Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Social Security – 7 Easy Tips

Posted by Mark On June 4th

Do you understand how social security works? Are you planning for your retirement? Do you know when you’ll want to start collecting your social security?

Social Security

The Social Security Act was signed into existence in 1935. At that time, the full retirement age was 65 and life expectancy was only 62. Things have changed. People are living longer, and it’s easy to understand why the social security trust fund is struggling. It is now set up with different retirement ages.

To qualify for social security benefits, you must of earned 40 social security credits by working in a job and paying Social Security taxes. The credits are based on the amount of your earnings. Your work history determines your eligibility for retirement or disability benefits, also your family’s eligibility for survivors benefits when you die.

One social security credit is earned for each $1,200 (as of 2014) of annual earnings, with a maximum of 4 credits in any one year. Each year the amount of earnings for credit goes up slightly as average earnings levels increase.

Most workers are eligible for benefits after only 10 years of earnings. The social security web site can be found at www.ssa.gov. Remember, your benefits are based on your full retirement age. Check out the chart.

The first full month an individual is 62, is the earliest age an individual can commence receiving benefits. Benefits are reduced approximately one-half of one percent for each month you start receiving benefits before reaching full retirement age.

Interested in learning more about your social security benefits? Download our FREE eBook: The Nuts & Bolts of Social Security Benefits in 7 Easy Tips.

Here is what we will review:

  • Know Your Full Retirement Age
  • When Should You Take Your Social Security
  • What are the Reduced Benefits of Social Security Due to Earning?
  • What is the Taxability of Your Social Security Benefits?
  • 2 Ideas to Help You Clear Things Up Regarding Social Security Planning
  • What are the Social Security Death Benefits?
  • What are the Social Security Benefits for Divorced Spouses?

Have more questions? Be sure to check out my “learn more” page on my website where you’ll find answers to frequently asked questions on social security, as well as topics such as wealth and tax planning. At Makara and Associates, LLC, we are happy to assist you,  contact us online or call (239) 384-9688 in Naples or (239) 768-5008 in Fort Myers.

– Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations. LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements. – See more at: http://www.cashflowplanningforlife.com/considering-divorce-what-you-need-to-know/#more-1277
This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

 

 

 

 

 

 

 

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