Money Matters

Brought to you by: Community Partner Vision Financial Group, Inc.

You’ve got plenty of choices these days for things to worry about. Have you ever heard the Wall Street expression, “markets climb a wall of worry?” It’s the idea that financial markets are constantly on edge. Traders fret about how long a market rally can continue before it runs into trouble. Worry shifts from one news event to the next as traders attempt to build a case whether it’s time to go “risk-off” with a portfolio strategy.1

If you’re looking for something to worry about, you’ve got plenty of choices these days: the Delta variant, inflation, jobs, vaccines, Federal policy, taxes, unemployment, and so on. There’s no shortage of headlines to help boost investors up the wall. But by early August, the Standard and Poor’s (S&P) 500 index notched its 42nd record closing of 2021. And while past performance is no guarantee of future results, it’s important to keep in mind the S&P 500 has moved higher despite the wide range of economic and financial concerns.2

Our role as financial professionals is to help guide and equip clients with the tools they need regardless of what news “worries” the financial markets. We work with professionals who monitor the economy and interpret how the recent news may influence the overall trends. If you find yourself worried about the financial markets, please reach out. We’d welcome the chance to hear your thoughts.

-Vision Financial Group 

4505 Pine Tree Circle, Birmingham, AL 35243

www.vision-financialgroup.com

205-970-4909   

Citations

1. Investopedia.com, December 4, 2020
2. MarketWatch, August 3, 2021

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index .Investment Advisory services offered through Investment Advisors, a division of Concourse Financial Group Securities, Inc., a Registered Investment Advisor. Securities offered through Concourse Financial Group Securities, Inc, a registered broker-dealer and member of FINRA & SIPC. Vision Financial Group, Inc. is independent of Concourse Financial Group Securities, Inc. 

 

Money Matters

Brought to you by: Community Partner Vision Financial Group

Whether you want to leave work at 62, 67, or 72, claiming the retirement benefits you are entitled to by federal law is no casual decision. You will want to consider a few key factors first.

1. How long do you think you will live? If you have a feeling you will live into your nineties, for example, it may be better to claim later. If you start receiving Social Security benefits at or after Full Retirement Age (which varies from age 66 to 67 for those born in 1943 or later), your monthly benefit will be larger than if you had claimed at 62. If you file for benefits at FRA or later, chances are you probably a) worked into your mid-sixties, b) are in fairly good health, and c) have sizable retirement savings.¹

If you really need retirement income, then claiming at or close to 62 might make more sense. If you have an average lifespan, you will, theoretically, receive the average amount of lifetime benefits regardless of when you claim them. Essentially, the choice comes down to more lifetime payments that are smaller versus fewer lifetime payments that are larger. For the record, Social Security’s actuaries project that the average 65-year-old man to live 84.0 years, and the average 65-year-old woman, 86.5 years.²

2. Will you keep working? You might not want to work too much, since earning too much income may result in your Social Security being withheld or taxed. Prior to Full Retirement Age, your benefits may be lessened if your income tops certain limits. In 2018, if you are aged 62 to 65, receive Social Security, and have an income over $17,040, $1 of your benefits will be withheld for every $2. If you receive Social Security and turn 66 later this year, then $1 of your benefits will be withheld for every $3 that you earn above $45,360.³

Social Security income may also be taxed above the program’s “combined income” threshold. (“Combined income” = adjusted gross income + nontaxable interest + 50% of Social Security benefits.) Single filers who have combined incomes from $25,000 to $34,000 may have to pay federal income tax on up to 50% of their Social Security benefits, and that also applies to joint filers with combined incomes of $32,000 to $44,000. Single filers with combined incomes above $34,000 and joint filers whose combined incomes surpass $44,000 may have to pay federal income taxes on up to 85% of their Social Security benefits.³

3. When does your spouse want to file? Timing does matter, especially for two-income couples. If the lower-earning spouse collects Social Security benefits first, and then the higher-earning spouse collects them later, that may result in greater lifetime benefits for the household.⁴

4. How much in benefits might be coming your way? Visit SSA.gov to find out, and keep in mind that Social Security calculates your monthly benefit using a formula based on your 35 highest-earning years. If you have worked for less than 35 years, Social Security fills in the “blank years” with zeros. If you have, say, just 33 years of work experience, working another couple years might translate to a slightly higher Social Security income.¹

A claiming decision may be one of the most significant financial decisions of your life. Your choices should be evaluated years in advance – with insight from the financial professional who has helped you plan for retirement.

–Vision Financial Group

4505 Pine Tree Circle, Birmingham, AL 35243

205-970-4909

 Investment Advisory services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor.  Securities offered through ProEquities, Inc., a registered broker-dealer and member of FINRA & SIPC.  Vision Financial Group, Inc. is independent of ProEquities, Inc.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates.

Citations.

1 – MarketWatch.com, November 2, 2019

2 – SSA.gov, May 28, 2020

3 – BlackRock.com, May 28, 2020

4 – MarketWatch.com, November 11, 2019