What gets you up in the morning? Do you need someone else to set expectations for you? Or do you flinch at being presented with a schedule and a set of expectations? If you landed on a deserted island, would you languish and aimlessly waste away, or would you set to the task of being rescued immediately? Do you prefer to create your own to-do list, or do you like to be given your tasks and deadlines?

I’d guess that most people would be likely to say that they prefer to set their own schedule and achieve their own goals. But the reality belies the fact. Most people are employees, not entrepreneurs. Because setting your own goals for the day, every day, week in and out, year in and out, is hard.

Beyond pluck, grit, perseverance, and luck, business success takes one trait above all: drive. Drive is what gets you up in the morning. It’s what puts you on the boat to America. It’s what makes you aspire to live in a better neighborhood, go to a better school, make more money.

When we think of famous inventors and entrepreneurs, we marvel at their drive. Thomas Edison kept pursuing new and better inventions, even after becoming rich and

famous (the motion picture came fifteen years after the light bulb). Henry Ford built bigger and more tightly integrated plants, and kept pushing, into aviation, agriculture— he even explored (with Edison) the idea of buying Wilson Dam in Alabama and creating a city 75 miles long. Steve Jobs famously launched the Mac, then, after being ousted from his company, kept his eye on the future and returned for a historic second act. Bill Gates took on IBM and won.

Drive is taking your talent to the next level, pursuing an opportunity to its conclusion, then pushing on for the next opportunity. Drive makes entrepreneurs, presidents, generals, historical figures, Popes.
Without drive, your success will always be limited. You’ll let external factors throw you off course. You’ll be seaweed, not a shark.
Drive is a muscle you can develop by seeking mentors who can inspire you. I was raised on famous UCLA basketball coach John Wooden’s Pyramid of Success, which celebrated excellence by focusing on drive. Wooden’s concluding line was: “Success is peace of mind which is a direct result of self-satisfaction in knowing you did your best to become the best you are capable of becoming.”

He didn’t say anything about the number of victories. Or fame. Or money. Rather, for Wooden, success was peace of mind. If you have a healthy success drive, you won’t be able to achieve peace of mind until you use your talent to make positive things happen, whether it’s on a local, national, or global scale. And when you’ve done it once, you’ll want to do it again, at a higher level.

When I was 22 and my Silicon Valley-based business became roiled in a struggle with my partner, my father suggested I come home for a while and do some menial labor like painting the house. He could see that the pressure of trying to succeed had broken my spirit, and I needed to remember the feeling of pride and accomplishment you could get from completing a simple task. So he hired my best friend from high school and me, both college grads now aimlessly floating about, to paint our house. He woke us at 6 a.m. to get started before the Alabama heat kicked in. We were on the ladder, paintbrush in hand, by 7. The task was grueling and mindless, but, looking back on that summer, the experience was transformative. Brushstroke by brushstroke, I regained my mojo. I regained the joy that came from a sense of accomplishment. I regained my drive.

Even now, I revert to simple tasks from time to time, so I regain the feeling of pride in accomplishment. That feeling of pride is called “drive.”

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This article was written by Will Jeakle from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network.

Credit scores were a well-kept secret for many years. That has changed as a result of recent initiatives by the Consumer Financial Protection Bureau and Fair Isaac Corporation (FICO), which provides the most commonly used credit scores based on its proprietary software.

By April 2016, more than 150 million consumer credit-card and loan accounts included free access to the FICO® scores used to manage those accounts.1 This is an important benefit. Your score can influence loan approval and terms for a variety of financial transactions, not only for major purchases such as a home or an auto loan but also for the interest rate and limits on a credit card, the cost of insurance premiums, and approval on a home rental. It might even affect a job application.

