Page 51 - AAA Magazine – AAA Ohio Auto Club – September 2019

Most folks can’t wait to reap the rewards from the system they’ve been paying into their whole working lives, and 45 percent choose to take Social Security benefits as early as they can at age 62.
taxed as long as the account holder is at least 591/2 years old and has had the account for five years or longer.
A Family
Budgeting
Tool for the
21st Century
Sharing and budgeting funds across the modern family is now easier — and more secure — with reloadable prepaid cards. An inexpensive and beneficial way to get funds quickly to those who need them, reloadable cards often become the preferred payment choice among even the busiest families with dynamic lifestyles. Whether it’s to help support a student at college or studying abroad, teach teens money management and budgeting, or help a dependent family member with everyday expenses, those who choose prepaid favor responsible spending and financial security.
Card issuers and major payment networks, such
as Visa, provide critical security features in today’s prepaid card market. Two significant features include chip-and-PIN technology – to limit payment system fraud – and a zero-liability policy – to help ensure cardholders aren’t responsible for unauthorized transactions. Unlike cash, a lost or stolen card can be replaced and some networks offer emergency services like cash and card replacement.
Today’s families and young adults are choosing reloadable prepaid as a smart financial solution. It
can simplify budgeting and help to teach money management skills and disciplined spending. The cards are not linked to a bank or credit account, which means there is no credit check required, and no borrowing
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Prepaid also offers popular account-visibility options, like online account access and smartphone apps.
Contributions for Roth IRAs are limited to $6,000 annually, although those aged 50 and older are allowed to contribute up to $7,000. Additionally, income limits apply, so higher earners may not qualify to contribute to a Roth.
Think About Taking Social Security Benefits Later
Most folks can’t wait to reap the rewards from
the system they’ve been paying into their whole working lives, and 45 percent choose to take Social Security benefits as early as they can at age 62. Many don’t realize that this strategy results in a reduction of benefits by as much as 30 percent compared to waiting until their full retirement age.
On the opposite end of the spectrum, retirees who can delay claiming Social Security past their official retirement age enjoy an increase in benefits of
8 percent for each year they wait, up to age 70.
Another advantage of waiting to claim Social Security relates to the annual cost of living adjustments. A larger check means a more substantial change, and those larger adjustments continue to compound over time. Many people overlook the benefit that having this hedge against inflation can provide.
Consider Easing Into Retirement by Working Part-time
The transition from working full-time to suddenly having all kinds of time on your hands can be abrupt and disruptive for many people. A part-time job can ease that transition into a more leisurely lifestyle, plus bring in some income to help cover expenses and preserve the retirement nest egg.
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