2015 Social Security Wage Base

The government released inflation numbers for September 2014. The numbers confirmed my calculation for 2015 Social Security COLA (1.7%) and 2015 401k/403b/457 plan and IRA contribution limits ($18,000, $5,500). Of course you didn't have to wait if are a regular reader of this blog. You knew them as far back as two months ago. The Social Security wage base, which is the maximum amount subject to Social Security tax, will increase by $1,500 to $118,500 in 2015. If you earn at least that much, that [...]

Rebalancing: Sell High, Buy Higher

Rebalancing is considered a key element of buy-and-hold, to the point that buy-and-hold has become a shorthand for buy, hold, and rebalance. Investment advisor Rick Ferri made this clear in his interview with Morningstar: Buy, Hold, and Rebalance [...]

2015 Social Security COLA

[Updated on October 22, 2014. New CPI number confirmed the 1.7% COLA projected here a month ago.] The official announcement for September 2014 CPI came in. This made is possible to calculateĀ Social Security COLA for 2015. Inflation was still [...]

Retiring Early: Effect On Social Security Benefits

Social Security has a flat 6.2% tax rate, up to the maximum wages covered by Social Security ($117k in 2014). Social Security benefits bear some positive relationship with your covered wages and the amount of taxes you paid on those wages. The higher [...]

2015 401k 403b IRA Contribution Limits

[Updated on October 22, 2014. New CPI number confirmed projections made here two months ago.] The government released the Consumer Price Index for SeptemberĀ 2014. Inflation is higher this year but still low by historical standard. The new [...]

Stop Using Vanguard Money Market Fund

The SEC released news rules on money market funds last week. Money market funds for retail investors will still keep the $1 fixed NAV. They can impose fees and restrictions when they face liquidity problems. I don't think Vanguard's money market [...]