Today we’re answering questions about Social Security, emergency funds and more. Find out what advice we give people in these types of situations.
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On today’s episode, we’re sharing some financial questions we’ve received and how we answered them. You might find yourself in a similar situation or want to get some advice on these important topics.
I’m still working, and plan to work for at least another two years, but I’m now old enough to start taking my Social Security without being limited on how much income I can earn. Is this a recommended strategy?
When Harold says he’s “old enough,” that means he has reached full retirement age. That’s when you can still be working and collect Social Security benefits without having your benefit reduced.
So, what is full retirement age? Well, it differs by person and is based on the year you were born.
Some people are still working and want to collect Social Security but haven’t reached full retirement age yet. If you make above a certain threshold of money, Social Security will deduct $1 for every $2 you make over the threshold.
You need to coordinate this with your income plan. What are your lifestyle expenses? Let’s say you need $7,000 a month to live. We can look at other money you have and determine your income gap.
If you don’t have money to fill that gap, you may want to wait a little longer before you claim Social Security.
I’ve heard you talk about having an emergency fund, but I’m having trouble determining how much I should have in mine and where I should invest it. I’m also not exactly sure how to define an emergency so that I know when I can dip into it. What ‘s your advice?
This is a great question. Have you ever heard about Murphy’s Law where things go wrong? You need to have an emergency fund as a solid foundation for your financial house.
Listen to the full podcast or use the timestamps below to jump to a specific section.
[1:23] – States with lowest and highest savings
[3:10] – Social Security
[10:07] – Emergency fund
[15:43] – Husband’s 40k vs. pension
Thanks for checking out this episode. We’ll talk to you again soon.
States with the Lowest and Highest Average Retirement Savings
“Are you on track for retirement, or do you need to save a little bit more towards that?”