According to the 2006 Social Security Administration’s Trustee Report, with no changes to the program, Social Security will be able to pay 100% of benefits until 2040. At that point, the revenues collected would still allow for benefits to be paid at a rate of 74%, again with no changes to the program. Further, the program would additionally be able to afford payment of 70% of benefits through 2080. In reality, the picture is not quite as bleak as is often painted.

Will Social Security provide you with a healthy income to afford a new car each year and two vacations in retirement? No. Accepting the reality of Social Security means that you DO need to be concerned about your retirement. But you don’t need to fear it. Most likely you will survive, but not in a way that comes close to matching your pre-retirement lifestyle. That’s what the Network Marketing industry ought to be stressing…the very real need for most to plan for supplemental retirement income and the development of second or additional income streams.

Also, what this says to me, in regard to my business and our industry, is it indicates that many of my fellow business builders making these statements are “swallow it whole” kinds of people. Imagine a person who eats whatever is placed in front of them, without thinking about it or examining it. They simply choose to swallow it whole, whatever it is. In a similar way, some people accept things they are told as absolute truths, then repeat them to others, without considering the basis for the statement or requiring any confirmation that the information is accurate. These are often people who do not want to examine things and make decisions for themselves. After all, sometimes it is easier to just believe. So the question you should ask yourself is, “Would working with that kind of person suit me and my goals?” The people who bring you this blog take a more direct and sincere approach. We, admittedly, swallow nothing whole just because it is offered to us. We examine everything, to determine if it’s a fit for us, if it makes sense to us, and if we can determine it to be accurate information. If you think working with those kinds of people would be a healthy environment for you, then maybe I have something to talk about. If you have some questions, or comments, I welcome an open and honest discussion from all perspectives.

I believe that building a second income business can be done in a genuine authentic way without hype or exaggeration. A business that is built around the values, talents, interests and goals of an individual is a business that can be sustained. If you like the way I think, email me at clemg@powerontheweb.biz.

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According to recent surveys, more than 3 million retirees and aged Americans are opting for Social Security benefits. Additionally you can as well supplement the benefits with other retirement plans like stock investments, annuities, IRAs, real estate investments, 401k plans and so on. This will add to your savings and make you more financially dependent. In most cases, the benefits comprise pensions, retirement incomes, benefits for the disabled and so on.

Some of the major benefits that you can get are:-

Health care benefits:
A number of health care programs are covered under this. One of the main health care benefits is the companion Medicare program. Thos who are covered under the plan can enjoy a number of benefits like hospital care expenses, post hospital care expenses, cost of medication, rehabilitation package costs and other related expenses. The plan also covers people who are fully or partially disabled.

Survivor benefits:

The main objective of the Social Security Survivor benefits is to provide financial assistance to the survivors and nominees of the main applicants. After the death of the main applicant, his or her family members or nominees are entitled to the benefits. The amount of the survivor benefits is calculated as per the earnings of the member who has died. For being entitled to the Social Security benefits, the main applicant needs to work for at least 10 years on average. This will make the survivors eligible for the benefits.

Pension Benefits:
Also known as Retirement Insurance Benefits or Old-age Insurance benefits. Usually, the pension is paid after one attains 62 or more years of age. Some requirements that you need to follow for getting pension benefits are:

• You should attain 62 years or more
• You should be fully covered under the Social-Security package

Social Security Loans:
One can act wisely and even get free loans from Social Security Retirement Benefits. After you reach the age of 62, you can adopt a free loan strategy and continue it till you reach the age of 70. This can make you earn more money and help make your post retirement life secure.

http://www.futureyears.com/ provides detailed information on Retirement Planning and all the help you may need to make an efficient retirement plan for yourself.

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Currently the economic and financial situation is in awful shape; as mentioned in this retirement blog. Elected officials, and the regulators that they have appointed to run our country’s institutions, have grossly mismanaged our economy to the brink of absolute failure. Our government has taxed us to the hilt to support entitlement programs promises they can no longer deliver. To compound the problems they have foolishly gotten involved in war after war by rationalizing that our “national interest is in jeopardy”. Certain businesses have enjoyed favorable tax treatment and/or allowed to operate with little regulation to the detriment of the general population. Our financial institutions have been encouraged to promote spendthrift ways to foster consumption today and pay tomorrow. In recent years the nation’s saving rate has plummeted into minus territory as we’ve borrowed against the equity in our homes to take vacations, buy bigger cars, update wardrobes and buy second homes for relaxing from the stress-filled environment of a helter-skelter life of making more money to spend. The government solution to all these excesses is, you guessed it, spend our way to prosperity. This will lead to the cruelest tax of all, the silent killer that affects those least able to afford it and the one tax that few of use call a tax: inflation.

We now find our nation facing the worse economic and financial calamity since the great depression of the 1930’s. In an effort to stem the economic tsunami that threatens to derail the American way of life, our governments is taking bold initiatives to bailout the wrecked institutions – from banks to housing to automobiles to individuals. Our Congress is busy piecing together a quilt-work of program to infuse trillions of dollars into the economy’s businesses to keep them solvent to brighten the hopes they can survive in a global landscape. The massive collective debt that is being incurred by our government will have to be repaid – either by those now living or a future generation. In the meantime, those who hold the colossal U.S. debt will receive debt service payments in the form of semi-annual interest checks. In order to repay these huge deficits now piling up on top of an already gigantic national debt, it will be necessary to return the national savings rate to the plus category. This can be done in one of two ways or a combination: cut expenditures or raise taxes. There is a third way – that awful-tax we call “inflation” – but this is simply a subtle way of taxing by increasing the prices of everything. In fact, inflation has been called “the cruelest tax of all” because it falls on those least able to afford it: the poor, retired and other living on fixed income.

