Cost Of Living Adjustments

Discussion in 'Money & Finances' started by Sheldon Scott, Oct 18, 2016.

  1. Lois Winters

    Lois Winters Veteran Member
    Registered

    Joined:
    Oct 30, 2019
    Messages:
    5,188
    Likes Received:
    7,937
    What a paltry raise.
     
    #91
    Bobby Cole likes this.
  2. Bobby Cole

    Bobby Cole Supreme Member
    Task Force Registered

    Joined:
    Jan 21, 2015
    Messages:
    13,053
    Likes Received:
    24,624
    It may be a small increase but we do have to look on the bright side; we went for 4 or 5 years without a raise at all prior to the Trump administration. The year before all the blank years my wife got a whole $1.00 and I received $3.00 even though the cost of living was skyrocketing.
     
    #92
    Lois Winters likes this.
  3. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    I got notification of the COLA increase for 2021 today. I was more thrilled to see that our medicare premiums are dropping from $289 a month (each) to $148.50. After the dust settled with IRA rollovers in previous years we are finally getting a break.
     
    #93
    Bobby Cole and Lon Tanner like this.
  4. Al Amoling

    Al Amoling Veteran Member
    Registered

    Joined:
    Aug 20, 2016
    Messages:
    4,555
    Likes Received:
    8,376
    I just cost my SS Cola notice. IT's a whopping 1.3% increase.
    My medicare premium for 2020 was $144.60 and for 2021 will be $148.50
     
    #94
    Last edited: Dec 2, 2020
    Frank Sanoica likes this.
  5. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    It truly cheesed me that a single investment (IRA) rollover in 2018 cost us an additional $3468 in Medicare premiums this year. :mad: So the lessons we have learned is that we worked for a lifetime to accrue a little money, and the government has worked equally hard to take it away from us.
     
    #95
    Frank Sanoica likes this.
  6. Frank Sanoica

    Frank Sanoica Supreme Member
    Registered

    Joined:
    Feb 21, 2016
    Messages:
    9,297
    Likes Received:
    10,619
    @Beth Gallagher

    This would really tic me! Please explain, if you feel like it, how the IRA worked. We had no plans in place of any kind, save for the pension provided me by Sears and Dana Corp., in which they contributed a buck for each dollar I put in, up to 5% of salary, max. This provides me with $62 and $97 each, monthly, Sears & Dana, for life.

    My -ex was laid off suddenly from the hair salon at the Mirage Hotel, after 20+ years service, when Steve Wynn sold out and new owners re-staffed it. She had a mortgage remaining on her home, living alone, and I advised her to pay it off with 401K proceeds (which she had, but I was also ignorant of workings). She kept the house, and receives (I guess) a pension and S/S benefits.

    I have always been dubious of government instituted "savings" plans, having seen the royal screwing of Americans. Both companies strongly urged me to engage in them, but I stubbornly refused. Did I lose anything?

    Frank
     
    #96
  7. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    I certainly couldn't say whether you "lost" anything or not, Frank. Far too many variables for my little mind.

    We had before-tax money invested in retirement funds and company stock, Frank. Which means that the money was invested before we paid income tax on it as earned income. The premise being that at the time the money would be withdrawn after retirement, a person would likely be in a lower income tax bracket and owe less taxes. Add to that something I was not familiar with, called an "NUA" which provides reduced taxes on "Net Unrealized Appreciation", or the difference between average cost-basis of stocks and the current market value.

    So our investment counselor advised to take advantage of the NUA for income tax purposes (capital gains) at the end of 2018, which was all well and good; unfortunately the transaction had other ramifications such as the increase in our Medicare premiums for 2020. :confused: So I'm sure the entire thing is structured so that the investor doesn't ever catch a break.
     
    #97
    Last edited: Dec 3, 2020
    Frank Sanoica likes this.
  8. Frank Sanoica

    Frank Sanoica Supreme Member
    Registered

    Joined:
    Feb 21, 2016
    Messages:
    9,297
    Likes Received:
    10,619
    @Beth Gallagher

    I've heard of "deferred tax" plans, and the concept is sound, IF the individual having the plan in the end is destitute (unlikely, as the Feds know). Plus, during all those years of sitting accumulating "value", they can raise tax rates, not sparing the investment plans.

    Frank
     
    #98
    Beth Gallagher likes this.
  9. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    Exactly.
     
    #99
  10. Lon Tanner

    Lon Tanner Supreme Member
    Registered

    Joined:
    Apr 14, 2016
    Messages:
    5,596
    Likes Received:
    5,314
    Social Security gave those of us on SS a VERY modest increase. How about those on different company Pensions?
     
    #100
  11. Bill Boggs

    Bill Boggs Supreme Member
    Registered

    Joined:
    May 13, 2015
    Messages:
    5,747
    Likes Received:
    7,721
    No. I stays the same.
     
    #101
  12. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    I took my pension as a lump sum and made other investments with it.
     
    #102
  13. Herb Durant

    Herb Durant Very Well-Known Member
    Registered

    Joined:
    Dec 20, 2020
    Messages:
    490
    Likes Received:
    366
    Is pension money considered income in the US ?
     
    #103
  14. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    Yes, though it may be tax-deferred if a lump sum is rolled over into an IRA. It is then taxed on distributions.
     
    #104
    Herb Durant likes this.
  15. Beth Gallagher

    Beth Gallagher Supreme Member
    Registered

    Joined:
    Jan 11, 2018
    Messages:
    20,309
    Likes Received:
    42,296
    #105
    Von Jones and Don Alaska like this.

Share This Page