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We’ve learned, grown and achieved a lot in the past 12 months here at PrairieView – and we’re so excited to see what 2024 will bring for our team and clients. With that in mind, we’ve rounded up our top 10 blogs and podcasts for your review, from cleaning up your credit to collecting Social Security benefits and more. 

But the new year doesn’t mean you should leave everything behind in 2023! In fact, it’s been reported that intentional reflection is key to success, both professionally and personally. As you build your goals and financial plan for the year, looking back is just as important as looking forward.

Whether you’ve already implemented these tips or are continuing to grow, these pieces can offer perspective and guidance along the way. 

Our Top 10 Blogs and Podcasts of 2023 – And How They Can Help You in 2024

1. [Blog] 6 Common Questions and Answers about Social Security Survivors Benefits

What happens to Social Security benefits when a loved one passes away? 

Often referred to as “survivors benefits,” these funds are meant to replace loss of income due to the death of a family member who would have otherwise collected their own Social Security.

But from qualifying and applying to calculating your maximum amount, there are often several questions surrounding survivors benefits – and we’re here to help. Click below to explore six common questions (and answers) about this federally funded program. 

Read the full blog. 

2. [Podcast] Episode 19: Financing Retirement Through Social Security, Pensions and Personal Savings

The best retirement plans usually involve more than just a savings account. Social Security, pensions, Roth IRAs and 401(k)s are all solid options – but how do you know which is right for you?

The answer is likely some combination of the above, depending on your age, goals and other factors. In this podcast episode, we dive into how you can plan your future income, what amount you should save each year and other important considerations.

Listen to the episode. 

3. [Blog] How to Calculate Your Maximum Social Security Benefit

Continuing with the theme of Social Security, did you know that your total benefit amount can vary widely?

For example, someone who retires in 2023 at 70 years old could receive up to $4,555 per month from Social Security, while a 62 year old would be capped at just $2,572 per month!

Your age, work history and the cost of living can also make a difference in your total payout. And while you can’t see exactly what the future will hold, it’s pretty easy to estimate your future benefits (especially with the nifty calculators available online). Click below to start crunching the numbers and uncover your potential earnings.

Read the full blog. 

4. [Podcast] Episode 24: Estate Planning in Retirement

Estate planning can help protect you and your loved ones in the event that you pass away or become otherwise incapacitated. It’s especially important for those who have young children to keep in mind. But if something were to happen to you tomorrow, would a lump sum inheritance really be best for your kids?

Luckily, there are options available (no matter who your beneficiaries are). In this episode, we’re covering the basics of trusts for estate planning purposes, including tax implications you may need to keep in mind. 

Listen to the episode. 

5. [Blog] At What Age Do I Qualify for Medicare?

What happens to your health insurance after you retire? For more than 60 million Americans, Medicare is the answer. 

Medicare is a federally funded insurance program available to those 65 or older, as well as other individuals who meet disability criteria. But what if you’re still working at that age?

We’ve got you covered. Click below to learn more about what age you need to be to apply for and collect Medicare, along with other helpful information.

Read the full blog. 

6. [Podcast] Episode 23: Credit Clean-Up Tips to Get Your Kids Ready for College

Your teen is all grown up and ready to move into the dorms – but are their finances ready?

If not, you may end up risking your hard-earned retirement savings or taking out unnecessary loans come college time. 

Teaching your kids about the importance of credit can help prepare them to make sound, responsible decisions as adults. In this episode, we’re going over simple ways you can help build credit for your child while they’re still at home, while also teaching them about what factors influence their credit in the short- and long-term. 

Listen to the episode. 

7. [Blog] What Does Dave Ramsey Say About Real Estate Investing (and Is He Right?)

If you’re thinking about investing in real estate, this one’s for you!

We’re taking a look at seven pieces of real estate advice from Mr. Dave Ramsey himself, from realtors to budgets and even loans you should (and shouldn’t) consider. 

With a hot market and high interest rates dominating 2023, now is a great time to brush up on your real estate knowledge – and this blog can help you get started. 

