Almost retirees want to maximize his social security. Here is some advice.

Noli Cabantug has spent his career moving back and forth between the public and private sectors. Now at the age of 58, he is wondering what his retirement income will be and what he can do to improve it in the next few years.

Kavantug, an associate nurse in Pomona, California, teaches public high school students about their medical careers. With an 18-year investment, he expects to receive about $ 1,300 a month if he retires at age 62 and $ 1,800 a month if he retires at age 67 from the state teacher’s pension program.

He has also paid for social security for decades and worked as a nurse in the private sector during school holidays and before becoming a full-time educator. He is currently considering whether to work longer as a teacher to increase his pension or return to nursing after the age of 62, depending on the impact on social security.

Cabantug states that as a nurse, he teaches up to $ 60 an hour, compared to $ 42 an hour. This is a job that can be overtime.

Cabantug and his wife, Marie Cheryl Cabantug, earn about $ 110,000 a year together, and their 25-year-old son, Brian, lives with them to save money. Mrs. Kavantugu, 48, is a registered nurse at a home health facility and she plans to continue working for the foreseeable future. Her couple pays about $ 400 a month for her private health insurance because she prefers to use Kaiser Permanente over the health insurance provided through her husband’s work.

The couple owns about $ 160,000 in IRA and $ 250,000 in home. They have about 20 years left on their mortgages that have an interest rate of 4.25%. Monthly housing costs total $ 2,600, and utility bills add up to $ 880. Families rarely eat out, and they pay about 10% of their income with a tithe to support a church in the Philippines.

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They expect to earn about $ 800 a month by renting a room in their home and another $ 1,000 a month from the second rental unit in their property starting next year. They own a villa worth about $ 40,000 in the Philippines and most of the time rent it.

Cabantug wants to know more about long-term care insurance.

Cabantug says he enjoys working in both areas. “Teaching is about shaping the character of young people who need inspiration, promising young people, and young people,” he says. “Nursing is caring through touch.” However, if his retirement income is stable, he may support nursing flexibility, diversity, and higher wages for his remaining years of service. I say I can’t.

Advice from professionals

William Huston, Founder and Chief Investment Officer of Bay Street Capital Holdings in Los Altos, California, is eligible for social security because Kavantug has worked in the private sector for at least 40 eligible quarters. Full profit.

Workers like Cabantug are subject to the Windfall Elimination Provision (with rare exceptions). This reduces social security benefits for retired workers.

Assuming Cabantug begins collecting at the age of 67, his benefits will be discounted from $ 1,372 if he didn’t even have a pension to about $ 680 per month.

Huston said Cabantug needs to consult with the pension system to better clarify how it would change if he continued to teach it. He is grateful to Mr. Kavantug for his efforts to maximize retirement income, but said that earning a higher income as a nurse in the next few years should not be overlooked. I am.

Mr. Kavantug is eligible for a catch-up contribution to his retirement savings, and the couple needs to maximize tax incentives and tax-exempt accounts such as traditional and Ross IRA and Mr. Kavantug’s workplace 403 (b) in Houston. Mr. says.

Couples don’t spend much on luxury goods, but Huston suggests buying cheaper car insurance and researching utility budgets to look for more savings.

Long-term care insurance is expensive, according to Huston, but it is estimated that 7 in 10 Americans will need long-term care as they get older. He proposes that the couple consider an insurance policy with the premium refund rider. It provides a refund to the heir if the policyholder dies without taking advantage of the benefits. It costs more, he says, but it provides peace of mind.

Gallegos is the editor of The Wall Street Journal in New York.Email her

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Almost retirees want to maximize his social security. Here is some advice.

Source link Almost retirees want to maximize his social security. Here is some advice.

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