Working While Retired: A Smart Strategy for Social Security Recipients
Understanding the Fundamentals of Social Security Benefits
The Social Security system, funded by dedicated taxes throughout your career, provides a safety net for retirees. Your accumulated contributions determine your eligibility and the eventual amount of your monthly payments. Generally, you need a certain number of credits, earned over a minimum of ten years of employment, to qualify. The more you earn during your working life, the higher your prospective benefits will be. While early claiming at age 62 is an option, it results in a permanent reduction of your monthly payment.
The Impact of Full Retirement Age on Your Benefits
For those who choose to continue working while receiving Social Security, understanding your Full Retirement Age (FRA) is crucial. Before reaching your FRA, the Social Security Administration (SSA) may temporarily reduce your benefits based on your earnings. For instance, in 2025, if you are below your FRA for the entire year, $1 in benefits will be withheld for every $2 earned above an annual threshold of $23,400. However, this penalty becomes less severe if you reach your FRA during the year, with a reduced withholding rate of $1 for every $3 earned up to $62,160 until your birthday month. Upon reaching your FRA, your earnings no longer impact your benefit amount.
Defining What Constitutes 'Earnings' for Social Security Purposes
It's important to differentiate between earned income and other sources of money when considering Social Security benefit calculations. Wages, salaries, commissions, bonuses, and net earnings from self-employment are all categorized as "earned income." This represents any compensation received for services rendered. Conversely, income from pensions, unemployment benefits, IRA withdrawals, or investment returns like interest, dividends, or capital gains are not considered earned income and therefore do not count towards the annual earnings limits.
Recouping Withheld Social Security Benefits
Any Social Security benefits withheld due to exceeding earnings limits before your Full Retirement Age are not permanently lost. The SSA implements a recalculation process upon you reaching your FRA, which effectively restores these withheld amounts by increasing your future monthly payments. This adjustment is designed to distribute the previously withheld funds over your remaining life expectancy, ensuring you eventually receive the full amount you are entitled to.
Long-Term Advantages of Continued Employment on Social Security
Continuing to work or re-entering the workforce during retirement offers several long-term advantages beyond immediate financial relief. Your ongoing Social Security tax contributions can lead to an increase in your retirement benefits. The SSA annually reviews the earnings records of all beneficiaries. If your current earnings surpass any of your lower-earning years in your past, your benefit amount may be re-calculated, potentially leading to a higher monthly payment. This is particularly beneficial as Social Security benefits are based on your 35 highest earning years, adjusted for inflation. Furthermore, for those who haven't accumulated sufficient credits for eligibility, working in later years can help fulfill these requirements.
The Ultimate Takeaway for Working Retirees
Combining work with Social Security retirement benefits can be a beneficial financial strategy rather than a disadvantage. The supplementary income provides immediate financial support, and any benefits initially withheld due to earnings are eventually returned through increased future payments. Moreover, continued employment can lead to an upward adjustment of your Social Security benefits due to ongoing contributions and the recalculation based on higher earning years. Therefore, if full retirement isn't yet an option, embrace continued work knowing it can positively impact your financial future.
Securing advantageous yields on Certificates of Deposit remains a smart financial move. As of today, July 10, 2025, a range of CD products offer compelling Annual Percentage Yields, with some exceeding 4.50%. Savers can currently find top rates like 4.60% for specific short-term options, while longer-term CDs, spanning up to five years, provide a hedge against potential future rate adjustments by the Federal Reserve. This period presents a unique opportunity to lock in substantial returns, surpassing historical averages, even as the market adapts to evolving monetary policies.
The highest CD rate in the nation stands at 4.60%, available through Northern Bank Direct for a 6-month term and Genisys Credit Union for a 19-month term. Following closely, NASA Federal Credit Union offers a 9-month CD at 4.59% APY. For those considering a one-year commitment, the maximum rate remains at 4.50%, offered by both Abound Credit Union for 10 months and Genisys Credit Union for 13 months. Pelican State Credit Union provides a competitive alternative with a 12-month certificate yielding 4.49%. In total, 15 different CD products offer at least 4.50%, with terms ranging from half a year to a year and nine months, including PenAir Credit Union's 21-month certificate that guarantees this rate until April 2027.
