No Favors for Seniors
1. Historically low interest rate returns – gone are the days when a retired person could invest safely in a five year CD and draw 5% interest without having to worry about losing money. Imagine if you were savvy enough to have saved one million dollars, and if given to a bank CD, would have to live on 1% or $10,000 annual return. For many of us that would not even cover the property tax bill!
2. Gone are the days when an annual boost in their Social Security helped combat real cost of living increases. It was recently announced there will be NO CHANGE in Social Security recipient checks in 2016.
3. Property taxes keep going up significantly to pay promised pensions and other unfunded government promises. Look out if you live in Cook County as the mayor is hoping to push through the biggest property tax increase in history. Emanuel set to call for largest property tax hike in modern Chicago history
4. Look out for Medicare premiums to jump in 2016 as it was just announced that rates were going up by as much as 52% next year! Retiree Budget-Buster: Big Price Hikes for Medicare Premiums in 2016
- moving to a low property tax state
- creating a diversified portfolio that will generate more income while still allowing you to sleep well
- wait longer to file for social security if possible or keep working in some capacity
Of course you should customize your plan and probably run several “What if ___________” scenarios to get a better handle on your financial future.
Feel Free to call (630-942-9007) our office if you need help with retirement planning.
Do my “senior” readers have any suggestions they would like to share?
If so, please comment below.