Fine Tuning Social Security
Here are some facts from the Social Security Administration and AARP.
- For 2019, 64 million Americans collected over $1,000,000,000,000 (trillion) in Social Security.
- About 178 million workers paid into the Social Security system this year.
- Of those receiving Social Security, 50% of married couples and 70% of unmarried individuals receive more than half of their income from Social Security.
- Retired workers collected an average monthly benefit of $1,471 per month.
- Survivors of deceased workers account for about 12.3% of paid Social Security benefits.
- In 16 years, the number of Americans age 65 and older will increase by 22 million people!
- In 16 years, we will have about 1/2 of a worker less in the workforce to contribute to Social Security.
- Life expectancy rates have risen by an additional 6+ years since 1940.
These facts indicate that you can expect some changes to the Social Security program in the future. Don't assume that 62 is the best age for you to begin taking Social Security. Look at all your sources of income and look at how different your benefits will be at various ages. Know how much healthcare and how much various long-term living scenarios will cost you in the future. Remember, you can work part-time and possibly collect Social Security. It takes some careful planning to do it right. You don't have to do it alone, we are here to help.
The SECURE Act of 2019
Here are some key changes that you'll want to know about:
- Required minimum distributions (RMDs) from your retirement accounts will now begin at age 72 rather than the previous age 70 1/2.
- IRA contributions can now continue past age 70 1/2; allowing for additional years of saving.
- Part-time employees can now qualify to participate in company retirement plans.
- Students can now take up to $10,000 from a 529 Plan to pay student loans.
- A new tax credit of $500 will be available to small businesses for auto-enrollment into their retirement plan.
- A no penalty distribution will be allowed up to $5,000 from a retirement plan or retirement account for a qualified birth or adoption.
- Inherited IRA beneficiaries will now have to take distributions from their inheritance within a 10 year time frame.
Source: 1) https://www.forbes.com/sites/leonlabrecque/2019/12/21/the-secure-act-and-your-401k--ira-5-things-you-need-to-know-right-now/#43ecbc1a2ebb 2) https://www.napa-net.org/news-info/daily-news/key-secure-act-provisions-and-effective-dates
Year in Review
Wow, did we say last year that the year had flown by? Well, let's say it again "the year has flown by!" It was a wonderful busy year for Cox Global Associates, and for that we are grateful.
Thank you to all of our clients and friends for being apart of of our year. Our professional team worked hard to review portfolios and stay on top of changes developing in the capital markets. We studied changes to tax laws, new retirement account laws, political and economic impacts to our investment portfolios, and how to connect more with our clients.
Our commitment to you going forward is to keep you informed and educated about events and changes that will impact your financial future, and to be an active part of our community. To do that, we will continue what we started in 2019 offering our insights through short online webinars, special in person seminars, tips that we'll share via social media and email, and giving back to our city. We encourage you to follow us on social media so that you can stay on top of the information we feel is beneficial to you. We are now on Facebook, LinkedIn, Instagram, and YouTube. Our website is a wealth of information as well under the Knowledge Center tab.
We welcome your visit to our office to review your portfolio or current scenario. Please don't hesitate to call and make an appointment, 281-395-8300. We want to be there for you when you need us. Let us know how we can help.