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2013 COLA and Retirement Application Submission Clarification

Posted on Friday, 28th September 2012 by

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Recently, the Congressional Budget Office has suggested that a 1.3 percent cost-of-living adjustment is pending for Dec. 1 that includes military, civilian, retired pay, and Social Security recipients. There was talk of an increase of as high as 1.9%. We will see the increase in our January annuity check.

Today, 1.3% doesn’t look that bad considering that we can’t get that on our CDs these days because government is funding their out-of-control spending and borrowing on the backs of retirees and those who have saved throughout their lives to ensure a comfortable retirement. My article titled Retiree Reflections – The Way it Was Then and Why describes how the lack of sound money management principals and spending over 4 billion dollars a day that we don’t have is negatively impacting our economy and our wallets.

The Federal Reserve continues to print money which devalues our currency and there has been a major shift from China and other foreign countries that use to buy our debt to the Federal Reserve. The Federal Reserve doesn’t have money to buy anything; they simply print the money to buy the Treasury Bonds Uncle Sam auctions off regularly. Wouldn’t it be nice if we could do the same thing and just print money when we need it instead of having to scrimp and save to put food on the table and savings in the bank?

The impact on retirees is that savings, 401Ks, and cash will buy less and less with the potential for higher inflation down the road as the printed money makes its way from the bank values into the economy in general.  Essentially, the government is redistributing retiree’s wealth, actually anyone’s wealth from their savings, to the Federal Reserve so they can borrow money at artificially low interest rates! If this continues we could end up like Greece and the many other countries that have lived beyond their means for decades.

Retirement application Clarification

One of our readers asked if he needed to file two applications for retirement because he had both CSRS and FERS time.  You only need to file one retirement application for your most current retirement system. That would more than likely be a FERS application. The CSRS time will be computer as a CSRS component, but the FERS retirement eligibility rules will apply if you are currently a FERS employee.

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

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How to Receive Social Security Benefit Statements

Posted on Friday, 21st September 2012 by

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Social Security resumed mailing annual statements to all who are 60 or older and I received mine several months ago.  They also started sending a statement to workers when they first turn 25 to give them an idea of what their retirement benefits will be down the road.  For all of those in between you can now sign up online to view your personal account including the following:

  • Estimates of the retirement and disability benefits you may receive;
  • Estimates of benefits your family may get when you receive Social Security or die;
  • A list of your lifetime earnings according to Social Security’s records;
  • The estimated Social Security and Medicare taxes you’ve paid;
  • Information about qualifying and signing up for Medicare;
  • Things to consider for those age 55 and older who are thinking of retiring;
  • General information about Social Security for everyone;
  • The opportunity to apply online for retirement and disability benefits; and
  • A printable version of your Social Security Statement.

Sign up at www.ssa.gov/mystatement to create your online account. You must have a valid email address and social security number to proceed and you will be prompted to create a unique user name and password for your new account.  You can also enroll at your local Social Security office if you experience problems setting your account up from you home computer.  Extra security is available and you can elect to have a special text message sent to your cell phone with a unique access code each time you log on.

The nice thing about this program is that you can access the account any time to check on your status and to review and print out updated reports.  Visit http://federalretirement.net/social_security.htm for updated information on CSRS and FERS Social Security benefit issues.

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Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

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What Will You Do in Retirement?

Posted on Saturday, 15th September 2012 by

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Updated 12/15/2024

Most fantasize about retirement while working. I recall telling my wife when I was in my mid 20s that I wanted to stay with federal service because I could retire at age 55, which I did by the way. However, we live in the real world and retirement is a HUGE decision that changes your routine and life forever and hopefully you will move on to bigger and better things.

There are many issues to consider when you retire and I’ve discussed how to be financially and emotionally prepared when you leave and other key considerations in my column and throughout my web site at www.federalretirement.net. That being said, there is one fundamental question that you must contemplate first, discuss with your significant others, and come to terms with long before you make the leap.

What Will You Do In Retirement?

You must honestly answer this question from a practical and realistic point of view or your retirement could end up your nightmare. Yes, we all fantasize about travel, free time, and doing what you want when you want to but think about it. What will your new routine become? Right now you have a set routine with work and family that you are very accustomed to. You may think you don’t like it but it’s an established norm for you and when that’s behind you there will be a void to fill.

