10 Biggest Retirement Mistakes: #4. Mishandling Company Stock

Rolling your 401(k) into an IRA is generally a good idea, but it may not be the right decision when you own highly appreciated company stock inside your plan.

A special rule for what is called “net unrealized appreciation” allows you to move your employer’s stock out of your 401(k) when you retire or leave your job.

You must follow the rules precisely to take advantage of lower capital gains rates, rather than ordinary income taxes, when you sell the stock.

10 Biggest Retirement Mistakes: #5. Not Coordinating Benefits With Your Spouse

For most married couples, the main goal should be to 
maximize Social Security benefits for the surviving spouse, who is likely to be the wife.

That means the main breadwinner, typically the husband, should delay collecting Social Security retirement benefits until age 70 when they will be worth the most and will pass to the wife as a survivor benefit if he dies first.

Oops! Newest Social Security Retirees Will Outlive Official Trust Fund...

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

On Friday, January 25, the S&P 500 closed @ 1503, and that was...
  
    +7.4% ABOVE its 12-Month moving average which stood @ 1399.
    +7.4% ABOVE its 40-Week moving average which stood @ 1400.
    +4.2% ABOVE its 10-Week moving average which stood @ 1442.


Therefore, the INTERMEDIATE-Term trend IS BULLISH 
and the LONG-Term trend is UP.

Dow Industrials Heading for A Test of 2007 High...

It's The Spending, Not The Taxation...

Greece Plunges Into A Deep Recession...

Bullish Omen!: Housing Starts On The Upswing...

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

On Friday, January 18, the S&P 500 closed @ 1486, and that was...
  
    +6.4% ABOVE its 12-Month moving average which stood @ 1396.
    +6.4% ABOVE its 40-Week moving average which stood @ 1397.
    +4.1% ABOVE its 10-Week moving average which stood @ 1427.


Therefore, the INTERMEDIATE-Term trend IS BULLISH 
and the LONG-Term trend is UP.

Cartoon of The Day: Who Are Les Miserables? Our Children and Grandchildren...

10 Ways To Increase Your Social Security Income: #1. Delay Claiming

#1. Delay Claiming

Workers can begin receiving payments at age 62. But payouts are reduced unless you wait until your full retirement age, typically age 66 or 67. Benefits further increase for each year you delay claiming up until age 70.

10 Ways To Increase Your Social Security Income: #2. Utilize Spousal Payments

 #2. Utilize Spousal Payments 

Spouses are entitled to a Social Security benefit of up to 50% of the higher earning spouse’s check if that amount is higher than the payout based on his or her own working record. Spousal payments are reduced for early claiming.

10 Ways To Increase Your Social Security Income: #3. Don't Earn Too Much

#3. Don't Earn Too Much 

If you collect Social Security before your full retirement age and earn more than $14,160 (or $37,680 the year you reach your full retirement age) in 2013, a portion or all of your benefit may be temporarily withheld.

There is no penalty for working after your full retirement age.

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

On Friday, January 11, the S&P 500 closed @ 1472, and that was...
  
    +5.6% ABOVE its 12-Month moving average which stood @ 1394.
    +5.6% ABOVE its 40-Week moving average which stood @ 1394.
    +3.9% ABOVE its 10-Week moving average which stood @ 1417.


Therefore, the INTERMEDIATE-Term trend IS BULLISH 
and the LONG-Term trend is UP.

10 Ways To Increase Your Social Security Income: #4. Claim Twice!

#4. Claim Twice!

Dual-earner couples who have reached their full retirement age can claim spousal payments and file again later based on their own work record, which will then be higher because they accrued additional delayed retirement credits.

10 Ways To Increase Your Social Security Income: #5. Minimize Social Security Income Taxes

#5. Minimize Social Security Income Taxes 

About 33% of Social Security recipients pay income taxes on up to 85% of their benefit because the sum of their adjusted gross income, nontaxable interest, and half of their Social Security benefit is more than $25,000 ($32,000 for couples).

10 Ways To Increase Your Social Security Income: #6. Sign Up for Direct Deposit

 #6. Sign Up for Direct Deposit 

Get your payments directly deposited into a bank or credit union account to get your money faster and avoid the fees associated with the Direct Express Debit MasterCard.

Paper checks are no longer an option for new retirees as of May 1, 2011.

10 Ways To Increase Your Social Security Income: #7. Include Family

#7. Include Family

Social Security recipients who have children under age 18 or who are disabled may be eligible for higher Social Security payments for the child or a spouse caring for the child, up to certain annual limits.

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

 On Friday, January 4, the S&P 500 closed @ 1466, and that was...
  
    +5.3% ABOVE its 12-Month moving average which stood @ 1393.
    +5.3% ABOVE its 40-Week moving average which stood @ 1392.
    +3.9% ABOVE its 10-Week moving average which stood @ 1411.


Therefore, the INTERMEDIATE-Term trend IS Moderately BULLISH 
and the LONG-Term trend is UP.

10 Ways To Increase Your Social Security Income: #8. Claim On An Ex-Spouse's Record

 

#8. Claim On An Ex-Spouse's Record

A former spouse may be eligible for Social Security payments if the marriage lasted at least 10 years.

The divorced spouse must be age 62 or older and unmarried. An ex-spouse claiming has no impact on the worker’s payout.

