Archive - November 20, 2013

1
How Much Are Employer Benefits Worth?
2
Never Say Never To An Investment
3
IRA Options Between Ages 60 and 70
4
Bloggers Are Encouraging Adding 1% More to Your Savings Rate
5
Social Security Bend Points for 2014

How Much Are Employer Benefits Worth?

When selecting an employer, understanding the value of the benefits offered is critical. Just because one employer may offer a higher salary doesn’t mean they are offering more total compensation than other options.

Let’s explore the value of benefits received by a 60 year-old employee who is married and has two kids (ages 18 and 15). We’ll assume this individual earns $51,017, which was the median average household income in 2012.

Payroll Taxes

The value of some benefits is easier to calculate than others. For instance, regardless of your income, your employer is required to pay half your FICA –
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Never Say Never To An Investment

Many people think I know of a “great investment” or that I have a favorite that I use over and over again. I have been in the financial services industry now for over 30 years. (Yes, I am old.) I do have certain favorites that I prefer -for myself. My risk tolerance, my tax bracket and my goals are different from yours. That said I keep an open mind when I am working with clients. I I want to find the best investment for them, and I will use anything that I think is appropriate.

Because my clientele is not …

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IRA Options Between Ages 60 and 70

There are lots of articles around that speak to what you can and cannot do with your IRA before you reach age 59½, and more that address what you must or must not do with your IRA after you’ve reached age 70½.  But what can you do in the interim period?  Surprisingly, you have all the control you may wish for.

After you’ve reached age 59½, you are free to take withdrawals from your traditional IRA with no penalties.  You will have to pay tax on any withdrawal from the IRA, but otherwise there’s no downside to taking money out …

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Bloggers Are Encouraging Adding 1% More to Your Savings Rate

English: Chart of United States Personal Savin...

Chart of United States Personal Savings Rate from 1960-2010. Data source: FRED, Federal Reserve Economic Data, Federal Reserve Bank of St. Louis: Personal Saving Rate [PSAVERT] ; U.S. Department of Labor: Bureau of Labor Statistics; accessed August 14, 2010. (Photo credit: Wikipedia)

 

In November we financially-oriented bloggers have banded together to encourage folks to increase their retirement savings rate by at least 1% more than the current rate.  It’s a small step, but it will pay off for you in the long run.  Given the poor level of savings rate (less than 5%) these days, even this small step …

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Social Security Bend Points for 2014

When the Social Security Administration announced the Cost of Living Adjustment (COLA) for 2014, this also allowed for calculation of the bend points for 2014.

Bend points are the portions of your average income (Average Indexed Monthly Earnings – AIME) in specific dollar amounts that are indexed each year, based upon an obscure table called the Average Wage Index (AWI) Series.  They’re called bend points because they represent points on a graph of your AIME graphed by inclusion in calculating the PIA.

If you’re interested in how Bend Points are used, you can see the article on Primary Insurance

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