When I retired in 2005 I knew that I would simply continue to work in my home business that I established 20 years before.  Even with my home business, retirement was still a major adjustment. Prior to retirement I was out of the home 5 days a week at work where I socialized with fellow workers and found satisfaction with my work and routine there.

When I suggest being realistic about your expectations you have to consider health issues, natural limitations that we all suffer with age, financial resources, interests, and the entire gambit of concerns from all aspects of one’s life. These issues have to be resolved with your spouse as well because their routine and expectations will also be impacted.  Don’t assume anything.

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

One area that has caught me by surprise is the limitations that we all have as we age. We tend to think we will be physically able to do what we’ve done in the past with ease. Not so. I enjoyed tackling about any and every home improvement that you can imagine.  We tend to plan our life naturally around our past experiences however the paradigm changes as we age.  I can no longer do the heavy physical work due to various medical conditions that limit my ability to perform those functions.

The new Phased Retirement program will be helpful for those you want to test the water before retiring full time. I believe honesty is the key to a true evaluation of your personal situation and determining what you will do in retirement.  Address the following areas honestly and frankly with the significant others in your life before leaving.

Take all of the time that is necessary to evaluate your personal situation before sending in your retirement application. Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, EMPLOYMENT OPTIONS, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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Phased Retirements Introduction & Movies Then and Now

Posted on Saturday, 8th September 2012 by

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Had this program been available when I was planning my retirement I might have considered it to test the waters before leaving altogether? The new Phased Retirement program is authorized under section 100115 of Public Law 112-141, the “Moving Ahead for Progress in the 21st Century Act,” or “MAP-21,” approved on July 6, 2012. If you select a phased retirement your future annuity will drop a little since you would be drawing a reduced pension while still working part time under this program.

Phased Retirement encourages federal employees with experience to continue working part time to provide continuity of operations and to share their knowledge with those who would take their place in the work force.  The main purpose of Phased Retirements is to mentor and train employees who will be filling the positions of more experienced employees who are preparing for full retirement. It’s intended to encourage experienced employees to remain, in at least a part-time capacity, until less experienced employees are fully equipped to fulfill the same duties and responsibilities as those employees who wish to retire.

This program is voluntary and requires the mutual consent of the agency.  Essentially older employees can work a part time schedule (if approved by your agency) to ease them into retirement.  This can be from a short period to years and you have the option of returning to full time service if desired.

Employees who elect phased retirement receive a reduced annuity in proportion to the time worked. One of the good things about this program is that you would still receive annual pay and step increases until you took full retirement.

Phased retirement provides agencies an excellent opportunity to train employees to backfill critical positions. It would also allow employees entering the program a way to judge what to expect when they retire full time. I like the thought of easing into full retirement and it could be good for all parties.

Visit http://federalretirement.net/phased_retirement.htm to find out more about this program.

Movies Then and Now

The last time my brother and I were at a movie theater together was probably in the early 1960s at the Rolland Theater in Wilkinsburg where we grew up. What a change since then.  Back in 1962, on a rare occasion, we would go to a Saturday matinee to see several cartoons and the feature of the day.  It costs us 50 cents to get in and a small bag of popcorn and a drink costs 10 cents each; for a grand total of 70 cents we had a great time.  I would collect pop bottles for weeks before the show and cash them in at the local grocery store for 2 cents each for 12 ounce bottle and 5 cents for a quart bottle for spending money in my early teens.

I can still remember the auditorium with balcony, not so comfortable seats, and the popcorn machine; a large glass domed affair, where you put your dime in and it filled up a bag that held maybe two cups of popcorn. If you wanted butter you just put it on yourself using a dispenser they had next to the machine.

I think the last time my wife and I went to see a movie was about 6 years ago shortly after I retired. It isn’t that we are shut-ins or antisocial we just enjoy renting movies and watching them from the comfort of our own home which you couldn’t do when we were growing up.

My wife and daughter were going to see the American Idol concert recently and I didn’t have anything planned. My brother wanted to see the new Bat Man movie and called to ask me to come along.  The movie admission was $5.25 for seniors, not bad considering how much everything else costs these days.  However, when we went to the concession stand the prices were astronomical. A tiny bag of popcorn costs $4.50 and $4.50 for a small soft drink!

