Key Takeaway: Equities, also known as stocks, represent ownership in a company. They are a type of investment that allows individuals to buy and sell shares in publicly traded companies. There are two types of equities: common and preferred. Common stocks represent ownership and voting rights in a company, while preferred stocks provide fixed dividends…
Key Takeaway: Power of attorney is a legal document that allows someone to make decisions on your behalf. It is important when dealing with Social Security to ensure that the person you appoint has the necessary authority to act on your behalf. There are different types of power of attorney, including general and specific. A…
Key Takeaway: To qualify for State Pension, you must meet age and National Insurance contribution requirements. The age requirement is currently 66, but is set to increase in the future. National Insurance contributions are required for at least 10 years to be eligible for State Pension. The amount of State Pension you receive is based…
Key Takeaway: The eligibility criteria, types of benefits available, age of retirement, health status, and employment status are important factors to consider when deciding when to start collecting Social Security benefits. A break-even analysis can help determine whether it makes more sense to collect benefits early or late. The break-even point is the age at…
Key Takeaways: Survivor benefits for social security are payments made to eligible family members of a deceased worker who was receiving or eligible for social security benefits. Eligibility requirements for survivor benefits include being a spouse, ex-spouse, child, or dependent parent of the deceased worker, and meeting certain age and relationship criteria. Types of survivor…
Key Takeaway: Social Security benefits are calculated based on the average indexed monthly earnings (AIME) and the primary insurance amount (PIA), which takes into account the worker’s earning history and age at retirement. Factors that affect Social Security benefits include a worker’s earning history, age at retirement, and whether they have reached full retirement age…
Key Takeaway: An investment calculator is a tool that helps individuals estimate the potential return on their investment by taking into account important factors such as investment type, timeframe, and risk tolerance. An investment calculator works by gathering input information, performing complex calculations, and generating output results that provide insights into the potential return on…
Image credits: retiregenz.com by David Washington Factors Affecting Spousal Entitlement Spousal Entitlement Factors The entitlement of a spouse to a teacher’s pension depends on several factors. Factors that affect the spousal entitlement include the length of the marriage, the amount in the teacher’s pension, and the specific pension plan. Other contributing factors include the age…
Key Takeaway: Individuals are eligible for Social Security benefits based on the amount of work credits earned during their employment history. Full retirement age ranges from 66-67 depending on the birth year of the recipient. Early retirement can be elected at age 62, but benefits will be reduced. Delayed retirement allows for increased benefit amounts…
Key Takeaway: Social Security is a government program that provides financial assistance to retired or disabled individuals, as well as their dependents and survivors. Full Retirement Age (FRA) is the age at which retirees can receive their full Social Security benefits. Early Retirement Age (ERA) is an option that allows individuals to start receiving benefits…
Key Takeaway: Defining ROI: Return on Investment is a financial metric used to measure the profitability of an investment, comparing the net return to the cost of the investment. What constitutes a Good ROI? There are different factors to consider when defining what a good ROI is, such as setting benchmarks based on ROI percentages,…
Key takeaway: Liquidity refers to the ability of an investment to be quickly and easily converted into cash without significant loss of value. The more illiquid an investment is, the more difficult it is to buy or sell it quickly and at a fair price. Factors affecting the liquidity of investments include the type of…