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3 Social Security Changes You Probably Didn’t Know About 

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Social Security was created to give a safety net for retired Americans. While it has kept many people away from poverty and provides life-saving financial help, the program has changed a lot – and many of those changes are bad. Here are three changes you might not have been told about that could ruin the value of your benefits.

1. Benefits now cut for most retirees

When Social Security was formed, the age of retirement was set at 65. This is the age you are allowed to get your benefits without penalties for collecting your benefits too early.

But this age is not 65 anymore. In fact, if you were born after 1943, your retirement age is between 66 and 67, depending on the year you were born.

This change happened when Congress changed the laws in 1983. But many are not really aware of it, because the retirement age was pulled-back slowly. Now, due to this shift, every person born after 1943 essentially got a benefit cut. They either need to retire later, or accept the penalties.

2. Lower buying power

The program has also changed in an even worse way. Social Security benefits have lost purchasing power. And the program’s routine raises have not kept pace with the inflation that retirees face on a daily basis. The calculations used to find the cost of living adjustments (COLAs) does not accurately track the fact that seniors spend a large part of their income on housing and healthcare, both of which rise faster in pricing than other types of spending.

 

The result is that your benefits have lost up to 30% of their value in only two decades. Sadly, because there was no new law that caused this, most don’t know about it.

3. The IRS is removing its cut

Your Social Security benefits are not taxed until your qualifying income hits a certain amount.

But the limit at which your benefits are taxable is not linked to inflation. This means as our incomes increase from inflation, a larger number of retirees will see they are now being taxed on their Social Security earnings.

Many seniors (as many as 50%) have already been hit with this problem, and the number grows every year.

 

Author: Steven Sinclaire
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Round Three Of Stimulus Checks Are Here — Will You Get One?

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A fourth stimulus check could be possible, it does not seem likely. Yet there is a new $3,600 relief benefit for many Americans that will be on its way in July.

New monthly payments will be given out as part of the expanded child credit of $3,600 per child for families, essentially making a “fourth” stimulus, which is monthly instead of all at once. Under Biden’s new American Rescue Plan Act from 2021, the child tax credit was increased to $3,600 for each child under 6 and $3,000 for children aged 6-17. Previously, this money only applied to kids under 17.

Taxpayers will get half of this credit in the form of monthly payments. This means that for July through December, tax payers will get $250 to $300 per month for each child. Taxpayers will get the remaining half at the end of the year, on their 2021 returns.

Taxpayers making less than $75,000 per year, or $150,000 for couples can get the full credit. The credit will be lowered by $50 per $1,000 of income higher than those amounts.

It is important that you ensure your filing information is correct with the IRS, because using outdated information could trigger an over-payment, which would mean having to back the excess funds at tax time.

Author: Blake Ambrose
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Warren Buffett Predicts Breathtaking Market Changes

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Legendary investor Warren Buffett stated over the weekend that near-zero interest rates have changed the financial world, warning that the results of easy money are an unanswered question.

As the pandemic took over the US last year, the central bank cut interest rates to almost zero and started quickly buying assets to stop another financial crisis.

Among their purchases was government debt. Those steps allowed both the Trump and Biden White Houses to give debt at lower rates, to fund the large relief programs that pushed trillions to households and companies.

“It causes businesses to grow, stocks to rise, causes voters to be happy, and we will see if it leads to anything else,” Buffett said during his annual shareholder meeting, which was put on virtually.

The Fed has stated it will keep its policy until the recovery displays signs of much greater progress.

Buffett told the audience that the effect of almost-zero short-term interest has given an “incredible alteration in the value of everything” because of the lowered incentive to have risk-free government debt.

He gave the example of keep $100 billion in short-term Treasury bills, which would now give around $20 million with a yield of two points. Before covid, Buffett said that would have given around $1.5 billion per year.

“There is a huge change,” Buffett said. “It was designed for that — the fed moved because they wanted a massive push.”

That push has given higher yielding assets, from tech companies to SPACs.

Who will win and lose?

Buffett said low rates cause stocks to look like “bargains.” This is because higher interest rates would erode a company’s cash flows.

“Interest rates do to the price of assets what gravity does to matter,” Buffett said, “if you could lower gravity by 80%, I would be at the Olympics jumping.”

Cheap borrowing also aids households and businesses which have been hurt by the pandemic, the same targets of relief bills.

The companies who would lose from low rates, according to Buffett, are the banks that had to lower their interest rates. During the worst part of the pandemic, Buffett sold his holdings in banks such as Goldman Sachs (GS) and JPMorgan Chase (JPM).

Buffett said he still likes banks “overall,” but wished to lower his exposure to the risks that he now admits did not fully show.

