Social Security Changes and the Impact of Rising Inflation | Weekly Business Briefs w/ Martin Perdomo

Is it time to rethink your retirement strategy? We bring you the latest insights on how upcoming changes to Social Security benefits might affect your financial plans. With inflation on the rise, Social Security benefits are set to follow suit, but high earners and early retirees should prepare for some trade-offs. During this segment, we discuss why it's crucial to build personal assets that generate passive income, ensuring financial independence in your golden years.

Shifting gears, we dissect the rollercoaster of recent US job reports and what they mean for your wallet. While the job market appears strong with rising wages, inflation continues to squeeze your budget, and skyrocketing housing and gas prices add to the financial strain. Despite these challenges, there are signs that the Federal Reserve's measures to control inflation are beginning to take effect. Tune in as we explore the complexities of the current economic landscape and the balancing act required to maintain stability for consumers and businesses alike.

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Transcript

Speaker 1: 0:28

Today is June 12th 2024, and here are the top three headlines in this week's Weekly Business Brief. So the good news is that your benefits will likely go up to keep up with inflation. Think of it like an automatic raise to help you afford groceries, rent and other essentials that keep getting more and more expensive. There are a couple of other things to keep in mind, however. If you're a high earner, making more than $174,900 a year, you'll pay a bit more in Social Security taxes. Also, if you're still working and receiving benefits before you reach full retirement age, you might have some of your benefits withheld, but that's just the government's way of making sure you don't make too much money while still collecting benefits. Finally, let's say you decide to retire early. You might be eligible for Social Security benefits before you reach full retirement age, which is currently 67. But if you don't retire early, your monthly benefit will permanently be reduced. So there's a trade-off to consider Start collecting benefits early and get a smaller monthly check, or wait until full retirement age and get a higher monthly benefit. Here's my thoughts on this. Guys, we all need to figure out how to be non-reliant on the government. You and I's responsibility is to figure out how to create and get assets, that cash flow, for us, so that we're not dependent on the government to take care of us in our old age.

Speaker 1: 2:07

Next up, I've got some good news and some bad news from the recent US job reports. I've got some good news and some bad news from the recent US job reports. So first off, the good news the job market is looking pretty solid. Lots of folks are finding work, and that's always a plus. Plus, wages are going up, which means more cash in your pocket at the end of the day. Sounds pretty sweet, right, but hold up, it's not all sunshine and rainbow guys.

Speaker 1: 2:32

Now on to the not the not so great stuff. Inflation is on the rise, which basically means the cost of living is going up. That can hit you hard when you're trying to stretch your paycheck to cover your expenses. And there's the housing market. Prices are going through the roof, making it tough for first-time homebuyers to get their foot in the door. Plus, gas prices are climbing higher and higher, making it more expensive to fill up your tank. So what's the bottom line? Well, it's a bit of a mixed bag. While the job market is booming and wages are up, there are some serious challenges ahead, especially when it comes to inflation and housing affordability. It's going to take some careful navigating to keep things on track and make sure everyone's feeling the economic love, and so there's a lot of things there to unpack as it pertains to that, I think.

Speaker 1: 3:28

Overall, though, we're seeing we saw unemployment rise a little bit. I think unemployment for the first time in like 24 months or 20 months we're seeing we saw unemployment rise a little bit. I think unemployment for the first time in like 24 months or 20 months. We've seen the unemployment tick over 4%. We just hit 4% over 3.9%. We just hit 4%, which we saw a reflection of interest. We saw that reflect in the interest rates in the 10-year treasury last week, and so we saw the interest rates inch down a little bit. But then this wages report comes out and the feds then don't like that because, remember, the feds are raising rates because they want to tame inflation. So if they're raising rates and wages are going up and there's a lot of jobs out there, that means that inflation is still rampant. We have one good report which was like I said, the unemployment was ticked a little bit higher, which that showed when that report came out. It helped with interest rates, but now this other stuff we're seeing the 10-year treasury go up again, so not so much of a relief as we expected it. However, I think that what the feds are doing is working, that what the feds are doing is working. So fingers crossed that the inflation numbers will come down and wages will at least stabilize for now, so that the feds can start lowering rates and make the business world's life easier and the consumer the regular consumer's life easier, because I know you're paying through the nose or interest on your credit cards right now with these rates.

Speaker 1: 4:58

And this week on Biden Watch, president Biden's approval rating just took a nosedive, guys. President Biden's popularity hit a new low of 46%. Why, you may ask? Well, it seems like a lot of folks aren't happy with how things are going. First up, there's this thing called inflation Remember that thing, which basically means stuff is getting more and more expensive, and nobody likes that. Then there's the skyrocketing gas prices, which hit us where it hurts, right, we're all driving and we're all trying to move around, especially in the summer, we're trying to take our families to the beaches and vacations and et cetera. And let's not forget about COVID-19. And etc. And let's not forget about COVID-19.

Speaker 1: 5:43

Some people aren't too thrilled with how the whole pandemic situation has been handled. These approval ratings could have a big impact on what happens in the next election. See, when people aren't happy with folks in charge, they might decide to shake things up when it's time to vote, and that could mean trouble for President Biden's party in the upcoming midterm elections. But it's not all doom and gloom for the Biden administration. They still got time to turn things around. It's going to take some serious work, though. They'll need to figure out how to tackle these tough issues head on and win back the trust of the people. Otherwise it would be a bumpy ride ahead for the Biden administration. And this has been your weekly business brief. I'll see you guys next week.