When we went into the theater the sound system was on steroids blaring out preview after preview and I had to turn my hearing aids off. Even with them off the sound was way too loud for comfort.  For some reason they keep this theater’s temperature so low that we were both shivering the entire time. I thought maybe someone was going to come around and offer to rent us blankets. That may be a good side business for some enterprising entrepreneur.  The movie’s special effects were realistic but contrived and it seems that today it is easier to use computer animations than actually staging real events. Whatever happened to great movies like Cleopatra and so many others that were made on a grand scale back in the 1960s?

I fondly remember the shows at the Rolland growing up. It was always a treat to go. I won’t say the same for my recent experience.  It may be awhile before they see me at a theater in town again.

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

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You Can’t Hide In Fixed Income

Posted on Thursday, 6th September 2012 by

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Investing timidly may shield you against risk … but not against inflation.

Presented by Paul H. Risser

When is being risk-averse too risky for the sake of your retirement? After you conclude your career or sell your company, you have a right to be financially cautious. At the same time, you can risk being a little too cautious – some retirees invest so timidly that their portfolios barely yield any return.

For years, financial institutions pitched CDs, money market funds and interest checking accounts as risk-devoid places to put your dollars. That sounded good when interest rates were tangible. As the benchmark interest rate is now negligible, these conservative options offer minimal potential to grow your money.

America saw 3.0% inflation in 2011; the annualized inflation rate was down to 2.7% in March. Today, the yield on many CDs, money market funds and interest checking accounts can’t even keep up with that. Moreover, the Consumer Price Index doesn’t tell the whole story of inflation pressures – retail gasoline prices rose 9.9% during 2011, for example.1,2

With the federal funds rate at 0%-0.25%, a short-term CD might earn 0.5% interest today. On average, those who put money in long-term CDs at the end of 2007 (the start of the Great Recession) saw the income off those CDs dwindle by two-thirds by the end of 2011.3

Retirees shouldn’t give up on growth investing. In the 1990s and 2000s, the common philosophy was to invest for growth in your thirties and forties and then focus on wealth preservation as you neared retirement. (Of course, another common belief back then was that you could pencil in stock market gains of 10% per year.)

After the stock market malaise of the 2000s, attitudes changed – out of necessity. Many people in their fifties, sixties and seventies still need to accumulate wealth for retirement even as they need to withdraw retirement savings.

Because of that reality, many retirees can’t refrain from growth investing. They need their portfolios to yield at least 3% and preferably much more. If their portfolios bring home an inadequate yield, they risk losing purchasing power as consumer prices increase at a faster rate than their incomes.

Do you really want to live on yesterday’s money? Could you live today on the income you earned in 2004 or 1996? You wouldn’t dare try, right? Well, this is the essentially the dilemma many retirees find themselves in: they realize that a) their CDs and money market accounts are yielding almost nothing, b) they are withdrawing more than they are earning, c) their retirement fund is shrinking, d) they must live on less.

In recent U.S. history, inflation has averaged 2-4%. What if that holds true for the next 20 years?4

For the sake of argument, let’s say that consumer prices rise 4% annually for the next 20 years. That doesn’t sound so bad – you can probably live with that. Or can you?

At 4% inflation for 20 years, today’s dollar will be worth 44 cents in 2032. Today’s $1,000 king or queen bed will cost about $2,200 in 2032. Today’s $23,000 sedan will run more than $50,000.4

Beyond prices for durable goods, think of the cost of health care. Think of the income taxes you pay. When you add those factors into the mix, growth investing looks absolutely essential. There is certainly a role for fixed income investments in a diversified portfolio – you just don’t want to tilt your portfolio wholly away from risk.

Accepting some risk may lead to greater reward. As many equities can potentially achieve greater returns than fixed income investments, they may prove less vulnerable to inflation. This is especially worth remembering given the history of the CPI and how jumps in the inflation rate come without much warning.

From 1900-1970, inflation averaged about 2.5% in America. Starting in 1970, the annualized inflation rate began spiking toward 6% and by 1979 it was at 13.3%; it didn’t moderate until 1982, when it fell to 3.8%. U.S. consumer prices rose by an average of 7.4% annually in the 1970s and 5.1% annually in the 1980s compared to 2.2% in the 1950s and 2.5% in the 1960s.4,5

All this should tell you one thing: you can’t hide in fixed income. Inflation has a powerful cumulative affect no matter how conservatively or aggressively you invest – so you might as well strive to keep pace with it or outpace it altogether.

