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May June 2015
- 1. www.timhoppes.com ISSUE 5 |MAY / JUNE 2015 In reading a Money Magizines online issue, I came across a subject I have spoken to many clients about and the answer is always different, When should I start taking Social Security? I paid into it I deserve it and I want it, NOW. An article written by Philip Moeller on May 18, 2015 has some good info and I thought I wanted to share the main points of the issues with you. Philip does stress that fact that people need a plan, a real Retirement Plan, and Social Security is a part of that plan. But your plan is just that, YOURS, not what somebody else did. I have always felt that planning what your INCOME will be or what it needs to be in Retirement is not only important, it is essential. Remember, the three phases, Accumulation, preservation, and Distribution. As we go through life we gather and amass wealth as best we can, then we try to make it grow and hold on to it. But, the hardest part is understanding the distribution phase, your income in retirement. Social Security is a part of that plan, but you will need other assets also. PLAN...... 1) Compare the tax benefits. SS will grow 7%-8% per year you defer from 62 to 70. Taxes are never levied on more than 85 cents of each dollar of SS benefits, and most states don't tax , (continued on page 2) In this Issue. How to decide when to take SS? 6 points to think about before you sign up! Power your own retirement! By our own Robin Hoppes Next issue! Long Term Care thoughts Have you made a plan to retire? May / June Update When should you start claiming Social Security Benefits?
- 2. Page 2 www.timhoppes.com Theonly asset available on the market today that can offer all this..... 1. Secure principal protection 2. Is not tied to market volatility 3. pays guaranteed income for life 4. income that can be up to 100% tax free 5. offers a hedge against inflation 6. can increase with market upside without any negative effect from a downturn 7. spousal continuation 8. can double to pay for qualifying healthcare costs 9. liquidity - access your money anytime 10. typically cost less than 1% in fees, fully transparent IS AN ANNUITY them at all. Compare these terms with 401(k) gains and taxation, then decide which dollars are most worth preserving. 2) Asses the cost of early claiming. SS benefits claimed before (FRA) Full Retirement Age (66 for people now nearing retirement) are hit with early claiming reductions and, if you are still working, subject to at least temporary benefit reductions caused by the Earnings Test. 3) Weigh the Medicare Impact. if you have a health savings account (HSA) through an employer group insurance insurance and are eligible for Medicare, filing for SS will force you to take Part A of Medicare. This may force you to drop out of your HSA! 4) Consider Longevity Risk. Review family health history, complete an online longevity survey, and estimate your probable lifespan. This will help you figure how long your funds need to last. 5) Think About Your Family. Will you have school age kids at home when you turn 62? if so, filing early for SS may allow your kids to claim benefits based on your earnings record. In this case filing early may put More money in your pocket. 6) Plan for Your Spouse. Survivors benefits are keyed to SS benefits received by the deceased spouse. So, the longer a spouse waits to claim, the higher their partners survivor benefit will be. This is a real issue for millions of women who out survive their husbands and whose own retirement benefits are smaller than their husbands because they earned less money in their lives. So much to think about before just signing up for SS. Philip Moeller is an expert on retirement, aging, and health. He is Co-author of teh New York Times bestseller, "Get What's Yours; The secrets to maxing out your Social Security" This month, in tribute to my father, I am featuring Beef and Noodles. This is a pressure cooker recipe and is great as a one pot dish. If you would like this recipe, email me at timhoppes@me.com and I will send it out to you!!! ( sorry that the photo is not of MY recipe, but I still haven't started taking pictures of everything like some younger folks, I'll get better, but this is close!!) timhoppes.com
- 3. Page 3www.timhoppes.com When Iwas a little girl growing up onourfamilyfarminSouthTexas, I was with my dad "helping" every chanceIcouldget.WhenIwasbig enough,hetaughtmehowtoshoot and took me hunting. I have the best childhood memories! I would go with Dad to check on the livestock, mend fences, and bail hay.Thecattleneededfeed,water, minerals, and salt blocks. Some of them needed to be wormed or taken to market, and we had to keep a close eye on the heifers that were going to have calves. We had eight wells and one- to two-acre ponds on our farm. We fished, swam and stocked those "tanks" with bass and catfish. One pond had a windmill pumping water. I was fascinated by that big windmill and drank from it often; the water was cool with a mineral taste. Dad taught me what became an important lesson for my life. He said, "Robin, we have to take care of the land because the land takes care of us. What we take from this land we must always give back." He said the windmills provide water for the livestock and for the land,andwecuthayfromthatland to feed the cattle. Dad explained to me how the windmills provide electricity for our hay barn. He said we could convert water to electricity by explaining that when the wind blows, it turns the blades of the windmill gears, causing the pump to pull water from the ground. Then Dad turned on a big generator that converted the water to electricity and ultimately powered lights to the barn. My dad, a kind and honorable man, taught me many valuable lessons as I was growing up, lessons that I use as a financial expert today. Webster's Dictionary defines "convert" as: To change into a differentformsothatitcanbeused in a different way. The principles of converting cash to income also hold true. Let me ask you this: When you retire, how will you convert the cash from your IRAs, 401ks, TSPs, etc. into income? Let's say you have a 401k and you retire.Howwillyougetpaid?Will someone send you a monthly check? Not likely. You have to convert the cash that you have saved during your working years into income for retirement, right? Fixed indexed annuities (FIAs), with lifetime income riders, are designed for both retirees and pre- retirees to convert cash into guaranteed lifetime income. FIAs are a safe place to preserve and grow your retirement savings. Your principal, bonus and interest arecontractuallyguaranteednotto lose due to downturns in the markets. Are you ready to purchase a lifetime income that you don't have today? Find a financial professional to help you, a professional you trust who has your best interests at heart. Remember, just because someone has an insurance license doesn't mean he or she has the necessary skills). If you are uncertain or uneasy about this person, get a second opinion. If you are looking for a retirement income stream, one that you and your spouse can never outlive, find out if an FIA with a lifetime incomeriderisrightforyou.Itjust may be the windmill you need to power your retirement! bigstatefinancial.com Robin Hoppes Published on Fortune.com May 2014
- 4. OfficesinTampaFloridaandSanAntonioTexas Tampa#813-230-6518,tim@bigstatefinancial.com SanAntonio#210-373-6000,Robin@bigstatefinancial.com www.timhoppes.comwww.BigStateFinancial.com Big State Financial 3853Northdale Blvd. Ste. 388 Tampa, FL 33624-1861 Retirement Planning , for today and tomorrow! May/June Update Inhonorofourparents,Ihopeyou rememberedMother'sDayonMay10th andthatyouwillrememberFather's daycominguponJune21st. TheFifthCommandmentsaystohonor yourMotherandFather