COLA is sweet for Social Security recipients
If you receive
Of course, the sizable COLA is due to the high inflation of 2022, as the
Reduce withdrawals from your investment portfolio. When you're retired, you will likely need to withdraw a certain amount from your portfolio each year to meet your expenses. A boost in your
Help build your cash reserves. When you're retired, it's a good idea to maintain about a year's worth of the amount you'll spend from your portfolio in cash, while also keeping three months' of your spending needs in an emergency fund, with the money kept in a liquid, low-risk account. Your higher
Contribute to a 529 plan. You could use some of your extra
Contribute to charitable organizations. You might want to use some of your
While it's nice to have these possible options in 2023, you can't count on future COLA increases being as large. The jump in inflation in 2022 was due to several unusual factors, including pandemic-related government spending, supply shortages and the Russian invasion of
Nonetheless, while you might not want to include large annual COLA increases as part of your long-term financial strategy, you may well choose to take advantage, in some of the ways described above, of the bigger
This article was written by
HEALTH CAREMedicare plan finder likely won’t note new $35 cap on out-of-pocket insulin costs
It's the season: Seven tips for choosing your health benefits for 2023
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News