AUTHOR: John Katz on 2/27/2025 FIRST: Jonathan Clements on 2/27/2025 | RECENT: 1michaelm on 3/5/2025
Comments
I agree with your general approach. But how does one know when they will need social security most? Life isn't a straight line. That said, I agree that many people treat this issue of when to claim as a traditional investment account where they want to "get their money back" as quickly as possible. Viewing it as a hedge against outliving your assets is a much more robust strategy for long-term stability. That was my approach.
I can see why people might be getting a little upset over the increase in the HOA monthly fee. It's approaching, in some instances I imagine, what they pay in property tax. The difference is that the HOA fee is directly re-invested in the place they live, while the property tax is not. I don't like paying $100 for an oil change, but it preserves the value of my car. I am less fond of paying $6000 for a new engine. Sometimes you need to pay a little (relatively) now to avoid paying a lot later. But some people are more about limiting the monthly budget than protecting/enhancing the long-term value of their assets.
Whatever the solution is, it needs to be simple and easy to communicate, understand and most of all, implement. The government has a tendency to over-engineer things, whether its income taxes, Medicare, Social Security, etc. Lots of people leave money on the table because they simply don't know to navigate the details - and lack the understanding, motivation or money to hire someone who does. I suspect, though don't know, that it is the very people who most need the money that don't know how to maximize their benefits.
That's a lot to go through. Seeing a loved one in that state. And perhaps even worse, sharing with a mother that she survived her own daughter. All this in the context of Jonathan's struggles. What you have been through of late! My condolences. 15 years ago, I gritted my teeth while my wife and I spent several thousand dollars getting an estate plan done with a law firm that specialized in them. I am highly confident, knowing the owner of the firm, that all is buttoned down. I don't even think anymore about the money we spent to get it done, only that my son and daughter hopefully will not have to worry about that part of their mom and dad passing on. There are many things we can do to make our departures easier for those we leave behind. Making sure these affairs are taken care of is near the top, if not at the top.I realize that not everyone needs or wants an estate plan; for my wife and me, it was the way to go, however.
I think that coming in with an offer $125K over list, after just two days, and waiving an inspection tells me all I need to know about these buyers. Perhaps I missed it, but did you mention if they were represented by an agent? Hard to imagine an experienced, ethical agent recommending the course of action taken by these buyers. But ... no one put a gun to their heads.
I think Kristine hit the nail on the head when she cites the topic of seeking 'useful financial advice'. I think Jan is making a similar point. Many of the posts of late are at best, tangentially connected to financial matters. In some instances, those off-topic opinions have value, but they don't align with the mission of the site. And as far as downvotes are concerned: You shouldn't belittle people with whom you disagree. That's childish and counterproductive to stimulating discussion. I have used downvotes on occasion. No longer. I see the error of them more clearly after reading this chain.
The question of who “deserves” more public support is complicated. But the data show that K–12 education and seniors have followed very different financial paths over the past two decades. Some argue that seniors failed to prepare adequately for retirement. But even those who saved diligently are losing ground. Social Security is indexed only to general inflation (CPI). Meanwhile, the specific expenses seniors face—especially healthcare and long-term care—often rise much faster than the overall inflation rate. So even with cost-of-living adjustments, purchasing power can erode in practice. Regarding the need to support local education, K–12 education has seen a substantial real increase in funding. Nationally, inflation-adjusted per-student spending rose from roughly $15,000 in 2002 to more than $20,000 in 2024—a real increase of about 36% above inflation. In other words, education funding has grown meaningfully in real terms, while Social Security benefits have seen essentially zero real growth. That national average, however, masks enormous regional variation. In New Jersey, for example, inflation-adjusted per-student spending rose from about $21,000 to more than $30,000. In Idaho, by contrast, it barely increased, moving from roughly $11,000 to $12,000. Broad calls for “more spending” on K–12 education often overlook these disparities. In many states, education funding has already grown substantially relative to support for seniors. None of this makes the budget math simple. Social Security’s long-term shortfall will likely be addressed either through reduced future benefits or higher taxes. Current seniors are likely to be largely protected, or “grandfathered,” meaning the adjustments would primarily affect younger workers and future retirees. But large increases in teacher pensions also fall on younger taxpayers, so that is to be considered as well. How do we allocate limited resources? And who ultimately bears the cost of policy decisions?
Everyone pays the same standard Part B premium regardless of income.Don't they? Income only comes into play through IRMMA which is an add-on surcharge. Without IRMAA, your income does not affect the Part B base fee at all.At least, that's my read. Think of it another way: Do you know of any other health insurance provider/adminstrator that sets your premium based in part on your income? I don't.
Comments
I agree with your general approach. But how does one know when they will need social security most? Life isn't a straight line. That said, I agree that many people treat this issue of when to claim as a traditional investment account where they want to "get their money back" as quickly as possible. Viewing it as a hedge against outliving your assets is a much more robust strategy for long-term stability. That was my approach.
