#Finances for retirees

[amniforn]

Key things to know if you're considering the Medigap policy with Basic Medicare

Key things to know if you’re considering the Medigap policy with Basic Medicare

Dragos Condrea | Istock | Getty Images If you register for Health Insuranceyou’ve probably discovered that there are a lot of out-of-pocket expenses that come with your coverage. For about 23% of the 65.1 million Medicare beneficiariesthe solution to cover these expenses is a so-called Medigap plan. These policies, sold by private insurance companies, typically cover some or most of the cost…

[wutbju]

In asking BJU Alumni to give money to save Bob Jones University, a recent retiree stated:

For a perspective, every 50 students makes about 1 million in revenue. In the history of the school, we have graduated about 103,000 students. I don't know how many have graduated in the last ten years or so, but it is probably north of 20K.

Wait. Every 50 students makes about 1 million in revenue? You mean for the school, I'm presuming. Right? Have you looked at any data? I can show it all to you.

In the Fiscal Year Ending in May 2022, as reported to the DoE, BJU said they had 2,265 undergraduates. Their total revenue was $84,371,195. Their total expenses were  $83,557,754.

But let's keep going.

They are getting only 35% of their revenue from tuition. And they are discounting tuition at a rate of 71%. That's from their own data. So students aren't giving the school revenue. They are costing the school.

I'll show you all the numbers:

Look at the net tuition. Look how it's growing worse and worse. They were out $18.7 million in FYE May 2022 because they couldn't pay students to come.

And the last part you stated? No no no no....

In the last 10 years since 2013, BJU graduated 5447 undergraduates. I'm saying it that way because it's possible that some of those did go on to complete a graduate degree. But you can't count them twice! That would be illogical. So to keep things even, the undergrads are the way to go.

In the last 20 years since 2003, BJU graduated 11,935 undergraduates.

This retiree is inflating the numbers be a factor of 4!

Is it possible that part of the reason BJU is having so much financial trouble is the rank-and-file constituency can't math?

[wdtom]

RBI Pensioners' Rights: Letter to Hon'ble Governor Raises Concerns Over Bureaucratic Hurdles

All India Reserve Bank Retired Employees Association (AIRBREA), Mumbai has written a letter to the Hon’ble Governor regarding issues concerning pensioners and family pensioners in RBI due to bureaucratic hurdles. Highlights: On April 1, 2024, the RBI celebrated its 90th anniversary. The RBI has played a unique dual role as the central bank and a developmental institution for the Indian…

[kc22invesmentsblog]

Passive Income Strategies for Retirees and Seniors: Building Financial Security in Your Golden Years

Written by Delvin Retirement is a time for relaxation, travel, and pursuing hobbies, but it’s also a period where many individuals seek to maintain financial stability. Passive income offers an opportunity to supplement retirement savings, providing a steady stream of income without the need for active daily involvement. For retirees and seniors, passive income strategies can play a crucial role…

[personalfinancewhizz]

Save A Ton In Retirement

Renting an apartment in retirement can be a bit complicated but it’s doable. Here is how to rent an apartment if you are retired

Show Your Bank Statement

Exhibit Your Assets and Credit Score

Present a Guarantor

Offer Advance Rent

Convince Your Landlord

To read the full process please visit the original article at How To Rent An Apartment In Retirement

[storynstory]

9 Smart Part-Time Jobs for Retirees

Retirees need to keep busy, and it never hurts to make some extra money, especially if you’re on a fixed income. If you want to work while you’re retired......Read More

[robertreich]

How the Super Rich Are Killing Social Security

Here’s the real reason Social Security is in danger that nobody’s talking about.

It's not just because too many boomers like me are retiring. It's because of inequality.

Now, I don’t want to alarm you. Social Security is still helping us oldies enjoy our golden years — but only for so long.

Social Security is one of the most popular and successful government programs ever created, not only helping retirees — but it’s also keeping 26 million people out of poverty.  Yet here is the problem:

It’s going run out of money before you can ever receive it if the rich don’t start paying their fair share.