Read the full blog. 

8. [Podcast] Episode 21: Tax Advantages of Installing Solar Panels on Your Home

Solar panels could lower your electricity bill – and maybe even your taxes. 

That’s because American homeowners can receive up to 30% of a tax credit for the cost of materials and installation related to solar panels. However, the credit isn’t going to offset the other 70% of initial costs, and the incentives available aren’t permanent. So how do you know if solar panels are the right (financial) move for your family home? 

Our team tackles this trending topic in episode 21 of “Retirement Readiness,” available at the link below. 

Listen to the episode. 

9. [Blog] Social Security: When Should You Start Collecting Benefits?

Remember when we said that a variety of factors could influence your Social Security payout? We’re digging deeper into those factors in this blog, which explores how you can estimate your potential benefits and look up current benefits, as well as four things to consider before applying. 

Each individual is different, and there’s no one “right” answer, but the more knowledge you have on the program, the more confident you and your loved ones can feel in your decision. 

Read the full blog. 

10. [Podcast] Episode 28: Part-time Work in Retirement

Let’s round out the list with a fresh take: Part-time work in retirement can be a good thing. 

While many people think your golden years are all about relaxing, a part-time job or volunteer work can actually provide much-needed structure, purpose and social interaction for retirees (as well as potential income).

Want to learn more? Take a listen at the link below to learn more about the pros and cons of part-time work in retirement. 

Listen to the episode. 

Wherever you are in your financial journey, these top 10 podcasts and blogs from 2023 offer insights that can round out your knowledge and inspire financial growth in the new year. And, of course, keep an eye out for fresh content over on our website!

Make a Plan with PrairieView

If you’re interested in personalized financial guidance and timely insights, click here to connect with a member of the PrairieView team and get started today. 

 

[Disclosures]

PrairieView Wealth Partners, LLC is an SEC registered investment adviser.   SEC registration does not constitute an endorsement of PrairieView Wealth Partners, LLC by the SEC nor does it indicate that PrairieView Wealth Partners, LLC has attained a particular level of skill or ability.  This material prepared by PrairieView Wealth Partners, LLC is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Information presented herein is accurate as of the date it was prepared. Advisory services are only offered to clients or prospective clients where PrairieView Wealth Partners, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by PrairieView Wealth Partners, LLC unless a client service agreement is in place.  This material is not intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. PrairieView Wealth Partners, LLC is not an accounting firm. Please consult with your tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

It seems like every day brings another example of why it’s so important to account for medical in your long-term financial plans. Fidelity reports that a 65-year old in 2023 could need about $157,500 saved after taxes just to cover healthcare costs in retirement. And a married couple with the same demographics could need north of $300,000. 

That’s why it’s so important to understand the benefits and programs available that could help alleviate those costs – programs like Medicare. 

We’ve covered some of the basics of Medicare before, like what age you can qualify and how it can affect your golden years. Today, we’re continuing that journey and diving into the Medicare 8-minute rule: What is it, which services qualify, pros and cons you can expect and more. 

What is the Medicare 8-Minute Rule?

The 8-minute rule (sometimes called the “Medicare rule of 8”) is a time-based billing system used by Medicare to calculate costs for services under Part B. 

Related: What’s the Difference Between Medicare Parts A, B, C and D?

With this system, medical offices keep track of the time you spend directly with the doctor or provider and then break it down into “units.” You are then billed based on the number of units reported. The cost of a unit depends on your specific Medicare plan. 

To be clear, one unit does not equal one minute – that’s why it’s called the 8-minute rule! You must spend at least eight minutes (but less than 22 minutes) directly with the provider for it to count as a single unit. After 22 minutes, you’ll accrue units in 15-minute increments.

It may sound complicated, but it’s fairly simple. Let’s look at some real world examples to better understand how units are calculated. 

Understanding the math behind the 8-minute rule

Imagine you are a Medicare patient and you have a physical therapy session today. Under the 8-minute system, you know that the cost will depend entirely on how much time you spend with the physical therapist. 

