As the cost of education in the United States continues to rise, it’s becoming more and more important for parents to plan ahead. Fortunately, a 529 savings plan offers a solution to help alleviate the financial burden of education. The 529 savings plan is designed to help families save for education expenses by providing tax benefits and flexible investment options.
What is a 529 plan?
A 529 plan, named after section 529 of the federal tax code, is a way to save for college in a tax-advantaged way. Plans are offered by states, and you can choose to participate in any state’s plan. It’s important to compare benefits to pick which plan best suits your needs.
There are two types of 529 plans—savings plans and prepaid tuition plans.
With a 529 college savings plan, your investments grow in an individual investment account (tax-free).
With a 529 prepaid plan, you lock in a tuition payment at the current rates. The amount then goes into a general fund (rather than an individual investment account).
Between these two plan types, 592 savings plans are more common, as they have notable benefits.
Tax-free Growth and Withdrawals
A 529 savings plan works similarly to a Roth 401(k) or Roth IRA. You select the investment option you want, deposit money, and your funds build over time in the account. Your investment grows on a tax-free basis. Money can also be withdrawn tax-free if used to pay for qualified higher education expenses.
Anyone Can Contribute
According to Education Data Initiative, Americans on average aim to save $55,342 for their child’s college expenses. With a 529 savings plan, a parent isn’t the only one who can contribute. Any friend or family member can make gift contributions to a beneficiary’s account. For birthdays and holidays, loved ones can make a lasting impact on the beneficiary’s future, cutting down on future student loans. The funds can be used to cover the beneficiary’s education costs, which are more than just tuition; these also cover textbooks, room and board, and other academic expenses.
529 Savings Plans Can Be Used for More Than College Costs
Besides college expenses, the funds can also cover expenses for K-12 education. You can apply $10,000 per year toward private elementary or secondary school tuition expenses.
Flexibility to Change the Beneficiary
If your child chooses not to attend college or receives a scholarship, all is not lost. You can change the beneficiary to any other qualifying family member. This option helps families avoid paying taxes and fees on unused funds.
A Little Goes a Long Way
Small amounts truly add up over time and make a significant difference. Outstanding U.S. student loan debt reached $1.7 trillion at the end of 2020, according to the Federal Reserve. A 529 savings plan allows you to make a considerable dent in college costs, even if you start while the child is in high school. It is never too late—every penny counts.
The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax-free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
Spring cleaning isn’t just for your home; it’s also an excellent time to give your finances a refresh. Whether you’re looking to get a better handle on your budget, pay off debt, or build your savings, taking some time to review your financial situation and make some changes can have a big impact.
Review Your Budget
Perhaps you started the year off strong by staying true to your budget, but you’ve fallen behind in recent months. Does your budget need a refresh? Look at the areas in which you are overspending, and make a plan to correct them in the future. Having too strict of a budget can set you up for failure and stress, so it’s important to make an accurate assessment of your spending habits rather than attempting to meet an unattainable goal. If your previously determined budget is no longer feasible, now is the time to make adjustments.
Pay Off Debts
If you have been avoiding debt, spring is the perfect time to sit down and get a full sense of what you owe. Ignoring your debt will only make it grow larger! Take inventory of your debt and decide what needs the most immediate attention. Prioritize payments according to billing due dates and interest rates. Create a timeline for yourself for exactly when you would like the debt to be paid by, and how much you need to contribute over time to reach that goal.
Organize Documents
If your important documents are not in order you may find yourself frantic when you need to access them in the future. Prevent these issues by arranging your physical papers in a safe and secure spot, and digitizing wherever possible – this way, they are searchable! Prepare yourself by keeping your birth, marriage, and death certificates, social security cards, passports, and documentation of major loans and insurance policies in a firebox. Securely dispose of documents that are no longer necessary, such as paid utility bills or pay stubs from previous years.
Check Your Savings
Whether your main priority is your retirement fund, your kid’s college fund, or planning a major life event, take the time to check in on all of your different savings accounts. If you notice some are not on track with your goals, plan how you will bolster these funds over the course of the year. One of the most important, but easily forgotten, aspects of a sound financial plan is an emergency fund. This money should be easily accessible, and significant enough to protect you from unexpected crises. Medical emergencies, car problems, and home repairs can severely affect your budget. Having cash set aside for such events will prepare you for the worst possible scenario and decrease your stress level, as you will be confident in your ability to handle anything life throws your way.
