We're just at the end of "National My Social Security Week," a perfect time to field your Social Security questions. Considering that a total of 59 million Americans will receive some form of Social Security benefits in 2014, with payouts estimated at $863 billion, it’s amazing how confusing the system can be!
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Every American who has accumulated 40 Social Security credits, which usually amounts to 10 years of work; and earns a certain amount of money, will qualify for Social Security retirement benefits. You can choose to receive benefits as early as age 62, though doing so will amount to a permanent reduction in monthly income. As a result, more people wait until their Full Retirement Age (FRA) before claiming. Workers who wait until age 70 will receive the highest benefit.
Here is more information about Social Security:
- Social Security: Broken, But Not Broke
- Social Security Q&A
- Social Security Administration Web site
- AARP
- T.Rowe Price
We also discussed "Beautiful" investment portfolios, which loosely defined means: easy, cheap and effective. For Jill in Florida, here are a few ideas:
BEAUTIFUL INDEX FUND PORTFOLIO
- 40% Bond Fund (Vanguard's Intermediate Term Bond Index fund (VFICX), Vanguard Short-Term Investment Grade fund (VFSTX), Vanguard Total Bond Market Index Fund (VBMFX),Schwab Total Bond Market (SWLBX),Fidelity U.S. Bond Index (FBIDX)
- 50% Total Stock Market Index Fund (Fidelity Spartan Total Market Index, Schwab 1000 Index Fund Investor or Vanguard Total Stock Market Index)
- 10% Int’l Stock Fund (Fidelity Spartan Int’l Index (FSIIX), Vanguard Total Int’l Stock Index (VGTSX)
BEAUTIFUL ETF PORTFOLIO
- 50% Vanguard Total Stock Market ETF (VTI)
- 20% Vanguard FTSE All-World Ex-U.S. ETF (VEU)
- 30% Vanguard Total Bond Market ETF (BND)
BEAUTIFUL ETF PORTFOLIO (>$500K)
- 10% Vanguard Total Stock Market ETF (VTI)
- 10% Vanguard Small-Cap ETF (VB)
- 15% Vanguard Dividend Appreciation ETF (VIG)
- 15% Vanguard FTSE All-World Ex-U.S. ETF (VEU)
- 5% Vanguard Emerging Mkts ETF (VWO)
- 30% Vanguard Total Bond Market ETF (BND)
- 5% SPDR DB International Government Inflation Protected Bond ETF (WIP)
- 5% Wisdom Tree Dreyfus Commodity Currency (CCX)
- 5% Gold (IAU OR GLD)
All of the sudden, Mark and I have become the arbiters of how much to spend on an engagement ring, which is funny, since neither of us has ever purchased one!
Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:
- Call 855-411-JILL and we'll schedule time to get you on the show LIVE
- Send an email: askjill@jillonmoney.com
- Tweet us: @jillonmoney and @MTalercio