Your appointment begins at 10 a.m. and ends at 11:07 a.m., meaning you spent a total of 67 minutes with the specialist. So what is that in terms of billable units?

The answer is four units. But why?

If you spend just five minutes in the session, no units will be billed, because it doesn’t meet the eight-minute minimum. 

If you spend anywhere between eight and 22 minutes with the therapist, you’ll be billed for one unit. If you spend between 23 and 37 minutes, you’ll accrue two units. Between 38 and 52 minutes would be three units, and so on. 

There are a number of great charts out there that break down the units, like the one below from MedicareFAQ.com. 

What Services Do (and Don’t) Fall Under the 8-Minute Rule?

It’s important to note that not all medical care is billed with the 8-minute rule – it can vary depending on the facility, care received and the specific provider or doctor, among other factors. And, of course, you also need to be a Medicare Part B beneficiary for it to apply. 

*Note: To be certain about the billing process used, you’ll need to check directly with the facility or your Medicare plan.

Some services that often do fall under the rule include:

• Physical therapy, occupational therapy and chiropractic care
• Mental health and rehabilitation services
• Speech/language pathology
• Hospital outpatient care (often including emergency services)
• Some nursing facilities and other private practices

Remember that only the time you spend individually and directly with the provider counts toward the total billable time – any time the doctor spends preparing for the appointment or updating your records afterward does not. Group services like small-group physical therapy also wouldn’t be applicable.

Pros and Cons of the 8-Minute Rule

There are a few benefits and drawbacks to the 8-minute rule for both patients and providers.

For example, the rule encourages accurate time-tracking in outpatient medical facilities, which provides better documentation of care. However, the time it takes to actually do that time-tracking adds an extra burden to medical providers and their staff – giving them less bandwidth to spend with patients and increasing operational costs. It can also be tough for Medicare to enforce proper time-tracking across all qualified facilities. 

Additionally, all care under the 8-minute rule must take place in-person, so virtual care doesn’t count. One recent study found that telehealth appointments increased by 766% in the first few months of the Covid-19 pandemic, and that trend toward digital care appears to be sticking around, remaining a popular choice for many who have trouble commuting to doctor’s offices. 

However, fans of the 8-minute rule enjoy the standardized aspect of the billing process. Simply by knowing how much time they’re spending one-on-one with the doctor, patients can accurately calculate their costs. 

How Does the 8-Minute Rule Factor into Your Financial Plan?

By understanding how your services will be billed, you can better plan for your healthcare costs in retirement – especially if you think you’ll need substantial outpatient care that falls under the 8-minute rule, like long-term mental health treatment.

Having a strong understanding of your potential expenses is also part of building the two-comma lifestyle we often talk about at PrairieView Wealth Partners (“two-comma” is the term we use for those that reach millionaire status before retirement).

So if you’re likely to enroll in Medicare (or already are enrolled), consulting with a financial advisor and researching the intricacies of Medicare billing processes are great ways to get started. 

Make the Most of Your Medicare Benefits

Interested in learning more about how Medicare could factor into your retirement plan? The PrairieView team provides personalized guidance built around your individual needs and goals.  Click here to connect with a member of our team and get started today.

 

[Disclosures]

PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.

PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.

Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.

Any deep dive into personal finance will likely bring you to Dave Ramsey – the author, radio host and entrepreneur who has made a name for himself as an expert in finance. 

His straight-shootin’ attitude and easy-to-follow approach has made Ramsey a fan-favorite for people looking to manage debt and grow their wealth – but what does he have to say about real estate investing?

With a hot market and high interest rates, now is a great time to brush up on your real estate investment knowledge. Today, we’re exploring seven pieces of real estate investment advice from Ramsey himself – and whether you should listen to it. 

7 Pieces of Real Estate Investing Advice from Dave Ramsey

1. “You need a local real estate agent.”

The Ramsey Solution’s How to Invest in Real Estate guide writes: 

“[A local real estate agent] will know what areas you should look into and what hurdles you might face as a real estate investor. And when it’s time to buy a property, they can help you get a better deal than you’d get on your own.”

