Congress Kills Popular Social Security Claiming Strategies
This past week Congress compromised and settled on a budget deal that included some major changes to Social Security. Deep in the bill was the unwelcome news that Congress has closed some very popular Social Security claiming strategies. The so-called File & Suspend and the Restricted Application strategies will no longer be available as of April 30, 2016.
There is a six month window of opportunity right now for a certain group of people to take full advantage of the current claiming strategies. But the time to act is now before it is too late.
My program this week focuses on the changes and how they will impact people. This is a major change to claiming strategies that will significantly reduce the planning opportunities for most Americans. REMEMBER – these changes do not effect anyone who is already receiving Social Security benefits.
I have included a copy of a chart that outlines what the coming changes are:
Social Security Claiming Strategies
Below is a podcast of the program this week. I hope you enjoy it. – Gary
Wall Street Fails to Deliver on its Only Promise
Investing is often portrayed as a complicated and mysterious process. It certainly is confusing for most people to understand what is going on. Wall Street is notorious for speaking a different language that no one outside of the club understands. In the wake of the recent financial crisis, we found out that Wall Street titans also claim they do not know what is going on either. That was their defense when grilled by regulators and politicians who were looking for blame. They honestly said, we really did not understand the products being developed by our own firms. We did not realize how risky they were and so on.
No wonder people will throw up their hands and say, I don’t get it. Well, I have a different way at looking at things. I tend to ignore what Wall Street says and simply focus on what they do. What I mean by that is the following. They can certainly spin a complicated tale about how talented, experienced and good they are, but that is worthless to me. Instead, I focus on something more relevant to my needs. How did they do delivering on their promise of beating financial markets?
One can talk a good game, but ultimately, you have to play. In Wall Street’s case, active management is their promise of beating the market. Unfortunately, the record is abysmal for the mighty on Wall Street. Study after study concludes that active management after taking into account their expenses fails to deliver on its singular promise for existing. They fail to beat the market on a risk-adjusted and after cost basis. People can spin the tail, provide excuses for why they came up short, but in the end… the story is the same. Active management fails to stand up against market rates of return.
On the program this week I spend time chatting about:
Segment One – Failure of Active Management
Segment Two – The incredible pay of active managers
Segment Three – A case study of active management failure
Segment Four – Social Security high-jinx
I hope you enjoy the show!