Right about now, retirees and Social Security recipients are anxiously awaiting the Social Security Administration (SSA) announcement of what might be a Cost of Living Adjustment (COLA) (if there is one) for 2018. I say “if” because as we have seen in recent years, the COLA adjustment hasn’t always been there for the many who depend on it to survive in a very costly 21st century world. So, will it be all good news?
Social Security beneficiaries have lost almost one third of their buying power since the year 2000 as the cost of things purchased by these recipients, typically the elderly, have continually outpaced any inflation adjustments made by the government and the SSA according to a recent report by The Senior Citizens League (TSCL). Continue reading
In part one of 21st Century Retirement Strategies, I talked about the need to start your retirement plans at the very beginning of your working career. I wasn’t kidding. I have a hard time believing that people don’t think about it 100% of the time. It should be done as soon as you are employed and eligible to participate in your employer’s retirement plan, or if self-employed able to contribute to a plan you create yourself. Not only that, it should also be a consideration when you are interviewing for a job, even when changing jobs. Finding out what the benefits are when it comes to retirement plan options may not seem that important, but it is.
Retirement planning is as much of a skill as just about anything you that you do in life. The main problem is that for most of us there isn’t much education or preparation for it and we have to learn as much as we can on our own. Fortunately, you might say, we have a fairly long period between day one of work and retirement day to figure it all out. Today, I’ll cover some of those retirement strategies that can help you secure your golden years. Continue reading
Having reached the age of 67, it’s only now that the realities of retirement have actually sunk into my brain. After all, like most of us, that kind of event always seems like it’s far off in the distant future. It’s a lot like thinking about your long term health prospects in that you seem invincible in some respects and working every day fortifies that feeling.
Realistically, we all know that retirement is coming whether it is in a far distant future or just peaking over the horizon. But even knowing that, we sometimes don’t paint a realistic color to what it will actually be like. Will it be a time of exploration, fun, and peace of mind? Or will it be a time of struggle, difficulties, and a less comfortable lifestyle? The way your retirement unfolds is never 100% under your control but the ways you prepare for it are for sure. That’s why you need some solid retirement strategies. Continue reading
Most people think of a “senior” or a retired person as someone who sits around in the back yard snoozing on and off or perhaps hitting the golf course for a round with his retired friends. After all, most retirees have spent decades rising and shining every day and working there as$$es off to provide for themselves and their families and deserve some time to relax and have some fun in their “golden years”. And in most cases, they really do deserve a chance to just hang out and not carry the weight on their shoulders they have had for most of their lives.
But a not-so-funny thing has happened to many older people these days. Many of them have found out that sitting around in retirement isn’t all that it was cracked up to be. There are a lot of reasons for that, so today’s post is something I can write about firsthand and with absolute certainty: why senior citizens want to stay in the workplace. Continue reading
I don’t care who you are or how old you may be, you have thought about Social Security from time to time. It may be because you are wondering if there will even be such a thing when you retire. Perhaps you are approaching your retirement years and are wondering exactly what you will be getting every month once you start to draw upon it. Whatever the reason that Social Security has crossed your mind, the time for thinking about it isn’t when you are turning 66 or 67. Figuring out how to maximize your Social Security benefits starts long before that.
In fact, the time to think about your Social Security benefits is always now. Here’s why. There are a dozen factors that determine what you will get as your monthly payment when the day finally arrives for you to collect. Many of those items are things you do when you are young, middle aged, and then finally retired and each of those things will affect the amount you receive. Don’t believe me? Here are 12 ways you can increase you Social Security payouts when you retire by simply following these behaviors along the way starting right now! Continue reading
Benjamin Franklin once said “In this world, nothing can be said to be certain, except death and taxes”. Particularly here in the USA, you certainly can’t deny that, can you? You can’t really ever avoid the subject of taxes, especially right around now since the big and dreaded April 15th deadline (ok, this year it’s April 18th) is less than a month away! The truth however is this: income taxes are not the only taxes we have to deal with every day, and retirement and taxes is something we need to plan for. It’s not something that is new and it’s not something that is going away.
The net is this: my paycheck is gross!
