Social Security Q&A: Support From Friend Could Affect SSI Eligibility, Amount
Q: Next month I’ll turn 65 and, because of my financial situation, I thought I’d be eligible for Supplemental Security Income. But my neighbor told me I’d be turned down because I have a friend who said he might help support me. Is this true? A: If your friend helps support you, it could have an effect on whether you get SSI and on the amount you receive. Whether you can get SSI depends on your income and resources (the things you...
Money Talk: Gift to Son Not a Charitable Donation
Question: Our son bought a house and lost his job two months after the purchase. We have helped him stay afloat. Thankfully he has a new job. We don’t expect to get the money back — he is still trying to get out from under — but we have given him close to $10,000. Can we claim this as a “gift” to him on our income taxes? Answer: The IRS doesn’t view money given to family members as a charitable donation. In other words, there’s no tax...
Social Security Q&A: What Is Substantial Gainful Activity?
Question: What is substantial gainful activity? Answer: Social Security uses the term “substantial gainful activity,” or “SGA,” to describe a level of work activity and earnings. Work is “substantial” if it involves doing significant physical or mental activities or a combination of both. If you earn more than a certain amount and are doing productive work, Social Security generally considers that you are engaging in substantial...
Money Talk: Tackling a Big Remodel Before Retirement
Question: I would like to add on and remodel so my home will be nice for me when I retire in a few years (probably around age 65). I have a recently refinanced 30-year mortgage at 4.1 percent, but I’ve been making additional principal payments on a 20-year schedule. I think I can do what I want for around $200,000. (But of course it may be more.) Post-construction, I’m estimating that the house would have a market value of $800,000 to...
Is It Better to Save by the Dollar or by a Percentage?
When contributing to your employer-sponsored plan, you can choose to defer your income by a dollar or a percentage amount. The smart thing to do is to opt for whichever makes you save more. An automatic deduction from your paycheck is an effective way to save for retirement regularly. When initially enrolling in a 401(k) or other plan, you elect how much, in dollar or percentage terms, you want to contribute each pay period....
