Presentation is loading. Please wait.

Presentation is loading. Please wait.

Retirement Income and Estate Planning. Social Security A public pension plan established by the US government in 1935 – defined benefit plan Recipients.

Similar presentations


Presentation on theme: "Retirement Income and Estate Planning. Social Security A public pension plan established by the US government in 1935 – defined benefit plan Recipients."— Presentation transcript:

1 Retirement Income and Estate Planning

2 Social Security A public pension plan established by the US government in 1935 – defined benefit plan Recipients Retirees Survivors Disabled

3 Social Security Benefits received are based on earnings Factors When you retire How long you worked - number of quarters worked vs. year of birth (40 quarters for full benefits) Earned income

4 Social Security Start of benefits – age 62 – 67 Yearly amount of benefit increases as delay start Social Security Taxes (6.2% of income) Called FICA taxes (Federal Insurance Contributions Act) Taken out of paycheck along with other income taxes Medicare taxes (1.45%) also taken out Maximum Taxable Yearly Earnings (MTYE) Currently $106,800 No cap for Medicare

5 Estate Planning Estate All property and assets owned by an individual Estate Planning Creating a detailed plan for managing your estate according to your wishes after your death An essential part of financial and retirement planning

6 Estate Planning Will Legal declaration of a person’s wishes regarding the distribution of his or her estate after death Many different types If you die without one, you are intestate Key issues Executor Guardian Joint ownership

7 Estate Planning Trust A legal arrangement in which a designated person (trustee) manages the assets of the estate for the benefit of someone else Probate Legal procedure of proving that a will is valid Probate court validates the will and oversees the distribution of your assets


Download ppt "Retirement Income and Estate Planning. Social Security A public pension plan established by the US government in 1935 – defined benefit plan Recipients."

Similar presentations


Ads by Google