Paul H. Risser is an Investment Advisor Representative with and securities and investment advisory services offered through Transamerica Financial Advisors, Inc. (TFA) Member FINRA, SIPC, and Registered Investment Advisor.  Non-securities products and services are not offered through TFA.  Neither TFA nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

LD43513-04/12

Citations.

1 – money.cnn.com/2012/01/19/news/economy/inflation_cpi/index.htm [1/19/12]

2 – www.bls.gov/news.release/pdf/cpi.pdf [4/13/12]

3 – www.chicagotribune.com/business/sns-201203141400–tms–retiresmctnrs-a20120314mar14,0,1100086.story [3/14/12]

4 – www.axa-equitable.com/retirement/inflation-and-long-term-investing.html [2011]

5 – bls.gov/mlr/1990/08/art3full.pdf [8/90]

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

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This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS

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Avoiding the TSP 10% Penalty and How to Collect a Deferred Annuity

Posted on Saturday, 25th August 2012 by

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If you are considering a TSP withdrawal be aware of the potential for a 10% penalty.

You can always withdraw funds from the TSP after you leave federal service, however to avoid the 10% tax penalty, you must meet one of these exceptions:

 

Additional 10% Penalty Tax

If you receive a TSP distribution before you reach age 59½, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10% of any taxable portion of the distribution not transferred or rolled over. The additional 10% tax generally does not apply to payments that are:

  • Paid after you separate from service during or after the year you reach age 55;
  • Annuity payments;
  • Automatic enrollment refunds;
  • Made as a result of total and permanent disability;
  • Made because of death;
  • Made from a beneficiary participant account;
  • Made in a year you have deductible medical expenses that exceed 7.5% of your adjusted gross income;
  • Ordered by a domestic relations court; or
  • Paid as substantially equal payments over your life expectancy.

Collecting a Deferred Annuity

Many leave federal service for the private sector and often forget to apply for their deferred annuity until long after their eligibility date. If you worked for the civil service or postal service for at least five years before leaving, and didn’t withdraw your funds, you can either collect a deferred FERS annuity as early as age 60 with 20 years’ service or age 62 with 5 years of service or accept a lump sum payment. The annuity is computed as a regular FERS annuity, see: http://www.federalretirement.net/fers_annuity.htm to estimate your monthly payment.

CSRS employees that left Federal service before they met the age and service requirements for an immediate retirement benefit may be eligible for deferred retirement benefits. To be eligible, you must have at least 5 years of creditable civilian service and be age 62.

I receive many email messages from former employees in their mid to late 60s that forgot to apply. There is no benefit to wait beyond your eligibility date like there is with Social Security. A deferred annuity does not increase if you defer taking it beyond your eligibility date.

The good news is that all benefits are retro-active to your eligibility date. If you neglected to apply at age 62 for CSRS or as early as age 60 for FERS employees that had at least 20 years of service you will receive a lump sum payment for the time between the commencing date and the date you apply. For example, if you apply at age 65 you would receive a lump sum payment for 3 yrs.

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Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

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What You Need to Know About Your Last Day of Work, Avoiding Processing Delays

Posted on Saturday, 18th August 2012 by

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Did you know that you can retire on any day you choose?  There are many articles online to help you select the best day to retire but when selecting that perfect date, don’t forget that retirements are always effective at the end of a scheduled day. For example, Janet’s normal work schedule is Monday-Friday from 8:00 to 5:00. She decides to retire on Friday, August 31st. Her retirement is effective on Friday, August 31st at 5:00PM.

In addition, most agencies require the employee to be in a duty status on their final scheduled work day. The employee cannot be in a leave status for the entire day on their last day. In the example above, Janet could not take a full day of annual leave on Friday, August 31st and still retire on that Friday because she must be in a duty status on her final day if it is her normal work day.

What happens when an employee retires on a non-scheduled work day, such as Saturday September 1st or September 3rd, which is a Federal holiday?  Since the employee is not on leave, the employee’s retirement is effective at the end of the day on Saturday or at the end of the day on the holiday.  He or she would be paid for the holiday.

There is one notable exception: An employee retiring on a disability retirement may be in a leave status on the last day because he or is unable to work.  This exception cannot be used for anyone eligible for a voluntary retirement. It only applies to disability retirement applications. Linda Sherman, our Benefits and HR Forum Host, provided this update.

