Biden fires head of Social Security Administration

President Biden on Friday fired Social Security Commissioner Andrew Saul, a holdover from the Trump administration, after Saul refused a request to resign from his position.

Biden fires head of Social Security Administration — https://thehill.com/homenews/administration/562342-biden-fires-head-of-social-security-administration

There will be more changes coming to social security.

Higher taxes, no doubt. But also improved benefits for those in need if I’m reading the Tarot cards correctly.

It’s Time to Revisit Social Security’s Early and Delayed Claiming Formulas

A study by the Center for Retirement Research at Boston College found that the delayed credit is still about right, with the exception of the highest earners, who tend to outlive actuarial averages and reap the highest extra benefit. Conversely, the group hurt the most are low-income filers, who tend to claim earlier and effectively are overcharged for doing so. Moreover, the increase in FRA from 65 to 67, enacted in the reforms of 1983, effectively increased the penalty for earlier files. Claimers with an FRA of 67 will receive five years of early filing reductions rather than three.

It’s Time to Revisit Social Security’s Early and Delayed Claiming Formulas — https://www.morningstar.com/articles/1029357/its-time-to-revisit-social-securitys-early-and-delayed-claiming-formulas

The first sentence from the above paragraph caught my eye. So I went on to the BC website.

People can claim Social Security from 62 to 70, with adjustments to keep lifetime benefits the same, on average, regardless of claiming age. The question is whether the adjustments, set decades ago, are still correct, given the decline in interest rates and increase in life expectancy. For the average worker, the analysis shows that the reduction for claiming early is currently too large while the increase for claiming late is about right.

Higher earners – who live longer and claim later – get a really good deal under the current system.

Are Social Security’s Actuarial Adjustments Still Correct? — https://crr.bc.edu/briefs/are-social-securitys-actuarial-adjustments-still-correct/

People with more money tend to live longer. People who defer claiming social security benefits until beyond FRA (full retirement age) are generally healthier, expect to live longer, and are financially secure enough to delay claiming. If the SSA decides to enhance benefits for early retirees it would be a good thing for a lot of people, especially those who have been severely impacted by the pandemic.

Wait Till 70 for Social Security? Nope

Schroders surveyed pre- and post-retirees 45 and older and found that only 10% planned to wait until 70 to claim benefits.

Wait Till 70 for Social Security? No Way, Say Most Americans: Survey — https://www.thinkadvisor.com/2021/06/24/wait-till-70-for-social-security-no-way-say-most-americans-survey/

It is painfully obvious to me that the majority of Americans are claiming benefits at both early and full retirement ages because they need the money and can’t afford to wait until age 70. Only healthy elders on financially sound footings will be deferring social security payments until their later years.

Yikes!

More Retirement Income Ahead!

Total individual life insurance policy sales increased 11% in the first quarter, compared with first quarter 2020. This is the highest growth in the number of policies sold in a quarter since 1983. New annualized premium also experienced significant growth, up 15% from prior year, according to LIMRA’s First Quarter U.S. Individual Life Insurance Sales Survey.

LIMRA: First Quarter U.S. Life Insurance Policy Sales Highest Since 1983 — https://www.limra.com/en/newsroom/news-releases/2021/limra-first-quarter-u.s.-life-insurance-policy-sales-highest-since-1983/

I don’t know who you are. I don’t know what you want. If you are looking for ransom, I can tell you I don’t have money. But what I do have are a very particular set of skills; skills I have acquired over a very long career. Skills that make me a nightmare for people like you.

Bryan Mills, played by Liam Neeson in the film Taken

I had my annual wellness visit earlier this week.

5.10 168 130/84 BMI 24.14 O2 sat 98%

CHOLESTEROL 175 mg/dL
TRIGLYCERIDE 69 mg/dL
HDL 65 mg/dL
LDL CALCULATED 96 mg/dL
NON-HDL CHOLESTEROL 110 mg/dL

All of my other labs were normal too.

