Learning to Cook to Save Money
Cooking is a lost art it seems these days. People today are very busy, working longer hours or multiple jobs, running children to events. Convenience and less hassle of fast food, and packaged meals are very tempting. Many people have gotten out of the habit, or never acquired skills in the kitchen. Family life suffers, as well as our diets. Restaurant and prepared foods are less healthy full of salt, fat and sugar. I know when I eat out I make bad decisions too, since I am in celebratory frame of mind.
Everyone is trying to save money, and eating out and packaged foods cost much more than cooking. When I counsel people in or near financial crisis, eating out and groceries usually consumes a large percentage of budgets. I can tell them to just ‘quit eating out!’ but sometimes that is too simple if knowledge and skills are missing; when they try to shop and cook more efficiently and don’t know how. Basic food items like oats, rice, beans, eggs, and fresh vegetables and fruit can be purchased for pennies per serving. Throw in more expensive but modestly priced items like frozen chicken breasts, ground meats used sparingly with rice, beans, and vegetables, meals will be more nutritious and less expensive. But unless someone is proficient in the kitchen, those foods will just sit in the pantry, refrigerator and never get used.
To help overcome this, there are several really cool books and websites to help. A few come to mind- the first one is E-mealz, it is a great service that helps to plan recipes and grocery shopping together, providing economical and tasty meals. For those wanting a little more pizzaz using basic lower cost ingredients, check out http://www.webcookingclasses.com/. Chef Todd Mohr can easily teach you over the web many cooking skills, sometimes using just whatever you have on hand, and have fun while you do it. Both of these services have a fee, but may just equate to one family’s meal out at moderately priced restaurant. Not only will you have more fun with your family, you will eat more delicious food, since most restaurant food and prepared foods aren’t very tasty!
Why did the Facebook IPO Fail?
The much followed initial public offering (IPO) of Facebook failed to be a runaway opening day success, by they way I warned you to be very cautious about IPOs like this on my February 1 2012 post. The first day of trading Friday May 18th, shares opened up at $42.50 about 11% higher than the initial public offering price of $38, closing today at $31, representing almost a 30% drop in value within a few days. This is a failed IPO, not a good start for this new public company, but one they will recover from.
Why did it fail to meet the wild expectations? Here are a few of my guesses…
- Technology where the stock was being sold, the National Association of Securities Dealers Automated Quotations or NASDAQ, was unable to handle the demand
- A few days before the IPO a few large companies announced that they thought the advertising value of Facebook was overrated
- The expectations were set too high by the media and investment talking heads
- Too many shares were issued
This IPO is looking to be controversial from the start…
- Two top regulators said the IPO should be reviewed (source Reuters)
- Regulators looking into Morgan Stanley’s sharing of analyst’s negative reports with some institutional investors but not others (think retail buyers)
- There could be lawsuits involving Facebook, NASDAQ and shareholders involving the fumbled IPO, considering the 30 billion dollar loss in shareholder equity
- Today the Securities and Exchange Commission Chairman said they will examine “issues”
What can we learn from this, so that our personal financial management is wise?
- Stay away from most IPOs, especially hyped ones
- Be extra careful about industries that don’t have a proven track record of profitability
- Media investment people are often wrong, so we should take their advice with many grains of salt
What can Facebook and other new hot up-and-coming social media companies learn from this? Perhaps they are not as smart as it seems they are perceived to be. Be wary of the advice of investment bankers and market makers involved in your IPO and get many second opinions. Maybe do a better job of employing social media to help you assess value, plan and market your IPO.
How to save on groceries at 3 major chains
It is not easy for the novice grocery store shopper to find ways that each chain has it for you to save money. In Columbus Ohio where we live, the biggest chain grocery stores are Kroger, Giant Eagle and Meijer, and each one has tricky ways to sign up for or find special savings. We have outlined a few things that might help you.