The trustees of Social Security — of which yours truly was once a member back when I had thicker hair — say the program will only be able to pay full benefits until 2033. After that, Social Security will only be able to dole out roughly 77 percent of benefits.

Why? It’s not the reason that many seem to think.

Boomer retirees like me might be soaking up some sun, but we’re not soaking up all of the program’s funds.

The Social Security trustees anticipated the boom in boomer retirements. This is why Social Security was amended back in 1983, to gradually increase the age for collecting full retirement benefits from age 65 to 67. That change is helping finance the boomers’ retirement.

What did the trustees fail to anticipate? How much income would be going to the top.

A big part of the American working population today is earning less than the Social Security trustees anticipated years ago — reducing revenue flowing into the program.

At the same time, a much larger chunk of the nation’s total income is now going to the top compared to decades ago.

But income subject to the Social Security payroll tax is capped. No dollar of earnings above the cap is taxed. The cap in 2023 is $160,200.

So, as the rich have become far richer, more and more of the nation’s total income has escaped the Social Security payroll tax.

For example, a CEO earning $20 million a year pays Social Security taxes on roughly 1% of their income, while a worker earning under the cap pays Social Security taxes on 100% of their income. But they both end up paying the same amount of money into the program.

The rise in the amount of income above the cap due to inequality has cost the Social Security Trust Fund reserve an estimated $1.4 trillion since 1983.

The solution is obvious: it’s time to scrap the cap, and make the rich pay more in Social Security taxes.

One plan introduced in Congress would eliminate the cap on earnings over $250,000 and also subject investment income to Social Security taxes. It’s estimated that this would extend the solvency of Social Security for the next 75 years without raising taxes on 93% of American households.

This is where you come in. Share this video and help spread the word about the real threat to Social Security. If we want to ensure Social Security’s long term future, and that working people can retire with dignity, we must make the wealthy pay their fair share.

[zvaigzdelasas]

Argentina’s Economy Ministry has announced measures to improve government workers’ salaries and funnel money toward retirees and poorer families, defying an International Monetary Fund appeal earlier this month for the country to spend less. Economy Minister Sergio Massa, who is running for president, outlined measures that include tax-breaks, higher pension payments, additional money for food programmes for families with kids, and low-interest credit lines. It also includes financing for export products, according to the announcement made on social media Sunday.

The new plan comes after the Unión Por La Patria coalition of President Alberto Fernández, for whom Massa is a candidate, was surprised by the win of libertarian Javier Milei in the primary this month prior to the October election. The measures could put the government in conflict with the IMF, which approved a cash transfer to the government last week following extensive negotiations over its multi-billion dollar loans, after Argentina failed to meet programme targets amid a drought.[...]

A condition of the IMF’s aid to Fernández’s government was that Argentina step up expenditure controls by limiting public wages and pensions.

28 Aug 23

[vote-democrat-president-congress]

NYTimes: Gutting Social Security and Medicare:

Biden has a clear plan to preserve these programs.

However Trump, if he gets back to the White House, he’ll do for Social Security and Medicare what he did in his almost successful attempt to replace Obamacare: leave the drafting of legislation to right-wing ideologues who want to gut them.

One final point: Trump’s plan for a draconian crackdown on immigration would be a disaster on many fronts, but one important consideration is that it would have a catastrophic impact on the future finances of Social Security and Medicare. Why? Because at this point, immigration is crucial for growth in the working-age population, whose taxes support retirees.

So will Social Security and Medicare be on the ballot this November? Definitely. Biden has a clear plan to preserve these programs; Trump, wittingly or unwittingly, would probably help wreck them."

[theramseyloft]

2/26/24

We visited Janet Dame's loft in Phenix AL, at her invitation, to discuss loft design.

As her loft is built around Racing Homers in active training, there isn't a whole lot that we can implement directly.

In fact, it may be better to scrap the idea of building a loft in that space in favor of eventually getting another building so that the loft and porch can be raised off the ground.

