The Big Picture:
For years, baby boomers drove the housing market, and much of the economy, as they moved into their first homes, began raising families, and moved-up to larger homes finally ending-up in the “McMansions” we’re all familiar with today. The boomers are now older—they’re no longer moving up. In fact, they’re just beginning to “decumulate” and downsize.
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!
As you may or may not know, the Tax Cuts and Jobs Act is due to expire at the end of next year – just 16 months from now. The Biden Administration has proposed new tax increases worth knowing about.
If you are one of those asking the ‘will my money last’ question, there’s a way you can find out just what your probabilities are!
The Big Picture:
For years, baby boomers drove the housing market, and much of the economy, as they moved into their first homes, began raising families, and moved-up to larger homes finally ending-up in the “McMansions” we’re all familiar with today. The boomers are now older—they’re no longer moving up. In fact, they’re just beginning to “decumulate” and downsize.
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.
