Raskin Planning Group125 Summer St., Ste 1400Boston, MA 02110617-728-7433(f) 617.728.7462peter.raskin@lfg.comwww.raskinplanning.com

August 2017Test Your Investing IQ

Kickstart Your College Fund with a 529 Plan

How do the economic milestones of youngadults today compare with prior generations?

Chart: Young Adult Milestones, 1975 vs. 2016

Raskin Planning Newsletter

Working in Retirement: What You Need to Know

See disclaimer on final page

Planning on working duringretirement? If so, you're notalone. Recent studies haveconsistently shown that amajority of retirees plan towork at least some period oftime during their retirement

years. Here are some points to consider.

Why work during retirement?Obviously, if you work during retirement, you'llbe earning money and relying less on yourretirement savings, leaving more to grow for thefuture. You may also have access to affordablehealth care, as more and more employers offerthis important benefit to part-time employees.But there are also non-economic reasons forworking during retirement. Many retirees workfor personal fulfillment, to stay mentally andphysically active, to enjoy the social benefits ofworking, and to try their hand at somethingnew.

What about my Social Security benefit?Working may enable you to postpone claimingSocial Security until a later date. In general, thelater you begin receiving benefit payments, thegreater your benefit will be. Whether delayingthe start of Social Security benefits is the rightdecision for you depends on your personalcircumstances.

One factor to consider is whether you want tocontinue working after you start receiving SocialSecurity retirement benefits, because yourearnings may affect the amount of your benefitpayment.

If you've reached full retirement age (66 to 67,depending on when you were born), you don'tneed to worry about this — you can earn asmuch as you want without affecting your SocialSecurity benefit. But if you haven't yet reachedfull retirement age, $1 in benefits will bewithheld for every $2 you earn over the annualearnings limit ($16,920 in 2017). A higherearnings limit applies in the year you reach fullretirement age. If you earn more than thishigher limit ($44,880 in 2017), $1 in benefits willbe withheld for every $3 you earn over thatamount, until the month you reach fullretirement age — then you'll get your full benefit

no matter how much you earn. Yet anotherspecial rule applies in your first year of SocialSecurity retirement — you'll get your full benefitfor any month you earn less than one-twelfth ofthe annual earnings limit ($1,410 in 2017) andyou don't perform substantial services inself-employment.

Not all income reduces your Social Securitybenefit. In general, Social Security only takesinto account wages you've earned as anemployee, net earnings from self-employment,and other types of work-related income such asbonuses, commissions, and fees. Pensions,annuities, IRA payments, and investmentincome won't reduce your benefit.

Even if some of your benefits are withheld priorto your full retirement age, you'll generallyreceive a higher monthly benefit starting at yourfull retirement age, because the Social SecurityAdministration (SSA) will recalculate yourbenefit and give you credit for amounts thatwere withheld. If you continue to work, any newearnings may also increase your monthlybenefit. The SSA reviews your earnings recordevery year to see if you had additional earningsthat would increase your benefit.

One last important point to consider. In general,your Social Security benefit won't be subject tofederal income tax if that's the only income youreceive during the year. But if you work duringretirement (or you receive any other taxableincome or tax-exempt interest), a portion ofyour benefit may become taxable. IRSPublication 915 has a worksheet that can helpyou determine whether any part of your SocialSecurity benefit is subject to income tax.

How will working affect my pension?Some employers have adopted "phasedretirement" programs that allow you to ease intoretirement by working fewer hours, while alsoallowing you to receive all or part of yourpension benefit. However, other employersrequire that you fully retire before you canreceive your pension. And some plans evenrequire that your pension benefit be suspendedif you retire and then return to work for thesame employer, even part-time. Check withyour plan administrator.

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Test Your Investing IQHow much do you know about market basics?Put your investing IQ to the test with this quizon stocks, bonds, and mutual funds.

Questions1. What does it mean to buy stock in acompany?

a. The investor loans money to the company

b. The investor becomes a part owner of thecompany

c. The investor is liable for the company's debts

2. Which of the following statements aboutstock indexes is correct?

a. A stock index is an indicator of stock pricemovements

b. There are many different types of stockindexes

c. They can be used as benchmarks tocompare the performance of an individualinvestment to a group of its peers

d. All of the above

3. What is a bond?

a. An equity security

b. A nonnegotiable note

c. A debt investment in which an investor loansmoney to an entity

4. What kind of bond pays no periodicinterest?

a. Zero-coupon

b. Floating-rate

c. Tax-exempt

5. What is a mutual fund?

a. A portfolio of securities assembled by aninvestment company

b. An investment technique of buying a fixeddollar amount of a particular investmentregularly

c. A legal document that provides details aboutan investment

6. What is the difference between mutualfund share classes?

a. The investment advisers responsible formanaging each class

b. The investments each class makes

c. The fees and expenses charged by eachfund class

Answers1. b. The investor becomes a part owner ofthe company. Stocks are often referred to asequities because they represent an ownershipposition. As part owners, shareholders assumeboth the potential financial risks and benefits ofthis position, but without the responsibility ofrunning the company.