There may end up being something else we can do with that concrete slab, but it won't likely have much to do with the pigeons, or be a thing we can start in the next year unless things change pretty drastically for our household finances.

The immediate plan for the flock, then, is to modify the 12x12, get it properly insulated, waterproof treated floors, a decent AC unit and ventilation, and at least a 6 ft porch.

The current loft is going to become our quarantine building.

When we are able to save up enough for one, we plan to get a third building specifically for our available rescues, retirees, and young birds.

We hope to transition to living at the new property in May.

[eightyonekilograms]

The parallels between finance and various engineering disciplines are always fascinating to me. It's uncanny the degree to which you can model finance as a complex distributed system like a power grid, including (or even especially) in how it breaks down. The breakdowns in finance are increasingly system accidents: the obvious failure modes are handled by regulations and safety systems, but the remaining ones are caused by emergent behavior in the interconnections between parts that often nobody even knew were connected. And a lot of times the safety systems for the well-understood failure cases make the unknown ones worse!

At dinner last night @keynes-fetlife-mutual's roommate brought up a point about the GFC that I hadn't realized: part of the problem was that various European banking regulations had created a huge demand for AAA-rated assets, via the perfectly understandable public demand that things like pension funds and only make extremely safe bets so retirees don't suddenly lose all their money. But there are only so many AAA assets around! And the vacuum ended up getting filled by sketchy American mortgages that were laundered through securitization and money markets until nobody realized what they were anymore. But to be clear: if American mortgages hadn't filled this demand for AAA assets beyond the realistic supply, something else would have, and would've blown up a different way.

To this I added the point that the in, which is what we saw when Truss became PM: to make a long story short, the chaos occurred in pension funds when the BOE raised rates and looked poised to raise them a lot more, and suddenly these funds were out of cash. Which is really counterintuitive! Pension funds should benefit when rates go up. But these funds had hedged themselves so much against interest rate downside risk that when rates when up, even though their future asset value was excellent in the long run, in the here-and-now they had no money. Again: safety systems causing problems. It's similar to that issue last year when commodities prices went way up, and refiners/miners of some metal, (maybe aluminum, I can't remember or find the link) were screwed because they had again hedged against downside risk and now a bunch of banks were making margin calls on them. This all turned out to be fine, I assume because capital markets gave them bridge funding on the promise that "hey, we benefit from these high prices, we're good for it", but you could imagine a scenario where this price spike occurred during a liquidity crisis where there was no easy capital available, and then these producers would've been strangled to death by their own safety nets.

I don't know much of the details, but there's an emerging discipline of study about the extent to which safety systems against small-scale accidentally inherently make large-scale ones more likely because it increases the risk of cascading failure. This is something that keeps cloud computing operators up at night, since disks and NICs and power supplies die constantly and you have to make that invisible to consumers, but these failover mechanisms are very likely to take down entire datacenters if they just plow ahead with whatever they're doing. It's wild to me that finance faces the exact same dilemma.

[dontmeantobepoliticalbut]

Americans’ Social Security checks will get a lot smaller in 2034 if lawmakers don’t act to address the pending shortfall, according to an annual report released Friday by the Social Security trustees.

That’s because the combined Social Security trust funds – which help support payouts for the elderly, survivors and disabled – are projected to run dry that year. At that time, the funds’ reserves will be depleted, and the program’s continuing income will only cover 80% of benefits owed.

The estimate is one year earlier than the trustees projected last year. About 66 million Americans received Social Security benefits in 2022.

Medicare, meanwhile, is in a more critical financial condition. Its hospital insurance trust fund, known as Medicare Part A, will only be able to pay scheduled benefits in full until 2031, according to its trustees’ annual report, which was also released Friday.

At that time, Medicare, which covered 65 million senior citizens and people with disabilities in 2022, will only be able to cover 89% of total scheduled benefits. Last year, Medicare’s trustees projected that the hospital trust fund’s reserves would be depleted in 2028.