But is that always the case? Finding a realtor can be time-consuming and add an extra step to your real estate journey – so is it really worth it?

Ramsey is right. A realtor offers key insights into the homebuying process, and a local real estate agent can offer insights specific to your area, including:

• Market knowledge (like neighborhoods that could best fit your needs, buying trends, etc.)
• Property search, which means you can spend less time searching online
• Negotiation skills to help you get the best deal
• Access to a network of other professionals, like contractors, inspectors, appraisers and more.

As realtor David Cobb said in our recent podcast episode, expert realtors have access to private listing networks and pre-MLS listings, widening your options. He recommends looking at online reviews as a way to find a realtor with a track record of success. 

2. “Stick to the budget – especially in a hot housing market.”

Ramsey writes that the emotional aspect of a home search can lead to ever-increasing budgets, noting that “one in five first-time home buyers offered more than their budget allowed, and nearly 15% totally waived contingencies (like a home inspection).”

Is that always the case – or is a little extra dough worth it for your dream home?

Ramsey is right. When your real estate investment is also your family’s home, it’s easy to get swept away by grand visions. It can also be discouraging to put offer after offer in on a great home, only to lose out to a better offer. 

However, it’s important to keep a long-term perspective. You likely set a budget for a reason, and upping that number could affect your ability to meet other financial goals. 

If you find the “perfect” home, but it’s out of your budget, then it’s not the perfect home – keep looking!

3. “There’s nothing passive about being a landlord.”

Many people think that renting out property – whether it’s a single family home, apartment complex or office building, can be a great way to generate passive income. Dave isn’t so sure. 

While investing in stocks or bonds is truly passive (in that the value of your investments increases or decreases without any effort on your part), being a landlord requires quite a bit of effort. 

Ramsey is right. Being a landlord might be appealing when you consider the extra income, but also keep in mind that it’s a responsibility. Whatever type of property you’re renting out, in most cases you’ll be the one they call for repairs, maintenance, etc. Those tasks can take up your time and add up cost-wise very quickly, too!

If you’re interested in generating passive income but really want to emphasize the “passive” part, then being a landlord may not be the right move for you. 

Related: 7 Clever Ways to Save an Extra $100 Each Month

4. “Pay in cash any time you buy or renovate investment properties.”

Dave Ramsey is clear on this: Mortgages shouldn’t be in your investment plan. He writes:

“The truth is, there’s no such thing as “good debt.” Debt always equals risk – and the riskier your investment, the more likely you are to lose everything.”

Is he right – and does a real estate investment require a 100% down payment?

Ramsey is (kind of) right. If you have a significant amount of extra money, this is solid advice. But for most people, paying all-cash on a property might impact your ability to invest in retirement, pay for emergencies and cover other important costs. 

This is also only a good idea if you have enough extra cash to keep your emergency fund full and pay for unexpected repairs – skipping the mortgage on your investment property is great, but not if you have to take out loans later on to cover costs. 

Of course, if you can comfortably pay in cash for your investment property, it’ll save you money and keep you out of debt!

5. “Always choose a 15-year fixed-rate conventional loan.”

Ramsey strongly suggests no mortgage – but if you’re going to, it’s got to be a 15-year fixed-rate loan. He writes:

“Going for a 30-year loan may seem like a good way to lower your payments, but it’s also a good way to pay a ton more (like, tens of thousands of dollars) in interest while you stay in debt for an extra decade and a half. You should also stay far away from FHA and VA loans, and all their pesky fees.”

Will a 30-year loan really cost that much more than a 15-year mortgage?

Ramsey is (kind of) right. Fifteen-year mortgages will indeed save you thousands of dollars over a 30-year loan, while also getting you out of debt much quicker. 

However, it also means you’ll have a larger monthly payment. If you’re in a place where you need more cash available or you’re prioritizing other financial goals (like retirement contributions or helping your parents pay for long-term care), the 30-year repayment plan may make more sense. 

Like in most cases, a one-size-fits-all approach to financial planning usually isn’t the answer!

