Should You Claim Social Security at 70? - The Motley Fool

The tricky thing about filing for Social Security is that you're not limited to a single age in doing so. You're allowed to claim benefits as early as age 62, and while you technically don't have to file by 70, there's no financial reason to wait past that point. As such, 70 is generally considered the latest age to take benefits -- but it is the right time for you?

Why file for Social Security at 70?

Your monthly Social Security benefits are calculated based on how much you earned during your highest-paid 35 years of wages, and you're entitled to your full monthly benefit once you reach full retirement age. That age, depending on your year of birth, is either 66, 67, or somewhere in between. Now as mentioned earlier, you're allowed to file for benefits sooner, but for each year you claim Social Security ahead of full retirement age, your benefits will be reduced, and in most cases, on a permanent, lifelong basis.

IMAGE SOURCE: GETTY IMAGES.

On the other hand, you also get the option to delay benefits past full retirement age, and boost them by 8% for each year you hold off. This incentive runs out at age 70, but if you're looking at a full retirement age of 67 and you file at 70 instead, you get a 24% increase in benefits that remains in effect for the rest of your life.

Clearly, that's a pretty good incentive to file for Social Security at 70. But in some cases, waiting that long doesn't make sense.

When 70 is the wrong age to file

Though claiming Social Security at 70 will increase your monthly benefits, it won't necessarily increase your lifetime benefit -- meaning, the total you collect from Social Security all-in. The longer you end up living, the more filing at 70 makes sense. And while you can't predict your own life expectancy, you can use your health nearing retirement as a guidance point. If your health is terrible, you're generally better off filing for Social Security early or on time. But if your health is great, and you have reason to believe you'll live a long life, then filing at 70 could pay off.

Imagine you're entitled to a monthly benefit of $1,500 at age 67. Waiting until 70 to claim Social Security will raise each monthly payment you get to $1,860, but you'll also collect 36 fewer payments in the process. At that point, you'll need to live until age 82-1/2 to break even -- meaning, to come away with the same lifetime total regardless of whether you file at 67 versus 70 -- which means that if you don't expect to live that long, filing at 70 is a bad idea.

Another reason you might claim Social Security before age 70? You've lost your job, can't find a new one, and don't have enough savings to pay your bills. At that point, you're better off taking benefits sooner than racking up dangerous credit card debt to pay your living expenses.

Finally, you might take benefits earlier than age 70 if you're secure financially, but simply want the money to travel or enjoy retirement when you're on the younger side. For example, if you have more than enough savings come age 65 to pay your senior living expenses for 30 years or longer, but you want your Social Security income to fund a number of expensive trips, then why not go for it? You've earned it, and you're apt to have more energy for that sort of thing at 65 than at 70.

The fact that you get the choice of when to file for Social Security is a good thing in theory. Still, it's not an easy decision. If you're thinking of claiming benefits at 70, take your health into account, and only wait that long if you believe you have a decent lifespan ahead of you. Otherwise, it may be worth collecting a lower monthly benefit, but increasing your chances of walking away with a higher lifetime total from Social Security.

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2019-08-04 12:49:00Z
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10 Social Security Figures Every Worker Should Know - The Motley Fool

Social Security is our nation's most successful social program, at least in the words of presidential hopeful, Sen. Bernie Sanders (I-Vt.) -- and the data certainly backs up this statement. After all, more than 63 million people each month, 70% of which are retired workers, are receiving a monthly benefit check.

But as you may know, it's also a program that most workers generally misunderstand. Just take a gander at any Social Security survey for confirmation. If you're currently in the workforce and expect to receive a Social Security benefit when you retire, here are 10 figures you need to know.

Image source: Getty Images.

1. $1 trillion in revenue per year

First of all, you should understand just how massive the Social Security program has become. Last year, Social Security generated $1 trillion in annual revenue for the first time in its history, with the bulk of this income ($885 billion) deriving from the 12.4% payroll tax on earned income. The remainder came from the taxation of Social Security benefits (which I'll touch on a bit later on), and interest income earned on the program's nearly $2.9 trillion in asset reserves. These asset reserves are invested in special-issue federal bonds that earn interest.

