FINANCIaL
FIELd NOTES
A Unique Widow Social Security Claiming Strategy
Are you a widow or do you know someone who is a recent widow? If so, this strategy may be worth considering between the ages of 60 and 70.
Under Social Security, widows are entitled to a widow benefit as early as age 60, two years earlier than the earliest filing option of 62 for most retirees. The unique strategy that can be used here is filing for only widow benefits while allowing your own Social Security benefit to continue growing until the maximum age of 70…
Do Future Retirees Benefit from Social Security’s 8.7% COLA Adjustment?
Many of my current retired clients received a sizeable cost-of-living adjustment (COLA) of 5.9% in 2022 and are set to receive an 8.7% increase in 2023 as inflation numbers remain high.
However, I recently had a client who has delayed taking their benefit ask if they will miss out on the high COLA adjustment since they do not have a current benefit that Social Security could increase…
Using Social Security's 8.7% COLA to Improve Your Finances
Social Security announced last week that there will be an 8.7% increase in Social Security Income payments in 2023. That equates to an average increase of $140/month starting in January. For many of my clients who worked into their late 60s, the increase will be $200-$300/month.
The increase is timely as many individuals have faced the burden of increased costs on everything from food to utilities. Many individuals have no other choice than to get caught up on bills that they have fallen behind on as prices have soared. For others, they may have the opportunity to start getting ahead…
Calculating Your Minimum Lifestyle Floor
I was recently listening to a financial advisor describe the “minimum lifestyle floor” (MLF) that they have their clients calculate. The idea is that your expenses can be divided into two categories, necessities, and fun money.
The necessities include food, housing, basic transportation, utilities, and health care. I also would add another “other” category for things like basic charitable giving, small gifts, personal care, and pets since you’re probably not going to pass on Christmas gifts or give away Buddy the dog because your finances are tight.
Is Social Security Running Out? 2022 Edition
Will there be anything left when I retire? Will my benefits get cut? These are some of the most frequent questions I get when it comes to someone’s retirement plan. And the media loves to talk about the Social Security problems.
Fortunately, there is data to answer these questions. Every year the Board of Trustees for Social Security reviews the financial status of the trust fund that pays out Social Security benefits. Recently, the board released its 2022 report, and below is my summary…
Retirees Are Not Spending Enough
Would you rather spend money on that vacation now or have your children spend that money when you’re gone? This is a question I ask might ask a client who is living well below their means.
I am coming across more individuals who are not spending nearly as much as they could. And now the data seems to support it…