Look at the Big Picture
Once you have taken inventory of your progress so far this year, think broadly about how you are progressing in your long term financial plan. Some years are better than others, so it is okay if you are not exactly where you hoped to be by this point. The most important thing is to maintain a sound plan that will guide you on your path to financial freedom. Checking in with your overall progress in relation to your goals is a great way to round up a financial spring cleaning, and ensure that you are on the right track!
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
Financial wellness month is the perfect time to take a look at your savings plans and learn new ways to be financially independent. Even if you are satisfied with your current level of financial knowledge, there is always more to learn! Take some time this month to look into a certain aspect of financial wellness you are curious about or think you could improve upon. Here are some of our top tips to help you on your path to financial freedom!
Improve Your Knowledge
If you have been curious about certain aspects of financial wellness, there are hundreds of great books out there that can answer all your questions. Freakonomics takes a sociological approach to financial thinking and examines the ways in which you can apply economic rationale to your everyday life. Though this book does not provide specific tips for saving and spending, it may change the way you think about wealth and the economy overall. Think and Grow Rich is perhaps the single most popular piece of motivational literature there is. This book examines the most successful people of all time in an attempt to answer the question “what makes a winner?”. Though the title “Think and Grow Rich” may imply that it is all about money, the book instead focuses on the self-confidence required to be successful, and how it can be learned and taught.
In addition to reading books, there are also a myriad of online resources that can assist you in your research. The Blakely Financial blogs and newsletters contain tips on personal finance and investments to help you increase your financial savvy. Simply reading an article or two a day can increase your financial knowledge throughout the course of the month!
Small Changes Add Up
Small changes can make a big impact on your finances! If attaining your goals feels like an impossible task, start small. Over time, your smart habits will become routine, and your ambitions will no longer feel out of reach. This can be done by limiting your takeout meals, canceling unused subscriptions, or even just buying generic brand items at the grocery store. These types of changes may feel overly frugal, but they can quickly add up to significant savings you can use on more important purchases and adventures later.
Emergency Fund
One of the most important, but easily forgotten, aspects of a sound financial plan is an emergency fund. This money should be easily accessible, and significant enough to protect you from unexpected crises. Medical emergencies, car problems, and home repairs can severely affect your budget. Having cash set aside for such events will not only prepare you for the worst but decrease your stress level as you will be confident in your ability to handle anything life throws your way.
Work with a Financial Advisor
Perhaps the best thing you can do for yourself this financial wellness month is to seek the advice of a professional. A trained financial advisor can build you a custom plan to guide you to your long-term financial goals. Please feel free to contact our team at Blakely Financial today to help get you started.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals. Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
Happy New Year! So much has happened in 2022. Watch now for highlights and some items we’re focused on as we transition into 2023.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.
As the saying goes, there is no better time than the present. When it comes to setting up a system for managing your personal finances, the beginning of a new year is the perfect time to begin. The easiest way to be successful with a cash management program is to develop a systematic and disciplined approach. Spending a few minutes each week to maintain your cash management program can help you to keep track of how you spend your money and pursue your financial goals.
Any good cash management system revolves around the four As – Accounting, Analysis, Allocation, and Adjustment.
Accounting
Accounting involves gathering all your relevant financial information together and keeping it close at hand for future reference. Gathering all your financial information — such as income and expenses — and listing it systematically will give you a clear picture of your overall financial situation.
It’s important to note all of your expenses, subscriptions, memberships, and more. The small items add up quickly.
Analysis
Next, you need to sit down and review your financial situation once you have accounted for all your income and expenses. You will almost invariably find yourself with either a shortfall or a surplus. Ideally, you should be spending less than you earn, if this isn’t the case, you will need to take a very close look at your spending habits.
Allocation
Now you must determine your financial commitments and priorities and distribute your income accordingly. One of the most important factors in allocation is to distinguish between your real needs and your wants. If you need to reduce your expenses, you may want to start out by cutting back on your discretionary spending. This can help to free up cash that can either be invested for the long term or used to pay off fixed debt.
Adjustment
Even with a set budget, it’s important to be flexible and account for needed changes. You may want to review your budget monthly, quarterly or biannually to be sure it fits your lifestyle and needs, wants, and wishes Above all, be flexible. Any budget that is too rigid is likely to fail.