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2. 22.1 million people kept out of poverty

Social Security has proven to be an incredibly effective tool at keeping seniors, as well as the long-term disabled, out of poverty. An analysis from the Center on Budget and Policy Priorities found that 22.1 million people were being kept out of poverty each year solely as a result of their Social Security payout, including over 15 million retired workers. Without a monthly Social Security payout, the elderly poverty rate would more than quadruple to over 40%.

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3. Your full retirement age (probably 67)

It's also imperative that workers know their full retirement age (FRA). Your full retirement age is the age at which the Social Security Administration deems you eligible to receive 100% of your monthly benefit, as determined by your birth year. Claiming benefits before your FRA means accepting a permanent reduction to your monthly payout, whereas claiming after your FRA can actually increase your monthly benefit above 100%. Most future retirees will have an FRA of 67 years, although you can find your unique full retirement age with this handy Social Security Administration table.

Image source: Getty Images.

4. $1,471 average monthly benefit

You should understand that Social Security isn't going to have you rolling in the dough. The average retired worker was bringing home $1,470.83 a month, as of June 2019. Although this works out to more than the federal poverty level on an annual basis, the grand total for a full year is "only" $17,650, when rounded. As you'll see in the next point, it's not designed to be a primary source of income.

5. 40% is the expected wage/salary replacement level

According to the Social Security Administration, your retired worker payout is designed to replace about 40% of your working wages or salary. Although this percentage could be a bit higher for lower lifetime income workers, and lower for more well-to-do workers, the point is that Social Security benefits aren't expected to be more than a secondary source of income. In other words, Social Security income doesn't take the place of your need to save and invest for the future.

6. 62% of retired workers lean on their payout for at least half of their income

As you probably guessed, few seniors actually follow the guideline on replacement wages. The Social Security Administration found that 62% of retired workers lean on the program to supply at least half of their monthly income, with 34% reliant on Social Security for virtually all of their income (90%-plus). As you'll see in an upcoming figure, overreliance on Social Security for your monthly income can be dangerous.

Image source: Getty Images.

7. 4% of retired workers claim Social Security at age 70

Retired worker benefits can be claimed at age 62, or any point thereafter, with benefits growing by approximately 8% per year for each year that an individual holds off on taking their payout, up until age 70. Despite this dangling carrot of an incentive, a majority of retired workers claim benefits early (at or before age 64), thereby permanently reducing their monthly payout to less than 100%. Meanwhile, only 4% of retired workers wait as long as possible (age 70) to maximize their monthly payout. Interestingly enough, a recent study found age 70 to be the single best age to take Social Security benefits, albeit there's still no one-size-fits-all claiming age for everyone.

8. About half of all senior households pay federal tax on their benefits

Ready or not, there's a pretty good chance you'll be paying federal tax on a portion of your Social Security benefits. If your modified adjusted gross income (MAGI), plus one-half of your Social Security benefits, exceeds $25,000, or $32,000 if you're a couple filing jointly, you can be taxed on up to half of your benefits at the federal ordinary income rate. Further, using the same MAGI plus one-half benefits formula above, if you're above $34,000 as a single filer, or $44,000 as a couple filing jointly, up to 85% of you benefits could be subject to federal taxation. Today, around half of all senior households owe tax on their benefits, according to The Senior Citizens League.

9. 13 states tax Social Security benefits

Here's the "but wait, there's more" moment. In addition to federal taxation, 13 states also tax Social Security benefits to some varied degree. Quite a few offer very generous income exemption levels, such as Missouri, where a single filer and couple can earn up to $85,000 and $100,000, respectively, before facing any state-level tax on their Social Security benefits. Even states that have mirrored the federal tax schedule are becoming a bit tax-friendlier. Nevertheless, if you live in one of these 13 states, you could be hit with double taxation on your Social Security payout.

Image source: Getty Images.

10. 2035 is when the program could exhaust its asset reserves

Lastly, as promised, being overly reliant on Social Security could come back to haunt you. The newest annual Social Security Board of Trustees report estimates that the program's nearly $2.9 trillion in asset reserves will be completely exhausted by 2035, with a number of demographic changes resulting in larger net-cash outflows with each passing year. Although Social Security won't go bankrupt -- its recurring sources of revenue prevent it from insolvency -- the trustees' report projects that, sans congressional involvement, benefits could be cut by up to 23% for retired workers in 2035 to ensure payouts through 2093. This is even more reason Social Security should be considered an ancillary, not primary, source of income during retirement.

