Latest news with #BenRizzuto
Yahoo
06-04-2025
- Business
- Yahoo
Clients aren't likely to face estate taxes. But they still need a plan
The political calculus involved with the details of estate planning next year and beyond may be distracting financial advisors and clients from a larger, simpler conversation, one expert says. On the off chance that the federal estate-tax exemption levels of $13.99 million for individuals (and double for couples) revert to half those amounts when Tax Cuts and Jobs Act provisions expire in 2026, only 0.2% of households would face potential duties upon transfer of assets, according to Ben Rizzuto, a wealth strategist with Janus Henderson Investors' Specialist Consulting Group. He predicted that most financial advisors and high net worth clients, such as those he works with and others across the industry, will see no changes. With few other revenue-raising provisions available to President Donald Trump and Republican lawmakers, they're not likely to shield all estates from payments to Uncle Sam — as much as they might like to play undertaker to the "Death of the Death Tax," Rizzuto said, using the label for estate taxes adopted by critics favoring bills like the "Death Tax Repeal Act." Lawmakers' decisions on future exemptions from the taxes (and when they make those decisions) remain out of advisors' control. Meanwhile, they must remind clients that estate planning is much more than having a will and avoiding taxes, Rizzuto said. "For financial advisors and clients, I would expect for many of them not to have to worry about federal estate taxes next year," he said in an interview. "Even though they may not have to worry about it, there are still a lot of good conversations to be had." READ MORE: Tax Cuts and Jobs Act expiration: A guide for financial advisors Trust tools that reduce the value of the assets that will transfer to spouses or other beneficiaries upon a client's death, combined with the available statistics about the shrinking share of estates subject to taxes, could bring some peace of mind to clients. The 2017 tax law itself pushed down estate tax liability as a percentage of gross domestic product to a quarter of its 2001 level, according to an analysis by the "Budget Model" of the University of Pennsylvania's Wharton School. Just two years after the law's passage, the number of taxable estates had plummeted to 1,275 — or 1% of the number at the beginning of the century. At the same time, advisors could raise any number of questions with clients about their estates that involve varying degrees of expertise and collaboration with outside professionals. And many surveys have found that clients are expecting them to do so. For example, at least 70% out of a group of 10,000 adults contacted in January by WeAreTalker (formerly OnePoll) on behalf of online legal information service Trust & Will said advisors should offer estate planning. In addition, 40% of the group said they would switch to an advisor who provided that service. "We're seeing a fundamental shift in client expectations," Trust & Will CEO Cody Barbo said in a statement. "The findings are clear. Advisors who fail to integrate estate planning into their practice aren't just missing an opportunity; they are facing a threat to their client base as wealth transfers to younger generations over the next two decades." READ MORE: Ethical wills can be a crucial tool for estate planningIn that context, advisors and their clients should steer clear of trying to make sense of a complicated, ever-changing flow of news from Capitol Hill as Trump and the GOP pursue major tax legislation with a year-end deadline, Rizzuto said. If clients truly could be on the hook for estate taxes, a grantor retained annuity trust, a spousal lifetime access trust or gifting strategies may eliminate the possibility. One method involved with the latter could set them up in the future to receive stock that is "highly appreciated with lower basis," Rizzuto noted, citing the example of equities that have gained a lot of value that a client could give to their parents. "Why not gift them upstream?" Rizzuto said. "My father holds it. I tell him, 'Dad, you have to do these things: Live for another 12 months, make sure you don't sell, make sure that you update your will or your instructions to gift it back to me when you die.' That's another idea that we've been talking about with advisors." From another perspective, these possible paths forward may beckon to clients this year, if they are tuning into Beltway news about the progress of the tax legislation, he said. To bypass the risk of client perceptions that their advisor isn't doing any tax planning at all, Washington's complex maneuvering around the future rules is, "if nothing else," a "great opportunity for advisors to bring this up at a very high level," Rizzuto said. "Advisors will really need to go back to basics and have some foundational conversations with clients," he said, suggesting their goals with taxes as one key point of discussion. "'What is it that we actually control within your financial and tax plan?' When it comes right down to it, it's really just incomes and deductions."
USA Today
31-03-2025
- Business
- USA Today
At what age can you collect Social Security and full retirement benefits?
