by: Ken Morris
When people plan and invest for retirement, the decision of when to begin taking Social Security benefits eventually comes up.
Social Security is an important source of retirement income for many individuals and, therefore, the decision of when to take these benefits can make a big impact on retirement income.
A retired worker who is fully insured can elect to start receiving benefits at any time between age 62 and 65 (or even later).
Benefits can start as early as 62, but if you so elect they are permanently reduced by 20%.
Here is where the question arises.
Is it better to start taking checks at a reduced amount or wait until Normal Retirement Age and receive full benefits?
Before addressing the inherent problems with this empirical question, let's look at some of the factors and considerations.
The early bird who decides to get the worm first gets three years' worth of checks -36 payments- that the sleeping bird will never see.
Thus, it will take some time for the total benefits of the person who waits until age 65 to catch up to those of the early collector.
Further, for those born after 1937, Normal Retirement Age is being extended.
Normal Retirement Age is currently age 65, yet due to the Social Security amendments, full benefit age will be raised gradually in two stages until eventually reaching 67 in 2027.
Thus, the early bird will receive even more checks than the retiree who bides his time for full benefits.
If the early bird also did not need the benefit income and chose to invest instead of spending the checks, the investment income would partially offset the reduced yearly benefit as well as extend the catch-up period for the age 65 collector.
Sounds like most people would opt to be an early bird.
There are other factors to consider (as always).
Working an extra three years will probably increase the patient retiree's benefits.
This is so because more earnings will be credited toward the Social Security account.
Chances are that old low-earning years will be replaced in the benefit equation with a current high credit year.
These higher benefits will then shrink the catch-up period.
Delaying retirement benefits beyond 65 until age 70 will also increase the size of the benefit due to a credit provided by the Social Security Administration for such patience.
Further, for those born after 1937 who choose to begin receiving benefits at age 62, the reduction-in-benefits penalty is further stiffened from 20% to an eventual 30% in 2022.
The hare will feel the tortoise closing even quicker.
Taxation of benefits may also enter the picture.
Poor timing of Social Security and other income may result in a good portion of early benefits being subject to inclusion in income and painfully taxed.
On the other hand, a lower age 62 benefit may mean that the taxpayer will not meet the "combined income" threshold for benefits inclusion.
Empirical studies have been done which generally arrive at the same conclusion.
Early bird collectors are ahead of the game for about 12 to 15 years and then are left behind the higher benefit collector.
Thus, where a person is in good health and foresees another 10 + years of retirement life, it is probably better to defer taking benefits until normal retirement age.
Of course, a universal rule for when to take benefits is impractical.
Depending upon an individual's circumstances, it might make more sense to begin taking benefits as soon as possible regardless of the net economic benefit in the future.
This brief article is no substitute for a careful consideration of your unique personal situation.
Before making any significant retirement planning or tax strategy, consult your financial planner, attorney or tax advisor, as appropriate.
About The Author
Ken Morris, a fee based Investment Advisor Representative with Raymond James Financial Services, Inc., helps 401k participants get the most out of their corporate plans.
lindsay.brickner@raymondjames.com
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How Checking Works
How Checking Works
by: Jakob Jelling
Help yourself avoid overdraft fees by understanding checking.
While there is a lot of attention put on people who get into financial trouble based on the amount of money that they charge to their credit cards, that is not the only problem that people commonly have.
For instance, checking accounts can cause trouble as well, especially if you do not know how checking works.
Therefore, before you start using your checking account frequently, you should find out exactly how your checking account works.
Your checking account is just another bank account, though it is usually not the same or attached to your savings account.
Many people find it worthwhile to have both a savings account and a checking account.
The reason for this is that you get interest on your savings in the savings account - while in a checking account, you have more freedom with when and how you withdraw...
Checks > How Checking Works
A Closer Look at Pay Day Loans vs. Bank Overdraft Fees
A Closer Look at Pay Day Loans vs. Bank Overdraft Fees
by: Alan Luong
According to the New York Times ?many national banks are encouraging clients with low balances to overdraw their checking accounts, allowing the banks to avoid credit laws and collect billions of dollars in new fees.? You might now realize that pay day loans are actually much more economical than overdraft fees from your bank.
The banks say that the overdraft programs, which cover bounced checks and allow people to overdraw their accounts, are a service to their clients. But these overdraft programs are certainly a bad deal for consumers.
Unlike typical lines of credit, which charge annual interest of up to 20 percent, the new overdraft plans charge flat fees for every processed overdraft, translating into an annual interest rate of over 1,000 percent. Unlike lines of revolving credit, which allow customers to repay the loans at their convenience, these plans require...
A Closer Look at Pay Day Loans vs. Bank Overdraft Fees
Checks > A Closer Look at Pay Day Loans vs. Bank Overdraft Fees
The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
by: Kenneth Echie
Since I have been using AdSense and getting AdSense Money checks, I have come to learn some useful tips that would help you make money with AdSense. These tips, along with the systems in my e-book, helped me increase my AdSense income by 560%. If you are starting, check out these tips before you start using AdSense. If you?re already using AdSense, incorporate these tips into your AdSense program and see your income soar.
This is part 3 of 3 of these tips. You can get the other parts at my website: http://www.extra-income-ideas.com/articles.html or in my AdSense Money E-Book: http://www.bye925.com/adm.
