9 Ways to Retire with More Money

Increase your Social Security benefits
The new book, “Get What's Yours, The Secrets to Maximizing Out Your Social Security”  helps you decide when and how to collect retiree, spousal, survivor, divorcee, parent, and child benefits to achieve the highest lifetime benefits.  According to its authors following the suggestions in this book could earn you as much as an additional $50,000 in benefits.

Two of most important suggestions this book provides which are not generally known are:

1.  A good strategy for married couples is for one spouse to file for the retirement benefit at 62 and then immediately suspend it. The other spouse files for a spousal benefit and can collect half of the other’s retirement benefit through age 70. Spousal benefits also apply to any couple married for at least 10 years, including divorcees.

2.  Depending on circumstances, it might be better to file at 62, suspend at 66, and then refile at 70 if dependents need money more quickly.  The goal is to maximize your longer-term payout so you don’t run out of money.

Check this site for additional information on Social Security  which includes

 - When should you receive Social Security?  
 -  How to apply for Social Security?
 -  Contact information for the Social Security Administration
 -  Information on working and benefits
 -  Information on what you should do if a Spouse Dies

Continue working longer prior to retirement
The obvious advantages are more money can be saved for your retirement years and you will not have to dip into retirement savings until you finish working. Working longer also makes it easier to postpone taking Social Security making your monthly benefits larger. Check out this article for more information:

The best reason to delay retirement http://www.marketwatch.com/story/the-best-reason-to-delay-retirement-2014-01-29

Continue working after you “retire”
Most jobs available to retirees are part-time, temporary, project based or seasonal and money earned from these jobs, when added to other income, helps your savings last longer and perhaps allow a bit more for a better lifestyle during retirement.

See this site for information on part-time, temporary, project based and seasonal jobs

We have provided several articles (below) for more information

Why so many retirees work in retirement

How to find work after 50

14 Tips and resources for winding work in retirement

Save/invest more prior to retiring and payoff most debt
All financial advisers suggest this course of action and since people are living a great deal longer it is necessary to do this if you hope to have enough money late in life. The Department of Labor site http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html includes 10 ways to prepare for retirement:

                   1.     Start saving, keep saving, and stick to your goals

                   2.     Know your retirement needs

                   3.     Contribute to your employer’s retirement savings plan

                   4.     Learn about your employer's pension plan

                   5.     Consider basic investment principles

                   6.     Don't touch your retirement savings

                   7.     Ask your employer to start a plan

                   8.     Put money into an Individual Retirement Account

                   9.     Find out about your Social Security benefits

                   10.  Ask Questions

Check out the Bankrate retirement shortfall calculator to help you determine your projected shortfall or surplus at retirement You can enter your retirement savings, monthly contributions, years before retirement, projected years you will be retired, projected annual retirement spending, and expected inflation rate and find out how long your savings should last.  Shortfall calculator http://www.bankrate.com/calculators/retirement/calculate-retirement-income-money.aspx#ixzz3VzOYqCIi

The Employee Benefits Research Institute provides information on How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: (http://www.ebri.org/pdf/notespdf/EBRI_Notes_03_Mar15_Svngs-HlthCntribs.pdf)

Start a small business after you retire to create revenue

The revenue from starting a small business or becoming a consultant will provide additional income as well tax deductions you may not otherwise be able to take. See  Become a Consultant and Information on starting your own business

Spend less after you retire

On healthcare. Make sure you have the right insurance plan for you and your family.

On your daily expenditures. Audit your phone bills, utility bills, insurance bills, etc. and you are likely to find substantial savings often do to underutilization of the plan(s) you are paying for.

On your place of residence/location/lifestyle, etc. Consider staying in the same location where you have been living as opposed to moving to a more expensive area like Florida, Arizona or California. 

Reduce your taxes

Meet with your accounts to review how to reduce your taxes. They can assist you make tax efficient investments and manage tax advantaged accounts.

If you plan to gift assets there are ways to do so that will accomplish your wishes as well as reduce your taxes. If you wish to provide money to your children or grandchildren there are ways to do so which could lessen your taxes

Take advantage of discounts available to your age group

There are many discounts available to boomers and seniors. Click any of the links below to see lists in each category

Travel

Retail/Apparel

Restaurants

Grocery

Gas, Phones, Services, etc.

which can save you thousands of dollars a year.

