From a study by the University of Massachusetts Center for Social and Demographic Research on Aging: "... the Social Security COLA most typically results in a modest increase in benefits, leaving beneficiaries less covered over time, especially in states
where increases in the COLA fail to catch up with sizable increases in the cost of living." https://scholarworks.umb.edu/demographyofaging/59/
There have been a few times on HD where I've agreed with Mr. Quinn. However, it is apparent from this comment thread and others that any discussion about the meaning of the word "budget", or the perceived value of said "budget", would not be productive. I believe that Mr. Clements created Humble Dollar in part to provide a safe place to ask questions, share insights/knowledge, and participate in friendly and helpful discussions. In situations like these, I think the best way to show appreciation for his legacy is to continue to honor his values and founding principles with our posts and comments. In other words, ask yourself, "WWJC do"?
According to the TSCL analysis "Loss of Buying Power 2024" at the link below, in 2024:
"... average Social Security payments [were] worth only about 80 cents on the dollar compared to 2010. In other words, Social Security recipients have lost about 20 percent of their buying power." The authors of the report and others have suggested that this is because COLA is currently calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a metric that is thought to be a mismatch vs. typical expenditures by older adults. For those planning ahead, the projected 30% haircut in social security payments if Congress does nothing, mentioned in the original post above, would thus be even worse in terms of a loss in purchasing power because of the continued use of CPI-W in calculating COLA. That being said, Congress will likely procrastinate until waiting is no longer a viable option and then do something. https://seniorsleague.org/assets/TSCL-LOBP-Report-2024.pdf
Rather than answer for myself, I'm going to provide an answer based on general observations of various people I've come across. This doesn't mean someone "into the details" would have all these preferences or influences, but perhaps at least a few. And some of these may apply to people who don't track their finances to this level. Everyone's situation and needs are different. Here are my observations. Some people who track their financial details (historical and projected):
Are comfortable with details and the big picture.
Don't like "surprises"; feel more comfortable knowing where they will stand in retirement, vs. making assumptions or guessing.
Would like to know the tax and retirement implications of "what if" scenarios - e.g. a major purchase or other expenditure.
Prefer to have things recorded, vs. trying to mentally keep track of everything. Also, employers, financial institutions, brokerages, tax preparation services and even the gov't. make mistakes.
May not be as comfortable with risk.
Might have had periods of financial instability or uncertainty in their lives, due to major life events such as divorce, disability, layoff, etc. This can influence behavior, but also negatively impact retirement funds going forward.
Have been influenced by family members, friends and/or mentors.
Have been influenced or affected by societal expectations and norms.
May enjoy preserving something in some form from their pre-retirement work life and stay mentally sharp at the same time, i.e. running a business, and/or working with numbers, forecasts, or planning.
Are approaching retirement age or are in the early years of retirement.
Are not using a professional to manage their finances.
Have the time to get into the details.
Need answers to specific questions - how much can they convert to a Roth IRA, can they leave something for their heirs, will they outlive their savings, etc.
Of course, this is just my opinion, others may have differing POVs.
Fyi in case it applies: the new TY 2025 "enhanced deduction for seniors", which starts at $6k for singles ($12k for couples with spouse born before 1/2/1961), decreases on a sliding scale if AGI (line 11b, Form 1040) is greater than $75k for a single filer, or $150k for a couple filing. See new Schedule 1-A, Part V. Something to keep in mind if doing Roth conversions and cutting it too close to the line. (Caveat - you need to check the forms themselves - I'm looking at my tax prep software's version of the form, which may or may not be accurate at this point in time.)
