Many do not know that at your normal retirement age (66 to 67 for many to-be-retirees) you can make as much money as you want without any reduction in benefits. The old limits were removed. However...
At age 62, in 2008, the limit is $13,560 of earned income allowed before the $1 for $2 penalty hits you. So be prepared if you plan to take your social security benefit early and still work. And, yes, you can take it early at age 62. This is something else many do not understand but it is a 20-30% reduction in monthly amount depending on when you were born.
In the year you reach your full retirement age (know this number, it is on your last social security statement that arrives annually a couple of months before your birthday), the "penalty" shrinks to $1 in benefits being deducted for each $3 you earn above a higher limit of $36,120 in 2008.
An interesting bit of knowledge is that if you decide to take your social security early and accept the reduced benefit, you could change your mind later as long as you repay the benefits received. This may sound silly but it might be a very effective strategy because, in effect, you are buying a higher monthly annuity payment. There are other strategies, too, worth exploring with a financial planner. Go to the http://www.ssa.gov/ site for everything you ever wanted to know about these features of the social security system.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.