The best way is to keep your income low and to use tax advantaged ways of investing. The income levels for social security change depending on your marital status. Using single as your status you'll need 85 percent of your social security and taxable income to stay under $11,500. Note that if you have nontaxable interest such as municipal bonds it's added to determine if your social security is taxable. You can get significant saving from qualified dividends, the maximum tax rate is 15 percent, and if you are in the 15 percent or lower tax bracket the dividends are tax free.
No. Social Security retirement (vs. SSI) is not based on income or assets.
No the retirement income is not a EARNED income. And the amount of your retirement income that you receive during the year would NOT be included in the earnings test amount that could reduce your SSB amount for the year.
Not really. You try hiring a police force, fire department, and army to protect you and see how much income you have left over for "savings, investments, and the purchases of goods and services."
The benefits of mutual funds is that they help you to diversify your investments and reduce investment risk as they invest in a wide range of securities. You can either generate regular income or create wealth in the long term.
Put income into tax free or tax deferred instruments. You can use 401(k) plans, IRAs (either Traditional or Roth), and if you have other investments above these, you can invest in municipal bond funds or individual municipal bonds if your main goal is to lower income taxes. These are a few ways to reduce the amount of taxes that you have.
Social Security Administration calculates your earnings based on the highest 35 years of income. So continuing to work part time will not lower your benefit amount. They even include years of zero income in the calculation if there are not 35 years of income recorded.
I would suggest you contact an accountant for this type of information and ask them.
No. Only earned income is counted toward the $14,160 annual cap and still allow you to receive full benefits between the ages of 62 and the year in which you achieve the full retirement age of 66. The earning cap increases to $37,680 in January of the year you turn 66, and is lifted completely the month of your birthday. Afterward, there is no earned-income limit.Pension checks, 401k payouts, annuities, capital gains, and other investments are not counted toward the income limit at any time.
reduce risk by spreading investments among several assets.
Not if you are already receiving Social Security. If you are still in your earning years, your ultimate benefits my reduce as they take the average of your last 40 quarters of earned income (which does not include unemployment benefits) to determine the benefits you receive.
Dividends paid do not reduce the net income amount shown in income statement rather it reduces the income amount shown in balance sheet as retained earnings which is the remaining profit after dividend.
reducing risk... gambling...