Each year our federal government accesses the inflationary environment and makes a determination for those on Social Security as to how much, if any, of an inflationary adjustment is needed…. AKA Cola adjustment-
COLA Adjustment – Cost of Living Adjustment
Looking into 2019, those on fixed incomes with COLA or Cost of Living Adjustments, in MOST cases will see a 2.8% increase per the Social Security Administration and their flagship marker, the CPI or consumer price index…
This includes in most cases pension, and other fixed income types, as they usually (we have just run across a disconnect, but are not to the bottom of it yet) follow the same index – good for all.
Here is the last decade of adjustments from the Social Security Administration
Social Security Tax Maximum
Ok – so the good news for those receiving fixed income could be looked at as a minor detractor for those paying the new higher Social Security Tax amount – but hey, we are all in this together –
Here is the new Social Security Tax Maximum amount with a little historical perspective for your perusal:
In 2019, the new tax maximum (said another way- the amount of money you need to earn to max your Social Security Benefit) is $132,900!
Have a great “Social Security COLA” Day!
John A. Kvale CFA, CFP
October 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale …
Hello and Welcome to our October 2020 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
Hope you enjoy!
October Video
(YouTube)
Financial Planning Tip (s) –
Social Security COLA Increase 1.3%
Social Security, one of the few Pension Like Benefits that has a Cost of Living Adjustment (COLA) announced an annual increase – there is not always an increase … which we discussed here in this post with links to the announcement for those wanting more detail!
Possible Realizing of Capital Gains
With year end tax planning in mind, here in this post we discuss the possibility of realizing Capital Gains if your are on the fence and may be thinking of pushing gains out to next year…. this with approval and knowledge of your tax professional – let’s not get reckless!
Capital Market Comments
Election Outcomes and Market Reactions
Here in this post we carefully tip toe into the Election outcomes and possible market outcomes ….
Have a Great October Update!
Talk to you at the end of November!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in General Financial Planning, Investing/Financial Planning, Market Comments, Retirement Planning, Social Security
Tagged Capital Gains, Cola, Election, Social Security COLA, tax planning, taxes