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2019-08-04 10:06:00Z
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How Your Work History Determines How Much You Get From Social Security - The Motley Fool

Social Security is an entitlement program that provides seniors with income during retirement. But its benefits still have to be earned. This means you receive them only if you've paid into the system or get benefits on a spouse's work record. 

Your work history affects (1) whether you will be eligible for Social Security benefits at all and (2) the amount of benefits you receive. It's important to understand how your professional background affects the Social Security income you can expect to receive. This guide will explain everything you need to know about how your work history determines your payout from Social Security. 

Image source: Getty Images.

What does your work history have to do with your Social Security?

Your work history determines:

1. If you are eligible to receive Social Security benefits. You must earn a certain number of work credits over your lifetime to become eligible to receive retirement income from Social Security.
2. The amount of monthly Social Security benefits you're entitled to receive. Social Security considers your highest 35 years of earnings, after adjusting for inflation, to determine your monthly benefits.

Because Social Security benefits are calculated across 35 years, not working this full span may result in reduced benefits, or possibly no benefits at all. But if you work and pay into the Social Security system throughout your career, Social Security retirement benefits are designed to replace around 40% of your preretirement income. The Social Security benefits formula is progressive, though, so lower-earning workers receive a higher percentage of preretirement income than higher earners. 

Let's look a little more closely at how work history affects both eligibility for Social Security benefits and the amount you earn. 

How does your work history affect eligibility for Social Security benefits?

To become eligible for Social Security retirement income, you're typically required to earn 40 work credits or more. If you were born before 1929, you can qualify for Social Security with a smaller number of work credits.  

Prior to 1978, employers reported earnings every three months and you received a quarter of coverage -- which is equivalent to a work credit -- if you earned $50 or more in each three-month period. Now employers report earnings once per year, and you can earn up to four work credits annually. You need a certain amount of "covered earnings" to qualify for each work credit. Covered earnings are earnings on which you pay Social Security taxes, such as income from your salary or from self-employment. Extra income that you don't pay Social Security tax on, such as investment income, doesn't earn you any work credits. 

In 2019, you earn one work credit for each $1,360 in covered earnings. This means you must earn at least $5,440 in covered earnings to get the maximum four credits for the year. The amount of money you need to earn to get a work credit changes from year to year. The table below shows the amount you needed to earn for the past several years. You can also check the Social Security Administration website to find out earnings needed for a work credit for each year dating back to 1978. 

Year	Earnings Required for 1 Work Credit	Earnings Required for the Maximum 4 Work Credits
2014	$1,200	$4,800
2015	$1,220	$4,880
2016	$1,260	$5,040
2017	$1,300	$5,200
2018	$1,320	$5,280
2019	$1,360	$5,440

Data source: Social Security Administration.

Remember: You can earn a maximum of four work credits per year, and you need at least 40 work credits to qualify for Social Security retirement benefits. That means you must work at least 10 years to qualify based on your work history. If your earnings are below the minimum needed to earn all four work credits per year, you'd need to work more than 10 years. It is also possible to get survivors benefits, spousal benefits, or Social Security disability benefits with fewer than 40 work credits. 

Why does your work history affect your Social Security income? 

The Social Security benefit formula is calculated such that you receive benefits equal to a specific percentage of your inflation-adjusted average wage earned over the 35 years your income was the highest.

When calculating your benefits, the Social Security Administration:

1. Looks at your entire earnings record over your career and adjusts the wages each year to account for wage growth. Only wages up to a certain maximum wage level are considered in determining your annual income.
2. Adds up all the inflation-adjusted wages you earned in the 35 years when you earned the most.
3. Divides this number by 420 (the total number of months in a 35-year work period) to calculate your average monthly wage.