Just passing this along in case it's helpful. For the past several years I've been using retirement planning software to estimate my financial situation going forward. You need Excel to use it, but it is set up like a form where you enter your income and expense data and certain assumptions, such as interest rates, inflation, expected growth in investments, etc. Once everything is entered, it generates year-by-year projections. Then you can see areas where you are doing well, or conversely, might want to make some adjustments. One thing I like is that the spreadsheet and the data reside with me (and not with a company that grants themselves a perpetual license to use your data, uses your data to try to sell you other services, or licenses your data to third parties). It can be used by singles or couples. Other things to know: 1) you do need to be keeping track of your expenses and income throughout the year to get a more accurate picture. I created my own spreadsheet to do that (I also use my income/expense spreadsheet to calculate pro forma end-of-year tax calculations in November, so my spreadsheet does double duty in that sense), 2) the author provides a lot of helpful guidance within the spreadsheet, but you need to give yourself time to make sure you understand it the first time using the spreadsheet, 3) there is an up-front cost for first-timers, but after that you can get annual updates for a nominal amount, and 4) when I've had questions, customer service has been very helpful and responds quickly. I have no connection to this company or anyone associated with it, I'm just a user. Link if anyone wants it:
https://www.completeretirementplanner.com/
Would the cost of remodeling a basement to add things like an extra bedroom, extra bath, entertainment room etc. be considered a qualified addition to the cost basis? By this I mean taking an open basement with exposed pipes, wiring and ductwork, exposed ceiling, exposed concrete walls, and a concrete floor to a finished state.
"Scott Bessent, the incoming Treasury secretary, made this argument: “Tariffs can’t be inflationary because if the price of one thing goes up, unless you give people more money, then they have less money to spend on the other thing, so there is no inflation.”"
That's quite the tone-deaf statement from Bessent. As a member of the billionaire class, he will be insulated from any personal financial hardship resulting from Trump's tariffs.
"Some tariff supporters go a step further, arguing American consumers will even benefit from tariffs. Why? If domestic manufacturers suddenly have a price advantage relative to foreign competitors, it stands to reason that they’ll gain market share and, in turn, they’ll hire more workers at higher wages."
First, over the years, domestic vehicle manufacturers and their suppliers have taken steps to increase automation in production facilities, and will continue along that path as technology continues to improve and manufacturers try to reduce their dependence on labor. Whether or not there would be a net increase in hiring depends on the time frame being measured. Second, tariffs will concentrate vehicle sales among a limited number of large domestic manufacturers. This decreases competition, and will likely result in increased prices. With regard to new companies entering the market, it is very difficult to scale a start-up without government assistance. Tesla was struggling until it started benefitting from tax incentives. China subsidizes its domestic electric vehicle manufacturing. Third, the "U.S. domestic" manufacturing supply chain consists of vehicles and parts manufactured and assembled in many different countries. Quality will suffer during any transition period due to cost, inexperience and a steep learning curve among new suppliers and assemblers. Replacing the current system would take years, if not a decade or more. In the meantime, vehicles and parts will be in short supply, and again, prices for new/used vehicles and repairs will go up. And that's without retaliatory tariffs. That's economics.
Comments
From a study by the University of Massachusetts Center for Social and Demographic Research on Aging: "... the Social Security COLA most typically results in a modest increase in benefits, leaving beneficiaries less covered over time, especially in states where increases in the COLA fail to catch up with sizable increases in the cost of living." https://scholarworks.umb.edu/demographyofaging/59/
Post: Plan for a Pay Cut
Link to comment from January 13, 2026
There have been a few times on HD where I've agreed with Mr. Quinn. However, it is apparent from this comment thread and others that any discussion about the meaning of the word "budget", or the perceived value of said "budget", would not be productive. I believe that Mr. Clements created Humble Dollar in part to provide a safe place to ask questions, share insights/knowledge, and participate in friendly and helpful discussions. In situations like these, I think the best way to show appreciation for his legacy is to continue to honor his values and founding principles with our posts and comments. In other words, ask yourself, "WWJC do"?
Post: Can a budget do all that?
Link to comment from January 3, 2026
According to the TSCL analysis "Loss of Buying Power 2024" at the link below, in 2024: "... average Social Security payments [were] worth only about 80 cents on the dollar compared to 2010. In other words, Social Security recipients have lost about 20 percent of their buying power." The authors of the report and others have suggested that this is because COLA is currently calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a metric that is thought to be a mismatch vs. typical expenditures by older adults. For those planning ahead, the projected 30% haircut in social security payments if Congress does nothing, mentioned in the original post above, would thus be even worse in terms of a loss in purchasing power because of the continued use of CPI-W in calculating COLA. That being said, Congress will likely procrastinate until waiting is no longer a viable option and then do something. https://seniorsleague.org/assets/TSCL-LOBP-Report-2024.pdf
Post: Plan for a Pay Cut
Link to comment from December 27, 2025
Very clear, helpful explanation.