LONG-STANDING FISCAL TROUBLES

Immensely popular but long troubled, Social Security and Medicare are on shaky financial ground in large part because of the aging of the American population. Fewer workers are paying into the program and supporting the ballooning number of beneficiaries, who are also living longer. Also, health care is becoming increasingly expensive.

Social Security has two trust funds – one for retirees and survivors and another for Americans with disabilities.

Looking at them separately, the Old-Age and Survivors Insurance Trust Fund is projected to run dry in 2033, at which time Social Security could pay only 77% of benefits, primarily using income from payroll taxes. The date is one year earlier than estimated last year.

The Disability Insurance Trust Fund is expected to be able to pay full benefits through at least 2097, the last year of the trustees’ projection period.

Merging the two trust funds would require Congress to act, but the combined projection is often used to show the overall status of the entitlement.

Social Security’s projected long-term health worsened over the past year because the trustees revised downward their expectations for the economy and labor productivity, taking into account updated data on inflation and economic output.

However, the long-term projection for Medicare’s hospital trust fund’s finances improved, mainly due to lowered estimates for health care spending after the height of the COVID-19 pandemic. Also, the program is projected to take in more income because the trustees estimate the number of covered workers and average wages will be higher.

ADDED PRESSURE ON CONGRESS

The trustees’ reports are the latest warnings to Congress that they will have to deal with the massive entitlement programs’ fiscal problems at some point soon. But addressing their issues is politically challenging. Elected officials are hesitant to suggest any changes that could lead to benefit cuts, even though that could reduce their options in the future.

“With each year that lawmakers do not act, the public has less time to prepare for the changes,” the trustees warned in a fact sheet.

The programs’ shortfalls are back in the spotlight this year as President Joe Biden and House Republicans battle over how to address the nation’s debt ceiling drama and mounting budget deficits. GOP lawmakers want to cut spending in exchange for resolving the borrowing limit, while the White House has said it will not negotiate.

In a memorable moment in his State of the Union address in February, Biden garnered public acknowledgment from congressional Republicans about keeping Social Security and Medicare out of the debt discussions.

But “not touching” Social Security means a hefty cut in benefits within a decade or so.

“Change is inevitable because without changes to current law, both Social Security and Medicare Hospital Insurance would go insolvent, subjecting program participants to sudden and severe payment cuts,” said Charles Blahous, senior research strategist at the Mercatus Center at George Mason University and former Social Security and Medicare trustee. “The outstanding question is whether change will be tolerably gradual, or instead highly damaging because it is too long delayed.”

Though Biden has repeatedly vowed to protect Social Security, his latest budget proposal did not include a plan to stabilize its finances.

However, his proposal did call for extending Medicare’s solvency by 25 years or more by raising taxes on those earning more than $400,000 a year and by allowing the program to negotiate prices for even more drugs.

Spending on the entitlement programs is also projected to soar and exert increased pressure on the federal budget in coming years.

Mandatory spending – driven by Social Security and Medicare – and interest costs are expected to outpace the growth of revenue and the economy, according to a Congressional Budget Office outlook released in mid-February.

[argyrocratie]

"The rich already have more money on their hands than they can find profitable investments for; they’re not going to put more money into expanding productive capacity, because working people can’t afford to buy enough stuff to fully utilize existing industrial capacity. That’s why they wind up dumping money into FIRE economy speculative bubbles instead.

(...)

Capitalism is utterly dependent on waste production, financed by government spending, to absorb surplus investment capital and keep the wheels of industry turning. Government military procurement and investment in the automobile-highway-sprawl industry employ enormous amounts of productive capacity and capital that would otherwise be idle, and social spending increases the purchasing power of people who buy stuff and likewise keep the wheels turning.

And government debt is soaking up (and providing a minimum return on) trillions of dollars that would otherwise be dumped into the capital markets and make Black Friday look like the biggest bull market in history by comparison. U.S. bonds are, for capitalist rentiers, the equivalent of USDA subsidies that pay farmers to hold land out of use and thereby effectively turn idle farmland into a guaranteed real estate investment.

