Real Estate News with Terri Taydus, GRI, CNA

Thankful Benefits!

November 26th, 2014 8:20 PM by Taydus Taydus

As many of us enter our "Golden Years" we find that we may have questions regarding our future real estate plans.  "Do I downsize? Do I stay in my current home? How will I financially manage my real estate investments?" 

Financial concerns are all too common and trying to navigate our Social Security benefits can be confusing.

Here is a wonderful article written by Joe Taydus of Mutual Security Mortgage here in Boulder:

How to Best Utilize Social Security Benefits


The first thing that we need to do is to give thanks that we are alive and well and in a position to consider our options for receiving Social Security benefits.  

We also need to give special thanks for living in a part of the Country where people eat healthier and live healthier life styles so that we can live longer and maintain a better quality of life.  

So when can you retire and receive Social Security? The answer is age 62 for early retirement. Over 56 million people receive Social Security today and 74% of those applying elect to start receiving benefits at 62.

So what is your actual retirement age? It depends on when you were born. If you were born between 1943 and 1954 your retirement age is 66 years old. For each subsequent year you add 2 months to the retirement date until you reach 1960 and for those individuals and everyone born since the retirement age is 67. 

So the question is that if you are able to receive benefits at the age of 62 why would you wait until a later date to start receiving those benefits? The answer is that if you elect to start receiving benefits at the age of 62 you get 25 -30% less than if you waited until the age of 66.

Many of you may be asking what is the maximum benefit.  The answer is $2,642.00 per month.

So what is the breakeven point? The answer is that you generally reach the breakeven age about 12 years from your full retirement age or 78 for the person that reaches retirement at age 66.

Another consideration is that if your spouse is younger than you need to think about their life expectancy as they will receive spousal benefits for as long as they live.

If you continue to work after your early retirement your benefit is further reduced by the amount that you earn. However, the SSA (Social Security Administration) recalculates your benefit when you reach full retirement and omits the months in which your benefits were reduced.

If you plan on living a long life than you also have the option of deferring your benefits until the age of 70. The strategy to wait until you reach age 70 has been compared to getting an annuity from Social Security. For each year that you defer Social Security you increase your monthly benefit by 8% or a total of 32% more if you wait until age 70 to start receiving benefits.

How does Social Security determine how much your benefit will be each month? The SSA starts by calculating your average lifetime earnings. The lifetime earnings are calculated by taking the 35 years in which you made the most income. You should take the time and set up an account on the SSA website at:  

In addition to setting up your own account and looking at your historic earnings you can also use the Retirement Estimator to get an idea of the benefit that you will receive. Your statement contains a detailed record of your earnings, as well as estimates of retirement, survivor's and disability benefits.

Even if you decide to defer your Social Security benefits you still must sign up for Medicare at the age of 65.

I do not profess to be an expert in anyway and suggest that you speak with a financial planner before you reach the age of 62. There are many different strategies to consider including "File and Suspend" and "Restricted Application" that I will address in a future newsletter as I am approaching that magic age of 62 and doing research for my own personal situation.  

Joe has two additional pieces of information regarding this Social Security data that he would like to share with you.  Please contact Joe at (303) 443-5575 or if you have any questions, or if you would like for him to email you the info.

To all of my readers near and far, may you have a wonderful Thanksgiving!
Posted by Taydus Taydus on November 26th, 2014 8:20 PM

Thank you for sharing my article. I take the time to find interesting topics, I do the research and personally write the article. I am by no means an expert but I provoke thought and hopefully help people make smart financial decisions.
Posted by Joe Taydus on November 27th, 2014 11:32 AM


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