Podcast Episode 229: Social Security Announces Large COLA Increase + Mailbag Questions
Any time retirement benefits go up, people will welcome the news.
Retirees found out that the 2022 Social Security benefits would be increasing by nearly 6% in 2022 and it’s one of the most significant jumps in a long time. It’s no surprise that this has been a topic of interest for many of the clients we work with so we wanted to take a little time on the podcast to discuss it.
The first thing to understand is that these Cost of Living Adjustments are meant to reflect the rise in expenses we incur in our daily lives. That’s also known as inflation. The biggest thing this tells us is that regardless of what you hear about whether inflation is or isn’t a problem, this increase speaks volumes.
Most of our clients are within five years of retirement or already retired. We look at the items our clients are commonly using and those things are all up right now. There’s no denying that prices are higher and Americans are facing those added costs every day. This benefit will help the people receiving benefits, but it’s a good reminder to make sure you are building a financial plan that is outpacing inflation.
Along with this primary topic, we also cover a few others thanks to some great listener questions that came into the show. The first is what can someone do if they’ve maxed out their allowed contributions and have additional funds they’d like to save. The answer will depend, but Joel is a big proponent of individual stocks, which he’ll explain on the show. You need to think long-term about positioning that money with taxes in mind and stocks and certain mutual funds can help you do that.
The next question came in from someone that wants to help make sure their mom is taken care of later in life. What’s the best way to do that? First of all, if your parents haven’t been open to financial advice before, then that likely won’t change now. It’s best to get them in front of a financial advisor if they are willing, but at least help them meet with an estate planning attorney to make sure all of their legal documents are up-to-date.
Finally, we have a question about rental income and this is one we get a lot. Many people want to get into real estate, but it often takes a lot of work and the return isn’t as good as other avenues. But as long as the rent is more than covering the mortgage and putting money in your pocket, then there’s probably no problem with it.
No matter where you are in your saving and planning, it’s beneficial to take advantage of our complimentary Money Map review. Get in touch and we’ll set you up with a time to come in and discuss your financial future.
1:01 – Social Security COLA increase
3:18 – Is inflation higher than the increase?
4:56 – Mailbag question on saving after maxing contributions
7:14 – Diversification of taxes
8:21 – Mailbag question about taking care of parents
11:45 – Mailbag question about rental properties
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Podcast Episode 412: Medicare Explained in 10 Minutes
Prefer to watch? Click here to watch and listen on YouTube. Reaching Medicare eligibility is an important milestone, but understanding the different parts, when to enroll, and what is and isn’t… -
How Much Will I Get from Social Security?
When planning for retirement income, it’s important to have a clear idea of how much you can expect to receive. However, estimating your future Social Security benefit can be complicated. Your … -
Podcast Episode 411: What Happens to My Money After I Die?
Prefer to watch? Click here to watch and listen on YouTube. No one wants to think about life after they’re gone, but ignoring what happens to your money can leave your loved ones confused and v… -
Should I Downsize My Home for Retirement?
Equity is on the minds of many pre-retirees and retirees today, more specifically: Should I downsize my home in retirement? And if so, when is the right time to do it? In this week’s Money Wisd… -
Podcast Episode 410: 2 Key Questions to Ask a Retirement Planner
Prefer to watch? Click here to watch and listen on YouTube. Meeting with a financial planner often sparks some of the most important questions. When it comes to retirement, there’s a lot to con… -
Podcast Episode 409: Which Retirement Accounts Should I Withdraw from First?
Prefer to watch? Click here to watch and listen on YouTube. Planning for retirement doesn’t end when you stop working. In fact, one of the most important financial decisions you’ll face in reti… -
Podcast Episode 408: What to Do in a Down Market
Prefer to watch? Click here to watch and listen on YouTube. As recent market fluctuations have stirred up a lot of economic uncertainty, there’s a particular question on many investors’ minds: … -
Podcast 407: Is My Social Security Income Taxable?
Prefer to watch? Click here to watch and listen on YouTube. A common misconception about Social Security is that whether your benefits are taxed depends on the state you live in. While state ta… -
Podcast Episode 405: The Retirement Tax Trap
Prefer to watch? Click here to watch and listen on YouTube. The term “tax trap” comes from the misconception that you’ll need less income in retirement, so you’ll pay lower taxes. This leads ma… -
Podcast Episode 406: How to Plan for a 30-Year Retirement
Prefer to watch? Click here to watch and listen on YouTube. The retirement landscape has changed dramatically. Today’s retirees bear much more of the responsibility for securing their financial…