“We will see where everything leads, but we consider it the most intriguing movie we have ever seen, in relation to economics,” Buffett said.

Author: Blake Ambrose
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Biden Instantly Destroys The Future Of Social Security

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Social Security was not exactly a top issue during the presidential race. Coronavirus controlled the headlines. But for 1 in 6 who get benefits, Social Security is on top of everyone’s mind.

President Biden’s program included numerous proposals that might raise Social Security for some people. But the real topic for those won’t get these benefits for at least ten years is: What will Biden do to guarantee the program’s solvency?

Social Security has started giving out more funds than it is bringing in. The OASI Fund, which gives retirement benefits, has enough to keep benefits through 2034. But longer than that, taxes will only give 76% of the needed funds to keep Social Security afloat.

Biden has not revealed details about his program since he entered the White House. But his team has said this about Social Security: “The Biden Plan will give Social Security a path to solvency by requesting that tax payers with high wages contribute the same taxes that middle-class Americans pay.”

But which people will pay these higher taxes, and will it be enough?

Can a tax increase save Social Security?

Workers give Social Security on their first $142,800 of wages in 2021, though that number rises every year. Biden promised during his campaign not to increase taxes on people making under $400,000, but also said he wanted to enact Social Security taxes on income higher than $400,000.

The program would form what some are calling a “doughnut hole” for Social Security, where wages over $142,800 but below $400,000 are not taxed. But the hole would decrease as the $142,800 cap rises each year.

Biden’s idea would bring in around $740 billion for Social Security over 10 years. The Urban Institute says that, if passed, the measure would extend solvency only by five years.

The truth: Biden’s program would not be enough to fix the problem.

Will Social Security be there for you?

Social Security will not disappear. If nothing changes, S.S. will still give 76% of its needed funds from payroll taxes.

But nothing President Biden is proposing will be the solution. Fixing the problem might require raising Social Security taxes for people with working-class salaries or increasing the retirement age for younger generations.

Even if you believe you will get 100% of your Social Security benefit, it is essential to keep in mind that living only on those checks is very difficult.

 

Author: Steven Sinclaire
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Brand New Cryptocurrency Approaches Record Gains

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The Dogecoin (DOGE) price has lowered since hitting its all-time record but bounced again recently. The cryptocurrency is expected by many to keep increasing and eventually reach another all-time high.

Between April 15-16, DOGE increased by 250%, putting it at a record of $0.45. However, the price then fell soon afterwards.

The decrease kept going until April 23, ending at a low of $0.169. After this, DOGE formed a hammer candlestick with a big lower wick—which is said to be a good sign of buying pressure. The price has been trending upwards since and technical indicators are bullish.

Trader @Altstreetbet showed a DOGE chart, saying that the next increase will likely take the cryptocurrency to a new high of over $0.55. If the A-B-C structure happens, then DOGE will start an impulsive move upwards afterwards.

The movement for DOGE/BTC looks close to DOGE/USD, with the one distinction being that the correction was an irregular flat.

If the two keep going up, the next resistance could be at 982 satoshis. This number is derived by using the 1.61 external Fib retracement from the recent lower movement.

DOGE has possibly started a new bullish move and might increase toward another all-time high.

Author: Steven Sinclaire
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Bitcoin’s Top Competitor Dethrones a Precious Metal

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Ethereum (ETH), the number two cryptocurrency by market cap, has been increasing even more than Bitcoin (BTC) over the previous couple of days.

Hours ago, the price of the cryptocurrency reached a record to new all-time highs at $2,741. ETH was trading at about $2,730, making its market cap nearly $315 billion.

The Bitcoin competitor is now almost breaking into the top 30 most valuable global assets.

Ethereum (ETH) Beats Platinum

Ethereum (ETH) is now the 33rd most valuable global asset, beating the market cap of Platinum.

Based on a Cointelegraph report, the overall capitalization of precious metal platinum is at $303 billion. This is from from an analysis of the metal’s cumulative mining since 1900.

Ytd, Platinum has beaten other precious metals, including silver and gold, but can’t beat the momentum of Ethereum (ETH) and other cryptocurrencies.

Ethereum seems to be in the middle of an unusual bull run. Even Bitcoin is not matching ETH’s increasing trend ytd. More challenges are expected to show for the cryptocurrency which is pushing to attain new milestones.

Since the first day of 2021, Ethereum (ETH) has increased more than 350% amidst the large increase in adoption of cryptocurrencies and the hope of a big reduction in gas fees through the use of its new EIP-1559 implementation.

The current upside trend of ETH has also lowered Bitcoin’s dominance substantially. Ethereum now is around 15% of the crypto world, while Bitcoin is at 50%.

