During his campaign, President Donald Trump pledged not to reduce Social Security benefits. He even proposed eliminating taxation on Social Security benefits, which would enable higher-income beneficiaries to retain more of their income.
Rise of avocados is a powerful lesson in understanding how markets evolve
Not so long ago, baby boomers viewed Social Security as a retirement program for old folks. High-earning boomers felt that Social Security didn’t apply to them because the monthly checks were small, and they believed the system wouldn’t be around when they retired.
If you have $500,000 in your 401(k) or IRA, it’s not really $500.000. That’s a tax planning mistake most people make going right out of the gate. If you’re married and filing jointly, it’s more likely you could have $325,000 (35% tax bracket) or just $315,000 (37% tax bracket).
The three largest expenses in the federal budget are Social Security/Medicare, interest on the debt, and defense.
The Fed’s zero interest-rate policy (ZIRP) resulted in printing money. Quantitative easing (QE) seemed to work as the stock market saw it’s longest bull market in history.
We all love free money; and no taxes on Social Security sounds good! Hey, Social Security benefits weren’t taxed for many years!
We all know the Fed target is 2% inflation; but, since COVID-19 and all the accompanying spending, it’s been tough going for the Fed. While the rate of inflation has been slowly declining, it’s still stubbornly around 3% – and with people living longer, it can still spell disaster for those facing retirement, especially with longer life expectancies.
Retirement milestones should actually begin the day you leave school and enter the workforce; but few people think about retirement at that age. They’re too busy starting careers. If they achieve early success, they won’t even be worried about retirement. It’s been my experience that it’s after age 50 they come through my door. By that time they’re done with stock tips and chasing rainbows. Age 50 has a way of making all of us start thinking.
When most people buy things, they see only the price tag; but that doesn’t reveal the REAL cost, especially when it comes to luxury items. The real cost of luxury can be more than they realize.
During his campaign, President Donald Trump pledged not to reduce Social Security benefits. He even proposed eliminating taxation on Social Security benefits, which would enable higher-income beneficiaries to retain more of their income.
Rise of avocados is a powerful lesson in understanding how markets evolve
