Cory Burnell

One of the most common questions people ask about Social Security is when they should start taking benefits. This is the $64,000 question. Making the right decision for you can have a meaningful impact on your financial income in retirement. Before considering how personal circumstances and objectives may play into your decision, it may be helpful to preface that discussion with an illustration of how benefits may differ based upon the age at which you commence taking Social Security. As the accompanying chart reflects, the amount you receive will be based upon the age at which you begin taking benefits. Monthly Benefit Amounts   Based on the Age that Benefits Begin¹ Age Benefit Amount 62   63   64   65   66 and 4 months   67   68   69   70 $953   $1,018   $1,097   $1,184   $1,300   $1,369 $1,473   $1,577   $1,681 *This example assumes a benefit amount of $1,300 at the full retirement age ...

Most understand that waiting to claim Social Security benefits can result in higher monthly payments. However, many don’t know that there are other ways to maximize their benefits, some of which depend on their marital status. Understanding the strategies for maximizing your Social Security retirement income benefits should be prefaced with a review of the three basic forms of retirement benefits: The Worker Benefit : This is the benefit you receive based on your own personal earnings history, and for which you become eligible after 40 quarters of work. The Spousal Benefit : This is the benefit paid to your spouse. For non-working spouses, this is 50% of the working spouse’s benefit. For working spouses, it is the greater of the benefit earned from his or her earnings or 50% of the worker’s benefit. The Survivor Benefit : This is the benefit paid to the surviving spouse, which is paid at a rate equal to the greater of his or her own current benefit, or the deceased spouse’s curr...

Chris Rock once remarked, “You don’t pay taxes, they take taxes.” That applies not only to income, but also to capital gains. Capital gains result when an individual sells an investment for an amount greater than his or her purchase price. Capital gains are categorized as short-term (a gain realized on an asset held one year or less) or as long-term (a gain realized on an asset held longer than one year). Long-Term vs. Short-Term Gains Short-term capital gains are taxed at ordinary income tax rates, while long-term gains are taxed at a lower rate, based on an individual’s marginal income tax bracket. If you are in the… your long-term capital gains rate will be… 10%-15% tax bracket 0% 25%-35% tax bracket 15% 39.6% tax bracket 20% It should also be noted that taxpayers whose adjusted gross income is in excess of $200,000 (single filers) or $250,000 (joint filers) may be subject to an additional 3.8% tax as a net investment income tax. Also, keep in mind that the long-ter...

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002. 1   As the Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. Read on to discover some of the benefits. 1. AARP.org, February/March 2015 Mental Benefits Working during retirement helps maintain mental agility as you learn new skills. Staying engaged in work helps build "mental muscle," which can lessen the risk of developing dementia and Alzheimers 2   and ward off the signs of aging. 2. Forbes, 2017 Physical Benefits Staying active during retirement years is crucial for continued health. Whether you choose to work full time, or volunteer a few days a week, engaging in some form of work will keep your body moving, and...

Social Security is a critical component of the retirement financial strategy for many Americans, so before you begin taking it, you should consider three important questions. The answers may affect whether you make the most of this retirement income source. When to Start?   You have the choice of 1) starting benefits at age 62, 2) claiming them at your full retirement age, or 3) delaying payments until age 70. If you claim early, you can expect to receive a monthly benefit that will be lower than what you would have earned at full retirement. If you wait until age 70, you can expect to receive an even higher monthly benefit than you would have received if you had begun taking payments at your full retirement age. The decision of when to begin taking benefits may hinge on whether you need the income now or can wait, and whether you think your lifespan will be shorter or longer than the average American. Should I Continue to Work?   Work provides income, personal satisf...

American households with credit card balances carry an average debt of $16,425. The wise use of credit is a critical skill in today’s world. Used unwisely, credit can rapidly turn from a useful tool to a crippling burden. There are a number of warning signs that you may be approaching credit problems: Have you used one credit card to pay off another? Have you used credit card advances to pay bills? Do you regularly use a charge card because you are short on cash? Do you charge items you might not buy if you were paying cash? Do you need to use your credit cards to buy groceries? Are you reluctant to open monthly statements from creditors? Do you regularly charge more each month than you pay off? Do you write checks today on funds to be deposited tomorrow? Do you apply for new credit cards so you can increase borrowing? Are you receiving late and over-limit credit card charges? It is important to recognize the warning signs of potential credit problems. The quicker corr...

Forty-four percent of American women are the primary breadwinner in their house. 1  Yet only 10% of women feel very confident in their ability to fully retire with a comfortable lifestyle. 2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn't seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. 3 So what keeps them from taking charge of their long-term financial picture? One reason may be a lack of confidence. In one recent study, less than half of the more than 2,000 women surveyed said they felt satisfied with their knowledge of finances. 4 Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result. Insider language Since Wall Street traditionally has been a male-dominated...