FINANCIaL
FIELd NOTES
Navigating the Tax Torpedo: The Rising Taxation of Social Security
Many of my clients who retire in the early to mid-60s, will find that they are solidly in the 12% bracket even if they have a considerable nest egg of $1-$5M saved in retirement accounts.
For individuals in the 12% marginal income bracket, a less-discussed aspect of taxes is the Social Security "Tax Torpedo" – a phenomenon where the portion of your Social Security benefits that becomes subject to taxation increases as other income is realized…
Making Sense of Medicare, Part 2 – The Cost
Last week, in Part 1, I reviewed the 5 pieces to Medicare and the two main ways to get Medicare coverage. This week, in Part 2, I will outline the cost for the two routes to get Medicare. With Medicare open enrollment around the corner (starting October 15th), now is a good time to review your coverage and consider any changes…
Making Sense of Medicare, Part 1 – The 5 Pieces
Medicare is a confusing topic to navigate, in part because there are so many choices. In the first part of this series, I will discuss the various parts of Medicare. Next week I will discuss the cost of putting these pieces together.
There are 5 pieces to Medicare…
How Being Present Increases Happiness in Retirement
I love the game of soccer. I played it growing up for many years and still try to catch as many games as I can. Those who share my love of the game certainly know who Lionel Messi is – arguably the best player to ever play the game. He was recently offered a historic $1.6 billion to sign with a Saudi club. He declined it and surprised the world by signing with a US soccer club owned in part by another great of the game, David Beckham.
Beckham was trying to land Messi for years but knew it was a long shot. Earlier this year he woke up one morning to a shocking text informing him that he had landed Messi. Just recently Messi moved to Miami and had his debut game. As Messi got ready to take the field, thousands of fans and celebrities whipped out their phone to record the moment. As I watched Messi come onto the field, the camera panned to Beckham who was sitting down, patiently watching Messi and fully taking in the moment…
Medicare IRMAA Surcharges and 5 Ways to Avoid Them
IRMAA stands for Income-Related Monthly Adjusted Amount. It is an increase to the standard Medicare Part B and Part D monthly premiums that Medicare recipients have to pay each month if they make over a certain amount.
For 2023, the standard Part B premium is $164.90/month and Part D is $0 (plus your plan premium). Depending on your income, your Part B premiums can go up to $560/month and Part D can go up to $76/month…
Is Social Security Running Out? 2023 Edition
Will there be anything left when I retire? Will my benefits get cut? These are some of the most frequent questions I get when it comes to someone’s retirement plan. And the media loves to talk about the Social Security problems.
Fortunately, there is data to answer these questions. Every year the Board of Trustees for Social Security reviews the financial status of the trust fund that pays out Social Security benefits. Recently, the board released its 2022 report, and below is my summary…