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Terry Savage: Commissioner steps up to address Social Security horror stories
New Social Security Commissioner Martin O’Malley has just taken a major step to offer immediate relief to those facing clawbacks from his agency.
Economist Larry Kotlikoff and I detailed these horror stories on "60 Minutes" last November — and in our book "Social Security Horror Stories." Millions of Americans have been or are due to be ...Read more
Terry Savage: The dangers of debt
Let’s stop ignoring $1.3 trillion in credit card debt owed by millions of Americans. Perhaps including by you. Even if you stop buying, balances grow like a cancer, because the average annual interest rate on credit cards is 20.75%, according to Bankrate (many cards now charge 29% or higher). In most states, credit card rates are not subject ...Read more
Terry Savage: Tax filing ironies
Have you filed your 2023 income tax return yet? Millions already have. The rest of us are now officially procrastinators. But we’ll get it done. Except for the 125,000 high-income earners who did not even file tax returns going back to 2017 — and who owe roughly $100 billion in back taxes.
It boggles the mind. How did the IRS even find ...Read more
Terry Savage: A widow’s guide to financial recovery
On average, women live longer than men. It’s an actuarial fact known by every insurance company and financial planner. At age 65, the life expectancy of a woman is 20 years, while men at the same age have a life expectancy of 17 years.
So, it stands to reason that the 2020 Census Bureau reports that there were 11,271,000 widows in the United ...Read more
Terry Savage: Time-Sensitive Column Updates
Today's column focuses on two time-critical updates on recent columns. The first is for younger families who are seeking financial aid for college through the FAFSA form. The second is for seniors who want to rethink their Medicare Advantage programs. Time is running out for both!
Millions of students and their parents are still caught up in ...Read more
You can't plan a retirement without understanding longevity
Here’s a personal question: How long do you think you’ll live? Most people will roll their eyes, believing that only a higher power has the answer to that question. It’s an imponderable. Why bother asking, since it makes us so uncomfortable?
We know the longevity statistics, which tell us that a girl born today is predicted to live to age...Read more
Terry Savage: Insurers' losses to squeeze Advantage plans
Medicare Advantage is causing huge losses for insurers like Humana, which recently reported a surprising loss, attributed to higher than anticipated spending in Advantage plans. The company’s stock immediately fell 22% on Jan. 25 on the news, as the company disclosed their earnings would likely be less than half what had been widely expected. ...Read more
Terry Savage: Will rate cuts keep stocks soaring?
The good news is in the headlines. On the same day that the S&P 500 stock index hit all-time highs, consumer confidence (the University of Michigan’s consumer sentiment index) climbed dramatically to 78.8 from 69.7 in December. This is the second month in a row that the index has seen a strong gain, and the index is now at the highest level ...Read more
Terry Savage: Is Bitcoin for you?
Bitcoin is making headlines, as the regulators have finally approved a way to “invest” that doesn’t require a crypto wallet, an unregulated “exchange” intermediary and a “crypto key” that might be easily lost or stolen. In short, Bitcoin has joined the league of major asset classes now that Bitcoin exchange traded funds (ETFs) will...Read more
Terry Savage: Prepare for FAFSA headaches
There’s a problem with FAFSA. If you’re a high school senior now applying for college, you should already be in the process of applying for financial aid. In fact, as acceptances start to roll in, the amount of each school’s financial aid package might be the deciding factor in which institution you and your family choose.
Typically, your...Read more
Terry Savage: Top 10 money things to do right now
You started the year with such good intentions. But did you write down the most important things to accomplish in 2024, financially. Did you set some goals? Or were those fleeting ideas that faded with the New Year’s hangover?
There’s an old Savage Truth: “A goal without a plan is just a dream.” So it’s not too late to get started on ...Read more