Pastors look at Social Security

(Good advise for the rest of us too)……

Things You Must Have If You Opt Out

If you are going to opt out, there are some things you must do for the rest of your life from a common sense perspective to make sure you and your family are taken care of. They are things you should be doing anyway, but you definitely should not opt out without having these things in place. Otherwise, you’re signing up for major risks that are just not worth taking.

  • Term life insurance—You must have a level term policy that covers about 10 times your income. (That’s the average amount, but check with a professional who will take factors like age, income and specific aspects into consideration.) That way, if something happens to you, your family will be taken care of. If you die with children under 18, they would receive a Social Security check, so you’ve got to have a life insurance policy in place if you’re going to opt out, and you must keep it—period—because Social Security is not going to be there for your family to count on.
  • Long-term disability insurance—If you become disabled and have opted out, you will not receive anything from the S.S.I. at all. Do not opt out without having a good long-term disability policy in place. Once you have it, keep it!
  • Retirement savings – a 403(b) and Roth IRA—You will not be receiving a Social Security check at retirement if you opt out. So what?! If you take the thousands and thousands of dollars you’d be paying into Social Security and put that into a Roth IRA in a good growth stock mutual fund, you’ll retire with dignity times 20!
  • Long-Term Care Insurance—Dave recommends long-term care insurance the day you turn 60. So if that’s you, add that to your list of must-have coverages!
Advertisements

ACA: Affordable ? Care ?

Affordable Care Act changes for individuals

The individual mandate penalty increases to the higher of 2 percent of yearly household income or $325 person per year, with a maximum penalty per family for those using this method of $975.

New forms to contend with

The Form 1095-B and Form 1095-C, which were optional for calendar year 2014, must be filed by any person that provides minimum essential coverage to an individual

Also, taxpayers must receive a payee statement (1098-T) before they can claim an American Opportunity, Hope, or Lifetime Learning Credit or take the deduction for qualified tuition and related expenses