Annapolis, Maryland Wills, Trusts & Estate Planning

How Will I Know When I Can Afford to Retire? – Annapolis Estate Planning

The period before retirement is a time when people dream about what the future might hold. They also worry because who hasn’t heard the stories about retirees who return to work because they retired too early?

It’s no surprise then that little more than half of Americans surveyed by the Transamerica Center for Retirement Studies say their biggest concern about retirement is outliving their money. The nature of retirement, when we start taking money out of those retirement accounts after a lifetime of putting money into the accounts, seems a little scary.

Here are the key indicators that you’re probably ready to retire, according to this recent article from Investopedia’s, “6 Signs That You Are OK to Retire.”

1. Hit Your Full Retirement Age. If you were born between 1943 and 1954, your full retirement age is 66. If you were born after 1959, it’s 67. You can start claiming Social Security benefits as early as 62, but your benefits will be much higher, if you wait until your full retirement age.
2. Retire Debt-Free. If you have a ton of credit card debt or still owe a lot on your home or car, you may want to wait to retire because when you’re on a fixed income, a big mortgage or car payment can put a major dent in your finances. Before you retire, pay off all your debts if possible, and get on a budget.
3. Not Financially Supporting Your Kids (or Parents). If your kids still live with you–or you’re paying for their college education–you probably should wait with your retirement plans. Likewise, it might be smart to delay retirement if you’re financially responsible for your elderly parents. If that’s you, retirement probably isn’t an option until your situation changes.
4. Make a Retirement Budget. Prior to retiring, calculate whether you can live comfortably on your post-retirement income. Add up your mandatory monthly costs, like a mortgage or rent, groceries, and utilities. Next, add in your 'wants,' like travel, entertainment shopping and eating out. You can then determine whether you’ll have enough retirement savings to cover all of this. Add your Social Security payments, pension, retirement account distributions and any other sources of income. Your retirement budget (if you retire in your mid-60s) shouldn’t be more than 4% of your investments plus Social Security and pension payments.
5. Review Your Portfolio. You’re going to depend a lot on your investment portfolio in retirement. If you haven’t had a portfolio review in a while, do it soon. Reassess your portfolio and determine if you need to make any modifications. As you get close to retirement, you may want to move to lower-risk investment strategies to protect your wealth.
6. Plan with Your Spouse. Unless you live alone, retirement will have a major effect on your spouse or partner. Retirement should be reviewed together. Look at how the reduction in income will affect your lifestyle and consider what changes may need to occur to make it enjoyable for you both.

It’s not all about the money. Many people are also surprised at how quickly they are bored in retirement. Plan for the “soft” side of retirement: what you will do with your time? This may be the time you devote to family, write your novel, volunteer in the Peace Corps, or perfect your backhand. However, knowing what you want to do is as important as knowing how you’ll support yourself.

Reference: Investopedia (June 1, 2018) “6 Signs That You Are OK to Retire”

Holden & Campbell, LLC – Annapolis Estate Planning

Retirement is Ten Years Away: What You Need to Do Right Now - Annapolis Estate Planning

People start thinking in more concrete terms about retirement when the concept becomes a reality, often about ten years out. That’s when the planning has to get real.

Both football and retirement planning have a “red zone,” where the game is won or lost, says Investopedia in a recent article, “5 Things to Do 10 Years from Retirement.” For NFL teams, the red zone is 20 yards from the goal line, and in retirement, the red zone starts ten years from your targeted retirement date. If you’re approaching the retirement red zone, it’s time to huddle up!

1. Figure Out What Retirement Means to You. Before you start making financial plans, be clear on what retirement means to you. It may mean working 40 hours instead of 60 or never working another day for the rest of your life. Whatever you like, it's important to have some idea of what you want to do every day. From there, you can start to shape a financial plan to support your retirement vision.
2. Determine How Much Money You’ll Spend Every Month. Once you've defined what your retirement will look like, you can begin planning for it financially. First, determine how much you'll be spending every month on your retirement budget. Many pre-retirees just don’t know how much they need to live on a monthly basis. An accurate retirement plan will be based on your monthly household expenses.
3. Examine Your Sources of Income in Retirement. While looking at your spending, be aware of all the types of income you'll have during retirement, such as Social Security, a pension, a 401(k) or an IRA. There are choices that will have to be made, if you have a pension. The timing for collecting Social Security payments is also important.
4. Rework Your Investment Strategy. The way you’ve been investing for the past 30 years, is not how you should invest for the next 30. Younger people focus on accumulation, but when you’re in or nearing retirement, you need to concentrate on income and keeping pace with inflation. Diversification is important, but what's more powerful than diversification is asset allocation.
5. Consider Hiring a Financial Professional. You can do-it-yourself, since there are many inexpensive funds and research information available. However, there's much more that goes into creating a comprehensive retirement plan than just investments. Your retirement plan should address your need for income, estate planning, survivorship planning, insurance needs, business continuation, inflation, and other points.

