As many retirees recall well, the Social Security COLA is the annual Cost Of Living Adjustment. Last year, the COLA was 0%. Said another way, there was no COLA. This occurred because the government determined there was no inflation. The COLA is determined based on the level of inflation.
Many experts predict there will once again be no COLA this year - as inflation has stayed away. What do you think will happen?
Stay tuned, the answer should be available in October.
Despite all the great wisdom of asset allocation, choosing your retirement investments comes down to just a few broad categories: stocks, bonds, and cash.? Sure, there are many sub-groupings. For example, you could invest in large company stocks or small company stocks.? One could choose between growth stocks and value stocks or those that focus domestically or abroad.? Similarly, there are corporate bonds, Treasury bonds and municipal bonds.? As you look at your retirement portfolio - hopefully diversified - which of the following categories has more of your money than any other?
An excellent article in The Wall Street Journal, A Hedge Fund Lurking in your 401(k) remarked how target date funds, often thought to be relatively easy to understand, are investing in increasingly complex ways.? While such investments can be beneficial - examples cited included less losses during a recent down market due to strategic shifts away from certain assets - the same strategies can be both more costly and more likely to under-perform during certain market conditions. Personally, it's another reason to consider index funds. What do you think?
by Wendy
(retirement-online.com)
I hate to repeat myself, but I Still cannot believe I am retired, let alone SIX MONTHS! I still can't believe I am happy, content with life, and don't worry about my employer in the least.
It's really and truly a good retired life -- if you can get yourself mentally there. Some folks seem to fall into happy retirements, many others struggle for months (and sometimes for a few years).
I think I'm fortunate that I do my websites. They keep me totally busy, occupied and challenged, and are making me a nice income too. Love it!
I've been so blessed to be able to sit in the hospital with mom and step dad over the past two weeks... with no worries. I'm retired and I can be there for them when they need me -- that feels good.
My husband works part-time still, and may retire soon too. He plays guitar at several church services each weekend, so learning new songs, practicing with the rest of the praise team, and playing on Sat/Sunday... is his hobby which will carry him into retirement.
Life is good.
I don't know if or when the middle class tax cut will pass.? President Obama wants to extend the current tax rate environment for singles that make less than $200,000 and families earning under $250,000. It's being called a tax-cut because, absent Congressional legislation, rates will rise on the middle class and wealthy on January 1, 2011.? Currently, the legislation is being held up because members of both parties believe it should be tied to other things, most notably an extension of the current rate environment to all taxpayers including the upper income contingent.? Not surprisingly, there is no consensus and it will interesting to see how it plays out.
My question - how will it affect your retirement planning? In other words, will a tax cut allow you to save more? Will the failure of rates to rise help you save more? After all, if rates do go up, one could expect to save less.