KROGER
- First go to their website
- Sign in to your account, look for the Kroger Plus card in the upper menu bar, or
- In the center of the screen you will see a SAVE MORE WITH DIGITAL COUPONS, click the get started button
- Sort your special digital coupons by using the drop down menu, choosing either expiration, popularity, value or most recent
- ‘Clip’ the coupons that you intend to use when you shop
- When checking out at the cashier, be sure to use your Kroger Plus card for her to scan, they will appear when you checkout at the register
- When clipping you can click on ‘more info’ and a screen will appear with more information about that coupon
- You can also print them out and take them with you, however that will cost you money for printer ink and paper, not eco-friendly and some people’s computers don’t always print coupons easily
GIANT EAGLE
- Get a Giant Eagle Advantage card
- Set up for an account at their website by clicking Register in the upper right hand corner
- On the Giant Eagle home page, go to the button with ‘Clip’ in it, in the lower right corner click >start clipping
- ‘Clip’ the coupons you want to use
- When checking out at the cashier, be sure to use your Giant Eagle advantage card for him to scan, they will appear when you checkout on the register
- You can also print them out and take them with you, however that will cost you money for printer ink and paper, not eco-friendly and some people’s computers don’t always print coupons easily
- In the upper menu bar, click the Save button to learn more about fuelperks, etc.
MEIJER has two programs outlined here, you can use both and stack them as well as use manufacturers coupons too, even better if something is on sale for 4 times the savings, Giant Eagle and Kroger discontinued this
- Go to their website
- Scroll down and click on Meijer Mealbox
- Click on ‘Specials’ tab
- To choose your coupons click on ‘Ad to Shopping List’ for each coupon you want – then click okay
- Click the next button to view more pages of coupons
- Click on the ‘Shopping List’ tab
- Click ‘Print List’
- Un-select the ‘Shopping List’ √ (unless you want to use the shopping list features)
- Click on ‘Print’
MEIJER for cell phone ‘mPerks’
- Sign up and sign in for mPerks with your cell phone number and personal identification number – PIN
- Redeem coupons at checkout using your Cell number and PIN
- Print or email yourself the shopping list, click the ‘Print Coupon List’ or ‘Email Coupon List’
Friday Financial Recap 5/18, Key Rates
Important week-ending financial numbers compared from last Friday to today 5/18/12, 4pm EST. Mortgage rates, stocks and oil continues its plunge, gold up ticked a little, the US Dollar continues to increase compared to the Euro’s consistent drop. One very interesting trend I’m starting to see, for the first time in months; yields on the 2 and 10 year Treasuries are going in the opposite direction, with the 2-year increasing and the 10 year continues to decrease.
- Mortgage Rates DECREASE: 30 year last/this week: 3.78%/3.73%, 15 year 3.03%/3.03%
- Dow Jones Industrial Average of 30 companies DECREASE from 12,819 to 12,369 (highest all time 14,164 10/9/07)
- S&P 500 DECREASE from 1353 to 1295 (all time 1565 10/9/2007)
- US Treasury’s MIXED: 2-Year Note from .262% to .333%, 10-Year from 1.81% to 1.72%
- Crude Oil Futures DECREASE from $95.85 to $91.15
- Gold prices INCREASE from $1,580 to $1.592 (High $1,895 9/6/11) per ounce
- Euro DECREASE from 1.2920 to 1.2772(2011 high 1.48 5/11, all time 1.59 7/2008)
- US Dollar Index INCREASE from $79.48 to $80.29 to $81.10
What does JP Morgan Chase’s loss mean to you?
There has been constant chatter about JP Morgan Chase’s $2 billion loss on the news, but what does it really mean to you with your personal finances? How will it affect you?
If you own their stock, you have experienced at 12% reduction in value, but it will probably recover in time. If you bank at Chase, will your savings rates go down, or borrowing rates go up? Probably not. Is your money still secure? Yes reports say the bank is financially secure, and has been one of the stronger banks throughout the great recession. If Chase is your investment manager, should you be concerned? Probably not, unless you are an institutional investor and Chase helps to manage your multi-million dollar portfolio, you may want to have some long conversations to make sure they are not applying the same investment methodology. So in my estimation, JP Morgan Chase’s loss means very little to the average person’s personal finances. Perhaps the only take away for us is for their loss to serve as a reminder that “If you don’t understand it, don’t invest in it.” It seems that the derivatives employed by Chase were too complex even at their level of sophistication to use wisely.
