The Social Security Administration announced late last week the COLA (Cost of living adjustment) based not he CPI, Consumer Price Index (see graph below) would be a 2% increase.
Here is a great fact sheet link
Three Important Numbers
2% – The increase in ALL Social Security benefits for 2018
$128,700 – The phase out level of Social Security withholdings – Medicare 3% does not phase out anymore
$17,040 – The maximum amount of employment related income you can earn AND draw Social Security early without facing a dollar for dollar tax above this amount
The CPI – Consumer Price Index
The Consumer Price Index (CPI) (to be exact, it is the CPI-W for clerical workers and wage earners- it looks exactly the same) is the basic index living adjustments for Social Security (and many other instruments) are used.
As you can see the line is generally up, but there are years that no adjustment is made!
Happy 2% raise next year!
John A. Kvale CFA, CFP
Flip Flop Not … What’s most important changes, frequently and fast !
If you have been following us long, you may notice we hone in on various items with sometimes excruciating detail. Of late, interest rates may be an area you have become fatigued, but they are that important at the current time.
Not OCD, but reactive .. It changes
While it may seem at time we jump from one thing to another, we are bringing you the details of what is most important (high level as we never talk exact investments) at any given moment, in our opinion.
Recent the CPI (consumer price index) or inflation gauge printed a hot number and caught our attention.
Here are a few cause and effects:
So while it may seem we jump around a bit, things change and importances do as well!
Have a Great Day!
John A. Kvale CFA, CFP
www.jkfinancialinc.com www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225Share this:
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Posted in General Financial Planning, Investing/Financial Planning, Market Comments
Tagged BLS, CPI, Flip Flop, Interest Rate