The Top 5 Reasons Seniors Stay Frugal in Retirement

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Countless workers scrimp and save for years with the goal of enjoying a comfortable retirement. Many of those folks do not abandon their penny-pinching ways once their golden years finally arrive.

Surprisingly, fear of running out of money is not the No. 1 factor that drives retirees to stay frugal, according to the Employee Benefit Research Institute’s (EBRI’s) Spending in Retirement Survey.

Instead, the survey — which asked 2,000 individuals ages 62 to 75 about their spending habits and their situation at and during retirement — found four more-common reasons that retirees keep their wallets shut.

The five reasons the retirees most often cited for not spending down assets are:

  1. Saving assets for an unforeseen cost later in retirement — 38%
  2. Feeling that spending down assets is unnecessary — 37%
  3. Wanting to leave as much as possible to heirs — 33%
  4. Simply feeling better when account balances remain high — 31%
  5. Fear of running out of money — 27%

Among these retirees, the average amount of current financial assets was $200,000, with a median of $75,000. More than two-thirds — 69% — said their standard of living is the same or higher than it was when they were working, and 61% believe their spending is appropriate for what they can afford.

The power of a fat nest egg should not be underestimated. Among survey respondents, 64% said saving as much as possible leaves them feeling happy and fulfilled. That finding seems to support recent research that has revealed that — contrary to common folk wisdom — having more money does indeed make people happier.

In fact, the retirees in the EBRI survey said they wish they had saved more for retirement. Just 18% said they saved more than was needed, while 46% reported saving less than they needed in retirement.

Saving for a great retirement

In life, it’s smart to learn from the wisdom of those who are in the place today that you are headed toward tomorrow. If many of today’s retirees wish they had saved more, chances are good you will feel the same way when you retire.

So, now is the time to begin building your retirement nest egg. The Money Talks News course The Only Retirement Guide You’ll Ever Need can get you off to a great start.

This 14-week boot camp offers everything you need to plan the rest of your life, know you’ll have enough money and make your retirement dreams a reality.

The course, intended for those who are 45 or older, can teach you everything from “Social Security secrets” to how to time your retirement.

For more tips on how to build and maintain a nest egg, check out “Your Top 5 Retirement Questions, Answered.”

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

7 Costly Social Security Mistakes

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Even a minor Social Security misstep can rob your nest egg of tens of thousands of dollars in retirement benefits.

So, it pays to understand how the system works and how to maximize your Social Security checks.

The following are some of the biggest and most costly mistakes you could make when navigating Social Security — and how to avoid making them.

1. Taking Social Security too early

It’s tempting to start taking Social Security benefits after you become eligible but before you reach what the federal government calls your “full retirement age.” If you do, you’ll wind up with a smaller check each month.

Technically, you should receive the same total amount of benefits over the span of your retirement no matter the age at which you first claimed them. The Social Security system is designed to be actuarially neutral in this regard.

Still, claiming early can be risky because once you claim benefits, you will be stuck with the same size payment for life. The amount of a person’s monthly benefit typically will never increase except for inflation adjustments.

If you’re the main breadwinner in your family, you may want to think twice about starting your Social Security benefit early since your spouse may receive that smaller benefit amount one day.

Jeffrey A. Drayton of Jeffrey A. Drayton Financial Planning and Wealth Management in Maple Grove, Minnesota, tells Money Talks News:

“When one of you dies, the surviving spouse will get to keep whichever benefit is larger. If yours is the larger benefit, do you really want to reduce it? Doing so means that you might be reducing this lifelong annuity that gets adjusted for inflation permanently not just for yourself but also your spouse.”

2. Claiming benefits and continuing to work

If you claim Social Security before reaching full retirement age and continue working, you might have to pay penalties against your Social Security benefit. This depends on how much money you earn.

One solution is to wait until your full retirement age to claim Social Security. There is no penalty for working while taking benefits after your full retirement age, regardless of how much income you earn.

3. Not checking your earnings record

The amount of your retirement benefit is based on your top 35 years of earnings. So, if there’s an error in your Social Security earnings record, the amount of your monthly check could suffer for it.

For example, if an employer fails to correctly report your earnings for even one year, your monthly benefit upon retiring could be around $100 less, according to the Social Security Administration (SSA). That amounts to a loss of tens of thousands of dollars over the course of your retirement.

While employers are responsible for reporting your earnings, you are responsible for checking your earnings record, as only you can confirm the information is accurate.

To review your earnings record, log into your mySocialSecurity account — or create an account if you have yet to do so.

You’ll want to check each year. The SSA explains:

“Sooner is definitely better when it comes to identifying and reporting problems with your earnings record. As time passes, you may no longer have past tax documents and some employers may no longer be in business or able to provide past payroll information.”