To continue the analogy, retirement success in the red zone means good planning, including having an estate plan in place. If you fumble the ball at this point, your retirement won’t be celebrated with a Gatorade shower. Start planning now, so you can enjoy the victory.

Reference: Investopedia (September 7, 2018) “5 Things to Do 10 Years from Retirement”

Holden & Campbell, LLC – Annapolis Estate Planning

Three Thoughts on Retirement Finances - Annapolis Estate Planning

These are common questions discussed when planning retirements: Social Security, women and retirement, and couples adjusting to retirement together.

While every article about when to start taking Social Security benefits focuses on delaying as long as possible, until age 70, to maximize the monthly payment you receive, there are a few exceptions. As discussed in this article from Financial Planning, “The 1 reason not to delay Social Security,” people who are in poor health or have received a terminal diagnosis have no need to delay.

While the benefit will be less if they file early, the greater number of individual payments will help offset the smaller benefit amount.

There are three ways that women can plan for a better retirement. Women should not rely solely on their spouses when planning for retirement. Instead, they should more directly participate in how they’ll secure their senior years. That’s because many of them are likely to live longer than their partners, according to an article from MarketWatch. Women should calculate the amount of income they anticipate receiving in retirement and consider other income streams.

In addition, they can talk about their estate plans with their spouses and family members and look for alternative income sources. One example is an immediate annuity. In the right circumstances, they can be a terrific strategy to improve one’s retirement prospects.

Remember that despite not having a 401(k), individuals can still save for retirement. Workers who don’t have the option of a workplace retirement plan, should ask their employer to set up one on the basis of incentives that the company will receive.

These workers can also look into opening a health savings account and an individual retirement account, preferably a Roth IRA, which offers tax-free growth on savings and penalty-free early withdrawals.

They also can choose to switch their status to a 1099 from a W-2 employee to establish a SEP IRA.

Finally, living together in retirement can be difficult for couples who are used to having work as a diversion. To overcome the obstacles, couples should talk about retirement and be honest about their expectations, rules, and disappointments. They should also find a common ground, if they have different interests. There’s nothing wrong with wives and husbands having separate interests or even separate friends, as long as they balance their time apart with quality time together.

A healthy and fulfilling retirement has many moving parts, from finances to recreational pursuits. Advance planning for all aspects will make it a more rewarding chapter of your life.

Reference: Financial Planning (October 25, 2018) “The 1 reason not to delay Social Security”

Holden & Campbell, LLC – Annapolis Estate Planning

Countdown to Retirement with Three Simple Questions – Annapolis Estate Planning

To help plan for retirement, it helps to move from asking global questions, like “Can I afford to retire?” to more specific questions, like “What’s my monthly cost of living right now?”

Sometimes retirement planning is so overwhelming that people just shrug their shoulders and hope that things work out. That’s a terrible way to plan for the last two or even three decades of your life. Plus, says Motley Fool in a recent article titled “Don't Even Think About Retiring Until You Can Answer These 3 Questions,” if you can’t answer three basic questions, maybe you’re not ready to start thinking about retirement.

Can you believe that just 38% of Americans say they have a long-term financial plan, according to a recent survey? Let’s look at three important planning questions.

When to claim Social Security. Many people think that retirement and claiming Social Security benefits occur at the same time. However, they don't have to. You could elect to retire at age 60 but wait to claim your benefits until you reach 65. Remember that the amount of money you get in benefits is linked to the age at which you start claiming them. Age 62 is the earliest you can claim Social Security. However, if you do, your benefits will be reduced by up to 30% of what they could be. For every month you wait, you'll receive slightly more with each check up to age 70. Your full retirement age (FRA) is the age when you’ll get 100% of the benefits to which you’re entitled. Waiting can have its advantages, but there's no single right answer for when you should start claiming. It all depends on your personal circumstances.