Scams reduce the assets of retirees and people planning their retirement

Identity theft, fraud and scams against boomers, retirees and older Americans are much more common than against younger Americans.  These articles provide good information on scams, frauds, identity thefts and how to recognize and avoid them.

How to identify and protect yourself from scams
Avoiding scams—and getting help if you’re scammed

Improve Your Memory

With These 9 Common-Sense Techniques from John's Hopkins.

The minor memory lapses that occur with age-associated memory impairment can’t be eliminated completely; however, a number of common-sense strategies can improve overall memory at any age. The keys are to stay focused, active and alert.

Memory Tip 1:
Place commonly lost items in a designated spot. If you’re prone to losing certain items, such as keys or eyeglasses, pick a spot and always put the items there when you are not using them.

Memory Tip 2:
Write things down. If you have trouble remembering phone numbers or appointments, write them down and place the list in a conspicuous spot. Making a daily “to do” list will remind you of important tasks and obligations.

Memory Tip 3:
Say words out loud. Saying “I’ve turned off the stove” after doing so will give you an extra verbal reminder when you later try to recall whether the stove is still on. Incorporating people’s names into the conversation immediately after you have met them helps, too.

Memory Tip 4:
Use memory aids. Use a pocket notepad, cell phone, wristwatch alarm, voice recorder or other aids to help remember what you need to do or to keep track of information.

Memory Tip 5:
Use visual images. When learning new information, such as a person’s name, create a visual image in your mind to make the information more vivid and, therefore, more memorable.

Memory Tip 6:
Group items using mnemonics. A mnemonic is any technique used to help you remember. For example, when memorizing lists, names, addresses and so on, try grouping them as an acronym. Another mnemonic technique is an acrostic. Acrostics use the first letter of each item to create new words that form a sentence or phrase. Using rhymes or creating stories that connect each element to be remembered is also helpful.

Memory Tip 7:
Concentrate and relax. Many environmental stimuli compete for your attention at any given time. To remember something, concentrate on the items to be remembered. Pay close attention to new information and try to avoid or block out distractions. Anxiety and stress can inhibit recall. Learning a relaxation technique, such as deep breathing or muscle-relaxing exercises, may help.

Memory Tip 8:
Get plenty of sleep. During sleep the brain consolidates and firms up newly acquired information. Studies indicate that people are better at remembering recently learned information the next day if they have had a good night’s sleep.

Memory Tip 9:
Rule out other causes of memory loss. If you suspect that you are having memory difficulties, consult your doctor. Some medical conditions can cause memory problems that can be corrected, including depression, hearing or vision loss, thyroid dysfunction, use of certain medications, vitamin deficiencies and stress.

How to Start Your Own Business

Starting your own business can be a challenging but rewarding endeavor. Planning for success is one of the best ways to ensure your efforts will be profitable. Data from the Kauffman Foundation shows the highest rate of entrepreneurship in America has shifted to the 55–64 age group, with people over 55 almost twice as likely to found successful companies as those between 20 and 34.

Although many older Americans have started businesses with comparatively little capital investment it is important to recognize that most businesses will not generate much revenue for some time and you must plan to have enough cash on hand to pay for your living expenses in addition to possibly having to put more money into your start up.

Before starting your own business consider...

1. Talking with your accountant to help you set up a bookkeeping system and other accounting necessities. Do not attempt to do this on your own as the time you will have to spend later converting your systems to workable bookkeeping and reporting will be substantial.

2. Writing a business plan that will give you some guidelines and update it regularly as your business develops. Your plan should include cash flow projections and a p&l statement. This plan will also be necessary should you need to borrow moneys.

3. Talking with an attorney to see if you should incorporate as an LLC, corporation, sole proprietorship, partnership or other corporate entity like offshore companies.

4. Reviewing local laws for home operated businesses if you plan to operate from home.

5. Talking with an insurance professional to see what kind of coverage, if any, you may need in your new business.

6. Picking a name for your company and check to make sure it is available and that the URL is available and if so register it immediately. Remember the first impression you will make on potential clients or customers is your business name.

7. Securing adequate start-up capital in advance of starting your business. Your business plan should provide the information necessary to secure these funds.