Can we spend our way to prosperity?
A few years ago, researchers discovered that most people driving on highways in blinding fog, drive much faster than they can see ahead, and even some people actually drive faster. When it comes to debt some exhibit the same behavior: debt is increasing, but we don’t slow down life, somehow like the fog, we think we will eventually drive through it.
California is the perfect local example of this. Governor Jerry Brown announced over the weekend that California’s debt of $16 billion is double what they thought is was going to be. Going back 10 years in California’s governorship Governor Gary Davis nearly bankrupted the state through over promising and overspending.
The United States and many other countries continue to increase spending and borrowing, driving faster through the fog, instead of taking the painful path of austerity that I wrote about previously of cutting back. This path would be difficult in the short run, but is the only solution that in the end will revive economies the world over. There is simply not other way, and the longer we delay the harder the path back.
Voters though aren’t convinced. We elect leaders that promise to provide the things we want, and most of us are not willing to have cuts to their particular project or program.
It is interesting to watch what is developing in other countries. France recently elected the socialist Christopher Dicky because he promised to tax the rich and take care of everyone. He stood opposed to any austerity programs. We are seeing the same battle in Greece. Is our Fall presidential election going to be about social or economic issues? Is it going to be about taking care of entitlements programs and no cut backs for anyone and higher taxes, or austerity, business growth and employment?
What ever happens it will be great political theater, but more importantly, what are we doing with our own personal budgets, have we looked at our balance sheets lately? It might be good to do from time to time, to see if we are driving in the fog and need our own austerity program.
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WOW! Friday Financial Recap 5/11/12, Key Rates
Important week-ending financial numbers compared from last Friday to today 5/11/12, 4pm EST: This is another unusual week in that all key indicators that I follow decreased for two weeks in a row! (mortgage rates, DJ, S&P, Treasuries, Crude Oil futures, Gold and Euro) compared to last Friday’s close, with the only exception being an increase in the dollar index.
Everything except for the dollar is losing value: stocks, oil, European currency, and Treasury bonds, and mortgage rates continue to slip.
- Mortgage Rates DECREASE: 30 year last/this week: 3.80%/3.78%, 15 year 3.04%/3.03%
- Dow Jones Industrial Average of 30 companies DECREASE from 13,038 to 12,819 (highest all time 14,164 10/9/07)
- S&P 500 DECREASE from 1369 to 1353 (all time 1565 10/9/2007)
- US Treasury’s DECREASE: 2-Year Note held at 2.62%, 10-Year from 1.88% to 1.81%
- Crude Oil Futures DECREASE from $98.53 to $95.85
- Gold prices DECREASE from $1,643 to $1,580 (High $1,895 9/6/11) per ounce
- Euro DECREASE from 1.3090 to 1.2920 (2011 high 1.48 5/11, all time 1.59 7/2008)
- US Dollar Index INCREASE from $79.48 to $80.29
The Essentials of Life Insurance
Life Insurance Defined
Insurance providing for payment of a sum of money to a named beneficiary upon the death of the policyholder. In other words, it is insurance of a risk (death) to replace the financial loss suffered by those dependent on the deceased.
History of Life Insurance
Life insurance is nothing new, its history spans back several hundred years. The original policies were simple term insurance policies. The contract was for the term of one year. Each year it renewed, with an increased premium because the person was a year older, and presumably closer to death.
To address this increasing premium dilemma—the older you became the more difficult it was to pay the premiums. About 100 years ago, insurance companies issued policies that insured for entire lifetimes (hence the term “whole-life”) with a level premium, which means the premium payments did not change. These whole-life policies have a cash value that provides the ability to borrow or access cash values.
