How to fix errors in your Social Security benefits
Posted at April 30th, 2012 by CarynMichelle Singletary’s article titled “The numbers don’t add up? How to fix errors in your Social Security benefits”, published in The Washington Post, explains how to go about fixing your Social Security benefits in your Social Security statements. In April 2011, the Social Security Administration stopped mailing annual statements to all individuals for budget reasons. However, for fiscal 2012, the Social Security Administration will resume mailing annual Social Security statements, but to individuals who are 60 years and older. For everyone else, the Social Security Administration is going to be looking into sending them online statements. Regardless, one may be able to estimate his/her Social Security benefits at www.ssa.gov and searching for “Retirement Estimator.”
Everyone should look at his/her Social Security statements. If you find any errors, you should contact the Social Security Administration. “One of the reasons your record could be incorrect is that you got married or divorced and changed your name but never reported the change to Social Security.” If you discover income errors, you will need to provide proof of income to the Social Security Administration. Such proof may be W-2s, old tax returns, or pay stubs.
Make Your Retirement Plan Work
Posted at April 24th, 2012 by CarynThe article titled “How to Make Your Retirement Plan Work Harder”, written by Brett Arends and published in The Wall Street Journal, provides individuals with tips on making their retirement plans work harder for them. That’s what we all want to hear, right?! Individuals with 401(k)s should follow the five steps below:
1. Take control.
- Look and see what all of your available investment choices are through your 401(k). It is extremely important to know what options are available for you and which are best for you.
2. Cut your costs.
- “Many 401(k) plan providers stock their plans with high-fee mutual funds.” A fund that charges you an extra 1% a year may not be worth it as it may end up costing you most of your tax benefits.
3. Lighten up on U.S. stocks.
- “U.S. equities start 2012 looking relatively expensive.” Lighten up U.S. stocks in your 401(k) as they seem to be mediocre, at best.
4. Look internationally.
- If your 401(k) plan offers international options, it may be worthwhile to take advantage of such offers. For example, “Western European markets fell nearly 30% from last year’s peak.”
5. Review your bond funds.
- “As a general rule, your 401(k) and other tax shelters are where to hold the bond portion of your portfolio. That’s because bonds are much more vulnerable to taxes than stocks.”
Medical authorization form for your minor child(ren)
Posted at April 17th, 2012 by CarynAre you planning on a vacation with your significant other soon and plan to leave your minor child or children at home in the care of another? If yes, it is extremely important for you to complete a medical authorization form for your minor child or children! Here is a sample Medical Authorization form that Lynn Caudle Boynton, Esq. created for your use.
If you have any questions, please contact Lynn Caudle Boynton, Esq. or Caryn Siegel Wetmore, Esq. at 301-294-3333.
Wonderful resources for military families
Posted at April 10th, 2012 by CarynThe article titled “Helping military families with their financial needs”, written by Kimberly Lankford and published in The Washington Examiner, provides military families with information on the following two Kiplinger financial resources: (1) Financial Field Manual: The Personal Finance Guide for Military Families (kiplinger.com/money/military/pdfs/Military_Families_Final.pdf); and (2) a Military Finances Special Report (which can be found on kiplinger.com). These two new resources “focus on some of the unique financial challenges that service members face, as well as the special benefits that help them save for the future and protect their families.” For example, the Financial Field Manual provides military families with savings tips with regard to low-investments through the federal Thrift Savings Plan.
Olde Key Title would like to offer our services to active military persons/couples. We would like to provide active military persons/couples with free simple wills, powers of attorney, and advanced medical directives. If you are an active military person who would like to speak with us regarding our services, please contact Lynn Caudle Boynton or Caryn S. Wetmore at 301-294-3333.
Your Maryland deed is public record
Posted at April 3rd, 2012 by CarynLynn Caudle Boynton recently received this letter from National Record Service, Inc. Beware, however, this is a scam. This letter is informing Lynn that she can get a copy of her deed by ordering a certified copy through this company for a fee of $59.50. Many of Lynn’s friends, family, and clients have also received similar letters on a yearly basis. Olde Key Title would like you and your family to be aware that this is a scam. All Maryland deeds are public records and are available to the public at no cost. All anyone needs to do is go to http://mdlandrec.net and sign up for a user name and password (a free service). Here, by county, you will be able to view your deeds, deeds of trust, notes, releases, etc. for free. If for some reason you have difficulty with the website, do not hesitate to contact Olde Key Title at 301-294-3333. Olde Key Title will help you locate the document that you need a copy of.
Tips on Retirement Savings
Posted at March 26th, 2012 by CarynAccording to The Wall Street Journal’s article titled “How to Catch Up With Retirement Savings”, written by Tom Lauricella, [i]t may not be easy for late starters to catch up on retirement savings, but it’s not a lost cause.” Everyone must not lose sight of the end goal and the reality of such goal: to have as much money as possible upon retirement. The higher the risk, the potential for higher return, but such strategy may not be worth it considering that one is trying to catch up. “Instead, the most effective way to build a retirement cushion after a late start is a combination of being aggressive about saving money, putting off retirement and taking Social Security as late as possible.” Being disciplined about budgeting and saving is extremely important; every penny counts. Additionally, by putting off Social Security, one has “more time to save, more time for those savings to grow, and fewer years of retirement to cover with savings.”