6. “Flipping houses isn’t as glamorous as TV shows make it seem.”

He says:

“If you love hands-on work, then have at it! If you don’t, you’d better hire a contractor. And either way, budget plenty of time and money for the process.”

Is a DIY house-flip as fun as it seems, or will it end up costing you more time and money?

Ramsey is right. House-flipping looks easier and like more fun than it actually is, and even a seasoned DIY-er will likely need (costly) expert help. Often, house-flippers uncover unexpected (but necessary) repairs that disrupt both timelines and budgets. 

Unlike renting (which builds income as soon as you find a tenant), the longer it takes to flip a house, the more the house costs you since you’re paying the mortgage and utilities until you sell it, which adds the stress of a time crunch. 

7. “Getting preapproved before you go house hunting is a must.”

In his 2023 Real Estate Trends: What You Need to Know report, Ramsey writes:

“[Getting preapproved] is even more important when home supply is low. If you don’t do this legwork ahead of time in a market like this, you could give a preapproved buyer free rein to swipe the home you want right out of your hands.”

But a preapproval requires sifting through a lot of paperwork, and if you’re just considering a property purchase, is it really necessary?

Ramsey is right. Preapproval gives you a strong idea of what you can afford, makes you more appealing to sellers and will make the buying process go smoother. 

Investing in real estate – whether it’s your first home, a vacation space or a rental property – is a big decision. Dave Ramsey offers solid advice for you to reference, but keep in mind that each person’s financial journey is different. Take the advice you need and leave the rest – and if you’re unsure, it’s best to reach out to a licensed real estate agent or your financial advisor to get personalized guidance. 

Invest in Your Future with PrairieView

Interested in learning more about real estate investing? Connect with a member of our team to get started today.

[Disclosures]

 

PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.

PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.

Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.

What happens to your health insurance after you retire?

Healthcare is a significant cost for most Americans, and that expense usually grows in retirement as health declines and your odds of sustaining an injury rise. But once you leave the workforce, there’s a good chance you’ll lose that employer-sponsored insurance plan – then what?

This question becomes more important as you consider just how expensive healthcare in retirement can be – one report from Fidelity shows that a retired couple will need north of $300,000 set aside in retirement just for health-related costs. Yet it’s estimated that the average American will have just $255,200 saved up by the time they reach retirement age. With numbers like that, many Americans are left wondering how they’ll afford even routine healthcare needs. 

The answer could lie in Medicare, a healthcare benefits program available to certain retirees and those with a qualifying disability. Let’s explore the basics of Medicare, including how you can figure your age of eligibility. 

What is Medicare?

According to the official Medicare website, “Medicare is the federal health insurance program for: 

• People who are 65 or older
• Certain younger people with disabilities
• People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).”

The Medicare program paid out $829 billion in total in 2021 – most of which comes from Medicare Part B, accounting for 48% of the budget. 

CNBC reports that more than 62 million people were enrolled in Medicare as of 2020, and the average recipient has about two-thirds of their healthcare services covered by the program.

The Many Layers of Medicare

There are several different pieces to Medicare. For example, Medicare Part A is specifically intended to cover inpatient hospital stays, skilled nursing facility care, hospice care and some home health care. Part A is usually paid through taxes from your working years and often doesn’t require a monthly premium.

Medicare Part B is for more generalized medical care, such as outpatient care, doctor’s services, preventive services and more. Part B usually comes with a monthly premium you’ll need to pay. 

Part D is for prescription drug coverage, and is offered through private insurance companies. Those who choose to participate in Medicare Part D can shop around for the best plan per their specific needs. 

What are Medicare Advantage and Medigap?

Medicare Advantage is also known as Medicare Part C. Think of Part C is a private insurance option that essentially combines Part A and B, but often include additional benefits like vision or dental coverage. If you choose a Medicare Advantage plan, you’ll likely need to pay the Part B premium along with any additional premium required by the Medicare Advantage plan.