Three Key Digits

The FICO score is a three-digit number ranging from 300 to 850. The score is derived from a formula using five weighted components (see chart). Different versions of this score are available to lenders, and the score you see on your account may not be the same score that another lender would use. But it should be a good guideline.
Here are some tips that might be helpful if you want to improve your score or maintain a current high score:

• Use at least one major credit card regularly and pay your accounts on time. Setting up automatic payments could help avoid missed payments.
• If you miss a payment, contact the lender and bring the account up-to-date as soon as possible.
• Keep balances low on credit cards and other revolving debt. Don’t “max out” your available credit.
• Don’t open or close multiple accounts within a short period of time. Use older credit cards occasionally to keep them active. Only open accounts you need.
• Monitor your credit report regularly.

You can order a free credit report annually from each of the three major consumer reporting agencies at annualcreditreport.com or by calling (877) 322-8228. If you find incorrect information, contact the reporting agency in writing, provide copies of any corroborating documents, and ask for an investigation. For more information, visit consumer.ftc.gov/articles/0155-free-credit-reports.

1) Fair Isaac Corporation, 2016
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright 2016 Emerald Connect, LLC.

We economists like to remind investors that expansions don’t die of old age. Yet the markets have grown increasingly concerned about the risk of a U.S. recession as the economy nears the end of its tenth year of expansion.

That concern ratcheted up a notch toward the end of March 2019 when the yield curve inverted, with the yield of the 10-year U.S. Treasury note briefly falling below that of the 3-month Treasury bill.

What an inversion has meant in the past

The Nobel Prize-winning economist Paul Samuelson once joked that the stock market has predicted nine of the past five recessions. The bond market, on the other hand, has been a very reliable canary in the coal mine.

Over the past 50 years, a yield curve inversion lasting for a sustained period has preceded every one of the seven recessions in that time.

Yield curve inversions have preceded recessions

Note: Data are from January 2, 1968, through April 11, 2019.
Sources: Vanguard, Moody’s Data Buffet, and Federal Reserve Bank of St. Louis.

This time isn’t different…

Since the Federal Reserve began hiking short-term interest rates in 2015, the slope of the Treasury yield curve has flattened by more than 3 percentage points. And then, on March 22, 2019, the 10-year Treasury yield slipped to 2.44%, putting it just under the 3-month Treasury yield of 2.46%. The inversion lasted just five days, so it’s not (so far) the kind of persistent inversion that we’ve seen in the past before the onset of recessions.

Some subscribe to the view that an inversion in the current interest rate environment does not have the same power to predict a recession as in the past. Their reasoning is that the bond market has been distorted by the Fed’s massive quantitative-easing (QE) program, in which it bought longer-term Treasuries to hold down their yields.

While this environment is unusual, even unprecedented, our analysis suggests that the yield curve’s relevance as a growth signal endures in the QE era.1 We would therefore caution against ignoring what the yield curve can tell us or disregarding the warning of an economic slowdown that an inversion provides.

…but the timing might be

The lag between a yield curve inversion and the subsequent recession has varied considerably in the past. Over the last half century, it has ranged between 5 and 17 months. There are a number of reasons to think a recession this time around might take longer to materialize. The March inversion didn’t last long. Fed monetary policy is still accommodative by most measures, whereas historically during inversions it has been squarely in restrictive territory.

And recently, the Fed signaled it would be more patient in raising rates and might allow inflation to overshoot its 2% target, limiting the likelihood that short-term yields will move much higher anytime soon.

More broadly speaking, our quantitative assessment of the U.S. economy is that current fundamentals are healthier than they have been just before prior recessions, including the global financial crisis and the dot.com bust² Households have reduced debt over the past decade and corporate balance sheets still look solid (despite some weak links such as leveraged loans and high-yield debt in the energy sector).

All that is to say we believe that a yield curve inversion is still a reliable recession indicator—and that the next recession is probably not just around the corner. Our base case is a 35% chance of a recession in the next 12 months.

What do our projections mean for your portfolio?

With the economy expected to slow and tip into recession at some point, U.S. portfolio returns likely will be more muted over the next five years than they have been for the past five years.

But it’s not all bad news. We anticipate fixed income assets will benefit from a marginally higher interest rate environment and continue to provide diversification in periods of heightened macroeconomic and equity market volatility.

