Bob Kargenian Quoted in Retirement Daily on TheStreet

Bob Kargenian was quoted in Retirement Daily on TheStreet, in the article, “Does my spouse qualify for Social Security spousal benefits if he’s already receiving his benefits?”

According to the article, “Since the husband is 72 and already drawing Social Security, once she reaches age 66 (assuming this is her full retirement age (FRA)), her husband would receive either his benefit or 50% of her FRA benefit, whichever is greater, says Bob Kargenian, CMT, president of TABR Capital Management, LLC.

‘He will not get both,’ Kargenian explains. ‘It is one or the other. For instance, let’s say he is currently receiving $2000 per month. At her FRA, her benefit is $3400 per month. Fifty percent of that is $1700, which is less than the $2000 he is already receiving, so there would be no change in his benefit.’

Regarding opening an IRA, Kargenian says this can be done at a bank, or any other financial institution which offer IRA accounts, such as brokerage custodians Charles Schwab and Fidelity Investments. ‘But,’ he cautions, ‘I would advise against opening an IRA account at a bank. A lump sum pension check is part of what will help one live in retirement the rest of their life. Unless one invests in a diversified portfolio of stock and bond mutual funds within a bank’s brokerage division, sticking with the cash options from a bank will never keep up with inflation. At present, the average yield on a 5-year CD at banks nationwide is a blistering 0.26%. You’d be better served finding an investment firm you are comfortable with and you can trust.’

Yes, you draw a monthly check, he adds, ‘But I would not call it a pension check. It would simply be characterized as an IRA withdrawal, and yes, you will pay income taxes on the amount taken out, at both the federal and state level.’

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