2. d. All of the above. A stock index measuresand reports value changes in representativestock groupings. A broad-based stock indexrepresents a diverse cross-section of stocksand reflects movements in the market as awhole. The Dow Jones Industrial Average,NASDAQ Composite Index, and S&P 500 arethree of the most widely used U.S. stockindexes. There are also more narrowly focusedindexes that track stocks in a particular industryor market segment.

3. c. A debt investment in which an investorloans money to an entity. Unlikeshareholders, bondholders do not haveownership rights in a company. Instead,investors who buy bonds are lending theirmoney to the issuer (such as a municipality or acorporation) and thus become the issuer'screditors.

4. a. Zero-coupon. Unlike many types ofbonds, zero-coupon bonds pay no periodicinterest. They are purchased at a discount,meaning the purchase price is lower than theface value. When the bond matures, thedifference between the purchase price and thatface value is the investment's return.

5. a. A portfolio of securities assembled byan investment company. A mutual fund is apooled investment that may combine dozens tohundreds of stocks, bonds, and other securitiesinto one portfolio shared by many investors.

6. c. The fees and expenses charged byeach fund class. A mutual fund may offervarious share classes to investors, mostcommonly A, B, and C. This gives an investorthe opportunity to select a share class bestsuited to his or her investment goals.

Mutual funds are sold by prospectus. Pleaseconsider the investment objectives, risks,charges, and expenses carefully beforeinvesting. The prospectus, which contains thisand other information about the investmentcompany, can be obtained from your financialprofessional. Be sure to read the prospectuscarefully before deciding whether to invest.

All investing involves risk,including the possible loss ofprincipal, and there can be noassurance that any investmentstrategy will be successful.Generally, the more potentialfor growth offered by aninvestment, the more risk itcarries.

The performance of anunmanaged index is notindicative of the performance ofany specific security.Individuals cannot investdirectly in such an index.

Because zero-coupon bondsdo not pay interest untilmaturity, their prices tend to bemore volatile than bonds thatpay interest regularly. Interestincome is subject to ordinaryincome tax each year, eventhough the investor does notreceive any income payments.

The return and principal valueof stocks, bonds, and mutualfunds may fluctuate withmarket conditions. Shares,when sold, and bondsredeemed prior to maturity maybe worth more or less thantheir original cost.

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Kickstart Your College Fund with a 529 PlanIf you're looking to save money for college, oneoption to consider is a 529 college savingsplan. Created over 20 years ago and namedafter the section of the tax code that governsthem, 529 plans offer a unique combination offeatures that have made them the 401(k)s ofthe college savings world.

How do 529 plans work?529 college savings plans are individualinvestment-type accounts specifically made forcollege savings. People at all income levels areeligible. Plans are offered by individual states(you can join any state's plan) but managed byfinancial institutions designated by each state.

To open an account, you select a plan and fillout an application, where you will name anaccount owner and beneficiary (there can beonly one of each), choose your investmentoptions, and set up any automatic contributions.You are then ready to go. It's common to openan account with your own state's 529 plan, butthere may be reasons to consider anotherstate's plan; for example, the reputation of thefinancial institution managing the plan, theplan's investment options, historical investmentperformance, fees, customer service, websiteusability, and so on.

A plan's investment options typically consist ofportfolios of various mutual funds that vary fromconservative to aggressive in their level of risk.Depending on the market performance of theoptions you've chosen, your account will eithergain or lose money, and there is the risk thatthe investments will not perform well enough tocover college costs as anticipated.

BenefitsSo why bother going to the trouble of opening a529 account when you could choose your ownmutual funds (or other investments) in anon-529 account?

Federal tax benefits: Contributions to a 529plan accumulate tax deferred, which means noincome tax is due on any capital gains ordividends earned along the way. Later,earnings are completely tax-free when awithdrawal is used to pay the beneficiary'scollege expenses — a benefit that could besignificant depending on how your investmentoptions perform. States generally follow thisfederal tax treatment and may offer an incometax deduction for contributions. That's why it'simportant to know what 529 tax benefits yourstate offers and whether those benefits arecontingent on joining the in-state 529 plan.

Contributions: You can contribute a lot to a 529plan — lifetime contribution limits are typically$300,000 and up. Compare this to the small

$2,000 annual limit allowed by CoverdellEducation Savings Accounts. In addition, 529plans offer a unique lump-sum gifting featurethat some may find particularly compelling:Individuals can contribute a lump-sum amountof up to five years' worth of the $14,000 annualgift tax exclusion — a total of $70,000 in 2017 —and avoid gift tax if they make a special electionon their tax return and avoid making any othergifts to that beneficiary during the five-yearperiod. Married couples, such as grandparentswho want to contribute to their grandchild'scollege fund, can make a joint lump-sum gift upto $140,000 that is tax-free.

