Weekly Market Review
Michael Acho
Guardian of the Wealth of the Most Productive People on Earth | Creating, Protecting and Distributing Wealth for Clients
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Good afternoon,
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In social security news, the 2025 cost of living adjustment (COLA) has been announced and it will be 2.5%.
COLA adjustments are intended to help SS recipients keep pace with inflation. I could discuss whether the “official” measures of inflation are good representations of inflation. And/or whether the reported numbers are accurate. And/or whether the COLA is enough. And/or lots of other stuff, but I won’t. Because neither you nor I can do anything about them. Social security beneficiaries get what they get and next year that will be 2.5% higher.
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Here is Milton Friedman’s expert explanation of inflation. Any other definition that anyone tries to give you is wrong.
“Inflation is made in Washington because only Washington can create money. What produces it is too much government spending and too much government creation of money and nothing else.”
Inflation is not that things cost more, it’s that the dollars you use to buy them are worth less. It’s not due to greedy corporations or greedy dictators or climate change or fossil fuels or anything else other than government printing and spending. Until that is under control, inflation won’t be.
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“Nothing is so permanent as a temporary government program.” – Milton Friedman.
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And since social security is in the news, let’s take the opportunity to once again cover the most common questions people have. The following are examples of queries I get from clients. For a more thorough discussion of your own circumstances, click my calendar link below and schedule a call.
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Q. What exactly is social security?
A. A guaranteed, predictable, reliable, inflation protected stream of income that you cannot outlive. Sounds a lot like the features of certain annuities, doesn’t it?
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Q. Will social security be there for me?
A. Yes. If you’re getting it now or close to getting it, say 50 y/o or greater, you’ll get it and it will look a lot like it looks now. If you’re younger, you’ll get it, but it may look a little different.
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Q. How much will I get?
A. Depends upon your work history and earnings history. Go to www.ssa.gov and sign up, if you haven’t already. They will provide a statement which will indicate your expected benefit at various ages.
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Q. When should I start my benefits?
A. It depends, there are some variables to consider. Such as, how long do you plan to live? Are you still working? Do you need the money? Are you healthy? What is the best way to maximize your combined benefits with your spouse? And some others.
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Q. Will my benefits be enough to support me in retirement?
A. No.
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Q. Isn’t social security going broke?
A. Not broke per se, but there are some financing questions on the horizon. They will get worked out.
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Q. If my team doesn’t win the election, will the other team slash my benefits?
A. No. SS is a political third rail. You will not see a benefit reduction. Changes may be necessary for future beneficiaries, but not for current ones.
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Q. Can we talk about something else? I’m losing enthusiasm for this subject.
A. Sure.
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Q. How about this. What is Manfred Mann’s Earth Band actually singing in the chorus of “Blinded By The Light?”
A. “Revved up like a deuce, another runner in the night.”
And here is that classic tune, which BTW, was written by Bruce Springsteen in 1973, but became a much bigger hit for Manfred Mann’s Earth Band in 1977.
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This is a deuce, courtesy of ZZ Top.
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领英推荐
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?Only a short couple of weeks left before election 2024, THE MOST IMPORTANT ELECTION OF OUR LIFETIME!! (emphasis added) Or possibly not. Which means only a few weeks left of workshops titled something like “Market Views of the Election.” And “Election Year Insights.” And “Election Outlook.”
Which means that now I’m getting invited to events titled, “The Election is over…Now What?”? Ha! At least this one comes with a nice lunch attached.
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The Election is over... now what? IMPORTANT POST-ELECTION UPDATE Tax Planning in an Election Year November 13-14, 2024
Earn 2 MI, Insurance, CFP, CLU/ChFC, CFS, CIMA, CPA/CPE** Continuing Education Credits?
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Speaking of politics, this a recurring message that always bothers me.
When candidates, or elected officials, or pundits, or commentators, or really anyone else, claim that the “rich” should “pay their fair share.” As I’ve proven for years, the top tier income earners pay a disproportionately large percentage of all income taxes. That is simply a fact. #mathwins.
Here is your most recent proof, courtesy of the economics team at First Trust Portfolios,
The bottom half of income earners contribute only slightly more than zero of total income tax revenue. Here’s an idea that some people won’t like, but if you don’t pay any income tax, why should you get to vote? If you’re not contributing any resources, why do you get any say in how those resources are distributed? Just a thought.
It is also demonstrably false that teachers and firefighters pay a smaller percentage of their income in taxes than do billionaires. #mathwins again.
Please don’t take campaign rhetoric at face value. If it sounds like a questionable claim, it probably is.
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“The fact that so many successful politicians are such shameless liars is not only a reflection on them, it is also a reflection on us. When the people want the impossible, only liars can satisfy.” – Thomas Sowell.
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?This week’s comedian review is Ali Wong’s latest Netflix special “Single Lady.” Ali has been around for a while, both as a standup and an actress, so you’ve probably seen her in something over the years. I’ll preface the review by saying that I don’t dislike her but she’s also not on my “must see” list. This special was cute. Good, but not great. It was one hour of her describing life and dating after her divorce a couple of years ago. There were some funny bits and in general it was pleasant. I wouldn’t be in a hurry to watch is again nor do I think I’d pay up to see her in person. How’s that for middling review?
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This week’s chuckle is Zoltan Kaszas. He almost got killed in an uber.
Safe for work.
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LF30 – “Any person capable of angering you becomes your master.” – Epictetus.
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Have a great week and stay healthy.
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This material is for informational and educational purposes only. Opinions and forward-looking statements expressed are subject to change without notice.? Links to external content are provided for your convenience and for informational purposes only. They do not constitute an endorsement or approval by Osaic FA, Inc. nor does the firm receive compensation or remuneration for your access to such content. Osaic FA, Inc. bears no responsibility for the accuracy, legality, or substance of the external content or for that of any links within such content. The opinions expressed are those of Michael Acho and not necessarily those of Osaic FA, Inc. CRN-7189379-101524
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Michael J. Acho, MBA, CFP? Private Wealth Advisor --------------------------------------------------- Osaic FA, Inc. 20505 West 12 Mile Road Southfield, MI? 48076 248-948-5100 direct 248-948-5101 fax 248-933-4339 cell
947-258-0289 texts [email protected]
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