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10-16-2008, 07:12 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Guvmint COLA up 5.8%
Social Security benefits going up by 5.8 percent
By MARTIN CRUTSINGER – 26 minutes ago
WASHINGTON (AP) — Social Security benefits for 50 million people will be go up 5.8 percent next year, the largest increase in more than a quarter century.
The increase, which will start in January, was announced Thursday by the Social Security Administration. It will mean an additional $63 per month for the average retiree.
The increase is the largest since a 7.4 percent jump in 1982 and is more than double the 2.3 percent rise that retirees got in their monthly checks starting in January of this year.
The typical retiree's monthly check will go from $1,090 currently to $1,153.
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10-16-2008, 08:21 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,543
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next year with deflation and all we are going to take money away
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10-16-2008, 08:32 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Applies to Military Retired Pay and will also be applied to VA Disability Benefits (although the VA usually takes it's time about acknowledging the increase).
Al - The SS and Military Retired pay (including VA) does NOT go backwards. 0 increase is the lowest it can go.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
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10-16-2008, 08:46 AM
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#5
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Not work and get 5.8% or work and (in my case) get 2%. Hmmm....
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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10-16-2008, 08:47 AM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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 Quote:
Originally Posted by al_bundy
next year with deflation and all we are going to take money away
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No -- deflation means the COLA is zero. And the return on I-bonds and TIPS can never be negative, either.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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10-16-2008, 10:55 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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Quote:
Originally Posted by JPatrick
Social Security benefits going up by 5.8 percent
By MARTIN CRUTSINGER – 26 minutes ago
WASHINGTON (AP) — Social Security benefits for 50 million people will be go up 5.8 percent next year, the largest increase in more than a quarter century.
The increase, which will start in January, was announced Thursday by the Social Security Administration. It will mean an additional $63 per month for the average retiree.
The increase is the largest since a 7.4 percent jump in 1982 and is more than double the 2.3 percent rise that retirees got in their monthly checks starting in January of this year.
The typical retiree's monthly check will go from $1,090 currently to $1,153.
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Anybody know how this rate relates to the TIP/I-bond inflation rate due 12/1/08?
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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10-16-2008, 11:28 AM
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#10
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Quote:
Originally Posted by deepc
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um...gotta ask this one... 
i own a small I bond ladder, all purchased between 2003-05.
does the inflation component referenced above (2008 value) only apply to I bonds purchased NOW or any purchased anytime in the past?
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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10-16-2008, 11:32 AM
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#11
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by freebird5825
um...gotta ask this one...
i own a small I bond ladder, all purchased between 2003-05.
does the inflation component referenced above (2008 value) only apply to I bonds purchased NOW or any purchased anytime in the past? |
ALL I-bonds get the same inflation adjustment. Only the fixed rate is different.
Mine are from 2000, with a 3.4% fixed rate. Dang, I wish I could have afforded more of them at the time.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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10-16-2008, 11:32 AM
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#12
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Quote:
Originally Posted by ziggy29
Not work and get 5.8% or work and (in my case) get 2%. Hmmm....
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plus not pay the usual payroll deductions  and then maybe have to pay even more taxes every April.
plus never set the alarm clock, nor fight commuter traffic, nor deal with co-w*rkers with BO, nor...
life eez good, yes?
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"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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10-16-2008, 11:35 AM
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#13
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 347
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__________________
USCG regulations say you have to go out. They don't say anything about coming back.
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10-16-2008, 11:35 AM
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#14
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Quote:
Originally Posted by ziggy29
ALL I-bonds get the same inflation adjustment. Only the fixed rate is different.
Mine are from 2000, with a 3.4% fixed rate. Dang, I wish I could have afforded more of them at the time.
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thanks!
i bought 1 every month, $100 each, for 33 months. a very small stake but loving it now. i need to look up my fixed rate once i figure out how to use my new treasury direct account number. i'm FIREd so i haven't gotten a round TUIT yet.
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"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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10-16-2008, 11:41 AM
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#15
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by freebird5825
thanks!
i bought 1 every month, $100 each, for 33 months. a very small stake but loving it now. i need to look up my fixed rate once i figure out how to use my new treasury direct account number. i'm FIREd so i haven't gotten a round TUIT yet. |
Looking at mine from 2000, I can't do much better than a safe, tax-deferred 8.32% in the months to come. In hindsight I should have begged, borrowed or stolen to buy more.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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10-16-2008, 12:38 PM
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#16
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Quote:
Originally Posted by ziggy29
Looking at mine from 2000, I can't do much better than a safe, tax-deferred 8.32% in the months to come. In hindsight I should have begged, borrowed or stolen to buy more.
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ok, made me look! i also found my round TUIT. LOL
i was mistaken - i bought between May 04 to Jan 07.
current interest rates range from (specific months in years listed are omitted on purpose)
5.86% (04-05)
6.07% (05)
5.86% (05-06)
6.27% (06-07)
i would NEVER in a zillion years think i would be here crowing about US govt I bonds beating out my mutual funds. i have noticed the dividend yield YTD has moved up a bit on my stock mutual funds. small consolation, big whoo.
and in spite of the beating munis are taking, they are paying some rather nice TE dividends.
i sound like a dyed in the wool income investor. 
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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10-16-2008, 02:20 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Quote:
Originally Posted by deepc
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Wonder if they will budge off that 0.00% fixed rate in November..If they would do 1% or so the new I-Bonds might look good unless you think we have entered a delation zone.
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10-16-2008, 04:02 PM
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#18
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Recycles dryer sheets
Join Date: Apr 2008
Posts: 125
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Can't see them moving off that rate. Figure they need to keep capital moving to banks/etc and not the govt, inflation is a real possibility, and they've already implemented ridiculously low buy limits anyway.
Good discussion of this point on that Savings Bond Advisor site.
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10-16-2008, 10:09 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
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Don't get too excited about the COLA, I hear health insurance is increasing 18%.
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Duck bjorn.
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10-16-2008, 10:24 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Posts: 1,901
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Quote:
Originally Posted by Brat
Don't get too excited about the COLA, I hear health insurance is increasing 18%.
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The Medicare premium is not increasing for 2009.
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“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
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