FINANCIaL
FIELd NOTES
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…
Investing Is More Predictable the Further You Zoom Out
Over the years I’ve noticed something about the clients I work with that behave well during market volatility – they don’t check their accounts all that often.
They could probably tell you approximately how much they have invested, but it wouldn’t be exact – maybe off by 5 to 10%. When asked how they felt during a difficult year like 2022, they answered “fine – I just didn’t look.”
To some, it may seem careless. But is it? Consider an investor who checks their accounts daily. Historically, they have about a 50/50 chance of seeing red on any given day – 46% to be exact…
18 States Where It’s Cheaper to Build a Home Than Buy
With soaring interest rates over the past year and very little movement in home prices, buying a home has become much more expensive. I can’t imagine how difficult this environment is, especially for first-time home buyers, who are seeing the cost of owning the same home essentially double in just a few years.
Because of these dynamics, many buyers are turning toward building in parts of the country where it is cheaper than buying an existing home…
Confirming Evidence Everywhere You Look
Earlier this month I was reading a quarterly market update from a financial institution that was citing leading economic indicators that were all pointing to a looming recession and likely market decline in the near future.
Later that same day, I came across a chart from a market strategist at a large financial institution that cited the fact that since 1950 when we reach a 52-week high after more than a year without one, the market has been positive 1 year later every time…
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…
Getting A 91% Charitable Tax Benefit In Virginia – Neighborhood Assistance Program
If you live in Virginia and are searching for charitable organizations to give to, you may want to consider the Neighborhood Assistance Program (NAP).
According to their website, “In return for [your] contributions...individuals may receive tax credits equal to 65 percent of the donation that may be applied against their state income tax liability.” That’s right - a 65% dollar-for-dollar credit on your Virginia taxes!