SOCIAL SECURITY: WHEN TO TAKE IT

#SocialSecurity #retirement #savings #earnings
It’s a question discussed numerous times in this space: when to take Social Security.
Maurie Backman of The Motley Fool took it on in a Christmas Day article, 2018, in The Atlanta Journal-Constitution.
Take it early, at age 62, and you get a lesser amount than you would at your full retirement age. But, if you have already retired and need to cobble together an income, taking Social Security early is an option.
Of course, the longer you wait to take it, the bigger your check will be. Wait until age 70, and your check could be pretty good-sized.
Backman cites three reasons he believes taking Social Security at age 62 might be a good idea for you: first, you are unable to work (or are having trouble finding a job, even though you are able to work); you’re in bad health; and, you’ve earned the right not to wait.
All those reasons make sense for some people. But everyone’s situation is different. Here’s one rule of thumb for everyone: don’t take it early just because you fear the government will run out of money and the checks will stop. Most experts believe Social Security will be around for quite some time, even if the government does nothing about the funding. Benefits may have to be adjusted in the future, they say, but it’s unlikely to go away entirely.
When making the Social Security decision, consider the following: what other income do you have, or will you have, in retirement. Income includes pensions, dividends and interest from your savings and investments and, perhaps, a no-stress, part-time job. Income, for some, may also include a full-time job. Yes, there are those who love their jobs enough that they don’t want to retire. If you are fortunate enough to be in that situation, and your employer will keep you on forever, that’s excellent.
Most folks, though, have jobs that will get old after a while, if they haven’t already. Others may have employers that are eager to get them retired, or at least out of their employ.
It’s a good idea, if you are among the latter categories, to have a Plan B in place that will give you income that will enable you to go with whatever happens, “retire” when you want and potentially give you financial freedom. Many such vehicles involve only a few part-time hours a week, with the potential to dwarf your working income. To check out one of the best such vehicles, message me.
Also, as you ponder when to take your Social Security, know that no matter how many years you paid into it, and no matter how good your income was, that government check alone probably won’t give you enough money to give you the retirement you want. You WILL need some other financial resources.
If you haven’t yet retired, and don’t know what your resources will be when you do retire, it’s time to start planning for it. The earlier you start planning, and the more disciplined you are, the better off you’ll be when you get older.
So, start saving, and get a good, trusted financial adviser to guide you in retirement planning. Remember, too, that retirement planning isn’t all about money, though money is a big factor. Know what you’ll want to do when you retire, and plan to make that happen.
The Social Security office nearest you can give you your options, based on your income. The wise person will have a plan so that, no matter when he or she retires, he or she will never run out of money.
Peter

MARKET PREDICTIONS AND PRUDENCE

#StockMarket #investing #BullMarket #MarketPredictions
Of late, the stock market has been, shall we say, volatile.
A decade ago was a big-time bust. The years hence have seen a boon.
Will that boon, soon, become a swoon?
The predictors have started to come out.
In an article for The New York Times, Alex Williams sites five popular doom-and-gloom scenarios, or situations, including the student debt problem, the situation with China, the end of easy money, Italy’s possible exit from the European Union and an anti-billionaire uprising across America.
Williams’ article was also published in the Dec. 23, 2018, edition of The Atlanta Journal-Constitution.
Meanwhile Dr. Steve Sjuggerud, who says he’s had an extensive Wall Street career, says, “We are in the final stages of a massive bull market. And the biggest gains lie ahead.” His predictions were published by The Tennessean in Nashville Jan. 27, 2019.
His theory is that just before bull markets end, there’s a big run-up in stocks because people who listen to other doom-and-gloom predictions get out too early, leaving enough cash floating around to find bargains and profit.
Warning: investors should not panic over the impending end of the bull market. Markets go up and go down. Prices go up and come back down. A prudent investor has a strong plan, and stays with it.
What is a strong plan? It’s investing prudent amounts of money in a variety of vehicles. Some of those vehicles are designed for growth – in other words, you buy them at a fairly low price anticipating their value to become apparent to the market, and they rise in price.
Then, as the price goes up, you see a good number and sell enough shares to get your cost back, and let the rest continue to grow. That’s called playing with the house’s money.
But, a good plan also has vehicles that produce income, in the form of dividends, interest etc. Even if the share price of these vehicles drops suddenly, the dividends and interest keep coming. So, you have the comfort of letting their value ride out the downturn as your income keeps coming in. Of course, you need to watch whether the dividends and interest stay constant, or start to drop. If they drop, it may be time to cut your losses.
The point here is that a good plan can weather the ups and downs of the market. Sure, if the market drops, the overall value of one’s portfolio will drop with it. But that should not deter your strategy.
There are also scenarios in which you may decide that a stock, or other investment, isn’t doing what you thought it would. So you sell it to raise cash to use to find bargains in a down market.
If all this seems complicated, find a trusted adviser who can guide you through market ups and downs, and let him or her give you advice.
Don’t really have enough income to invest in stocks? There are many ways out there to pick up extra money by devoting a few part-time hours a week that doesn’t involve what you might see as a “second job,” and aren’t dependent on the markets. To check out one of the best such vehicles, message me.
Recessions, market downturns etc. hurt. They don’t have to devastate you financially. Prudence and balance in your investments, and staying with your plan regardless of market gyrations, is the key. Markets may not go up in a straight line, but, over time, they most always go up.
Peter