Myths About Retirement Savings and Finances

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Myths about Retirement Savings and Finances

• Nathan Carlisle

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Myth 1  One Has to Wait Until 66 to Receive
Social Security
Many are under the impression social security is
under lock and key until one reaches the golden
age of full retirement, or 66 years of age. 
Did you know, depending on when one was born, a
person can qualify for social security at the age
of 62?  The longer one waits to receive Social
Security benefits, the larger the monthly payment
will be though if one waited to collect benefits
until the age of 70, monthly payments would not
continue to increase at that point.  Payments
will have reached a plateau.
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Myth 2  One Cannot Work While Collecting Social
Security
Choosing to work while collecting Social Security
is perfectly acceptable, though outside income
can reduce the SS benefit each month.  In 2015,
for example, if one is under the full retirement
age, a 1.00 deduction is removed from benefit
payments for every 2.00 one earns above the
annual limit.  For 2015, that limit is
15,720.00.  Interestingly, once one reaches full
retirement age, one can make a limitless amount
of money without any reductions in social
security benefits each month.
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Myth 3  One Can Withdraw Money from Ones IRA
without Penalty
Money can be withdrawn from ones IRA without
penalty, but one would have to wait until the age
of 59 ½ to take advantage of a penalty-free
status.  Before age 59 ½, a typical 10
early-withdraw penalty will apply as well
asapplicable income tax on the amount
withdrawnthis can become costly.  There are,
however, loopholes that one can use to bypass
the early-withdraw penalty and here are a few of
them  paying for college expensesthis would
apply for you, your spouse, your children or
grandchildren.  Tuition, books, room board and
other expenses are included qualifiers to become
exempt from early-withdraw penalties.  purchasi
ng a first homea penalty-free IRA distribution
of up to 20,000 for couples to buy or build a
first home for themselves, a child, a grandchild
or parent will bypass the penalty.
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• Thank you

For more myths check out our blog post here
http//www.nathancarlisle.com/blog/myths-about-ret
irement-savings-and-finances/