Small Business Boomers

Unless Congress intervenes, those receiving Social Security won’t see a cost of living increase in 2010. 
In all likelihood, there will be an increase in your Medicare and perscription deductions from your gross Social Security payment?  Supposedly, because of the recession, cost of living in the U.S. didn’t increase in 2009.
Will this affect many boomers?  Yes, those who are eligible for Social Security payments.  
However, is there anything that says we must have an increase each year?  Do all pensions have an increase built into them?  Is what we’re receiving more than what many paid into the system over the years? 
If the …read more

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According to recent reports, boomers and others eligible for Social Security, could receive decreased Social Security checks in 2010.  At least they won’t be increased.  If you have prescription insurance taken out, that amount is scheduled to increased, so your net will be less.  It’s likely, too, that Medicare premiums will go up…they have every year.
If you plan on Social Security to help with your living expenses, you may have to reorganize your budget and priorities. 
How will this affect your small business?

You may need to draw more for your personal living from your business.
If your customers/clients draw Social Security, they …read more

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We Baby Boomers are powerful.  At some 70 million strong, we have a lot of clout.  And we may need it in the coming years, if “entitlement reform” (euphemism for cutting Social Security benefits) starts rolling.
President Obama has committed to “entitlement reform” as a way to save the younger generations from having to pay for our Social Security benefits.  But the market crash has already taken away our other savings.  Why take our Social Security too?
I read an excellent blog post on Time Goes By recently.  The author, Ronni Bennett, warns us that it won’t be long until we will …read more

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You may have heard that there are some groups, including the National Federation of Independent Business, that are advocating for a 6-month “payroll tax holiday” to jump start the economy. Sounds like a great idea, on the surface that is.
What’s a Payroll Tax Holiday? Well, the idea is that no one has to pay Social Security/Medicare taxes (approximately 15.3 percent of your gross pay) for six months. If you are employed, your employer pays half and you pay half; if you own a business, you pay the full amount, as self-employment tax. The idea is that this money …read more

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In response to my post last week about “Should you start a business after retirement?“  Charlie from Circledog commented, “You may have no choice.”  He’s right.

No Retirement Income. Most of us (with a few exceptions like my husband) will have no  guaranteed retirement income.  Annuity pensions have gone the way of the carrier pigeon (long gone, never to return).
No more company contributions to 401(k)s.  Many companies are using the downturn as an excuse to save money by cutting their contributions to 401(k) plans. We won’t be getting any help from our companies in contributing to our retirements.  It will be …read more

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I just found out about a new “wrinkle” in the Social Security system. It allows you to start taking your Social Security benefits at age 62. Then, at any point before you reach age 70, you can stop taking Social Security, pay back the benefits you have already received, and begin taking the higher retirement benefit at 70, unreduced by any other income.
Here is what the National Center for Policy Analysis says:
A Social Security provision allows retirees to reapply for their benefits. Form 521 (Request for Withdrawal of Application) as well as IRS provisions permit an …read more

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My husband is turning 62 this fall. (Bill Clinton turns 62 in August, by the way.)
And it looks like the flood of Baby Boomers signing up for Social Security has begun, with 10,000 a day turning 62 this year. And the Social Security Administration is understaffed, so be prepared to stand in line or go online.
My husband and I have been talking about whether he should sign up for Social Security now, or wait. The earnings limit is what is stopping us. If he makes more than $36,000, his Social Security gets cut.
Many of …read more

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Some older workers never retire.  In fact, according to the Toronto Financial Post, 17% of boomers continue to work indefinitely, not just for the money but for personal satisfaction.
The trade-off is that you aren’t taking Social Security, which means that you can take more out later (if you live long enough).  Postponing your retirement (not taking Social Security) also helps the U.S. government.  The article I mentioned stated that postponing retirement 5 years can add up to $1 trillion to the U.S. coffers.  Now, I’m not advocating waiting just to help the federal government (and your children).  But, if you …read more

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