The year 2022 has begun, and millions of Americans or citizens of the United States of America have felt the economic repercussions of the COVID-19 Pandemic.
Indeed, inflation is soaring – and many people have lost their jobs, yet according to an article from Go Banking Rates entitled: “5 Things Most Americans Don’t Know About Social Security” – a lot of American’s who are eligible for social security benefits are not even aware of this fact, or when the maximum amount they will receive will start – or even how much they are entitled to. This article looks at some of the most important, basic, aspects of social security helping to educate the reader and showing you if you are eligible for extra monthly payments in the form of social security benefits this year, and in the years to come. Read on if you are interested.
What You Need To Know
According to this article on Go Banking Rates – 2 in 5 people don’t even know the retirement age requirement for maximum benefits from the Social Security Authority in America. Sadly this means, that many Americans’ lacks education in this regard might lead to them losing out on income later in their retirement. If they are not aware of the fact that although they can start to receive income from Social Security at the age of 62 if eligible – only at the age of 70 do they receive full retirement benefits. They can, however, exhaust these added benefits by cashing in earlier on their social security benefits.
Furthermore, according to this article(quoting figures taken from a study by NationWide Retirement), almost 30% of their sample were not even aware that the Social Security Authority in America offers certain spousal and child benefits. Sadly according to this study almost half of the participants – 45% – were unaware that claiming early on social security benefits would adjust their entitlement at a later age.
Lastly, you should know that despite what a large percentage of the study believed – that is 37% – according to Go Banking Rates, Social Security benefits are calculated with inflation in mind and therefore, are protected from the effects of inflation. The cost of living adjustment or COLA is a figure usually used to determine the increases or decreases in social security benefits from year to year.
Hope you have enjoyed the article – below is a link to Social Security’s website. Please don’t forget to comment below if you found this article useful or interesting.
Social Security Authority – ssa.gov
Consumer Confidence Low As President Joe Biden’s Opinion Polls Drop
The American economy is currently experiencing its highest inflation for the past 40 years. The record-high consumer price index is currently standing at 7.5% – up from 7% last month. This is the highest annual increase in the consumer price index since 1982.
The Stats Are In
Indeed, according to the New York Post, Americans are not happy with the state of their economy. Furthermore – they seem large, to be unhappy with the commander and chief as well – the American president Joe Biden. According to the University of Michigan’s consumer sentiment index, consumer sentiment is at the lowest in a decade. A separate poll showed that one-third of Americans do not approve of a single thing President Joe Biden has done whilst in office. The University of Michigan’s consumer sentiment – measures how optimistic consumers are about their future and their economy.
The latest index came in at 61.7 for February 2022. This is a huge drop of 19.7 percent since February last year and 8.2 percent since last month. Furthermore, it is also the lowest it has been since October 2011 when the index stood at 60.9.
American’s Hesitant About Their Future
As it stood Americans were only slightly optimistic about the economy. Furthermore, consumers seem to have a lot of fear or bad expectations about the future of the economy. This is indicated by the future expectations index which stood at 57.5 percent. This has been a huge 18.8 percent drop from last year – 70.7%, respectively.
Such a decline in these indices can be attributed to high inflation, which in turn leads to a more difficult economy and less confidence in the government and its policies. This tide together with the fact that the long-term economic outlook is at its worst in a full decade can also explain this phenomenon.
America Disproves Of President Biden
With the massive 7.5% increase in the consumer price index – the average household will have to add $276 to its expenses. Food, shelter, and electricity were the three highest contributors to the latest consumer price index. This is according to the Bureau of Labor Statistics. Perhaps, largely because of many of these aforementioned statistics, 58% of Americans have expressed disapproval for President Joe Biden’s performance whilst in office. One-third of those interviewed for the polls could not even site a single the president had done that they liked or approved of.
Hope you found this article useful. Don’t forget to comment below!
Closed-End Funds A Great Investment Choice For US Retirees: Know Its Advantages
Most retirees fail to save a decent amount from their retirement and Social Security benefits. Individuals in search of higher profits should consider investing in closed-end funds. However, these funds have higher risks with higher returns than conventional investment options. The closed-end funds provide stocks and bonds cheaper than the market price. CNBC reports that more than 500 closed-end funds were worth $296 billion by Jan 31. Mutual funds in the US are worth $24.3 trillion. Retirees need to understand the attributes of these funds and the probable downsides before investment.
