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Social Security

Thursday’s need-to-know money news

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avoid-pitfallsToday’s top story: Retirement planning pitfalls you need to avoid. Also in the news: 2014 scariest credit cards, protecting yourself against credit card hacks, and three proposed changes to Social Security.

The Five Scariest Retirement Planning Pitfalls
Try to swing right over these.

2014’s scariest credit cards
How terrifying is a 36% interest rate?

7 Ways To Protect Against Credit Card Hacks
You can’t afford not to protect yourself.

Congress Proposes Three Changes To Social Security That Make Sense
For a change.

5 Things You Own That Cost More Than $500 a Gallon
You’ll never look at eye drops the same way again.

Q&A: Social Security spousal benefits and divorce

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Dear Liz: My fiancé was married to a wealthy woman for over 10 years. Will he lose his opportunity to use her earnings record as the basis for his Social Security retirement benefits if we get married?

Answer: The short answer is yes. Spousal benefits for divorced people are available only to those who remain unmarried. Many people confuse spousal benefits with survivors benefits. Survivors benefits for widows, widowers and divorced spouses of the deceased can continue after the recipient remarries, but only if the remarriage occurs after age 60.
You shouldn’t assume that your fiancé’s spousal benefits necessarily will be larger than his own benefit. His ex could have been wealthy without being a high earner. Even if she did, 100% of his own benefit could be worth more than 50% of hers. To find out for sure, he needs to contact the Social Security Administration.

Thursday’s need-to-know money news

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imagesToday’s top story: How to tackle your financial demons this Halloween. Also in the news: What to keep an eye on during open enrollment, what next year’s cost of living increase will be, and why your tax refund check could be later than usual.

5 Financial Fears to Confront and Conquer This Halloween
Time to put your tough guy mask on.

What to watch for during open enrollment
Keep an eye out for plan changes.

Social Security benefits get another tiny raise
An average of $20.00 per recipient.

IRS Chief Warns of Possible Tax-Refund Delays
Your refund may be a bit late this year.

How Chess Players Can Win at Personal Finance
Thinking several moves ahead.

Tuesday’s need-to-know money news

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321562-data-breachesToday’s top story: Yet another data breach hits a major retailer. Also in the news: Five costly Social Security mistakes, which tax breaks will be making a comeback in 2015, and why you should still save money even if you’re in debt.

The Kmart Data Breach: What You Need to Do
Here we go again.

Five Costly Social Security Mistakes
Avoid these at all costs.

Will Your Favorite Tax Break Be Restored?
The clock is ticking on restoration for 2015.

Why You Should Still Save When in Debt
Emergency funds are essential no matter how much you owe.

Tips for Giving Money to Needy Family Members
Making the difficult decision to say yes or no.

Q&A: Social Security spousal benefits

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Dear Liz: I am 13 years older than my wife. Is it possible for me to receive Social Security spousal benefits based on her earnings when I reach full retirement at age 66? I’d like to shift to my benefit when it reaches its maximum at age 70. If I can do this, what impact, if any, would there be on the benefits she ultimately receives?

Answer: Spousal benefits wouldn’t reduce her checks, but she has to be old enough to qualify for Social Security for you to get these benefits. Given your age gap, waiting for that day probably isn’t an optimal solution.

On the other hand, she could file for spousal benefits when she reaches her own full retirement age (which will be somewhere between 66 and 67, as the full retirement age is pushed back). That would give her own benefit a chance to grow, and she could switch to that amount if it’s larger at age 70. If she starts benefits before full retirement age, she would lose the option to switch.

AARP’s free Social Security calculator can help you figure out the claiming strategy that makes the most sense for your situation.

News you can use for retirement

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seniorslaptopReuters news service has posted its “Retirement Roadmap 2014,” a collection of good advice on topics that don’t get as much attention as they should. My favorite of the bunch is Beth Pinsker’s piece on choosing a rehab facility after surgery, either for yourself or a parent. It’s not a sexy topic, but if you’ve ever been in this situation you realize how little information is out there to help you choose well. Another important topic is choosing a new Medicare plan, since open enrollment is coming up and most people just stick with what they have–not realizing they’re paying more than they should.  This would be a great article to pass along to anyone you know who’s 65 or over.

And then, for fun, read about a couple who sold their house to travel the world…and dream a little.

Here are the links you’ll need:

Video: Guide to Healthcare Costs
From Medicare to long-term care to health savings accounts. We explore the options – and the possibilities – in episode one of our 12-part series.

Stern Advice: Should you tap your 401(k)to buy a house?

Why it pays to pore over your Medicare drug plan – every year

How to choose the best rehab facility after a hospital stay

It happens: Seniors with student debt – and smaller Social Security checks

Extreme retirement abroad: How one footloose couple sees the world