Historically, life insurance existed to pay the cost of the funeral and last expenses, such as debt. Most people could not afford to purchase a policy that provided for much more. Neighbors and relatives pitched in to help after a death. Churches, Widow and Orphan Societies, and Fraternal Organizations were social service organizations that also helped.
The later part of the last century witnessed an explosive evolution in the life insurance industry. The reason is simple: The rapidly evolving post WWII society. Life insurance rode the wave of the biggest population growth ever seen. Our society has changed from agricultural to industrial and white-collar. People are living longer with vastly larger incomes and savings. Life insurance has evolved to keep pace with the ever-changing needs driven by all of this change.
The Special Treatment of Life Insurance
Life insurance is not only unique because it provides a sum of money when you die; it receives special treatment by the tax code and regulatory agencies. This has provided opportunities for insurance companies to provide a wide array of options. These diverse options confuse many consumers.
Tax Code: Life insurance has historically been an “insurance” product. Meaning it existed for safety and security. Therefore, the insurance industry has always been successful at maintaining favorable tax status, meaning they could lobby for continued favorable tax treatment. They have found it easy to appeal to legislators in Washington DC to keep life insurance from being threatened by tax law changes.
Life Insurance’s favorable tax status includes a tax-free death benefit, tax-deferred cash value accumulation, and tax-free borrowing of cash value (as long as the policy is not a modified endowment contract that remains in force until death).
Regulatory Agencies: The insurance and securities regulatory agencies provide life insurance companies an advantage over providers of other investments: Insurance companies can provide sales literature with futuristic computer illustrations of cash values.
Types of Life Insurance: An Overview
The simplest way to illustrate the different types of life insurance is to compare them on a grid.
| Insurance | Brief Description | Advantages | Disadvantages | Other |
| Term | Lowest initial premium. Most financial experts and commentators recommend term as the best alternative for most people. | Low initial cost leaves more cash flow available for other financial planning needs. | No cash value buildup. If someone wants to continue it for a long period of time, the cost will be high. | Premium can go up annually or be guaranteed level for 5, 10, 15 and 20 years or longer to match the length of time you need the protection. |
| Universal Life | Can provide protection for a longer period of time than term, and build up cash value. | Not as expensive as variable universal and whole life, but may provide life insurance for a longer period of time than term and provide cash value for borrowing (or if surrendered). | Higher initial cost than term insurance. Cash value accumulation may not be a good investment. | There are many variations of universal life available today. For example, some have a low premium for a long period of time but with little cash value, while others are designed for cash value growth. |
| Variable Universal Life | Same as universal life except that it allows for the cash value to accumulate in separate sub-accounts. | In addition to the features mentioned for regular universal life, it also allows for accumulation of cash value growth potentially higher due to sub-account options. | Cash value may have fewer guarantees than universal life and whole life. The policy’s internal charges can be quite high. | Some proponents of this insurance promote the tax advantage opportunities for growth and income. |
| Whole Life | Highest premium life insurance available, most types provide guaranteed protection for lifetime and cash value buildup. | Maximum guarantees. | High premium not affordable to many. | High net-worth people sometimes utilize whole life insurance to help pay for their estate taxes. Universal and Variable universal are also used for this purpose. |
| This is a very brief synopsis to aid in your insurance education. There may be exceptions to some of these generalizations due to state regulations and insurance company policy design. | ||||
Summary
- Evaluate Life Insurance Needs: Only purchase additional life insurance if you have a need for it. First examine the amount of life insurance that you need to provide for those financially dependent on you. A later blog will discuss various means for calculating your needs, younger families often use the rule of thumb of the death benefit should equal 10 times income, but you should talk to a financial planner, use planning software like eFinPLAN or use an insurance professional to help you arrive at the right amount for you.
- Purchase Life Insurance for Protection: The first priority for purchasing insurance should be for protection. It is most important that people, who need insurance purchase it and start their coverage without delay. At the very least, procure term life insurance with an appropriate death benefit, and term period, at a competitive premium. Term insurance provides the most economical decision for most middle-income people today. Most financial experts and commentators recommend term insurance for most people since it provides the most amount of protection at the lowest cost, enabling you to save and invest.
