AUTHOR: DavidHLancaster on 6/10/2026 FIRST: R Quinn on 6/10 | RECENT: Mike Xavier on 6/11
Comments
A large part of my financial plan was delaying claiming Social Security until 70 to get the largest possible inflation adjusted payments. Now they are mulling to change the rules, and saying well…?
But wait.
When I started working as an adult in 1980 the deal was I could retire with full benefits at 65. Then in 19833 the government changed my retirement age to 67 (an effective cut of 13.3% per AI). At that time they began taxing benefits which they hadn’t previously, and raised the Social Security tax rate.
Now after 45 years of telling me I was paying into a system that told me I was essentially getting an inflation adjusted payout, they’re considering reneging on that? Also if the funding system is not modified I could be facing a 20-24% cut in benefits? What a bait and switch has been perpetrated on the late baby boomers!
We spent two weeks in Greece a couple of years ago. I highly recommend seeing the Peloponnese peninsula which contains Nafplion/Naflio (towns are often spelled several ways) which was the original capital of Greece and nearby Mycenae, as well as Olympia which obviously is the origin of the Olympics, and a great little town.
For an island we visited Idra/Hydra which is a small island with no vehicles a couple of hours by high speed ferry from Athens transportation which is really not necessary as it is a very walkable island is only donkeys. We found out about via Rick Steeves as it is his favorite Greek island.
For what it’s worth my portfolio is 45/45/10,
bonds are roughly 1/3 short term, 1/3 short term TIPS. The short term bonds for lower exposure to interest rate hike, TIPS for inflation protection, and intermediate for potential higher returns. All investments are in Vanguard index ETFs for low costs, and easier trading if I need to rebalance during my quarterly portfolio and net worth calculations.
Your considering a TIPS ladder makes more sense Emily as you will receive semiannual interest payments that will keep pace with inflation.
If you purchase an annuity most of what you get back will just be your own money not guaranteed to keep pace with inflation, and if you do get an inflation rider your payments will be smaller.
The previous sentence is the old, “you can pay men now or pay me later.”
Actually my investment loss was 21K, so it is spread over a total of 7 years, as the IRS only allows one to claim a maximum 3K annually when filing. 2 down 5 to go. Long live the king?
😂
Mark,
In 2024 I switched from an intermediate to a short term bond fund in my taxable account. I decided it was not worth waiting for the intermediate bond fund to get back to equal. This money was originally put aside in 2019 to pay for new cars over the years, and a porch addition in 2028 so it seemed to make sense at the time. We got one vehicle paid for before the 2022 bond crash. The switch to short term bond fund was because we were much closer to utilizing the money. Now I told my wife she has to keep me alive for 5 more years to get the loss back in it’s entirety (this is another break for affluent investors in the US, we can get our loses back through a annual 3K tax deduction). Now my bonds are evenly split in our portfolio, 1/3 each in intermediate, short term, and short term TIPS.
Dick,
Was your ability to grow your assets mainly because you claimed Social Security early? To me it seems that is not the reason, but it was enabled because you have a large income source from a defined benefit pension as a result working for what, 40 years, at the same company, and becoming a high paid executive. Good for you, but most of us do not have a large pension.
Dick,
Per my calculations of the data you presented the increase in Social Security payments has covered 94% of the increase in CPI-W (workers- which is used for calculating the inflation adjustment). A more accurate inflation gauge for those retired though is the R-CPI-E (Research CPI for the elderly: 62+) which per AI climbs roughly 0.2 to 0.3 percentage points faster per year on average than the CPI-W used for official Social Security adjustments.
Maybe someone more mathematically inclined (my brain is not wired for calculating compounding) than me can calculate what the increase would be since 2010 using this data for a more accurate comparison.
Comments
A large part of my financial plan was delaying claiming Social Security until 70 to get the largest possible inflation adjusted payments. Now they are mulling to change the rules, and saying well…?