The resulting number is your Average Indexed Monthly Wages, or AIME. AIME isn't the amount you are paid in benefits, though -- it's the average earnings that the benefit formula uses to calculate your benefits. The Social Security Administration applies a formula to your AIME to determine your primary insurance amount (PIA). Under the Social Security benefits formula, your primary insurance amount is equal to: 

• 90% of your AIME up to a "bend point," which is a set level of income determined in the year you turned 62
• 32% of your AIME between the first bend point and a second bend point
• 15% of AIME above the second bend point

The percentage of AIME in this formula is always the same, but bend points change from year to year. The bend points help keep the Social Security formula somewhat progressive as they ensure lower earners receive a higher percentage of preretirement income in benefits. You can find the bend points for each year on the Social Security Administration's website.

Once your primary insurance amount is determined in the year you turn 62, which is the first year you become eligible for retirement income, it's adjusted upward each subsequent year to account for cost-of-living adjustments (COLAs). COLAs are Social Security raises that occur in years when the cost of living goes up. This gives you the primary insurance amount for the current year.

You receive benefits equal to your primary insurance amount if you retire at an age designated by law as your full retirement age (FRA). FRA is between ages 65 and 67 depending on your birth year. If you claim benefits prior to FRA, your PIA is reduced by a specific amount depending how early your benefits claim is. If you claim benefits after FRA, your PIA is increased by a specific amount depending on how long you delay. This increase stops after age 70, however, which is why many people recommend delaying retirement until 70, if possible. 

How does your work history determine how much you get from Social Security?

Based on the way the Social Security benefits formula works, here is how your work history could affect your Social Security retirement income. 

• Higher wages over your career means you'll receive a higher monthly benefit. Remember, benefits equal a percentage of average wages earned during your career. If your average wages are higher, benefits are higher as a result.  
• A short work history can reduce benefits. Working less than 35 years results in some years of $0 wages being factored in when your average wage is determined. This lowers your average wage and thus reduces the benefits you receive. A work history with exactly 35 years of work experience would mean every year you work is counted in determining your average wage. A longer work history means a few of your lowest-earning years are not averaged in. For example, if you worked 40 years, five full years of your lowest income wouldn't be counted -- increasing your overall average. 

So, how can you maximize the Social Security benefits you receive? Make sure to: (1) work at least 35 years so no years of $0 earnings are averaged in, (2) work more than 35 years so your lowest-earning years will be dropped and raise your overall average, and (3) earn as much income as possible throughout your career to boost the average wage calculation.

How can I find out about my Social Security work history?

The Social Security Administration keeps a record of every single year when you pay Social Security taxes. You can access this record by signing into your Social Security account at SSA.gov. You must create an account and verify your identity if you don't have one. If you already have an account, sign in with your username and password. You'll be sent an email at your registered email address that contains a security code for you to enter, and you must agree to the SSA's terms and conditions. 

After signing in, you have the option to view your earnings record. This is on the main page of your account and looks like this: 

Image source: Social Security Administration.

After you click "View Earnings Record," you'll see a table with three columns.

1. The year you worked
2. Your taxed Social Security earnings
3. Your taxed Medicare earnings

This earnings record is used by the Social Security Administration to determine average wages earned over your career -- and thus to determine the benefits you receive.

Why are my taxed Social Security earnings different from my taxed Medicare earnings?

For most people, taxed Social Security and taxed Medicare earnings listed on your earnings record will be the same. But if you earned a high income in some years, these numbers may be different. 

That's because you only pay Social Security taxes up to a certain amount of income each year -- the Social Security wage base limit. The wage base limit can change each year. In 2018, it was $128,400; in 2019, $132,900. Above this limit, earnings are not taxed for Social Security benefits, but they are taxed for Medicare. So, for any year that your total wages exceeded the wage base limit, the columns for Social Security and Medicare will differ.

As an example, let's say you earned $150,000 in 2018. Your "taxed Medicare earnings" column will reflect this full amount of $150,00; however, the "taxed Social Security earnings" column will report $128,400 as this was the Social Security wage base limit for 2018.

What if Social Security doesn't have an accurate record of my work history? 

Sometimes Social Security makes mistakes when tracking your work history. Common reasons for this include:

• Your employer used the wrong Social Security number when reporting your wages
• Your employer made a mistake when reporting your earnings
• You changed your name and didn't report the change to the Social Security Administration
• You performed work using a Social Security number that wasn't yours

If your earnings record is wrong, you need to correct it so you can get full credit for the work you did when your Social Security benefits are calculated.

