Every week, Nathan Bachrach, Ed Finke and Amy Wagner of Simply Money answer your financial questions. If you, a friend, or a family member have a problem or money problem, feel free to send these questions to [email protected]

Evelyn in Clermont County: I heard that it made more sense to wait to claim Social Security, but does it make sense to claim early? I'm 62 years old and I'm trying to find out if I should start claiming now.

Reply: Deciding when to take Social Security is a very personal financial decision and depends on many factors, including (but not limited to) your life expectancy, other sources of income, and whether you are married ( or if you are divorced). And yes, although it usually makes sense to claim your benefits once you have reached the age of full retirement (FRA) or later (your monthly check will be increased by eight percent each year after age 70) There are scenarios in which it is more profitable to claim age 62 (or earlier in some cases).

• You are in poor health: If you have recently been diagnosed with a terminal illness, a chronic illness, or have a family history of not more than 80 years old, you can maximize your lifetime earnings.

• You do not have other sources of income: if you can not work anymore and social security is your only means of retirement, consider claiming sooner. If you change your mind within 12 months of applying, you can request that your application be withdrawn (even if you have to repay all benefits received so far).

• Withdrawals from your wallet would be unsustainable. If you have investments and savings, look at how much you will retire each year to maintain your lifestyle. If you discover that you are withdrawing too much money, thus increasing your chances of surviving the money you have saved, it may be wise to start claiming sooner.

• Your spouse earns more: If you are married, it may be more cautious than the spouse with the highest income expected to claim for his or her greatest benefit to continue to increase. Then, if you are the spouse with the lowest income, you can ask your household to have future income.

• You are widowed: If you qualify for a Social Security survivor benefit, you can start receiving a reduced benefit as early as age 60.

The Simply Money Point: Remember that when you claim social security before your FRA, you will see a reduction in your monthly check. However, in some cases it may be wise to request early repayment. We advocate working with a trusted financial advisor, such as a CERTIFIED FINANCIAL PLANNER or a certified financial advisor, so that he can make recommendations based on your particular situation.

Charley of Bridgetown: My grandson has asked me to help pay for his university education by co-signing his student loans. I have the impression that I can not say no. What do you think about doing this?

Reply: We understood. You want to give your grandson all the possibilities and the best education possible. And your situation is not unique. More and more grandparents are being asked to shoulder some of the cost burden of colleges. According to the Office of Consumer Financial Protection (CFPB), people over the age of 60 are the fastest-growing segment of the population in the student loan market.

But be aware that when you co-sign a private student loan (federal loans do not require co-signer), you're not just "backing up" if your grandson can not afford it. No. In reality, this loan becomes your loan. You and your grandson are also obliged to repay the debt. If he can not, the lender will come to you and expect a payment. Is it something that you are financially prepared to do?

In addition, this loan will be part of your credit report. Any other lender or creditor will see you as borrower of the total loan amount. This could make it more difficult to underwrite a loan, obtaining a new credit card or refinancing your mortgage. In addition, if your grandson misses payments, this "delinquency" will also appear on your credit report.

Here's what you want: When you sign a loan, you take all the risks and receive very few rewards (if any). We do not want to see this ruin your relationship with your grandson and / or your own financial situation. So, instead, talk to him and determine if you can support his academic dreams in any other way, for example by helping him to exhaust all his loan and scholarship options. federal studies. Websites such as MyScholly.com, Fastweb.com and Scholarships.com are great tools for finding available scholarships.

Answers are provided for informational purposes only and individuals should determine whether a general recommendation in these responses is appropriate to their particular circumstances based on investment objectives, financial situation and needs. To the extent that a reader has questions regarding the applicability of a specific issue discussed above to his personal circumstances, he is encouraged to consult the professional advisor of his choice, including a tax advisor and / or or a lawyer. . Nathan Bachrach and Ed Finke and their team provide financial planning services through Simply Money Advisors, a registered SEC investment advisor. Call (513) 469-7500 or send an email to [email protected].

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