And keep in mind that recessions over the past 50 years have ranged in length between 6 and 18 months. If your investment time horizon is much longer than that, you’re likely to be better off staying the course and enduring the attendant volatility than attempting to time the economy and the markets.

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1 Roger Aliaga-Díaz, et al., 2018. Global Macro Matters—Rising Rates, Flatter Curve: This Time Isn’t Different, It Just May Take Longer. Valley Forge, Pa.: The Vanguard Group.

2 Davis, Joseph H., et al., 2018. Vanguard Economic and Investment Outlook for 2019: Down But Not Out. Valley Forge, Pa.: The Vanguard Group.

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Note:
All investing is subject to risk, including the possible loss of the money you invest. Investments in bonds are subject to
interest rate, credit, and inflation risk. Diversification does not ensure a profit or protect against a loss.

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of TD Ameritrade from September 28th – October 6th, 2018, among 1,503 U.S. adults aged 45 and older with over $250,000 in investable assets, including 750 who are financially independent or on the path to be.*

*“Financial independence” is defined as a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment. This document contains confidential information for use by TD Amer

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Health is a top priority for Americans in retirement

Along with spending time with family/friends and traveling

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Many actually believe that retiring earlier will help them live longer

Those pursuing financial independence also report having lower levels of stress

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Yet longer lifespans are also generating higher health costs

Americans currently delegate 8% of their monthly income to medical expenses

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Making healthcare costs the #1 barrier to pursuing financial independence

For 1 in 5 Americans, long-term and unexpected care costs for family are also a concern

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Many are maxing out their HSAs to cover these rising costs

As well as their IRAs and 401ks

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And plan to turn to Medicare as their top tool for support in retirement

Followed by supplemental and primary health care insurance

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Yet confidence in Medicare is lacking

Especially by those who have not yet retired

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Source:TheHarrisPollonbehalfofTD Ameritrade(October2018);n=1,503

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The question of asset ownership can be contentious in the event of a divorce, but even in the happiest marriage it may be helpful to understand the laws regarding ownership of property obtained before and during the marriage.

Currently, nine states have community property laws: Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington, and Wisconsin. (Alaska allows a married couple to opt for community property status.) In these states, all property earned or acquired by either spouse during their marriage is owned in equal shares by each spouse.

In other states, ownership is determined by “equitable distribution” laws, which means that property is divided fairly though not necessarily equally, typically by a judge if the couple cannot agree. If you have more than one home, the laws that affect your property ownership will depend on the state where you are officially “domiciled” according to IRS rules.

If you are domiciled in a community property state, identifying community property and income can be important when filing separate tax returns. Depending on the state, income derived from separate property may be community or separate. The IRS generally considers the following as separate property. (Reference to “marriage” in this list also refers to a registered domestic partnership.)

• Property owned separately before marriage
• Money earned while domiciled in a non–community property state
• Property received separately as a gift or inheritance during marriage
• Property bought with separate funds, or acquired in exchange for separate property, during marriage
• Property converted from community property to separate property through an agreement valid under state law
• The proportion of property bought with separate funds, if part was bought with community funds and part with separate funds.

For estate planning purposes, there are no restrictions on how each spouse can give away his or her half of the community property, and a spouse is not required to leave his or her half to the surviving spouse, though many people do. Be sure to consult a legal or estate planning professional familiar with the laws of your state before taking action regarding taxes or property distribution.

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This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2018 Broadridge Investor Communication Solutions, Inc.

On December 22, 2017, President Trump signed a sweeping $1.5 trillion tax-cut package that fundamentally changes the individual and business tax landscape.

The centerpiece of the legislation is a permanent reduction of the corporate income tax rate from 35% to 21%. Among other business provisions are a shift to a territorial tax system (in which businesses pay taxes only on U.S. income), incentives to repatriate foreign profits, repeal of the corporate alternative minimum tax, and a 20% deduction (through 2025) on certain income from pass-through businesses such as limited liability companies.

While most corporate provisions are permanent, the following provisions for individual taxpayers apply only to tax years 2018 through 2025 unless indicated otherwise.

