Social Security, to begin or not to begin that is the question…
Social Security, to begin or not to begin; that is the question. When to collect is a frequent question asked by those approaching retirement age. While there is no set answer that applies to all, the Social Security Administration (SSA) website
The Social Security Administration website provides an excellent online tool that estimates how much you can expect to receive in Social Security retirement benefits. You already have access to an annual benefits statement from the SSA, either online or by mail for those age 60 or over who have not yet established an online SSA account. What makes the “Retirement Estimator” useful is that it allows you to tweak your future earnings to derive a more accurate estimate of your benefits.o receive an estimate, you must enter some information including your name, Social Security number, mother’s maiden name, and your earnings for last year. You’ll then receive estimates of benefits at age 62, full retirement age, and age 70. But the best feature is the ability to create additional scenarios, which allow you to see how much more or less you will receive in benefits based on additional factors that you enter. For example, you can compare various scenarios based on changes in your future earnings if you expect to earn more or less in some of the years before you retire. Also, if you expect to stop work before collecting benefits, you can factor that in. The estimated benefit is adjusted for inflation, so the nearer you are to retirement, the more accurate the estimate. Here’s the internet address for the calculator:
The Retirement Estimator cannot be used in some situations, but there are other estimators on the Social Security site that will provide you with a ballpark estimate.
Smart Money Tips
- Continue your education, whatever your age. If you’re still a member of the working cohort, one of the best investments you can make is to obtain more education and training in your chosen line of work. Maintaining top-notch skills is doubly important amidst what is likely to be the onslaught of artificial intelligence and disruptive innovation in many professions. Those who have up-to-date skills in their line of work are most likely to thrive in the new work environment. Your career is the key to your future financial security. If you think a career change makes sense, enroll in programs that will get you up to speed in your next career. If you are retired, check out the many continuing education programs available in your community or elsewhere. At last, you can learn about subjects that you had always wanted to better understand.
- Don’t let too much money languish in low-yield accounts. Whether on purpose or through neglect, many people are letting too much money sit in bank accounts or money market accounts that are paying low interest. That may have been okay in the distant past, but not now. While everyone needs to keep some money safe to pay looming bills or meet unexpected expenses, invest any excess beyond your emergency fund. Otherwise, this money will continue to lose purchasing power. Most investors aren’t aware that money market mutual funds in many brokerage or IRA accounts are currently paying 4% interest or more, and don’t forget US Treasuries!
Food for Thought
If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.
-George Soros
Money Can Be Funny
Grandparents and grandchildren are natural allies against a common enemy.
–Arnold Toynbee
Word of the Week
maritorious –adjective (ma-ri-TOR-ee-uhs) – Excessively fond of one’s husband.
Origin: From Latin maritus (married, husband) – the word to describe a husband who is excessively fond of a wife is the more commonly used uxorious.
My wife says all men are inherently flawed which, if true, means that the odds of any husband having a maritorious wife are long indeed.