References: Guide to Processing Personnel Actions, Public Law 78-525 and Comptroller General Decisions (B-164371, B-190374, B-223876)

Retirement Processing Delays Improving

OPM processes over 100,000 new claims each year and reported recently that their retirement processing backlog is shrinking. Their claims backlog has dropped 27 percent to 44,679 . Today OPM is averaging 156 days to process a retirement claim. Five months is still unacceptable, it took only three months to process my claim when I retired in 2005.  OPM’s goal is to clear this backlog over the next 18 months and reduce the processing time to 2 months for the majority of new retirees.

To prevent this from happening to you read my Retirement Precautions article. This article lists key areas that you need to pay attention to before submitting your retirement application.

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Request a Retirement Benefits Summary & Analysis from a local adviser. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

Learn more about your benefits, employment, and financial planning issues on our site and visit our Blog frequently at  https://fedretire.net to read all forum articles.

Visit our other informative sites

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The information provided may not cover all aspect of unique or special circumstances, federal regulations, and financial information is subject to change. To ensure the accuracy of this information, contact your benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice. Our articles and replies are time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, RETIREMENT CONCERNS

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THE RETIREMENT REALITY CHECK

Posted on Thursday, 9th August 2012 by

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Little things to keep in mind for life after work.

Presented by Paul H. Risser

Decades ago, there was a popular book entitled What They Don’t Teach You at Harvard Business School. Perhaps someday, another book will appear to discuss certain aspects of the retirement experience that go unrecognized – the “fine print”, if you will. Here are some little things that can be frequently overlooked.

How will you save in retirement? More and more baby boomers are retiring with the hope that they can become centenarians. That may prove true thanks to healthcare advances and generally healthier lifestyles.

We all save for retirement; with our increasing longevity, we will also need to save in retirement for the (presumed) decades ahead. That means more than budgeting; it means investing with growth and tax efficiency in mind year after year.

Could your cash flow be more important than your savings? While the #1 retirement fear is someday running out of money, your income stream may actually prove more important than your retirement nest egg. How great will the income stream be from your accumulated wealth?

There’s a longstanding belief that retirees should withdraw about 4% of their savings annually. This “4% rule” became popular back in the 1990s, thanks to an influential article written by a financial advisor named Bill Bengen in the Journal of Financial Planning. While the “4% rule” has its followers, the respected economist William Sharpe (one of the minds behind Modern Portfolio Theory) dismissed it as simplistic and an open door to retirement income shortfalls in a widely cited 2009 essay in the Journal of Investment Management.1,2

Volatility is pronounced in today’s financial markets, and the relative calm we knew prior to the last recession may take years to return. Because of this volatility, it is hard to imagine sticking to a hard-and-fast withdrawal rate in retirement – your annual withdrawal percentage may need to vary due to life and market factors.

What will you begin doing in retirement? In the classic retirement dream, every day feels like a Saturday. Your reward for decades of work is 24/7 freedom. But might all that freedom leave you bored?

Impossible, you say? It happens. Some people retire with only a vague idea of “what’s next”. After a few months or years, they find themselves in the doldrums. Shouldn’t they be doing something with all that time on their hands?

A goal-oriented retirement has its virtues. Purpose leads to objectives, objectives lead to plans, and plans can impart some structure and order to your days and weeks – and that can help cure retirement listlessness.

Will your spouse want to live the way that you live? Many couples retire with shared goals, but they find that their ambitions and day-to-day routines differ. Over time, this dissonance can be aggravating. A conversation or two may help you iron out potential conflicts. While your spouse’s “picture” of retirement will not simply be a mental photocopy of your own, the variance in retirement visions may surprise you.

When should you (and your spouse) claim Social Security benefits? “As soon as possible” may not be the wisest answer. An analysis is needed. Talk with the financial professional you trust and run the numbers. If you can wait and apply for Social Security strategically, you might realize as much as hundreds of thousands of dollars more in benefits over your lifetimes.

Paul H. Risser is an Investment Advisor Representative with and securities and investment advisory services offered through Transamerica Financial Advisors, Inc. (TFA) Member FINRA, SIPC, and Registered Investment Advisor.  Non-securities products and services are not offered through TFA.  Neither TFA nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

LD044105-07/12

Citations.

1 – www.forbes.com/forbes/2011/0523/investing-retirement-bill-bengen-savings-spending-solution.html [5/23/11]

2 – articles.marketwatch.com/2010-05-19/finance/30729568_1_retirement-period-retiree-spending [5/19/10]

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