Financial Milestone Birthdays
FaithFi: Faith & Finance | Oct 20, 2023
Show Notes
Whether you prefer to ignore your natal day … or you still celebrate with gusto every year, there are a few birthdays we all need to recognize. We’re referring to the birthdays with financial implications.
HERE’S OUR LIST OF FINANCIALLY IMPORTANT BIRTHDAYS:
Day One: Newborns can be registered for Social Security immediately.
Childhood: At age 15, one can get a learner’s permit which affects parents' insurance rates. It's advised to research and shop around for auto coverage.
Age 18: This is the legal age of adulthood. Key actions include registering to vote, potential military service registration, and self-medical decision making. Parents are advised to discuss financial responsibilities with their 18-year-olds.
Age 19: Parents can't claim you as a tax dependent anymore, but college students have until age 24.
Age 21: Self-employed individuals can invest in a SEP-IRA.
Age 24: College students filing as dependents need to prepare to file taxes independently.
Age 26: Individuals must leave their parents' health insurance.
Age 50: You can contribute more to retirement plans and might consider investing in a gym membership.
Age 55: Senior discounts become available.
Age 59 ½: One can withdraw from tax-advantaged retirement plans without penalties.
Age 60: Widows/widowers can receive full spousal benefits from Social Security.
Age 62: Eligibility for Social Security begins, but delaying can increase monthly benefits. For assistance, visit FaithFi.com.
Age 65: Enrollment for Medicare begins, spanning a total of 7 months.
Age 66/67: Full retirement age, with potential benefits increasing by delaying sign up until age 70.
Age 72/73: RMDs (Required Minimum Distributions) start for retirement accounts, with penalties for non-compliance.
Age 73+: Retirement becomes more complex, with considerations for housing, driving, caregiving, and health.
No matter what birthday you’ll be celebrating this year, we hope you will make your relationship with God a priority. Psalm 71:18 says, “Even when I am old and gray, do not forsake me, my God, till I declare your power to the next generation, your mighty acts to all who are to come.”
On today’s program, Rob also answers listener questions:
- Do I pay income tax on the interest accrued by my I bonds as it accumulates, or do I pay when the bonds are cashed in?
- After selling a home below market value to my daughter and her fiancé, will she owe $20,000 in capital gains tax upon their resale?
- With our 2% mortgage interest and good investment returns, should we pay more on our mortgage or invest the extra?
- Should I continue to pay off my mortgage quickly despite earning higher interest from my bank products and investments, especially when I also have home projects in mind?
- With my children's savings accounts currently earning minimal interest, should I move their funds into CDs at a 5% rate for six months, or invest longer given the current market conditions?
RESOURCES MENTIONED:
Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.
