Retirement Archives - Super Saving Tips

The Screwed-Up Social Security System

February 7, 2020 February 6, 2020

Based on what you earn throughout your lifetime, you become eligible for Social Security retirement benefits when the time comes. That time can vary from person to person for many reasons, because once you hit age 62 you become eligible to get it, but you can wait for years if you choose to, even up to age 70.

When it comes to the Social Security system, there are a few things that can keep you from maximizing your benefits. Here are some of the gotchas to beware.

But despite the success and importance of the Social Security plan, the system suffers from problems and mistakes. Sometimes mistakes are made by the Social Security Administration (SSA). And sometimes you make them yourself. Why?

Retirement, Taxes

How to Avoid Paying Income Tax in Retirement

January 31, 2020 January 30, 2020

Everyone has to deal with taxes; they’re oftentimes unavoidable. But if you play your cards right, you can spend as little money as possible on them. You may even be so lucky as to avoid paying income tax altogether in retirement and get this… the government might actually give you money when tax season rolls around in a little something called the EITC, the Earned Income Tax Credit.

You can maximize your finances if you avoid paying income tax in retirement. Here are 9 types of money that aren't taxed, plus money you might get for free!

Retirement won’t save you from the tax forms and some headaches, but there is money you get that Uncle Sam can’t touch, as long as you play by the rules. And you have to know and understand the rules to win this game. So pay attention now and learn how you can actually avoid paying any income taxes on these things when you hit retirement!

Retirement

The SECURE Act: The New 2020 Retirement Plan Rules

January 14, 2020 January 13, 2020

With all the news we are bombarded with every day, you may have missed this information which is new and will affect every single person in some way in their life. It is the passage of the new SECURE Act which became the law effective January 1, 2020 and changes retirement plan rules.

The new SECURE Act has made some important changes to retirement plan rules that you need to know. Here are some of the details and how they may affect you.

The new law has 29 new provisions or major changes, but I want to focus on just a few major areas. Some of this news is good news and some of it could be bad.

Retirement

“Will I Ever Be Able to Retire?”

November 15, 2019 November 15, 2019

Most people just took it for granted. What was it? The fact that when you’re young, you’ll go to college and get a great quality education that lands you a good job and starts a great working career. Or, perhaps you will take up some kind of trade after high school or even join the military and that will be your career path. The choices you make, they may eventually lead to—over the course of forty or so years (if you’re smart, frugal and make good money at your work)—your accumulation of enough money to retire comfortably at the age of 65 or so. That was then and this is now. Is it still true? You may wonder, “Will I ever be able to retire in the 21st century?”

If you're wondering, "Will I ever be able to retire?", you're not alone. But it's important to face where you're at and get started planning and saving!

A Cold, Hard Look at My Retirement – When It Happened

I made it. I am retired, albeit I didn’t do it with the full intention of retiring when I was forced to because of my health at the age of 62, eight years ago. A not-so-funny thing happened to me on my way to retirement and it’s called a heart attack, type 2 diabetes and CHF (congestive heart failure). Believe me when I tell you it wasn’t then—nor is it now—any fun.

Retirement, Saving & Investing

Everything You Need to Know About 401(k) Contribution Limits for 2020

November 8, 2019 November 7, 2019

When it comes to preparing for retirement, it’s very important to stay right up to speed with all the rules, regulations, and changes made by the IRS from year to year. With the next year looming just two months away, the IRS has made some 401(k) contribution limit changes for 2020 but still has left both Roth and traditional IRA contribution limits for 2020 flat.

The IRS has changed 401(k) contribution limits for 2020 and here's what you need to know about them to maximize your retirement savings.

The IRA limits are again unchanged from 2019’s $6,000, or $7,000 combined if you’re age 50 or older. This is the second straight year at those caps. The caps are the maximum amounts you can kick into those retirement accounts, whether you use just one type or in any combination. Before 2019, the IRA contribution limits stayed the same for six years in a row. So just in case you needed a refresher, today I thought I’d go over some of the things that you really need to know when you are saving in these accounts for your retirement!

Retirement

Will Your Retirement Be Scarier Than Halloween?

October 15, 2019 October 14, 2019

It seems that before we start working for a living, all we can think about is getting a good job and earning lots of money. I am pretty sure that the vast majority of us think exactly like that when we get to a certain age and that’s probably by the time we near the end of high school or college. After all, we know we are going to be out on our own soon and we need a job. But then a funny thing happens.

If you don't pay attention to retirement planning basics, your retirement may be scarier than Halloween! Here are six strategies to help you plan.

Almost as soon as we start that “first great job”, some papers are shoved in front of our faces and one of them is all about benefits and retirement plans. Retirement planning? I mean, holy crap, I just started working and now I have to think and decide about retirement planning?

Retirement

2020 Social Security COLA May Not Be Good News

September 17, 2019 October 11, 2019

Update: The SSA has announced that the Social Security Cost-of-Living Adjustment (COLA) for 2020 will be 1.6% as predicted.

Every year around this time, anyone who gets a regular check from Social Security gets curious and also a bit nervous. That’s because they and I know that in just a few weeks, mid-October, the annual Social Security Cost-of-Living Adjustment (COLA) for 2020 will be announced. This comes as our lawmakers are looking for ways to expand and preserve Social Security, a task they have been avoiding now for decades. So perhaps for them, this news that Americans might be in for a smaller cost-of-living adjustment next year is good news. But not for anyone who depends on it.

For those relying on government benefits, the Social Security COLA 2020 may be a disappointment. While an increase is expected, it isn't very much.

According to a new estimate released by The Senior Citizens League on Thursday, the 2020 COLA is forecast to be a 1.6% increase which would come out to about $23.40 per month for the average beneficiary (the average beneficiary received $1,475 a month this year). That compares to the $40.90 beneficiaries received in 2019 which was a 2.8% COLA.

Insurance, Retirement, Saving & Investing

Are Annuities Good or Bad for Your Retirement?

August 16, 2019 September 13, 2019

A lot of financial experts and bloggers don’t recommend annuities or even like to talk about them very much. They are more likely to recommend and want to talk to you about investments in stocks, bonds, and mutual funds for growing your wealth and prepping for retirement. That may leave you to wonder what annuities really are and whether you should you invest in them for your retirement years.

Annuities...good or bad? They have a poor reputation, but there can be good reasons to include the right one in your retirement plans.

I chose to purchase an annuity about 20 years ago (when I was 50) with qualified money I used from a 401(k). Then, about 5 years ago, I took that money and used it to purchase a 5-year deferred annuity that will start paying me beginning in January of 2020. Those payments are guaranteed to me or a beneficiary (my wife who is 20 years my junior) for 20 years, or for my entire life as long as I live (even if I live to be 100 or more). This made good sense for my situation. But, before you decide that an annuity is either a good or bad choice, ask yourself this: Have you taken a really good look at annuities and do they make any sense for you?