{"id":448,"date":"2020-10-19T00:00:00","date_gmt":"2020-10-19T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2020\/10\/19\/election-exhausting\/"},"modified":"2020-10-19T00:00:00","modified_gmt":"2020-10-19T00:00:00","slug":"election-exhausting","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/election-exhausting","title":{"rendered":"Election = Exhausting!"},"content":{"rendered":"

I don\u2019t know how you feel, however I\u2019m looking forward to this election being over.\u00a0 Hopefully shortly after November 3rd<\/sup>!!<\/p>\n

\"\"The markets don\u2019t appear to care about the election for now, as the focus remains on stimulus.\u00a0 It doesn\u2019t matter whether before or after the election, as long as it is passed, and it\u2019s large.\u00a0 Seems to me, with much less people out of work than prior to the last stimulus, perhaps we can target these funds more efficiently to those truly suffering from the Coronavirus.\u00a0 Hey, we\u2019re now over 27 Trillion in debt.\u00a0 The 2020 fiscal year for our Federal Government ended September 30th<\/sup> has us spending over 6 Trillion for the year, while collecting over $3 Trillion in tax revenue.\u00a0 Now that is deficit spending!!!<\/p>\n

Markets Flattish<\/strong><\/p>\n

For the week, the Dow Jones rose .07%, the S&P 500 .21% and the Nasdaq Composite led the way, moving up .79%.\u00a0 The Russell 2000 broke a hot streak, retreating (.22%) for the week.<\/p>\n

Over the pond, the developed markets are seeing a Coronavirus spike in cases which led to their markets moving down (1.45%).\u00a0 Emerging markets on the other hand, rose .15%.<\/p>\n

Bond yields remain range bound with the 10 Year US Treasury ending the week with a yield of .74%.<\/p>\n

Social Security 2021\/C<\/strong>OLA and Taxes<\/strong><\/p>\n

Social Security checks<\/strong> will increase by 1.3% for 2021<\/strong>.\u00a0 The adjustment will take effect in December, and appear on January checks.\u00a0 The increase is based on the yearly increase in the Consumer Price Index for Urban Wage Earners & Clerical Workers (CPI-U).\u00a0 We should know how much those over 65 will get to keep, after Medicare announces the 2021 Part B premium within a few weeks.\u00a0 Part B comes directly out of Social Security checks!<\/p>\n

As you\u2019re aware, earned income is subject to Social Security\/Medicare Tax (FICA).\u00a0\u00a0 7.65% is the total percentage with 6.2% for Social Security and 1.45% for Medicare.\u00a0 The 6.2% is capped at the \u201cwage base\u201d, which is $137,700 for 2020.\u00a0 The wage base will increase to $142,800<\/strong> increasing the annual employee max by $316.20.\u00a0 Those that earn the wage base or more will pay a total of $8,853.60. \"\"<\/p>\n

Medicare\u2019s 1.45% tax does not have a wage base, so you pay the % on all earned income.<\/p>\n

Keep in mind, employers are required to match your total FICA taxes, dollar for dollar.<\/p>\n

Medicare<\/strong><\/p>\n

Just a reminder, if you have a Part D Prescription Drug<\/strong> plan you can shop it between now and December 7th<\/sup>.\u00a0 I\u2019ve been reading where companies have increased premiums on existing plans while offering lower priced plans to new customers.\u00a0\u00a0 If you don\u2019t shop, you may find out in January, you\u2019re paying more in out of pocket costs and now stuck until 2022!<\/p>\n

So, you think the Social Security system needs attention?\u00a0 What about Medicare?\u00a0 It was announced the trust fund (HI Trust Fund) that finances Medicare Part A (Hospitalization) will run out of money in 2024, 2 years sooner than previously projected.\u00a0 More on this in future blogs\u2026..<\/p>\n

See below for a 90 second video on choosing Medicare coverage when you Retire:<\/p>\n