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August 17, 2024
By
The Admiral Staff
Early retirement packages, often offered by companies facing budget issues to avoid layoffs, can be tempting but require careful consideration. These “buyouts” involve a severance package in exchange for early retirement, but Social Security income typically doesn’t begin until age 62. Key financial considerations include budgeting to stretch retirement savings, potentially utilizing the “Rule of 4%” for withdrawals, and investing any lump-sum payouts. Healthcare is another crucial factor, as Medicare isn’t available until 65
July 3, 2024
By
The Admiral Staff
The article discusses the decision of when to start receiving Social Security benefits, highlighting the trade-offs between claiming early (as early as age 62) and delaying until full retirement age (67 for those born in 1960 or later) or even age 70. Claiming early results in a permanent 30% reduction in benefits compared to waiting until full retirement age, but can be beneficial for those with health problems or pressing financial needs. Delaying benefits, on
June 26, 2024
By
The Admiral Staff
The article explores the implications of electing S Corp tax status for LLCs, specifically concerning the Disabled Adult Child (DAC) benefit from Social Security. While S Corp status can reduce FICA taxes by allowing owners to take distributions instead of a salary, this reduction can negatively impact a child’s future DAC benefits, which are based on the parent’s Primary Insurance Amount (PIA). The DAC benefit can provide significantly more financial support than SSI and offers advantages like fewer asset restrictions and potential access to Medicare.
June 22, 2024
By
The Admiral Staff
If you receive Social Security benefits before your full retirement age, your earnings may reduce your benefit amount. This reduction ($1 for every $2 earned over $22,320 in 2024) stops once you reach your full retirement age, which depends on your birth year (65, 66, or 67). After reaching full retirement age, your benefits will be recalculated to give credit for any previous reductions, ensuring your total lifetime benefits remain the same.
June 12, 2024
By
The Admiral Staff
Receiving Social Security Disability Insurance (SSDI) doesn’t mean you’ll lose your benefits when you reach retirement age; instead, your SSDI will automatically convert to retirement benefits at full retirement age (67 for those born in 1960 or later). Typically, your monthly check amount will remain the same since you’re already receiving your full retirement benefit. While taking early retirement benefits (as early as age 62) would reduce your payments, starting disability benefits early
