Summary

In this conversation, Amy and Mike discuss the complexities of Social Security claiming strategies for couples, using three case studies to illustrate different scenarios. They emphasize the importance of personal circumstances, longevity protection, and the integration of Social Security decisions into a broader financial plan. The discussion also touches on the significance of survivor benefits and the need for individuals to consider their unique situations when making these decisions.

Chapters

00:00 Understanding Social Security Decisions for Couples

08:54 Case Study 1: Jack and Jill's Retirement Planning

12:52 Case Study 2: Jack and Jill's Age Gap Considerations

15:40 Case Study 3: The Younger Higher Earner

18:30 Broader Considerations in Social Security Planning

Takeaways

• Social Security decisions are highly personal and vary by individual circumstances.

• Understanding spousal benefits is crucial for married couples.

• Delaying Social Security can provide longevity protection.

• Calculators can help maximize Social Security benefits, but personal goals matter more.

• Survivor benefits play a significant role in claiming strategies.

• Health status and life expectancy should influence claiming decisions.

• Integrating Social Security into a total financial plan is essential.

• Different claiming strategies can impact overall retirement income.

• It's important to consider all available benefits, including disability and survivor benefits.

• Planning for Social Security should account for potential changes in financial needs.

Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Summary

In this conversation, Mike and Amy delve into the complexities of Social Security benefits as they pertain to couples. They discuss the two primary benefits that couples need to be aware of: spousal benefits and survivor benefits.

Takeaways

• Understanding Social Security benefits is crucial for married couples.

• Couples should be aware of spousal and survivor benefits.

• Claiming strategies can significantly impact benefits received.

• The higher earner should ideally wait until age 70 to claim.

• Survivor benefits can be claimed as early as age 60.

• Previous marriages can affect eligibility for benefits.

• It's essential to consider the timing of claims for optimal benefits.

• Financial planning is vital for navigating Social Security complexities.

• Consulting with a financial planner is recommended for couples.

• Decisions regarding benefits are more complex for couples than individuals.

Chapters

00:00 Understanding Social Security Benefits for Couples

03:16 Exploring Spousal Benefits

08:53 Navigating Survivor Benefits

14:33 Considering Previous Marriages and Benefits

Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Summary

Amy and Mike talk about the complexities of Social Security Retirement Benefits, focusing on its significance for retirees, the intricacies of claiming benefits, and the impact of taxation. They discuss eligibility requirements, the importance of timing in claiming benefits, and the potential shortfall of the Social Security Trust Fund, emphasizing the need for personalized financial planning.

Takeaways

Social Security is a crucial income source for most retirees.

Understanding eligibility is key to maximizing benefits.

Claiming decisions can significantly affect lifetime income.

Delaying benefits can lead to higher monthly payments.

Social Security benefits are indexed to inflation.

Taxation of benefits can impact overall retirement income.

Consulting resources like ssa.gov is essential for clarity.

The Social Security Trust Fund faces potential shortfalls.

Personalized financial planning is vital for retirement decisions.

Claiming strategies should consider individual circumstances.

Chapters

00:00 Understanding Social Security Basics

06:29 Exploring Retirement and Survivor Benefits

11:10 Claiming Strategies: Timing is Everything

17:47 Calculating Benefits: The 35-Year Rule

20:23 Taxation of Social Security Benefits

22:06 Addressing the Social Security Shortfall

25:22 Conclusion and Next Steps

Submit a question: info@operationretirementreadiness.com

YouTube Channel - @OperationRetirementReadiness

Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Summary In this episode, Mike and Amy address listener questions regarding financial planning for military families, focusing on the balance between retirement savings and education funding. In their answer to the second question, they discuss foundational financial steps, the importance of emergency funds, debt management, and life insurance. The conversation emphasizes the need for strategic planning and trade-offs in achieving financial goals while preparing for retirement.

takeaways

• Balancing retirement and education savings is a common struggle for families.
• It's important to consider your family's philosophy on supporting kids.
• You can't get loans for retirement, but you can for education.
• Make sure you're contributing enough to get the full match from the government.
• Having an emergency fund is essential for financial stability.
• Pay down high-interest debt to avoid unnecessary costs.
• Life insurance is crucial for families with young children.
• Diversifying across accounts can provide more flexibility.
• You need to start thinking about your post-military life early.
• Living on less than you earn is key to financial success.

Chapters

00:00 Introduction

02:28 Balancing Retirement and College Savings

12:48 Considerations for Military Families

13:19 Foundational Steps for Financial Stability

18:53 Planning for Long-Term Care and Big Purchases

21:06 Living Below Your Means for Financial Success

Submit a question: info@operationretirementreadiness.com Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Summary

In this episode Amy and Mike discus the financial value of the Blended Retirement System (BRS) pension and how to determine how much more one would need to earn in a civilian job to equate to the value of the pension.

