An article discussing the complexities of late-in-life divorces (noting that divorce is increasingly common in these age groups) by centering on three mistakes that must be avoided. The article is tax and social security sensitive, discussing 401(k)’s and advising trusts and other estate planning techniques. The three mistakes they relate, by their titles, are “ignoring taxes on retirement funds”, “overvaluing alimony, undervaluing Social Security”, and “forgetting about the kids” states SmartMoney.
This MarketWatch article tackles the common subject of delaying Social Security, the benefits that arise from doing so, and the possible problems to avoid, but it does so in more depth. Also see a recent article from the WSJ digital Network on the same subject.
“The first thing that you have to realize, according to [Michael] Kitces, is that you never get a net negative for working and collecting Social Security. ‘If you work and you bring additional earned income into the household, there is more money there,’ he said. ‘You don’t get to keep all of it, Uncle Sam will take a piece, and you may impact a couple other parts of the retirement pie as well, but it’s never a net negative’” from MarketWatch (March 21, 2011) This article offers a densely packed discussion on the tax implications that arise from working into…
If yours was among the roughly 50 percent of marriages that ended in divorce, you may want to brush up on the Social Security rules involving spousal and survivor benefits. Why? Because mistakes can be quite costly. The LA Times recently offered a brief primer, highlighting the primary issues that could affect divorced people in their retirement years. The Basics. If you were married for at least 10 years to someone who paid into the Social Security system, you are entitled to a spousal benefit, even if you are divorced from that person. Spousal benefits, if claimed at your full…
The Social Security Administration recently put the kibosh on a technique some retirees were using to boost their monthly benefits. But even though that loophole is essentially closed, experts say there are still plenty of ways households can legally maximize the amount of income they receive from Social Security. — MarketWatchThe risky strategy of the Social Security “do-over,” is no longer available, under new rules issued by the Social Security Administration in December. Few people took advantage of this loop hole, but here is basically how it worked: You claim benefits at an early age, and then years later repay…
Let me also refer you to Seven Tips for Baby Boomers Turning 65 in 2011, a recent article from US News & World Report.1. Sign up for Medicare on time. There is a seven month window surrounding your 65th birthday during which you can sign up for Medicare, and this starts three months prior to the big day. For every 12 month period during which you haven’t signed up for Medicare Part B, your premiums may go up by 10%. If you are on an employer plan, you’ll have to sign up within eight months of leaving that plan to…
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