What is it? Introduction If you’re the beneficiary of a large inheritance, you may find yourself suddenly wealthy. Even if you expected the inheritance, you may be surprised by the size of the bequest or the diverse assets you’ve inherited. You’ll need to evaluate your new financial position, learn to manage your sizable assets, and consider the tax consequences of your inheritance, among other issues. Issues that arise in connection with an inheritance If you’ve recently received a bequest, consider the possibility that the will may be contested if your inheritance was large in comparison with that received by other beneficiaries. Or, you may decide to contest the will if you feel slighted. If you’re the spouse of the decedent, you may elect to take against the will. Taking against the will means that you’re exercising your right under probate law (governed by the statutes of your state) to take...
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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....
Continue readingThe Traits of a Good Investor and How Women Can Make the Most of Them
Women are increasingly taking responsibility for managing their own money. That includes those who in the past may have left investing to a spouse because they were busy raising a family or had no interest in the subject, but who have since found that divorce, a spouse’s death, or the need to help a parent have forced them to learn some investment basics. However, many women, including high-level professionals who are experts in their field, may not feel confident about their investing abilities.If you’re one of them, you may have more going for you than you think. Traits such as patience, willingness to confront and deal with mistakes, and recognizing when help is needed can benefit portfolio returns, particularly for a long-term investor. Even risk aversion, sometimes a problem for women who are concerned about their investing abilities, can be an advantage if it’s applied wisely. Feel you aren’t as...
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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...
Continue readingUnderstanding 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...
Continue readingHow Women Are Different from Men, Financially Speaking
Women today have never been in a better position to achieve financial security for themselves and their families. What financial course will you chart? It is important for women to educate themselves about finances, make financial decisions, seek professional help when needed, and implement plans to ensure that they and their families will have financially secure lives. Sources 1 The National Vital Statistics Report, Volume 60, Number 4, January 2012 2 U.S. Department of Labor, Bureau of Labor Statistics, Women in the Labor Force: A Databook, December 2011 3 U.S. Census Bureau, Current Population Survey, 2011 4 U.S. Department of Labor, “Women and Retirement Savings,” October 2008 5 U.S. Department of Labor, “Women and Retirement Savings,” October 2008; U.S. Government Accountability Office, “Retirement Security,” October 2007 We all know men and women are different in some fundamental ways. But is this true when it comes to financial planning? In a...
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