Category Archives: Social Security

Important information regarding Equifax data breach

You may have read that hackers broke into the Equifax database and stole personal information tied to 143 million people.  Ongoing updates from Equifax about this incident are available at equifaxsecurity2017.com

Baron Financial does not use Equifax for any services, but we are sharing this information for educational purposes.

Equifax is one of the three main credit reporting agencies.  They collect and maintain individual credit information and sell it to lenders, creditors, and consumers in the form of a credit report.   

What you should consider doing now:

  1. Order a Credit Report at www.annualcreditreport.com.
  2. Freeze Your Credit Reports (after ordering a copy).  A freeze stops thieves from opening new credit cards or loans in your name, but it also prevents you from opening new accounts. So each time you apply for a credit card, mortgage or loan, you need to lift the freeze a few days beforehand.  Equifax said it will waive all fees until Nov. 21 for people who want to freeze their Equifax credit files. 
  3. Regularly Monitor Your Financial Accounts, Credit Cards and Loan Accounts for any suspicious activity

Something else to consider: Sign up by November 21 for the free Credit Monitoring offer from Equifax (equifaxsecurity2017.com). Some experts have offered differing opinions on taking advantage of this service.  However, we did want to make you aware of the offer.

Continue reading Important information regarding Equifax data breach

New Jersey Public Employees – Things to Know About Your Retirement Income

 A 30-second read by Nicholas Scheibner:    As public employees for the great state of New Jersey, there are some important factors to consider when it comes to your retirement income.

Regarding Your Pension:

New Jersey Pensions fall into two categories: “I contribute to my pension” or “I do not contribute to my pension”

  • For those employees who say, “I do not contribute to my pension” the entire portion of your pension in retirement will be taxable to New Jersey.
  • For those employees who say, “I do contribute to my pension”, when you retire, a portion of your pension will be taxable and a portion of your pension will be excluded from New Jersey state tax. Note: This is the reason your gross income is higher on your New Jersey tax return if you contribute to a pension. The federal government allows pension contributions to be deducted, but NJ State does NOT allow your pension contributions to be deducted.

Regarding Social Security:

Your Social Security may be greatly reduced if you have only worked as a public employee your entire life. The calculated estimates can be difficult, so it is important to speak with your financial planner about the possible impact a pension may have on your social security income.

As always, if you have any further questions, don’t hesitate to contact the Baron Financial Group team.

What to do if you filed for Social Security and you changed your mind

A 40-second read by Nicholas Scheibner:  If you began taking Social Security before full-retirement age, and are looking to postpone payments until a later time, there is a solution: the 1-year payback rule. The 1-year payback rule gives you the ability to pay back the amount of benefits you have received, and delay your social security check until age 70. You have 12 months from the day you began collecting Social Security to do this. This would ultimately increase the monthly payments you would receive, and would maximize your social security. Continue reading What to do if you filed for Social Security and you changed your mind