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Social Security can be confusing because it involves so many factors like earnings history, age of retirement, and different benefit types. It's important to understand the system to make informed decisions about your benefits.

 Here's a breakdown of common areas of confusion and how to navigate them: 

• Social Security vs. Supplemental Security Income (SSI): 
  • Social Security is for those who have worked and paid Social Security taxes
  • SSI is for those with limited income and resources who may have disabilities or be elderly 
• Retirement Benefits:
  • You can start receiving retirement benefits as early as age 62
  •  Will face a reduction in monthly payments if you retire before your FRA "full retirement age" (which is 67 for those born in 1960 or later) 

•  Disability Benefits:
  • If you become unable to work due to a disability, you may be eligible for Social Security Disability Insurance (SSDI) if you have a SS record 
• Spousal or Ex-Spousal Benefits:
  • You may be eligible if you're married or divorced to someone who qualifies for and is taking SS retirement
• Survivor Benefits:
  • If you are a spouse or child of someone who has died, you may be eligible for survivor benefits if the deceased person had a SS record 

• Earnings History:
  • Your Social Security benefits are based on your average lifetime earnings, with the highest 35 years of earnings being used
• Age at Retirement:
  • The age you choose to start receiving retirement benefits significantly impacts your monthly payment amount 
• Spousal and Survivor Benefits:
  • If you are married, your spouse may be eligible for benefits based on your earnings record
• Work Credits:
  • You need a minimum of 40 work credits (10 years of work) to be eligible for Social Security benefits

• Claiming Benefits Too Early:
  • Starting benefits early means you'll receive permanent reduction in payments
• Overlooking the Earnings Limit:
  • If you continue working after you start receiving SS benefits, your earnings may affect your benefit amount.
• Misunderstanding Spousal and Survivor Benefits:
  • It's important to understand how spousal & survivor benefits work and how they might affect your situation.
• Failing to Review Your Earnings Record:
  • Regularly check your SS earnings record to ensure accuracy.

• Consult with a Retirement advisor who is NSSA certified:
  • A NSSA certified (National Social Security Advisor) retirement planner can help you understand your SS options and develop a retirement strategy
• Contact the Social Security Administration (SSA):
  • You can call the SSA at 1-800-772-1213 or visit their website (ssa.gov) to request statements and ask questions
• Use the SSA's online tools:
  • The SSA website offers tools to estimate your Social Security benefits and check your earnings record

By understanding the basics of Social Security and the factors that affect your benefits, you can make informed decisions and plan for your retirement.  If you have not created your own SS portal to get your estimate, visit https://www.ssa.gov/ to get started!

This is a retirement plan for certain public school employees and tax-exempt organizations. These allow employees to defer some of their salary into an individual account. The deferred salary is generally not subject to federal nor state income tax until it is distributed. However, a 403(b) may also offer designated Roth accounts. Salary contributed to a Roth account is taxed currently, but is tax free (including earnings) when distributed.

Eligible employers are a:

• public schools, colleges or universities
• churches
• charitable entities tax-exempt under Section 501(c)(3) of the Internal Revenue Code

• Flexibility with contributions
• Max contributions $23,500 annually
  • Employees 50 and older can contribute an additional $7,500
  • Ages 60-63 an additional $11,250 (if their plan allows)
• Investment options are limited to those chosen by the employer
• Optional loans and hardship distributions add flexibility for employees

A 457(b) deferred compensation plan is a retirement savings plan with tax advantages. This type of plan is primarily available to employees of state and local governments, as well as some non-profit organizations. With a 457(b), a portion of the employee’s paycheck is deferred from current taxes and invested for future retirement withdrawal.

• Government employees at the state and local level
• tax-exempt organizations
• some public school teachers and college professors

• Max contribution is $23,500 annually
  • Ages 50 and older, you can contribute an additional $7,500 for a total of $31,000
  • Ages 60-63 limit is $11,250
• Tax benefits: 
  • contributions are made pre-tax, which lowers your current taxable income
  • earnings grow tax-deferred until withdrawal in retirement
• Withdrawal flexibility 
  • unlike some retirement plans, these generally allow penalty-free withdrawals before age 59.5 if you leave your job
• No employer match—most 457 plans do not offer an employer match contribution

An income annuity is a policy contract that is designed to pay out a guaranteed income payment for life, similar to a pension. It can start paying income in several ways: 

1. As soon as the policy is initiated 

2. When or if the annuitant decides to activate the income

3. Most commonly 1-12 months after an income annuity is issued

• These financial products are designed to exchange a lump sum amount for guaranteed periodic cash flow (monthly or annual payments)
• An income, or immediate annuity, generally starts income payments 1-12 months after the premium is paid and may continue for as long as the account owner is living. Spousal annuitants can be added to receive a guaranteed payment for the rest of their lives once the primary annuitant has passed

A growth annuity is a financial product that helps your invested money grow over time, typically used as a retirement vehicle. These are widely used in place of the traditional 401k, 403b, 401a, IRA, ect. Primarily, because of the  guaranteed, projected growth and safety from market loss. It also allows your investment to grow taxed deferred, which can save you money long term.

