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
October 2017 Podcast Video, Financial Planning and Capital Market Update- By John Kvale
Here is our October 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.
October 2017 Video
Break In – D Magazine Honors – Best Wealth Managers
We are super happy to be honored in D Magazines Best Financial Planner and Wealth Managers Award !!
Thanks so much and congratulations to our fellow recipients.
11th Consecutive Honor – John Kvale Best Individual Financial Planner
The 11th consecutive D Magazine best Financial Planner award was also in this edition and we are super happy to announce, John received his 11th consecutive nomination!
Financial Planning Tip(s)-
Social Security Increase
Don’t smirk at 2%, every penny counts! With a CPI (Consumer Price Index) increase of 2% year over year, the Social Security Administration passed the good news on earlier this month. Take that 2% increase and run!
Capital Market Comments
Rates are Slowly Ticking Up
After much silence on interest rates, we have taken notice of recent movement as the global economy begins to pick up steam … Overseas seems to really be getting their act together.
Consumer Sentiment Also Higher
The University of Michigan Consumer Sentiment hit a post “Great Recession” high this month.
With two thirds of our US Economy being based on consumer consumption, this bodes well for the Economy.
See you at the end of November, which also features our very special Blooper Thanksgiving Video from a few years ago!
Happy Fall Season!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
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Posted in Donald Capone, Earnings, General Financial Planning, Interest Rates, Investing/Financial Planning, John Kvale, Market Comments, Monthly Review, Personal, Video
Tagged Best Financial Planners, Best Wealth Managers, Consumer Confidence, CPI, Interest Rates, Social Security, University of Michigan