If you want additional coverage, Medigap could be another great choice. Medigap plans are offered by private insurance companies and aim to cover some of the “gaps” in original Medicare plans, such as copayments, coinsurance and deductibles. 

To qualify for Medigap, you must already be enrolled in Medicare Part A and B. There are a variety of Medigap plans available, each with a different combination of benefits. 

Medicare vs. Medicaid

These two are often confused, but are actually separate programs. The U.S. Department of Health and Human Services notes:

“Medicare is federal health insurance for people 65 or older, and some people under 65 with certain disabilities or conditions. Medicaid is a joint federal and state program that helps cover medical costs for some people with limited income and resources.”

Medicare Eligibility: At What Age Do You Qualify?

Medicare is available to those aged 65 years and older or who have a qualifying disability. However, you can actually first sign up for Medicare three months before your 65th birthday. While you often don’t have to enroll at 65 years old, it’s important to understand the rules so you can avoid any late enrollment penalties (more on that below). 

If you choose to continue working past the age of 65, you may be able to collect both your employer-sponsored insurance plus Medicare. In this case, the employer-sponsored will pay first, and then Medicare. Many factors, such as your employee benefits, company size and marital status, can affect your specific enrollment requirements. 

You can view a chart of common exceptions to the “age 65” rule by clicking the image below:

How Can You Avoid Late Penalties?

Late enrollment penalties can occur if you don’t sign up for the proper Medicare plans on time according to your circumstances. Penalties aren’t just a one-time payment – they’re a monthly charge that could last the rest of your life, so it’s crucial to avoid them!

To dodge those extra charges, most people need to enroll in Medicare during their initial enrollment period, which ends three months after the month of your 65th birthday. 

Humana writes:

“If you’re not eligible for premium-free Part A based on your work history, your monthly premium may increase if you don’t purchase it when you are first eligible. In most cases, if you don’t sign up for Part B when you’re first eligible, you’ll have to pay a penalty – and not just upon enrollment. You’ll continue to pay that penalty for as long as you’re enrolled in Medicare Part B.”

The many facets of Medicare can be confusing – and a small error could cost you big bucks. To ensure you get enrolled in an appropriate plan at the right age, it’s best to consult with a qualified professional. 

Start the Conversation Today

Medicare is an important part of retirement planning, and understanding its various functions, costs and options is essential for a financially secure and healthy retirement. Click here to consult with a financial advisor who specializes in retirement planning and healthcare to get started today.

[Disclosure]

PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.

PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.

Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.

Most people know that Social Security is taken out of your paycheck every month to help cover retirement costs – but how (and when) do you actually start seeing those payments? Do you have to start collecting at a specific age? Is there an application process?

The answers aren’t one-size-fits-all. In fact, anyone between the ages of 62 and 70 can start collecting their benefits. 

Today, we’re exploring the basics of Social Security benefits, including how to choose when you should start cashing in on your Social Security retirement funds. 

How Does Social Security Work?

Social Security is a government program in the United States that provides financial support to eligible individuals and families, primarily in retirement, but also in cases of disability or death. The program is designed to ensure a basic level of income for people who have reached retirement age, become disabled or have lost a breadwinner. 

It’s funded through a payroll tax – one you’ve likely noticed coming out of your paycheck each month. Employers also pay the tax – as of 2023, both your company and you will pay 6.2% in Social Security each pay period. Self-employed individuals will cover both sides of the tax, for a total of 12.4%. 

Social Security Benefits vs. SSI It’s important to note that Social Security benefits are not the same thing as Supplemental Security Income, or SSI –  although both are managed and distributed through the Social Security Administration.  You collect Social Security benefits after you or a family member pays into the program throughout your working years, and then collect payments in or near your retirement. On the other hand, SSI is a need-based program for elderly, blind and disabled individuals with limited income and resources. SSI is not based on work history or previous Social Security payments.

You can choose to begin receiving your Social Security benefits starting at the age of 62, and the maximum Social Security age to start collecting is 70. However, when you choose to cash in will also affect how much you’ll receive (more on that below). 

Whenever you’re ready to start collecting, you can fill out an application online or request an appointment at your local Social Security office. 

