FINANCIaL
FIELd NOTES
The Future of Social Security
Will there be anything left when I retire? Will my benefits get cut? These are some of the most frequent questions I get when it comes to someone’s retirement plan. And the media loves to talk about the Social Security problems.
Fortunately, there is data to answer these questions. Every year the Board of Trustees for Social Security reviews the financial status of the trust fund that pays out Social Security benefits. Recently, the board released its 2024 report, and below is my summary…
Popular Financial Fraud Tactics in 2024
With the rapid advancement of technology in the financial landscape, financial fraud has unfortunately kept pace with innovation. The financial fraud that was common just 5 or 10 years ago has taken a back seat to more creative and destructive tactics. It’s critical to remain vigilant against the new tactics being employed by fraudsters.
Below are some of the most prevalent fraud tactics that have been making headlines this year…
Why I’m Cashing Out My I-Bonds
In January 2022 and January 2023, I purchased I-bonds to replace part of our family’s cash savings. In 2022, when I-bond rates were over 7%, I wrote about how if you had cash that you could afford to tie up for a year, I-bonds were a good option. Rates then peaked in the middle of 2022 at nearly 10% before starting to come back down. Last year around this time, I wrote about how I still thought I-bonds offered a reasonable rate over alternatives.
In 2023, inflation came down and I-bond rates linked to inflation continued to decline. However, late last year and early in 2024, inflation stopped its downward trend and I-bond rates stayed elevated – over 5%. For this reason, I opted not to cash out my I-bonds. However, the Treasury just announced the new I-bond rate of 4.28%…
Six Options for Long-Term Care Planning
Roughly 70% of adults aged 65 or older will need at least some long-term care, and the average length of stay is 3.2 years.
Because of this everyone needs a long-term care plan. However, long-term care insurance is just one way to pay for care. There are 6 common ways to fund this expense…
Original Medicare vs. Medicare Advantage (“Part C”)
One of the most common questions I get from clients turning 65 is “Do I need Part C for Medicare?” Many are surprised that they don’t need Part C, otherwise known as “Medicare Advantage” at all.
There are two main ways to get Medicare - Original Medicare or Medicare Advantage.
How to Save Your Retirement Investments in a Recession
Last week I discussed how the 4% rule is a good starting place for retirees. But to get the most out of your retirement, it’s important to go beyond this. The answer for many is to use Dynamic Withdrawal Rules where spending is slightly adjusted based on the market environment.
By being flexible, you can on average spend significantly more throughout your retirement. When your withdrawal rate gets too high because of increased spending or lower returns, you cut spending modestly. When your withdrawal rate gets too low because of lower spending or higher returns, you can increase spending.