Post: Tax Loss Harvesting
Link to comment from December 27, 2025
Yes.
Post: 27 Months
Link to comment from December 15, 2025
Rather than answer for myself, I'm going to provide an answer based on general observations of various people I've come across. This doesn't mean someone "into the details" would have all these preferences or influences, but perhaps at least a few. And some of these may apply to people who don't track their finances to this level. Everyone's situation and needs are different. Here are my observations. Some people who track their financial details (historical and projected):
- Are comfortable with details and the big picture.
- Don't like "surprises"; feel more comfortable knowing where they will stand in retirement, vs. making assumptions or guessing.
- Would like to know the tax and retirement implications of "what if" scenarios - e.g. a major purchase or other expenditure.
- Prefer to have things recorded, vs. trying to mentally keep track of everything. Also, employers, financial institutions, brokerages, tax preparation services and even the gov't. make mistakes.
- May not be as comfortable with risk.
- Might have had periods of financial instability or uncertainty in their lives, due to major life events such as divorce, disability, layoff, etc. This can influence behavior, but also negatively impact retirement funds going forward.
- Have been influenced by family members, friends and/or mentors.
- Have been influenced or affected by societal expectations and norms.
- May enjoy preserving something in some form from their pre-retirement work life and stay mentally sharp at the same time, i.e. running a business, and/or working with numbers, forecasts, or planning.
- Are approaching retirement age or are in the early years of retirement.
- Are not using a professional to manage their finances.
- Have the time to get into the details.
- Need answers to specific questions - how much can they convert to a Roth IRA, can they leave something for their heirs, will they outlive their savings, etc.
Of course, this is just my opinion, others may have differing POVs.Post: 27 Months
Link to comment from December 14, 2025
Fyi in case it applies: the new TY 2025 "enhanced deduction for seniors", which starts at $6k for singles ($12k for couples with spouse born before 1/2/1961), decreases on a sliding scale if AGI (line 11b, Form 1040) is greater than $75k for a single filer, or $150k for a couple filing. See new Schedule 1-A, Part V. Something to keep in mind if doing Roth conversions and cutting it too close to the line. (Caveat - you need to check the forms themselves - I'm looking at my tax prep software's version of the form, which may or may not be accurate at this point in time.)
Post: Calculating the Maximum Income While Staying in the 12% Tax Bracket
Link to comment from December 14, 2025
Just passing this along in case it's helpful. For the past several years I've been using retirement planning software to estimate my financial situation going forward. You need Excel to use it, but it is set up like a form where you enter your income and expense data and certain assumptions, such as interest rates, inflation, expected growth in investments, etc. Once everything is entered, it generates year-by-year projections. Then you can see areas where you are doing well, or conversely, might want to make some adjustments. One thing I like is that the spreadsheet and the data reside with me (and not with a company that grants themselves a perpetual license to use your data, uses your data to try to sell you other services, or licenses your data to third parties). It can be used by singles or couples. Other things to know: 1) you do need to be keeping track of your expenses and income throughout the year to get a more accurate picture. I created my own spreadsheet to do that (I also use my income/expense spreadsheet to calculate pro forma end-of-year tax calculations in November, so my spreadsheet does double duty in that sense), 2) the author provides a lot of helpful guidance within the spreadsheet, but you need to give yourself time to make sure you understand it the first time using the spreadsheet, 3) there is an up-front cost for first-timers, but after that you can get annual updates for a nominal amount, and 4) when I've had questions, customer service has been very helpful and responds quickly. I have no connection to this company or anyone associated with it, I'm just a user. Link if anyone wants it: https://www.completeretirementplanner.com/
Post: 27 Months
Link to comment from December 14, 2025
Would the cost of remodeling a basement to add things like an extra bedroom, extra bath, entertainment room etc. be considered a qualified addition to the cost basis? By this I mean taking an open basement with exposed pipes, wiring and ductwork, exposed ceiling, exposed concrete walls, and a concrete floor to a finished state.
Post: Home Improvements Tax Tips
Link to comment from September 13, 2025
Post: Trading Arguments
Link to comment from December 16, 2024