There is an eight-year range to take Social Security. The earliest age you’re allowed to claim benefits is 62, and as such, it’s the most popular age to file for Social Security. Age 70, meanwhile, is the latest age you can claim Social Security and still get credit for delaying your benefits — so while you technically don’t have to file for benefits when you reach 70, there’s zero incentive to wait any longer. If you don’t choose to file for Social Security as early as possible (62) or as late as possible (70), you can claim your benefits somewhere in between.
In this podcast I will answer the question: How can I maximize my Social Security benefit?
The blog that addresses this question can be found at: 16 Social Security
This blog is about Social Security. I want to help you maximize your benefit to have more money in retirement.
Social Security can be an important part in a persons retirement plan. Social Security (also known as the Old-Age, Survivors, and Disability Insurance (OASDI) program) benefits are paid from the 6.2% tax on each employee’s wages (matched by employers) and the 12.4% tax on self-employment earnings.
Over 90% of U.S. workers are covered by Social Security and are eligible to receive both retirement and disability benefits.
In this podcast I will answer the question: What are the benefits and limitations to the 4% withdrawal rule for retirement planning? (The ‘rule’ states that if a retiree withdrew 4% of their initial retirement savings per year, their savings would last them for 30 years (generally through retirement).)
The blog that addresses this question can be found at: 14 4% Withdrawal Rule for Retirement Planning
In this blog, I’m going to discuss the benefits and limitation of the 4% withdrawal rule.
The rule of guideline came out in the 1990s. It states that if a retiree withdrew 4% of their initial retirement savings per year, their savings would last them for 30 years. The withdrawals would increase over time to adjust for inflation.
File and Suspend
If you are at your full retirement age (FRA), you can continue to work and suspend your benefit so your current spouse can collect a spouse’s benefit and you and earn delayed retirement credits (DRCs) which increase your Social Security benefit. The voluntary suspension is only for the months beginning after the month the request is made. A current spouse cannot claim a benefit on the worker’s record until the worker has applied.
Two months after the Supreme Court struck down the Defense of Marriage Act, the Treasury Department ruled that legally married same-sex couples will be treated as married for federal tax purposes.
The decision has a host of implications, even for couples who now live in states that don’t recognize same-sex marriage.
I spent the holiday break with my wife’s family in Caborca, Mexico. Their homes and possessions are pretty simple, but they have nice celebrations and full lives. The median annual household income in the US is about $29,000, in Mexico it is about $4,500. Costs for food, electricity, water, and clothing are very similar in both countries. As we look at spending plans and retirement planning it made me think that there is a lot of room for choices.
Early retirement can seem impossible, even retiring at 65 or 70 may not seem practial. If it is a priority, this can be a reality for diligent savers. One well-known example is the man behind MrMoneyMustache.com, who retired with his wife at age 30 after just nine years of working. They did this on two normal salaries. They are very careful with their spending and feel that they are living full lives.
Here are a few ideas for saving money.