Will your retirement savings last? Take a look at how far your savings will last during retirement. To determine how far your money will go, calculate the amount you'll need each year to get by during retirement. With a number in mind, you'll be able to better determine how long your current savings will last. You might realize that you need more than you anticipated, especially if you're going to be spending several decades in retirement.

Paying for healthcare costs. Healthcare costs are one of the largest expenses in retirement. Know that the average retiree spends about $4,300 per year on out-of-pocket healthcare expenses. A total of two-thirds of that is spent on premiums. It’s important to understand that Medicare will help cover many healthcare expenses you'll face, but it doesn't cover everything.

Circumstances often dictate when people retire; they lose a job in their mid to late 60s or illness prevents them from working. However, even when that is the case, understanding where you are from a financial perspective can help make your retirement work in your favor.

Reference: Motley Fool (October 9, 2018) “Don't Even Think About Retiring Until You Can Answer These 3 Questions”

Holden & Campbell, LLC – Annapolis Estate Planning

Another Facet of Social Security to Learn: The Earnings Test - Annapolis Estate Planning

If it seems like every time you start to understand Social Security, there’s something else to learn, you’re right. However, this is an important part of your retirement income, so it’s important to understand.

The Social Security earnings test is a way that the agency determines the limit of the amount of money individuals who have not yet reached full retirement age (FRA) can earn, while they are collecting Social Security retirement benefits.

For 2018, for every $2 that a worker who has not yet reached FRA earns over the annual threshold limit of $17,040, Social Security will withhold $1 from your benefits.

The Social Security benefit threshold rises significantly (to $45,360 in 2018) in the year you attain your full retirement age (FRA). At that point, one dollar will be withheld for every three dollars you earn over that threshold. The earnings limit is effective the first of the year and indexed annually.

Investopedia’s recent article, “How the Social Security Earnings Test Works,” says that everyone getting Social Security benefits prior to their full retirement age is subject to the earnings test—even widows and widowers receiving survivor benefits and minor children receiving benefits on a deceased parent’s record, if the child earns more than the annual limit. If a minor child is receiving benefits based on a parent’s work history and the parent is still living and under full retirement age, the earnings test for the child’s benefit will be subject to the amount earned by the parent.

Let’s look at how the earnings limit is applied. In the first year you claim Social Security prior to your full retirement age, you’re subject to a monthly earnings test beginning the month you start receiving benefits ($17,040 ÷ 12, or $1,420 per month in 2018). As a result, you can earn as much as you want prior to the month you start your benefits.

In subsequent years, until the year you reach FRA, you’re subject to an annual earnings limit each year after the first year, until the year you reach your full retirement age. At the start of each year, you’ll be asked to estimate how much you plan to earn. If your estimated earnings are less than the annual limit for that year, there won’t be any Social Security benefits withheld.

The earnings limit in the year when you reach your full retirement age is much higher ($45,360 in 2018). This is a monthly earnings limit ($45,360 ÷ 12 or $3,780 per month), if it’s the first year you are claiming benefits, but an annual earnings limit if it’s the second or subsequent year you’re not receiving benefits.

The annual gross earnings, as reported on your W-2, are used. Therefore, contributing to a 401(k) or similar retirement plan to reduce earnings subject to state and federal income taxes won’t impact your earnings for the earnings test. However, payments received “on account of retirement,” like a severance package, aren’t subject to the earnings test.

Remember that the earnings of your spouse may be considered, when applying the earnings test for your benefits. If you’re claiming benefits based on your current spouse’s work record, and your spouse is under FRA and continues to work, his or her earnings are considered when applying the earnings test for your benefits (even if you’ve already attained FRA). However, if you’re claiming benefits on an ex-spouse’s record, only your current earnings and age are used when applying the earnings test.

Self-employed people have to work fewer than 45 hours per month in their business, otherwise benefits claimed prior to FRA will be withheld, no matter how much they earn.

When the Social Security Administration (SSA) determines you have or will exceed the earnings test based on the estimated earnings you give them, they’ll calculate the amount to withhold and begin doing so immediately. They’ll withhold payment of full benefit checks, until they receive the full amount overpaid, then they’ll go back to remitting your monthly benefit.

