Wed04162014

News

Late postal hours help last-minute filers

Late postal hours help last-minute filers

The crowd at Los Altos' post office wasn't epic when we checked today – but come tax day tomorrow (April 15) many locals may be lining up to file at the last minute.

Post offices in Los Altos and Mountain View stop collecting mail at 5 p.m. tomorr...

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Schools

Loyola School hosts STEM Expo

Loyola School hosts STEM Expo


Ellie Van Houtte/Town Crier
Ari Garabedia, above right, demonstrates his team’s project for curious classmates at Loyola School’s STEM Expo.

Some local schools are taking a different twist on the traditional science fair this year.

As a pilot p...

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Community

Chef Pépin to sign books in Los Altos

Chef Pépin to sign books in Los Altos

Master chef, author and educator Jacques Pépin is scheduled to make a personal appearance in Los Altos April 24. The “original Iron Chef” will be signing copies of his most recent books 3-5 p.m. at Main Street Café and Books, 134 Main St. The interna...

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Sports

Fruitful day on the Farm

Fruitful day on the Farm


Ellie Van Houtte/Town Crier
Los Altos High’s Brian Yeager soars in the triple jump at the Stanford Invitational Saturday.

Last weekend’s Stanford Invitational attracted the best high school track and field athletes in the region, including sever...

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Comment

The mysterious force in Los Altos: The Rockey Road

Shh ... it’s a secret. No it isn’t! I recently read a story in another paper asking if Google cash were behind the Los Altos downtown makeover and why. My first thought was, “Who cares?” We are an intelligent group in a small town where it is very di...

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Special Sections

Jewish food festival reaches beyond bagels

Who knew you could get a decent knish in Silicon Valley?

For at least one day, local foodies are gathering 10 a.m. to 5 p.m. April 27 at the Hazon Jewish Food Festival at the Oshman Family Jewish Community Center in Palo Alto to eat their way throug...

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Business

For the skin they're in : Shared interest in organic skin care leads duo to form company

For the skin they're in : Shared interest in organic skin care leads duo to form company


Ellie Van Houtte/town Crier
Nancy Newsom, left, and Kit Gordon started Botanic Organic in 2011 after they discovered a shared passion for creating organic, handmade skin-care products. The company now offers more than 15 products for adults and infa...

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Books

Local Author Spotlight

In an effort to support authors from Los Altos, Los Altos Hills and Mountain View, many self-published, Book Buzz periodically spotlights their books and offers information on where to purchase them. Local authors are encouraged to submit brief summa...

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People

MARGARET C. SNEAD

MARGARET C. SNEAD

In Cupertino, April 5, 2014

Age 95, preceded in death by her parents, John and Isabelle Coullie, her husband, Dr. Claude Rabert Snead, and her sister Maisie Bicking.

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Travel

Sausalito: Explore the historical city with world-class views

Sausalito: Explore the historical city with world-class views


Eren Göknar/ Special to the Town Crier
Sausalito offers panoramic views of the San Francisco Bay. A number of companies schedule boat tours that sail past Angel Island and Alcatraz.

On a clear day, Sausalito offers spectacular views of the San Franc...

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Stepping Out

LA Stage Company's 'Harold and Maude' opens this weekend at Bus Barn Theater

LA Stage Company's 'Harold and Maude' opens this weekend at Bus Barn Theater


courtesy of Los Altos Stage Company
Warren Wernick and Lillian Bogovich play the title characters in the Los Altos Stage Company production of “Harold and Maude.” The play runs through May 4.

The Los Altos Stage Company’s production of “Harold a...

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Spiritual Life

Silicon Valley Prayer Breakfast highlights matters of faith

Pat Gelsinger and Reggie Littlejohn come from different backgrounds and occupations, but both, guided by their Christian faith, have become leaders committed to helping others. The two shared their experiences at the 20th annual Silicon Valley Prayer...

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Magazine

A yoga class a day keeps the stress away

A yoga class a day keeps the stress away


Van Houtte/Town Crier Yoga of Los Altos hosts a variety of classes, including Strong Flow Vinyasa, above, taught by Doron Hanoch. Yin Yoga instructor Janya Wongsopa guides a student in the practice, below.

It’s nearly 9 a.m. on a Monday mornin...

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Are there benefits to taking Social Security early? Part 2

Following is the second in a two-part series exploring the pros and cons of taking early Social Security payments.

In Part 1 of this series, I explained how Social Security (SS) works and how a breakeven analysis might be used to determine at what age to start taking benefits. Doug Lemons, a retired Social Security Administration deputy assistant regional commissioner, recently performed a fairly detailed break-even analysis with various return on investment (ROI), inflation rate and tax rate assumptions. He reached a very interesting conclusion: the ROI on the invested income must generally exceed the rate of inflation by 5 percentage points or more to justify taking benefits at age 62 rather than at Full Retirement Age (FRA), and by 3 percentage points or more to begin at FRA rather than waiting until age 70.

In today’s low inflation environment, getting a consistent real return (return in excess of inflation) of 4 or 5 percent or more is extremely challenging. What’s more, Lemons found that when inflation rates and/or marginal tax rates are high, the rate of return needs to be as high as 7 or 8 percentage points above inflation to justify collecting early benefits. Both those findings were for men. For women, whose life expectancies are longer, the rate of return needs to be even higher. In other words, in most situations you would be hard-pressed to start early SS and get a real rate of return on your investments high enough to come out ahead. Therefore, based on a break-even analysis, it’s probably better to delay starting benefits as long as possible under almost any circumstances.

But the breakeven analysis is not the only way to think about Social Security. Consider that SS is the only annuity you can get that is guaranteed by the federal government and adjusts for inflation. As a complement to a well-diversified retirement portfolio, it can significantly improve your chances of having enough money to last the rest of your life, however long that turns out to be. With that in mind, it would make more sense to follow a strategy that maximizes your monthly payments on the assumption that you might have a very long life. In short, it’s again better to delay starting SS until age 70, taking this perspective. Skeptics might argue that the government is poised to start taking away some of these features. That’s certainly a possibility. But unless you currently have some diagnosis of terminal illness, do you really want to bet that you’re going to die sooner rather than later? What will happen if you turn out to have been wrong? 

So far we’ve been considering Social Security for a single individual. The decision gets more complex for a married couple. When one spouse dies, the surviving spouse may start receiving the deceased spouse’s SS payments if they’re higher than his or her own. This is especially valuable for couples where only one spouse worked. If you’re the primary breadwinner in your family, and had chosen to start your benefits early, your reduced payments would carry over to your spouse if he or she outlives you. Do you really want to limit your spouse’s SS income after you’re gone? Especially if he or she ends up living for many years after you’ve passed away?

As I’ve written previously, if you are married, widowed or divorced there are many strategies you can follow to further maximize your social security benefits (visit losaltosonline.com, Parts 1 and 2, June 29 and July 27, 2011, Artie Green’s articles on how to maximize Social Security benefits). But as to what age to start collecting benefits, I believe it’s almost always better to delay as long as possible, unless you have a terminal illness or you absolutely need the money sooner.

Artie Green, a Los Altos resident, is a certified financial planner and professional investment adviser. For more information, call (408) 747-1222.

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