Just Good Advice!

TBN Staff: We came across this advice and just had to share.

ATTORNEY’s ADVICE – NO CHARGE (Number 7 is the best)

Not A Joke!! Even If you dislike attorneys…You will love them for these tips.

Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:

1. Do not sign the back of your credit cards. Instead, put ‘PHOTO ID REQUIRED.’

2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the ‘For’ line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won’t have access to it.

3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.

4. Place the contents of your wallet on a photocopy machine . Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place.

I also carry a photocopy of my passport when I travel either here or abroad. We’ve all heard horror stories about fraud that’s committed on us in stealing a Name, address, Social Security number, credit cards. In case your luggage is lost, take another list in your carry-on bag, especially if you are abroad and need immediate access to those numbers.

Unfortunately, I, an attorney, have first-hand knowledge because my wallet was stolen last month. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here’s some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here’s what is perhaps most important of all: (I never even thought to do this.)

7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.

The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves’ purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.

Now, here are the numbers you always need to contact about your wallet, if it has been stolen:

1.) Equifax: 1-800-525-6285

2.) Experian (formerly TRW): 1-888-397-3742

3.) Trans Union : 1-800-680 7289 1-800-680-7289

4.) Social Security Administration (fraud line): 1-800-269-0271

Nine Social Security Facts

TBN Staff: Here is another perspective on Social Security and your retirement income. For younger people it is often easier to ignore this topic and many nearing retirement age believe they are at the mercy of the Government. Yet knowing what is looming on the horizon will enable many of use to make some adjustments and better enjoy the Golden Years.

9 Social Security facts every retiree should know

by: Todd Campbell, The Motley Fool

The Social Security program provides a critical safety net for 59 million Americans, but that doesn’t mean that everyone knows all there is to know about it. For example, did you know that the latest number-crunching in Washington indicates that Social Security payments could be cut by 29% in 2030? Read on to find out more about how this vital program works and how changes to it may affect you in the future.

No. 1: It’s not a savings account

Yes, you made significant contributions in the form of payroll taxes to Social Security when you were working, but those taxes were used to pay your parents’ Social Security income. Unlike employer-sponsored retirement plans and IRAs, Social Security is a pay-as-you-go system, and that means that the benefits you receive today are being paid for by taxes on current workers, not taxes you paid in the past.

No. 2: Running on fumes

Revenue that’s collected from current workers via the 12.4% payroll tax has fallen shy of the amount needed to pay Social Security outlays since 2010. The shortfall is being made up for with money that’s coming out of the Social Security Trust Fund. However, the Congressional Budget Office reports that the Trust Fund will run out of money in 2029. If so, then an across-the-board 29% cut in benefits could be on tap in 2030.

No. 3: Averages can deceive

The Social Security Administration reports that the average retired worker receives a monthly Social Security benefit of $1,341 this year. But, the amount of money that recipients receive for Social Security varies widely. Typically, retirees pocket a monthly benefit that ranges between $700 and $1,800.

No. 4: File and suspend is gone

In the past, individuals could file for Social Security at their full retirement age, allowing spouses to collect spousal benefits, and then suspend their own benefit. That strategy provided immediate retirement income via the spousal benefit while also allowing the primary filer to benefit from delaying Social Security until age 70. Under this strategy, a person with a full retirement age of 66 could collect 32% more in benefits by waiting until 70 to restart payments, potentially adding thousands of dollars per year to retiree income. Washington is now closing this loophole on April 29. However, if you already took advantage of this strategy — or do so before April 29 — you’ll be grandfathered in.

Social Security is a major source of most retirees’ incomes.

No. 5: The shrinking size of your check

If you’re wondering why your Social Security benefit check is a bit smaller this year, blame Washington.

Forty million Americans enroll in Medicare Part D drug plans and many of them have their monthly premiums automatically deducted from their Social Security check. According to the Kaiser Family Foundation, the average premium for a Part D plan increased 13% in 2016 from 2015, however, flat inflation means that Washington didn’t increase the amount of your Social Security benefit this year. As a result, your monthly haul from Social Security may have shrunk.

