Latest News / Retirement in Sight - October
Retirement in Sight - October
October 18, 2016
Do You Understand the Social Security “Earnings Penalty”? Most baby boomers know that their Social Security benefits can be reduced if they earn too much in retirement. While 76% of baby boomer respondents to a 2015 AARP survey understood this fact, 57% also thought they would never recoup those surrendered benefits. That is incorrect. Social Security’s “earnings test” only applies before you reach Full Retirement Age (66-67 years old, depending on your birthdate). If you receive Social Security benefits before your FRA, your benefits will be reduced by $1 for every $2 in wage income or self-employment income you earn above a $15,720 yearly threshold. During the 12 months prior to your FRA, you can earn up to $41,880 without any of your benefits being withheld; $1 of your benefits will be held back for every $3 you earn above that amount. If some of your benefits are withheld as a consequence of all this, Social Security will try and make it up to you. After your FRA, your monthly Social Security payment will grow slightly larger; any benefits withheld will gradually be paid out to you, and you will no longer face the “earnings test.”1 Could Exercise Keep Our Minds Sharper? Perhaps it can. In a study published this spring in Neurology (the American Academy of Neurology’s monthly journal), a team of researchers from Columbia University, the University of Miami, and other institutions concluded that “moderate to intense exercise” may delay mental aging by as much as ten years. Even when controlling for other aging influences, such as alcohol consumption, obesity, high blood pressure and smoking, exercise clearly made a difference in subjects retaining memory and critical thinking skills. The average age of the 900 study participants was 71 when the study began, and the researchers tracked them over 12 years. They received brain MRIs an average of seven years into the study, plus tests of their memory and mental abilities; five years later, the tests were given again. Just 10% of the subjects were categorized as participating in intense aerobic exercise, such as running; 90% engaged in light exercise such as yoga or walking. Whether you like to work out or simply walk about, exercise seems to have real mental benefits; in addition, it often costs little or nothing.2 On the BRIGHT SIDE According to the Census Bureau, the poverty rate among seniors fell to 8.8% in 2015. That was a near historic low.3
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. 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.
CITATIONS. 1 - time.com/money/4510204/social-security-benefits-penalty-pay-off/ [10/7/16]
2 - cbsnews.com/news/exercise-may-slow-brain-aging-by-10-years-in-older-adults/ [3/23/16]
3 - time.com/money/4489827/poverty-among-seniors-has-dropped/ [9/13/16]
4 - todayifoundout.com/index.php/2016/09/five-day-work-week-became-popular/ [9/5/16]
Check the background of this investment professional on FINRA’s BrokerCheck
Located at: 600 E 84th Avenue Merrillville, IN 46410
Phone: (844) 755-6600
Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.
These products and services are being offered through Cetera Investment Services LLC or its affiliates, which are separate entities from, and not affiliates of, Centier Bank or Centier Investments. Securities and insurance products offered by Cetera Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.
This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com