Latest news with #WealthEnhancementGroup
CNBC
10-06-2025
- Business
- CNBC
Markets are very complacent around trade, says Vital Knowledge's Adam Crisafulli
Adam Crisafulli, Vital Knowledge, and Nicole Webb, Wealth Enhancement Group senior vice president, join 'Closing Bell Overtime' to talk the day's market action.
Yahoo
10-06-2025
- Business
- Yahoo
5 Social Security Myths That Could Keep You From Getting More Money
Anyone close to retirement must consider when to begin taking Social Security benefits. While you can claim them as early as age 62, your benefit goes up each year until you hit the full retirement age (FRA) of 67 and the maximum you can wait is age 70. Because Social Security can be confusing, many myths abound. Joel Callagan, a senior vice president, financial advisor and certified exit planner (CEP) at Wealth Enhancement Group, busts five common myths about this important safety net for retirees. Find Out: Read Next: As soon as you hit 62, if you've earned Social Security credits, you can begin to draw on your benefits, Callagan said. If you're still working, Social Security subjects you to what he called 'two earnings tests.' Depending on how much money you make, and what year it is that you're drawing benefits, your Social Security benefits will be reduced by a certain amount for every dollar you earn above a certain limit. Social Security announces that limit each year. For 2025, the limit is $23,500. So, if you're working in 2025 and you're 62 years old, for every $2 you make above $23,400, your Social Security will be reduced by $1, he explained. The noteworthy point here is that you don't necessarily lose that money; you just won't get the rest of it until you reach your full retirement age. 'At that point, they're going to recalculate your benefit to not only include the dollars that were withheld, but also, if you were still working and earning at a higher level than you had been in one of your previous 35 years, then your Social Security benefit, when it's recalculated, could even increase.' This myth persists, he said, because most people rely on word of mouth for their retirement information rather than visiting the Social Security website or speaking with a financial advisor. Discover More: This leads into a second, related, myth, which is that one has to be retired in order to draw Social Security. This is also not true. He finds that a lot of retirees are ready to phase down work but still want to keep bringing in money. 'They think that retiring and taking Social Security are happen synonymously. ' In general, there are a lot of misconceptions around stopping working, receiving benefits and their general alignment, he said. 'One of my wealthiest clients works at Ace Hardware. He doesn't need the money. He just really loves the job and he'd go crazy if he had to sit around and play golf all day. So he's working, he's receiving Social Security and there's nothing wrong with that.' Spousal benefits entitle a spouse who has been married to their partner for 10 years or more to take the higher Social Security amount — either their own benefit, or half of their spouse's. It's not uncommon for ex-spouses to think that their divorced ex is taking half of their retirement benefits, but that's incorrect, he said. 'I get a lot of angry calls saying, 'My ex told me that she was about to file for a spousal benefit and she's not getting another cent from me.' And that's when I get to tell people that their spouse benefit does not affect your benefit.' If spouse A is receiving full benefits, and spouse B takes spousal benefits at 50% of spouse A, this does not reduce spouse A's benefits, Callagan explained. 'It's on top of.' He said it's also important to note 'that if you're taking a benefit for yourself, you can take it as early as 62 or if you wait until age 70, that benefit will increase.' The spousal benefit caps at your full retirement age benefit. 'And even if you wait and get a higher amount, your spouse still only gets 50% of your FRA — your full retirement age benefit — which for most people, especially ones retiring now, will be 67,' he said. In December, 2024, one of the last acts of the Biden administration was to pass the Social Security Fairness Act. This removed the Government Pension Offset and the Windfall Elimination Provision, which limited people receiving government pensions, or spousal pension benefits, from also taking Social Security. Their removal added a significant amount of income to people's lives, often in sectors like government, education and healthcare, a major boon. One of the other myths Callagan frequently sees is that you should always wait to collect Social Security until full retirement age or as late as possible (age 70). For some people, taking Social Security early, even at a reduced benefit, can remove the stress of the transition from a working income to a retirement-based income, he said. 'Those years before you start to withdraw [from retirement accounts] can be very stressful because you go from receiving consistent income to having to draw money from your savings,' he explained. 'The lack of an income can be causing sleepless nights and they want that certainty of having some money coming in.' Callagan said sometimes peace of mind is more important to people over the highest possible payout. Additionally, people with health conditions that may shorten their life expectancy may opt to get a reduced benefit while they are still alive rather than not getting any before they pass. There are also complications related to Medicare, which people can begin taking at age 65 (and FRA is 67). 'Medicare comes with Part B costs, and that's an expense that a lot of retirees aren't necessarily expecting to pick up,' Callagan said. Thus, people may try to align their Social Security benefits with when they take Medicare to pay for it. Because many Social Security decisions are irreversible once you make them, be sure to consult with an advisor who is savvy in these rules before you take yours. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement 5 Types of Cars Retirees Should Stay Away From Buying This article originally appeared on 5 Social Security Myths That Could Keep You From Getting More Money
