Can You Still Work After Retirement? Myths and misconceptions about Social Security by Ken Mahoney

While many facing retirement think of it as a time to stop working and start doing something else, this is not true for many individuals. Some baby boomer retirees are choosing to continue to work because it is what they want to do. But many more will continue to work out of necessity. It is no longer about turning a certain age and dropping your income earning activities. And whether you continue to work out of necessity or out of want, you may be wondering how continuing to bring in income may affect your ability to receive your Social Security benefit or other retirement income. Will receiving these benefits still allow you to work? The short answer to this question is yes. There may be other factors, however, that come into play.

Recipients of reduced social security

Since Social Security benefits seem to be shrinking, even though your life expectancy seems to be lengthening, if you can choose to retire before you turn 62, which is full retirement age, then you can choose to receive what is referred to as a reduced Social Security benefit and continue to work. This not only helps to extend your Social Security benefits to match your lifespan, but it also allows you to continue working while you still can. The amount that the Social Security benefit is reduced depends on the amount of income you receive from working. For example, in 2007 the yearly earnings limit was $12,960, so if you earned more than $12,960 from working, then you were responsible for repaying $1 out of every $2 that you went over the $12,960 limit.

If you are interested in receiving a reduced Social Security benefit while you continue to work during retirement, the best thing to do is talk with your local Social Security office, so they can help guide you in the right direction.

Benefits of reporting your retirement working wages

Working after you retire and reporting your “retirement income” may actually benefit you financially because it may increase the monthly Social Security benefit amount that you receive when you start drawing your benefits. The way that calculating Social Security benefits works is that it takes into consideration the highest income that you received over the thirty-five years or so you have been working. So if your new earnings in more recent years replace previous years that had lower income earnings, then you may be able to increase the Social Security benefit you are eligible to receive.

At least once a year, you receive a statement from the Social Security Administration that shows recent earnings and projects what your expected monthly Social Security will be. This means it is important that you provide the Social Security Administration with an accurate estimate of your current year earnings. This permits the administration to calculate and pay the correct benefit to you, instead of overpaying or underpaying you. Receiving an overpayment may seem like a good problem to have, but if you receive too much of a benefit, then Social Security can withhold your monthly benefit until you have repaid the overpaid amount.

Full retirement benefits

While you may not be familiar with the partial Social Security benefit, full retirement benefits are typical, with the obvious difference being that full retirement benefit earnings are much higher. At the point where you reach full retirement, there are not any earnings limitations set by the Social Security Administration, so overpayment of is not usually a concern. If, however, you are overpaid during the time that leads up to your full retirement age, then you will be responsible for paying $1 out of every $3 that you were overpaid.

Besides the emotional benefits that working after retirement brings, there may also be financial benefits. Check into how this may benefit you or for more information on Social Security benefits, whether you decide to continue working or not, visit www.ssa.gov.

Tug of war continues for Bulls and Bears by Ken Mahoney

About one-third of the S&P 500 companies have reported second-quarter results, and the numbers have been good for stocks so far. By and large, companies are beating estimates and showing growth over last year. Earnings are currently on track to have risen almost 34% from a year ago, and revenues have jumped 9.5% according to Thomson Reuters.

Stocks also got a boost from the fact that European banks largely passed a round of government stress tests aimed at clearing up market fears about how the debt crisis is affecting the region’s banking system. Only 7 out of 91 banks failed the tests. Although some analysts are scoffing at the tests and questioning their credibility, most investors viewed this as another milestone passed and shifted their focus back onto fundamentals.

All three major indexes logged strong gains for the week. The S&P 500 rose past the psychologically significant number of 1,100 for the first time this month, and eventually ended at 1,102.66, up 3.6%. The Nasdaq climbed 4.2%, bringing it into positive territory for the year (albeit barely). The Dow ended up 3.2%, and with only one week remaining, is on track for its best month since July 2009 and is trending toward erasing its losses for the year.

It’s still early in the earnings season, and with 157 of the biggest companies in the country set to report next week, the tug-of-war between stronger earnings and lukewarm economic indicators will likely continue.

Highlighting this, Treasury Secretary Timothy Geithner who appeared on NBC’s “Meet the Press” on Sunday morning, and said, “You're seeing private investment expand again, job growth starting to come back. And that's very encouraging." Interestingly, Geithner’s comments came only days after stocks slumped in reaction to Federal Reserve Board Chairman Ben Bernanke's statement that the outlook for the U.S. economy is "unusually uncertain". In light of so much mixed sentiment, it’s not surprising that most investors are taking a wait-and-see attitude.

