Weekly Notables

from the Desk of Brian Bickett, CFP®

for the Week of October 02, 2019

Social Security COLA…

This week’s retirement income article covers the expected Social Security COLA to be announced later this month, preparing Social Security Retirement Benefit recipients to be disappointed as it is expected to be lower than the 2019 COLA of 2.8%.

The second half of the article discusses the effects of COLA being tied to the CPI-W.  The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is based on spending of households meeting two requirements: 1) more than half of income comes from clerical or wage occupations; and 2) at least one of the household’s earners must have been employed for a minimum of 37 weeks in the previous 12 months.  

Neither of these requirements describes the typical retiree receiving Social Security Retirement Benefits, none that I work with anyway.  Changing the COLA calculation to use the CPI-E (households where one member is 62 years of age or older) has been discussed recently and is included in the current version of the proposed Social Security 2100 Act.  It seems like it would be hard to argue against the switch.  However, retiree’s should be wary of developing unrealistic expectations of increased future COLA’s as there are definitely periods of time where the CPI-W has outpaced the CPI-E.  

Enjoy the ride of YOUR life!

— Brian

Find Your Financial Roadmap.

Brian can help you develop a roadmap to get you from where you are to where you want to go — and then put it in action, making your money work for you to avoid behavioral mistakes.

2020 Social Security COLA is expected to be Minimal

(Alessandra Malito, MarketWatch) – This retirement income article explores the expected Social Security cost of living adjustment (COLA) that will be announced later this month.  While it is expected to be significantly less than 2019’s COLA of 2.8%, what is most interesting is that the over the past decade the COLA has averaged 1.4% versus the 2000 to 2009 average of 3%.  This would not be concerning as the COLA is intended to keep up with inflation, however there is some valid concerns about if it is tied to the appropriate inflation index.

Lending Money to Friends or Family is a Recipe for Disaster

(Lorie Konish, CNBC) – This personal finance article elaborates on a recent Bankrate survey that found that just under half of adults who lent money to friends or family were never paid back and/or had their relationship with the borrower permanently damaged.  Another regret of survey participants was lending out their credit cards.  The survey results clearly support the adage: “The only time you should lend money to friends and family is when you are comfortable simply considering it a gift”.

Don’t Quit Your Job Just Because You Don’t Like It

(G.E. Miller, 20 Something Finance) – This career article explores the reasons most Americans dislike their jobs including being over-worked, over-stressed and lack of meaning, purpose, and pay.  It goes on to support what the title suggests including having a well thought-out plan before leaving a current employer.  The article also declares the truth of many, but not all, jobs: that it’s about getting paid to do stuff that others don’t want to do for free.  

Where’s Brian?

Teaching Social Security classes thru the Community Education of the Black Hills

Additional Articles You May Find Interesting

Understanding Arch Coal Pension Plan Benefit Options

Understanding Arch Coal Pension Plan Benefit Options

Article written by Brian Bickett   I’ve been able to help a handful of people make educated decisions concerning their Arch Coal Pension Plan in the recent months. While it all comes down to your personal financial goals, here are a few points that have helped my...

read more
Summary of the 2019 Social Security Trustees’ Report

Summary of the 2019 Social Security Trustees’ Report

Summary of the 2019 Social Security Trustees' Report   Article written by Brian Bickett Earlier than in the past, the Social Security Board of Trustees released their annual report at the end of April this year.  The report for 2018 spans 270 pages that go...

read more
Fee Only Financial Planning

The Touring Package

Develop a roadmap to get you from where you are to where you want to go and then put it in action.
Fee Only Investment Management

The Day Trip

Hire a CERTIFIED FINANCIAL PLANNERTM Professional who can provide you with one-time objective advice.
Fee Only Investment Management

Investment Management

Put your money to work for you and avoid behavioral mistakes.

Start your journey to financial freedom and peace of mind today.

CONNECT WITH US

ADV Part 2       Privacy Policy       Site Map

Iron Mountain Financial Planning LLC (“IMFP”) is a registered investment adviser offering advisory services in the States of South Dakota and Wyoming and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by IMFP in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of IMFP, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.