To show just how easy it would be to cut spending if those pointy-head gummint wonks would get out of the way, Mr. Dunning Kruger tries his hand at the Washington Post budget game:

By slashing military spending, getting the federal government out of education, raising the retirement age, and eliminating whole areas of spending, I was able to run a budget surplus starting in 2023 and move the federal government 163.2 percent of the way towards a sustainable budget. Hmmm. Looks like I have some room for tax cuts.

Congratulations, J.D.! You’ve removed hundreds of billions of dollars worth of demand from the economy (particularly would-be retirees who’ll wind up in the labor force either unemployed or driving down wages), dumped it in the laps of rentiers who already can’t find profitable things to invest in, caused the value of investment assets to collapse, and caused another Great Depression. Last time around, the only thing that saved American capitalism was a world war; let’s just hope they don’t use nukes in this one.

There’s a real solution that will make deficit spending and public debt unnecessary, but I don’t think J.D. will like it. It would involve abolishing all the state-enforced privileges and artificial property rights — like landlordism, intellectual property, and credit monopolies — that shift income from workers to property owners, and all the entry barriers and cartelizing regulations that shift income from consumers to business owners. There would be a lot less idle capital and idle industrial capacity, and a lot more demand for labor from the purchasing power of ordinary people."

-Kevin Carson, "No, Deficit Spending Isn’t the Problem…"

[personalfinancewhizz]

Fired Before Retirement?- Don’t worry, Apply these Methods

Getting fired before retirement is an unfortunate thing. But according to a research

"Around 56 percent of American people aged 50 or more lose their job at least once before retirement."

So, It is not rare at all. At least not in the United States. But what to do if you get fired just before retirement?

If your age is below 60 and you get fired before retirement then you must do these to protect your interests

If you are able to work then look for new employment. Because no matter how much money you have on your hand, it can still be short due to rising inflation.

Apply for unemployment benefits immediately after getting fired before retirement.

Don’t take your pension fund from your employer in cash without consulting a tax accountant or tax attorney. Otherwise, you might end up facing serious tax penalties.

Don’t withdraw lump sum from your 401(k). If you do then you might face tax penalties.

Consult with a financial advisor for the management of your pension fund.

If your healthcare is tied with your employer and you have a family, take advantage of COBRA Health insurance. Otherwise, find a private healthcare solution.

If you are above 62 then

Apply for Social Security Benefits. Though how much you will get depends on your age. But still getting something is better than nothing.

Consult with a tax accountant before withdrawing any money from your 401(k) or pension fund to avoid tax penalties.

Find a financial expert or advisor for managing your retirement fund.

Sign up for Medicare if you are above 65. If not then use COBRA if you have a family. Otherwise, find the most suitable private healthcare solution for you.

For more suggestions and tips read the original article here-https://www.pfwhizz.com/getting-fired-before-retirement/

[talabib]

Winning Strategies To Make Your Money Last A Lifetime

Key Point:

Planning your retirement is more complicated than it was in the days of company pensions. That means you’ll have to be proactive if you want to enjoy your sunset years in comfort. Save money now by driving an older car and moving to a smaller house, and you’ll be well on your way. Once you’ve retired, you’ll want to stay invested in the stock market to generate inflation-busting yields while covering living expenses from a guaranteed income like an annuity. After taking care of your finances, you’ll need to ensure your heirs are taken care of by creating two must-have documents – a will and a trust. 

Planning for retirement and ensuring your money lasts a lifetime is a complex and crucial endeavor. With changing dynamics in retirement planning, it's essential to adopt winning strategies that can secure your financial future. In this article, we will explore key strategies to help you maximize your retirement savings, protect your assets, and make informed decisions. From setting ground rules for financially dependent children to optimizing housing and investments, these strategies will empower you to make your money last a lifetime.

Planning for retirement is a lot more complicated than it was in the past.