To read the article in its entirety, which provides numerical examples, please click here.
It’s Your Future
Posted at March 19th, 2012 by CarynThe article titled “Don’t Let Grown Kids Ruin Your Future”, written by Ruthie Ackerman and published in The Wall Street Journal, provides parents with tips with their futures with regard to their grown children. Because of the current economy, many grown children are moving back in with their parents and/or relying on their parents for financial support. “The crux of the matter: The kids are out of work, out of money, and maxed out. But so are Mom and Dad, who have seen their own retirement nest eggs cracked, their retirement incomes shrunk, and even the value of their nests—the family home—fall.” Nevertheless, parents are financially supporting their grown children.
Financial advisors stress that parents should not jeopardize their own futures for the benefit of their grown children. Tips that parents should follow, who find themselves in this position, are the following:
1. Don’t write a blank check.
- Make sure that your bills are paid before paying for your grown children’s bills.
2. Set limits.
- Tell your children what you do/not feel comfortable paying for and when you will cease all support.
3. Be the grown-up.
- Be honest with your children and explain to them that you are jeopardizing your savings.
4. Reassess your goals.
- Develop a new plan to get yourself back on your financial and savings track.
5. Insist they grow up.
- Hold your children accountable, otherwise, they will never learn.
Important and Timely Tax Tips
Posted at March 13th, 2012 by CarynThe article titled “Prepare to File Secure Tax Returns”, published in the AARP Bulletin, provides the following tips with regard to securely filing your tax returns:
- Do not use public wireless networks to prepare and file your tax returns. Instead, use only secured networks. Additionally, if you receive an email that says it is from the IRS, proceed cautiously. Do not reply, open any attachments, etc.
- Make sure that when mailing your completed tax returns that you use a blue U.S. Postal Service drop box or take them to the post office.
- Do not fax financial information to your accountant. Instead, mail or scan/email your accountant your sensitive financial information and documents.
- Do not provide any personal information (especially social security numbers) to anyone over the telephone.
Beware of scammers! Tax time is a scammer’s ideal time to steal your identity.
Tips on retirement funds
Posted at March 6th, 2012 by CarynThe article titled “Tapping Into Retirement Funds: When and how you should do it?”, written by Karen Finucan Clarkson and published the Gazette Seniors, provides individuals with helpful tips regarding retirement funds. With today’s average life expectancy for both men and women high, “‘[r]etirement could end up being a third of your life, or half as long as you’ve already lived’”. It all depends on when you retire and how much money you have saved. Once you retire, it is likely that you will have to support yourself financially for 20 to 30 years.
According to Jim Ruth, a certified financial planner and founder of Potomac Financial Group in Gaithersburg, “‘[t]he biggest mistake people make in retirement is not doing Social Security right’”. For most, it makes the most financial sense to delay filing for Social Security benefits until the age of 70. In actuality, “[g]ender, health, and marital status play a role in deciding when to begin receiving Social Security.” Mr. Ruth’s general advice for single women is to take Social Security as late as possible unless they are in poor health and have a family history of females dying young. Mr. Ruth’s general advice for single men is to take Social Security earlier than single women, sometime between 66 and 67 years of age, as men do not live as long as women.
Couples need to strategize when it comes to when to taking out Social Security. According to Mr. Ruth, “[u]nder File and Suspend, the higher-earning spouse, upon reaching full retirement age, files for Social Security benefits and then immediately suspends them. The act of filing opens the door for the lower-earning spouse to begin receiving spousal benefits at retirement age, which comes to 50 percent of his or her spouse’s benefit. The higher-earning spouse can then continue to work or draw on income from an IRA, allowing Social Security benefits to accrue. Then, at age 70, each spouse can begin collecting maximum retirement benefits. The delay in tapping into the higher-earning spouse’s benefits also could result in a larger survivor benefit for the lower-earning spouse.”
If you need any assistance with your estate planning, please contact Caryn Siegel Wetmore, Esq. and Lynn Caudle Boynton, Esq. at 301-294-3333. If you need a referral to a local financial planner, please contact us for that as well. We would be happy to help.
To read the article in its entirety, please click here.
Pepco’s tips to customers
Posted at February 28th, 2012 by CarynOn Pepco’s website, Pepco provides five tips to customers to help them as well as Pepco be better prepared for severe storms. Pepco’s five tips are the following:
1. Assemble a storm kit.
- In your storm kit, be sure to include nonperishable foods, bottles of water, a phone (either a cell phone or a phone with a cord), a flashlight, a battery-powered radio, any and all medications, and any and all infant supplies if applicable.
2. Develop an emergency plan and practice it regularly.
- Identify the special needs of any and all family members, including infants and elderly persons. Be sure that everyone knows this plan and that this plan is practiced regularly.
3. Protect electronic equipment.
- Plug electronic equipment, such as computers and TVs, into surge protectors.
4. Update your contact information.
- Call Pepco’s Customer Care Service Center at 202-833-7500 to update your contact information (your phone number in particular).
5. Sign up for Emergency Medical Equipment Notification Program.
- Customers who rely on electricity for their life-support equipment can learn of planned outages and severe weather that may interrupt power. To enroll, call Pepco at 202-833-7500.