Depending on how much you will earn, it does sometimes make sense to apply for Social Security before your FRA, even if you might be subjected to the earnings test. For instance, a widow or widower with one income who needs the additional income might file for benefits earlier than they had anticipated. You’ll want to understand all of your options, before making the decision to file.

Reference: Investopedia (September 18, 2018) “How the Social Security Earnings Test Works”

Holden & Campbell, LLC – Annapolis Estate Planning

More Information Equals A Better Outcome in Retirement Planning - Annapolis Estate Planning

Most people who work for a living dream of retirement. However, for many workers, the idea of retirement comes with its own worries. Will there be enough money? Will I be healthy enough to enjoy it?

Money and health are the two biggest worries about retirement. There are other unknowns: where will we live? How long will we be able to travel? What’s all this about paying estimated taxes, and how does Medicare work? Getting prepared for retirement will be less stressful, says the article “3 Ways to Approach Retirement More Confidently,” from The Motley Fool, if you follow these steps:

Start with a budget. The chances are that you don’t know how much money you spend every month. You’re working, money comes in and it goes out.  However, if you know how much money you are spending, and what you are spending it on, you’ll be able to have a handle on how much money you’ll need for retirement. You’ll also be able to see where your discretionary dollars are going and make a conscious decision, as to whether those are dollars that should be going into long-term savings for your retirement.

Remember that while some expenses may go down—like commuting—others will stay the same. You won’t be going to the office every day, but you will want to enjoy yourself. What will your leisure and entertainment activities be, and how much will they cost? How will you handle health care costs?  You should also remember that there will be quarterly taxes to be paid.

The more information you can pull together about your spending, savings and unavoidable costs like taxes and health care, the better you’ll be able to plan for this next phase of your life.

How much income will your retirement accounts provide? We tend to focus on how much we need to save, but we should really focus on how much income our retirement savings will generate. How much will your IRA or 401(k) provide on a monthly basis?

Let’s say you’ve saved $500,000 in time for retirement. If you use an annual 4% withdrawal rate, which is the going rule these days, you’ll only have $20,000 a year generated for annual income. If you add Social Security to that amount, you may find that it’s not enough to enjoy the lifestyle you’ve anticipated for retirement. You may find that part-time employment can fill the gap, or you may need to work for a few more years.

Be smart about Social Security. Despite your years of saving, you will likely come to rely on Social Security to pay some of your bills. The smarter you are about your filing strategy, the better positioned you’ll be to maximize your Social Security benefits. If you wait until your Full Retirement Age, you’ll get the full monthly benefit you’re entitled to. If you can hold off claiming your benefits until age 70, you’ll max out as the monthly benefits increase every year you delay claiming.

One of your key resources as you move towards your retirement years will be your estate planning attorney. The process of creating an estate plan will also answer some of your questions about what retirement will bring and planning for aging now will give you a lot more confidence about enjoying your early years of retirement.

Reference: The Motley Fool (September 23, 2018) “3 Ways to Approach Retirement More Confidently.”

Holden & Campbell, LLC – Annapolis Estate Planning

How Taking Social Security at 62 Makes Sense in Some Tax Brackets – Annapolis Estate Planning

If you’re living on your retirement savings, while waiting to start taking Social Security benefits to full retirement age or even age 70, you might be costing yourself thousands in taxes.

It’s annoying. There’s no way around it. You’ve worked your whole life, and paid taxes on those earnings. Now you have to pay taxes on your Social Security benefits. However, depending on your asset level, you may want to start getting those benefits earlier, says this article from Kiplinger, “Why Wealthy People May Want to Take Social Security at 62.”

There are many good reasons to wait and take Social Security at full retirement age to get the full benefit amount. In waiting longer to file, the benefit can grow 8% a year from full retirement age to age 70. However, this one-size-fits-all advice may not be appropriate for everyone, especially for the wealthy.

The issue is that everyone wants to up their benefits on the front end. However, if there is no plan to boost those dollars on the back end, by keeping more of your Social Security dollars for yourself instead paying taxes, it’s not worth it. For many seniors, by the time they see they’re going to be giving up to 20% to 30% of their Social Security away in taxes, it’s too late.

Of course, conventional wisdom says that, if possible, you should wait and claim bigger Social Security benefits at age 70. That’s something high earners in many instances can do, but there are an increasing number of couples who’d be better off filing at age 62, and using that income to preserve and build their nest egg.

