Welcome to the Retirement Education Center channel where we prefer to Educate rather than Sell products for your retirement goals. Our aim is to help you Maximize Your Retirement Income by taking a holistic planning approach and using ALL of your available assets to ensure that you will have enough income to cover ALL of your expenses throughout your retirement years.
It has basically all talk about WEP changes Since 1984. Many have tried to have this Changed with no luck. Politicians just spinning while those who Deserve their money just sit and wait …then die off
Thanks for those excellent options for GRI resources, but as for as a Index, Variable, or Fixed annuity, wouldn't it be vastly better to become financially literate (self-directed investing) with the assistance of a fiduciary (CFP) in order to be not subjected to costly expense ratios and lower ROI ?
@ronaldcambridge3126 Always good to hear from you. You are correct, only an independent Fiduciary Advisor is mandated legally and morally to look out for the best interest of consumers and a CFP® Professional holds the highest standard of qualifications in our industry. Annuities are complex and should only be placed strategically in a well designed holistic retirement plan after considering one's individual retirement goals. Thanks again for watching and engaging.
Here are some things NOBODY tells you. * If you have a 'government' pension subject to the GPO (firefighter-cop-teacher etc), do not get divorced AFTER you retire. If you're marriage is on the rocks you need to divorce BEFORE you retire. A divorce settlement prior to retirement looks at pension dollars actually paid into that pension account to date, via your contributions, employer contributions and interest. The divorce settlement isnt based on potential monthly benefits to be paid later. Example: The total cash value of your pension(while you're still working) might be lets say $250,000. But when you retire, you're monthly benefit check might be $4,000. A private pension plan wouldn't pay that much each month. But the government pension plan is usually paid by some formula rather than the cash value of the account. Thus, if you divorce prior to retirement you just have to give your ex half the cash value of your retirement($125,000). If you're spouse has paid into any sort of 401K, you just let them keep that $125,000(assuming they have the same $250K as you), which leaves your pension untouched. They keep their retirement, you keep yours. And if they get Social Security you're just flat screwed coming and going. Otherwise you end up like me and get $2,000 less a month even though we made the same income etc. Etc etc. As an aside, you can take 10 married couples in which all 20 persons made the same money etc. And at retirement their monthly benefits will be all over the map with some persons enjoying amazing windfalls of cash at every turn due to luck circumstance and the clumsiness of retirement rules. Meanwhile, others will be destroyed at every turn due the GPO, WPE, divorce dates, and all manner of obtuse state and federal laws. I know someone that didn't pay into SS or into any pension system but is drawing 100% of one deceased husbands SS and another deceased husbands military pension. KACHINGGGG
Good video. One of the challenges is that the income limits to keep your SS tax free is very low and not indexed for inflation. If you are years away from collecting SS, unless the law changes, anyone with even minimal other income will have their SS taxed. The point is when making the Roth conversion decision make sure you realize the low limits and whether it is realistic to stay below it.
thanks for those examples and keeping the same amount easy to understand. now i know that annuities and pensions are not earned income and don't affect ss..
Hey, really liked the video🙌! I'm not really sure if it is the best time to ask but, I was wondering if I could help you create a better distribution by working on post-production like better storytelling through Edits, Keywords, think catchy intros and outros, or even some engaging short clips! Would love to chat if you're interested and keep creating good content:)
Excellent contrasts and comparisons regarding prospective wealthy and poor investors. From a layperson's point-a- view, if folks truly comprehend at least half of the financial literacy info that's conveyed in this presentation, they will likely have a fundamentally financial life changing experience ( I certainly did😊).
Thank you very much. I will be applying for benefits at 62. I am not in the best of health and retiring asap. Do I have to turn 62 before applying, or can I begin the application process before turning 62 with the effective date on my birthday?
@@ilibertyiwoman you are correct it only counts for provisional income purposes which could increase the taxation of your Social Security benefits but it does not have any effects on the earnings limit
Check Senate’s Social Security Fairness (S597) bill and Houses’s Social Security Fairness Act of 2023 (HR 82) bill to address WEP and GPO. Senate bill has 59 cosponsors and House bill has 322 cosponsors. The number of cosponsors seems encouraging, but there has been little or no action on both bills.
I will have a private pension. I paid into SS but my pension will be reduced by my SS benefit. So if i get $3,000 per month pension and recieve $2,000 per month SS that equals $5,000. However my pension will be reduced $2,000 to offset my SS benefit and i will only recieve $3,000 per month. When i retire in a few years i will have paid into SS over 40 years only to have it reduce my pension.
This is a great question. When SS figures out how much to deduct from your benefits, they count only the wages you make from your job or your net profits if you're self-employed. They also include bonuses, commissions, and vacation pay. So only your part-time income would be counted towards the earnings limit.
A HECM Reverse Mortgage LOC could also be viable option for those with the wherewithal and are more concern about their own probable long term care vs. the needs of their heirs or estate.
@@c32ttu Excellent, thank you. And if I may add, contrary to popular beliefs Reverse Mortgages are not only meant to address "retirement shortcomings".
You only get one 6 month lump sum payment and then you'll receive regular monthly payments based on what your payments would have been had you started them 6 months ago.