4. Making an isolated decision

A Social Security decision is just one piece of a retirement income puzzle, says Charlie Bolognino, a certified financial planner at Side-by-Side Financial Planning in Plymouth, Minnesota.

It can impact how you draw down other retirement income sources, such as a pension, 401(k) plan or cash savings. It can also impact the amount of retirement income you lose to federal or state taxes.

Failing to consider these other retirement funding factors when making Social Security decisions — as well as rushing to those decisions — can cost you a big chunk of your nest egg.

“This is a big decision with potentially thousands of dollars at stake, so don’t short-cut it,” Bolognino tells Money Talks News. “Find a reputable benefit option comparison tool or work with a financial planner who can help you evaluate options in the context of your broader financial picture.”

5. Failing to understand what qualifies you for Social Security

Social Security retirement benefits are not a guarantee. You must qualify for them by paying Social Security taxes during your working years, or be married to someone who qualifies for benefits, Drayton says.

He continues:

“The qualification rules are complicated. The short answer most people give is that you need to work for at least 10 years. However, it is based on a system of credits and quarters, and there are different types of qualifications for different types of benefits.”

The bottom line? Know your qualification status and, if you’re ineligible, how to qualify for benefits.

To find out whether you’re eligible for retirement benefits or any other benefits administered by SSA, check out the SSA’s Benefit Eligibility Screening Tool (BEST). You can also use the tool to find out how to qualify and apply for benefits.

6. Not knowing the Social Security rules regarding divorce

You may be eligible to claim a spousal benefit based on your ex-spouse’s earnings record after a divorce. Failing to realize this can cost you a lot.

Generally, the member of the divorced couple entitled to the smaller benefit amount may be eligible for this type of spousal benefit — provided they were married for at least 10 years, haven’t remarried and meet a few other requirements.

The member of the divorced couple with the smaller benefit amount applies for a spousal benefit. The applicant must have been married for at least 10 years, not have been remarried and meet a few other requirements.

7. Not accounting for dependent benefits

If you still have dependent children when you claim Social Security retirement benefits, they may be eligible to receive benefits, too. An eligible child can receive up to 50% of your full retirement benefit amount each month, according to the SSA.

Your family would receive that amount on top of your own benefit amount. Payments to your dependents would not decrease your benefit, although there is a limit to how much the entire family may receive in monthly benefits.

So, understanding the benefits that your dependents might be eligible for can help you maximize your family’s collective benefit amount.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

5 Reasons to Claim Social Security ASAP

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Many people believe that claiming Social Security benefits as early as possible — which generally is age 62 — is inherently bad, since claiming before your full retirement age means smaller monthly payments.

However, the reality is that everyone’s circumstances are different. For some retirees, it makes sense to start claiming benefits as soon as possible.

Following are several situations in which you should not put off claiming your Social Security retirement benefits.

1. You have a short life expectancy

The amount of your monthly Social Security retirement benefit payment is based on a formula that’s meant to be actuarially neutral. That basically means you should receive the same total amount of benefits over your lifetime regardless of the age at which you start claiming them.

In other words, if you claim earlier than your full retirement age as determined by the Social Security Administration, you will receive smaller monthly payments over a longer period of time. If you delay claiming until you’re older, you’ll be getting larger payments over what is likely to be a shorter period of time.

If you expect to have a short life expectancy, it might make more sense to start taking the smaller monthly benefit as soon as you can.

Money Talks News founder Stacy Johnson details one such situation in “2-Minute Money Manager: Should I Wait to Take Social Security?” He writes:

“A few years ago, one of my best friends asked if he should take his pension early, and I said, ‘Hell, yes.’ Why? Because he wasn’t in great shape, health-wise. Both of his parents died young, his siblings died young, and he really needed the money. So, my advice to him was, ‘Take it as soon as you can get it.’ He died one year later.”

2. You need the money

You also might need the money immediately to stay on top of your living expenses.

“You’d be surprised at the number of people who end up retiring before they want to,” says Devin Carroll, founder of the blog Social Security Intelligence. “There are lots of reasons — including being laid off or dealing with health issues — that you have to stop working.”

However, remember that the age at which you claim determines the size of your monthly benefit going forward. In other words, the longer you can postpone claiming, the bigger the benefit you’ll get each month after you do claim.

So, if that sounds good to you, first explore other ways that you could bring in extra income, enabling you to postpone claiming. For example, check out articles like “21 Ways Retirees Can Bring in Extra Money in 2021.”

3. You’ve got kids at home

“Increasingly, people are reaching age 62 and still have minor children at home,” notes Carroll.

When that’s the case, claiming your Social Security benefits early makes sense in that it generally enables you to apply for additional benefits to help you care for minor children. That’s because you must apply for your retirement benefits before you can apply for benefits related to dependents.