Takeaways

• Military members often consider separating at various points during their career

• Many don’t really know how much more they’d need to earn or how much their pension is worth

• The financial value of the BRS pension can be approximated using a Single Premium Immediate Annuity (SPIA)

• Individuals considering separating from the military should consider numerous factors such as taxes, healthcare benefits, and quality of life

• Calculations should be done based on individual circumstances and assumptions

Chapters

00:00 Valuing the BRS Pension

02:06 Considering Factors in the Retirement Decision

03:50 Using a SPIA to Approximate the Pension Value

08:19 Quotes for the SPIA

11:27 Calculating the Amount Needed to Replace the Pension

19:30 Considering VA Disability and Other Benefits

25:16 The Need for a Retirement Calculator

Submit a question: info@operationretirementreadiness.com Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Summary

In this conversation, Amy and Mike discuss long-term care insurance and how to plan for long-term care. They explain the different types of insurance available, including traditional long-term care insurance and hybrid long-term care insurance. They also discuss the option of self-insurance and the importance of having a plan in place. They highlight the uncertainty and cost associated with long-term care and emphasize the need for independent advice when making decisions about long-term care insurance.

Chapters

00:00 Planning for Long-Term Care in Retirement

06:05 Options for Dealing with Long-Term Care

10:30 The Challenges of Long-Term Care Insurance

12:52 The Importance of Having a Plan for Long-Term Care

12:55 Understanding the Types of Long-Term Care Insurance

16:19 Exploring the Federal Long-Term Care Insurance Policy

20:09 The Benefits of Hybrid Long-Term Care Insurance

22:10 Considering Annuities as an Insurance Product for Long-Term Care

Takeaways

There are different types of long-term care insurance available, including traditional long-term care insurance and hybrid long-term care insurance.

Self-insurance is an option, but it is important to consider the high cost and uncertainty associated with long-term care.

Having a plan in place for long-term care is crucial, and it is recommended to seek independent advice when making decisions about long-term care insurance.

Long-term care insurance can be expensive and complex, so it is important to understand the different policies and options available.

Operation Retirement Readiness: www.operationretirementreadiness.comSchedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/ Schedule a consultation with Amy: https://www.instarfp.com/contact Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

Episode 018 - BRS Lump Sum

Summary

In this conversation, Mike and Amy continue their 3-part series Blended Retirement System focusing on the lump sum payment option at retirement.

Takeaways

• The lump sum payment option in the blended retirement system allows service members to receive a portion of their pension at retirement.

• The lump sum payment is calculated based on the present value of the pension from retirement until the age of 67.

• Taking the lump sum payment reduces the monthly pension payout until the age of 67.

• Factors to consider when deciding whether to take the lump sum payment include tax implications, discount rate, and personal financial goals.

• Consulting with a tax advisor and financial planner is recommended before making the decision.

Chapters

00:00 Introduction to the Lump Sum Payment Option

03:13 Calculating the Lump Sum and Present Value

06:29 Understanding the Present Value of the Pension

10:16 Calculating the Lump Sum Amount

19:19 Reasons to Consider Taking the Lump Sum Payment

20:17 Important Considerations and Conclusion

Links

https://militaryfinancialadvisors.org/blended-retirement-system-evaluate-the-lump-sum-option/

https://militarypay.defense.gov/Calculators/Blended-Retirement-System-Standalone-Calculator/

Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.

In this episode Mike and Amy continue their series on the military’s Blended Retirement System focusing on the mid-career Continuation Pay. Takeaways - Continuation pay is a mid-career retention tool in the Blended Retirement System (BRS) that incentivizes service members between their seventh and 12th years of service. - Continuation pay does not impact the pension. - Each service sets the multiplier for continuation pay, which can range from 2.5 times to 13 times the monthly base pay. - The service obligation for continuation pay is four years from when the paperwork is executed. - Service members can choose to receive the pay as a lump sum or spread it over multiple years. - It's important to consider the tax implications and TSP contributions when making the decision. - The Army has a pending change to the window for requesting continuation pay, so service members should stay informed. - It's crucial not to leave this money on the table unless you’re certain you’re leaving the service soon. Chapters 00:00 Introduction to Continuation Pay in the Blended Retirement System 03:07 Understanding Continuation Pay as a Mid-Career Retention Tool 07:32 Exploring the Multiplier and Service Obligation of Continuation Pay 09:35 The Pending Change to the Army's Window for Requesting Continuation Pay 13:07 Continuation Pay in the Army and Marines 16:20 Maximizing Continuation Pay Benefits and Conclusion Links DOD Memo: https://militarypay.defense.gov/Portals/3/Documents/BlendedRetirementDocuments/Continuation%20Pay%20Rates%202024.pdf?ver=_TMhTRRq5EgN3AMoZvwWog%3D%3D USAF: https://www.myairforcebenefits.us.af.mil/Benefit-Library/Federal-Benefits/Continuation-Pay-?serv=26 Army: https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Continuation-Pay?serv=125 Navy: https://www.mynavyhr.navy.mil/Portals/55/Messages/NAVADMIN/FACT_SHEETS/Fact_Sheet_NAV_118_23.pdf?ver=tuyon2ijtBCS7xJJkWlybg%3D%3D Marines: https://www.marines.mil/News/Messages/Messages-Display/Article/3240458/calendar-year-2024-continuation-pay-program-for-blended-retirement-system-parti/ Operation Retirement Readiness: www.operationretirementreadiness.com Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/ Schedule a consultation with Amy: https://www.instarfp.com/contact Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.