You explained the factors but you did not include the method of calculating a breakeven year, how to get a rough idea of the after tax amount, etc. What happens in the real world is SSA will call you when you file and only then provide the amount of the lump sum and the cost in terms of monthly payment. However they don't provide a breakeven analysis to know how many years in the future the payouts from the standard benefit will exced the value of the lump sum. It would be nice if you would provide a breakeven calculator and basic steps to do a more thorough analysis because a plain list of the pros and cons does nothing to help the recipient run the numbers.
WEP passed into law in 1983. I went to work for a SoCal Municipality in 1984. I was advised about WEP by my employer since no contributions toSocial Security would be made. After 30 yrs of service I retired with substantial pension from CaLpers . I had enough points to receive $750.00 per month at age 62. Went in to apply and was surprised I received anything. The reduction left me with3x the amount of Medicare payments. With prior knowledge of the WEP provision I climbed the career ladder and compensated for any loss of SS which was not much anyway. Unfortunately it is not fair to many people.
If one earns a non-covered pension, it is in lieu of Social Security. This occurs in the CHEAP states that do not pay FICA! It is a STATE issue, not an SS issue! Note that the GPO occurs when in a dual income home where each member has a pension (One non-covered and one SS). Examine how a Dual Income couple, both SS, is handled. Mrs. IDK with $3K and Mr. IDK with $2K. Most believe that gmvt pensions are a bit more lucrative than SS, so Mrs. IDK might really get less. But stick with the example. If either passes, the survivor will get the larger, $3K, but never BOTH! So Mrs. IDK would get nothing extra, but Mr. IDK would increase to the larger BTW, if Mr. IDK has a private pension (joint survivorship), the survivor will get that. GPO is not evil, it simple treats folks that avoided FICA & SS the same as normal folks. Well almost, you got to hold onto that 6%.
I decided to begin taking my SS payments at full retirement age because of WEP. Currently, I still working for the state of Nevada as a licensed educator and will receive a pension. I worked in the private industry before I began working as an educator for the state of Nevada. I’ve been working for the State of NV for the last 26 years where I did not pay into Social Security. I have enough months from working in NY where I paid into Social Security. But . . . Social Security will take most if not all of my Social Security benefits once I begin receiving my pension from the State of Nevada. So . . . Currently, I’m receiving my full Social Security benefits while I am still working as a teacher and have not retired from the State of Nevada. I paid Social Security while working in New York. My point is . . . it’s unfair to penalize me for the time I worked in NY and paid into the system. Currently, WEP will take All of my Social security because my pension will be more than half of my Social Security benefits.
I agree the terms of being under the WEP are not conducive for retirees that fall into this calculation. But there is at least a bit of good news, although under WEP your SS would be reduced according to your state pension, it could never be reduced by more than 50% of your pension and there is a Government guarantee that you will always get some benefit under WEP. 2024 Max WEP reduction is $587.
Thank you so much. I do need to speak with someone. II will get the instructions listed to contact you to request a consultation. Very informative video.
I appreciate your engagement in this video your questions and comments are always appreciated because it help others who are also curious about this particular topic. But what you are referring to is a survivor spousal benefit not an 'ex' survivor benefit. For an ex spousal benefits you have to have been married for 10 years or longer to claim it.
Supplementary to these "reds flags", another one would include not being financially literate in order to avoid being unprepared in any financial environment.
Great video! Thanks for sharing. I just recently did a direct rollover (trustee to trustee) from my former company's pension into a traditional IRA. I had originally wanted to put it in a Roth IRA but to avoid the taxes I placed it in a traditional IRA. Under this rule I can now do a indirect-rollover 60 day rule and put the money in my Roth IRA. Awesome!
Glad the video was helpful. But please understand that the 60 day rollover is geared towards someone putting money back into a non taxable account within 60 days to avoid having to pay taxes on money that they are not ready to pay taxes on. If you are simply taking money from the Trad IRA and placing the funds into a ROTH IRA this would ultimately be considered a ROTH conversion and taxes would be due on the amount converted.
MISSOURI TEACHERS BEWARE: Social Security will STEAL your benefits....especially....your SURVIVOR BENEFITS! Repeal: WEP & GOVERNMENT PENSION OFFSET. HR 82. S 597. My deceased husband PAID IN....and I DON'T get ANY of his larger benefit! Theft!!! John Larson = Secure Act 2100 = repeals BOTH!
Another pertinent question or issue that probably should be considered is have you really calculated (or at least have an understanding of) the break-even point in determining whether it's really optimally beneficial to take Social Security at 62 or 70. I mean, if one seriously examine what's happening in the scheme of things, is it more about the individual or the government attempt to save the Social Security program from extinction? …. just something to ponder.
Hey Ronald good observation we have a video on your very question. Social Security Break Even Point ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_Q3aY-_YzjM.html When to file for SS is certainly not a black or white conversation. The only sure way that we could tell our clients absolutely the best time to file would be if they could absolutely tell us when they were going to die. With that information typically not known you have to work with the knowns and the probability factors that may exist to determine the best filing options for an individual.