Post: Short term and long term Social Security planning
Link to comment from August 4, 2026
But wait. When I started working as an adult in 1980 the deal was I could retire with full benefits at 65. Then in 19833 the government changed my retirement age to 67 (an effective cut of 13.3% per AI). At that time they began taxing benefits which they hadn’t previously, and raised the Social Security tax rate. Now after 45 years of telling me I was paying into a system that told me I was essentially getting an inflation adjusted payout, they’re considering reneging on that? Also if the funding system is not modified I could be facing a 20-24% cut in benefits? What a bait and switch has been perpetrated on the late baby boomers!
Post: Short term and long term Social Security planning
Link to comment from August 4, 2026
We spent two weeks in Greece a couple of years ago. I highly recommend seeing the Peloponnese peninsula which contains Nafplion/Naflio (towns are often spelled several ways) which was the original capital of Greece and nearby Mycenae, as well as Olympia which obviously is the origin of the Olympics, and a great little town. For an island we visited Idra/Hydra which is a small island with no vehicles a couple of hours by high speed ferry from Athens transportation which is really not necessary as it is a very walkable island is only donkeys. We found out about via Rick Steeves as it is his favorite Greek island.
Post: Before Someone Else Decides
Link to comment from August 3, 2026
For what it’s worth my portfolio is 45/45/10, bonds are roughly 1/3 short term, 1/3 short term TIPS. The short term bonds for lower exposure to interest rate hike, TIPS for inflation protection, and intermediate for potential higher returns. All investments are in Vanguard index ETFs for low costs, and easier trading if I need to rebalance during my quarterly portfolio and net worth calculations.
Post: Taking a Loss?
Link to comment from August 3, 2026
Your considering a TIPS ladder makes more sense Emily as you will receive semiannual interest payments that will keep pace with inflation. If you purchase an annuity most of what you get back will just be your own money not guaranteed to keep pace with inflation, and if you do get an inflation rider your payments will be smaller. The previous sentence is the old, “you can pay men now or pay me later.”
Post: Treasury Inflation Protected Securities (TIPS) are a Generational Bargain Right Now
Link to comment from July 30, 2026
Actually my investment loss was 21K, so it is spread over a total of 7 years, as the IRS only allows one to claim a maximum 3K annually when filing. 2 down 5 to go. Long live the king? 😂
Post: Taking a Loss?
Link to comment from July 29, 2026
Mark, In 2024 I switched from an intermediate to a short term bond fund in my taxable account. I decided it was not worth waiting for the intermediate bond fund to get back to equal. This money was originally put aside in 2019 to pay for new cars over the years, and a porch addition in 2028 so it seemed to make sense at the time. We got one vehicle paid for before the 2022 bond crash. The switch to short term bond fund was because we were much closer to utilizing the money. Now I told my wife she has to keep me alive for 5 more years to get the loss back in it’s entirety (this is another break for affluent investors in the US, we can get our loses back through a annual 3K tax deduction). Now my bonds are evenly split in our portfolio, 1/3 each in intermediate, short term, and short term TIPS.
Post: Taking a Loss?
Link to comment from July 28, 2026
Dick, Was your ability to grow your assets mainly because you claimed Social Security early? To me it seems that is not the reason, but it was enabled because you have a large income source from a defined benefit pension as a result working for what, 40 years, at the same company, and becoming a high paid executive. Good for you, but most of us do not have a large pension.
Post: Inflation, prices, COLAs, retirement and the last 16 years
Link to comment from July 28, 2026
Dick, Per my calculations of the data you presented the increase in Social Security payments has covered 94% of the increase in CPI-W (workers- which is used for calculating the inflation adjustment). A more accurate inflation gauge for those retired though is the R-CPI-E (Research CPI for the elderly: 62+) which per AI climbs roughly 0.2 to 0.3 percentage points faster per year on average than the CPI-W used for official Social Security adjustments. Maybe someone more mathematically inclined (my brain is not wired for calculating compounding) than me can calculate what the increase would be since 2010 using this data for a more accurate comparison.
Post: Inflation, prices, COLAs, retirement and the last 16 years
Link to comment from July 27, 2026
Oh, I forgot the Friday fish fry. Best meal we had all week. Did you go?
Post: One Person’s Luxury, Another’s Necessity
Link to comment from July 25, 2026