You will need to gather several documents, including your:

• Social Security card
• Birth certificate or other proof of age
• Proof of U.S. citizenship (if applicable)
• U.S. military service papers (if you served prior to 1968)
• Copies of your W-2 forms

This list is not exhaustive; you may be required to present additional documents upon request. 

So How Much Will I Get?

Your specific payout will depend on several factors – like when you start collecting – but we can still estimate it based on a few key indicators. 

For one, we know that the average Social Security payment in January of 2023 was $1,827 per month (an increase from $1,681 in 2022). 

Secondly, you can look at your 35 highest-earning years of work. U.S. News reports: 

“Social Security payments are calculated using the 35 highest-earning years of your career and are adjusted for inflation. If you work for more than 35 years, your lowest-earning years are dropped from the calculation, which results in a higher payment. Those who don’t work for 35 years have zeros averaged into the Social Security calculation and get smaller payments.”

The Social Security Administration offers an easy-to-use calculator as well, which you can access here. 

How to look up your Social Security benefits

Once you make an online account with the Social Security Administration, you can easily view your future/current benefits, see the status of your applications and access other features. 

Click here to create an account and access the Social Security Benefits Lookup. 

How to find your maximum Social Security salary

The SSA writes:

“The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2023, your maximum benefit would be $3,627. However, if you retire at age 62 in 2023, your maximum benefit would be $2,572. If you retire at age 70 in 2023, your maximum benefit would be $4,555.”

The maximum can change each year, so it’s not set in stone – what’s true for 2023 will likely look different in 2024 or 2025!

4 Factors to Consider Before Collecting Your Social Security Payments

From age to health and beyond, there are several factors to consider before applying to collect your benefits. 

1. Age

One of the most significant factors influencing your Social Security benefit amount is the age at which you decide to start collecting payments. You can choose to begin receiving benefits as early as age 62, but keep in mind that this choice comes with a trade-off. 

Starting early means your benefit payments will be reduced, often by a substantial amount. The SSA notes that someone turning 62 in 2023 that starts collecting would get about 30% less than if they waited until the full retirement age (which is considered 67 years old). 

Essentially, waiting until later can give you higher payments. 

2. Finances

Another critical consideration in the decision to collect Social Security is your immediate financial needs versus your long-term financial security. If you’re facing immediate financial challenges and require a stable source of income to support your quality of life, starting to collect benefits earlier might be a necessary choice. 

However, if you have a stable income now and don’t need the money right away, waiting could optimize your total benefits. 

3. Health

If you expect to live longer than the average life span, waiting to collect Social Security could prove beneficial in the long run. By delaying benefits, you’ll receive larger monthly payments throughout your retirement, which can be especially valuable as you age and face potential healthcare and living expenses. 

Conversely, if your health situation is uncertain or you have a reason to believe your lifespan might be shorter than average, it could make sense to start collecting earlier.

4. Spousal benefits

For couples, Social Security planning involves considering not only your benefits, but also those of your spouse. Strategically navigating Social Security can allow you and your partner to maximize your combined benefits. 

A recent article from Forbes states: “If you’re receiving Social Security payments in retirement, your spouse (or former spouse) may qualify to receive up to 50% of the amount of your benefits. These payments don’t reduce the value of your Social Security benefits in any way.”

If you’re curious about how your spouse’s benefits could affect your own (or vice versa), it’s best to connect with a financial planning expert or reach out directly to the Social Security Administration with your questions. 

The decision of when to collect your Social Security payments is multifaceted and deserves careful consideration. Your age, financial situation, health and spousal status can all affect your (and sometimes your loved ones’) potential benefits. Before making any final decisions, it’s wise to consult with financial advisors or retirement planning professionals who can provide personalized guidance based on your unique needs and goals. 

Plan for the Future with PrairieView Wealth

Ready to start planning your retirement income? Click here to download our free Social Security Benefits ebook and get started today. 

[Disclosure]

PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.

PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.

Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.

