What Women Need To Know About Preparing For Retirement

As women, we have many different roles that we take on throughout the years. We are daughters, wives, housekeepers, mothers, employees, volunteers and so much more. With all of this activity, hustle and bustle, thinking about the day when we will retire always seems like it is a long way off. It can be difficult to put effort into saving for something that seems such a distant idea. However, planning and preparing for retirement is one of the most important things that we can do for ourselves.

The most important thing to remember when preparing for retirement is that your income will end, but your bills will keep coming in. There will be some decreases in spending, due to the fact that you no longer need to commute and spend money on other work related expenses, but your cost of living will likely remain the same or even increase as you will be spending more time at home. You need to be sure that you have enough funding to take care of these expenses for many years to come.

There are several different options available when it is time to begin saving for retirement, each with its own set of rules and regulations. Be sure to understand the ins and outs of the types of retirement savings plans you are investigating before making a final decision. Some of the most popular options for retirement funding include:

Social Security – In the US, Social Security payments are about 40 percent of the monthly earnings of a retiree. While this free money is a wonderful asset to your retirement budget, it is far from enough to allow those who have left the workforce to live comfortably. You can certainly budget Social Security payments into your retirement plan, but know that there is more that needs to be done.

Profit Sharing and Pension – Some employers offer profit sharing and pension plans to their employees. These are usually company allocated funds that are invested on behalf of the employee and are paid out upon your leaving the company. There are often penalties involved if you leave an employer before retirement. If your company offers one of these plans, be sure to educate yourself on the regulations and rules that govern the policy. Be sure to keep track of the amount that is in your account each year and review what your future additional needs might be.

401(k) Plans – 401(k) plans are very popular retirement savings plans that are offered through employers. When these are offered through an employer, often employee contributions to the fund are matched by the company, up to a certain percentage of weekly or monthly income. In this case, you may want to elect to have a higher amount held from your checks to get the most from your money when it is time to cash out your account. As with a profit sharing or pension plan, usually you must have a certain number of years at a company for your account to be fully vested.

Individual Retirement Accounts – If you are not able to start a retirement funding plan through your employer or the plans that are offered to you are simply not enough for you to retire comfortably when you want to, consider an individual retirement account or IRA. Certain types of retirement accounts offer tax incentives to those investing up to a certain amount of money each year. Remember that these are investment accounts, the amount they will be worth will vary depending on what you add to the account and how long you keep the money invested.

Making the crucial decisions that are necessary to ensure that your future will be safe and comfortable can be difficult. You may want to seek the help of a professional retirement investment specialist. They will be able to look at your current lifestyle and income, find out about what you would like to be able to accomplish in retirement and help you to develop a retirement savings strategy that will be affordable for you and will create a pleasant retirement environment for you later.

Even when retirement is decades away, beginning to prepare for retirement as early as possible will make things less financially stressful for you down the road. Create an affordable retirement plan as soon as possible and you can be certain that your golden years are spent enjoying yourself, rather than worrying over how the bills are being paid each month. With careful planning and investment help, if necessary, you can ensure that you have a pleasant retirement without financial stress or worry.

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The Social Security and Medicare Handbook: What You Need to Know Explained Simply

• ISBN13: 9781601381323
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description
The Social Security and Medicare Handbook includes the provisions of the Social Security Act, regulations issued under the Act, and recent case decisions (rulings). It is a readable, easy to understand resource for the extremely complex Social Security and Medicare programs and services. Here in this new, groundbreaking, and exhaustively researched book you will learn an overview of the Social Security and Medicare system, how Social Security benefits are current… More >>

The Social Security and Medicare Handbook: What You Need to Know Explained Simply

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Know the TRUTH about the Government Health Care Bill HR3200 – Key Points