10 Ways To Increase Your Social Security Income: #9. Boost The Survivor's Benefit

#9. Boost The Survivor's Benefit

Widows and widowers are entitled to the higher earner’s full retirement benefit.

A worker can increase the monthly survivor’s benefit his or her surviving spouse will receive by waiting to sign up for Social Security until age 70.

10 Ways To Increase Your Social Security Income: #10. Maximize Paychecks Now

#10. Maximize Paychecks Now 

Social Security benefits are calculated based on your 35 highest earning years in the workforce.

Boosting your income now by negotiating for a raise or taking a second job will generally result in a higher payout in retirement.

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

 On Friday, December 28, the S&P 500 closed @ 1402, and that was...
  
    +1.9% ABOVE its 12-Month moving average which stood @ 1376.
    +0.9% ABOVE its 40-Week moving average which stood @ 1390.
    -0.3% BELOW its 10-Week moving average which stood @ 1406.


Therefore, the INTERMEDIATE-Term trend IS NEUTRAL 
and the LONG-Term trend is UP.

Under President Obama, This Anemic Economic Recovery Has Been Well Below Average...

Who's Not Paying Their Fair Share?: The Top 3% Pay A Whopping 52% of All Federal Income Tax!

For tax year 2010, 142.9 million tax returns were filed in the USA.

3% of those returns reported Adjusted Gross Income (AGI) of at least $200,000.

Those high income Americans received 28% of all AGI in the country and paid 52% of all federal income tax for the year at an effective tax rate of 22%. 

Source: Internal Revenue Service

Greece: Unemployment Soars As Jobs Disappear...

Vantage Point UPDATE: Intermediate-Term and Long-Term Trend Analysis

 On Friday, December 21, the S&P 500 closed @ 1430, and that was...
  
    +3.6% ABOVE its 12-Month moving average which stood @ 1381.
    +2.9% ABOVE its 40-Week moving average which stood @ 1390.
    +1.5% ABOVE its 10-Week moving average which stood @ 1409.


Therefore, the INTERMEDIATE-Term trend IS NEUTRAL 
and the LONG-Term trend is UP.

Under President Obama, Income Inequality Grows...

College Tuition: Up +300% Since 1990...

5 Retirement Mistakes to Avoid....

1. Thinking only in terms of “me” not “we.”

At the death of the first spouse, the surviving spouse will lose a Social Security benefit, see a possible reduction in a pension, and likely an increase in tax brackets when going from joint returns to an individual return. Eighty percent of all men die married, while 80% of all women die single. Additionally, 75% of all women living in poverty were not poor before they were widowed.  Early income and retirement planning decisions should be made with survivor benefits in mind to ensure that both husband and wife are protected.
 
2. Not planning around taxes. 

Taxes saved today or in the future is additional money earned. Tax efficient withdrawal and investment strategies will enable you to withdrawal less assets and achieve a similar net income result, enabling unused assets to accumulate longer untouched. Which accounts you elect to withdraw first and the timing of those withdrawals (called the sequence of withdrawals), could make a tremendous difference in the amount of overall net income planning. While many consumers have been told to continue to defer their retirement assets as long as possible, doing so can create a tax planning “time bomb,” once required minimum distributions are triggered or when passing to beneficiaries. Advanced analysis of tax efficient sequence of withdrawals protect from rising tax rates in the future. Consider a proactive approach which may include paying more tax today at lower tax rates to avoid the erosion effects of rising tax rates in the future. Learn how Social Security payments are taxed and how to avoid “torpedo taxes” which can cause “stealth taxes,” where additional income is taxed at higher rates than an individual’s tax bracket. Keep tax planning in your overall financial planning.

3. Not planning for longevity.

Longevity risk, or living longer than expected, should be one of the biggest concerns of a family entering retirement. Statistically, married couples age 65 and older should be planning for the probability that at least one of them will celebrate their 92nd birthday. Failing to plan for the effects of inflation on a retirement income and investment portfolio can be disastrous. Be cautious when electing fixed payment lifetime income streams that do not adjust for inflation or by not allowing for enough growth in your overall portfolio by leaving too much in CDs.   

4. Failure to shift from growth mode to distribution mode.

Many of us have a fear of change, but it's important to undergo a paradigm shift in your investment risk psyche upon entering retirement. Investors should switch to an income distribution and protection philosophy, from "saving for future retirement" mode. During the accumulation years, market volatility creates dollar cost averaging opportunities, and risk offers reward for an investor who has time on their side for recovery. A transition to the distribution phase should take a more protective posture, since risk, reverse dollar cost averaging and volatility can create accelerated depletions of assets. Encourage your clients to make a psychological shift from "return on their money" to "return from their money."  This oftentimes involves using less volatile investment instruments and a focus on more consistent returns.

5. Ignoring health care expense planning. 

Retirees should consider reviewing their Medicare plans the same that they review their portfolios, on an annual basis.  Prescriptions change, plans change, and an annual analysis of which is the best plan for them can create valuable premium savings. Also, consider the impact that a chronic illness or long-term care expenses would have on your portfolio. The national average cost of nursing home care is $200 per day or $6,000 per month. Not having a plan in place that can provide the necessary income to replace these costs can prove disastrous.