College account on autopilot: For collegesavers who are too busy or inexperienced tochoose their own investments or change theirasset allocation over time, a 529 collegesavings plan offers professional moneymanagement. And by having a designatedaccount for college savings, you segregatethose funds and possibly lessen the temptationto dip into them for a non-college purpose — ascenario that may be more likely if you areusing a general savings account to save forcollege. Finally, by setting up automaticmonthly contributions to your 529 account, youcan put your savings effort on autopilot.

TradeoffsNon-college use of funds: The federal taxbenefits of 529 plans can be great if you usethe funds for college. If you don't, then theearnings portion of any withdrawal is subject tofederal income tax at your rate and a 10%federal penalty.

Changing investment options: With a 529 plan,you're limited to the investment options offeredby the plan. Plans generally offer a range ofstatic and age-based portfolios with differentlevels of risk, fees, and investment goals.(Age-based portfolios generally have a "glidepath" where the underlying investmentsautomatically become more conservative as thebeneficiary approaches college age.) If you'reunhappy with the performance of the optionsyou've chosen, under federal law you canchange the investment options for your futurecontributions at any time, but you can changethe options for your existing contributions onlytwice per calendar year. This rule can make itdifficult to respond to changing marketconditions. However, also under federal law,once every 12 months you can roll over yourexisting 529 plan account to a new 529 planwithout having to change the beneficiary, whichgives you another option if you're unhappy withyour current plan's investment options orreturns.

Assets hit $266 billion mark

As of March 2017, assets in529 college savings plansreached $266 billion, spreadover 12.2 million accounts.

Source: Strategic Insight, 1Q2017 529 Data Highlights

Before investing in a 529plan, you should considerthe investment objectives,risks, charges, andexpenses, which areavailable in the issuer'sofficial statement andshould be read carefully.The official disclosurestatements and applicableprospectuses — whichcontain this and otherinformation about theinvestment options,underlying investments, andinvestment company — canbe obtained by contactingyour financial professional.Also consider whether yourstate offers a 529 plan thatprovides residents withfavorable state tax benefits.As with other investments,there are generally fees andexpenses associated with a529 plan.

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Raskin Planning Group125 Summer St., Ste 1400Boston, MA 02110617-728-7433(f) 617.728.7462peter.raskin@lfg.comwww.raskinplanning.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017

Peter Raskin is a registeredrepresentative of Lincoln FinancialAdvisors Corp.

Securities offered through LincolnFinancial Advisors Corp., abroker-dealer (Member SIPC).Investment advisory servicesoffered through SagemarkConsulting, a division of LincolnFinancial Advisors Corp., aregistered investment advisor.Insurance offered through Lincolnaffiliates and other fine companies.Lincoln Financial Group is themarketing name for LincolnNational Corporation and itsaffiliates. Lincoln FinancialAdvisors Corp. does not providelegal or tax advice.CRN-1123444-021215

Raskin Planning Group is not anaffiliate of Lincoln FinancialAdvisors Corp.

Chart: Young Adult Milestones, 1975 vs. 2016The following pie charts compare four common milestones of adulthood — getting married, havingchildren, working, and living independently — achieved by young adults ages 25 to 34 in 1975 and2016. The data indicates that the experiences of young people today are more diverse, withfewer accomplishing all four milestones in young adulthood. Instead, many young adults aredelaying or forgoing some experiences (marrying and having children) in favor of others (livingindependently and gaining work experience).

Source: U.S. Census Bureau, "The Changing Economics and Demographics of Young Adulthood:1975-2016," April 2017

How do the economic milestones of young adults todaycompare with prior generations?If you're the parent of a youngadult who is still living athome, you might be wonderingwhether this situation is

commonplace. According to a recent U.S.Census Bureau study, it is: One in three youngpeople (ages 18 to 34) lived in their parents'home in 2015.

The Census Bureau study examines how theeconomic and demographic characteristics ofyoung adults have changed from 1975 to 2016.In 1975, for example, less than one-fourth ofyoung adults (ages 25 to 34) had a collegedegree. Young adults in 2016 are bettereducated — more than one-third hold a collegedegree (or higher) — but student loan debt hasmade it more difficult for them to obtainfinancial stability, let alone establish homes oftheir own in their 20s.

More young adults in 2016 had full-time jobsthan their counterparts did in 1975. Inparticular, young women ages 25 to 34 areexperiencing economic gains, with more thantwo-thirds in the workforce compared with less

than half in 1975. Young women today are alsoearning more money than they did in 1975 —their median incomes have grown from nearly$23,000 in 1975 to more than $29,000 in 2016(in 2015 dollars).

Despite the educational and economicadvances that young adults have made overthe last 40 years, many are postponingtraditional adult milestones. In fact, a majority ofyoung adults are not living independently oftheir parents. Of the 8.4 million 25- to34-year-olds still living at home, one in four arenot attending school or working. It's important tonote, though, that this could be because theyare caring for a family member or have healthissues or a disability.

Compared to 40 years ago, the timing andaccomplishment of milestones on the path toadulthood are much more diverse and complextoday. To view the full report, visit census.gov.

Source: U.S. Census Bureau, "The ChangingEconomics and Demographics of Young Adulthood:1975-2016," April 2017

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