A record number of Americans are turning 65 each year through 2027. However, that's not quite old enough to receive full Social Security benefits. In 1983, Congress passed a law gradually raising the full retirement age from 65 to 67 to account for longer life expectancies and to help sustain Social Security funds. As of this year, 67 is officially the milestone age for full benefits, applying to those born in 1960 or later. When can you start collecting Social Security? Everyone can start receiving reduced Social Security benefits as early as age 62. However, waiting until full retirement age results in a larger monthly payment. Since the full retirement age has been increasing gradually, knowing your specific eligibility age is crucial to maximizing your benefits for yourself and your survivors. Waiting until full retirement age ensures you receive 100% of your benefits. Additionally, "it also means your spouse may receive higher spousal and/or survivor benefits," said Ben Rizzuto, wealth strategist at Janus Henderson Investors. The FRA adjustment is one of five changes to Social Security that took effect in 2025, including a cost-of-living adjustment, increased Social Security work credit requirements, a higher ceiling on payroll taxes, and higher earnings test limits. Need a break? Play the USA TODAY Daily Crossword Puzzle. How to calculate full retirement age Your FRA, also known as normal retirement age, depends on your birth year: 1943-1954 : 66 years. : 66 years. 1955 : 66 years and two months. : 66 years and two months. 1956 : 66 years and four months. : 66 years and four months. 1957 : 66 years and six months. : 66 years and six months. 1958 : 66 years and eight months. : 66 years and eight months. 1959 : 66 years and 10 months. : 66 years and 10 months. 1960 or later: 67 years. You can also use the Social Security Administration's tool to calculate your full retirement age by entering your birthdate. Note: If you were born on Jan. 1 of any year, your full retirement age aligns with the previous year. Can you collect Social Security before full retirement age? Yes, you can claim Social Security benefits as early as age 62, but your benefit will be permanently reduced. The reduction is calculated based on how many months before FRA you begin collecting benefits. For example, if you turn 62 in 2025, your benefit would be about 30% lower than if you waited until 67. Some financial experts, including Dave Ramsey, suggest considering early Social Security collection and investing the money. While the monthly check would be smaller, investing it in the stock market — historically averaging a 10% annual return — could potentially offset the reduction. For those retiring early due to health issues, SSA recommends applying for Social Security disability benefits. These benefits equal a full, unreduced retirement benefit and automatically convert to regular Social Security at full retirement age What happens if you wait to collect Social Security? Delaying Social Security beyond your full retirement age can significantly boost your monthly check. For each full year you delay, up to age 70, your benefit increases by 8%. "This is where a lot of value can be gained by waiting to file for benefits," Rizzuto said. "However, someone needs to ensure they have assets and income to support themselves before they take Social Security." Additionally, continuing to work past your full retirement age can further increase benefits, as each extra year of earnings is factored into your Social Security record. Higher lifetime earnings generally result in higher monthly benefits. When do most people start collecting Social Security? Although benefits increase with age until 70, most Americans claim Social Security early. A 2024 Employee Benefit Research Institute survey found: The median retirement age is 62, despite many intending to wait until at least 65. The median age at which people actually start collecting Social Security is 64, though most plan to wait until 65. 35% of retirees leave the workforce earlier than expected due to health issues or disabilities. An additional 31% retire due to workplace changes, while 35% retire because they can afford to. What is the average Social Security benefit? Social Security benefits adjust monthly. As of January 2025, the average benefit was $1,976, according to SSA. For comparison, in 1975, the average benefit was just $207. Contributing: USA Today Network
Yahoo
15-03-2025
- Business
- Yahoo
Social Security changes in 2025: How old you need to be for full benefits in Minnesota
A record number of Americans are turning 65 each year through 2027. However, that's not old enough to receive full Social Security benefits. In 1983, Congress passed a law that gradually raised the full retirement age from 65 to 67 to account for longer life expectancies and help sustain Social Security funds. As of this year, 67 is officially the milestone age for full benefits, applying to those born in 1960 or later. About 1.2 Minnesota residents receive Social Security as of November 2024 according to government statistics. Minnesota exempts some or all federally taxable Social Security benefits from state benefit taxes. More: Retirees in Minnesota may lose some Social Security benefits at tax time: What to know Everyone can start receiving reduced Social Security benefits as early as age 62. However, waiting until full retirement age results in a larger monthly payment. Since the full retirement age has gradually increased, knowing your specific eligibility age is crucial to maximizing your benefits for yourself and your survivors. Waiting until full retirement age ensures you receive 100% of your benefits. Additionally, "it also means your spouse may receive higher spousal and/or survivor benefits," said Ben Rizzuto, wealth strategist at Janus Henderson Investors. The FRA adjustment is one of five changes to Social Security that took effect in 2025. The others are a cost-of-living adjustment, increased work credit requirements, a higher payroll tax ceiling, and higher earnings test limits. More: 4 restaurants under 1 roof The House Food and Tap opens in St. Joseph, bringing 4 restaurants together under one roof Your FRA, also known as normal retirement age, depends on your birth year: 1943-1954: 66 years. 