You’ve likely noticed that Social Security coming out of your paycheck each month – but the intricacies of Social Security often remain a mystery to many. That mystery can be compounded when a loved one passes away and you become qualified for survivors’ benefits. 

Social Security benefits for survivors are intended to help make up for loss of income when an individual passes away. Since that person is no longer around to collect on their benefits, family members can apply to receive the funds. 

If you’re in this position, you likely have many questions – do I qualify? How do I begin the process? What amount will my family receive and for how long?

Related: Financing Retirement: Social Security, Pensions and Personal Savings (Podcast 19)

Today, we’re exploring Social Securities benefits from the perspective of a “survivor” to help you navigate the process and successfully claim your benefits. 

6 Common Questions (and Answers) About Social Security Benefits for Survivors

Are there Social Security benefits of divorced spouses? What about Social Security benefits maximums? We’re answering all of these questions and more. 

1. What are Social Security benefits for survivors?

Social Security survivors benefits are meant to replace loss of income due to the death of a loved one who would have otherwise collected their own Social Security. These benefits are managed and distributed by the Social Security Administration, and usually paid to “widows, widowers and dependents of eligible workers.” 

2. How do I know if I qualify?

The Social Security administration lists out the usual qualifying individuals, including:

• Surviving spouse age 60 or older (age 50 or older if they have a disability).
• Surviving divorced spouse, under certain circumstances.
  • Note that Social Security Benefits of a divorced spouse can be impacted by remarriage. 
• Surviving spouse at any age who is caring for the deceased’s child who is under age 16 or has a disability and receiving child’s benefits.

Additionally, unmarried children under the age of 18 or with a disability that began before the age of 22 can usually qualify. Full-time students in secondary school (high school) can qualify up to age 19. 

Note: There are other situations where you could qualify depending on the circumstances (step-children, grandchildren, dependent parents, etc.) – but these are more unusual.

3. How do I claim survivorship benefits?

To claim benefits, you’ll have to fill out an application over the phone or in person at a Social security office. Currently, there’s no way to apply for survivors benefits online. 

Click here to find the office nearest you.

You can also click here to download the forms and documents you’ll need on hand during the application process. 

4. If I’m claiming benefits as a widow or widower, would remarrying affect my benefits?

Social Security benefits after a spouse’s death can be confusing. Many often wonder if remarrying after a spouse passes away will affect their survivors benefits. The answer: It depends. 

Mostly, it depends on your age. Those over the age of 60 can remarry and still receive benefits, while those under the age of 60 cannot. If you’re 59 years old and get remarried, you’ll have to forfeit any of those benefits you would otherwise have qualified for. 

5. How do survivors’ benefits work for minors, dependents or those with a disability?

Children that qualify can receive up to 75% of the deceased parent’s basic Social Security benefit. 

Note: Children may also qualify for other benefits if their parent is retired or disabled and entitled to Social Security benefits. You can reach out to the Social Security Administration directly to ask for more information about benefits for children. 

6. Is there a Social Security benefits maximum?

The Social Security Administration states:

“We base your survivors’ benefit amount on the earnings of the person who died. The more they paid into Social Security, the higher your benefits would be.” 

Your specific amount will also depend on your marriage status, disability status and age. For example, a 68-year-old surviving spouse would most likely receive 100% of their partner’s benefit amount. However, a 38-year-old surviving spouse with a young child would only receive 75% in most cases. 

You should be aware that there is a Social Security benefits max payout amount per family, which is “the maximum monthly amount that can be paid on a worker’s earnings record.” You can find more information about how to calculate your family’s specific maximum Social Security earnings by clicking here, or by connecting with a qualified professional such as a financial advisor. 

Note: You may also qualify for a one-time lump sum payment of $255 if you meet certain criteria. This lump sum payment is reserved for surviving spouses and children of qualifying individuals. Applications for the payment must be made over the phone or in person at your local Social Security office. 

Social Security may seem complicated, but with the right knowledge and access to experienced professionals, you can easily navigate survivors’ benefits to claim your funds.

[Disclosure]

PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.

PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.

Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.