COA 4131 1st Edition Lecture 29 Outline of Last Lecture I. Types of Real Estate InvestmentsII. What are Mineral Rights?III. Facts about Mineral Rights IV. LeasingV. Esoteric Investments Outline of Current Lecture I. Esoteric Investments II. Thinking of Retiring? III. Considerations for Retiring IV. Negative of Retiring at the Wrong Time V. What are the Best Options?VI. AgeVII. MedicareVIII. Receiving Benefits while you Still WorkIX. Early Retirement X. Retirement Age ConsiderationsXI. How your Social Security affects your Spouse Current LectureA. Esoteric Investmentsa. Precious metals i. Can invest in gold exploration tooii. Gold prices fluctuate every single day b. Precious stones i. Gems1. Most valuable is diamonds2. Country of origin can varya. Sometimes you will know sometimes you will not3. Africa a. Asia is coming up and so is Canada 4. Have checked by American Diamonds Check a. Certificate with cut, shape, color, ect 5. Diamonds will last for centuries a. Will not depreciate b. Want the largest diamond and the best cut 6. The Beer’s a. In South Africab. Great, huge diamond country 7. Sapphire’s are second to diamonds in expensive, then emerald’s, and ruby’s, and so ona. Princess Diana’s and now Kate Middleton’s ring is a very expensive sapphire circular ring 8. Sterling silver is more expensive and better quality than silver plated c. Collectiblesi. One third of American’s collect something 1. Totally normal in our country ii. Art, ect iii. All sorts of things1. Barbie dolls, Pokeman, antiques, comic books, any kinds of collecctions2. For pleasure and for worthiv. Good to pick a category and study them1. Looking for rarity and condition2. Need a written statement with any flaws and where it is fromv. Fraud and faking is common1. Have to research it and make sure you are not being tricked vi. Antiques1. If you inherit or get an antique chest of drawers you want to knockit 2. If there’s a spring inside, that means there is a secret compartmentvii. Bidding at an auction 1. Signal when you want to bid on that item and that price viii. Use common sense ix. How to protect yourself1. Reputable dealers a. Needs to be legit 2. Should find out if the person you are dating is a collector and whether or not you can live with that B. Thinking of Retiring? a. What you May or May not Know about Social Security?i. Have a target date fund or bond1. Plan for the birthday of when you would hypothetically retire and have that target fund expire on that date C. Considerations for Retirementa. Two different ways to retirei. You could apply for Social Security retirement benefits and not work anymore1. Will be directly deposited 2. No longer in mailbox because people used to steal themii. You could receive Social Security while still employed as a part-time or full-time jobb. 1960 and up you can get full benefits at 67 years oldi. 62 years for partial c. At age 62, everyone can get partial payments from Social Securityi. Doesn’t matter what year you were born D. Negatives of Retiring at the Wrong Timea. Too early?i. If you retire too early you may not have enough income to enjoy the rest of your retired years ahead b. Too late?i. If you retire when you are too old, you will not have enough time to enjoyitc. This is one of life’s biggest gambles E. What are the best options?a. Always remember every situation is different when it comes to Social Securityb. Online calculators can project an estimated retirement benefits you could receivec. This estimate can help you create “What if” scenariosi. Can change “stop work” date or expected future earnings and compare different retirement plans and options that will be best for you F. Age a. Fact: You may need your income to be sufficient for a long time b. People are living longer than ever beforei. Generally women live longer than menc. Typical 65 year old today will live to be 83 years oldd. One in four 65 year olds will live to be 90 years old e. One in 10 65 year olds will live to be 95 years old G. Medicarea. Even if you do not plan to receive monthly benefits, you should sign up for Medicare 3 months before you turn 65i. This is a fact! b. By not signing up in time you could be faced with high premiums or delayed coverage on all things medical H. Receiving Benefits while you still Work a. Once you reach full retirement age, you can still work and earn as much as you want while receiving your full social security benefit paymentb. Do not try and limit your earnings because of this!c. If benefits are withheld, you will receive a higher monthly amount once full retirement age is reached I. Early Retirementa. No mandatory ageb. Can start to take out retirement from work i. At age 59 and a half or 60 c. If your earnings exceed a certain dollar amount, some of your benefit payments during the year will be withheld d. Once 40 credits have been earned you may begin receiving Social Security benefits at age 62i. However, by doing this your benefits will be reduced based on the number of months you receive benefits before you reach your full retirement age ii. Your benefit will be increased by a certain percentage for each month youdon’t receive benefits between your full retirement age and 70 J. Retirement Age Considerationsa. Full retirement age is considered 66 for anyone born 1943-1954b. For people born after those dates, your full retirement age is found on page 2 of your social security statement c. With just Social Security some people are living on just $50 a month i. Not enough for majority of people d. Pension is going out and less people are receiving them K. How your Social Security Affects your Spouse a. If you are married and die before your spouse, he or she may be eligible for a benefit based on your work recordb. Social security will not pay your spouse a full benefit if you receive them before you reach your full retirement agec. If you wait until full retirement age to receive your benefits, you will receive benefits based on your
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