To correct it, find some proof of the money you earned but aren't getting credit for, such as old pay stubs, W-2 forms, or tax forms. Then contact the Social Security Administration right away at 800-772-1213. The office is open Monday to Friday from 7 a.m. to 7 p.m. local time. A representative will explain the steps to take to get your earnings record updated so benefits can be calculated accurately. 

How can I estimate my Social Security benefits based on my work history?

Estimating your benefits based on your work history is more complicated than it seems. That's because you need to adjust all your earnings for inflation.

The Social Security Administration uses the Average Wage Index (AWI) to adjust for inflation. In particular, it uses the AWI in effect two years before you first become eligible for Social Security benefits. You become eligible for retirement benefits at 62, so the AWI from the year you turn 60 is used to determine how much your wages are adjusted upward to account for wage growth. 

If you turn 62 in 2019, the AWI from 2017 is used to adjust each year's wages. The wages are adjusted based on an "indexing factor," which is calculated by dividing the AWI in the year you turned 62 by the AWI in the year you earned the wages being adjusted. You then multiply that year's earnings by the indexing factor. This can be confusing, so here's an example:

• If you turn 62 in 2019, you use the AWI from 2017, when you turned 60. That AWI is $50,321.89.
• If you want to adjust your wages from 2016, figure out the indexing factor for 2016 by dividing $50,321.89 (the AWI used for all your adjustments) by $48,642.15 (the 2016 AWI). Your indexing factor is 1.035.
• Multiply 1.035 times the wages earned in 2016, since that's the year you're adjusting the wages for. If you earned $50,000 in 2016, multiply $50,000 by the indexing factor of 1.035 to find out your index-adjusted annual wage is $51,750. 

Every single year you worked will need to be determined by multiplying against this indexing factor. That's a lot of work -- fortunately, the Social Security Administration has a form on its website where you can input the year you become eligible for Social Security benefits and get the indexing factor for each year dating back to the year after your birth. To use this form, do the following:

• For each year on your earnings record, multiply your taxable Social Security wages by the indexing factor for that year to find out your average indexed wage.
• Add up the average indexed wages for the 35 years you earned the most and divide by 420 months to get your AIME.
• Apply the Social Security benefits formula to your AIME so you receive 90% of AIME up to the first bend point, 32% between the first and second bend points, and 15% of the amount above the third bend point. Remember, the bend points used are those from the year you turn 62, and they can be found on the Social Security website. 

Is there an example of how your work history determines your Social Security benefit?

Here's an example of how your work history could determine your Social Security benefit.

The table below shows the earnings record of someone who turned 62 in 2019. Let's call her Kelly. It shows the indexing factors that apply to each year of wages, as well as the index-adjusted wage for each year. For purposes of this example, let's assume Kelly took time off in the middle of her career and worked only 33 years -- not a full 35 years. 

Year	Earnings	Indexing Factor	Inflation-Adjusted Wage
1981	$13,000.00	3.6536357	$47,497.26
1982	$15,000.00	3.4629903	$51,944.85
1983	$15,400.00	3.3021260	$50,852.74
1984	$16,000.00	3.1187897	$49,900.64
1985	$17,250.00	2.9913426	$51,600.66
1986	$18,000.00	2.9051156	$52,292.08
1987	$18,000.00	2.7309507	$49,157.11
1993	$26,000.00	2.1753602	$56,559.37
1994	$27,100.00	2.1185015	$57,411.39
1995	$28,225.00	2.0368567	$57,490.28
1996	$28,225.00	1.9418879	$54,809.79
1997	$29,000.00	1.8348243	$53,209.90
1998	$29,500.00	1.7435682	$51,435.26
1999	$30,000.00	1.6515312	$49,545.94
2000	$30,000.00	1.5649875	$46,949.63
2001	$32,000.00	1.5285223	$48,912.71
2002	$34,000.00	1.5133452	$51,453.74
2003	$35,300.00	1.4772336	$52,146.35
2004	$36,500.00	1.4116111	$51,523.81
2005	$36,500.00	1.3617831	$49,705.08
2006	$37,400.00	1.3019419	$48,692.63
2007	$38,000.00	1.2454224	$47,326.05
2008	$40,000.00	1.2174169	$48,696.68
2009	$42,000.00	1.2360575	$51,914.42
2010	$42,450.00	1.2075178	$51,259.13
2011	$43,000.00	1.1708317	$50,345.76
2012	$44,500.00	1.1353789	$50,524.36
2013	$44,500.00	1.1210504	$49,886.74
2014	$46,000.00	1.0826214	$49,800.58
2015	$47,500.00	1.0462229	$49,695.59
2016	$48,200.00	1.0345326	$49,864.47
2017	$49,000.00	1.0000000	$49,000.00
2018	$50,000.00	1.0000000	$50,000.00

Data source: Social Security Administration. Calculations by author.