Author: Blake Ambrose
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7 Reasons This Is The Best Retirement Investment

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The beauty of having dividend-paying stocks is that you don’t have to give up income for retirement: Your dividend does not depend on you going to the office every day.

That’s only one reason for adding dividends to your strategy for retirement. Continue on for seven more reasons why dividend stocks are the MVPs of every smart investor’s retirement.

1. Comforting

In a downturn, good dividend payers are the bright points in your portfolio. They might take a temporary hit on their share price, but they still give you cash. When other positions you own are losing money, you will appreciate these little payments for the psychological comfort they provide.

2. Dividend yields vs Treasury maturities

A good dividend stock could yield 1% to 3% per year. Consumer company Colgate-Palmolive (CL) gives 2.28%, for example; McDonald’s  (MCD) gives 2.20%, and pharmaceutical giant Johnson & Johnson (JNJ) yields 2.49%.

These numbers are comparable to the yields on 20-year Treasury bonds. But short maturity Treasury yields are not so competitive. Seven- to 10-year bonds give between 1% and 1.8%, and five year maturities are under 1%.

3. Dividends and retirement accounts

You can accumulate a larger stake in dividend stocks by reinvesting the payments in the years before your retirement. That’s far more easy in a retirement account where you pay no taxes.

4. Dividends and inflation

Some dividend companies increase their payments every year. Those that grant annual dividend increases for more than 25 years in a row are rare gems. Once a company gets into this level of dividend, the executive team is very motivated to maintain it. Which is great because the rising dividend helps you combat inflationary increases in your living expenses during retirement.

5. Consistent dividends

Since we are talking about dependable dividend companies, take a moment to consider the achievement of raising dividends for 25 years or more. That takes a focused executive team as well as a good business model that produces plenty of cash. Those same benefits make good dividend stocks great as long-term parts of your portfolio.

6. Dividends and appreciation

Unlike bonds, your dividend stocks also increase while they are giving you cash. For instance, McDonald’s, Colgate-Palmolive, and J&J have all three had average annual gains of 9% over the past decade.

 

7. Dividends and cash

Dividend companies give you cash, and that is crucial to ensuring your retirement in comfortable. When you use your dividends to fund your retirement distributions, you’ll be less dependent on liquidations. Fewer liquidations will maintain your earnings power and lower your risk of selling your investments at a bad time.

Reliability and stability

 

There is no guarantee any company will keep paying you a dividend, just as there is no certainty any stock will increase. To avoid these risks, you have to stay out of the market completely, which could mean missing out on your retirement goals.

Dividend payers are not without risk, but they are more reliable and stable than their peers that don’t give dividends. And those are the benefits you want from these retirement MVPs.

 

Author: Blake Ambrose
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The Best $300 Dividend Stocks

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You don’t need a lot of cash to start investing. And buying stocks that give you good dividends means you can get money on a routine basis to buy more investments.

There are two crucial things to look for when investigating dividends. The dividend yield percentage, which is the stock’s dividend divided by its share price. And the ability of the company in question to keep paying and raising its dividends.

Our top picks that give both of these, and can be bought with just $300 are listed below:

AbbVie

You can buy one share of AbbVie (ABBV) for about $111. The drugmaking heavyweight pays you well to be a stock holder. AbbVie’s yield is at around 4.7%.

The odds seem good that AbbVie’s dividends will keep growing. The company has boosted its dividend for 49 years in a row. It’s only one dividend increase away from joining the top elite of dividend royalty of companies who have increased their dividend for 50 consecutive years.

There are a some issues to know about with AbbVie. The firm’s top drug, Humira, loses its patent exclusivity in 2023. Also, the FDA has delayed its reviews of Rinvoq in treating psoriatic arthritis and dermatitis. AbbVie is counting on the autoimmune drug to help offset the loss of sales from Humira.

 

However, AbbVie is still confident about the potential for FDA approval of Rinvoq. The drug has already received FDA approval for rheumatoid arthritis uses. Assuming this drug and others in AbbVie’s product line meet their potential, the company is anticipated to keep growing even after Humira loses its patent.

Pfizer

Pfizer’s (PFE) price is under $40 currently. Its yields are almost 4%. Note, however, the pharma giant will soon cut its dividend.

You shouldn’t be concerned about this. It’s being done in combination with Viatris starting a dividend. Viatris was created in November 2020 through the merger of Mylan and Pfizer’s Upjohn sector. Pfizer’s dividend will only be lowered by a small amount.

 

Pfizer seems to be in a great position to boost its dividend. Its potential for recurring revenue from its COVID vaccine are also looking much better. The drugmaker and BioNTech recently agreed with the European Union (EU) to deliver 100 million more doses of their vaccine, bringing the overall supply to 600 million doses. The two firms are also talking with the EU to give another 1.8 billion doses between now and 2023.