Unfortunately, Medicare payments may take an increasingly bigger chunk of your Social Security benefit in the future too, especially if you’re a high-income earner. Drug price inflation is outpacing other inflation, so plan premiums will probably continue to grow more quickly than your benefit. Also, Medicare levies a Medicare Part B and Part D surcharge on premiums if income exceeds certain thresholds. Since those thresholds aren’t adjusted for inflation, HealthView Services estimates about 25% of all Medicare recipients will be stuck paying Medicare surcharges in 20 years.

No. 6: Change may be coming

Momentum is building to reform Social Security to sidestep the risk of running the Trust Fund dry. Possible solutions include increasing the Social Security payroll tax beyond 12.4%, boosting the full retirement age beyond the current maximum of 67, and changing how benefit increases are calculated.

Changing the payroll tax and the full retirement age won’t affect most retirees, but if a switch is made to chained-CPI from standard CPI, your benefits could grow more slowly than they have in the past.

No. 7: Double-dipping is OK

If you’re retired, you can still collect a paycheck from working, and if you’re older than your full retirement age, it won’t reduce the amount you receive in Social Security income.

However, if you’ve enrolled in Social Security early, you can only earn up to $15,720 this year without it reducing your Social Security benefit. Anything you earn above that level will result in a reduction in your benefits by $1 for every $2 over the limit.

No. 8: Spouses will be taken care of

If you qualify and receive Social Security income, then surviving spouses can receive Social Security income based on your work record after you die. The amount a surviving spouse can collect in Social Security income depends on the spouse’s age and the type of benefit they’re eligible to receive. Generally, a widow or widower who is full retirement age or older can collect 100% of the deceased spouse’s benefit, while a widow or widower between age 60 and full retirement age can collect between 71.5% and 99% of the deceased spouse’s basic amount.

No. 9: Uncle Sam gets his cut

No one pays the IRS taxes on more than 85% of Social Security income, but income thresholds for taxation are low enough that many Americans will pay taxes on at least some of their Social Security benefit.

Specifically, if you’re single, and your combined income (adjusted gross income + nontaxable interest + one-half of your Social Security benefit) is between $25,000 and $34,000, you may have to pay taxes on up to half of your Social Security benefit. Earn more than $34,000 in combined income, and you could be taxed on 85% of your benefit. Married couples with a combined income between $32,000 and $44,000 could pay taxes on up to half their benefit, while couples earning more than $44,000 in combined income may be taxed on up to 85% of their Social Security benefit.

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Social Security: 3 Things to Know Before Taking Benefits Early

By John Maxfield

Deciding when to take Social Security benefits is one of the most important decisions you’ll make in retirement. Should you take them at the earliest possible moment — that is, at the age of 62? Or should you wait until reaching full retirement at 66?
While this is a personal decision that must be tailored to your own needs and desires, there are three factors every retiree should consider before making a final decision — and particularly if you elect to receive Social Security benefits prior to full retirement age.
1. The size of your monthly benefits depends on when you elect to receive them As you probably know by now, there are two major factors that influence the size of your monthly Social Security benefits.
First and foremost, your benefits are a function of how much eligible income you earn during your working life.
To determine this, the Social Security Administration adds up the income subject to Social Security tax, adjusted for inflation, that you earned during your 35 highest-earning years. It then divides the total by 420 — the number of months in 35 years. This yields your average indexed monthly earnings. The higher this is, the higher your benefits will be.
The second major factor that influences the size of your benefits is when you elect to receive them.
For workers retiring now, the full retirement age is 66. If you wait until then, you get your full benefit — or, in Social Security lingo, 100% of your “primary insurance amount.” However, if you elect to receive them early, then your monthly benefit is reduced for each month short of your 66th birthday. If you begin receiving them at 62, for example, then your benefit will be reduced by 25%.
By contrast, if you wait until turning 70, then you’re entitled to delayed-retirement credits, which increase your benefits by 8% for each year of deferment, topping out at a total of 32%.