8. Acquiring the appropriate licenses to operate your business.

For a list of small businesses started with little or no capital investment click here (link to http://www.retiredbrains.com/employment-assistance/start-your-own-business/suggestions-from-readers

For information on franchises and their costs click here (link to http://www.retiredbrains.com/employment-assistance/start-your-own-business/franchises

Save as Much as $50,000... When You Sign up for Social Security

The new book, Get What's Yours, The Secrets to Maximizing Out Your Social Security helps you decide when and how to collect retiree, spousal, survivor, divorcee, parent, and child benefits to achieve the highest lifetime benefits.  It is a must read as following the suggestions in this book could earn you as much as an additional $50,000 in benefits.

Some of the most important information this book provides which is not generally known includes:

• It’s best to wait until age 70 to start collecting retirement benefits. About half of Americans choose to collect at 62 because they have no other savings, but the payout is 76 percent higher at 70 than it is at 62. Less than 2 percent wait until 70. Waiting is a good idea for low income retirees as well, because the benefits are a higher percentage of earned income.
• A good strategy for married couples is for one spouse to file for the retirement benefit at 62 and then immediately suspend it. The other spouse files for a spousal benefit and can collect half of the others retirement benefit through age 70. Spousal benefits also apply to any couple married for at least 10 years, including divorcees.
• Depending on circumstances, it might be better to file at 62, suspend at 66, and then refile at 70 if dependents need money more quickly. The goal is to maximize your longer-term payout so you don’t run out of money.
• Is it fair to try and game the system like this? Yes. More knowledge creates more fairness. There are hundreds of thousands of social security rules, and it’s not fair if only those who have the resources to understand them get maximum benefits.
• Social Security recipients will receive 1.7 percent bigger payments in 2015, due to the annual cost-of-living adjustment. Most workers will continue to pay 6.2 percent of their earnings into the Social Security system, but the maximum taxable earnings amount will increase in 2015 year from $117,000 in 2014 to $118,500 in 2015.
  
  For more information on Social Security click here

Increase Your Retirement Income

Many who are planning their retirement or who have already retired won't be able to live the lifestyle they had hoped for during these years. It’s important to look at ways to increase retirement income in addition to saving and investing more.

Because of the substantially longer lifespan of today’s retirees and the anticipated increased expenditures on health care over the coming years, savings and investments are more likely to be diminished or exhausted as you near the end of your retirement years. This makes planning to increase retirement income all the more important.

The suggestions covered in this article represent areas you may very well be aware of, but hopefully provide additional information and resources making your planning and decision processes a bit easier.

Annuities

Annuities can be considered a form of "reverse insurance" that create income you can use later in life or after you’re retired. They’ve been referred to as a "private pension" that you can purchase to create regular income after you retire.

Annuities are tax-deferred mutual-fund-like investments. There are no annual contribution limits, contributions can be made in a lump sum or over time, and the payouts can be immediate or deferred.

Before purchasing an annuity, it’s important that you carefully read your annuity contract before investing. Also, learn the terminology. Don’t let annuity jargon bait you into a policy you don’t want.

Reverse mortgages

Reverse mortgages convert equity in your home into income. It is similar to a home loan but instead of making payments to the lender, the lender makes payments to you.

According to the Federal Trade Commission: If you're 62 or older — and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for health-care expenses — you can consider a reverse mortgage. It's a product that allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills.

There are three types of reverse mortgages:

1. Single-purpose reverse mortgages, offered by some state and local government agencies and nonprofit organizations.
2. Federally-insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs) and backed by HUD. Private loans that are backed by the companies that develop them.
3.  Structured settlementsStructured settlements involve accelerating/selling the collection of moneys owed [such as a damages awards from a personal injury tort claim] into a discounted lump sum payment. As an example if you're injured in an accident and receive a $500,000 settlement from the insurance company, it's tax free. If you then invest this money the earnings you receive are taxable. If you take the money as structured settlement instead of cash, you will receive payments over a period of years or your lifetime (your choice) and each payment is tax free. A structured settlement actually converts your after-tax earnings into a tax free return.

Post retirement work

Post retirement work is a job in which you receive compensation as an employee or self-employed individual.

In February, an informal poll of roughly 400 RetiredBrains visitors found that 14% had started their own businesses and 37% were working full time, part-time, temporary, seasonal or some combination. Click here for job seeker information

Note that there may be an impact on Social Security benefits — both income and health.

Delaying Social Security benefits

If your benefits at full retirement age are $1,000 a month, you’ll see that figure fall to $750 if you start collecting at 62 and leap to $1,320 if you hold off till age 70, according to Social Security.

For a breakdown of how benefits increase from year to year from U.S. News & World Report’s “Your Guide to Social Security.” Click here.