Page 15 - Lifestyles in Palm Beach Gardens - August '19

Lifestyles in Palm Beach Gardens, Page 15
Will You Retire Or Keep Working?

Your Answer May Impact Your Social Security Check

By John A. Rojas, CFP ® Social Security to pay for immediate expenses, while to watch your withdrawal rate to ensure it remains
One of the most important decisions you will make your other retirement savings (e.g. retirement plan or sustainable.
in retirement is when to begin receiving your Social other savings) have time to continue to grow. Keep working and wait to claim Social Security:
Security benefits. Yet this decision often depends on • Con: Your monthly check can be reduced by up to If you expect to rely on income from your current job
another: whether you plan to retire or keep working. 25 percent or more compared to the amount you would or another one in retirement, you may consider waiting
The following are some pointers to help you make both be awarded at full retirement age. This difference may to claim benefits.
decisions with confidence. be significant if you spend decades in retirement. • Pro: Relying on a steady paycheck can allow you
When You Can Claim Social Security Benefits Keep working and claim Social Security: You are to continue building your nest egg with additional
Understanding your Social Security award starts with allowed to apply for benefits and continue to work. savings, while your Social Security benefits grow too.
the concept of full retirement age, or the age at which you • Pro: This is a common approach for retirees who choose This approach may be ideal if you want to save more to
are eligible to receive full retirement benefits which are to pursue part-time work. Claiming allows for a steady achieve your dream lifestyle later in retirement.
determined by your year of birth, earnings history and stream of income in case your other paycheck fluctuates • Con: You may not be able to choose your retirement
other factors. For those born between 1943 and 1954, and gives your investments time to continue to grow. date. A layoff or health event could affect even the best-
full retirement age is 66. And for those born after 1959, • Con: If you are under full retirement age, your laid plans, so have a contingency option in place if you
it gradually increases until it reaches 67. You can check check will be further reduced if you exceed the annual choose this approach.
with the Social Security website (SSA.gov) to look up earnings limit. If your Social Security benefits are These are only the most common scenarios, so keep
your full retirement age. reduced because you work, they will be increased when in mind that other factors (such as your marital status
The Social Security rules offer some flexibility to you reach full retirement age. Social Security benefits and potential spousal benefits, amount of savings,
apply for a lower or higher monthly benefit. You can file can be subject to tax, so you may run up a higher tax financial concerns, retirement goals) will also impact
for a lower benefit (compared to waiting until your full bill. Consult your tax planner to review the implications your decision on when to claim benefits. For guidance
retirement age) as early as age 62 or delay the start of of this scenario. on when the best timing may be for you, visit the Social
your Social Security checks to receive a higher benefit Retire and wait to claim Social Security: If Security website (SSA.gov) and consult a financial
until as late as age 70. Note: There is no financial benefit you defer your retirement benefits beyond your full advisor in your area.
to waiting beyond age 70 to claim. retirement age, you will get a bigger monthly check John A. Rojas, CFP is a Private Wealth Advisor with
Beyond the age at which you choose to file for when you finally start taking benefits. Ameriprise Financial Services, Inc. a private wealth
benefits, one of the biggest factors in the amount you • Pro: Delaying benefits may be advantageous if your advisory practice of Ameriprise Financial Services, Inc.
will receive monthly is whether you decide to work or expenses, including health care costs, are manageable in Palm Beach Gardens, Fla. He specializes in fee-based
not. The following are pros and cons of four common in the foreseeable future and you expect to live long financial planning and asset management strategies and
scenarios: enough to make up for the months or years of postponed has been in practice for 21 years. To contact him, please
Retire and claim Social Security early: If you benefits. call: (561) 383-3643, 11300 U.S. Highway 1, Suite 600,
decide to apply for benefits early, you will receive a • Con: You may need to start drawing down other Palm Beach Gardens, FL 33408, john.rojas@ampf.com.
reduced amount. sources of income in the interim. Doing so may generate Investment advisory products and services are made
• Pro: One benefit of this approach is you can use less investment growth in the future, so you will need available through Ameriprise Financial Services, Inc.,
a registered investment adviser.
27 Year old Networking Group has 47 Ameriprise Financial, Inc. and its affiliates do not
offer tax or legal advice. Consumers should consult with
members that want to refer business to you! their tax advisor or attorney regarding their specific
situation.
Where: Abacoa Golf Club Ameriprise Financial Services, Inc. Member FINRA
and SIPC.
When: Wednesday morning from 7:30 am - 8:45 am
Who: Visit our website to see if your category is available.

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Call Marc Weinberg at 561-262-4724

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