Key things to watch this week:
Monday – New Home Sales
Tuesday – Consumer Confidence
Wednesday – Durable Goods Orders
Thursday – Jobless Claims
Friday – GDP, Employment Cost Index, Chicago PMI, Consumer Sentiment

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HEADLINES:

Even during the darkest days of the financial crisis, nearly twenty financial firms managed to shell out an estimated $1.6 billion in "ill-advised" payments to their executives, according to a federal report issued Friday. In his latest review of compensation practices at companies that were bailed out by American taxpayers, White House pay czar Kenneth Feinberg condemned those companies for how they rewarded employees between late 2008 and early 2009.

In the latest sign of renewed turbulence in the housing market, an industry group said Thursday that sales of existing homes fell 5.1% in June. The National Association of Realtors reported that existing home sales fell last month to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million in May. Sales year-over-year were up 9.8%.

Ships were getting back in place Sunday at the Gulf of Mexico site of BP's leaky oil well as crews raced to resume work on plugging the gusher before another big storm stops work again. Now that Tropical Storm Bonnie has fizzled on Louisiana's coast, engineers are hoping clear weather lasts long enough for them to finish their work on relief wells. But as peak hurricane season approaches, the potential for another storm-related delay is high.

President Barack Obama signed into law Wednesday an overhaul of banking and Wall Street regulations that he says will end many of the practices that sent the U.S. economy into the worst recession since the 1930s. The law, pushed through mainly by Democrats in Washington's deeply partisan environment, comes almost two years after the near financial meltdown in 2008 in the United States that was felt around the globe. The legislation gives the government new powers to break up companies that threaten the economy, puts more light on the financial markets that escaped the oversight of regulators and creates a new agency to guard consumers in their financial transactions.

Barrons
CNN Money
http://money.cnn.com/2010/07/23/news/companies/compensation_report/index.htm
http://www.msnbc.msn.com/id/38340258/ns/business-consumer_news/
http://money.cnn.com/2010/07/22/real_estate/existing_home_sales/index.htm
http://www.usatoday.com/money/topstories/2010-07-25-463110359_x.htm

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
.

Concerns over a slower economy trumps earnings by Ken Mahoney

Not everything that starts well ends well. After strong earnings from Alcoa Inc. and Intel Corp. fueled optimism about the earnings season, the Dow’s 7-day winning streak ended on Thursday and reversed sharply on Friday. As weaker-than-expected second-quarter revenue at Citigroup, Bank of America, and General Electric combined with disappointing economic news, both the Dow and the S&P tumbled to end the week lower for the third time in the past four weeks. Amidst growing concerns about how overhaul of the financial regulatory system could hurt bank earnings, the financial sector was the worst performer in the S&P 500, tumbling 4.4% on Friday to end the week down 2.9%.

July consumer sentiment numbers proved to be a major drag on the markets last week as survey results released by Reuters and the University of Michigan showed the ICS (Index of Consumer Sentiment) falling from 76 to 66.5 – its lowest level since August 2009. Since its inception in 1978, the index has only dropped this much 7 times. Although such moves in sentiment can’t be directly linked to spending habits, readings on consumer expectations and current conditions also took a hit in July.

Manufacturing numbers showed signs of moderation as well, with measures of manufacturing activity in the New York and Philadelphia areas coming in below expectations. All in all, the disappointing numbers were enough to undermine the confidence of investors who are particularly sensitive to bad news. Aptly summarizing recent moves in the equities markets, Paul Nolte, managing director at Dearborn Partners was quoted in MarketWatch as saying, "The market is manic depressive, great one day and terrible the next." We second that.

The second-quarter earnings season kicks into high gear this week with 122 of the S&P 500’s largest companies scheduled to report. Investors will be watching closely for cues to how both corporate America and the U.S. consumer are holding up. This week also brings a wave of housing reports and a Senate Banking Committee hearing on monetary policy with Fed Chairman Ben Bernanke set to testify. President Obama is also expected to sign into law the most comprehensive reform of banking regulation since the Great Depression.

Key things to watch this week:
Monday – Housing Market Index
Tuesday – Housing Starts
Thursday – Jobless Claims, Existing Home Sales, Leading Indicators


HEADLINES:
Six more bank failures brought the total tally for the year to 96, according to an announcement by the Federal Deposit Insurance Corp. on Friday.
A new J.D. Power and Associates survey shows, for the first time in 13 years, Detroit models make owners happier than imports. On average, owners of new American cars like their cars better than owners of Asian and European models according to the survey. The annual APEAL study – Automotive Performance, Execution, And Layout – measures how well new car buyers like their cars after living with them for three months. That's enough time to get over the initial glow of new car love and discover whether it's for real or not.