Update: Yes the healthcare bill HR3962 passed. Now it’s up to us to do all we can to repeal it!! This video is based on HR3200 but it is very closely related to HR3962 with the exception that HR3962 is deemed to be worse yet. If we don’t get this bill thrown in the trash where it belongs we can expect to see much if not all of what this video shows us. THE PDF.OF THE BILL HR3200 NOTED AT THE END OF THE VIDEO IS NO LONGER VALID. HERE IS THE UPDATED LINK TO THE PDF. candicemiller.house.gov I am well aware of the typeo in this video, I apologize but It’s too late to fix it now. Healthcare is only a powerful stepping stone to their government takeover plan. Open your eyes America, they don’t care what “we the people” want or need, they simply want control. Aug. 2009 Original Bill (Video) :This is a point by point description (A guide not the actual reading of the bill!) of the Government Healthcare plan taken from the ACTUAL proposed bill HR3200candicemiller.house.gov Though not opposed to healthcare reform most Americans do not want this KIND of reform which is a dangerous UN-AMERICAN UNCONSTITUTIONAL We want reform that makes sense and that is helpful for all not a destructive death warrant for the unborn and the elderly. We want government to stay out of our personal life decisions period. This is America !!

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What Retirees Should Know About Their Social Security Benefits

If you’re considering when you should retire, you’ll need to know just when your Social Security benefits (i.e. monthly income) kicks in for you – and how much you’ll get. This article summarizes when and who gets Social Security benefits, how much, and what affects how much you get. You can get all your information at the Social Security Administration’s website: ssa.gov

During the years you were working, you contributed to Social Security. You paid a fixed fraction of your gross wages up to a limit you every year toward it. Over the years both the fraction and the limit increased.

The Social Security Administration (i.e. the government) averages your best 35 years of working income – all your working years are indexed to wage inflation over that time – to determine what your Social Security Benefit (monthly income) will be when you reach your ‘Full Retirement Age’(FRA) (aka Normal Retirement Age). And that amount is called your Primary Insurance Amount (PIA).

Your FRA:

The government is slowly increasing the FRA for people born later. The FRA for boomer it’s 66. You can look yours at the SSA website.

Starting SS benefits earlier or later than your FRA:

You have the option of beginning your Social Security (SS) benefits as early as 62. But your benefits are permanently reduced from your FRA benefit amount. At age 62 you receive about 75% of FRA benefit.

On the other hand, as an incentive to delay starting your benefits beyond your FRA, your benefits will be increased about 8% per year until you reach 70 – for a 30% increase above your FRA benefit. Benefits are prorated for beginning any time between age 62 and 70. There’s no benefit to delaying longer than 70.

Don’t wait until the day you want benfits to apply for them. Apply three or more months early. The average monthly benefit in 2009 was $1153. The maximum benefit at FRA was $2,323/mo. Your yearly SS statement will show you your benefit. Or you can estimate it using SSA’s website calculator.

When to start receiving?

If you never begin, no benefits are owed to you when you die, but the longer you wait to begin, the higher will be your monthly benefit. So when should you begin?

Roughly speaking, if you die at the statistical age (late 70s) expected, you’ll have received the same total amount from SSA no matter when you started. So your late 70′s is the breakeven age. If you expect to die earlier, it’s better to start earlier; if you live longer, you’ll receive more by starting later. Make your choice!

Taxes on Social Security Income:

Your SS benefits are tax free if you have a lower retirement income. It depends on what your modified adjusted gross income (MAGI) is. Your MAGI is your adjusted gross income plus any tax free bond interest plus 50% of your social security (annual) income.

If you’re single with a MAGI less than $25,000 or married with a MAGI less than $32,000, you’re not taxed on your SS income. At higher levels, possibly 50% of your SS income is taxed. When your MAGI reaches $34,000 (single) or $44,000 (married) as much of 85% of your SS is taxed.

Effect of working income while receiving Social Security:

Those who are working and collecting their Social Security benefits before reaching their FRA may have some of their SS benefits reduced if their working income is above a threshold level – roughly about $15,000 in 2009. They get it back, though, at FRA.

After reaching your FRA, working income doesn’t affect SS benefits – other than making them vulnerable to taxation.

Who else can get Social Security benefits based on your benefits?

Your spouse, ex-spouse and widow can choose to receive benefits based on your benefits. But realize your benefit is not reduced because of this. Also each of these persons will get either the benefit based on you or his (or her) own working benefit – whichever is larger.

Your spouse is entitled to 50% of your FRA benefit while you’re alive. But this entitlement benefit is reduced accordingly if she begins receiving it before her FRA. The same is true for an ex-spouse, but only if you were married to her or him for 10 years or more.

Your spouse is entitled to 100% of your Social Security benefit when you die.

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