- Purchasing Cash Value Life Insurance: The decision to purchase cash value life insurance should be made in tandem with the outcome of your financial plan. Most people’s first priorities are the proper funding of their retirement and other plans. After people have implemented the proper action steps in their financial plan, they may want to consider cash value life insurance for longer term needs. Seek advice from a trusted financial professional to help evaluate the appropriate options. A close examination of a contract should include not only attractive illustrations and sales literature, but a thorough analysis of their prospectuses and fully disclosed information. Insurance agents should provide best, good and worst case illustrations. Remember insurance agents are paid vastly more commission for permanent cash value insurance, so some may feel pressure to sell this.
- Life Insurance as an Estate Planning Vehicle: People with large net worth may want to consider life insurance as a viable legacy planning tool to aid in liquidity and estate and tax planning. They should consult their estate planning attorneys and financial planners for direction.
Renting Prosperity
A few days ago the Wall Street Journal had a very interesting and thought provoking article “Renting Prosperity.”
This fascinating article may interest you if you:
- Are renting and considering buying
- Used to own a home, but are renting now
- Wonder about the effect of the housing crisis on people’s buying and renting trends
Retiree Health Care Costs Increasing
According to a study by Fidelity Investments a couple retiring this year will incur $250,000 in costs not covered by Medicare Parts A and B. Those with medi-gap or employer based retiree health insurance will have less expenses. Many companies today either do not provide or are cutting back on retiree health care, so they probably should include high estimates when calculating their financial needs during retirement.
Good time to buy?
There are many times throughout the year to buy certain items, or to check on things that might save you money!
- The Spring is a good time to buy a refrigerator, since that is when new models come out and manufacturers are trying to get rid of old models
- The Fall is a good time to buy other major appliances, since that is when these new models are coming to market
- The end of the year is often a good time to buy a new automobile, for the same reasons as appliances
- The end of the year may be a good time to buy a used car, since many people may be considering new ones, or come the change in the year, the car is a year older, and worth less- better for the buyer
- End of the Spring is a good time to buy lawn and garden goods since many nurseries are trying to get rid of inventory that they don’t want to care for any more- negotiate great deals on plants and lawn equipment too (the Fall is good for that too)
- Right after the Holidays is a great time to get steals on wrapping paper and ornaments
- Furniture sales can be excellent at their outlet stores, tent sales and around the time of the primary Furniture Market Trade Shows in High Point, North Carolina in April and October
Credit Score News
The Columbus Dispatch reported significant errors of credit agencies combining the credit history of other people, usually family members or others with similar names, that have bad credit. Bad credit and other bad information on the reports prevents people from obtaining all sorts of loans, such as for cars or from their home equity. Bad credit rating can also effect employment, and cause auto and homeowner’s insurance rates to raise dramatically.
Credit reporting agencies are responsible for tracking our payment history on obligations like utility bills, mortgages, credit cards, and other debt, as well as using this information to compile a credit ratings for consumers. The reports also contain information about felony criminal records and addresses.
Normal problems are easy to corrected, such as small errors about late payments, or debt that has long since been repaid, by writing letters to the main credit reporting agencies. Often consumers have to make follow-up phone calls and send additional letters, but I understand that things usually get cleared up. It is just a pain to do so.
Everyone should check their credit history, usually for free through www.annualcreditreport.com NOT freecreditreport.com. There you can get reports from Equifax, Trans Union, and Experian. If you find that your information is incorrect, quickly find out what you need to do to fix it, and then constantly followup until done so. This may turn into a part-time job for some, but is important. To know your rights and procedure you should follow, there are many excellent articles at www.ftc.gov:, start with Credit and your consumer rights.
Homeonwership Rate Falls to 15-Year Low
Monday the Census Bureau announced that the percentage of people owning homes fell to the lowest level in 15 years to 65.4%, after peaking at almost 70% in 2004.
