This is a Bonus Tip to the “3 Tips To Help You Sit Pretty In Retirement” eBook.

…make your retirement planning more stable!

You can get:

• Long Term Care Insurance
• Life Insurance
• Disability Insurance

So what exactly will these 3 things do for you?

Well, they will make your 3 legged stool more stable, making it a 4 legged stool!

Cash flow in retirement is always the number 1 topic.

Just when you think you’re home free enjoying retirement with your spouse…BANG!…a life changing event occurs.

The average stay in a nursing home is 2 ½ years with an average cost of $219 per day.

Assisting living facilities carry an average cost of $3,131 per month and a health-care aid will average about $21 per hour.

Keep in mind these are averages and they will vary by state but it will not take long to use retirement assets in the event of a long illness.

Also don’t count on Medicaid; it will not kick in until a majority of your assets have been expended.

So what do you do if you have assets but not enough to cover the cost outlined above? Talk to a financial professional about Long-Term care insurance. It may be the only answer to passing on assets to a surviving spouse and/or your family.

Death of a spouse with a pension generating the majority of the monthly income can also cause problems with cash flow.

Some plans stop paying completely and others reduce benefits to the surviving spouse.

If not planned for, this event can create a major hole in a surviving spouse’s monthly cash flow.

Reviewing all life insurance options is one way to solve this unforeseen crack in your retirement plan.

Disability insurance, which may be difficult to obtain in retirement, should be reviewed at a minimum to see if is it available and at what cost.

If you have any questions, comments or concerns about  retirement planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- 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.

This is the 7th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…for social security benefits on your earnings.

To qualify, your ex-spouse must meet the following guidelines:

• Have been married to you for 10 years
• Have been divorced for 2 years
• Have reached age 62
• Be unmarried and not be eligible for an equal or higher benefit on their own work or another spouse’s work

Disability, survivor, and total family benefits are beyond the scope of this post but are benefits to consider when talking about or planning your eligible benefits.

As with any financial decision,  benefits should be considered as one leg of your complex web of retirement planning.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Call me at (239) 384-9688 with any questions about Social Security Planning or simply contact me online .

- 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.

This is the 6th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…what exactly the social security death benefits are.

This may be a touchy subject because who really wants to talk about death?

But it is a necessary part of your social security benefits that you must understand.

If an individual is fully insured at death, a lump sum payment of $255 is payable to their window(er) or minor children that were living with the individual at the time of death.

So you need to make sure that you take this into account if things start looking grim for a loved one.

Planning ahead is the smartest thing you can do…it is your future.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Contact me if you’d like to know more about social security death benefits or give me a call at (239) 384-9688.

- 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.

This is the 5th tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…your social security planning?

It’s okay, because it can be complicated.

So here are 2 ideas that might help you get a better idea of things.

If both spouses are covered under social security, one of the spouses can elect to receive 50% of his or her spouse’s benefit when the other is not at normal retirement age.

This strategy will result in increased benefits later and increased survivor-ship benefit calculations when the first spouse passes away.

Repay all benefits received and restart benefits at a higher benefit amount.

There is a one-time election that can be made and under the right circumstances can pay off with increased benefits to the electing individual and increased survivor-ship benefits.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about a Social Security Planning, contact me, or give me a call at (239) 384-9688.

- 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.

Social security benefits may be taxable…

This is the 4th tip in our series entitled: “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…based on your modified adjusted gross income.

Modified adjusted gross income includes

• Reportable income plus ½ of social security benefits received
• Tax-exempt interest
• Exclusions for qualified US savings bond interest
• Adoption benefits
• Foreign earned income
• Allowable IRA deductions

One notable exclusion from modified adjusted gross income is ROTH IRA distributions. Watch this in the future… as ROTH IRA’s become more popular, planning around distributions from ROTH IRA’s can save tax dollars.

If modified adjusted gross income (MAGI) exceeds the base amount, benefits become taxable.

Single and Head of Household taxpayers base amount is $25,000, up to 50% of benefits will be taxable if MAGI is between $25,000 and $34,000, and up to 85% of benefits will be taxable if MAGI is above $34,000.

Married filing joint taxpayers base amount is $32,000, up to 50% of benefits will be taxable if MAGI is between $32,000 and $44,000, and up to 85% of benefits will be taxable if MAGI is above $44,000.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

Contact me or give me a call at (239) 384-9688 with any further questions about your social security benefits.

