Protect Your Principal

Create an Income Stream You Cannot Outlive

Depending on your time horizon, age, investment sophistication, and investment objectives; an Equity Indexed Annuity might be the right place to position your retirement dollars.

Guarantees of principal protection, income options, and other benefits are made by an Insurance Company.  You have to option to increase interest income by linking your contract to various indexes. We select only the highest rated companies. An annuity can be combined with long term care coverage.


 

Call today to get all the details.

It might be the most important call that you ever make.

719-633-0747

Savers vs Investors

A saver is someone who does not and usually cannot accept risk. This can be because of age or upbringing. This could because of a lack of understanding about investing. This also can be just attributed to fixed pensions and standard of living.

For the last 5 – 6 years the Fed has reduced interest rates to practically zero and also implemented QE1, 2,3. It was just this month that the Fed made an incremental raise in rates. During this period savers were offered extremely and unpalatable interest rates at the safe places, the banks. Savers were told to just tighten their belts, that there was no inflation to worry about. However these figure usually did not include food or energy costs. The savers had no option but place their funds in the stock market. The influx of capital was a prime reason for the increase in the stock market. After a time caution was thrown to the wind and the thought of risk or loss was neatly pushed aside. But what about now?


Call today to learn how to protect your principal

719-633-0747

Long Term Care – A Solution for Families

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In today’s world kids are geographically dispersed. When the problem arises about mom or dad what is to be done? The job of taking care of a parent usually falls on one child. This can create resentment and division in a family.

I have a simple answer in practice. The kids can buy a long term care policy and split the costs among themselves monthly. In my own family my mother in law was aging. The children were all geographically dispersed and had their own children. The kids included included a lawyer, a psychiatrist, and only one child lived in the same town. I suggested that all 8 of us split the cost of a good policy. Don’t get me wrong. The kids are always at her side. The difference is that she has had competent and needed care in the best of places. She is today residing in an assisted living place and she is happy.


Call today to learn more about Long Term Care

719-633-0747

Social Security – Don’t Start Early

Don’t start collecting early because Social Security has money problems

Yes, Social Security has money problems. After benefit payments deplete the program’s Trust Fund, in about 2037, Social Security will only be able to pay about 78¢ on the dollar.

social security, retirement, financial planning, financial advisor colorado springs, social security graph, living graph

 

 

 

 

 

 

 

 

 

The most prominent proposals to cut benefits:

Raise the Full Retirement Age – So those affected would need to claim later, and collect for a shorter period of time, to get the same monthly benefit.

Freeze the purchasing power of monthly benefits at current levels – So if wages continue to rise, Social Security would replace a smaller share of the earnings of those affected.

Cut the benefits of high earners – But protect the benefits of low earners.

None of these proposals give you more if you claim early. If you are affected, you’ll get less no matter when you claim.

*Nearly all proposals to fix Social Security would also protect those age 55 and older.

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Social Security – Should you bet that your life will be short?

Yes, you might get less over your lifetime if you claim later

Monthly benefits are set so that lifetime benefits are much the same no matter when the average person starts to collect Social Security.

– If you’re in poor health and unlikely to live as long as the average person, you’ll probably get less, over your lifetime, the later you claim. (That’s because you probably won’t get the highter monthly benefit long enough to make up for starting later).

But note: many whose health is poor still outlive the “average person”.

Should you bet that your life will be short?

No one really knows how long they will live. But if you health is OK, you’ll probably outlive the average person. If you’re married and both in good health, the odds are even greater that you or your spouse outlives the average person.

 

The cost could be quite high if you lose the bet and live “too long”. If blessed with long life, you might barely scrape by in your 80’s.

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Social Security – You don’t have to claim when you retire

You don’t have to claim when you retire.

Retiring and claiming are two different things. So if you have enough savings when you retire, you have two options.

– Start collecting right away. That’s what most people do.

– Delay and, while you wait, use a portion of your savings to live on. This option will draw down your savings more quickly, but increase the inflation-proof Social Security benefit you’ll get each month for the rest of your life.

Should you delay or claim right away?

No one wants to draw down all their savings. Savings are valuable as a reserve, can be invested in high-yielding assets, or left as an inheritance. But drawing an income out of your savings, over an extended period of time in retirement, can be tricky. So it could make sense to use some of your assets to live on and delay claiming Social Security.