Retirement planning has become increasingly complex due to factors such as longer life expectancy, changing economic conditions, and evolving retirement structures. It's important to recognize that a one-size-fits-all approach no longer suffices. Engage in comprehensive retirement planning that takes into account your individual circumstances, financial goals, and risk tolerance. Consider seeking professional guidance to navigate the intricacies of retirement planning effectively.

Retirees with financially dependent children need to set ground rules to guarantee their financial security.

If you have financially dependent children, establishing clear ground rules is essential to safeguard your own financial security. Set boundaries and expectations, ensuring that your children understand the level of support you can provide without compromising your retirement savings. Encourage their financial independence and educate them about responsible money management. By setting ground rules, you can strike a balance between supporting your children and securing your own financial well-being.

You can save a lot of money by making smart decisions about the car you drive.

Transportation expenses can have a significant impact on your retirement budget. Making smart decisions about the car you drive can lead to substantial savings. Consider factors such as fuel efficiency, maintenance costs, and depreciation when purchasing a vehicle. Opt for a reliable and cost-effective option that aligns with your needs rather than succumbing to unnecessary expenses associated with luxury or high-performance vehicles.

Reducing housing costs allows you to turbocharge your retirement savings.

Housing costs often constitute a significant portion of retirement expenses. Finding ways to reduce these costs can have a profound impact on your retirement savings. Consider downsizing to a smaller home, relocating to a more affordable area, or exploring alternative housing options such as renting or co-living arrangements. By reducing housing expenses, you can allocate more funds towards your retirement savings, ensuring a stronger financial foundation.

Patience pays in turbulent markets even when you're retired

Turbulent markets can be unsettling, especially for retirees who rely on their investments for income. However, it's crucial to exercise patience and avoid making impulsive decisions during market downturns. Maintain a well-diversified investment portfolio and stick to your long-term financial plan. Additionally, establish an emergency fund to cover unexpected expenses and supplement your income during market volatility. By remaining patient and having a contingency plan in place, you can navigate turbulent markets while protecting your retirement savings.

To avoid running out of money, take inflation into account when you plan for retirement.

Longevity and inflation are key considerations when planning for retirement. It's prudent to assume a longer life expectancy and account for the impact of inflation on your future expenses. Work with a financial advisor to calculate the projected costs of healthcare, living expenses, and leisure activities throughout your retirement years. By incorporating these factors into your retirement plan, you can mitigate the risk of outliving your savings and maintain your financial stability.

An income annuity provides a guaranteed income

An income annuity can be a valuable tool for retirees seeking a guaranteed income stream. By purchasing an annuity, you receive regular payments for a specific period or for the rest of your life. This provides a sense of security and stability, offsetting the demands of investing in the potentially volatile stock market. Consult with a financial professional to explore suitable annuity options that align with your retirement goals and risk tolerance.

Protect yourself and those you love by creating a will and a living revocable trust.

Estate planning is essential for ensuring the protection and distribution of your assets according to your wishes. Two vital documents to consider are a will and a living revocable trust. A will specifies how your assets should be distributed upon your passing, while a living revocable trust allows you to manage your assets during your lifetime and provides for the smooth transfer of assets upon death. Work with an attorney who specializes in estate planning to create these important documents and ensure your financial legacy is secure.

Achieving financial security throughout retirement requires careful planning, strategic decision-making, and a focus on long-term goals. By implementing winning strategies such as setting ground rules for financially dependent children, making smart financial choices, reducing housing costs, staying patient during market fluctuations, accounting for longevity and inflation, considering income annuities, and prioritizing estate planning, you can make your money last a lifetime. Remember, a comprehensive and adaptable approach is key to navigating the complexities of retirement and securing your financial future.

Action Plan: Consider saving online. 

Brick-and-mortar banks are great when it comes to convenient access to cash and ATMs, but they don’t usually have the best interest rates on savings accounts. If you want a better deal, it’s a good idea to move your savings to an online bank or credit union. They can afford to pay higher yields because they don’t have physical branches with rent and overhead. So how big is the difference? Well, as of late 2019, traditional banks were paying around 0.25 percent on savings accounts while their online counterparts had yields of around 2 percent!