4. A higher-earning spouse has health problems

It’s kind of morbid, but when deciding whether to start taking Social Security benefits at age 62, you also need to think about when your spouse might die — and how much he or she makes in comparison with you.

One situation to consider is when the higher-earning spouse has medical problems, says Carroll.

That’s because, after a spouse dies, you may become eligible for survivor benefits (also called widow’s or widower’s benefits) based on the spouse’s Social Security. And if your spouse has a short life expectancy, and you know your survivor benefits would be more than your own full retirement benefit, there may be no reason for you to wait for your full retirement benefit.

To learn more about this subject, check out “Social Security Q&A: How Do Spousal Benefits Work?”

5. A lower-earning spouse is older than you

Maybe your spouse earned much less than you during your working years.

“Their own benefit is going to be lower than yours,” says Carroll. “In fact, their benefit might even be lower than the spousal benefit they’d receive based on your earnings.”

However, as with benefits issued based on your own work history, your partner can only claim a spousal benefit based on your work history after you file for your own retirement benefits.

Add up the cumulative benefits, suggests Carroll. You might discover that your total monthly income is better when you file for your benefit early and your older spouse elects to take the spousal benefit.

A final word: Work with an expert

Before making decisions, though, be sure to work out the math and compare your options. Social Security rules are complex and situations vary.

Also, consider reviewing your situation with a Social Security Administration representative or a knowledgeable retirement planning professional.

At the least, you could obtain a custom analysis of your claiming options from a specialized company like Social Security Choices.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

5 Reasons You Should Not Delay Retirement

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Some people view retirement as something that should be delayed as long as possible. They say that, for many older workers, waiting as long as possible to collect Social Security benefits is the prudent choice.

Important as this advice is for many of us, it may not apply to you. If you are financially prepared, there are good reasons to consider retiring at the traditional age of 65, or maybe even sooner.

“Time is the most valuable asset anyone can ever have,” Mike Kern, a certified public accountant based in South Carolina, tells Money Talks News. “I would encourage anyone who has the ability and wants to retire early to do so.”

There is plenty to see, do and learn in retirement. Many retirees go on to pursue new careers or fulfill lifetime goals they didn’t have time for when they were working. Freed from the burden of a 9-to-5 job, they find that life has many new possibilities.

What follows are powerful reasons not to delay your retirement.

1. Delaying Social Security may not be right for you

Before deciding, consider your personal circumstances, advises Money Talks News founder Stacy Johnson:

“For some people it’s a great idea to take Social Security early, and for some people it’s a great idea to wait.”

You generally can start receiving Social Security as soon as age 62. Some people wait as late as age 70. If you plan to continue working until your benefits reach their maximum at age 70, delaying your claim will result in greater monthly payouts. However, if you have concerns about how long you may live or you need the money right away, filing an early claim may make the most sense.

Good to know: The system is actuarially neutral, designed to make your overall benefits work out approximately the same over the course of your retirement, no matter when you first claim them. Delaying your first claim increases your monthly retirement benefit, but it may not affect the total amount you receive over a lifetime.

2. Retirement can lower your housing costs

When you retire, you no longer need to live close to a job. Where you decide to live in retirement can affect your quality of life, due in part to the price of real estate and rental homes.

“Your house is typically the biggest expense in your budget,” says Kern. “Oftentimes, the best way to considerably decrease your costs is by downsizing or moving to a cheaper place.”

Smaller towns generally have less-expensive housing than large metropolitan areas. For example, in early February, the median home value in Boise, Idaho — a community of about 229,000 residents — was $406,579, according to Zillow.

Sound expensive? Well, compare that to San Francisco. Zillow says Frisco’s median home value in early February was $1,402,470.

3. Your good health may not last

Nobody lives forever. If you don’t get started on your post-retirement goals in a timely manner, you may never reach them.

“As grim as it sounds, if your health is on the decline, then it may make sense to take an early retirement in order to maximize the net payout of your lifetime,” says attorney Jacob Dayan, CEO of Chicago-based tax services company Community Tax.

Consider, too, that you may experience health problems as you age. If your retirement goals require being in good physical shape so that you can hike the Inca Trail in Peru or bicycle through Ireland, it makes sense to retire sooner.

4. You want to start a new career

Retiring allows you to pursue your true passions. Some retirees use their savings and pension benefits to finance the start of another career.

You can’t claim Social Security retirement benefits until age 62, but if you’ve invested in a retirement plan or qualify for a pension, you may be able to use part of those funds to launch a new career.

Dayan advises careful planning and consideration before making a change. If retiring early and starting a new career requires a substantial financial investment, consider all the risks, including tapping your retirement funds. Make sure the switch won’t put you in financial distress.

