The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. As we enter July, we welcome in Independence month, where we will be highlighting all of the benefits of working with an independent financial services firm like MONECO Advisors.
In this issue:
- Projected Increase in Social Security Benefits (3 min read)
- New Home Builders Pull Back (2 min read)
- The Future of Space Tourism (4 min read)
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Projected Increase in Social Security Benefits
The news keeps getting better for Social Security recipients.
It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant
increase since 1983.1,2
It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go
into effect in January 2022.3
More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher
costs. At the start of 2021, recipients saw a 1.3% increase.4
The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S.
workers in 2021.4,5
Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive. If you have any questions, please reach out. We have a number of resources at our fingertips that you may find helpful.6
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New Home Builders Pull Back
Over the past year, the housing market has been red hot, as many fled urban areas due to the pandemic. This combined with low mortgage rates has made buying a new home easier than ever, if you have the money to pay a premium because supply is so tight. More recently, builders of new homes are starting to scale back on permits, which is correlated with how much future construction will take place. Some of the variables they are dealing with is higher building costs and lack of labor. If you are looking for a new home and want to see how it may impact your overall financial plan, do not hesitate to reach out.
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The Future Of Space Tourism
Now that both Richard Branson and Jeff Bezos have successfully completed missions to the edge of space, what will this mean for the future of space tourism? Both share the vision that sooner rather than later, millions of people will be living and working in space to benefit Earth. What are your thoughts?
Click here to read the full article
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1. Fortune.com, July 15, 2021
2. SeniorsLeague.org, May 12, 2021
3. InvestmentNews.com, July 13, 2021
4. SSA.gov, June 2021
5. SHRM.org, June 2021
6. FinancialAdvisorIQ.com, July 19, 2021
The forecasts for Social Security benefits are based on assumptions, subject to revision without notice, and may not materialize.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisor the purchase or sale of any security. The opinions expressed and material provided are for general information and should not be considered a solicitation.