If you add up all the inflation-adjusted wages from this table, you get $1,681,404.99. Divide this by 420 months (35 years of work). Remember, even though Kelly only worked for 33 years, 35 years of work history are still considered, so two years of $0 wages are factored in. Based on this math, the AIME for Kelly is $4,003.35. 

Now apply the AIME formula for 2019 -- the year she turned 62. The AIME bend points in effect for that year are $926 and $5,583. So, the formula looks like this:

• 90% of the first $926 = $833.40
• 32% of the $4,003.35-$926 = $984.75. Since Kelly only earned $4,003.35 -- which is below the second bend point of $5,583 -- we don't have to give her credit for 15% of income above that second bend point. If Kelly had earned more, then we'd also have to add in 15% of income above that $5,583 threshold. 

Kelly's primary insurance amount is $833.40 + $984.75 = $1,818.15.  If she retired after age 62, the primary insurance amount would be adjusted upward based on Social Security cost-of-living adjustments made in each year after he turned 62. 

There is one final adjustment to make: The PIA is the amount that Kelly gets only if she retires at full retirement age. Since she was born in 1957, her full retirement age would be 66 and 6 months. If she is 66 and 6 months of age when she chooses to claim benefits, then she would receive the full $1,818.15. However, if she claimed benefits earlier, her PIA would be reduced; if she retires later, it would be increased. You can learn more about how to make this final adjustment and whether it increases or decreases your PIA here. 

How to maximize your Social Security benefits through work history

Now that you understand all there is to know about the effect of work history on your eventual Social Security benefits, let's summarize the main ways you can maximize these benefits:

1. Qualify with work credits: You must work long enough to earn the number of work credits to qualify.
2. Work at least 35 years: Benefits are based on inflation-adjusted wages in the 35 years when you earned the most. If you work fewer than 35 years, your benefit will be reduced because every year of $0 income will bring down your average wage. Bonus: If you work more than 35 years, your average wage will be increased by dropping a few of your lowest-earning years.
3. Earn more throughout your career: OK, you're probably already trying for this one anyway, but it's worth noting. The more money you earn throughout your career, the more money you will receive in retirement -- but you only get credit for earnings up to the maximum taxable income for Social Security each year. 

Knowing this will help you to decide when to quit working, and it should hopefully give you a better grasp of how your working life determines the Social Security income available in your retirement years. 

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2019-08-03 12:54:00Z
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Stocks To Watch: Trading Tariff Turbulence - American Airlines Group Inc. (NASDAQ:AAL) - Seeking Alpha

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Stocks To Watch: Trading Tariff Turbulence - American Airlines Group Inc. (NASDAQ:AAL)  Seeking Alpha

Welcome to Seeking Alpha's Stocks to Watch - a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive th.

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2019-08-03 12:35:00Z
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Berkshire Hathaway profit falls as insurance underwriting declines - Yahoo Finance

Buffett, chairman and CEO of Berkshire Hathaway, takes his seat to speak at the Fortune's Most Powerful Women's Summit in Washington

By Jonathan Stempel

(Reuters) - Berkshire Hathaway Inc <BRKa.N> on Saturday said its quarterly operating profit fell more than analysts expected, as weaker results from insurance underwriting and a slowing economy weighed on the conglomerate run by billionaire Warren Buffett.

The auto insurer Geico suffered larger accident gains, while cargo volumes for consumer and agricultural products declined at the BNSF railroad. Earnings barely budged in Berkshire's manufacturing and its service and retailing lines of business.

Second-quarter operating profit declined 11% to $6.14 billion, or roughly $3,757 per Class A share, from $6.89 billion, or roughly $4,190 per Class A share, a year earlier.