Using the four As is an excellent way to help you monitor your financial situation to ensure that you are on the right track to meet your financial goals.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
As 2022 comes to a close, real risks persist. China is still struggling with the economic impact of Covid-19. Crypto companies here in the U.S. have imploded. The Ukraine war is ongoing, disrupting global food and energy markets. Last, but certainly not least, inflation remains at a 40-year high, which has left both stocks and bonds in a bear market. Given all this disruption, there are many questions and worries about what’s in store for the economy and markets in 2023.
As citizens, as workers, and as family members, we question whether we’re headed for a recession. If so, what would that mean for us and our loved ones? As investors watching the markets after a difficult 2022, we want to know whether we will see a rebound—or more declines. And with everything that is happening, we’re concerned that things might get even worse, a repeat of sorts of The Great Financial Crisis. In other words, worry levels are high, coloring everyone’s outlook on the year ahead.
Still, there’s reason to believe that things are not nearly as bad as many headlines suggest. Yes, we do face risks. But the economic and market fundamentals are much stronger now than they were at the start of 2022. That strength should limit the risks and provide more opportunities in 2023.
The Economy: Recession Worries Abound
Many of the recession headlines we’re seeing revolve around inflation and the Fed, which continues to raise interest rates as we end 2022. Given those two factors, we can expect substantial economic slowing. Indeed, this slowdown is already apparent, especially in housing (see Figure 1).
The economic effects of interest rate hikes can take a year or more to show up in the economy. If those effects are severe enough, a recession is very possible sometime next year. Here, it’s important to keep in mind that not all recessions are severe. If we do get a recession in 2023, it is likely to be both mild and short-lived. The reason? Consumers and the job market.
The consumer and jobs. When discussing the outlook of the economy, the consumer plays a central role. After all, consumer spending accounts for more than two-thirds of the economy. But consumers can’t spend if they don’t have an income and confidence, so the job market is an equally important factor. Given that, generally speaking, a severe recession isn’t possible without a pullback in both jobs and confidence. The good news is that both remain strong.
Job growth over the past 12 months was more than twice the level typical of past expansions. Plus, there are more than 10 million open jobs. While the labor market does seem to be slowing, it has quite a way to go before it hits recessionary levels (see Figure 2). With that cushion, we are not likely to see a recession until the second half of next year, if then.
Confidence has also pulled back, but it remains high based on historical levels. People are making money and spending money—this will provide economic support, even in the face of higher rates.
Business confidence and investment. Driven by both consumer spending and the strong labor market, business confidence and investment also remain healthy. While we see slowing (and, as mentioned, may see a recession), the economic fundamentals remain surprisingly strong.
Inflation and interest rates. If the economy continues to grow, those strong fundamentals could well keep inflation high and keep the Fed hiking, leading to a worse recession. This outcome is a possibility—but it’s not what the data is telling us.
Inflation appears to have peaked, with most of its components turning down, and that trend is likely to continue. The Fed will likely keep hiking interest rates. But both the pace of those hikes and their ultimate peak will begin to subside as inflation starts to ease.
As 2022 ends, we see that scenario not only in the inflation data but also in the bond market, with the yield on the U.S. Treasury 10-year note peaking and then rolling over. That peak in rates likely reflects an impending slowdown but also indicates that the interest rate damage may be topping out as well. All of that provides a good foundation for markets.
The Markets: Risks and Opportunities
Much of the damage to financial markets in 2022 came from higher interest rates. If rates peak, the damage will subside. And if rates start to decline? Markets could see a rebound.
Bonds. The declines in bond values in 2022 were linked directly to higher rates. As rates moderate, those declines are unlikely to repeat. Beyond that—and for the first time in years—bondholders are now being paid competitive rates of interest. So, while the bond market took a big hit in 2022, the year ahead is likely to be substantially better.
Stocks. The picture for stocks is more complex—but still relatively positive. Stocks also got hit by rising interest rates, as valuations (which depend on rates) dropped. That said, we entered 2022 with valuations at very high levels. We’ll be entering 2023 with valuations at a much more reasonable place: not cheap, but in line with historical averages. From a valuation standpoint, the risk to stocks will be much lower next year.
