To offer clarification, I found this fairly straight forward explanation which I copied from SmartAsset. ”The WEP and Government Pension Offset (GPO) both reduced Social Security benefits for retirees with pensions from non-covered employment, but they applied in different ways.
The WEP reduced personal Social Security benefits – such as retirement or disability benefits – for individuals who worked in both covered and non-covered jobs. It adjusted the benefit formula, often lowering payments for those with fewer than 30 years of substantial earnings under Social Security. The GPO affected spousal, widow and widower benefits distributed by the Social Security Administration, reducing them by two-thirds of the retiree’s non-covered pension. This often left individuals with little or no spousal benefits.” My husband was affected by the WEP provision. In addition to his government job, he also worked several part time jobs over the years and paid SS taxes into the system. The WEP basically eliminated any SS payment based on his own earnings for which he was taxed and the GPO portion eliminated any spousal benefit he might apply for based on my earnings. Spousal benefits are available to both spouses who worked outside the home as well as those who stayed home to raise families. i have no idea, though, how or why Kathy was affected by a non-US pension. That’s a head scratcher.
Much like Chris, I engage with workers I encounter while out running errands or traveling. I hope they see in my face that I truly see them. I so often see people startle and then respond positively when I pause for a few seconds to thank them for what they do or ask how they are and then wait for an answer. It seems as though the workers that make our lives easier or better often feel invisible. As a frequent traveler, I especially appreciate the people who keep our airport bathrooms clean and I make sure they know that.
Laura, thank you for your interesting post here and for the link to your earlier TIPS article, I had not understood much about TIPS prior to your post. With the passing of Social Security Fairness Act, my husband is now eligible to receive a very small benefit. Prior to the SSFA, that benefit was almost completely reduced to zero by the Government Pension Offset so he had not worried about qualifying. The only problem now was that he lacked 4 quarters of earnings to be eligible. So off to work he went. He was lucky to get hired to work during spring training for a professional baseball team. This has proven to be a fun job! I’ve observed that he has more pep in his step lately and I know that he has really enjoyed being around other “retired” coworkers. He gets a kick out of being able to bring a smile to young fans by giving them the baseballs he’s collected from overlooked fly balls. But at 71 after being retired for many years, the many hours on his feet has begun to take a toll. Although I have doubts that he’ll reach his SS goal this year at minimum wage and with the seasonal aspect of the job and our upcoming 6 weeks’ trip to NM, but it’s been a great experience for him. And I have not minded the bonus of some time alone at home! Oh - and Skechers are also our “go-to” footwear.
These sites are fantastic! (The superlative might be the second cup of coffee talking.) I’m excited to start spending some time on these. Thank you to all of the contributors!
What a fun topic, Marjorie! My children are in their 30’s and their children are 4 months and 2 years old. I’m very lucky to have really strong and fun relationships with both families. A recent example where they “enhanced” or perhaps enlightened me was in preparation for the half time show for the Super Bowl. They were pretty excited for Kendrick Lamar’s performance and made sure that I knew his background story, read his lyrics and understood the message behind them (he was standing up to some bad actors in the hip hop scene.) Though I still struggled with understanding a lot of it, I felt younger and “cool” just having that information, especially in conversations the next day around our 55+ community! And I recently ordered myself a matching tutu to the one my 2 year old granddaughter loves to wear. We danced around the kitchen in them together and the joy and laughter was exhilarating! I felt younger than my 64 years! I definitely feel more of that “sheer excitement” you ask about in your second question now when I’m with them than I did in my youth, which was fraught with challenges. I’m making up for it now!
It’s great to hear that now that I’m more than 5 years out from retirement, the risk of depletion is only 1 in 25! And kudos to you, David, for being the catalyst to this interesting study and article in Morningstar!
Thanks, Dan, for your response. I think I’ll keep the money in Ally for now. The many steps needed to change all bill pay and deposits doesn’t appeal to me for such a small increase in interest and knowing it can fluctuate daily.
