### WordPress - Web publishing software
Copyright 2011-2019 by the contributors
This program is free software; you can redistribute it and/or modify
it under the terms of the GNU General Public License as published by
the Free Software Foundation; either version 2 of the License, or
(at your option) any later version.
This program is distributed in the hope that it will be useful,
but WITHOUT ANY WARRANTY; without even the implied warranty of
MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
GNU General Public License for more details.
You should have received a copy of the GNU General Public License
along with this program; if not, write to the Free Software
Foundation, Inc., 51 Franklin St, Fifth Floor, Boston, MA 02110-1301 USA
This program incorporates work covered by the following copyright and
permission notices:
b2 is (c) 2001, 2002 Michel Valdrighi - m@tidakada.com -
http://tidakada.com
Wherever third party code has been used, credit has been given in the code's
comments.
b2 is released under the GPL
and
WordPress - Web publishing software
Copyright 2003-2010 by the contributors
WordPress is released under the GPL
---
### GNU GENERAL PUBLIC LICENSE
Version 2, June 1991
Copyright (C) 1989, 1991 Free Software Foundation, Inc.
51 Franklin Street, Fifth Floor, Boston, MA 02110-1301, USA
Everyone is permitted to copy and distribute verbatim copies
of this license document, but changing it is not allowed.
### Preamble
The licenses for most software are designed to take away your freedom
to share and change it. By contrast, the GNU General Public License is
intended to guarantee your freedom to share and change free
software--to make sure the software is free for all its users. This
General Public License applies to most of the Free Software
Foundation's software and to any other program whose authors commit to
using it. (Some other Free Software Foundation software is covered by
the GNU Lesser General Public License instead.) You can apply it to
your programs, too.
When we speak of free software, we are referring to freedom, not
price. Our General Public Licenses are designed to make sure that you
have the freedom to distribute copies of free software (and charge for
this service if you wish), that you receive source code or can get it
if you want it, that you can change the software or use pieces of it
in new free programs; and that you know you can do these things.
To protect your rights, we need to make restrictions that forbid
anyone to deny you these rights or to ask you to surrender the rights.
These restrictions translate to certain responsibilities for you if
you distribute copies of the software, or if you modify it.
For example, if you distribute copies of such a program, whether
gratis or for a fee, you must give the recipients all the rights that
you have. You must make sure that they, too, receive or can get the
source code. And you must show them these terms so they know their
rights.
We protect your rights with two steps: (1) copyright the software, and
(2) offer you this license which gives you legal permission to copy,
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Also, for each author's protection and ours, we want to make certain
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we want its recipients to know that what they have is not the
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Finally, any free program is threatened constantly by software
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program proprietary. To prevent this, we have made it clear that any
patent must be licensed for everyone's free use or not licensed at
all.
The precise terms and conditions for copying, distribution and
modification follow.
### TERMS AND CONDITIONS FOR COPYING, DISTRIBUTION AND MODIFICATION
**0.** This License applies to any program or other work which
contains a notice placed by the copyright holder saying it may be
distributed under the terms of this General Public License. The
"Program", below, refers to any such program or work, and a "work
based on the Program" means either the Program or any derivative work
under copyright law: that is to say, a work containing the Program or
a portion of it, either verbatim or with modifications and/or
translated into another language. (Hereinafter, translation is
included without limitation in the term "modification".) Each licensee
is addressed as "you".
Activities other than copying, distribution and modification are not
covered by this License; they are outside its scope. The act of
running the Program is not restricted, and the output from the Program
is covered only if its contents constitute a work based on the Program
(independent of having been made by running the Program). Whether that
is true depends on what the Program does.
**1.** You may copy and distribute verbatim copies of the Program's
source code as you receive it, in any medium, provided that you
conspicuously and appropriately publish on each copy an appropriate
copyright notice and disclaimer of warranty; keep intact all the
notices that refer to this License and to the absence of any warranty;
and give any other recipients of the Program a copy of this License
along with the Program.
You may charge a fee for the physical act of transferring a copy, and
you may at your option offer warranty protection in exchange for a
fee.
**2.** You may modify your copy or copies of the Program or any
portion of it, thus forming a work based on the Program, and copy and
distribute such modifications or work under the terms of Section 1
above, provided that you also meet all of these conditions:
**a)** You must cause the modified files to carry prominent notices
stating that you changed the files and the date of any change.
**b)** You must cause any work that you distribute or publish, that in
whole or in part contains or is derived from the Program or any part
thereof, to be licensed as a whole at no charge to all third parties
under the terms of this License.