With valuations reasonable, the results for stocks will depend largely on how corporate earnings play out. Again, the headlines are discouraging, as analysts have downgraded expectations. Beyond the lower sales a recession would generate, there are concerns about corporate margins, with higher wages and debt service costs likely to hit the bottom line. Even if valuations hold, lower earnings are a headwind for stocks.
Here, there is some good news, as wage growth and interest rates appear to be peaking. As such, the damage may be less than expected. Typically, analyst expectations are too pessimistic, so this outcome would be in line with historical results. And as noted above, any recession will likely be mild. There is certainly some downside risk, but relative to expectations, there is more upside opportunity.
Will 2023 Be Better Than It Looks?
As you can see, there is much to worry about when assessing the 2023 outlook for the economy and the markets. Fortunately, those worries are largely incorporated into expectations and prices. So, if things are better than expected (which seems probable on multiple fronts), then the results should be positive as well.
After a difficult 2022, when both the economy and markets adjusted to high inflation and interest rates, supply shortages, and other shocks, the natural expectation is that things will remain bad. What we are seeing in the data, however, is that despite those shocks and the real risks, the economy is doing better than expected, and inflation is in the process of being contained. We are making progress, and that progress should continue into 2023.
Will 2023 be a great year for the economy and markets? Not likely. Will it be better than 2022? Very likely—and quite possibly substantially better. As a motto, “better than it looks” isn’t what any of us would aspire to. But as we enter the new year, it could be a lot worse.
Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Investments are subject to risk, including the loss of principal. Past performance is no guarantee of future results. This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product.
Authored byBrad McMillan, CFA®, CAIA, MAI, managing principal, chief investment officer, at Commonwealth Financial Network®.
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
As we enter 2023, there is constant talk about New Year’s resolutions and how to make this year better than the last. If you’re looking to start this year on the right foot, your finances are a great place to start. Below are tips to get started and a few ideas to keep you on track.
1. Examine your financial goals
Before you establish a budget, you should examine your financial goals. Start by making a list of your short-term goals (e.g., new car, vacation) and your long-term goals (e.g., your child’s college education, retirement). Next, ask yourself: How important is it for me to achieve this goal? How much will I need to save? Armed with a clear picture of your goals, you can work toward establishing a budget that can help you reach them. At Blakely Financial, we often refer to your needs, wants, and wishes. This method can work for retirement as well as monthly budgeting.
2. Identify your current monthly income and expenses
To develop a budget that is appropriate for your lifestyle, you’ll need to identify your current monthly income and expenses. You can jot the information down with a pen and paper, or you can use one of the many software programs available that are designed specifically for this purpose.
Start by adding up all of your income. In addition to your regular salary and wages, be sure to include other types of income, such as dividends, interest, and child support. Next, add up all of your expenses. To see where you have a choice in your spending, it helps to divide them into two categories: fixed expenses (e.g., housing, food, clothing, transportation) and discretionary expenses (e.g., entertainment, vacations, hobbies). You’ll also want to make sure that you have identified any out-of-pattern expenses, such as holiday gifts, car maintenance, home repair, and so on. To make sure that you’re not forgetting anything, it may help to look through canceled checks, credit card bills, and other receipts from the past year. Finally, as you list your expenses, it is important to remember your financial goals. Whenever possible, treat your goals as expenses and contribute toward them regularly.
3. Evaluate your budget
Once you’ve added up all of your income and expenses, compare the two totals. To get ahead, you should be spending less than you earn. If this is the case, you’re on the right track, and you need to look at how well you use your extra income. If you find yourself spending more than you earn, you’ll need to make some adjustments. Look at your expenses closely and cut down on your discretionary spending. And remember, if you do find yourself coming up short, don’t worry! All it will take is some determination and a little self-discipline, and you’ll eventually get it right.
4. Monitor your budget
You’ll need to monitor your budget periodically and make changes when necessary. But keep in mind that you don’t have to keep track of every penny that you spend. In fact, the less record-keeping you have to do, the easier it will be to stick to your budget. Above all, be flexible. Any budget that is too rigid is likely to fail. So be prepared for the unexpected (e.g., a leaky roof, failed car transmission).
Tips to help you stay on track
Involve the entire family: Agree on a budget up front and meet regularly to check your progress
Stay disciplined: Try to make budgeting a part of your daily routine
Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays)
Find a budgeting system that fits your needs (e.g., budgeting software)
Establish your needs, wants, and wishes.
