If you begin to receive Social Security retirement (or survivor’s) benefits before you reach full retirement age, money you earn over a certain limit will reduce the amount of your Social Security benefit. In 2007, your benefit will be reduced by $1 for every $2 of earnings in excess of $12,960.*

The chart above shows the effect of annual earnings of $10,000, $20,000 and $30,000 on a $12,000 annual Social Security benefit ($1,000 monthly) for someone who hasn’t yet reached full retirement age.

Source: Social Security Administration, 2006

*Special rules apply in both the year you reach full retirement age and the year you retire if you have not reached full retirement age.

Copyright 2006 Forefield Inc. All Rights Reserved.

Posted by Michael Chapman at 11:50 AM PST

Many retirees experience an emotional roller-coaster ride. On the one hand, they fear that the money they’ve saved is inadequate to sustain their current lifestyle and on the other hand, they are apprehensive that they won’t live long enough to enjoy the money for which they’ve worked and saved. As a Financial Consultant, I help my clients address this emotional disparity by using an investment approach that not only brings peace of mind to the retiree, but also enables them to stay with their plan.

Read the rest of this entry »

Posted by Michael Chapman at 11:49 AM PST