Ask Bob: Social Security COLAs
Alhambra's Bob Williams explains Social Security Cost of Living Adjustments and their effect on the Survivor Benefit.
Letting Retirees Save for Healthcare Tax-Free
Health Savings Accounts (HSA) for retired folks. Isn’t that a novel idea? But it’s being considered in Congress—The Health Savings for Seniors Act, H.R. 3796. As it stands right now, the only people eligible for an HSA are those aged 65 years and younger who have a high-deductible health insurance plan meaning you have to pay $1,400 out-of-pocket for [...]
Inherited Health Savings Accounts—Not a Beneficiary’s Best Friend
The Health Savings Account has been a wonderful addition to the financial landscape of people who are eligible for one. They’re often thought of as a way to pay for qualified medical expenses with pre-tax money during your working years for things like deductibles, copays, and non-covered items—in other words, things not covered by insurance. You can’t make contributions to [...]
The Do’s and Don’t’s When Signing Up for Medicare
Happy Birthday! You’re turning 65. There’s cake and ice cream, presents, and your application for Medicare. Yep, this is when you sign up for the federal health insurance program you’ve been paying for all your working life. Signing up isn’t difficult, but there are things you need to know to get the most out of Medicare and avoid penalties (yes [...]
Preparing for Diminished Capacity—Just in Case
It’s been pounded into us that having a successful retirement requires advance planning—financial planning, Social Security planning, retirement income planning, and estate planning. And now, there’s another component to be considered—planning what happens in the event you have a decline in mental capacity. The Administration for Community Living estimates there are 54.1 million Americans who are 65 years old or [...]
Sky High Inflation May Mean Another Hefty Social Security Increase in 2023
In 2022, Social Security recipients got a 5.9% cost-of-living adjustment (COLA). That was the largest increase in 40 years. The COLA coming in 2023 may be even bigger. Social Security calculates cost-of-living increases based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from September to September each year. According to the Bureau of [...]
Ask Bob: Getting IRA Money Without Paying the Early Withdrawal Penalty
1975 was a big year in financial annals when Americans were given a brand new way to save for retirement in something called an Individual Retirement Account—an IRA. You could put money into the account before taxes and the money got to grow tax-deferred. You didn’t have to pay taxes until you started taking money out, theoretically after you retired. [...]
The Changing Landscape of Retirement Savings
It’s not often that politicians agree about anything, but in a rare vote in the U.S. House of Representatives, men and women, Republicans and Democrats, liberals and conservatives voted 414 to 5 in favor of the Secure Act 2.0, a series of changes to retirement savings plans. You can see the entire list of changes here. The bill builds on [...]
Revocable vs Irrevocable Trusts
My, how things have changed. When I was growing up, if you found out someone had a trust, well, that person must be rich—they must be a millionaire (that’s back when a million dollars was really worth something). Today, though, trusts of all kinds are a common planning tool providing specific benefits to a multitude of situations. But boil it [...]
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