Tue05052015

News

Water district reps address LAH concerns over project taxation

Water district reps address LAH concerns over project taxation

 Gary Kremen

Los Altos Hills residents, city councilmembers and even the Santa Clara Valley Water District Board chairman have protested taxes for water the district doesn't deliver.

"We're getting taxed for something we're not receiving, ...

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Schools

Homestead students use projects  to solve environmental problems

Homestead students use projects to solve environmental problems


Alisha Parikh/Special to the Town Crier
Homestead High School junior Maya Dhar, a Los Altos resident, left, and classmate Carolyn MacDonald support the school’s AP Environmental Science classes at the Arbor Day Festival April 23.

As summer appro...

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Community

Slideshow: Los Altos Live!

More than 20 acts performed to a soldout crowd April 25 at Los Altos High School's Eagle Theater for the seventh annual "Los Altos Live!" talent show. The show featured an eclectic range of acts, including rock bands, singers, dancers and the Broad...

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Sports

St. Francis swimmers shine

St. Francis swimmers shine


Megan V. Winslow/Town Crier
St. Francis High’s Benjamin Ho competes against Sacred Heart Cathedral Thursday. The junior swam on all three victorious relays at the home meet, which the Lancers won easily.

Flexing its power in the pool, host St....

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Comment

Halsey House deserves preservation: Other Voices

Halsey House deserves preservation: Other Voices


Many contributing supporters to the Friends of Historic Redwood Grove believe that the Halsey House, designated a historic landmark by the Los Altos City Council in 1981, deserves to be saved and renovated for adapted use by the community.

Set in ...

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Special Sections

Sneaky shots: A photographers guide to capturing the proposal

Sneaky shots: A photographers guide to capturing the proposal


Elliott Burr/Special to the Town Crier
A stealthy photographer scouts locations ahead of time to find not just a place to perch, but also the ideal position for the subjects.

It’s showtime.

You’re about to ask the person in front of you to spen...

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Business

Pharmaca celebrates grand opening over weekend

Pharmaca celebrates grand opening over weekend


Megan V. Winslow/Town Crier
Pharmaca is coming to 400 Main St. with a grand-opening celebration scheduled Saturday and Sunday.

If natural health and beauty products are your cup of tea, expect to find them – and hot tea – this weekend at the gran...

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Books

People

JANE BUTTERFIELD PRINGLE LYND

JANE BUTTERFIELD PRINGLE LYND

October 30, 1924 - April 8, 2015

Jane Butterfield Pringle Lynd, daughter to Liebert and Elise Butterfield of San Francisco, passed away quietly at her home in Palo Alto surrounded by her family, following a short illness. Jane was a proud third ge...

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Travel

Cuba libre: Local residents join mad rush of travelers

Cuba libre: Local residents join mad rush of travelers


Natalie Elefant/Special to the Town Crier
Los Altos resident Natalie Elefant noted the vibrant street performances as a traveler in Cuba.

The U.S. restored diplomatic relations with Cuba late last year, enabling Americans to import $100 worth of cig...

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Stepping Out

'Birds' landing in Mtn. View

'Birds' landing in Mtn. View


Ray Renati/Special to the Town Crier
The Pear Avenue Theatre production of Paul Braverman’s “Birds of a Feather” stars Troy Johnson as mafia boss Sean Kineen, left, and Diane Tasca as private eye Frankie Payne.

Pear Avenue Theatre’s world premi...

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Spiritual Life

Magazine

Practice prudent pruning: Maintaining manzanita, ceanothus and toyon

Practice prudent pruning: Maintaining manzanita, ceanothus and toyon


tanya kucak/Special to the Town Crier
Shrub manzanitas are known for their sinuous mahogany trunks and branches. If the foliage hides the bark, prune selectively to open the center so that the bark is visible year-round. This Montara manzanita is ...

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Inside Mountain View

Up to the challenge: Local leaders unite to help at-risk youth

Up to the challenge: Local leaders unite to help at-risk youth


Courtesy of Challenge Team
Jeanette Freiberg, bottom of pile, has fun with family members. The Challenge Team named Freiberg, a student at Mountain View High School, its 2015 Youth Champion.

There’s an ongoing joke among members of the Challenge...

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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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