It is common when most people talking about Social Security, they are also thinking about retirement benefits (retirement planning benefit and retirement transition benefit). But about one-fifth of all the benefits of social security benefits are the surviving spouse. So, if you plan for retirement, it is important to plan for you or your spouse to social security spouse benefits at some point in their lives. Is it possible for a non working spouse who does not receive retirement income from Social Security, to collect as the income of her husband for? (more…)

During the process of divorce, two people are expected to make rational and far-reaching decisions at a time of emotional turmoil. This may also be their first experience with the court system and hiring an attorney. Expenses often increase when one spouse moves out and sets up a separate household. Couples must estimate the dollar value of their household property and divide their debts. (more…)

Few events can turn a person’s financial life upside down as the death of a spouse. In addition to shock, grief, and loss of a spouse’s companionship, there is often less household income than before. There are also many decisions to be made (e.g., investing life insurance proceeds), forms to be completed, and suggestions from “helpful” family members and/or financial salespeople. For some survivors, the pressure to do something—anything—becomes unbearable. Decisions are made quickly, much like a “hot potato” that must be tossed away. (more…)

Because gay, lesbian, bisexual, and transgender people can still be legally discriminated against in employment in most of the country, and because gay couples are not treated equally under Social Security, pension income is an important policy issue affecting gay elders. Contrary to a widely held stereotype of gay affluence, gay men and lesbians earn no more than heterosexual men and women. In fact, gay men earn about 15% to 20% less than heterosexual men. Lesbians earn the same as heterosexual women, but because women on average earn less than men, lesbian couple households earn significantly less than heterosexual couple households (Klawitter and Flatt 1998). (more…)

As I said earlier, the amount you receive from Social Security varies based on how much you put into the system and when you start taking social security benefits. You have limited control over what you put into the system because it’s dictated by the FICA taxes that serve to allocate a portion of your earnings into the system. You do, however, have control over when you and your spouse take money retirement from the system. (more…)

Once the cash flows to be financed are determined, whether via a detailed version of the determination of planned expenditures or the simpler “rule of thumb approach,” the question of how each $1 of assets will be turned into an income flow must be addressed. How much income will each dollar generate, and for how long? This is the basic issue of longevity risk (the risk that a person will live either beyond, or not until, their “life expectancy”). This source of uncertainty presents perhaps the most significant challenge for cash flow planning in retirement. (more…)

During your working career, your TIAA-CREF accounts will probably appear totally portable, subject to the incongruities between a Group Retirement Account and an Retirement Annuity accumulation. You may find that your investment choices at your new employer are more limited than they were formerly. Of course, when you are working at institution A, its rules will control the amounts of contributions and the vehicles available to you within and without TIAA-CREF. TIAA-CREF will keep track of all of your Retirement Annuity accumulations in both TIAA and CREF as you move from one institution to the next. (more…)

There are many myths and misconceptions get in the way of realizing the full potential of retirement. Bellow are a few of the most common ones. Watch for them and don’t allow them to ruin your chances for meaningful and reap the benefit of your retirement.

The Retirement/Early Death Myth

You probably know people who were not around long after their retirement parties. The unhappy news causes strange reactions. “It’s too bad Joe didn’t work longer.” “The moment people retire, they grow old.” “I’d still have Fred if he hadn’t retired so early.” (more…)