Linda Stern, a writer for Reuters, recently published an article discussing the repercussions of the recently decided debt deal and how it is affecting many Americans and their financial situation. The article was highlighted by Yahoo News and can be found here. Stern begins by addressing the questions that should be raised from the debt deal and the possible negative impacts of it. But, despite the numerous issues surrounding the deal, she tries to implement 5 wise money moves to make during the post-deal period. The moves range from stock advice, student-loans, to Social Security (which our very own Mark Berg spoke about).
Stern leads into the Social Security issue by stating, “If Congress shifts to a different inflation measure that moves up less quickly than the currently-used Consumer Price Index, it would limit upward adjustments on benefits. Starting benefits early means you relinquish that 8 percent a year increase and, should the COLA be nipped, start giving up buying power sooner”. The issue was then commented on by Mark as he gave his approach to Social Security.
As stated in the article: “That would be a significant problem for clients who rely on Social Security,” said Mark Berg, of Timothy Financial Counsel, a fee-only financial planning firm. “We would encourage a wait approach on Social Security if the client can afford it.”