Back in the days when I used to get an actual paycheck, the first thing I would look at was the “net” amount of my check compared to the “gross”. There was always a big difference between those two numbers and most of it was centered on taxes. It always amazed me how many different ways they could slice up my paycheck and no matter what my salary was that number was always smashed by those payroll tax deductions. Continue reading
Update 03/15/2017: The Fed has announced a quarter point increase as expected.
For almost 10 years, while our economy has been struggling to recover from the recession, one thing that has been a big plus and important to people has been the historic lows in interest rates, but that may be about to change. While the job market was down, the stock market was down, and the emotions of the American people were down, interest rates were adjusted so that many people were still able to afford to buy a home and use their credit cards. But, the Federal Reserve Board (a.k.a. the Fed) raised interest rates last December for just the second time in the last 10 years. That may be the beginning of a huge change over the next couple of years, and that begs a lot of questions.
What a Fed Interest Rate Hike Could Mean
1. How certain is a rise in interest rates?
There is little doubt that interest rates will go up again, beginning this coming week. On Wednesday, March 15th the Fed is expected to announce just that. It’s a move that was almost guaranteed by the good news about the job reports released last week, increases of 235,000 jobs and the drop of the unemployment rate to a low 4.7%. There was also good news about wage growth that further indicates the recovery is moving along at a much better rate than before. Continue reading
Have you ever seen the old TV show “The Odd Couple”? You know the original that starred Jack Klugman as “Oscar” and the brilliant Tony Randall as “Felix”. You can learn a lot of things on TV you know, especially when it comes from the genius of someone like Neil Simon and his iconic comedy. Back in the day, my favorite and most memorable episode of the show featured Felix explaining in a courtroom scene how you should never “assume” anything and on a chalkboard he draws the memorable line that: “when you assume, you make an ass of u and me!”
As funny as that line is, making assumptions about things doesn’t always cause a chuckle. When you make assumptions about your finances, for example, you often find that what you assumed would happen just doesn’t happen at all. Assumptions about your retirement plan may be shot to pieces because you assumed your plan made years ago would be just fine! When it comes to finances, rather than assume anything you should be planning for the worst and hoping for the best. You want to be able to react and adjust to what you don’t really know, don’t you? Continue reading
For an amount of money like $5,500 a year ($6,500 for those over age 50), all of us have an awful lot riding on an IRA. According to the Investment Company Institute, Americans had over $24.6 trillion dollars socked away in total retirement assets with $7.5 trillion in IRA accounts as of the second quarter of 2016. That makes IRAs the biggest place that people have parked their money for retirement in the country. In addition to direct contributions, a lot of that money has come from rollovers of retirement assets from previous employers’ accounts.
Opening an IRA account seems like it’s a fairly simple thing. You go to a bank or you can pick a brokerage firm or a mutual fund company (even online), fill out a few forms, and then move some money into the account. But, there are a lot of things that can go wrong when and if you stub your toe in the IRA process. It can wind up costing you a lot of money, and that is the money that you are counting on for your retirement and that can screw up your “golden years” if you’re not careful. Continue reading
We are closing in on the time of year when Medicare and Social Security will be making changes to the benefit amounts and the costs to the over 50 million recipients of the programs, which include both retirees and the disabled. Right now, there’s potential for a real financial heartache and what will scare you is what is currently being considered for 2017. The official announcements for the Social Security Board of Trustees (SSBOT) and the Medicare Board of Trustees (MBOT) will come in just a few weeks in October 2016. In fact, the MBOT just met this month to gauge the need to increase Medicare costs to its covered users.
Any adjustment in the COLA (Cost of Living Adjustment) or Medicare premiums will be announced in October by the SSBOT. I’m sure it will be debated and discussed as it has been done over the years, since two of the past three years have seen no increase to benefits as they made the decision that inflation was at zero. These decisions have been highly controversial because many recipients feel that there is significant inflation in many basics like food, healthcare, and prescription medicines while SSBOT uses a “basket of items” to make their decision. The significant fall of the price of gasoline has had a big impact on cost of living, despite the fact that it isn’t the big influence on seniors and disabled people that it is on younger, healthier active ones who work, commute, and even travel more often that SS recipients. Continue reading