5. You can afford to do it

Money doesn’t buy happiness, but, with careful planning, an adequate retirement account may allow you to quit your job. If you no longer feel fulfilled at work and can afford it, it may be time to make the transition. A few things to consider:

  • When you’re starting out in your career, it’s easy to become obsessed with getting ahead. At some point, though, you reach your goal. You deserve a reward for your hard work.
  • If you have loved ones who need your help, and you can afford to stop working, retiring frees you to help them with their day-to-day activities.
  • Retirement offers you time to grow, cultivate new interests, pursue hobbies and spend time with loved ones. It frees you to do the things that matter most.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

12 Ways Retirees Can Earn Passive Income

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These days, “retired” doesn’t always mean “not working.”

According to a study of U.S. retirees from the nonprofit Transamerica Center for Retirement Studies (TCRS), “nine percent … are currently working for pay, including five percent who are employed part-time, two percent who are employed full-time, and two percent who are self-employed.”

More than half — 56% — of those surveyed said their top reason to keep working was “wanting the income.” The good news: You might be able to make some extra dollars via passive income — money that comes in without you doing much work, or any work at all.

Passive income is often synonymous with a large upfront investment, such as buying rental properties or dividend-producing stocks. But the following passive-income strategies can bring in extra bucks without investing a bunch of money or time.

1. Rent out a room in your home

Got an empty nest? Someone may be willing to pay to roost there.

You can advertise your spare space on your own or list it on a vacation rental website such as:

Yes, it takes some work: You might have to keep the room tidy and wash a load of sheets and towels once the guests depart. But in some parts of the country, you can earn enough money in just a few days to cover a mortgage payment, as we detail in “Do This a Few Days Each Month and Watch Your Mortgage Disappear.”

If you’re the gregarious type, you can have fun talking up your town or even showing visitors around. If not, advertise it as a “Here’s your key, we won’t bother you” arrangement. Some people simply want an inexpensive place to sleep and don’t care about sitting around chatting with the host.

2. Rent out your vehicle or gear

Your spare bedroom is just one of many things you could rent to others to bring in extra money.

Use your imagination. Maybe you have a ladder, stroller, surfboard, bicycle, boat, camera equipment or a great selection of power tools.

Peer-to-peer rental sites like the following will help you find folks who occasionally need such things but don’t want to own them:

Whatever you’re renting, keep in mind that ordinary insurance might not cover the commercial use of your property. An insurance rider may cover some items, but you may need a separate policy, so consult your insurance agent.

3. Become a peer-to-peer lender

What is peer-to-peer lending? In short, P2P lending sites such as Prosper accept loan applications from borrowers. Investors like you can put some of your money toward loans to those borrowers. When loans get paid back, so do you — with interest.

Overall, P2P investments “can provide solid returns that are really hard to beat,” according to Clark.com, the website of financial guru Clark Howard.

As with any loan, however, there’s the possibility of default. You may not earn anything or may even lose money.

Sound too complicated? Maybe this simpler form of P2P is for you: Worthy sells 36-month bonds for $10 each. The money that comes in is loaned to U.S. businesses, with lenders who have purchased these bonds getting a 5% annual rate of interest on their investment.

To learn more about Worthy bonds, check out “How to Earn 80 Times More on Your Savings.”

4. Get rewards for credit card spending

If you’re going to shop with plastic, make sure you’re rewarded.

The form that the reward takes is up to you. Some people covet airline miles. Others take their rewards as cash or a credit against their monthly statement.

The number of rewards credit cards — and their pros and cons — can be a little dizzying. For an easy way to compare your options, stop by our Solutions Center and check out travel rewards cards or cash-back cards in the Money Talks News credit card search tool.

5. Use cash-back apps

An app called Ibotta lets you earn cash rebates on purchases from retailers, restaurants or movie theaters.

Or you can do your online shopping through cash-back portals like:

These websites enable you to earn cash back on purchases from thousands of online retailers. To learn more about them, check out “3 Websites That Pay You for Shopping.”

6. Sell your photos

Smartphones have made decent photography possible for just about anyone. The next time you capture a killer sunset or an adorable kid-and-dog situation, don’t keep the image to yourself. Apps like Foap — which is available for Android and Apple devices — will help you sell it.

You can do even better if you have a good digital SLR camera, a tripod and other equipment. Stock photo companies like Shutterstock and iStockphoto, which favor high-definition, high-quality images, are venues for selling photos on just about any subject you can find.

7. Write an e-book

It’s possible to bring in cash without a high-powered book contract, thanks to self-publishing platforms.

Amazon’s Kindle Direct Publishing, for example, allows you to write, upload and sell your words fairly easily. My two personal finance books are for sale on Kindle, and they provide a steady stream of passive income.