• A guaranteed income for life 
• Protection of your principal inv
• Major tax benefits—the ability to increase your investment without being taxed immediately.
• Gives annuitants flexibility—allowing the ability to access your money if your circumstances change due to long term care needs

Growth annuities can help you prepare for retirement by: 

• Fighting off the devastation of inflation 
• Decreasi the impact of rising healthcare costs 
• Providing a flexible and guarantincome stream that can't be outlived

An annuity that can both grow and have a guaranteed income stream for life can be extremely beneficial! There are several options in creating a hybrid annuity. Especially for clients that are still working, including part-time, after their official retirement and don't quite need to start taking income yet. They can, in the meantime, grow their retirement accounts, protect the principal, and activate that income in the future when they need it. This is a great strategy to include when optimizing

Initial Coverage Election Period: turning 65

Annual Enrollment Period: October 15-December 7

During this period, you can make any changes to your Medicare plan.

Open Enrollment Period: January 1-March 31

During this period, you can make any changes to your Medicare Advantage plan.

• Original Medicare
  • covers Part A & Part B
  • does not include drug coverage
  • does not include dental, vision, and hearing coverage
• Medicare Supplement (Medigap) 
  • supplements costs not covered by Part A & Part B
  • can see any provider that accepts Medicare
  • not restricted by a network 
  • additional premium each month
  • does not include drug coverage nor dental, vision, and hearing coverage
• Medicare Advantage (Part C)
  • Covers Part A and Part B
  • Includes dental, vision, and hearing coverage
  • Includes additional benefits
  • HMP & 

What qualifies? There are many!

Most common:

• Change in zip code
• Change in special needs status
• Gaining/losing Medicaid
• Natural Disasters
• Veterans using the VA or TRICARE
• Placed in a nursing home or hospice care facility 

What is term Life?

• Term life insurance is a type of life insurance that pays out a death benefit to a beneficiary if the insured dies within a specified time period or "term"

How it works: You pay premiums for a set period of time, usually 10–30 years. If you pass away during that time period, your beneficiary receives the death benefit tax free

The 3 main types of term life insurance are:

• Level Term: The death benefit remains the same throughout the  term period specified in the policy
• Renewable Term: The premium increases upon renewal, typically every year (annually renewable) or every 5 years (5 year renewable)
• Decreasing Term: The death benefit decreases over time, usually in one year increments

• Benefits: 
  • Term life insurance is often the most affordable option to get a large amount of insurance coverage, especially if you are younger 
• Renewability: 
  • Some term life insurance policies can be renewed without a medical exam or additional underwriting. However, premiums will be higher based on your current age. 
• Conversion: 
  • Some term life insurance policies can be converted to a permanent life insurance policy (wwithout a medical exam. However, the converted policy will be more expensive. 

What is whole life?

• Whole life insurance is a type of permanent life insurance policy that provides coverage for your entire or "whole" life. Whole life insurance is the most common type of life insurance coverage. 

• Death benefit:
  • A guaranteed payout to your beneficiaries when you pass away. This benefit is usually income tax-free. 
• Cash value:
  • A financial asset that grows over time and can be withdrawn or borrowed from during your lifetime. You can use the cash value if your needs for protection change. 
• Fixed premiums:
  • Your premiums remain the same throughout your plan, unless you want to increase the cash value. 
• Tax benefits:
  • A portion of your premiums goes into a tax-free account that accumulates over time. 

What is universal life?

• Universal life (UL) insurance is a permanent life insurance policy that offers a death benefit and cash value, and is customizable to your needs, in which you can increase or decrease the premiums and/or death benefit at any point in time

The 3 main types of universal life insurance are :

• Indexed Universal Life (IUL):  A life insurance policy that offers a death benefit and a cash value component. The cash value in an IUL policy can earn interest based on the performance of a stock market index, like the S&P 500 or the NASDAQ Composite.

• Variable Universal Life (VUL):  Allows policyholders to invest a portion of their premiums into sub-accounts that are similar to mutual funds. These sub-accounts can vary in risk and return, and can be used to grow the policy's cash value.

• Guaranteed Universal Life (GUL): A type of long-term life insurance that can provide lifetime protection and carries a guaranteed death benefit, fixed premiums, and cash value. However, the cash value is usually much less compared to the other 2 types. Most notably, GUL policies usually have an end date that you choose when you purchase the policy, such as age 95 or 102. 

• Flexibility:
  • You can change your premiums and death benefit amount
  • You can also use your cash value to cover your premium cost
• Cash value:
  • You can build cash value that you can borrow against while you are living The interest rates on these loans are often lower than personal loans. However, unpaid loans will reduce your death benefit. 
• Cost:
  • UL can cost less than whole life coverage because you can raise or lower your premiums.
• Coverage:
  • ULs cover you for an extended time, often longer than a term life