**c)** If the modified program normally reads commands interactively
when run, you must cause it, when started running for such interactive
use in the most ordinary way, to print or display an announcement
including an appropriate copyright notice and a notice that there is
no warranty (or else, saying that you provide a warranty) and that
users may redistribute the program under these conditions, and telling
the user how to view a copy of this License. (Exception: if the
Program itself is interactive but does not normally print such an
announcement, your work based on the Program is not required to print
an announcement.)
These requirements apply to the modified work as a whole. If
identifiable sections of that work are not derived from the Program,
and can be reasonably considered independent and separate works in
themselves, then this License, and its terms, do not apply to those
sections when you distribute them as separate works. But when you
distribute the same sections as part of a whole which is a work based
on the Program, the distribution of the whole must be on the terms of
this License, whose permissions for other licensees extend to the
entire whole, and thus to each and every part regardless of who wrote
it.
Thus, it is not the intent of this section to claim rights or contest
your rights to work written entirely by you; rather, the intent is to
exercise the right to control the distribution of derivative or
collective works based on the Program.
In addition, mere aggregation of another work not based on the Program
with the Program (or with a work based on the Program) on a volume of
a storage or distribution medium does not bring the other work under
the scope of this License.
**3.** You may copy and distribute the Program (or a work based on it,
under Section 2) in object code or executable form under the terms of
Sections 1 and 2 above provided that you also do one of the following:
**a)** Accompany it with the complete corresponding machine-readable
source code, which must be distributed under the terms of Sections 1
and 2 above on a medium customarily used for software interchange; or,
**b)** Accompany it with a written offer, valid for at least three
years, to give any third party, for a charge no more than your cost of
physically performing source distribution, a complete machine-readable
copy of the corresponding source code, to be distributed under the
terms of Sections 1 and 2 above on a medium customarily used for
software interchange; or,
**c)** Accompany it with the information you received as to the offer
to distribute corresponding source code. (This alternative is allowed
only for noncommercial distribution and only if you received the
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The source code for a work means the preferred form of the work for
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If distribution of executable or object code is made by offering
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the Program or works based on it.
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You are not responsible for enforcing compliance by third parties to
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If you cannot distribute so as to satisfy simultaneously your
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example, if a patent license would not permit royalty-free
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or indirectly through you, then the only way you could satisfy both it
and this License would be to refrain entirely from distribution of the
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If any portion of this section is held invalid or unenforceable under
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It is not the purpose of this section to induce you to infringe any
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implemented by public license practices. Many people have made
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to distribute software through any other system and a licensee cannot
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This section is intended to make thoroughly clear what is believed to
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**8.** If the distribution and/or use of the Program is restricted in
certain countries either by patents or by copyrighted interfaces, the
original copyright holder who places the Program under this License
may add an explicit geographical distribution limitation excluding
those countries, so that distribution is permitted only in or among
countries not thus excluded. In such case, this License incorporates
the limitation as if written in the body of this License.
**9.** The Free Software Foundation may publish revised and/or new
versions of the General Public License from time to time. Such new
versions will be similar in spirit to the present version, but may
differ in detail to address new problems or concerns.
Each version is given a distinguishing version number. If the Program
specifies a version number of this License which applies to it and
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conditions either of that version or of any later version published by
the Free Software Foundation. If the Program does not specify a
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published by the Free Software Foundation.
**10.** If you wish to incorporate parts of the Program into other
free programs whose distribution conditions are different, write to
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we sometimes make exceptions for this. Our decision will be guided by
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free software and of promoting the sharing and reuse of software
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**NO WARRANTY**
**11.** BECAUSE THE PROGRAM IS LICENSED FREE OF CHARGE, THERE IS NO
WARRANTY FOR THE PROGRAM, TO THE EXTENT PERMITTED BY APPLICABLE LAW.
EXCEPT WHEN OTHERWISE STATED IN WRITING THE COPYRIGHT HOLDERS AND/OR
OTHER PARTIES PROVIDE THE PROGRAM "AS IS" WITHOUT WARRANTY OF ANY
KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE. THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE
PROGRAM IS WITH YOU. SHOULD THE PROGRAM PROVE DEFECTIVE, YOU ASSUME
THE COST OF ALL NECESSARY SERVICING, REPAIR OR CORRECTION.
