If inflation remains hot, retirees may get a bigger bump to their Social Security benefits than previously estimated. Last week, the annual report from the trustees of the Social Security and Medicare programs projected a 3.8% increase in the cost-of-living adjustment (COLA) for beneficiaries’ monthly checks next year. But since the report data was gathered in mid-February,…

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Here are the maximum amounts you can save into some common retirement plans in 2022: 401k Pre-tax or ROTH – $20,500 (Increased from $19,500) 401k Catch-up if over 50 – $6,500 SIMPLE IRA – $14,000 (Increased from $13,500) SIMPLE IRA Catch-up if over 50 – $3,000 Traditional IRA or ROTH IRA – $6,000 Traditional IRA…

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We’ve been in a low rate environment for a while. It’s tough to earn a real (after inflation) return on your bonds right now. One option that investors may consider is buying I Bonds from the US government – currently they’re paying 7.12%. For I bonds, interest payments are derived from a “fixed” interest rate…

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Retirement Contributions – Make 401k, IRA or employer contributions. Charitable Contributions – Give cash or appreciated investments to your favorite charities. 2021 Reflection – Did I save, give, spend intentionally, and pay off what I had planned? If so, celebrate! If not, why? 2022 Plan – How much will I save, give, spend intentionally, and…

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The golden rule of withdrawal rates is of course the 4% rule. You simply withdraw 4% of the portfolio in year 1 of retirement and adjust that amount with inflation in subsequent years. That should safely fund a 30 year retirement. While the 4% withdrawal rate is a good rule of thumb, here are 3…

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The Social Security Administration redesigned their statements to make them easier to read and understand. They also stopped mailing them to most people. Therefore, it’s a good time to login or create an account to review your statement. Check to make sure your earnings history is correct and that your personal information is accurate. The…

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I recently caught up with one of my clients that recently retired. She loves the outdoors and water. She wants to put in a pool in her backyard but exclaimed, “It’s so much money!” Backstory is that she is financially sound, house is paid for, has multiple streams of retirement income, and is well positioned…

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