Monthly Archives: May 2014

When to start collecting Social Security benefits. Chapter 5.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

 What are the trade-offs? 

Here’s a hypothetical example. Let’s assume that your full retirement age is 66 and you are eligible for a benefit of $1000 per month at full retirement age.

If you start collecting at age

  • 62 you collect $750
  • 63 you collect $800
  • 64 you collect $866
  • 65 you collect $933
  • 66 you collect $1,000
  • 67 you collect $1,080
  • 68 you collect $1,160
  • 69 you collect $1,240
  • 70 you collect $1,320
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Before I Go” reader reviews

BEFORE I GO and the BEFORE I GO WORKBOOK is available on Amazon.com and has received wonderful reader reviews.  Here is what some of the readers said:

Nancy B Moy reviewed Before I Go

A must read for all….esp. those 60+ November 14, 2013
Every husband, wife or significant other needs to read this book and follow through with the workbook. What a wonderful gift to leave behind when you leave this earth. Everyone who has ever had to deal with the estate of a loved one knows how important it is to leave great records …..it can be mind boggling trying to locate important, accounts numbers, insurance policies, etc. Korving gives each one of us the place not only to record financial information but also our own wishes regarding our own funeral. As a financial adviser, he also clears up the differences between wills, trusts, titling of assets etc. that can help you have your “ducks in a row” when your time comes. A must purchase…both the booklet and workbook.

S. Harms “Dr Susan” reviewed Before I Go Workbook

1 of 1 people found the following helpful
Bought 2 May 26, 2013
I bought this for myself (I am 64) but I am also the executor for my 80yr old aunt. She wanted me to write down some questions to ask her attorney and also help her prepare, I sent her the book and she loved it.
I am working thru it, find that there are pages I need to attach(such as password, PIN lists) but causes me to write down things I have been thinking but wont share verbally with my sons. They don’t want to talk about me dying.
I recommend the books, both the book (easily readable in an hour) and the workbook.

beachcomber reviewed Before I Go

Estate planning beyond the Will or Trust April 5, 2013
Excellent summary of what everyone needs to do as part of their estate planning process.

People believe that they have completed their estate plans when they have a will or trust prepared by an attorney. Nothing could be further from the truth. The information people need when a spouse dies often dies with them.
Before I Go begins with a review of Advance Directives, moves on to funeral planning and then gets into the financial issues that people face after the death of a loved one.

Planning for ones own demise is no one’s idea of a good time, but avoidance of the issue does not stop the inevitable. It is wisdom and kindness to ones family to prepare.

Korving is best known as an investment adviser specializing in retirement planning. He uses his experience developed over 25 years helping people deal with the emotional and financial issues surrounding the death of a spouse. The advice he gives in Before I Go is invaluable and the accompanying workbook allows both the husband and wife to provide the information that one or the other will need when that time comes.

Thanks to our readers.  For an autographed copy, please call 757-638-5490.
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When to start collecting Social Security benefits. Chapter 4.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

 

Let’s discuss the third one: start collecting after full retirement age?

 

If you delay past full retirement age your benefits are increased 8% annually up to 32% through delayed retirement credits. Credits are available to age 70.

 

The Pros:

 

You receive a higher benefit amount than otherwise available at full retirement age.

Your surviving spouse is also eligible for the higher monthly benefit.

 

The Cons:

 

You could receive benefits for a shorter period of time depending on how long you live.

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When to start collecting Social Security benefits. Chapter 3.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

 

Let’s discuss the second one: start collecting at full retirement age?

 

At full retirement age you receive 100% of your benefit.

 

The Pros:

 

You receive the full Social Security benefit earned.

 

The Cons:

 

You could receive a larger benefit by waiting.

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When to start collecting Social Security benefits. Chapter 2.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

Let’s discuss the first one: start collecting early?

You can start collecting between age 62 and full retirement age and receive reduced benefits. The reduction can be up to 30% depending on your age.

 

The Pros:

You can potentially collect over a longer period of time depending on longevity.

The Cons:

You reduce your monthly benefit for life and the life of your surviving spouse.

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When to start collecting Social Security benefits. Chapter 1.

You have three main options:

  • Start collecting early
  • Start collecting at full retirement age
  • Start collecting after full retirement age

We will have a series of articles on this subject because there’s much to discuss. Let’s begin by defining full retirement age.

 

Year of birth

Full retirement age

1943-1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 or later

67

 

 

Your full retirement age is the age when you qualify for 100% of your social security benefits.

If you start collecting social security benefits and then change your mind you may be able to withdraw your claim and re-apply at a future date if you do so within 12 months of your original application. All benefits must be repaid and you can only do this once.

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Is there a difference between Registered Investment Advisors (RIAs) and the big national firms?

Yes there is.

Registered Investment Advisors (RIAs) are not the same as the big national firms. RIAs are not the same as the companies that make investment products. We are not the same as those who sell those products as their primary function.

If you have ever worked for one of the big national firms, like I have, you’ll know why headquarters refers to the brokers in their branch offices as the “sales force.”

RIAs are not product manufacturers, that’s the job of mutual funds and the major investment firms. Nor are we financial products salesmen, that’s the job of brokers who work for the “Big Box” brokerage firms. Some of the products that the financial services firms produce are great, and we’ll use them when they fit our clients’ needs. But some of them are bad and have given the financial services industry a bad reputation.

RIAs have other, more important, duties. We don’t work for product manufacturers. We work for the elderly widows, for retirees who depend on their savings to live, for the middle aged who are hoping to retire some day, for the young couple starting out to raise a family and buy a home. We work for our clients; they are the ones who pay us, not the big firms on Wall Street.

The financial services industry works with faceless masses of people and depends on big numbers to make its money. The typical RIA works with small numbers. A few at a time, and we usually know each of our clients personally.

The financial services industry simply can’t supply full-spectrum custom responses to individual needs. It can’t use its hard-won experience to guide its clients though some problem that has cropped up in life.

The financial services industry hopes that ultimately you will be satisfied with a computer program or the clerk at the other end of a toll-free number because they have lots of practice designing computer programs and setting up call-centers. But answering your question about college expenses for your children or helping your choose a senior living facility is not a profitable use of their time.

So if you want to be part of the “thundering herd,” work with the people at the Big Box stores. Their duty is to sell you “suitable” products. But if you want to work with someone who is a Certified Financial Planner™, who isn’t going to sell you the product that his company is currently promoting, who is going to take the time to know you personally, check the RIA community. They work for you, not Wall Street.

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