Norm, is there any significant risk to money market funds as opposed to a bank account that is FDIC insured? I looked at Fidelity this morning, where we have all of our investments, and the rate was higher than the 3.7% we currently receive from Ally Bank, which is online only. We have a local credit union for currency exchange, etc. I know that Fidelity says that there’s no guarantee you won’t lose money in their MMFs, but I don’t know under what circumstances that might happen.
My husband and I just completed our spreadsheet tracker for February. It took 10 minutes and reminded me what our other reasons are for doing this beyond the obvious, which I mentioned in an earlier post. When we got married 9 years ago, my husband wanted to be the one to take over paying the bills and his method was different from how I had been managing my finances for years. Filling out the spreadsheet together gave and continues to give us the opportunity to ensure that we are both equally aware of where our money is going and talk about anything that might be out of the ordinary in either our expenses or income. This has uncovered some differences in perspective in the past which has led to some lively and enlightening conversations! We also list each credit card separately and only record the monthly total for each without capturing the specific purchases. This helps in 2 ways. About 85% of the credit card balances are from discretionary spending and therefore could be reduced if necessary. And the second reason is that we can be sure that we are being smart about getting the points and benefits we want from each card by shifting which one is primary in any given year. The process also gives us the ability to compare year to year to see the overall variations in income and spends. Which has helped us determine when and how much we need to begin to withdraw small amounts from investments to fund our travel goals. I get that this process is not everyone’s cup of tea, but it works for us. And in my opinion, the wonderful thing about HD is the sharing of different ideas, knowledge and perspectives in the hope that in doing so, someone might find something useful for themselves. Or at least something interesting.
— Jan
Comments
To offer clarification, I found this fairly straight forward explanation which I copied from SmartAsset. ”The WEP and Government Pension Offset (GPO) both reduced Social Security benefits for retirees with pensions from non-covered employment, but they applied in different ways. The WEP reduced personal Social Security benefits – such as retirement or disability benefits – for individuals who worked in both covered and non-covered jobs. It adjusted the benefit formula, often lowering payments for those with fewer than 30 years of substantial earnings under Social Security. The GPO affected spousal, widow and widower benefits distributed by the Social Security Administration, reducing them by two-thirds of the retiree’s non-covered pension. This often left individuals with little or no spousal benefits.” My husband was affected by the WEP provision. In addition to his government job, he also worked several part time jobs over the years and paid SS taxes into the system. The WEP basically eliminated any SS payment based on his own earnings for which he was taxed and the GPO portion eliminated any spousal benefit he might apply for based on my earnings. Spousal benefits are available to both spouses who worked outside the home as well as those who stayed home to raise families. i have no idea, though, how or why Kathy was affected by a non-US pension. That’s a head scratcher.
Post: An Insignificant Sum?
Link to comment from March 27, 2025
Much like Chris, I engage with workers I encounter while out running errands or traveling. I hope they see in my face that I truly see them. I so often see people startle and then respond positively when I pause for a few seconds to thank them for what they do or ask how they are and then wait for an answer. It seems as though the workers that make our lives easier or better often feel invisible. As a frequent traveler, I especially appreciate the people who keep our airport bathrooms clean and I make sure they know that.
Post: Mirror, Mirror On The Wall
Link to comment from March 27, 2025
Laura, thank you for your interesting post here and for the link to your earlier TIPS article, I had not understood much about TIPS prior to your post. With the passing of Social Security Fairness Act, my husband is now eligible to receive a very small benefit. Prior to the SSFA, that benefit was almost completely reduced to zero by the Government Pension Offset so he had not worried about qualifying. The only problem now was that he lacked 4 quarters of earnings to be eligible. So off to work he went. He was lucky to get hired to work during spring training for a professional baseball team. This has proven to be a fun job! I’ve observed that he has more pep in his step lately and I know that he has really enjoyed being around other “retired” coworkers. He gets a kick out of being able to bring a smile to young fans by giving them the baseballs he’s collected from overlooked fly balls. But at 71 after being retired for many years, the many hours on his feet has begun to take a toll. Although I have doubts that he’ll reach his SS goal this year at minimum wage and with the seasonal aspect of the job and our upcoming 6 weeks’ trip to NM, but it’s been a great experience for him. And I have not minded the bonus of some time alone at home! Oh - and Skechers are also our “go-to” footwear.