**12.** IN NO EVENT UNLESS REQUIRED BY APPLICABLE LAW OR AGREED TO IN
WRITING WILL ANY COPYRIGHT HOLDER, OR ANY OTHER PARTY WHO MAY MODIFY
AND/OR REDISTRIBUTE THE PROGRAM AS PERMITTED ABOVE, BE LIABLE TO YOU
FOR DAMAGES, INCLUDING ANY GENERAL, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR INABILITY TO USE THE
PROGRAM (INCLUDING BUT NOT LIMITED TO LOSS OF DATA OR DATA BEING
RENDERED INACCURATE OR LOSSES SUSTAINED BY YOU OR THIRD PARTIES OR A
FAILURE OF THE PROGRAM TO OPERATE WITH ANY OTHER PROGRAMS), EVEN IF
SUCH HOLDER OR OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.
### END OF TERMS AND CONDITIONS
### How to Apply These Terms to Your New Programs
If you develop a new program, and you want it to be of the greatest
possible use to the public, the best way to achieve this is to make it
free software which everyone can redistribute and change under these
terms.
To do so, attach the following notices to the program. It is safest to
attach them to the start of each source file to most effectively
convey the exclusion of warranty; and each file should have at least
the "copyright" line and a pointer to where the full notice is found.
one line to give the program's name and an idea of what it does.
Copyright (C) yyyy name of author
This program is free software; you can redistribute it and/or
modify it under the terms of the GNU General Public License
as published by the Free Software Foundation; either version 2
of the License, or (at your option) any later version.
This program is distributed in the hope that it will be useful,
but WITHOUT ANY WARRANTY; without even the implied warranty of
MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
GNU General Public License for more details.
You should have received a copy of the GNU General Public License
along with this program; if not, write to the Free Software
Foundation, Inc., 51 Franklin Street, Fifth Floor, Boston, MA 02110-1301, USA.
Also add information on how to contact you by electronic and paper
mail.
If the program is interactive, make it output a short notice like this
when it starts in an interactive mode:
Gnomovision version 69, Copyright (C) year name of author
Gnomovision comes with ABSOLUTELY NO WARRANTY; for details
type `show w'. This is free software, and you are welcome
to redistribute it under certain conditions; type `show c'
for details.
The hypothetical commands \`show w' and \`show c' should show the
appropriate parts of the General Public License. Of course, the
commands you use may be called something other than \`show w' and
\`show c'; they could even be mouse-clicks or menu items--whatever
suits your program.
You should also get your employer (if you work as a programmer) or
your school, if any, to sign a "copyright disclaimer" for the program,
if necessary. Here is a sample; alter the names:
Yoyodyne, Inc., hereby disclaims all copyright
interest in the program `Gnomovision'
(which makes passes at compilers) written
by James Hacker.
signature of Ty Coon, 1 April 1989
Ty Coon, President of Vice
This General Public License does not permit incorporating your program
into proprietary programs. If your program is a subroutine library,
you may consider it more useful to permit linking proprietary
applications with the library. If this is what you want to do, use the
[GNU Lesser General Public
License](http://www.gnu.org/licenses/lgpl.html) instead of this
License.
Three Factors to Consider Before Taking Social Security - sinth.info
The complexities of Social Security calculations can cause some confusion around when someone eligible should file and claim their benefit. The best place to begin is understanding your eligibility.
Like most government programs, Social Security has many layers, and it is not always clear when and how some should begin taking their benefit, because being eligible doesn’t necessarily mean you should turn the benefit on.
Social Security benefits can be turned on as early as age 62, and each year the benefit is delayed, you receive what is called delayed retirement credits (DRCs). These DRCs guarantee an 8% automatic increase to your Social Security benefit for every year you delay up to age 70.
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In the middle of this age band, there is something called your FRA (full retirement age). This is the age when you are eligible to receive the full benefit without an offset for having earned income. (Earned income is income from employment and is different than income received from investments, pensions or annuities.) For those born in 1960 or later, your FRA is age 67.
How Social Security benefits are calculated
The benefits are calculated by the Social Security Administration (SSA) by taking 35 years of earnings that are indexed for inflation. Any years you didn’t work, a zero is added to your record which negatively impacts your benefit. These annual amounts are then totaled and divided by 420 months to arrive at the monthly figure known as your average indexed monthly earnings (AIME). However, this is not your benefit amount. The SSA then applies a formula to your AIME that determines your primary insurance amount (PIA), and this is your monthly Social Security benefit.