2. For the average person, it doesn’t matter when you apply Given the fact that your monthly benefits are reduced if you elect to receive them early, then it seems obvious that you shouldn’t do so, right?
Not necessarily.
For the average person, it ultimately doesn’t matter when you elect to receive benefits, as the Social Security Administration has designed the average retiree’s lifetime payouts to equal out regardless of when they choose to receive them.
“The Social Security benefit formula adjusts monthly payments so that someone living to average life expectancy should receive about the same amount of benefits over their lifetime regardless of which age they claim,” explains a recent government report on Social Security.
At the end of the day, in other words, the average retiree shouldn’t suffer for the decision to get smaller checks for longer.
3. Deciding when to apply for Social Security is about quality of life With this in mind, the question of when to apply for Social Security benefits is less about some impersonal cost-benefit analysis and more about your needs and quality of life.
If you need income now, then you should take Social Security. If you don’t, then you should defer. Additionally, if taking Social Security early will facilitate an earlier retirement — which, in turn, will improve the quality of your life — then you should absolutely do so.
This is the reason 62 remains the most prevalent age for retirees to claim benefits. And it’s the reason you shouldn’t hesitate to do so yourself if you believe it’s the best option.
Remember, retirement is about you. It’s about comfort, leisure, and reflection. Those are the things to keep in mind when deciding whether to claim benefits early, not some break-even analysis that experts try to impose upon you.

What are Your Last Wishes?

fter your children have left the nest and work is winding down, you may decide to travel. If you find yourself frequently flying or traveling many miles in the car, it is important to consider safety. There is the chance that an accident may occur, so it is essential to begin thinking about end-of-life wishes. This type of planning is extremely personal. However, at a certain point, it becomes necessary to consider your values and beliefs. Crafting a written plan will come in handy in times of a medical crisis. Although it is impossible to plan for every type of illness or circumstance, it is vital to leave behind your general wishes, so everyone comprehends your priorities. It may be difficult to initiate this kind if conversation with loved ones, but it may be an invaluable gift, especially in time of tragedy. Leaving specific instructions behind will alleviate pressure on the family to make decisions.

Basic Lawful Documents

Almost all people believe advance directives are a smart idea. However, only one-third of these individuals actually follow through by drafting them. Advance directives are legal documents that let you communicate your end-of-life wishes while you are healthy.

The first document is a Medical Power of Attorney, also known as a healthcare proxy. This item allows you to appoint a trusted loved one as a healthcare agent. When it is impossible for you to communicate, this person is authorized to make medical decisions on your behalf. This information decides your quality of life and the care you receive until death.

The second document is a Living Will. This item contains expressed wishes about medical treatment. When facing a serious illness or life-threatening event, you explain what you want and what you do not want. For instance, it explains if you want to be revived after a cardiac episode. Unlike a Power of Attorney, it only refers to withholding or withdrawing care.

Discussing Your Last Wishes with Loved Ones

One of the hardest conversations in life is discussing end-of-life wishes with loved ones. However, you must set aside time and have the talk. One way to initiate the subject is explaining the motivation behind the action. For instance, a frequent traveler may discuss the numerous accidents occurring on the roads and in the air. It is a good time to discuss spiritual beliefs and your attitude toward death. When you explain your wishes, it will be a great way to make sure they are carried out. For instance, some people do not want to be a physical burden on family members. Others prefer to die at home.

It is not uncommon for family members to disagree with your decisions or views about death. If you feel as though a loved one will not abide by your wishes, it is best to exclude him or her from your care. It will be important to discuss things to your physician as well. Your doctor will be able to explain common treatments and procedures that prolong life. It is also smart to discuss various pain management options.

Financial Power of Attorney

Besides health concerns, it is smart to establish a financial Power of Attorney. This will safeguard your finances in times of emergency. You give a trusted person authority over your monetary tasks. This agent may handle simple jobs like making bank deposits or more complex proceedings like overseeing investments and tax filings.

It is essential to separate arrangements for medical care and financial matters. Medical documents contain extremely personal details. Financial matters are more business oriented. The person overseeing your healthcare may not be the person you want in charge of your finances. Filing different documents will keep both your personal health and wealth protected.

Benefits of Having a Will

A will is a document that allows you to pass your belongings onto particular individuals. Both money and sentimental items will be passed to the appropriate people. To make sure your estate is divided according to your wishes, you should appoint an executor. This person is responsible for observing your wishes, paying expenses, and clearing debts. Having a “Last Will and Testament” will make it simpler for loved ones to manage your affairs after you are gone. Numerous complications may arise without a legal Will in place, and your wishes may be disregarded.