For investors seeking extended stability, rates of 4.28% to 4.40% are accessible for guarantees spanning three to five years, with some extending through mid-2030. Specifically, Lafayette Federal Credit Union offers a 4.28% APY for 3-year and 5-year terms, while NASA Federal Credit Union provides 4.40% for a 49-month term. Opting for these longer-duration CDs can be a prudent strategy, particularly given the possibility of Federal Reserve interest rate reductions later in 2025 and 2026. The central bank's previous rate cuts demonstrate a willingness to adjust its benchmark, which directly influences consumer deposit rates. By locking in a CD rate now, savers can safeguard their returns against any downward shifts in the broader interest rate landscape.
While current CD rates may not reach the peak of 6% seen in October 2023, they still represent historically strong returns. Comparing today's 4.60% leading rate to the mere 0.50% to 1.70% available in early 2022, prior to the Federal Reserve's aggressive rate-hiking cycle, highlights the continued attractiveness of these products. Furthermore, it's worth noting that jumbo CDs, requiring larger initial deposits, sometimes offer superior rates, though not universally. Currently, jumbo CDs surpass standard rates in only two terms: Hughes Federal Credit Union offers 4.34% for a 3-year jumbo CD compared to the 4.28% standard, and both GTE Financial and Lafayette Federal Credit Union provide 4.33% for 5-year jumbo CDs against the 4.28% standard. This indicates the importance of comparing both standard and jumbo offerings to identify the most favorable terms for your investment.
All deposits in federally insured institutions, whether FDIC-backed banks or NCUA-insured credit unions, benefit from equal protection up to $250,000 per person per institution. This federal safeguard ensures the security of your funds, irrespective of the institution's size. By diligent comparison and selection, individuals can maximize their returns and ensure their financial assets are working effectively for them.
Unlocking Value: Teads' Strategic Evolution and Future Trajectory
Teads: A New Chapter in Digital Advertising
The digital advertising sector recently witnessed a transformative event with Outbrain's acquisition of Teads, which culminated in February. This strategic move, valued at $900 million, has led to the combined entity rebranding as Teads Holding Co. This consolidation marks a pivotal moment, aiming to leverage combined strengths and market presence in the highly competitive ad-tech industry.
Financial Performance and Investment Appeal
Despite its recent acquisition price tag, Teads Holding Co. currently commands a market capitalization of $255 million. The company has provided an adjusted EBITDA projection of $180 million for the current fiscal year. This figure, significantly higher than its market valuation, suggests a potentially undervalued asset, piquing the interest of discerning investors in the ad technology space.
Synergy Potential and Future Growth Projections
Looking ahead, Teads anticipates considerable gains from the integration of the two companies. Forecasts indicate that adjusted EBITDA could climb to $230 million in the upcoming year, primarily driven by the realization of cost efficiencies and revenue synergies. These projected improvements highlight the strategic rationale behind the merger, promising enhanced operational performance and financial strength.
Addressing Debt and Mitigating Risks
A notable aspect of Teads' financial structure is its substantial net debt, totaling $481 million. While this figure might raise eyebrows, the long-term maturity of this debt, set for 2030, offers a comfortable repayment horizon. Furthermore, the company's expected robust free cash flow generation is poised to significantly alleviate concerns regarding its debt load, underpinning a more stable financial outlook.
Investment Conclusion: A Compelling Opportunity
Despite inherent risks, a thorough analysis of Teads Holding Co.'s financial standing and strategic positioning reveals a compelling investment case. The significant disparity between its current market valuation and projected earnings, coupled with manageable long-term debt and strong cash flow, indicates an attractive opportunity for investors. Consequently, a positive rating is warranted, suggesting the stock's potential for appreciation.