Our daily roundup of retirement news your clients may be thinking about.
Why we're taking Social Security at age 62
A couple, both retirement experts, have decided to start receiving Social Security benefits at age 62, despite the conventional advice to defer the benefits for a higher value. The Social Security payments they receive at 62, and other investments they have, are likely to grow and exceed the additional money they would receive if they deferred the payments, the experts explain. While they acknowledge that for some people, deferring until their full retirement age -- or even later -- makes sense, especially if they do not have the assets to support themselves or have difficulty handling money. But that is not their situation and they have concluded that it's "really a question of who you think can handle your money better -- you or Uncle Sam." -- Motley Fool
Social Security Q&A: Can't I do better investing my money on my own?
In a Q&A, a reader asks about the wisdom of waiting until the age of 70 to file for Social Security benefits. Instead, he wants to file sooner and invest the proceeds. The expert writing for Forbes recommends against this, saying that it's not just a matter of investment returns, but also risk. He also reminds the reader that his Social Security retirement benefit is based on his primary insurance amount, which can be computed using his Average Indexed Monthly Earnings. Such earnings can be determined based on the client's 35 highest years of covered earnings. The article explains the strategy that a 62-year-old client can use to receive the maximum retirement benefits. -- Forbes
Can rental income save your retirement?
Clients can diversify their retirement portfolio if they invest in a property and rent it out to earn an income, according to CNN Money. When investing in a rental property, clients must ensure that the property is in a good location, in a pleasant neighborhood, and close to reputable schools and workplaces. The rent should exceed mortgage and other costs, such as taxes and repair work, to make sure clients will earn from the investment, an expert says. -- CNN Money
How to get more out of your defined-benefit plan
Clients need to consider the date and the year to retire so they can maximize what they will gain from their defined-benefit plans, according to MarketWatch. They can also get more from these plans if they carefully choose the level and types of benefits, as well as employ a strategy that allows them to receive two defined benefits from two separate employers. Many employers provide hybrid defined-benefit cash balance plans, which appear to be a defined-contribution plan for participants, though the benefits from these plans increase with an annual contribution credit. -- MarketWatch
Retirees get creative to eat cheap at restaurants
The average number of meals bought by retirees over 65 increased to 193 last year from 171 in 2009, with 63% of the retirees going to fast-food chains, according to a study. Retirees set their budget for dining out according to their personal preferences, and they were very careful about prices, experts say. Read about retirees who found ways to make the most of the money they spent on buying food from restaurants. -- USA Today
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