I also sell PDFs of the books through my personal website. I use a payment platform called E-junkie to handle payments and deliver the book downloads — and this brings me more money per book than Amazon does, even when I offer readers a discount.

If you’re fond of a particular fiction genre, write the kind of stuff you’d like to read. Nonfiction sells, too: cookbooks, travel guides, history, memoirs and how-tos are a few examples. Or maybe you have a specific skill to teach — job-hunting or food preservation or raising chinchillas.

Pro tip: Fiverr.com is a good marketplace through which to find freelancers to hire for help with formatting, design and cover art.

8. Create an online course

If you’ve got useful knowledge, why not monetize it? Sites like Teachable and Thinkific will help you build a course that could change someone’s life, either professionally or personally.

Note that online courses are not limited to computer-based topics. A quick search turns up classes on:

  • Cake-making
  • Watercolors
  • Digital scrapbooking
  • Drone cinematography
  • Free-diving
  • Blacksmithing
  • Yoga
  • Parenting
  • Novel writing
  • Job hunting
  • Building a pet-care business

And that’s just for starters. Like writing an e-book, creating a course will take some work. But again: Once it’s up, the work is done.

9. Join rewards programs

Rewards sites like Swagbucks reward you with points for activities such as searching the internet, watching short videos and taking surveys. You can cash in your points for gift cards or PayPal cash.

Maybe you didn’t retire to spend hours taking surveys. But if you’re going to search the internet anyway, why not use Swagbucks’ search engine and earn some points?

To learn more about Swagbucks, check out “6 Ways to Score Free Gift Cards and Cash in 1 Place.”

10. Wrap your car with advertising

Turn your vehicle into a rolling billboard with companies like Carvertise. They’ll pay you for the privilege of putting removable advertising decals for a business on your automobile.

Writer Kat Tretina describes the process at Student Loan Hero. You can expect to earn $100 to $400 a month, depending on how much and where you drive, she says. Requirements include having a good driving record and a vehicle that has its factory paint job.

Pro tip: Car-advertising scams make the rounds regularly. Tretina offers these tips to avoid being victimized:

  • Legitimate companies don’t charge an application fee, and they’ll have a customer service phone line that lets you talk with a real person.
  • The car-wrapping cost should be covered by the company.
  • Take a hard pass on any company that doesn’t ask questions about your driving record, auto insurance, driving routes and type of vehicle.

11. Create an app

Maybe yours is one of those minds that says, “There should be an easier way to do (whatever) — and I think I know what it is!” If so, creating an app could bring in extra income.

It could also bring in zero dollars. But nothing ventured, nothing gained, right?

For example, personal finance writer Jackie Beck — who cleared $147,000 of debt — used her expertise to create an app called “Pay Off Debt.”

Not a coder? App-builder services exist. The WikiHow.com article “How to Create a Mobile App” tells how to get started. It’s a time-consuming process. But that’s one of the beauties of retirement: You set your own hours.

12. Become a package ‘receiver’

OK, this idea is unproven — so far. But it’s a solution whose time has come. The boom in online shopping has been a boon for thieves who find it easy to swipe packages left outside front doors before the intended recipients get home from work.

You might be able to do your part to thwart those lowdown thieves by marketing yourself as a “professional package receiver.”

Try this: Put the word out — through friends, social media, places of worship — that you are available to accept deliveries. If a package is for someone in your neighborhood, you could watch the shipping company’s tracking info and be at the home to take the package in. Or you could specify that packages be shipped to Original Recipient, c/o Professional Package Receiver — that’s you.

Before asking a fee of, for example, $1 per package, ask the person who wants to hire you what it’s worth to them. You might be surprised by a response like, “I’ll give you $5.” Decide, too, whether you’ll be charging per package or per order, and whether you’ll set a weight limit, such as no packages over 30 pounds.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

5 Ways to Get Amazon Prime for Free

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Shopping on Amazon can be convenient, especially if you are still spending more time at home amid the coronavirus pandemic. You can get anything from frozen pizza to light bulbs delivered to your door at the click of a button.

An Amazon Prime membership is even more convenient. Perks include not just faster shipping but also access to free e-books, music, file storage and more, as we detail in “These Are the 9 Best Benefits of Amazon Prime.”

While the convenience is great, the cost of membership may give you pause. In 2018, the online retailer raised the price of an annual Prime membership from $99 to $119 per year. For monthly subscribers, the cost went from $10.99 to $12.99 per month.

If you want to pay less but still enjoy the convenience of Amazon Prime, there are a few ways to get a free membership.

1. Get a free trial

If you want to try Amazon Prime to see if it’s worth paying for a membership, sign up for a free 30-day trial.

This is an option for people who are new to Prime as well as people who were Prime members in the past but have not been a member in the past 12 months. Just remember to cancel the trial before the 30 days is up if you decide you don’t want to pay for a membership.