It is never too early to start planning your final wishes. While you are healthy, it is essential to have a dialogue with your family regarding the quality of care you expect and the quality of life you deserve. Besides setting aside proper funding for long-term care, it is essential to prepare documents like a Living Will and Power of Attorney. These items assure that your final wishes are protected. It is a smart way to satisfy your needs and protect your loved ones from unnecessary grief.

How to Keep the Romance Alive Even with a Pre-Nup

sually, entering into marriage is a romantic time. Love fills the heart, and good thoughts abound. No one worries about splitting finances or fighting over assets. However, some couples are older, wiser, and decide to draw up prenuptial agreements. In years past, these types of arrangements were only for the rich and famous. Today, they may be helpful for anyone with significant assets or the possibility to own items that may bring a great deal of wealth. Although there may be negative feelings associated with pre-nups, there are some ways to keep the romance alive while planning the documents.

Discuss General Financial Matters

Even though there may be negative stigma associated with these type of documents, it is a fact that couples who have prenuptial agreements are more likely to have long-lasting and happy marriages. The best way to begin a discussion of a pre-nup is with a general conversation about financial matters. Well before the topic of marriage erupts, it is wise to sit down as a couple and discuss intentions concerning long range financial plans. When one or both parties has a significant amount of assets, it is a smart time to bring up the idea of a pre-nup. If talk is done early, it will be less threatening and shocking when the time comes for a marriage proposal. It will be possible to enjoy the important moments and maintain happy memories instead of dwelling on financial issues.

Serious Talks Before an Engagement

When a couple is getting serious and an engagement is likely, it is time to seriously discuss finances. Talking about a pre-nup before an engagement will not interfere with the excitement or romance of the proposal. Taking a gradual approach to financial planning will be a way to make sure that no one will be caught by surprise with the feeling that loves comes second to money. After all, a prenuptial agreement means more than just who gets what in the case of divorce. It is also a great way to plan how each person will contribute to the financial aspects of a marriage. It can be as simple as discussing who pays the mortgage and who buys the groceries each week. Getting the terms of a pre-nup ironed out before an engagement will allow the couple to separate emotions from finances. This will make the proposal all the more enjoyable.

Use a Third Party Mediator

In order to take the sting out of a pre-nup, it is smart to obtain a neutral third-party negotiator. This will keep both people happy and on even terms. No one will feel that things are being planned unfairly. An independent lawyer who has no connection to the couple will make a good negotiator. Someone with knowledge about family law will make a wise choice. When a neutral party is suggesting ways to set up the agreement, it will help to keep emotions stable and prevent the romance from becoming disturbed. There will be no reason to have hurt feelings or a sense of unfairness.

Present the Idea Correctly

When one person in a relationship feels that a pre-nup is necessary, it is important to broach the subject in a delicate manner. It is never wise to begin the request with “I want.” This sends the message that the person is only trying to protect personal needs and that trust does not exist. A better way to present the idea is by explaining that the agreement will protect both people, especially in case of sudden death. In many cases, a prenuptial agreement is an insurance policy that is mutually beneficial. A pre-nup does not automatically mean that a couple is planning for the worst. Looking at it in these terms will restore a certain feeling of love.

Remain Practical Yet Romantic

Divorce is common yet heartbreaking. As most people approach a mature age, it is not rare to enter into marriage more than once. When people are young, it is uncommon to enter into a relationship with money or financial security. However, the second or third times around, things may be different. A person should use common sense when considering a pre-nup. If there are few worthwhile assets, a pre-nup is not necessary. However, it is important to look ahead and assess whether or not a person has the potential to gain wealth from assets during the marriage. When this is the case, it may be wise to consider a prenuptial agreement.

Contrary to popular belief, conversations that lead up to a pre-nup can be a great way to begin a marriage. It should be the first of many discussions concerning financial goals. It is the basis for a couple’s dreams and ways to reach them. Even though money discussion are less than romantic, they can be a wonderful way to keep love alive.