Pimco is a mutual and ETF firm with a huge bond fund that has been the player in that space for the past 40 years. Bill Gross founded the firm in 1971, and it is now around $2 trillion dollars under management.
Last week Bill Gross decided to leave the fund and move to Janus. This is important because of the disruption to the bond market as huge sums could (and I say could) move from one firm to another.
The bond market doesn’t get as much coverage as the stock markets, but this is a pretty big change, equal to the Denver Offensive team picking up and going to Oakland. Heaven forbid.
The earliest you can start receiving your social security is at age 62, full retirement age is 66 (for people born between 1943 and 1954), and the latest you can delay it is until age 70.
At full retirement age 66 you’re entitled to 100% of your amount, but if you take it early at age 62 you receive 75% of that amount. If you wait until age 70 then you get 132% of the full retirement amount.
So, when should you take it?
Let me just say there is no exact right time to take it that is applicable for everyone. For one client’s circumstances it might make sense to take it early, but in another it makes sense to wait.
If you live a long life and you draw upon other sources of income until age 70, then it becomes very attractive to wait. But, we don’t know if you’ll live a long life until after the fact, so there is some supposition around this.
Less than 2% of people wait until age 70, but mathematically that’s the best option (76% more than what you’ll receive if you take it at age 62), and that’s 76% more each year just for waiting 8 more years.
Do not do anything without talking with a financial professional to review your specific case. I run calculations and advise on this all the time, so I’m quite familiar in the various options for clients.
Please contact me if you feel I can help you with your social security planning.
60% of the time a family’s money is exhausted by the children of the person who created the wealth, and in 90% of the cases it’s gone by the time the grandchildren die.
The biggest reason they’re squandered is because the people who bilt the wealth do not pass along clear instructions on how to handle the money after they’re gone. Preserving a fortune requires communication and collaboration that’s hard to achieve.
Have you thought about how you’ll maintain your hard earned money in the family after your passing?
When you hear 9 – 10% in the stock market, you must remember that those returns contain every single type of market environment.
Warren Buffet is one of the most successful investors ever, and he still has declines at some point. But, he has the right behaviors ingrained in him to “be greedy when others are fearful, and fearful when others are greedy”.
No one likes declines, but they are part of a full market cycle. When constructing a portfolio for a client, I always try to understand the risk tolerance for them, understanding that unless you’re 100% invested in the stock market, you won’t get 100% of the ups (desired) and downs (undesirable) of that market