Making Money with AdSense -- Tip #7:
Think about segmenting your sites: making some pages for high search engine traffic,...
The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
Checks > The Google Adsense Money Checks Or Extra Income Checks-----Part 3 Of 3
Bad Check Writers Get Monkey-Wrenched
Bad Check Writers Get Monkey-Wrenched
by: Jesse Fisher
Bad check writers are opportunists that stay on the fringes of crime. They know how to manipulate the system to their advantage.
They know and take advantage of the overworked and paper-heavy judicial agencies responsible for check collections. They lie, push, delay and make numerous excuses in an attempt to avoid or delay paying off their bad checks.
County agencies assigned to collect bad checks are doing the best they can. However, because of the sharp increase in numbers of citizens choosing this form of crime, the agencies are becoming over worked. In many counties the number of checks being turned in for collections is increasing while the percentage of collections is dropping.
Many check writers are using the system as a credit free loan agency by negotiating time and monthly payments; causing further expenses to the county.
The National Retail Merchants Association...
Bad Check Writers Get Monkey-Wrenched
Checks > Bad Check Writers Get Monkey-Wrenched
Advanced Link Checks
Advanced Link Checks
by: James Mahony
You should be able to find several indispensable facts about SEO in the following paragraphs. If there's at least one fact you didn't know before, imagine the difference it might make.
View the source of each and every page: is there JavaScript and CSS on the page? Remember that spiders may not index pages that have more than 10k or so of JavaScript or CSS embedded in them. Spiders don?t enjoy getting tangled up in JavaScript. So as a general rule you should avoid putting out prompts and alerts using JavaScript every time that a page loads. Because of this rule, it is also wise to avoid link partners who do so on the pages that they link to you from. If anything looks fishy, it probably is.
CSS won?t give you many problems. If you are going to use CSS, it is best to link to it from another source. Create a separate CSS page and use the tag to work it into the head of your HTML. This method will keep...
Advanced Link Checks
Checks > Advanced Link Checks
How to Conduct Personal Background Checks
How to Conduct Personal Background Checks
by: Jasmine Ong
You want to conduct a personal background check on a colleague, maybe even a prospective mate, but you?re not quite sure how to go about it?
Before you spend a fortune on private investigators, you might want to try a little gumshoeing of your own.
The net is teeming with search engines and public records just waiting to be explored. You might have to do a little digging (or perhaps a lot), but there?s a great chance that the information you?re after is just floating around cyberspace at no cost.
Be careful which sites you choose to rely on for help. Some of them will charge you fees for information you can get elsewhere for free.
Some will even charge you for wrong or useless information. If you?ve got the time and the patience, it?s often best to do the searching personally.
That way you can easily ignore irrelevant data and hone in on pertinent ones.
Also...
How to Conduct Personal Background Checks
Checks > How to Conduct Personal Background Checks
That Fat Tricky Hobbit!
That Fat Tricky Hobbit!
by: Nicolas Fradet
Just like Gollum can?t live without the ring, some poker players can?t sit down at a poker table without trying to be tricky. If Sam can tell that Gollum is not being fully truthful in his actions, in this mighty quest of the ring, then Gollum?s master plan can fail. If your opponents can tell you are not being fully truthful in your actions, then your master plan can fail.
While deceiving your opponents is surely...
Does The Early Bird Get The Worm? gold ring
Checks > That Fat Tricky Hobbit!
Audi TT: Offering Driving Pleasure
Audi TT: Offering Driving Pleasure
by: Jennifer Dylan
Introduced in 1995, the Audi TT was still a concept car that time. After three years, the Audi TT came rolling off the manufacturing and assembly lines to the streets. This new vehicle then held the Audi A4?s shorter version of its platform. This vehicle was manufactured as a front drive coupe and as a roadster. It also was sold and offered with a Quattro all wheel drive.
The Audi TT has a unique style...
Does The Early Bird Get The Worm?
Checks > Audi TT: Offering Driving Pleasure
Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
by: Carrie Reeder
A cash-out mortgage allows you to refinance your mortgage and pull out part of your equity. Before deciding how much to cash to use, be aware of the impact of PMI and equity amounts. However, you may find the benefits of refinancing outweigh the costs.
Cash-Out Mortgage Basics
With a cash-out mortgage, you can refinance for lower rates or to just...
Does The Early Bird Get The Worm? refinance Checks Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
Checks > Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out
How to Choose an Internet Service Provider
How to Choose an Internet Service Provider
by: Ronald Vyhmeister
An ISP - Internet Service Provider - is a company that provides a gateway to the Internet for individuals and companies. In its simplest form, connecting to the Internet requires a telephone line to dial up an ISP using a computer and modem. The ISP then provides the route onto the Internet.
Choosing an Internet Service Provider requires a simple first step. Ask yourself: "What do I want to...
Does The Early Bird Get The Worm? Checks
Checks > How to Choose an Internet Service Provider
Does The Early Bird Get The Worm? vacuum cleaner Checks
Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money
Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money
by: Carrie Reeder
Saving money with lower rates isn?t the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.
Better Rates
A 15 year mortgage has a better rate than a 30 year mortgage offered the same day ? usually by a quarter of...
Does The Early Bird Get The Worm? Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money
Checks > Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money