Ken Himmler.com

Why is it that the Government moves like molasses when trying to improve but they move at lightning speed to take things away? 

If you or a loved one is covered by a Medicare health plan or prescription drug plan, now is the time to review your coverage and compare your options. Anyone covered by Medicare can make changes to his or her coverage, including choosing a new plan for 2011, beginning on November 15 and continuing through December 31, 2010. Although you can make changes at any time during this period, the earlier you do so, the more time your new plan has to mail you a membership card and other important information before your coverage begins.

       The 2011 Medicare Options Compare tool allows you to compare Medicare health plan options, including HMOs and PPOs

     The 2011 Plan Finder allows you to compare prescription drug coverage from stand-alone prescription drug plans and Medicare Advantage plans that provide prescription drug coverage (may be called MA-PDs)

When it comes time to collect your Social Security benefits, the longer you wait the more you will collect. Of course  you can start collecting Social Security anytime after age 62, but for each year you wait, your payments will increase by 7% or 8%.

"Payments increase about 7% for every year between early retirement age – 62 – and your full retirement age. So if your full retirement age is 65, your payments will increase 7% for each year between 62 and 65, and then an additional 8% for each year between 65 and 70," says Laurence Kotlikoff, a professor of economics at Boston University and co-author of Spend ‘Til the End.

For those who can afford it, waiting to tap into Social Security benefits is definitely a more lucrative bet. However, some people are taking advantage of a provision that allows them to earn even more from their Social Security benefits. Called a do-over, the recipient taps into their benefits at age 62 and invests the funds in a safe investment that earns a decent rate of return for several years, then they pay the money back and pocket the interest earned.

Do-overs were included in the Social Security Handbook to allow those who jumped the gun and started taking benefits at age 62 to correct their mistake. All they have to do is file IRS form 521, pay the benefits they’ve already received back – in full, but with no interest, penalty, or adjustment for inflation – and start taking the larger benefit as if they had waited all along.

Over the last few years, do-overs have become more well known as an investment strategy of sorts. But now the Social Security Administration wants to put a stop to the practice.

"Social Security has sent a proposed regulation to OMB [the Office of Management and Budget] for review that would establish a 12-month time limit for the withdrawal of a retirement benefit application. The proposed regulation would also permit only one withdrawal per lifetime," explains Mark Lassiter, a Social Security Administration spokesperson.

In other words, you’ll now have only one year to change your mind and return your benefits, which makes it less of a strategy and more of a way to correct your mistake. One can assume that was the intention of form 521 all along.

Read more on this important subject in recent AOL Daily Finance article here: http://www.dailyfinance.com/story/social-security-administration-seeks-to-put-an-end-to-do-overs/19613383/

The recession is on everyone’s minds these days. If you are retired or nearing retirement this adds to the concern and stress. I recently wrote an article about the key points you need to know about how the recession effects your retirement.

Eventhough this is a difficult time for everyone, there are tips and techniques on how to comfortably retire in the midst of a weak economy: View the article here   http://www.financialadvisormatch.com/community/articles/1115_retirement_and_the_recession_what_you_need_to_know.html

As you get closer to retirement age, there are a few details that you need to think about for your post-retirement life.  No doubt there will be various unavoidable expenses in your life that you will need address financially.  You are also likely to have a lifestyle that you would like to continue, and hobbies that you are looking forward to taking up after retirement.  These are the things that you have been saving up for all along.  Now you need to be considering whether or not you are going to have enough money to fulfill your dreams.

The most important thing you need to consider as you get ready to retire is how much post-retirement income you are going to have, and how much you need.  There is no reason you should panic at this point, because if you have been keeping up with your retirement savings and investments you should be right on schedule.  Most people need between 70-80% of their current income to lead a comfortable, healthy retirement that suits their lifestyle.  Your individual needs may demand more or less money depending on a variety of factors in your life.

Because there are several facts that need to be considered, it is often much easier to use a retirement planning calculator to help discern your individual needs and whether or not you will have enough money to retire on time.  One such popular calculator can help, and can helpl provide a rough estimate of your monetary needs post-retirement.

Of course, it should be acknowledged that calculators are always subject to error and cannot account for every situation.  It is always advisable that you address any concerns you have about your retirement situation to your financial advisor or retirement planner.  These highly trained individuals can take into account factors beyond the scope of even the best retirement planning calculator.
 

If there was a time-tested and proven path to wealth, it would without a doubt include saving, saving, and saving.  There is an illusion that affects even the best of us, and that allows many people to feel comfortable with procrastination.  The fact is, it is hard to accept the fact that we do not have an infinite amount of time.  So much of the time, people know that they need to save and make investments for retirement, but they follow the reasoning that they have so much time until retirement that they can always ‘do it later.’

Other reason that they will have plenty of time to save and make investments after their income increases to a more comfortable amount.  A lot of the time, this mindset makes it difficult to accept the fact that we all have enough to invest for a comfortable retirement in the future.  The problem is that most people run with the understanding that there is not enough in this world to go around and they need to take their share now.  When all is said, they would rather enjoy their money now instead of invest it and live comfortably in the future.

This hurdle is easy to overcome, however, when you create a budget and stick to it.  It may be overstated, but the fact is that whatever your situation is now is the time to be saving and making retirement investments.  While it may be difficult to see how you can fit it into a tight budget, there is a lot of wisdom that comes with paying yourself first.  Consider taking just ten-percent of whatever you earn in a week and placing it in a retirement savings account to start with.  Ten percent is not a lot, and most people can work with that kind of budget.  A little bit really does go a long way, and after a few short weeks you could be well on your way to a comfortable future retirement.
 

Whether you are a fledgling investor, or a veteran in the investment world, there are always little obstacles that can threaten your advancement in the world of financial growth.  There is a lot of information out there. If you were to type in the words “investment research” into a google search you would find yourself bombarded with thousands upon thousands of links to various sites containing information about the investment world.

Many of these search results contain valuable insights into the various methods of investment, and they show strategies that with time can produce results that can lead to a comfortable retirement.  Most financial advisors will follow a rather basic template that has been shown to produce good results on a broad scale.  The major problem with most of these websites is that they fail to mention one of the major pitfalls that befall an investor: they get complacent.

You’ve heard it before, when it comes to investing your money it is ultimately your responsibility to see what happens to it.  Too much of the time investors take a passive role when it comes to their money, and they sometimes end up paying a hard price for this simple mistake.  The golden rule of investment is to always know what is going on with your money.  The more you are involved, the more investment options will open up for you to make good decisions for your future.  Do your own investment research and follow up with your investment advisor so that you always know what is going on.

Never be afraid to ask questions if you do not understand something.  Your financial advisor is there to help guide you so that you get the most out of your investments.  It is his or her job to show how to make your money work for you so that you can have that nice Florida retirement you always wanted.  We are always here for you, so let us know if you have any questions or concerns.