Keep in mind that you can’t use a checking account or prepaid credit card to sign up for your trial: Your Amazon account must have a credit card.

However, you can use different email addresses to get multiple free trials, at least according to a 2018 Vice report. Again, remember to cancel each trial before it ends to avoid being charged for a membership.

If you’re a college student, you can sign up for a free Prime Student trial, which lasts six months. A Prime Student membership also costs less than a regular Prime membership if you decide to continue after your trial ends — $6.49 per month.

2. Use free Amazon gift cards

If you keep your Amazon membership after the free trial ends, consider paying for it with Amazon gift cards. There are various ways to get them for free. Check out the options in “8 Ways to Get Amazon Gift Cards for Free.”

3. Use credit card rewards

If you have a cash-back credit card, you could use your accumulated cash back to pay for a Prime membership — which kind of feels like you are getting Prime for free.

If you sign up for the Amazon Prime Rewards Visa Signature card, you will earn 5% cash back on purchases at Amazon and Whole Foods Market, and 1% or 2% everywhere else. If you spend $2,400 in a year at the 5% rate, you will earn $120 cash back — enough to cover the cost of a one-year annual membership.

If you’re in the market for a new card, stop by Money Talks News’ Solutions Center and use the free credit card comparison tool.

4. Switch cellphone plans

Looking to switch cellphone carriers? Some wireless providers offer Amazon Prime as a perk for signing up for select plans.

For example, Metro by T-Mobile gives customers Amazon Prime for free with select plans.

For more help finding the right plan for you, check out Money Talks News’ free cellphone and wireless plan comparison tool.

5. Share an account using Amazon Household

If someone in your household has an Amazon Prime membership, you can ask them to share it with you via Amazon Household.

Each of you keeps your own Amazon account, but the two accounts are linked, giving you access to select Prime benefits. They include:

  • Prime Shipping
  • Prime Video
  • Prime Reading
  • Amazon Photos
  • First Reads
  • Audible Channels
  • Prime Now
  • Other discounts and exclusives

Keep in mind that using the Amazon Household feature means sharing payment methods.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

7 Reasons Not to Claim Social Security Early

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Some people believe in starting to collect Social Security as early as possible, which is generally at age 62.

“Live while it is yet possible to live!” the early birds cry. “After all, I could die tomorrow, and then the government will keep my money.”

What’s more likely is that you’ll live a lot longer than 62.

According to the Social Security Administration (SSA), the average woman reaching the age of 65 today will live until nearly 87. The average man who is 65 today can expect to live until about 84.

One way to help ensure you don’t run out of money before then is to postpone claiming your Social Security retirement benefits. There are advantages to waiting as late as 70 years old.

While waiting until age 70 isn’t for everyone, following are some reasons that claiming sooner than later can be a bad idea.

1. Claiming early reduces your benefit

Some people think that taking Social Security at age 62 means more money overall. That’s not necessarily true.

The amount of your monthly benefit is based on a formula that’s meant to be actuarially neutral. That basically means you should get the same total amount of benefits over the course of your retirement regardless of the age at which you first claim benefits.

Your monthly benefit will be reduced if you claim before reaching what the SSA calls your “full retirement age,” an age set by the SSA that depends on the year you were born. For example, full retirement age for a person born in 1955 is 66 years and 2 months, while full retirement age for anyone born in 1960 or later is 67.

If you delay claiming until after your full retirement age, you will receive an even bigger monthly benefit once you do claim. For every year you hold off past full retirement age, your benefit will grow by as much as 8%.

The SSA’s “Quick Calculator” can give you a rough idea of your own benefit amount based on when you plan to retire.

A custom analysis of your claiming options, offered by specialized companies like Social Security Choices, can further help you determine when the best time is for you to claim your benefits.

Money Talks News founder Stacy Johnson himself got an analysis from Social Security Choices. To learn more about such a report — including how to land a discount on the cost of your report — check out “Maximize Your Social Security.”

2. You might outlive your other retirement income

If there’s a chance that you could use up your retirement funds before you die, a higher Social Security benefit could be crucial.

Getting every last dollar you can in your monthly benefit is important, especially if you don’t have a partner who’s also receiving benefits.

3. Working longer can increase your benefit

Your monthly benefit amount is based on the amount of income you earned during each of your 35 highest-earning working years. However, not everyone is able or willing to work for 35 years, often due to health or family issues.

When that’s the case, the government will substitute zeroes for the missing years in its calculation, which can significantly lower your monthly benefit amount.

Low-earning years also bring down the total, says Emily Guy Birken, author of “Making Social Security Work for You.”

As tempting as early retirement can be, think big-picture and look for ways to bring in more bucks before claiming.