1955: 66 years and two months. 1956: 66 years and four months. 1957: 66 years and six months. 1958: 66 years and eight months. 1959: 66 years and 10 months. 1960 or later: 67 years. You can also use the Social Security Administration's tool to calculate your full retirement age by entering your birthdate. Note: If you were born on Jan. 1 of any year, your full retirement age aligns with the previous year. Yes, you can claim Social Security benefits as early as age 62, but your benefit will be permanently reduced. The reduction is calculated based on how many months before FRA you begin collecting benefits. For example, if you turn 62 in 2025, your benefit would be about 30% lower than waiting until 67. Some financial experts, including Dave Ramsey, suggest considering early Social Security collection and investing the money. While the monthly check would be smaller, investing it in the stock market—historically averaging a 10% annual return—could offset the reduction. For those retiring early due to health issues, SSA recommends applying for Social Security disability benefits. These benefits equal a full, unreduced retirement benefit and automatically convert to regular Social Security at full retirement age. Delaying Social Security beyond your full retirement age can significantly boost your monthly check. For each full year you delay, up to age 70, your benefit increases by 8%. "This is where a lot of value can be gained by waiting to file for benefits," Rizzuto said. "However, someone needs to ensure they have assets and income to support themselves before they take Social Security." Additionally, continuing to work past your full retirement age can further increase benefits, as each extra year of earnings is factored into your Social Security record. Higher lifetime earnings generally result in higher monthly benefits. Although benefits increase until age 70, most Americans claim Social Security early. A 2024 Employee Benefit Research Institute survey found: The median retirement age is 62, despite many intending to wait until at least 65. The median age at which people start collecting Social Security is 64, though most plan to wait until 65. 35% of retirees leave the workforce earlier than expected due to health issues or disabilities. An additional 31% retire due to workplace changes, while 35% retire because they can afford to. Social Security benefits adjust monthly. As of January 2025, the average benefit was $1,976, according to SSA. For comparison, in 1975, the average benefit was just $207. Contributing: USA Today Network. This article originally appeared on Kitsap Sun: How old you need to be for full Social Security benefits
Yahoo
28-02-2025
- Business
- Yahoo
Age for full Social Security benefits goes up this year: What Oklahomans should know
Are you turning 65 this year? If you've been looking forward to receiving your full Social Security benefits, you've still got a couple of years to wait. That goes for the record number of other Americans who will be 65 years old in 2025. In 1983, Congress passed a law to gradually raise the full retirement age (FRA) to 67 from 65 because people are living longer and the move could help stretch out dwindling Social Security funds. This year, 67 officially becomes the milestone you need to reach to receive your full benefit if you were born in 1960 or later. You don't have to wait. Everyone can start receiving reduced Social Security benefits as early as age 62, but if you wait until FRA you'll get a bigger monthly check. Waiting at least to your FRA not only ensures someone receives 100% of their personal benefits, "but it also means your spouse may receive higher spousal and/or survivor benefits," said Ben Rizzuto, wealth strategist at Janus Henderson Investors. It's one of five changes to Social Security that took effect in 2025. The others were a cost-of-living adjustment, higher Social Security work credit requirements, a higher ceiling on Social Security payroll taxes, and higher earnings test limits. The year and month you reach full retirement age depends on the year you were born. In 2025, If you were born between 1943-1954, FRA is 66 years. If you were born in 1955, FRA is 66 years and two months. If you were born in 1956, FRA is 66 years and four months. If you were born in 1957, FRA is 66 years and six months. If you were born in 1958, your FRA is 66 years and eight months. If you were born in 1959, your FRA is 66 years and 10 months. If you were born in 1960 or later your FRA is 67 years. You can also use the Social Security Administration's (SSA) tool to calculate your FRA by entering your birthday. Note: Persons born on January 1 of any year should refer to the full retirement age for the previous year. Check your calendar: When do Social Security payments go out in March? See the full 2025 payment schedule You can receive Social Security retirement benefits as early as age 62, but your benefit will be reduced. How much depends on how far you are from your full retirement age. For example, if you turn 62 in 2025, your benefit would be about 30% lower than it would be if you wait for your FRA at 67 years. Some personal finance experts like Dave Ramsey say people should consider taking Social Security early, at 62 years, and investing that money. Even though the amount of each check is lower, investing it in the stock market, which averages an annual return of 10%, could make up for that loss and more. Some people may retire early because of health problems. In those cases, SSA suggests applying for Social Security disability benefits. The disability benefit amount is the same as a full, unreduced retirement benefit. At your FRA, the disability benefit becomes your Social Security benefit. If you can wait, you can get even more every month. For every full year beyond your FRA you wait to take Social Security, your benefit will increase 8% until age 70. "This is where a lot of value can be gained by waiting to file for benefits," Rizzuto said. "In order to do this, however, someone needs to make sure they have assets and income to use after they retire and before they take Social Security." Or if you continue to work beyond your FRA, each extra year you work adds another year of earnings to your Social Security record. Higher lifetime earnings can mean higher benefits when you retire, the SSA said. Phantom Social Security recipients? 