Build rewards into your budget (e.g., eat out every other week)
Avoid using credit cards to pay for everyday expenses: It may seem like you’re spending less, but your credit card debt will continue to increase
Commonwealth Financial Network® or Blakely Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
As 2022 comes to a close, it is helpful to look back on the changes we have made to keep up with the market to help you continue on the path toward your financial goals. We hope this information gives you more insight into our investing philosophies and strategies, so you can be confident in your choice to work with Blakely Financial.
What has the Investment Committee been doing to keep up with the volatile market?
Here at Blakely Financial, we base our decisions on the long-term future of your investments combined with your overall goals. Though it can be difficult to navigate a bear market, rational thinking and patience are the best ways to ensure the success of your investments over time. There were a number of changes this year but none of them would be considered radical adjustments or departures from our long-term investment objectives; the overall allocations of stocks to bonds remains largely the same and we don’t recommend any changes in that area. It’s very possible that the drawdown in the first half – and the ongoing choppiness today – is the market pricing in this economic weakness. By the time a recession arrives, if it ever does, the market may have already moved on.
How does the Investment Committee stay up-to-date on market trends?
We constantly monitor the economy, the markets, and your portfolios to assess how our chosen investments are performing, and decide if changes are necessary or prudent. These efforts constitute a significant part of our everyday work. We keep a close eye on even the slightest changes in trends so that you don’t have to! Though we do not use market timing as a strategy, we use all of the information we gather on a daily basis to inform any portfolio adjustments.
What are some examples of portfolio adjustments?
We recently executed a number of trades in early August, here is a high-level summary of those changes:
Decreased international developed exposure
Increased U.S. exposure in Large-Cap Growth and Value
Increased U.S. exposure in Mid-Cap Value
Marginally increased duration positioning
Adjusted credit exposure
Systematic Multi-Strategy fund replaced some fixed income.
Proportionately reduced all fixed-income funds; using alternative and multi-strategy funds as complement/substitute for fixed income.
Though nobody can predict for certain what 2023 has in store for us, here at Blakely Financial we are confident in the future of your investments, and the decisions we have made in the past year.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.
If you receive Social Security benefits, you can expect them to be boosted by 8.7% in 2023. This cost-of-living adjustment (COLA) was announced by the Social Security Administration on October 13th, and it is a massive increase from that of previous years.
What does this mean for you, and what does it imply for the future?
In 2022, the Social Security cost-of-living adjustment was 5.9%, which was the highest in forty years. The last time the COLA was this high was in 1981, at 11.2%. This adjustment rate is set automatically, based on the inflation rate each year between July and September as it compares to the previous year, and has been set this way since the 1970’s. The amount is based on the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Use the extra benefit wisely
Despite these annual adjustments for inflation, a 2021 study found that the buying power of Social Security benefits declined by 30% from 2000 to early 2021, in part because the CPI-W is weighted more heavily toward items purchased by younger workers than by Social Security beneficiaries. Due to this method of setting the COLA, you should not anticipate that the increase you are seeing in 2023 will be continued in the upcoming years; be sure to handle the extra money wisely to prepare for future years in which your benefits may not be as high.
While the COLA will actually take effect with the December 2022 benefits, payments will be made in January 2023. To gauge how much more money you may see next year, take your net Social Security benefit, add in your Medicare premium, and multiply that by the 2023 COLA.
If you have not yet begun to claim Social Security benefits, you may consider delaying until they are needed. Your benefits will still reflect the cost-of-living adjustments whether you claim them now or in a later year. Each year that you delay, benefits will increase 8% from your retirement age until age 70. Obviously, this strategy will not be ideal for every person, especially if you have health concerns, but you can change your mind at any point and begin receiving payments- you don’t have to delay until age 70 even if that was your initial plan. Conversely, if you are not ready to retire or decide to go back to work after retiring, you can still receive your social security benefits.
If you are in need of a financial planner to help you get the most out of your benefits to enjoy a long and comfortable retirement, contact Blakely Financial today.
Engage with the entire Blakely Financial team at WWW.BLAKELYFINANCIAL.COM to see what other financial tips we can provide towards your financial well-being.
Blakely Financial, Inc. is an independent financial planning and investment management firm that provides clarity, insight, and guidance to help our clients attain their financial goals.
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.