Analysts on average expected operating profit of $3,851.28 per share, according to Refinitiv IBES.

Berkshire also said quarterly net income rose 17% to $14.07 billion, or $8,608 per Class A share, from $12.01 billion, or $7,301 per Class A share, a year earlier, reflecting higher unrealized gains on Berkshire's investments.

A U.S. accounting rule requires Berkshire to report such gains with earnings. That rule adds volatility to Berkshire's net results, and Buffett says it can mislead investors.

The U.S. economy's annualized growth rate slowed to 2.1% in the second quarter from 3.1% in the first quarter, as an acceleration in consumer spending was partially offset by declining exports, manufacturing and business investment, reflecting the U.S.-China trade war.

Berkshire ended June with $122.4 billion of cash and equivalents, though it spent $2.1 billion in the quarter to repurchase its own stock.

The cash hoard reflects Buffett's 3-1/2-year drought in finding major acquisitions. He committed $10 billion in April to help Occidental Petroleum Corp <OXY.N> buy rival Anardako Petroleum Corp <APC.N>.

Berkshire operates more than 90 businesses that also include Dairy Queen ice cream, Fruit of the Loom underwear, and its namesake energy company and real estate brokerage.

(Reporting by Jonathan Stempel in New York; Editing by Hugh Lawson)

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2019-08-03 12:21:00Z
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Heathrow flights cancelled as support staff strike looms - BBC News

Heathrow Airport is to cancel 177 flights on Monday and Tuesday after a union vote rejected a pay offer.

Around 4,000 Unite members including engineers, firefighters and security staff voted on the airport's revised deal, with 88% opting to strike.

If the walk-outs go ahead, Unite says, almost 2,500 staff will miss work.

Heathrow is yet to announce which flights will be cancelled, and said passengers should check with their airlines to see if they were affected.

Affected passengers might be offered other flights or refunds by their airline, it added.

Heathrow said the flight cancellations, which affect 91 airlines including British Airways, were a pre-emptive measure in case a solution was not found.

Talks between union leaders and Heathrow management at the conciliation service Acas, aimed at averting the strike action, lasted until late on Friday and resumed on Saturday.

The airport, which advised passengers to check its website for updates, said its contingency plans would keep Heathrow open and safe on both strike days, albeit with some disruption.

Passengers still scheduled to fly on Monday and Tuesday have been warned to arrive at least three hours ahead of long-haul departures and two hours ahead of short-haul departures, because it may take longer to get through security.

'Growing anger'

A Heathrow spokeswoman said: "I can confirm that we are working with our airline partners to consolidate and reduce the number of flights operating during the strike period.

"We have proactively cancelled 177 flights departing Heathrow across Monday and Tuesday.

"Passengers on these flights will have either been rebooked onto alternative services or provided a refund."

Unite regional co-ordinating officer Wayne King said: "This latest vote for strike action points to growing anger among the airport's workers in a whole range of vital jobs which are essential to the smooth and safe running of Heathrow.

"Airport bosses need to heed this latest strike vote and the overwhelming rejection by our members of the revised pay offer which offers little over and above the original offer of £3.75 extra a day for many workers."

Meanwhile, talks aimed at averting a separate strike by British Airways pilots are to continue next week.

Leaders of the British Airline Pilots Association (Balpa) met the company last week to try to resolve the dispute over pay.

The union would have to give two weeks' notice of any industrial action.

Can I claim compensation if my flight has been cancelled?

If your flight out of Heathrow has been cancelled, you should contact your airline to see what you are entitled to in terms of a refund or compensation.

However, if your flight has been cancelled due to airport (rather than airline) staff striking, it is unlikely you will be able to claim compensation as this would be considered "extraordinary circumstances" outside of the airline's control, the Civil Aviation Authority said.

The CAA added that the airport is not obliged to pay compensation directly to passengers, and whether the airport gives its customers (the airlines) compensation is a commercial issue between the two parties.

If your flight has been cancelled because airline staff are striking, the CAA said, then this would be considered within the airline's control, and therefore you have a legal right to either:

• A full refund, and this includes flights in the same journey that might be from a different airline (for example, an onward or return flight)
• A replacement flight to get to your destination
• Or, if you are part way through your journey and don't want a replacement flight, you are entitled to a flight back to the airport you originally departed from

If the cancellation delays you by two hours or more, you are also legally entitled to compensation and help with any costs you may incur as a result of the delay.