– If you need to assure you and your spouse a higher basic income for the rest of you lives.

– If you will still have enough savings for “rainy day” emergencies.

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Social Security – Working after you Claim

You can continue to work after you claim

However, Social Security is designed to replace your earnings when you no longer work. So if you start to collect benefits and continue work before you reach your Full Retirement Age, some of your benefits might be withheld.

Before the Full Retirement Age, Social Security withholds…

social security, retirement, financial planning, financial advisor colorado springs, social security graph, living graph

 

 

 

 

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Benefits withheld aren’t lost

They’re rolled forward to increase your Social Security monthly benefits after you reach the Full Retirement Age.

For example, say you start to collect benefits at 62, continue to work, and only retire for good at 63. If you earn so much that half your monthly benefits are withheld, at the Full Retirement Age your monthly benefit is raised to what it would be had you started to collect at 62 and a half.

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.

Video – Social Security Planning

In this video, Dale Payne will briefly discuss the importance of getting the facts before you file for Social Security. Planning for retirement can be overwhelming and quite the task at hand. Filing for Social Security isn’t as easy as it used to be. You used to be able to retire on Friday and pickup your check on Monday, but that’s not the case anymore. Social Security can be quite complicated these days. But with the right Financial Advisor, planning for retirement can be an informative and pleasant experience.

Dale Payne is a Financial Advisor in Colorado Springs. He can help you develop a financial plan that’s there to protect your assets and the ones you love. Whether you’re looking for financial planning, life insurance, annuities or just learn new ways to save money, Dale can help bring you peace of mind knowing that you’re finances are in order.

 

Social Security – More Options if You’re Married

social security, retirement, financial planning, financial advisor colorado springsSpecial Rules that raise the benefits of the lower-earning spouse-most often the wife-generally make claiming later an attractive option for married men.

The spousal benefit

If both husband and wife have claimed benefits, each is guaranteed half what the other would get at the Full Retirement Age (whih used to be 65, is now 66, and will be 67).

  • Spousal benefits are reduced up to 35% if claimed before the recipient’s Full Retirement Age.

The survivor benefit

Widow(er)s can keep their own benefit or, if they chose, instead claim a survivor benefit equal to their spouse’s monthly benefit.

  • Survivor benefits are available as early as age 60, or age 50 if disabled, but are reduced up to 28.5% if claimed before the recipient’s Full Retirement Age.
  • Survivor benefits almost always go to widows, as most survivors are women (wives are generally younger than their husbands and live longer) and most wives have lower monthly benefits (they generally ear less and start to collect at younger ages).

Ex-spouses are entitled to these benefits if the marriage lasted 10 years.

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Husbands can get more for their wives

Most wives will outlive their husband, by about 7 years on average, and most widows get their husband’s higher monthly benefit in place of their own.

A husband can increase the monthly benefit his wife gets as his survivor more than 20% if he claims Social Security at 66, no 62, and 60% if he claims at 70.

*Claiming later could be the most effective way a husband can improve his wife’s long-term financial security.

© 2009, by Trustees of Boston College, Center for Retirement Research

 

Social Security – Claim Later Get More

The later you claim, the more you get.

The monthly benefit you earn as a worker is generally based on when you start to collect and the average of the highest 35 years of earnings on which you’ve paid Social Security payroll tax.

social security, retirement, financial planning, financial advisor colorado springs, social security graph, living graph

 

 

 

 

 

 

 

 

 

 

 

75% of original income is need to keep your standard of living.

*As the Full Retirement Age rises to 67, benefits claimed at any age will replace a smaller share of earnings.

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You get even more…

…if working longer raises the average of the highest 35 years of earnings on which you’ve paid Social Security payroll tax. For example, say you were 62 in 2005 and had 31 years of employment, at $40,000 a year.

If you retire and start to collect benefits at 62:

The average of your highest 35 years of earnings = $35,400

your monthly benefit, based on your average earnings and claiming age = $1,030

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If you work four more years, at $40,000 a year, and retire at 66:

The average of your highest 35 years of earnings = $40,000

your monthly benefit, based on your average earnings and claiming age = $1,500

33% for claiming later + 12% more for more earnings = 45% more overall

 

© 2009, by Trustees of Boston College, Center for Retirement Research


Does not represent the Social Security Administration.