I have multiple relatives who have lived well into their 90’s. My maternal grandmother lived to 100. I’m going to need another source of retirement income. And for all of my friends and colleagues who never thought I would make it this far…

AST 23 U/L

ALT 7 U/L

GGT 36 U/L (12/2015)

PSA 0.7 (9/2020)

Young People Driving Huge Life Insurance Application Gains: MIB

The third quarter experienced the largest quarter-over-quarter gain since 2011 at 9.2%, MIB said, driven primarily by 12.8% growth in 0-44 age group and 9.2% growth in 45-59 age group.

Young People Driving Huge Life Insurance Application Gains: MIB — https://insurancenewsnet.com/innarticle/young-people-driving-huge-life-insurance-application-gains-mib-says?utm_source=feedly&utm_medium=rss&utm_campaign=young-people-driving-huge-life-insurance-application-gains-mib-says#.X4DaDnV7nhc

How Dean Vagnozzi’s Clients Lost Bets On The Dead

Since financial adviser Dean Vagnozzi was charged with fraud in a government lawsuit in July, he has been castigated by regulators for how he steered customers to Par Funding, a Philadelphia lender founded by a twice-convicted felon. With his heavy radio advertising and free steak sales dinners, Vagnozzi, 51, touted alternatives to Wall Street.

Source: How Dean Vagnozzi’s Clients Lost Bets On The Dead

Actually the title to the original article is misleading.

Don’t bet on people dying to make your profits. Unfortunately some people do just that.

Life Partners founder Brian Pardo lived well in Waco, Texas, for a time. Pardo bought four planes and a yacht along with such artifacts as replicas of an ancient Egyptian sarcophagus and a pharaoh’s throne. His business eventually sold $2.4 billion in policies to 20,000 investors.

But in 2010 the Wall Street Journal reported that Pardo’s firm was relying heavily on an assembly-line doctor who was systematically under-predicting life expectancies. Life Partners’ sellers were living a lot longer than predicted — very good for them but hard on investors paying years of premiums without collecting death benefits,

https://insurancenewsnet.com/oarticle/how-clients-of-an-advisor-facing-fraud-complaint-lost-bets-on-the-dead?utm_source=feedly&utm_medium=rss&utm_campaign=how-clients-of-an-advisor-facing-fraud-complaint-lost-bets-on-the-dead#

I’ve never been a fan of the life settlement business.

Never accept one of those free steak dinner offers.

Life Insurance In The Age Of COVID-19

“I just didn’t think I needed it yet, and I’ve committed most of my financial resources to my business,” says Silkoff, 31, the president and co-founder of MyRoofingPal.com, an online marketplace that connects property owners with roofing contractors.

COVID-19, though, forced Silkoff to consider his mortality. “I don’t want to leave my wife in debt should something happen to me,” he says. “Also, during the slowdown, I had more time to do the research.” So Silkoff purchased a 10-year term life policy with $500,000 of coverage for about $30 a month.

Life Insurance In The Age Of COVID-19 — https://insurancenewsnet.com/oarticle/life-insurance-in-the-age-of-covid-19?utm_source=feedly&utm_medium=rss&utm_campaign=life-insurance-in-the-age-of-covid-19#.X1PyadR7nb0

A life insurance policy is an act of love.

Think about it.

Reevaluating Retirement Plans due to Covid-19

COVID-19 Has Many Americans Reevaluating Retirement Plans

Roughly two in five Americans (38%) say the COVID-19 pandemic has impacted their retirement plans by having to retire later than planned, now not being able to retire at all or being forced into retirement. Plus, 41% are currently reevaluating their retirement plans to assess the financial impact of COVID-19. These are among the findings revealed by a new COVID-19 Tax Survey conducted online in May 2020 by The Harris Poll on behalf of The Nationwide Retirement Institute® among U.S. adults 18+.  Heightened uncertainty and complexity are driving a need for greater financial protection. Roughly half of Americans agree that the COVID-19 pandemic has made them recognize the need for annuities to protect their investments against market risk (47%) and to protect their retirement income (48%). More than half of all U.S. adults (57%) and investors (60%) also say the pandemic has made them recognize the need for life insurance.

More survey results can be found in the full article at the link above.

The heightened uncertainty and complexity have definitely affected my own retirement plans.

The massive number of people out of work have definitely affected my own thoughts and feelings about work.

Retirement = work.

As long as my health holds up and as long as there’s someone out there willing to pay me to do what I do I plan on working.