---

Are you due to fly on Monday or Tuesday? Has your flight been affected? Get in touch by emailing haveyoursay@bbc.co.uk

Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:

• WhatsApp: +44 7756 165803
• Tweet: @BBC_HaveYourSay
• Text an SMS or MMS to 61124 or +44 7624 800 100
• Please read our terms of use and privacy policy

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https://www.bbc.com/news/business-49212984

2019-08-03 10:19:54Z
52780344399825

Heathrow flights cancelled as support staff strike looms - BBC News

Heathrow Airport is to cancel 177 flights on Monday and Tuesday after a union vote rejected a pay offer.

Around 4,000 Unite members including engineers, firefighters and security staff voted on the airport's revised deal, with 88% opting to strike.

If the walk-outs go ahead, Unite says, almost 2,500 staff will miss work.

Heathrow is yet to announce which flights will be cancelled, and said passengers should check with their airlines to see if they were affected.

Affected passengers might be offered other flights or refunds by their airline, it added.

Heathrow said the flight cancellations, which affect 91 airlines including British Airways, were a pre-emptive measure in case a solution was not found.

Talks between union leaders and Heathrow management at the conciliation service Acas, aimed at averting the strike action, lasted until late on Friday and resumed on Saturday.

The airport, which advised passengers to check its website for updates, said its contingency plans would keep Heathrow open and safe on both strike days, albeit with some disruption.

Passengers still scheduled to fly on Monday and Tuesday have been warned to arrive at least three hours ahead of long-haul departures and two hours ahead of short-haul departures, because it may take longer to get through security.

'Growing anger'

A Heathrow spokeswoman said: "I can confirm that we are working with our airline partners to consolidate and reduce the number of flights operating during the strike period.

"We have proactively cancelled 177 flights departing Heathrow across Monday and Tuesday.

"Passengers on these flights will have either been rebooked onto alternative services or provided a refund."

Unite regional co-ordinating officer Wayne King said: "This latest vote for strike action points to growing anger among the airport's workers in a whole range of vital jobs which are essential to the smooth and safe running of Heathrow.

"Airport bosses need to heed this latest strike vote and the overwhelming rejection by our members of the revised pay offer which offers little over and above the original offer of £3.75 extra a day for many workers."

Meanwhile, talks aimed at averting a separate strike by British Airways pilots are to continue next week.

Leaders of the British Airline Pilots Association (Balpa) met the company last week to try to resolve the dispute over pay.

The union would have to give two weeks' notice of any industrial action.

Can I claim compensation if my flight has been cancelled?

If your flight out of Heathrow has been cancelled, you should contact your airline to see what you are entitled to in terms of a refund or compensation.

However, if your flight has been cancelled due to airport (rather than airline) staff striking, it is unlikely you will be able to claim compensation as this would be considered "extraordinary circumstances" outside of the airline's control, the Civil Aviation Authority said.

The CAA added that the airport is not obliged to pay compensation directly to passengers, and whether the airport gives its customers (the airlines) compensation is a commercial issue between the two parties.

If your flight has been cancelled because airline staff are striking, the CAA said, then this would be considered within the airline's control, and therefore you have a legal right to either:

• A full refund, and this includes flights in the same journey that might be from a different airline (for example, an onward or return flight)
• A replacement flight to get to your destination
• Or, if you are part way through your journey and don't want a replacement flight, you are entitled to a flight back to the airport you originally departed from

If the cancellation delays you by two hours or more, you are also legally entitled to compensation and help with any costs you may incur as a result of the delay.

---

Are you due to fly on Monday or Tuesday? Has your flight been affected? Get in touch by emailing haveyoursay@bbc.co.uk

Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:

• WhatsApp: +44 7756 165803
• Tweet: @BBC_HaveYourSay
• Text an SMS or MMS to 61124 or +44 7624 800 100
• Please read our terms of use and privacy policy

Let's block ads! (Why?)

https://www.bbc.com/news/business-49212984

2019-08-03 07:38:50Z
52780344399825