November 2017
Busting Some Myths About Social Security
More and more Baby Boomers are headed toward retirement, which means they face a host of decisions about when and how to retire. Here are some “myths” about Social Security to consider:

Myth #1: Social Security is running out of money. While Social Security has its challenges, the truth is that the funds have been running a surplus every year since 1982. If no changes are made to the system, payment checks will be reduced by about 25% by 2034. While that isn’t good news, it isn’t as dire as the zero balance that some people fear.

Myth #2: Everyone contributes equally to Social Security. Everyone's income does face the same tax rate for Social Security -- but it's only up to a certain capped annual earnings amount. The 2018 Social Security wage base amount is $128,700.
Myth #3: The money you pay into the system is the money you receive from it later. Contrary to what some people think, we don’t all have our own accounts set up for us. The money is collected from those currently working, pooled and then paid to retirees collecting benefits. With life spans increasing, people are collecting benefits longer, and fewer people are paying into the system, changing the contributors-to-beneficiaries ratio from 5:1 in 1960 to an expected 2:1 by 2035. According to the Urban Institute, the average retiree will receive benefits equaling between 1/3 and more than two times the amount of Social Security and Medicare taxes they paid in over their working years.

Myth #4: T he Social Security benefits you receive are based on your last 10 years of income. Benefits are based on the income earned in your 35 highest-earning working years (adjusted for inflation). If you worked less than 35 years, the formula adds zeroes, reducing the benefit. If you work for more than 35 years, your lowest-earning years are dropped, so working a little longer can boost your benefits.
Myth #5: Social Security is designed to replace most of your pre-retirement income. The average monthly retirement benefit was recently $1,364, which amounts to $16,368 per year. The maximum monthly Social Security benefit for those retiring at their full retirement age was recently $2,687, about $32,000 per year. The Social Security Administration estimates that benefits for those with average earnings will likely replace about 40% of pre-retirement earnings.
These are just some of the myths that surround the Social Security program. For more information and to learn more about your own benefits, visit the Social Security Administration website. We are always happy to talk with you about how these benefits can be part of your total retirement planning—please call us at 630-653-1616.

Photos by Lotte Meijer a nd Aaron Burden on Unsplash
Good News for Small Business
The Illinois State Senate unanimously passed bill SB 867 "Lowering LLC Fees" this month and the bill is on its way to be signed into law. The bill lowers the cost of opening a business as a Limited Liability Corporation (LLC) in Illinois from $500 to $150, and drops the annual report cost from $250 to $75. The bill also dramatically drops fees on dozens of other state filings.
For more information about this new fee schedule, contact the Small Business Advocacy Council or give us a call at 630-653-1616.

Photo: www.sbacil.org
Our People Make a Difference
Staff Spotlight: Focus on Gina Kelly
Gina Kelly is a key part of the accounting services staff here at Mathieson, Moyski, Austin & Co., providing her expertise in bookkeeping, QuickBooks and other accounting and financial services support. As someone who is "behind the scenes," Gina plays an important role in serving our clients. She recently shared with us a little bit about her background.
How long have you worked at MMA & Co.? 
I've been through 13 tax seasons so far with MMA & Co. I started on a part-time basis and now am considered full-time.

What was your first paid job? 
My first paid job was at the Original Cookie Company at the mall.

What do you like most about your current job?
I enjoy the variety of work that I do and the clients that I work closely with. The firm has also provided flexibility with my schedule which has been great with raising a family.

What do you think people don't know about accounting firms that you would like for them to know?
We offer so much more to our clients than just preparing their tax returns, from monthly bookkeeping to financial planning and wealth management and everything in between.

What do you like to do in your spare time?
Over the years you would find me attending my kids sporting activities--baseball, basketball, softball and tennis. These days I attend my son's college baseball games all over the Midwest. I also enjoy gardening and home improvement projects.
Supporting Education Through Sponsorships
For the second year MMA & Co. sponsored a Meat Raffle for the Fox Valley Association of General Contractors , held November 12 at Elgin Public House. The event was held to raise money for the FVAGC's Education Foundation, a tuition assistance program for college students seeking a degree in construction. More than 80 people attended for the chance to win packages from Butcher on the Block, to network with colleagues and friends and to raise money for the Education Foundation.

(Photo, L to R: Cindy Gunderson, Brian Hagene, CPA, and Laura O'Malley of MMA & Co., joined by friend of the firm Joe Schuberth, celebrating our sponsorship
Pumpkin, Squash. Happy Thanksgiving Day Background. Autumn Thanksgiving Pumpkins over wooden background with garland still-life. Beautiful Holiday Autumn festival concept scene Fall, Harvest.
We hope you had an opportunity to share Thanksgiving with family and friends and you've recovered from all the food and fun of the day. At MMA & Co. we are thankful for all our blessings, including the chance to serve you, our clients, and support our colleagues and friends. As we hurtle headlong into the holiday season, we are aware of those in need, and next month our team will take some time away from day-to-day business to volunteer at the Northern Illinois Food Bank. We look forward to being of service.
Mike Moyski, CPA
Ron Austin, CPA
Brett Mathieson, CPA
Brian Eisenmenger, CPA
John Straus, CPA
Jim Mathieson, CPA, Of Counsel

(630) 653-1616