- 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.

This is the 3rd tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…be aware that earnings above certain limits will reduce future benefits until you reach full retirement age.

You need to know if you will receive reduced benefits due to earnings in retirement.

In 2009, if you work and start receiving benefits before full retirement age, $1 in benefits will be deducted for each $2 in earnings over $14,160.

In the year you reach full retirement age, your benefits will be reduced $1 for every $3 in earnings, until the month you reach full retirement age, above $37,680.

Once you reach full retirement age your benefits will not be reduced no matter how much you earn.

So make sure that you know how much you’re making and if it will affect the amount of money that you will get before reaching full retirement age.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about reduced benefits or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- 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.

This is the 2nd tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

can be a complex decision that shouldn’t be taken lightly.

Knowing your full retirement age is the first step in the decision process.

Once full retirement age is determined, other parts of the decision process will include the following:

• Family longevity
• Your health
• Current earnings now and in the future
• Other income for support
• Will others qualify for benefits on your record

So once you’ve figured out all of these other parts you should be well on your way to figuring out when you should start taking your benefits.

Don’t forget that if you start taking your benefits at age 62, you will be reducing your total benefits.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about a when to claim your Social Security Benefits or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- 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.

This is the 1st tip in our series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips.”

…in planning when to start receiving your social security benefits.

There are a few different ages at which you can start receiving your retirement benefits.

Click on the link to find your full retirement age based on your year of birth.

• Age 62: The first full month an individual is 62, is the earliest age an individual can commence receiving benefits. However, benefits will be reduced approximately one-half of one percent for each month you start receiving benefits before reaching full retirement age. Click on the following link to view a chart of reduced benefits.

• Age 65: Full retirement age for an individual born in 1937 or earlier.

• Age 67: Full retirement age for an individual born in 1960 or later.

• Age 70: Age at which delayed retirement credits stop accruing.

So now that you know what age you can claim social security benefits, you’ll probably want to know when you should actually start taking your benefits.

I’ll tackle that question in the next post .

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions about  Social Security Planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- 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.

…and if you don’t understand it, it can get pretty confusing!

So the 7 tips that I’ll be going over in my series entitled “The Nuts & Bolts of Social Security in 7 Easy Tips“, will help you get started with your social security planning.

In order to understand the hot topic centered around this issue of social security being around when you retire, you must understand its beginning.

In 1935 the Social Security Act was signed into existence, with the full retirement age at 65 and life expectancy at only 62.

Obviously the population of the United States has increased, life expectancies have increased, and the ratio of workers contributing to the trust fund verses the number of individuals receiving benefits has decreased.

It’s easy to understand that the trust fund is struggling to stay afloat.

This is the reason why we have many different retirement ages!

To qualify for retirement benefits an individual must have earned 40 social security credits.

One social security credit is earned for each $1,090 (as of 2009) of annual earnings, with a maximum of 4 credits in any one year.

Most workers are eligible for benefits after only 10 years of earnings.

The social security web site can be found at www.ssa.gov.

“The Nuts & Bolts of Social Security in 7 Easy Tips” is also available as a FREE eBook at my website: www.Makara-Assoc.com/ebooks/.

If you have any questions, comments or concerns about Social Security Planning, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- 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.

Make sure that you grab the “3 Tips To Help You Sit Pretty In Retirement” eBook from www.Makara-Assoc.com.

…be doing when it comes to Retirement Planning.

That is completely fine because planning for retirement is complicated!

There are many different factors to consider for a retirement plan.

3 of the most important are:

1. A Social Security Plan
2. A Retirement Asset Plan
3. A Personal Savings Plan

So here are 3 Tips for you to get started on  your own retirement plan.

Tip 1 – Social Security Planning: How much will I get & when shall I start taking it?

Tip 2 – Retirement Planning: Did you know the income you use in retirement has BIG tax implications?

Tip 3 – Personal Savings Plan: It’s all about the Cash Flow!

Hopefully these 3 tips have given you a good idea about what you should be focusing on when planning for retirement.

There are a lot of different factors that can affect your personal retirement plan. But you will, at least, want to make sure that you have a good plan that takes these 3 factors into account.

It is your future that’s at stake! So don’t take any chances.

If you have any questions, comments, or concerns about retirement planning, or if you think I can help you in any other way, contact me, or give me a call at (239) 384-9688.

- Mark

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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.