Look at this example: say that a husband was retiring at age 62. Without his regular paycheck, he and his wife were both about to find themselves in the lowest tax bracket they had been in since their first jobs: the 10% bracket. The question for them, like many Americans, is whether to tap into their IRA and 401(k) in retirement. These are typically the most significant accounts in terms of amounts saved through the working years. If this couple didn’t start Social Security at age 62, they’d need to withdraw heavily from pretax retirement accounts. Based on the monthly distribution rate needed to maintain their budget, those dollars (which are taxed at current income tax rates) would immediately place them into a higher tax bracket (perhaps the 22% bracket under 2018 tax rates).

However, if they take their Social Security payments at age 62, the monthly distribution amounts needed from their retirement savings accounts would be much less. This couple doesn’t want to drain their retirement accounts early in retirement, because it can mean lost opportunities for compounded growth of assets over a 20-to-30-year retirement. If the couple were to take their Social Security at age 62—while in a 10% tax bracket from age 62 to 70—the amount of tax they’d pay on those Social Security benefits would be minimal, maybe even zero.

Talk with your estate planning attorney, who has a clear picture of your tax situation in retirement and has likely designed your estate plan to minimize taxes. Make sure that your plan for when to take Social Security benefits makes sense from a tax perspective.

Reference: Kiplinger (September 7, 2018) “Why Wealthy People May Want to Take Social Security at 62”

Holden & Campbell, LLC – Annapolis Estate Planning

Single Parents Need to Plan and Balance for Financial Stability - Annapolis Estate Planning

Without the security of a spouse’s income, single parents must balance their children’s needs with their own retirement savings goals.

Single parents who have to say no to their children over and over again, struggle with wanting to say yes when money is tight and there’s no room in the budget for the latest fashions or games.  However, the last thing a single parent wants to do is convey a lack of financial discipline. A financial plan can help a single parent stay on track.

CNBC’s recent article, “Five financial essentials for single parents,” says that when single parents try to satisfy their kids, it can lead to a severe unintended consequence: placing their children ahead of their own retirement needs.

In addition to naming a guardian in a will, there are five other critical financial moves.

1. Set up an emergency cushion. A solid emergency fund is the initial step. You should have three to nine months' expenses in that fund. Don’t forget to add whatever costs the kids have each month, like sports and activity fees, school lunches, clothing, and school supplies.
2. Check on the right amount of insurance. Life insurance can help your family cope financially without your income. Your income could be lost through illness, so consider disability insurance. If you own a home, purchase flood insurance.
3. Create definitive savings goals. You most likely have things that you'd like to do for your family, such as purchase a home, pay for college or plan a special vacation. Each of these will be on a different timeline. Divide this into near-, medium-, and long-term savings goals. Your near-term goals will happen within five years. The way in which you invest these three silos of money is based upon your unique time horizon. If you have decades before you retire or need to pay tuition for a newborn, you can take on more risk. Examine your allocation among these accounts and review them once a year, to see if the amounts you're putting in each—and the investment strategies—still match your goals.
4. Have a set savings percentage. There's no set number that works for everyone. There are recommendations to save at least 6% or 9% of your income, but it’s not always possible. If you can only save $30 a month, do it and be glad! Just creating a positive habit of saving is important. Even if you save as little $10 a month, do it with the notion that you'll increase the amount, when your finances permit. A good rule of thumb is to put away 10% of your gross, not take-home, pay and as you get raises, increase your savings rate. Developing that disciplined habit of saving can help you accomplish many of your financial goals.
5. Make your retirement plan. With your savings and Social Security, achieving a 50% replacement of income may be enough for people with modest salaries. However, a person who earns $100,000 will be more likely to want 85 to 90% of income. Therefore, they’ll have to save more. In sum, the more you have, the more you’ll need to save to be able to spend the same amount of money and live the same way in retirement.

For those lucky enough to work at a company with a retirement plan, contribute as much as you can, especially if your employer offers a match to your IRA contribution. If your company does not have any kind of retirement savings plan in place, the next best thing is to set up your own IRA and have money taken from your paycheck automatically. How much you save is up to you, but saving something is better than nothing.

Reference: CNBC (August 20, 2018) “Five financial essentials for single parents”

Holden & Campbell, LLC – Annapolis Estate Planning

Special Needs Families Need Strong Financial Planning - Annapolis Estate Planning

The cost of raising a child with special needs is easily twice that of an average child, and college costs are higher as well.