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 24, 2026
I can see why people might be getting a little upset over the increase in the HOA monthly fee. It's approaching, in some instances I imagine, what they pay in property tax. The difference is that the HOA fee is directly re-invested in the place they live, while the property tax is not. I don't like paying $100 for an oil change, but it preserves the value of my car. I am less fond of paying $6000 for a new engine. Sometimes you need to pay a little (relatively) now to avoid paying a lot later. But some people are more about limiting the monthly budget than protecting/enhancing the long-term value of their assets.
Post: The condo, HOA, senior citizen conundrum
Link to comment from April 20, 2026
Whatever the solution is, it needs to be simple and easy to communicate, understand and most of all, implement. The government has a tendency to over-engineer things, whether its income taxes, Medicare, Social Security, etc. Lots of people leave money on the table because they simply don't know to navigate the details - and lack the understanding, motivation or money to hire someone who does. I suspect, though don't know, that it is the very people who most need the money that don't know how to maximize their benefits.
Post: Fixing Social Security once and for all
Link to comment from April 16, 2026
That's a lot to go through. Seeing a loved one in that state. And perhaps even worse, sharing with a mother that she survived her own daughter. All this in the context of Jonathan's struggles. What you have been through of late! My condolences. 15 years ago, I gritted my teeth while my wife and I spent several thousand dollars getting an estate plan done with a law firm that specialized in them. I am highly confident, knowing the owner of the firm, that all is buttoned down. I don't even think anymore about the money we spent to get it done, only that my son and daughter hopefully will not have to worry about that part of their mom and dad passing on. There are many things we can do to make our departures easier for those we leave behind. Making sure these affairs are taken care of is near the top, if not at the top.I realize that not everyone needs or wants an estate plan; for my wife and me, it was the way to go, however.
Post: My sister’s will and what it taught me.
Link to comment from April 13, 2026
You sure hit the lottery that day. Right place, right time (for you at least).
Post: The Home Ownership Gamble
Link to comment from April 6, 2026
I think that coming in with an offer $125K over list, after just two days, and waiving an inspection tells me all I need to know about these buyers. Perhaps I missed it, but did you mention if they were represented by an agent? Hard to imagine an experienced, ethical agent recommending the course of action taken by these buyers. But ... no one put a gun to their heads.
Post: The Home Ownership Gamble
Link to comment from April 6, 2026
You could put a lot worse things into your body than chocolate. If you want to make it 'healthier', and enjoy it more, make it dark.
Post: Lent, Chocolate, and the Art of Retirement
Link to comment from April 3, 2026
I think Kristine hit the nail on the head when she cites the topic of seeking 'useful financial advice'. I think Jan is making a similar point. Many of the posts of late are at best, tangentially connected to financial matters. In some instances, those off-topic opinions have value, but they don't align with the mission of the site. And as far as downvotes are concerned: You shouldn't belittle people with whom you disagree. That's childish and counterproductive to stimulating discussion. I have used downvotes on occasion. No longer. I see the error of them more clearly after reading this chain.
Post: Where are the ladies?
Link to comment from March 26, 2026
The question of who “deserves” more public support is complicated. But the data show that K–12 education and seniors have followed very different financial paths over the past two decades. Some argue that seniors failed to prepare adequately for retirement. But even those who saved diligently are losing ground. Social Security is indexed only to general inflation (CPI). Meanwhile, the specific expenses seniors face—especially healthcare and long-term care—often rise much faster than the overall inflation rate. So even with cost-of-living adjustments, purchasing power can erode in practice. Regarding the need to support local education, K–12 education has seen a substantial real increase in funding. Nationally, inflation-adjusted per-student spending rose from roughly $15,000 in 2002 to more than $20,000 in 2024—a real increase of about 36% above inflation. In other words, education funding has grown meaningfully in real terms, while Social Security benefits have seen essentially zero real growth. That national average, however, masks enormous regional variation. In New Jersey, for example, inflation-adjusted per-student spending rose from about $21,000 to more than $30,000. In Idaho, by contrast, it barely increased, moving from roughly $11,000 to $12,000. Broad calls for “more spending” on K–12 education often overlook these disparities. In many states, education funding has already grown substantially relative to support for seniors. None of this makes the budget math simple. Social Security’s long-term shortfall will likely be addressed either through reduced future benefits or higher taxes. Current seniors are likely to be largely protected, or “grandfathered,” meaning the adjustments would primarily affect younger workers and future retirees. But large increases in teacher pensions also fall on younger taxpayers, so that is to be considered as well. How do we allocate limited resources? And who ultimately bears the cost of policy decisions?
Post: Need, yes. Deserve, no! Who “deserves” more?
Link to comment from February 24, 2026
Everyone pays the same standard Part B premium regardless of income.Don't they? Income only comes into play through IRMMA which is an add-on surcharge. Without IRMAA, your income does not affect the Part B base fee at all.At least, that's my read. Think of it another way: Do you know of any other health insurance provider/adminstrator that sets your premium based in part on your income? I don't.
Post: Your effective tax rate
Link to comment from February 2, 2026