So, in the face of this mounting massive debt, which remedy do you suppose will be pursued by our governments? Will it be cutting expenditures? Or will higher taxes, including galloping inflation, be the answer? More than likely it will be a slight-of-hand maneuver sold as “more government expenditures to promote faster growth to restore economic and financial equilibrium”. In other words, incentive will be provided to consume more and faster even though this is exactly the economic prescription that cause the problems we now face. This economic nostrum is tantamount to the snake oil elixir that was peddled in yesteryear to cure all ills and it will have the same curative powers. If you believe that governments are incapable of solving our economic and financial problems, you’ll have to take matters into your hands to make sure your economic well-being, and that of your loved ones and heirs, is secure. Let’s talk about some ways that can be accomplished.

First and foremost, there are taxes which I suspect will be rising over the foreseeable future. Of course, there will remain sizeable tax loopholes through which the wise can find ample fresh air to live a prosperous life. You’ve simply got to take advantage of every tax break approved by Congress – whether the benefits accrue to you while still alive or to your heirs once you’ve passed on to a heavenly economy where gold is used as a paving material. Check out the resources available below.

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You’ve saved for years to accumulate benefits to use throughout your retirement years. Most likely you’ve used government-regulated plans – called qualified retirement plans, company plans, IRAs, etc. – to do so.

But these tax-advantaged retirement savings plans have rules you must follow – both for companies and individuals. These rules prescribe key ages to frustrate early use of those savings and then to force their use later in retirement. You also paid into the Social Security and Medicare programs; they also have their key ages.

Being aware of these ages and what they imply is critical to your retirement planning. Let’s explore them from the earliest to the latest:

Let me first mention that most tax-advantaged savings plans involve tax deductible contributions you make from your working income. These savings then grow tax deferred. When this money is eventually withdrawn, it’ll be taxed as ordinary income. Such plans also include company pension plans – all of which are produce taxable income at retirement.

There are also ‘Roth’ based plans (Roth IRA, Roth 401(k), etc.) that you contribute to only with after-tax working income. These savings grow tax-free – a clear tax-advantage. And when you withdraw from them, the money comes out tax free.

The government offers the opportunity for using such tax-advantaged savings/retirement plans as an incentive for people to save for their retirement – and to lessen their dependence on Social Security benefits. So government sets up rules to penalize early withdrawals from these plans, and more… Let’s check out the rules – by age:

Age 50 – Catch-up age for additional contributions to retirement plans:

The earlier you can begin contributing to your retirement, the better. All tax-advantage retirement plans have limits on how much you can contribute yearly. But when you reach 50 years old, as an added incentive you can contribute a little more – called ‘catch-up’ contributions. Keep current each year for increases in both the regular annual contributions and catch-up amounts.

Age 59½ and age 55 – Age for no more 10% penalty for early withdrawal:

To frustrate early withdrawal of retirement savings, our government imposes a 10% penalty tax on what you withdraw before you turn 59½. But the government has lowered that age to 55 only for those laid off from work so they can access their company plan benefits.

Of course, anything you take out of these plans is treated as taxable income (except for Roth plans) so the 10% penalty is imposed in addition to whatever income tax you’d pay.

Age 65 – Age you qualify for Medicare:

You must wait until age 65 to qualify for Medicare. This is a government-assisted health care system to help the elderly. You must apply for it to receive it. Apply 3 months before turning 65 so you have access to it on your 65th birthday.

Age 65 or your FRA and (ages 62 to 70): Social Security Retirement Ages Sixty-five has long been the official retirement age for business, Social Security, and Medicare benefits. And it still is for Medicare eligibility.

But future insolvency problems with Social Security has made it mandatory to slowly increase the retirement age to receive your full Social Security benefits (i.e. income).

The age at which you get your full Social Security benefits is called your full retirement age (FRA). It’s been slowly increased to 67 depending on the year in which you were born.

Everyone can receive Social Security benefits earlier than their FRA, but their (i.e. the income) is reduced from what you’d get if you waited until your reached your FRA. This reduction increases for each month you begin benefits before your FRA. Generally, age 62 is the earliest you can begin receiving your permanently ‘reduced Social Security income’

On the other hand, government rewards you by increasing your Social Security income beyond your FRA benefits for each month you delay receiving them beyond your FRA. However, no additional benefit is given for waiting beyond age 70.

Age 70½ – After turning this you have minimum required distributions (MRDs) annually:

Lastly, the government wants the tax money for all that ‘untaxed’ retirement plan money you’ve saved. So when you turn 70½, they require you to withdrawal at least a minimum required distribution (MRD) from your plans annually.

Remember that all the withdrawals are taxed as ordinary income. If you withdraw less than your MRD, you’ll be penalized heavily on the fraction of the MRD you didn’t withdraw. So do it; it’s not worth it not to.

Incidentally, Roth plans have no MRD obligations for you. And whatever you take out is tax free too.

Shane Flait writes and consults on financial, legal, tax, and retirement issues. He gives you workable strategies to accomplish your goals. Get his FREE report on Managing Your Retirement => http://www.easyretirementknowhow.com/FreeReportandSignUp.htm, you can contact him at contact@easyretirementknowhow.com

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