Families with special needs children need to plan their child’s future carefully in many regards, and financial concerns are, by necessity, a big part of planning. While the average cost of raising a child from birth to 18 is about $250,000, according to The American College of Financial Services, the cost to raise a child with special needs can easily be twice that amount. One of the challenges is preparing for the special needs child when its time to attend college.

WTNH’s recent article, “Financial planning for families with children with special needs,” advises that working with a team of different professionals can help parents manage both the financial and non-financial aspects of providing care. Here are some of the key roles:

Caregiver. Working with a caregiver can help manage the challenges of providing care and addressing everyday responsibilities. The cost will be commensurate with the level of care required, so determining the need will be important to creating a budget.

Estate Planning Attorney. A lawyer who specializes in estate planning can help create a special needs trust to shield assets for a beneficiary with special needs, while preserving her ability to qualify for government programs. An updated will and living will with the names of a guardian and trustee will also be crucial to be sure that care is provided for in accordance with your wishes. A letter of intent can also be a helpful document for caregivers. It’s not a legally binding document, but it can provide important information like medical history, family history, information about your child’s preferences, and your wishes for the type of care they should receive.

Accountant. As a provider of care to a child or dependent with special needs, you may qualify for tax deductions for medical expenses, tax credits and tax-advantaged accounts. For individuals disabled before the age of 26, a 529A account can provide tax-free growth and use of the money to improve health and quality of life.

Financial Advisor. A financial advisor, who specializes in working with families that have special needs children or dependents, can provide specific recommendations on how to fund and protect accounts for disabled dependents.

Parents are advised to investigate any kind of benefits and support offered by the federal government, like Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Depending on their employer, they may have access to flextime or child care cost reimbursement, as well as disability and life insurance. Don’t overlook local resources, since some counties and states have a host of programs available.

Reference: WTNH (August 7, 2018) “Financial planning for families with children with special needs”

Holden & Campbell, LLC – Annapolis Estate Planning

Be Smart About Social Security - Annapolis Estate Planning

The closer you get to retirement, the more enticing those Social Security benefits become.  However, you should make an informed decision about when to take those benefits, so you don’t make a costly mistake.

Yes, you’re eligible to start taking Social Security benefits when you turn 62.  However, that doesn’t mean you should. The longer you can delay claiming benefits, the better. In fact, if you start getting benefits too soon, you could put a good-sized dent in your overall benefits.

CNBC’s recent article, “This is when it makes sense to claim Social Security early,” explains that if you wait until full retirement age (usually either 66 or 67, based on when you were born), you’ll receive 100% of the benefit available to you based on your personal work record. If you wait until age 70, your retirement benefits will also be even more, because delaying past full retirement age lets your benefits grow by 8% per year, until you reach that age.

In effect, delaying your claim until 70 could bring your benefit amount to 132%. It’s usually best to hold off on claiming as long as you can.

Usually, it only makes sense to claim your benefits early in limited circumstances. For instance, if you're single and you're terminally ill and you know you're not going to live very long, you might go ahead and file early.  However, in most other situations, it does not make sense to claim early. Even if you know you won't live a long time, if you're married, claiming early could reduce the amount of benefits your spouse will have access to, once you're gone.

Survivor benefits are determined by the age a person dies and the amount of Social Security credits they had accrued. If you wait to claim benefits, you’ll have more credits and a larger benefit to pass on when you die.  However, the amount survivors can access, also depends on when they claim the benefit.

A surviving spouse can file for widow or widower benefits starting at age 60. However, that benefit amount will be reduced. Instead, if that person waits until their full retirement age, they’ll be eligible to receive 100% of their spouse's benefit amount.

Those eligible for survivor benefits can elect to claim those funds or their own retirement benefits, if they’re eligible for them. Therefore, they could take the survivor benefit and let their own benefit grow up to age 70.

And don’t forget that the longer you can delay taking Social Security benefits, the better you’ll be in terms of cost-of-living adjustments (COLAs). Those will be based on the higher benefit amount. When it comes to Social Security, patience is more than a virtue—it’s an income boost.

Reference: CNBC (June 19, 2018) “This is when it makes sense to claim Social Security early”

Holden & Campbell, LLC – Annapolis Estate Planning