After factoring in health-care and long-term-care costs, the National Retirement Risk Index, or NRRI, produced by Boston College's Center for Retirement Research, finds that some 65% of American households are at risk of not having enough money to maintain their living standard in retirement, according to the NRRI.
BP plans to keep a mechanical cap used to seal its blown oil well in the Gulf of Mexico closed indefinitely, the oil company said during a Sunday morning press conference. The containment cap was successfully fitted to the blown well head on Thursday to stop an oil leak that has raged since the April 20 Deepwater Horizon rig explosion.

Boeing Company will receive an order for 30 of its 777 aircraft from Dubai's Emirates airline, The Wall Street Journal reported Sunday in its online edition, citing an unnamed source familiar with the order. Emirates, the world's fastest-growing airline, is expected to announce the order on Monday at the Farnborough Air Show in the United Kingdom, according to the Journal. The order has a catalog value of more than $7 billion.

American International Group said Friday that it agreed to pay $725 million to settle a securities class-action lawsuit. The suit, led by three Ohio public pension funds, stems from late 2004, when AIG was embroiled in an accounting scandal over alleged artificial inflation of claims reserves.


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Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www.marketwatch.com/story/five-more-bank-failures-bring-2010-tally-to-96-2010-07-16-1835260
http://www.marketwatch.com/story/retirement-may-mean-a-lifestyle-downgrade-2010-07-15
http://www.marketwatch.com/story/bp-to-keep-well-cap-closed-indefinitely-2010-07-18
http://money.cnn.com/galleries/2010/autos/1007/gallery.2010_jd_power_apeal/index.html
http://www.marketwatch.com/story/emirates-to-order-30-boeing-777s-report-2010-07-18
http://www.marketwatch.com/story/aig-to-pay-725-mln-in-class-action-settlement-2010-07-16?dist=afterbell

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Earnings, Earnings, Earnings will be the focus for Wall St. by Ken Mahoney

It’s amazing what a long weekend can do for your attitude. Investors returned from the Independence Day holiday in the mood to set off more fireworks as the Dow gained 5.3%, the S&P rose 5.4%, and the Nasdaq jumped an even 5%. Traders eager to buy stocks beat-up by a three-month selloff contributed toward the best performing session since July 2009.

Other figures show that the world took notice. European markets also gained, with Britain's FTSE 100 rising 0.5%, Germany's DAX advancing 0.5%, and France's CAC 40 climbing 0.5%. Asian markets likewise rallied after South Korea raised its benchmark interest rate, viewed as a positive sign for the economy. Japan's Nikkei rose 0.5%, Hong Kong's Hang Seng gained 1.6%, and the Shanghai Composite rose 2.5%.

Powering the rebound was optimism about the second-quarter earnings season which is projected to beat expectations. Analysts currently anticipate year-over-year growth of 27%, according to the latest figures from Thomson Reuters. With a measure of confidence restored, investors will be watching closely as 21 of the S&P 500 companies report this week. If the earnings season meets expectations, it will likely be good for the psyche of individual investors as they shift their focus away from global concerns and onto U.S. corporate fundamentals.

To some degree, recent gains will be put to the test as investors digest a cornucopia of key economic data scheduled for release this week including retail sales, business inventories, consumer sentiment, CPI, and more. Upcoming earnings and data have the potential to either brighten or dim hopes of an ensuing recovery.
Key things to watch this week:

Tuesday – International Trade, Treasury Budget
Wednesday – Retail Sales, Business Inventories
Thursday – Producer Price Index, Jobless Claims, Industrial Production
Friday – Consumer Price Index, Consumer Sentiment

HEADLINES:

Spain defeated the Netherlands to win the World Cup soccer final played in South Africa on Sunday, July 11, 2010. Spain won 1-0. At least several hundred thousand fans were expected to line the streets of the capital to celebrate Spain's first ever World Cup title.

Oil spewed largely unchecked once again into the Gulf of Mexico on Sunday as BP crews worked to replace a leaky cap with a new containment system they hope will finally catch all the crude from the busted well. Robotic submarines removed the cap Saturday that had been placed on top of the leak in early June. On Sunday, officials said the work was going according to plan. BP hopes the capping operation will be done within three to six days.

