After nearly a six-year run higher from the depths of the Financial Crisis of 2007-2008, the stock market continues to defy gravity. This month's update focuses on several interesting, and somewhat counter intitutive points about where we are and where we are headed.
The Social Security Administration recently published their annual update to Medicare. For 2015, notable changes include cost increases across the board for Part A (hospital insurance) and Part D (perscription drug coverage). Those on Medicare receive some reprieve from the higher cost as Part B (medical insurance) avoided any increase for 2015.
The Social Security Adminstration has recently released the annual update to its programs. One of the most anticipated numbers is the Cost-of-Living adjustment that impacts all persons currently receiving benefits. Given the rather anemic rate of inflation in our economy over the past several years, it's a wonder retirees are getting any increase, let alone a bump higher by 1.7%!
Fox 31 News Denver stopped by Infinium's office today to speak to me about the ever-rising cost of raising a child. After reading over the USDA report, the most shocking fact was the $250k+ number they quoted up to age 18 didn't even include the cost of college! So tack on an additional $50-$100k in today's dollars (or even more for out-of-state or private) and you come up with a really big number.
Michael Aronstein is one of our favorite money managers mostly because he is so pragmatic and debunks a lot of the myths in the financial markets. He tries to pay attention to only those data points that matter, and forget about everything else. He has a venerable track record and is always full of tons of market wisdom. The link below is to an interview he recently gave to Bloomberg where he lays out the case for why the Fed is always behind the curve and is a lagging indicator, not a leading indicator of what is to come:
All of the bickering in Washington over the Fiscal Cliff actually resulted in a new and interesting option for 401k (457, 403b, etc.) savers -- the ability to convert an existing company-sponsored retirement plan into a Roth retirement plan.
Today, more than ever, we are all becoming more responsible for our own retirement. Gone are the days when a fat company pension and social security coddled us in a blanket of financial security. This momumental change in the personal financial planning landscape means we must pay more attention to the avenues available to us for retirement savings.