Salvaging Social Security

2008 was one of those years where saving and investing part of your paycheck was an uphill battle for many. Contributing each pay period to your 401(k) and then seeing your statement with a lower balance than before is downright discouraging. Nevertheless, you need to keep socking it away. You under fifty-somethings don’t want to have to depend on a Social Security check for your retirement. I’m not saying the check won’t be there. But it may be smaller and less able to meet your retirement needs than it is for your parent’s retirement. Continue Reading…

Now or Later — Deciding When to Draw Social Security

As we baby boomers approach retirement, a question that often comes up is when to start drawing Social Security. The normal retirement age for drawing full benefits for Social Security was originally 65. It is gradually being increased to age 67 due to increasing life expectancies and significant under funding of the program. The early retirement age, where you can draw reduced benefits, is 62 and hasn’t changed yet. Social Security rules are legislated by Congress and are amazingly complex. Congress, of course, has their own retirement plan with simpler rules and better funding. Go figure! Continue Reading…

40-Somethings, Mind Your Parents!

Remember back as a youngster when you got that first job and started earning a few bucks? My first job was an entrepreneurial effort at raising fishing worms. It’s a tough job digging worms. They grow even lower than cotton and your back starts hurting pretty quickly. I then moved on to the big money of drilling water wells — $15 per day and all the water I could drink. Continue Reading…