Individual Income Tax Rates

The legislation replaces five of the seven current marginal income tax bracket rates (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with corresponding lower rates (see chart). The legislation also establishes new marginal tax brackets for estates and trusts, and replaces existing “kiddie tax” provisions (under which a child’s unearned income is taxed at the parents’ tax rate) by effectively taxing a child’s unearned income using the estate and trust rates.

Standard Deduction and Personal Exemptions

The legislation nearly doubles standard deduction amounts to $12,000 for single filers (and married taxpayers filing separately), $18,000 for heads of household, and $24,000 for married taxpayers filing jointly. This will result in fewer taxpayers itemizing deductions. 1 Additional standard deduction amounts for the elderly and the blind are unchanged.

The law repeals the deduction for personal exemptions. For many families, this should be balanced by the higher standard deduction and/or increased child tax credit, but families with three or more children and/or dependent college students may see a negative impact. 2

Itemized Deductions

The overall limit on itemized deductions that applied to higher-income taxpayers (commonly known as the “Pease limitation”) is repealed, and the following changes are made to individual deductions:

State and local taxes — The combined itemized deduction for state and local property taxes and state and local income taxes (or sales taxes in lieu of income) is limited to $10,000 ($5,000 if married filing separately).

Home mortgage interest — Qualifying mortgage interest can be deducted on up to $750,000 of mortgage debt ($375,000 for married filing separately). For debt incurred on or before December 15, 2017, the prior $1 million limit will apply. No deduction is allowed for interest on home equity indebtedness.

Medical expenses — The adjusted gross income (AGI) threshold for deducting unreimbursed medical expenses is retroactively reduced from 10% to 7.5% for tax years 2017 and 2018 only. The 7.5% AGI threshold also applies for purposes of calculating the alternative minimum tax (AMT) for the two years.

Charitable contributions — The 50% AGI limitation for deducting certain cash gifts is increased to 60%; other limits generally remain the same. Casualty and theft losses — The deduction for personal casualty and theft losses is eliminated, except for casualty losses suffered in a federal disaster area.

Miscellaneous itemized deductions — Deductions subject to the 2% AGI threshold, including tax-preparation expenses and unreimbursed employee business expenses, are no longer deductible.

Child Tax Credit

The child tax credit is doubled from $1,000 to $2,000 for each qualifying child under age 17. The maximum amount of the credit that may be refunded is $1,400 per qualifying child, and the earned income threshold for refundability falls from $3,000 to $2,500. The income level at which the credit begins to phase out is significantly increased to $400,000 for married couples filing jointly and $200,000 for all other filers. The credit will not be allowed unless a Social Security number is provided for each qualifying child.

A new $500 nonrefundable credit is available for qualifying dependents who are not qualifying children under age 17 (e.g., college students).

Alternative Minimum Tax (AMT)

The AMT is a separate, parallel federal income tax system with its own rates and rules;for example, the AMT effectively disallows the standard deduction and some itemizeddeductions. The legislation reduces the number of taxpayers subject to the AMT byincreasing AMT exemption amounts and the income threshold at which exemptionsbegin to phase out.

Other Changes of Note

• The Affordable Care Act individual responsibility payment (the penalty for failing to have adequate health insurance coverage) is permanently repealed starting in 2019.
• The federal estate and gift tax exemption is doubled to about $11.2 million ($22.4 million for married couples) in 2018, with annual inflation adjustments.
• Starting in 2018, Roth conversions cannot be reversed by recharacterization.
• For divorce or separation agreements executed after December 31, 2018 (or modified after that date to apply this provision), alimony and separate maintenance payments are not deductible by the paying spouse, and are not included in the income of the recipient.

1–2) CNNMoney, December 20, 2017
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2018 Broadridge Investor Communication Solutions, Inc.

A 2017 survey found that only 42% of U.S. adults — and only 36% of those with children under age 18 — had a will or a living trust.1 (A living trust can serve some but not all functions of a will; you should have a will even if you have a trust.)

The most common reasons given for not taking this simple step are procrastination and not having enough assets.2 In fact, creating a will does not have to be difficult or time- consuming, and everyone should have one regardless of his or her assets. Here are three good reasons.