Post: Going Back to Work (Briefly)
Link to comment from March 27, 2025
These sites are fantastic! (The superlative might be the second cup of coffee talking.) I’m excited to start spending some time on these. Thank you to all of the contributors!
Post: My Favorite Websites
Link to comment from March 14, 2025
Thank you for your comment, Cecelia. We are of like minds again. :)
Post: Detailed tracking expenses and spending. Is there real value?
Link to comment from March 10, 2025
What a fun topic, Marjorie! My children are in their 30’s and their children are 4 months and 2 years old. I’m very lucky to have really strong and fun relationships with both families. A recent example where they “enhanced” or perhaps enlightened me was in preparation for the half time show for the Super Bowl. They were pretty excited for Kendrick Lamar’s performance and made sure that I knew his background story, read his lyrics and understood the message behind them (he was standing up to some bad actors in the hip hop scene.) Though I still struggled with understanding a lot of it, I felt younger and “cool” just having that information, especially in conversations the next day around our 55+ community! And I recently ordered myself a matching tutu to the one my 2 year old granddaughter loves to wear. We danced around the kitchen in them together and the joy and laughter was exhilarating! I felt younger than my 64 years! I definitely feel more of that “sheer excitement” you ask about in your second question now when I’m with them than I did in my youth, which was fraught with challenges. I’m making up for it now!
Post: Sweet Bird of Youth by Marjorie Kondrack
Link to comment from March 7, 2025
It’s great to hear that now that I’m more than 5 years out from retirement, the risk of depletion is only 1 in 25! And kudos to you, David, for being the catalyst to this interesting study and article in Morningstar!
Post: Sequence of Return Risk
Link to comment from March 7, 2025
Thanks, Dan, for your response. I think I’ll keep the money in Ally for now. The many steps needed to change all bill pay and deposits doesn’t appeal to me for such a small increase in interest and knowing it can fluctuate daily.
Post: Breaking Up Is Hard To Do
Link to comment from March 7, 2025
Norm, is there any significant risk to money market funds as opposed to a bank account that is FDIC insured? I looked at Fidelity this morning, where we have all of our investments, and the rate was higher than the 3.7% we currently receive from Ally Bank, which is online only. We have a local credit union for currency exchange, etc. I know that Fidelity says that there’s no guarantee you won’t lose money in their MMFs, but I don’t know under what circumstances that might happen.
Post: Breaking Up Is Hard To Do
Link to comment from March 7, 2025
My husband and I just completed our spreadsheet tracker for February. It took 10 minutes and reminded me what our other reasons are for doing this beyond the obvious, which I mentioned in an earlier post. When we got married 9 years ago, my husband wanted to be the one to take over paying the bills and his method was different from how I had been managing my finances for years. Filling out the spreadsheet together gave and continues to give us the opportunity to ensure that we are both equally aware of where our money is going and talk about anything that might be out of the ordinary in either our expenses or income. This has uncovered some differences in perspective in the past which has led to some lively and enlightening conversations! We also list each credit card separately and only record the monthly total for each without capturing the specific purchases. This helps in 2 ways. About 85% of the credit card balances are from discretionary spending and therefore could be reduced if necessary. And the second reason is that we can be sure that we are being smart about getting the points and benefits we want from each card by shifting which one is primary in any given year. The process also gives us the ability to compare year to year to see the overall variations in income and spends. Which has helped us determine when and how much we need to begin to withdraw small amounts from investments to fund our travel goals. I get that this process is not everyone’s cup of tea, but it works for us. And in my opinion, the wonderful thing about HD is the sharing of different ideas, knowledge and perspectives in the hope that in doing so, someone might find something useful for themselves. Or at least something interesting. — Jan
Post: Detailed tracking expenses and spending. Is there real value?
Link to comment from March 7, 2025