The Market Is Full Of Risks
The closed-end funds provide various shares at a lower value and enable the individuals to trade them in the stock market at the standard price. The share price depends upon the fund’s assets and the investor’s supply chain. The report suggests that the closed-end funds are usually sold at a discount. CNBC quoted Robert Finley, principal at Virtue Asset Management in Chicago, who said, “For fixed-income funds, we are seeing a little better returns…..sometimes because they are at a discount, anywhere from 3% to 10% of NAV. From our point of view, that provides some protection in a rising-rate environment. When the overall market tends to have a pullback, closed-end funds tend to get oversold. So we’ll look through and see if there are any specific areas discounted.”
Investors Need To Make Smart Choices
Several experts manage the investment of these funds, including stocks, bonds, and others; the funds derive profits every quarter each year. CNBC reports that 62% of the closed-end funds are bond investments. The market is volatile, and investors need to exercise caution during investment and trading. Investors should choose stocks with good market history and high-profit rates. CNBC reports that federal mortgages have a 3% to 5% return while corporate debts yield a 5% to 7% return. Experts advise against having more than 15% of the assets in closed-end funds. Investors need to look into the share prices and manage their trades smartly. The leverage for several closed-end funds varies greatly; it can also incur huge losses if not handled carefully.
Muni Bonds Come With Higher Medicare Premiums During Retirement
Municipal bonds are a primary choice among investors to evade taxes. The muni bonds can incur higher Medicare deductions from the post-retirement income. Individuals should be aware of the pros and cons of investing in muni bonds. CNBC reports that President Biden announced a probable increase in tax rates; this led to a higher demand for these bonds. The US muni mutual and ETFs are worth $96.8 billion at present. The government has not entertained the idea of a tax surge. However, the bonds still draw investors’ interests due to several unique attributes.
Several Individuals Opt For Muni Bonds
Due to unexpected Medicare costs, the muni bond investment can be a bane for many investors. CNBC quoted Matthew Chancey, certified financial planner at CostalOne, who said, “There are a lot of moving parts, and you need to have someone look at it holistically.” The retirees should consider the higher Social Security tax and Medicare deduction before being awestruck by their high returns and present tax stability. CNBC reports that retirees with the Social Security payments and modified adjusted gross income (MAGI) above $44,000 (for joint filers) and $34,000 (for individual filers) are taxable for more than 85% of their Social Security income.
Medicare Premium Will Increase For Retirees Above MAGI Threshold
CNBC states that the Medicare Part B premiums have witnessed a 14.5% increase, to $170.10 per month. The threshold MAGI for retirees is $182,000 and $91,000 for joint filers and individual filers, respectively. Retired couples with MAGI above $75,000 will have to pay $578.30 under Medicare premium. The reports suggest the retirees may suffer more due to the increase in Medicare Part D, including prescription medicines. In the higher income bracket, retirees will have to pay $77.90 per month in 2022. The retirees need to calculate the deductions before investing in the bonds.
CNBC quoted Mary Kay Foss, certified public accountant and CPA faculty at CalCPA Education Foundation in Walnut Creek, California, who said, “It’s something that taxpayers seem so aware of because if they get into this higher bracket, they have to pay higher premiums for a full year.” Experts suggest that retirees should not give up on muni bond investment; instead, they need to consider all sides of the coin before getting their hands into it.
Personal Finance News7 months ago
Child Tax Credit 2021 Update: December Payment Deadline For $3,600 Check As Surprise Cash
Stimulus Checks6 months ago
Stimulus Plus-Up Payments Worth $1,400 Are Available Till 2021 – Check If You Are Eligible
Covid-197 months ago
US COVID-19 Deaths In 2021 Surpass Last Year’s Numbers
California News7 months ago
Stimulus Check: The Plus-Up From The IRS Will Be The Final One For 2021
Child Tax Credit6 months ago
2021 Taxes: IRS Reverts Tax Filing Deadline Back In April Despite Raging Pandemic
Personal Finance News6 months ago
2021 Child Tax Credit Payments Impact The Tax Returns Next Year – Check How
Social Security6 months ago
2022 Tax Season: No Tax Break For Millions Who Received Tax Relief in 2021
Us News6 months ago
Americans Will Receive Emergency Food Benefits This Week: Details Inside