Yahoo
08-06-2025
- Business
- Yahoo
8 Common Mistakes Retirees Make With Their Social Security Checks
Beginning to take Social Security benefits can be an overwhelming process for retirees since there are lots of rules and regulations, often tucked into the fine print, so to speak. It's easy to make choices, or fail to, that can have a negative impact on your Social Security checks in big and small ways. Find Out: Read Next: Here are some common mistakes retirees make with their Social Security checks so you can hopefully avoid them. Many retirees decide to start collecting Social Security benefits as soon as they reach the minimum age of 62, often without fully understanding the long-term implications of beginning benefits. 'Claiming benefits early can lead to permanently reduced monthly payments,' said Christopher Stroup, CFP and owner of Silicon Beach Financial. 'Claiming your benefits at age 62 can result in decreased benefits upwards of 25% to 30% versus waiting until full retirement age.' Moreover, just because you postponed taking it at 62, for example, doesn't mean you have to keep waiting until you're 67. You can take it at any time in between and receive the prorated amount. Learn More: A related aspect of this, according to Patrick Ray, senior vice president at Wealth Enhancement Group, is not understanding the timing between when you file and when you first start receiving your checks. The Social Security Administration gives people roughly a three-month window from application to first receiving your checks. Ray explained that he works with many retirees that leave their work payroll upon retirement, which means they're no longer getting a paycheck, and often misinterpret the timing of when they'll get their first checks. 'So, if someone decides to retire in June, they probably should start the process in April as it turns out because that does not happen overnight.' Some retirees overlook the potential benefits that could be available through spousal claims, Stroup said. 'A spouse can claim benefits based on their own earnings record or up to 50% of the other spouse's benefit if it's higher. For couples where one spouse has significantly higher earnings, failing to strategize around spousal benefits can result in missed opportunities,' he explained. A big common mistake retirees make is not understanding that Social Security benefits can be taxable, depending on a retiree's total income. Stroup said, 'Many retirees forget to account for how their Social Security income will be taxed, which can influence their retirement income strategy.' Ray agreed, saying, 'People do not know that their Social Security [tax] lands anywhere between 15% and 85% of their benefit depending on what their household adjusted gross income is. So, it makes for an interesting discussion when someone finds out that their tax responsibility is short because they didn't withhold enough or they don't withhold anything,' he said. This is why it's critical to speak to a tax or financial advisor before you even take Social Security, Ray said. Another mistake is the lack of understanding how Social Security benefits impact their other retirement assets, Ray said. 'If the plan was to reduce what they take out of their retirement monies to otherwise coordinate with their need for monthly cashflow, a lot of people use Social Security as an added buffer of additional monies that they've all of a sudden come into when, in fact, it makes a ton of sense to consider reducing what they remove from their retirement assets.' Most of these mistakes, Ray said, can be chalked up to not planning appropriately and far enough in advance. 'The moral of the story is plan, plan, plan. You can't afford enough time to plan appropriately for what's best for you and your family. That's the takeaway.' He shared that 74% of people over the age of 50 do not have a written financial plan. Another common mistake Ray sees in his clients is people thinking they'll have more money to spend in retirement than they did when they worked, due to Social Security. 'It just goes back to planning and projecting and budgeting all aspects of what retirement looks like so that you're prepared to transition accordingly. Running financial projections is a big deal.' Many people don't consider how long they will live and how many years in retirement they truly need to fund, Ray said. He considers this another aspect of poor planning. 'If the males in your family have all died before 75 years old, it's reasonable to assume that you might not make it past 75 years old. But that doesn't mean that you shouldn't run a financial projection to see what it would look like in case you lived 85 years old or 90 years old and commensurate with the other thought process.' Not doing so means you risk running out of money because you live too long. Most of these mistakes can be avoided with thoughtful planning and the help of a financial advisor. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Things You'll Be Happy You Downsized in Retirement 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 8 Common Mistakes Retirees Make With Their Social Security Checks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
29-05-2025
- Business
- Bloomberg
Nvidia Delivers Solid Earnings Despite China Hit
Bloomberg's Ed Ludlow is joined by Nvidia CEO Jensen Huang to discuss the chipmaker's first-quarter earnings and the company's $8 billion hit from China. Plus Ayako Yoshioka, from Wealth Enhancement Group says earnings show Nvidia understands the outlook for AI growth. And D.A. Davidson Managing Director Gil Luria also explains what he wants to hear from Nvidia next as it competes with Chinese rivals. (Source: Bloomberg)
Bloomberg
29-05-2025
- Business
- Bloomberg
Bloomberg Technology: Nvidia Earnings Special
Bloomberg's Ed Ludlow is joined by Nvidia CEO Jensen Huang to discuss the chipmaker's first-quarter earnings and the company's $8 billion hit from China. Plus Ayako Yoshioka, from Wealth Enhancement Group says earnings show Nvidia understands the outlook for AI growth. And D.A. Davidson Managing Director Gil Luria also explains what he wants to hear from Nvidia next as it competes with Chinese rivals.
