“Only when the tide goes out do you discover who’s been swimming naked.”
– Warren Buffett
When things are going well, we take more risks and loosen up on the habits and principles that got us to that point. Sometimes we do this with our health…sometimes it’s our time…sometimes it’s our money. We don’t worry as much about how much debt we have…or how much we have in emergency funds…or where every dollar is going because there are more dollars than ever before. But as the waters recede, we’re left standing naked.
Unfortunately, it’s much easier to identify these risks in hindsight than in real time. So, it’s important to ask ourselves, “If the tide went out today, am I comfortable with my choice in bathing suit?”
With that said, here are the stories that caught my eye this week:
MONEY: Social Security Underpays Widows and Widowers (U.S. News & World Report)
A recent audit of the Social Security Administration found a significant flaw in how retirement and survivor benefit options are presented to widows and widowers. What was the flaw? The Social Security Administration failed to inform widows and widowers of the option to delay their retirement application until age 70, which would have resulted in a higher monthly benefit amount. What was the impact? The audit determined that 82% of the reviewed cases should have delayed retirement benefits rather than claiming earlier. It’s estimated that the early claiming of benefits resulted in 9,224 beneficiaries (age 70+) being underpaid approximately $131.8 million in total. I anticipate that the Social Security Administration will address this operational flaw in the near future, but this serves as a good reminder of the importance of understanding and considering all your options before making a permanent decision in claiming your Social Security benefits.
LIFE: Why Sunlight Is Actually Good For You (Forbes)
I feel like this article may have been targeted to me specifically. As a fair-skinned, ginger, I have a love/hate relationship with the sun. I love it…it hates me. But, there’s good news! It may not hate me as much as I have always assumed. It turns out that scientific research has found that soaking up some sun may actually be a good idea. Sunlight elevates mood by releasing serotonin, improves sleep by increasing melatonin levels at night, strengthens the immune system by increasing Vitamin D levels in your body, lowers blood pressure through exposure to UV rays, and, most interesting of all, reduces the risk of melanoma (and other cancers) through exposure to UVB radiation. Of course, like most other things in life, enjoying in moderation is key!
KENTUCKY PENSIONS: ‘Stopgap’ budget, tax bill heads to Ky. Senate. Will it be enough to salvage pensions, education? (Herald-Leader)
This week has been full of conversation and speculation about state pension and tax reform but has lacked solid change…except the new House tax/budget bill. On Thursday, Kentucky House of Representatives passed a bill to increase taxes on cigarettes and introduce a new tax on opioid prescriptions. The new tax revenue will be used to help provide funding for the education cuts that were proposed in the original budget (i.e. SEEK, transportation, retiree health insurance). The bill is being promoted as a “Stopgap” or band-aid to address immediate budget issues while allowing more time to create more comprehensive tax reform. It’s important to note that the budget and tax bill still requires input and approval from the Senate which may lead to changes in the proposal, but nevertheless, still feels like a unified step in finding funding for some of the education budget issues.
KENTUCKY TEACHERS’ PROPOSED PENSION CALCULATOR: Unfortunately, the calculator is still in update-mode while legislators continue to debate and change the new pension reform bill presented last week.