunities available that you may be able to use to boost both your Social Security retirement income and income for your surviving spouse. Both can be used in a variety of scenarios, but...

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Social Security: What Should You Do at Age 62?

Is 62 your lucky number? If you’re eligible, that’s the earliest age you can start receiving Social Security retirement benefits. If you decide to start collecting benefits before your full retirement age, you’ll have company. According to the Social Security Administration (SSA), approximately 74% of Americans elect to receive their Social Security benefits early. (Source: SSA Annual Statistical Supplement, 2012)Although collecting early retirement benefits makes sense for some people, there’s a major drawback to consider: if you start collecting benefits early, your monthly retirement benefit will be permanently reduced. So before you put down the tools of your trade and pick up your first Social Security check, there are some factors you’ll need to weigh before deciding whether to start collecting benefits early. What will your retirement benefit be? Your Social Security retirement benefit is based on the number of years you’ve been working and the amount you’ve earned. Your...

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Reverse Mortgages

What are reverse mortgages? Older individuals who own their homes often find themselves “house rich and cash poor.” Developed to address this dilemma, a reverse mortgage provides funds–all at once or over time–to an older homeowner by drawing against the equity built up in the residence. Unlike “forward” mortgages, reverse mortgages are not repaid on a monthly basis. The total loan (including the accumulated interest) is repaid when the last surviving borrower sells the home, permanently vacates the property, or dies.  In most cases, the funds the homeowner receives may be used for any purpose: to supplement a fixed income, to pay for at-home medical care, or to see the world. For an individual facing a retirement income shortage or an increased dependency on medical care, reducing home equity with a reverse mortgage may be preferable to selling the home to raise much-needed cash. A reverse mortgage can have drawbacks,...

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Understanding Social Security

Over 59 million people today receive some form of Social Security benefits, including approximately 38 million individuals age 65 or older. (Source: Fast Facts & Figures About Social Security, 2011) But Social Security is more than just a retirement program. Its scope has expanded to include other benefits as well, such as disability, family, and survivor’s benefits.  How does Social Security work? The Social Security system is based on a simple premise: Throughout your career, you pay a portion of your earnings into a trust fund by paying Social Security or self-employment taxes. Your employer, if any, contributes an equal amount. In return, you receive certain benefits that can provide income to you when you need it most–at retirement or when you become disabled, for instance. Your family members can receive benefits based on your earnings record, too. The amount of benefits that you and your family members receive depends...

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Social Security’s Survivors Benefits

Social Security Survivor’s BenefitsWhen you think of Social Security, you probably think of retirement. However, Social Security can also provide much-needed income to your family members when you die, making their financial lives easier. Your family may be entitled to receive survivor’s benefits based on your work recordWhen you die, certain members of your family may be eligible to receive survivor’s benefits (based on your earnings record) if you worked, paid Social Security taxes, and earned enough work credits. The number of credits you need depends on your age when you die. The younger you are when you die, the fewer credits you’ll need for survivor’s benefits. However, no one needs more than 40 credits (10 years of work) to be “fully insured” for benefits. And under a special rule, if you’re only “currently insured” at the time of your death (i.e., you have 6 credits in the 13 quarters...

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