“Anything you can do to replace those zeroes and anything you can do to replace those low-earning years will help beef up your retirement,” Birken tells Money Talks News.

4. COLAs will not boost your benefit as much

A lower monthly benefit means that each cost-of-living adjustment (COLA) — the inflation-based regular increase to your monthly benefit amount — will result in less money than it would have if you had postponed claiming Social Security.

Why? COLAs are a percentage of your monthly benefit. So, the smaller your benefit amount, the smaller your COLA dollar amount.

A 2% COLA, for example, would increase a $2,000 benefit by around $40 a month, or $480 per year. But it would increase a $2,480 benefit by about $49.60, or $595.20 per year.

5. You might stiff your spouse

Working at least until your full retirement age gives your husband or wife a better chance at a reasonably comfortable retirement if you die first.

That’s because widows and widowers often can benefit from Social Security survivors benefits, which are based on their spouse’s benefit amount.

Using the same benefit amounts as above, say a man gets a $2,000 benefit, while his wife’s check will be $1,700 upon her own retirement. If he dies first, she could be eligible for up to $2,000 in monthly benefits. But if he’d waited a few years to claim Social Security, and let his benefit amount grow, she could have been eligible for up to $2,480.

6. You might be hit by a ‘tax torpedo’

Some people want to let their portfolios grow, so they take Social Security early and live on it until they’re forced to withdraw required minimum distributions (RMDs) from their retirement accounts.

This plan can backfire, though, because of how Social Security benefits are taxed.

The extent to which your benefits are taxable is based on what the SSA calls your “combined income.” It includes taxable income, such as withdrawals from tax-deferred retirement accounts like traditional 401(k) plans and traditional individual retirement accounts (IRAs).

Depending on the amount of your combined income, up to 85% of your Social Security benefit could be taxed.

One way to dodge such a tax torpedo is to withdraw less money from your tax-deferred retirement account each year. And delaying claiming Social Security can help you do that because you’ll get a bigger monthly benefit.

In turn, Birken explains:

“You won’t need to take as much from your taxable retirement [plan] to make up the amount you need to live on.”

Some people don’t realize they might have to pay taxes on their benefits. Birken calls it “one of the really nasty surprises about Social Security.”

For more ways to keep Uncle Sam from taking part of your benefits, check out “5 Ways to Avoid Taxes on Social Security Income.”

7. You still like your job

Just because you’re old enough to retire doesn’t mean you have to retire.

Even a part-time salary — plus any other retirement benefits — could cover expenses until you hit age 70, at which point your Social Security benefit would be maximized.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

3 Easy Ways to Get Laundry Soap for Nearly Nothing

Man holding laundry detergent
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Laundry soap keeps your clothes clean and smelling good. But that doesn’t mean you have to let companies that make this stuff take you to the cleaners.

Here’s a dirty little secret the suds salesmen don’t want you to know: Some people get decent results with no detergent at all.

Others save 90% of the cost of store-bought detergent by making their own.

Is laundry detergent even necessary?

The blogger behind Funny About Money decided to forgo laundry detergent completely as part of an experiment. The result:

“By and large, all of the freshly washed clothing came out with an odor: It smelled of clean water!”

You might be surprised to learn that while clothing has been around in some form for thousands of years, laundry detergent is relatively new. And yet, people in ancient times were still able to get their clothing clean. How?

As it turns out, the main ingredient for cleaning other than water is agitation. Those early humans used rocks and rivers, but your modern washing machine can clean lightly soiled clothes by just pushing them around in water.

In other words, you can get away without using detergent at all.

But if the idea of using nothing more than water to wash your gym socks sounds a little scuzzy, you can make your own detergent. It’s easy.

DIY recipes

There’s no shortage of homemade laundry soap recipes. Here are the ingredients for one we found that seems to work pretty well:

  • 4 cups of water
  • 1/3 bar of cheap soap, grated
  • 1/2 cup washing soda (not baking soda)
  • 1/2 cup of borax (20 Mule Team)
  • 5-gallon bucket for mixing
  • 3 gallons of water

The directions:

  1. Mix the grated soap in a saucepan with 4 cups of water, and heat on low until the soap is completely dissolved.
  2. Add hot water/soap mixture to 3 gallons of water in the 5 gallon bucket, stir in the washing soda and borax, and continue stirring until thickened.
  3. Let the mix sit for 24 hours, and voila! — homemade laundry detergent.

There are lots of other recipes and articles online. One I especially liked was at The Simple Dollar. And Tipnut lists 10 different recipes.

My experience with homemade laundry detergent

Of course, who would post a recipe without trying it out first?

I made and washed several loads of clothes with homemade detergent. And I — like many before me who’ve traveled this road — couldn’t tell the difference between store-bought and homemade.