Distribute property. A will enables you to leave your property at your death to anyone you choose: a surviving spouse, a child, other relatives, friends, a trust, or a charity. Transfers through your will take the form of specific bequests (e.g., heirlooms, jewelry, or cash), general bequests (e.g., a percentage of your property), or a residuary bequest of what’s left after your other transfers. It is generally a good practice to name backup beneficiaries.
Your spouse may have certain rights with respect to your property, regardless of the provisions in your will. Also, assets for which you have already named a beneficiary pass directly to the beneficiary (e.g., life insurance, pension plans, IRAs).

Appoint a guardian. In many states, a will is the only way to specify who you want to act as legal guardian for your minor children if you die. You can name a personal guardian, who takes personal custody of the children, and a property guardian, who manages the children’s assets. This can be the same person or different people.

Name an executor. A will allows you to select an executor to act as your legal representative after your death. An executor carries out many estate settlement tasks, including locating your will, collecting your assets, paying legitimate creditor claims, paying any taxes owed by your estate, and distributing any remaining assets to your beneficiaries.

Though it is not a legal requirement, a will should generally be drafted by an attorney. There may be costs involved with the creation of a will or a trust, the probate of a will, and the operation of a trust.

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1–2) Caring.com, 2017

This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2018 Broadridge Investor Communication Solutions, Inc.

An Introduction to Trusts
You may think trusts are only for wealthy people, but that’s not necessarily the case. A properly constructed trust can serve many purposes for families of more modest means. A trust might help avoid the time-consuming and costly probate process, maintain control of a legacy for your heirs, provide for a dependent with special needs, or make a substantial contribution to your favorite charity.

Legal Control of Assets
A trust is a legal arrangement in which one person or institution controls property given by another person for the benefit of a third party. The person giving the property is referred to as the trustor (or grantor), the person controlling the property is the trustee, and the person for whom the trust operates is the beneficiary. With some trusts, you can name yourself as the trustor, the trustee, and the beneficiary. Although you may be hesitant to give up control of your assets, in some cases it might be worthwhile to choose an independent trustee who would be subject to strict legal requirements in administering the trust.

Testamentary vs. Living Trusts
A testamentary trust becomes effective upon your death and is usually established by your last will and testament. It enables you to control the distribution of your estate (and often is used to name a trustee for assets left to minor children), but it does not avoid probate. You can change or revoke a testamentary trust during your lifetime. A living trust takes effect during your lifetime. When you set up a living trust, you transfer the title of all the assets you wish to place in the trust from you as an individual to the trust. Technically, you no longer own the transferred assets. If you name yourself as trustee, you maintain full control of the assets and can sell or give them away as you see fit. However, this option may negate any estate tax benefits. Living trusts can be revocable or irrevocable. A revocable trust can be dissolved or amended at any time while the grantor is still alive. An irrevocable trust, on the other hand, is generally difficult to modify or revoke.

Special-Purpose Trusts
Trusts, whether testamentary or living, can be established for a variety of specific purposes. Here are three of the most common. Incentive trust — Makes the transfer of assets to heirs contingent on their meeting goals or expectations, such as attaining higher education or starting a family. Supplemental or special-needs trust — Can help provide for a disabled child and may ensure that the child qualifies for government assistance programs. Charitable trust — Enables you to provide a charitable organization with a regular income for a set period or a lump sum at the end of the period. There are costs associated with creating and maintaining a trust, and the use of trusts involves a complex web of tax rules and regulations. Consider the counsel of an experienced estate planning professional and your legal and tax advisors before implementing a trust strategy.

This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2018 Broadridge Investor Communication Solutions, Inc.

Employer-sponsored retirement plans are more valuable than ever. The money in them accumulates tax deferred until it is withdrawn, typically in retirement. Distributions from a tax-deferred retirement plan such as a 401(k) are taxed as ordinary income and may be subject to a 10% federal income tax penalty if withdrawn prior to age 59½. And contributions to a 401(k) plan actually reduce your taxable income.

