Wealth Management Blog | WrapManager | Retirement Income Strategy (3)

Ladies, Don’t Make this Social Security Mistake

Posted by Katie O'Connor | Director of Client Services

October 7, 2014

Ladies, Don’t Make this Social Security Mistake

There’s no disputing the fact that women live longer than men, but, according to a Nationwide Financial survey, only 3 percent of women wait to take their social security benefits until they’re qualified to receive the maximum amount. The decision to start receiving social security benefits at the full retirement age of 66, or even to start collecting them early at age 62, means that women can miss out on hundreds of thousands of dollars of much-needed retirement income - a social security mistake to avoid if possible.

One in four women reaches the age of 92, and with rising healthcare costs, it’s increasingly important that women work with a financial advisor to create and monitor a retirement income plan. However, only 33 percent of women currently work with financial advisors. Those who don’t work with financial advisors are nearly three times as likely to report that their Social Security payments are less than they anticipated.¹

Keep Your Retirement Plan on Track with Quarterly Reviews

October 2, 2014

Your Financial Advisor is there to keep an eye on your investments and make adjustments to keep your finances on track. But if your journey through retirement is going to stay on track, you should regularly check in with your Financial Advisor as your life and the economy change. These reviews (at least quarterly) give you an opportunity to evaluate your goals and make adjustments to your investment and retirement income plan. They also help make sure your investment strategies are still appropriate for you. It is also a good time to take care of housekeeping items such as updating beneficiaries. Tasks like these may seem minor, but they could have a big impact on your finances if they’re neglected. It doesn’t take long to review your investment plan with your Financial Advisor. Just an hour or two per quarter can keep everyone on the same page and help you to meet your goals. [+] Read More

Social Security Strategies for Divorced Spouses

October 1, 2014

Planning for Social Security benefits is complex, and if you’re divorced, you may have wondered how spousal benefits will work for you in your retirement years. One thing is for certain: when it comes to Social Security, timing is everything. Knowing and understanding your options can help improve your retirement income plan. General Options Just as there is flexibility for married retirees, divorced retirees have several options when it comes to Social Security. Spousal benefits are generally 50% of your ex-spouse’s full retirement benefits if you file at your full retirement age (66). [+] Read More

Economy Poised for Growth, Equities Higher – Federated Investors

September 24, 2014

Dividend money manager Federated Investors’ commentary discusses why they believe the economy is poised to grow even further this year, driving equities to new highs. “2014 hardly could have started worse, with a brutal and seemingly never-ending winter bringing activity to a halt and keeping shoppers at home in much of the country. The final first-quarter estimate told the story, with real gross domestic product (GDP) contracting a much worse-than-expected 2.1%. But there’s a reason the equity market shook off the number. It was, after all, so yesterday. What today and the rest of the year look like are much different, as manufacturing and jobs appear to be accelerating, auto and retail sales are on the upswing and even housing is showing some signs of pulling out of its funk. The government’s estimate of second-quarter growth was a well-above-consensus 4.2%, in line with our view that the economy is settling onto a higher growth plane that will drive equities to new highs this year and into 2015.” Download Federated's Full Commentary Here Get Free Research Reports on Federated Investors [+] Read More

Retirement Income: Which Accounts to Withdraw from First

September 10, 2014

Often times your fixed sources of income like Social Security and pensions will not fully meet your retirement income needs. This likely means you’ll need to tap into your investment accounts to increase your income. But which accounts should you draw from first, and when is the right time to take distributions? Here’s a general guide for choosing which accounts to draw down first and why. Remember, which approach you take depends on your unique situation and goals. [+] Read More

Popular E-book Helps You Face Retirement Planning with Confidence

August 28, 2014

Retiring in today’s world can seem to be a bit of a mystery. It used to be that when you retired, your company threw you a party then sent you home with a comfortable pension and health insurance. While times have changed, that doesn’t mean your retirement has to be any less comfortable or rewarding than your parent’s. In fact, with all the investment and planning options available today, you and your financial advisor can build a goals-based retirement plan that best suits your income needs, your future plans and your family’s unique situation. Our popular e-book, 5 Ways to Enhance Your Retirement Planning Strategy So You Can Face the Future with Confidence, provides you with an understanding of five of the most effective methods of planning for your retirement. [+] Read More

Boost Your Social Security Check with These Strategies

August 27, 2014

Managing retirement income is a highly personalized endeavor. What works well for one person isn't necessarily the best solution for another. But one thing is usually true for everyone: increasing your social security income is a good thing. It turns out that your social security income amount isn't necessarily fixed. You can potentially increase social security benefits by taking advantage of one more of the following strategies. And that's definitely a good thing. [+] Read More

Social Security in Retirement: How Much Will You Get?

August 20, 2014

Should you count on Social Security benefits as an integral part of your retirement income plan? And how much? These are questions we hear often. There's a lot of confusion out there regarding social security benefits because misinformation abounds. With political issues, rhetoric becomes inflamed, and information is often used to sway opinion or policy. But when you're planning for retirement, misinformation is dangerous. What you need are solid answers about Social Security. Let's look at some of the most common questions surrounding Social Security in retirement. [+] Read More

Should You Invest in Master Limited Partnerships?

July 30, 2014

If you want to add more yield-producing investments to your portfolio, one option for you could be master limited partnerships (MLPs). They could help increase your portfolio’s overall yield and improve your retirement income strategy. MLPs – which invest largely in oil and gas assets – are experiencing a revival and currently pay attractive yields relative to traditional income producing assets, like dividend-paying stocks and US Treasuries:1 Asset Class Yield and Correlation (Click chart for larger version) Source: Newfound Research LLC. Yield on a given day is calculated using smoothed 12-month trailing dividends. Yield presented in the table is computed as of 3/31/2014. Correlation is calculated as Pearson correlation of monthly returns between the asset class ETF and the S&P 500 ETF “SPY” from ETF inception to 3/31/2014. [+] Read More

Will the Taxman Cometh for Your Social Security Benefits?

July 10, 2014

As you look forward to retirement, you may be picturing the easy life. Maybe you plan for the beach, maybe you will pursue a new hobby, charity work or even a new, more fulfilling career. As you are preparing to enter retirement remember that you Social security benefits can potentially be taxed and plan ahead. If you think of the six-fingered vizier Count Rugen from the movie "Princess Bride" and his egregious tax collection every time the IRS comes to mind, just remember, the IRS does not need to be scary. You do not have to be crafty to get prepared for retirement. The key is to plan ahead! How Much of Your Social Security Benefits are Taxable? The short answer is the IRS will probably want their portion. How much can vary based on how much income and the type of income. The IRS offered Publication 915 to help resolve the answer to my question "Are my social security benefits taxable?"1 [+] Read More