Friday Financial Recap, Key Rates
Important week-ending financial numbers compared from last Friday to today 5/4/12, 4pm EST: This is an unsual week in that all key indicators that I follow decreased (mortgage rates, DJ, S&P, Treasuries, Crude Oil futures, Gold and Euro) compared to last Friday’s close, with the only exception being an increase in the dollar index.
- Mortgage Rates DECREASE: 30 year last/this week: 3.82%/3.80%, 15 year 3.06/3.04%
- Dow Jones Industrial Average of 30 companies DECREASE from 13,228 to 13,038 (highest all time 14,164 10/9/07)
- S&P 500 DECREASE from 1403 to 1369 (all time 1565 10/9/2007)
- US Treasury’s DECREASE: 2-Year Note from 2.70% to 2.62%, 10-Year from 1.935% to 1.88%
- Crude Oil Futures DECREASE from $104.82 to $98.53
- Gold prices DECREASE from $1.663 to $1,643 (High $1,895 9/6/11) per ounce
- Euro DECREASE from 1.3242 to 1.3090 (2011 high 1.48 5/11, all time 1.59 7/2008)
- US Dollar Index INCREASE from $79.18 to $78.78 to $79.48
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Personal Savings Rate Decreases
Source: Wall Street Journal
The U.S. personal savings rate has been decreasing this year. Looking back at 2011, it has been steadily decreasing from 5.2% in January to 4.30% in September, but it began to increase by the end of the year to 4.70%. Although March showed a slight increase to 3.80%, the overall savings rate is not good from the perspective of individuals accumulating reserves for emergencies and other needs. This might be a good indication of individuals paying off debt since debt has high interest rates, and saving accounts, CD and money market accounts are paying less than 1% these days. Short sighted economist see this has having positive ramifications for the economy that consumers are spending more money.
New Short-Sale Rules
Source: Kenneth Harvey LA Times
A real estate short-sale occurs when someone sells their home for less than they owe the bank. People considering them are trying to get out of a mortgage payment they can’t afford, usually caused by unemployment, health care bills, divorce, or over use of debt related to these circumstances or not. Sometimes the bank considers the sale as paid and full, and doesn’t seek to recover their loss through collections or legal means. The lender could change their mind and seek to recover their loss later, only time will tell. Forgiven debt may have tax ramifications, so sellers should talk to their tax advisor.
Lenders have been slow to respond to short-sale offers by qualified lenders, and often the deal falls apart, and the seller is back to where they started. The foreclose process continues, and either their financial situation improves, or the bank comes through with a loan modification: lower mortgage amount or interest rate in an effort to keep people in their home. There is federal funds to help with this, but it requires a cooperative lender.
To help speed the short-sale process, and if the loan is a Fannie Mae or Freddie Mac, short-sale requests to lenders will have about a 30-day response turnaround, and a final decision in not more than 60 days. This change is being imposed by the Federal Housing Finance Agency.
If you are in a financial situation where you are trying move on to more affordable housing, and don’t want to do the more drastic ways to dump your house like foreclosure or bankruptcy, this might be a solution for you. It is a win for the lender too when ever they can secure a new mortgage with a qualified buyer, instead of selling it in a sheriff sale for much less, add to that the risk of many months of vacancy, no maintenance, and thieves prey on the plumbing and appliances.
