RETIREMENT
Change the face of retirement for your client
Youth and good decision-making don ’ t always go handin-hand . Here are some tax implications , laws and social security rules that you can share with your clients ; helping them get beyond their past decisions and find ways to safeguard their golden years .
Student loan debt forgiveness
Sylvia Gordon , JD is president of Gordon Marketing , a national Medicare FMO . Together with her sister , Rebecca Gordon , they host a weekly Youtube show , The Wednesday Wrap Up . She is a frequent national speaker on digital marketing for insurance agents . Sgordon @ gordonmarketing . com
Joe Biden famously voted to make it illegal to bankrupt out of student loan debt . Here we are decades later with him looking like a savior to many who will have up to $ 20k of their federal loan debt forgiven , while others are fuming that they had to pay off their own loans . The long-forgotten defaulted on federal student loans will come back to haunt you once you start drawing your Social Security benefits . In order to prevent an automatic garnishment , make a payment plan before you start drawing benefits .
Back taxes
Another bad decision made in your youth could harm your estimated monthly retirement payment . If you owe back taxes to any government entity , they will garnish your Social Security up to 15 % per month .
But wait , there is more !
If you failed to pay a legally binding child support order , your ex spouse or partner can garnish up to 75 % of your monthly check . ( The amount is based on the number of children .)
Age doesn ’ t matter
If your client is an older female , this is information that could change the face of her retirement ! I ’ ve found that most women assume that since their last child is now 30 years old or older , it is simply too late to collect back child support . I ’ ve often heard that my client assumes if his child is now deceased , that the child support order is unenforceable . Not true . Those monies are due to the parent who paid the support . The money doesn ’ t go to the child so it is irrelevant if the child is grown or deceased or not on speaking terms with either parent .
50 Perspectives Q4 2022