We’ve reported that the booming economy is causing inflation to creep up. That in turn is making interest rates rise. Now another consequence of inflation is a welcome cost of living increase for folks on Social Security. Starting next year— those benefits will go up 2.8%, the largest increase in 7 years and it's affecting tens of millions of Social Security recipients. Financial planner and teacher Rob West has some insights— then he takes your questions at 800-525-7000.
- This increase isn't even the standard cost-of-living increase of 3%; why all the hoopla?
- What does a 2.8% increase mean for the average recipient?
- How many people will get this increase?
- How exactly is the Social Security COLA tied to inflation?
- Is tying the increase to the Consumer Price Index for Urban Wage Earners and Clerical Workers a reasonably accurate way to measure inflation?
- Where do you see Social Security headed in the future?
- To improve the situation, what’s the answer, people saving more for retirement or getting the folks in Washington to fix things?
Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
- If you've been retired for 10 years collecting Social Security and have made enough in a home business your accountant told you that you almost had to pay SS back, how much are you allow to make while drawing Social Security?
- Is a life insurance policy a good way to borrow against for education expenses in lieu of a 529 plan?
- Where should you keep your emergency fund? Should it be liquid or in something like a CD? bankrate.com
- What does the Social Security Administration look at to access your eventual benefits?
- Is there a difference between TOD (transfer on death) or POD (payable upon death)?
- If you're in your 70s, your initial mortgage was $171,000, the house is now valued at $217,000 and you owe $151,000, should you refinance and use built up equity for the refi closing costs?
- Who do you talk to about dumping a time-share - an attorney or a real estate agent?
- If you receive a credit card supposedly from Sam's Club that you didn't order, what should you do?
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