Friday 4/27 Financial Recap, Key Rates
Important week ending financial numbers compared from last Friday to today 4/27/12, 4pm EST
- Mortgage Rates DECREASE: 30 year last/this week: 3.88%/3.82%, 15 year 3.10%/3.06%
- Dow Jones Industrial Average of 30 companies INCREASE from 13,029 to 13,228 (highest all time 14,164 10/9/07)
- S&P 500 INCREASE from 1378 to 1403 (all time 1565 10/9/2007)
- US Treasury’s DECREASE: 2-Year Note from .270% to 270%, 10-Year from 1.967% to 1.935%
- Crude Oil Futures INCREASE from $103.61 to $104.82
- Gold prices INCREASE from $1,642 to $1.663 (High $1,895 9/6/11) per ounce
- Euro INCREASE from 1.3214 to 1.3242 (2011 high 1.48 5/11, all time 1.59 7/2008)
- US Dollar Index DECREASE from $79.18 to $78.78
Uptick for Jobless Claims
Source: Wall Street Journal 4/27/12 and http://ycharts.com/
The past several weeks has shown some slight increase of those making claims for unemployment benefits, from 375,500 from 2 weeks ago to 381,750 last week. This is a 4 week rolling average that peaked at over 600,000 in 2009. In 2010 we saw a decrease from nearly 500,000 early in the year to the low 400,000′s, in 2011 the claims were in the low to mid 400,000′s but since October of 2011 they have been below 400,000. This uptick since the end of March may illustrate slow economic growth, but probably not a double-dip recession like we saw hit the United Kingdom this month. To put this into historical perspective, the lowest we have seen this rate in 10 years is 282,000 in January of 2006, and the earlier part of the last decade we saw the average similar to what we are seeing now.
Social Security Will Go Broke in 21 years
Source: Wall Street Journal 4/24/12
Reported yesterday that earlier estimates were 24 years, but now 21 years. If reserves for disability benefits were combined with retirement, reserves would be exhausted by 2033. Social Security and Medicare account for 1/3 of the federal budget. If the trust funds are not replenished, then benefits would be reduced by 25%.
Everyone should be concerned about this, even those that are already retired, since people are living much longer these days.
| Year of birth | Full retirement age (FRA) | Your Age this Year | Years to retirement FRA | Year of Retirement | Age Soc Sec Reserves Exhausted (2033) & benefits could be reduced |
| 1941 | 65 | 71 | 0 | 2006 | 92 |
| 1942 | 65 | 70 | 0 | 2007 | 91 |
| 1943 | 66 | 69 | 0 | 2009 | 90 |
| 1944 | 66 | 68 | 0 | 2010 | 89 |
| 1945 | 66 | 67 | 0 | 2011 | 88 |
| 1946 | 66 | 66 | 0 | 2012 | 87 |
| 1947 | 66 | 65 | 1 | 2013 | 86 |
| 1948 | 66 | 64 | 2 | 2014 | 85 |
| 1949 | 66 | 63 | 3 | 2015 | 84 |
| 1950 | 66 | 62 | 4 | 2016 | 83 |
| 1951 | 66 | 61 | 5 | 2017 | 82 |
| 1952 | 66 | 60 | 6 | 2018 | 81 |
| 1953 | 66 | 59 | 7 | 2019 | 80 |
| 1954 | 66 | 58 | 8 | 2020 | 79 |
| 1955 | 66 & 2 m | 57 | 9 | 2021 | 78 |
| 1956 | 66 & 4 | 56 | 10 | 2022 | 77 |
| 1957 | 66 & 6 m | 55 | 11 | 2023 | 76 |
| 1958 | 66 & 8 m | 54 | 12 | 2024 | 75 |
| 1959 | 66 & 10 m | 53 | 13 | 2025 | 74 |
| 1960 | 67 | 52 | 15 | 2027 | 73 |
| 1961 | 67 | 51 | 16 | 2028 | 72 |
| MoneyEducate.com | |||||
A lot of people wonder if Social Security will actually go broke, and not be able to provide them with benefits. I am doubtful this will happen, given that seniors represent the largest voting block, so politicians are always very concerned about their votes. We will have to see either rapid growth in GDP or most likely increased taxes, reduced benefits, lower or no the inflation increases and older Full Retirement Ages for younger workers, to secure these benefits. Due to the recession, declined stock portfolios, many people have much lower retirement savings and will be depending upon Social Security for a major part of their retirement. This issue is going to continue to be a hot one.
Delaying Social Security Retirement Income
Interesting article in the Wall Street Journal comparing delaying taking early retirement income benefits (age 62) to Full Retirement Age (FRA) or age 70. Several articles recently have covered this topic from the perspective of the benefits delay in the first stage increases them about 6% and then 8% for the second delay (from FRA to age 70). This article How to Beat Government Bonds – Using Social Security may be worth reading if you are near age 62.
