Schild_Pension_Wöhlerstrasse_1

Federal employee pensions and Social Security confusion

There can be confusion about Federal Employees and Social Security about CSRS, FERS, and something called “CSRS offset.” Let’s see how these federal retirement plans interact with Social Security. The Civil Service Retirement System (CSRS) was enacted in 1920 to give federal employees pension benefits at retirement. When the Social Security Act was passed in 1935, […]

Read full story Comments { 0 }
Dad and child

When does the family maximum apply to Social Security?

Social Security does have a maximum payout called the Family Maximum. It may apply to families who are retired, family survivors, and families of a disabled person receiving benefits. There is a formula for the benefit which is complicated. Your Social Security statement specifies what the maximum benefit may be. The values the formula uses […]

Read full story Comments { 1 }
COS_09

How might you replace lost income as a survivor?

Most people don’t realize (or do, but don’t plan for it) that, as a couple, there is lost income from Social Security automatically built in. I discussed examples in a post titled “Social Security and Survivor Considerations.” In this post, the question is … How much money* is needed to replace that lost income? First, the […]

Read full story Comments { 0 }
Model

Just where does the fear of outliving our money come from? Part II.

The foundation to answer where does fear of outliving money come from was laid in yesterdays’ post (Part I). Why is all of this important? The fear of outliving your money also (there’s another reason listed below) comes from behaviors of the present self not considering the impact of present actions on your future self. Chile’s […]

Read full story Comments { 1 }
nov2016jfp_webcvr

Just where does the fear of outliving our money come from? Part I

You see the headline all the time that has something to do with basically these four words: Risk, Outliving, Longevity and Money. The viewpoint that you may outlive your money because of increasing longevity (people are living longer) is based on a faulty assumption! That assumption is built into calculations the profession uses when estimating retirement […]

Read full story Comments { 0 }
Coruja_da_filosofia

College Scorecard website and more

The College Scorecard website, from the U.S. Department of Education, helps high school students, and others, find and compare colleges and universities across the country based of various search characteristics. Results have been revamped to show average cost of attending, graduation rates, and average graduate salaries compared to the national average. Another website is Educate to […]

Read full story Comments { 0 }
256px-3D_Realty_Handshake

Rent vs Buy? What are the considerations?

Before you consider obtaining more debt for a mortgage, how much mortgage should you get? Lenders look at what is called your debt-to-income (DTI) ratio (with target ratio percentages). So what is your DTI ratio? This calculator determines your DTI for you and also discusses the various considerations debt may have. Both sites above help […]

Read full story Comments { 0 }
Coruja_da_filosofia

Paying off Student Debt.

While most people think of college planning this time of year meaning the beginning of college, what are your payment options for student debt once you’ve graduated? Student debt that you have under the present day Federal programs is NOT the same as private debt most people are familiar with. The Consumer Financial Protection Bureau (CFPB) has […]

Read full story Comments { 0 }
1 C Retirement Distribution Process

A Simple Retirement Income Process

Working or retired, the focus of most people is keeping their check book full of money for the monthly expenses they have. While working, the source of the money is obvious … it is from you working. While retired, the source of the money is less obvious … it is from your money working. So […]

Read full story Comments { 1 }
401k bottle

Tapping a 401k – is it age 55 or 59 1/2? Strategy?

Most people are aware of the 59 1/2 age rule to begin withdrawing money from an IRA without tax penalty. Few are aware that age 55 is when this applies to a 401k. What are your options? Caveat (of course): you need to have left your employer – how doesn’t matter – at 55 or […]

Read full story Comments { 0 }