Verizon

Verizon Communications’ (VZ) price is below $60. The company’s dividend yield is at 4.3%. Verizon has increased its payout for 14 years in a row.

The company seems to be ready and able to keep that trend of dividend increases going. Verizon reported spectacular earnings growth and revenue in its latest report. It has a great financial position.

 

It’s also among the easiest ways to profit from the move to 5G. The wireless technology is only just getting start but should be an important driver for Verizon over the next years.

 

Author: Blake Ambrose
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1 “Dollar Stock” To Buy Right Now

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“Buy low and sell high” is a saying as old as investing itself. It sounds simple but it is actually more complicated.

How do we define low? Is this the price we are talking about or the valuation? And for selling, you will only know what is high in hindsight. A better goal might be to purchase good companies at a great value and invest long term.

If you can find good value stocks with long-term growth possibilities, then you are doing pretty well. Here is one such stock priced under $10 right now that you should investigate.

Mortgage lending heavyweight

UWM Holdings (UWMC) is among the country’s leading mortgage lenders (its full name is United Wholesale Mortgage). It is the second-largest residential lender and the number one wholesale lender overall, with 34% of the market as of 2020.

UWM partners with third-party brokers to give loans, as compared to retail lenders like Rocket, who offer their loans directly to borrowers.

The company was created in 1986 and was the largest wholesale lender for the previous six years. It went public on Jan. 22 after combining with an SPAC, Gores Holdings. Since UWM started selling at around $11.50 a share, it declined roughly 27% to $8.40. That lowered the stock’s forward price-to-earnings ratio to around 8.5 — not bad for a market leader with strong growth potential.

The mortgage industry can be cyclical, as we saw over the previous year. In 2020, the company had record numbers with $182 billion in loans, a 69% boost over 2019, which was the previous record. It brought in $3.38 billion in net income in 2020, which was a 715% raise over 2019.

With last year being amazing for the industry amid record low interest rates and a skyrocketing amount of refinancings. What happens now? CEO Mat Ishbia says it is only a start. The company has key advantages on what to build, as he spoke about on the Q4 earnings call for 2020.

“2020 was not a high point to us. It’s a starting point from where we are going, and that’s our plan. So, we’re going to keep building our business. We are well stationed for the future. And we see growth in 2021, and we are very excited about it., Ishbia said.

The company’s key advantages going into 2021 are:

First, over the previous years, it has put in millions into technology making its systems better than its competitors, on average, and lowering the time it takes for brokers to finish deals. That makes for a cheaper and faster deal for everyone, including the end borrowers.

Second, the CEO says he believes the wholesale sector will expand as the model gives borrowers the option to find better deals through brokers using its website, findamortgagebroker.com. The company says it will market that website, starting with their Super Bowl ad earlier this year.

Overall, UWM also says it expects loan origination growth through 2021 and beyond, and analysts are optimistic on its possibilities, giving the stock a median price target of $11 over the next year.

This company, as a market leader, has increased its loan volumes through numerous environments over the previous six years and should keep going. Priced at under $10 a share, UWM is a wonderful buy.

 

Author: Blake Ambrose
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Biden Coming For Your Money To Pay For Failing Economy

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The Biden White House has revealed the details of Biden’s American Families Plan that will increase taxes and pile on trillions in additional spending.

President Biden and Democrats are embracing large tax increases on families and businesses while spending trillions on liberal agenda items.

“The President’s change will ensure the wealthiest Americans use the same rules as other Americans., the White House says.

“Along with the American Families Plan, President Biden will also be proposing a set of policies to ensure the wealthy pay their share in taxes., a comment from the White House read, “while making sure no on earning under $400,000 will see their taxes increase.”,.,

This reminds many observers of how the Obama Administration repeatedly claimed that insurance premiums would lower with Obamacare and people would get to keep their health insurance plan and doctor.

Ryan Ellis, a conservative activist, listed the new tax hikes on Twitter.

“The top income rate is being raised from 37 percent to 39.6 percent., Ellis said. “This changes all taxable income over $550,000 for single filers and around $650,000 for couples.”

Ellis also found a doubling of capital gains tax from 23.4 percent to 43.4 percent for certain taxpayers.

Biden’s plan “creates a second death tax.”

“Assets at death would be taxed on their capital gains at 43.4 percent., Ellis said.

Ahead of the publication of these details, the Foundation for Economic Education said this week that economists have decided that the capital gains increase could destroy the economy.

“Free-market economists warn that the whole economy would be harmed by such a large capital gains increase., Brad Polumbo wrote.

Author: Steven Sinclaire
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