But figuring out how to manage the assets in your retirement plan can be confusing, particularly in times of financial uncertainty.

Conventional wisdom says if you have several years until retirement, you should put the majority of your holdings in stocks. Stocks have historically outperformed other investments over the long term. That has made stocks attractive for staying ahead of inflation. Of course, past performance does not guarantee future results.

The stock market has the potential to be extremely volatile. The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Is it a safe place for your retirement money? Or should you shift more into a money market fund offering a stable but lower return?

And will the instability in the markets affect the investments that the sponsoring insurance company uses to fund its guaranteed interest contract?

If you’re participating in an employer-sponsored retirement plan, you probably have the option of shifting the money in your plan from one fund to another. You can reallocate your retirement savings to reflect the changes you see in the marketplace. Here are a few guidelines to help you make this important decision.

Consider Keeping a Portion in Stocks

In spite of its volatility, the stock market may still be an appropriate place for your investment dollars — particularly over the long term. And retirement planning is a long-term proposition.

Since most retirement plans are funded by automatic payroll deductions, they achieve a concept known as dollar-cost averaging. Dollar-cost averaging can take some of the sting out of a descending market.

Dollar-cost averaging does not ensure a profit or prevent a loss. Such plans involve continuous investments in securities regardless of the fluctuating prices of such securities. You should consider your financial ability to continue making purchases through periods of low price levels. Dollar cost averaging can be an effective way for investors to accumulate shares to help meet long-term goals.

Diversify

Diversification is a basic principle of investing. Spreading your holdings among several different investments (stocks, bonds, etc.) may lessen your potential loss in any one investment.

Do the same for the assets in your retirement plan.

Keep in mind, however, that diversification does not guarantee a profit or protect against investment loss; it is a method used to help manage investment risk.

Find Out About the Guaranteed Interest Contract

A guaranteed interest contract offers a set rate of return for a specific period of time, and it is typically backed by an insurance company. Generally, these contracts are very safe, but they still depend on the security of the company that issues them.

If you’re worried, take a look at the company’s rating. The four main insurance company rating agencies are A.M. Best, Moody’s, Standard & Poor’s, and Fitch Ratings. A.M. Best ratings are based on financial conditions and operating performance; Fitch Ratings, Moody’s, and Standard & Poor’s ratings are based on claims-paying ability. You should be able to find copies of these guides at your local library.

Periodically Review Your Plan’s Performance

You are likely to have the chance to shift assets from one fund to another. Use these opportunities to review your plan’s performance. The markets change. You may want to adjust your investments based on your particular situation.

Click here to view the original article.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2016 Emerald Connect, LLC

Estimating your future Social Security benefits used to be a difficult task, but not any longer. For an estimate of your projected benefits, go to www.ssa.gov/estimator. The retirement estimator gives estimates based on your actual Social Security earnings record.

The website form will ask you for a number of facts, including your name, Social Security number, date and place of birth, your mother’s maiden name, additional information you provide about future earnings, and the age at which you expect to stop working.

Based on this information and your actual earnings history as maintained by the Social Security Administration, the Retirement Estimator generates an estimate of the amount you would receive if you were to retire at age 62 (the earliest date you can receive benefits), the amount if you waited until full retirement age (which currently ranges from 65 to 67, based on year of birth), and the larger benefit you would receive if you continued working until age 70 before claiming retirement benefits.

It’s interesting to note that the 2015 Social Security Trustees Report includes a warning about the serious problems facing Social Security in the future. The trustees indicated that program costs (benefits paid) have been more than non-interest income (Social Security payroll taxes) since 2010, and they expect this situation to continue. Without changes, the Social Security Trust Fund will be exhausted by 2034 and there will be enough money to pay only about 79 cents for each dollar of scheduled benefits at that time, declining to 73 cents by 2089 (based on the current formula).1 This is a reminder that taxpayers are ultimately responsible for funding their own retirements and that their future Social Security benefits may be lower than indicated by the Retirement Estimator.

Source: 1) Social Security Administration, 2015

Click here to read the original article.

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2016 Emerald Connect, LLC