Money and More© December 8, 2018

Retirement Pension and Social Security Sweet Spots

Coordinating the timing of pensions and social security can create greater wealth during retirement.   Often folks want to take their pensions and Social Security as soon as possible.  Social Security which can be started as early age 62 is penalized for each month taken prior to the Full Retirement Age (FRA).  FRA is varies based upon the year of birth.  For those born in or after 1960 the age is 67.   Additionally, Social Security will reduce benefits further if the recipient is still working.

As result of this working penalty, workers will often stop working to avoid the penalty.  For those working toward earning pension benefits or saving in their 401k,  retiring at age 62 reduces future benefits.  There is a big penalty when reducing social security benefits and workplace retirement benefits at the same time.  Working a few more years to avoid the penalties is a hard choice for folks who want to spend more time traveling or with grandchildren.  There is substantial financial evidence supporting working to FRA to sustain higher level of lifestyle for the 30-35 years of retirement.  For those willing to wait,  delaying both Social Security and Pensions in order to coordinate the benefits  can be truly financially rewarding.

Marketplace Health Insurance Open Season

The 2019  Affordable Care Act enrollment period has been shortened to 45 days  from 90 days.  This year, it is from November 1st  to December 15, 2018.  Furthermore, the advertising budget to promote open enrollment has been slashed to make the program harder to access.  There is virtually zero advertising about the open season this year.  If you don’t act by December 15, you can’t get 2019 coverage unless you qualify for a Special Enrollment Period. Plans sold during Open Enrollment start January 1, 2019.  You can learn more or start the enrollment process by going to

15 Kinds of Income Streams (not just for retirement)

A client recently asked me about creating streams of income for financial security.  My client stated millionaires have multiple streams of income to create their high income  usually into retirement.  Like having a diversified investment portfolio, having diverse income streams reduces the dependence on any one income source.  Establishing the streams requires an investment of money, time or sometimes both.  Real estate can take many hours of effort with substantial cost or risk of cost (through a loan).  As you consider building streams of income, think about how to make them uniquely different and not tied to the same risks.  Examples of these risks are the financial markets or the same employer.

These streams can include:

  1. Work place earnings (especially spouses at different employers and different industries)
  2. Stock based dividends
  3. Fixed Income Investments like from a bond ladder
  4. Pensions
  5. Social Security
  6. Rental Real Estate Income
  7. Royalties from creative work like book or music writing
  8. Insurance Annuities
  9. Speaking Fees
  10. Web based sales of virtual products like eBooks or virtual training.
  11. Consulting Fees
  12. 2nd Job or Gig Work (like uber, or other freelancing)
  13.  401K or similar retirement account  distributions (after age 59.5)
  14. Board of Director Fees
  15. Election Judge/Census Worker


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