If you choose to take your benefit before your FRA while employed, there is an offset that can significantly reduce the benefit if your income exceeds $21,240 in 2023. This reduction is $1 for every $2 of earned income over the limit.
In the year you reach your FRA, the limit increases to $56,520 in 2023, with a benefit reduction of $1 for every $3 of earned income over the limit. After you have reached your FRA, there are no earnings limits, and you receive the full benefit with no income offsets.
Some Social Security benefits are taxed
When it comes to taxes on Social Security, there is something called provisional income. Once benefits are turned on, there are tax rules that are different from ordinary income that you need to understand. Your provisional income is calculated by taking your adjusted gross income plus half of your Social Security benefit. That total is your provisional income. If that total is less than $25,000, your Social Security benefit is not subject to federal tax. If it’s above $25,000 but below $34,000, 50% of the benefit is taxed, and if it’s above $34,000, 85% of the benefit is taxed.
As you can see, there are many factors that contribute to how the benefits are calculated, but there are a few other rules worth mentioning.
There are also rules and benefits for non-working spouses that allows them to use secondary (auxiliary) benefits calculated off their spouse’s work record that is different than a spousal benefit.
In my book Common Sense, I take a deeper dive into these other areas and explain how to navigate different filing strategies. You can also access more information by going directly to the Social Security website.
Now that the foundation has been laid, there are three things I want to share with you that are common conversations that I have with clients as it relates to Social Security. However, the decision when to take your benefits requires a comprehensive evaluation of your situation, and what I am sharing is not meant to be advice.
1. Consider your break-even point
One method for deciding when to take Social Security benefits involves calculating the break-even point. This is the future point in time when the value of one option equals that of another. For example, if your full retirement age (FRA) benefit is $2,000 per month and $1,400 at age 62, there’s a $600 monthly difference. (It’s important to understand that if you opt for the reduced benefit at age 62, this becomes your permanent monthly amount and remains unchanged even when you turn 67.)
If you begin your benefit at age 62, you’ll receive a reduced payout for five years before your full benefits would have otherwise begun (age 62-67). During this five-year period, the total benefits amount equals $84,000 ($1,400 x 60 months). Compared to if you delay your benefit until age 67 and then begin receiving the $2,000 per month, your break-even point would occur in 11.6 years.
In other words, prior to the break-even point, you would receive more from Social Security by beginning the benefit at 62. However, after the break-even point, more would be received by delaying the benefit.
Something to keep in mind: By taking a benefit early, you reduce the amount of spousal benefit made available since the benefit was reduced. This may be an important consideration when weighing your choices.
2. Consider your health and longevity
I often hear clients argue that they may not live another 11 years, making this a significant factor in their decision-making process. Factors like poor health or family history could prompt someone to start collecting benefits as soon as they’re eligible, fueled by concerns about missing out if they die prematurely.
From their perspective, it’s a win-win situation: They start receiving benefits early, and if they live longer than expected, the payments continue.
While it would be easier to make this decision if we knew our life-span, it’s up to you to decide what’s best for your situation. However, if you’re in poor health, taking benefits early might be a reasonable option.
3. Consider your retirement income
We have covered the higher-level considerations inside Social Security itself, but there are other factors in play that take priority over waiting for the maximum benefit, and that is the need for current income.
Many clients we work with see Social Security as a piece of their retirement income strategy and aren’t as concerned with break-even points as much as they are with maximizing their other assets.
If income is needed, and there is a choice between allocating assets for income or turning Social Security on early, we have found that many people elect to go with their Social Security benefit.
The reasons for this are many, but in most cases, it is the desire to maintain the growth of their existing assets. Yes, the delayed credit of 8% is guaranteed growth backed by the government, but there are other considerations at play.
If we use the $1,600 per month example from earlier and calculate what it would take to generate this amount of new income, we find it difficult to calculate. The reason it is difficult is because there is an unknown variable called the stock market and economic policy.
At the time, interest rates are higher than what we would consider normal, and markets are not reliable enough to provide a consistent income stream. So, determining how to create the income can pose a problem. We can make assumptions about market performance, but Social Security is a sure thing backed by the government, which has access to a money-printing machine.
Our human propensity is to find shortcuts and rush to conclusions, but this is not a decision to rush. The conversation about Social Security is actually not a conversation about Social Security as much as it is about retirement income, and that requires careful planning. Therefore, it is imperative to speak with a financial planner who knows how Social Security works and understands how to generate income from assets.
To learn how prepared you are for retirement, you can access a Retirement Checklist by visiting my website, brianskrobonja.com.
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