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Financial Milestone Birthdays
Episode 234
Whether you prefer to ignore your natal day … or you still celebrate with gusto every year, there are a few birthdays we all need to recognize. We’re referring to the birthdays with financial implications.
HERE’S OUR LIST OF FINANCIALLY IMPORTANT BIRTHDAYS:
Day One: Newborns can be registered for Social Security immediately.
Childhood: At age 15, one can get a learner’s permit which affects parents' insurance rates. It's advised to research and shop around for auto coverage.
Age 18: This is the legal age of adulthood. Key actions include registering to vote, potential military service registration, and self-medical decision making. Parents are advised to discuss financial responsibilities with their 18-year-olds.
Age 19: Parents can't claim you as a tax dependent anymore, but college students have until age 24.
Age 21: Self-employed individuals can invest in a SEP-IRA.
Age 24: College students filing as dependents need to prepare to file taxes independently.
Age 26: Individuals must leave their parents' health insurance.
Age 50: You can contribute more to retirement plans and might consider investing in a gym membership.
Age 55: Senior discounts become available.
Age 59 ½: One can withdraw from tax-advantaged retirement plans without penalties.
Age 60: Widows/widowers can receive full spousal benefits from Social Security.
Age 62: Eligibility for Social Security begins, but delaying can increase monthly benefits. For assistance, visit FaithFi.com.
Age 65: Enrollment for Medicare begins, spanning a total of 7 months.
Age 66/67: Full retirement age, with potential benefits increasing by delaying sign up until age 70.
Age 72/73: RMDs (Required Minimum Distributions) start for retirement accounts, with penalties for non-compliance.
Age 73+: Retirement becomes more complex, with considerations for housing, driving, caregiving, and health.
No matter what birthday you’ll be celebrating this year, we hope you will make your relationship with God a priority. Psalm 71:18 says, “Even when I am old and gray, do not forsake me, my God, till I declare your power to the next generation, your mighty acts to all who are to come.”
On today’s program, Rob also answers listener questions:
- Do I pay income tax on the interest accrued by my I bonds as it accumulates, or do I pay when the bonds are cashed in?
- After selling a home below market value to my daughter and her fiancé, will she owe $20,000 in capital gains tax upon their resale?
- With our 2% mortgage interest and good investment returns, should we pay more on our mortgage or invest the extra?
- Should I continue to pay off my mortgage quickly despite earning higher interest from my bank products and investments, especially when I also have home projects in mind?
- With my children's savings accounts currently earning minimal interest, should I move their funds into CDs at a 5% rate for six months, or invest longer given the current market conditions?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our webs
Published on 2 years, 2 months ago