'Vampires' in Social Security data? Here's what to know after Elon Musk claims SSA fraud Although Social Security benefits rise with age up until 70, most people still begin receiving their benefits early, according to a 2024 Employee Benefit Research Institute (EBRI) survey. The median retirement age is 62, despite people's best intentions to wait until at least 65, EBRI said. The median age at which people are collecting Social Security is 64, even though the median age workers intend to begin collecting is age 65, it said. Each year the survey is taken, EBRI said it consistently finds a large percentage of retirees leave the workforce earlier than planned. In the 2023 survey, 35% of respondents said they retired earlier than planned because of a hardship, such as a health problem or disability. Another 31% retired due to changes at their company, and about 35% said they did so because they could afford to. The estimated average amount changes monthly, but in January 2025, it was $1,976, SSA said. In 1975, the average benefit was $207. In December 2023, 838,254 Oklahomans received just over $1.4 million in total monthly benefits, according to Social Security Administration data. More than 590,000 of them were 65 or older. This article originally appeared on Oklahoman: Social Security age change coming soon: What Oklahomans should know
Yahoo
24-02-2025
- Business
- Yahoo
More Americans are turning 65 each year, but not yet old enough for full Social Security
A record number of Americans are turning 65 years old each year through 2027, but to receive full Social Security benefits, that's not quite old enough. In 1983, Congress passed a law to gradually raise the full retirement age (FRA) to 67 from 65 because people are living longer and the move could help stretch out dwindling Social Security funds. This year, 67 officially becomes the milestone you need to reach to receive your full benefit if you were born in 1960 or later. Everyone can start receiving reduced Social Security benefits as early as age 62, but waiting until full retirement age will fetch you a bigger monthly check. Since that age has been rising slowly for years, knowing exactly when you hit that benchmark can be key to figuring out how to maximize your Social Security benefit for yourself and your survivors. Waiting at least to your FRA not only ensures someone receives 100% of their personal benefits, "but it also means your spouse may receive higher spousal and/or survivor benefits," said Ben Rizzuto, wealth strategist at Janus Henderson Investors. The year and month you reach full retirement age depends on the year you were born. In 2025, If you were born between 1943-1954, FRA is 66 years. If you were born in 1955, FRA is 66 years and two months. If you were born in 1956, FRA is 66 years and four months. If you were born in 1957, FRA is 66 years and six months. If you were born in 1958, your FRA is 66 years and eight months. If you were born in 1959, your FRA is 66 years and 10 months. If you were born in 1960 or later your FRA is 67 years. You can also use the Social Security Administration's (SSA) tool to calculate your FRA by entering your birthday. Note: Persons born on January 1 of any year should refer to the full retirement age for the previous year. You can receive Social Security retirement benefits as early as age 62, but your benefit will be reduced. The amount of the reduction depends on how far you are from FRA. Benefits are reduced a small percentage for each month before your full retirement age. For example, if you turn age 62 in 2025, your benefit would be about 30% lower than it would be if you wait for your FRA at 67 years. Some personal finance experts like Dave Ramsey say people should consider taking Social Security early, at 62 years, and investing that money. Even though the amount of each check is lower, investing it in the stock market, which averages an annual return of 10%, could make up for that loss and more. Some people may retire early because of health problems. In those cases, SSA suggests applying for Social Security disability benefits. The disability benefit amount is the same as a full, unreduced retirement benefit. At your FRA, the disability benefit becomes your Social Security benefit. For every full year beyond your FRA you wait to take Social Security, your benefit will increase 8% until age 70. "This is where a lot of value can be gained by waiting to file for benefits,"Rizzuto said. "In order to do this, however, someone needs to make sure they have assets and income to use after they retire and before they take Social Security." Or if you continue to work beyond your FRA, each extra year you work adds another year of earnings to your Social Security record. Higher lifetime earnings can mean higher benefits when you retire, the SSA said. Phantom Social Securtity recipients? 'Vampires' in Social Security data? Here's what to know after Elon Musk claims SSA fraud Although Social Security benefits rise with age up until 70, most people still begin receiving their benefits early, according to a 2024 Employee Benefit Research Institute (EBRI) survey. The median retirement age is 62, despite people's best intentions to wait until at least 65, EBRI said. The median age at which people are collecting Social Security is 64, even though the median age workers intend to begin collecting is age 65, it said. Each year the survey is taken, EBRI said it consistently finds a large percentage of retirees leave the work force earlier than planned. In the 2023 survey, 35% of respondents said they retired earlier than planned because of a hardship, such as a health problem or disability. Another 31% retired due to changes at their company, and about 35% said they did so because they could afford to. The estimated average amount changes monthly, but in January 2025, it was $1,976, SSA said. In 1975, the average benefit was $207. This story has been updated with new information. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning. This article originally appeared on USA TODAY: How old must you be to claim full Social Security benefits? Check here