Total cost per load? In the neighborhood of 2 cents. Store-bought detergent, depending on what you buy and where you buy it, can cost about 20 cents per load — 10 times more.

3 ways to slash the cost of detergent

So, now you have two alternatives to the headache of paying a bunch of money for laundry detergent: Ditch it altogether and use nothing more than water in your washer, or save 90% by making your own laundry soap.

And here’s a third idea for those who don’t intend to do either of the above options: If you’re going to stick with store-bought, just try using less.

I tried just filling the bottom of the measuring cup that came with my store-bought detergent. Guess what? No difference in smell or cleanliness that I can detect.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

11 Foods That Can Keep for Years

Woman shopping for groceries
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If you hadn’t previously thought about how you would build up a food supply for an emergency, the coronavirus pandemic probably made you consider it.

What kinds of foods are best to keep in the pantry and freezer in case of a natural disaster, zombie apocalypse or pandemic that drags on for more than a couple of weeks?

Start with the following options. These foods can last for years before going bad.

1. Oats

This prolific cereal grain and staple of many American breakfast tables can last up to 30 years, according to the Utah State University Extension.

Store oats in airtight containers in a cool, dark, dry place. To maximize shelf life, use oxygen absorber packets.

2. White rice

Also known as polished rice, white rice has a shelf life of 25 to 30 years when properly stored. That’s why we included it in “20 Things That Are Actually Worth Stockpiling.”

The best temperature for storing this grain is 40 degrees Fahrenheit or lower. The best container is one that is sealed and oxygen-free.

3. Popcorn

Unpopped kernels can last two years, according to the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln. Best storage is at room temperature.

4. Dark chocolate

Dark chocolate lasts up to two years if properly stored, according to Harvard’s T.H. Chan School of Public Health.

It should be stored in a tightly sealed containers and at a temperature of 65 to 70 degrees. Keep it in a dry location as well. Do not refrigerate it, because the sugar can rise to the surface and give the chocolate a whitish appearance.

5. Honey

Winnie-the-Pooh’s favorite can remain stable indefinitely, according to the National Honey Board. However, a two-year shelf life is standard.

The trade group explains:

“Honey stored in sealed containers can remain stable for decades and even centuries! However, honey is susceptible to physical and chemical changes during storage; it tends to darken and lose its aroma and flavor or crystallize. These are temperature-dependent processes, making the shelf life of honey difficult to define.”

6. Powdered milk

According to the U.S. Department of Agriculture’s FoodKeeper storage guide, powdered milk can last three to five years — but keeps only three months once the package has been opened.

For best storage, keep at cool temperatures in a dark location.

7. Dried beans

Dried beans and lentils have a shelf life of up to 30 years or more when stored properly, according to the Utah State University Extension. However, for best color and flavor, they should be used within 12 months.

The best method of storage is in No. 10 cans or Mylar-type bags with the oxygen removed, and keep the beans at a colder temperature.

8. Certain cheeses

Low-moisture, hard cheese can last from 10 months to several years, reports Dairy Foods Magazine. For example, the typical shelf life for Parmesan is up to five years, and that of aged cheddar is up to 10 years.

The Food Network has a handy how-to on best practices for cheese storage.

9. Canned foods

Generally, commercially canned foods that are canned in liquid should maintain their best quality until their expiration date, which is usually two to five years from the manufacture date, according to the Utah State University Extension.

Note that unopened home-canned foods have a shorter shelf life — one year — and should be used before two years. The USU Extension explains:

“Commercially canned foods are superior to home canned for food storage. Commercial canners can closely control quality and safety to produce the best product.”

When buying canned foods, avoid cans that are:

  • Rusted
  • Dented
  • Scratched
  • Bulging

10. Frozen foods

That succotash that’s been in your freezer for years might not taste amazing, but it’s perfectly safe and likely still nutritious — assuming your freezer has been kept at zero degrees Fahrenheit or colder.

According to the U.S. Department of Agriculture, foods frozen at that temperature remain safe almost indefinitely, and freezer storage has little to no effect on food nutrient value. Quality is a different matter, but the USDA has a handy storage chart showing how long different frozen foods maintain their quality.

The USDA recommends storing frozen food in packaging that keeps air out.

11. Sugar

How long does the sweet stuff last? Domino Sugar says:

“Sugar, properly stored, has an indefinite shelf life because it does not support microbial growth.”

However, Domino adds that sugar is best when used within three years of purchase. Powdered sugar is best when used within two years of purchase.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

16 Products That Coffee Drinkers Will Love

Woman with cup of coffee
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Want to take your love of coffee to the next level? We’re here to help!

From the world’s strongest cup of joe to caffeine-inspired jewelry and the definitive guide on java, we’ve brewed up a list of amazing Amazon

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com