The average price of regular gasoline at U.S. filling stations fell to $2.7259 a gallon as crude oil prices declined and supplies of the motor fuel increased. Gasoline dropped 3.88 cents in the two weeks ending July 9, according to a survey of 2,500 filling stations nationwide by Trilby Lundberg, an independent gasoline analyst in Camarillo, California. In the same two week period, crude oil fell 3.5% and gasoline fell 4.5%.

The average rate for a 30-year mortgage fell to 4.57% last week, the lowest since Freddie Mac, the government-owned mortgage finance company, began collecting data in 1971. Borrowing costs have shrunk in recent weeks as investors concerned about the global economy have piled into the relative safety of US Treasury bonds, pushing yields down.

President Barack Obama's party could lose its House majority in this Fall's elections, his spokesman said Sunday, perhaps trying to jolt Democratic voters with the specter of GOP lawmakers rolling back White House policies. "I think there's no doubt there are enough seats in play that could cause Republicans to gain control. There's no doubt about that," press secretary Robert Gibbs told NBC's "Meet the Press."


Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www.ajc.com/sports/fiesta-time-spain-celebrates-568560.html
http://www.google.com/hostednews/ap/article/ALeqM5i-yfHJzPLDeBIhG5JDEF6VbaPR8QD9GT10M81
http://www.businessweek.com/news/2010-07-11/u-s-gasoline-drops-to-2-7259-gallon-lundberg-says.html
http://www.ft.com/cms/s/0/ab32bc1e-8d0b-11df-bad7-00144feab49a.html
http://www.google.com/hostednews/ap/article/ALeqM5iGp8jzk4pJyawzEXFnuwO5C5vBMQD9GT1J580

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

The Bears gain advantage half way through 2010 by Ken Mahoney

THE MARKETS:

In the first quarter, investors excitedly climbed a hill. In the second quarter, they were pushed off the other side by three bullies – April, May, and June. After experiencing the best first quarter performance in over 10 years, the second quarter unleashed mayhem as the broad S&P index fell 12%, the Dow dropped 10%, and the Nasdaq slipped 12% amidst the sputtering global recovery. What are some of the factors that have been weighing on the markets? Most of them can be grouped into two main categories:

1) Global Turmoil
When you look at the whole picture – problems in Europe with the PIIGS (Portugal, Italy, Ireland, Greece, Spain), slowdowns in China and the U.S., geopolitical concerns associated with North Korea and the Middle East – it’s easy to see that the global recovery is under attack.

2) Domestic Concerns
Investors and analysts alike have worried about the employment situation, housing woes, burgeoning U.S. debt, uncertain legislation affecting financial institutions, weak consumer confidence numbers, and other disturbing indicators threatening the recovery.

Whenever we discuss how the economy affects the stock market, it is good to remember that they are not one in the same. Although the condition of the economy often affects the behavior of the markets, the two do not always move in tandem. In recent months though, stock investors have been especially focused on the economy for signals of recovery to guide their investment decisions. The result has been that mixed economic data has undermined confidence in the markets.

So what can we expect in the quarter ahead? Frankly, there is a strong case to be made for the bulls and the bears. Consider just one argument for each side:

BEAR: The S&P 500 is currently down more than 15% from the highs of late April. Going back to World War II, a decline of 15% off the highs has frequently turned a correction into a bear market – a drop of 20% to 30% – according to Standard & Poor's chief investment strategist Sam Stovall.

BULL: Analysts currently expect 2010 earnings to rise 34% from a year ago, the biggest year-over-year growth since Thomson Reuters began tracking the figures in 1998. For 2011, analysts expect year-over-year growth of 17%. The P/E ratio for the S&P 500 is currently 12.3 – significantly better than the five-year trailing average of 14.2, and a strong case for stock investing.

One thing almost all the analysts agree on is that we will see a period of sustained volatility during the months ahead. As an investor, it is wise to assess your own risk tolerance from time to time and make sure you are allocated suitably for your personal investment objectives.

How the major indexes performed
Index Second-quarter performance
Dow Jones Industrial Average -10.0%
DJ U.S. Total Stock Market -11.6
DJ World (excl. U.S.) -12.7
Amex Composite -5.8
Russell 2000 -10.2
Value Line (Geometric) -11.6
S&P 500 -11.9
Nasdaq Composite -12.0
NYSE Composite -13.1

Sources: WSJ Market Data Group; DJ Indexes. All index returns exclude reinvested dividends.
Indices are unmanaged and cannot be invested into directly.