Social Security Trust Fund Running Dry, Congress Should Act Sooner Rather Than Later : By Derek Baine

A woman looking out of the window at her home.


According to a Pew Research poll, roughly half of Americans younger than age 50 believe they won’t receive any Social Security benefits.  However, that’s unlikely to be the case.  It’s true, we haven’t had a surplus in the Social Security Trust Fund since 2010 and if nothing is done in the next couple of decades there would have to be cuts in Social Security benefits.  The current date for that is 2034.  However, this would be a big political fiasco for anyone in office at the time, so politicians are likely to act well before that happens.  Hopefully they will raise payroll taxes.  However, another option they have is to keeping raising the year in which you retire.

https://www.forbes.com/advisor/retirement/how-to-save-social-security/?tid=newsletter-dailydozen&utm_source=newsletter&utm_medium=email&utm_campaign=dailydozen&cdlcid=607e1442fe2c195e916f3bb4

Give The Gift Of A College Education To Your Grandchildren, And Do It Tax Free


When doing your estate planning, if you plan to include your grandchildren in your estate, consider giving them some of the money sooner rather than later so that they can get a good college education.  In 2021, you can give up to $15K ($30K with a spouse) to anyone, with no limit on the number of recipients or tax consequences, for either you or the person receiving the gift.  You can consolidate five years of giving into a $75K gift payable over five years, according to the IRS.  If the tuition is paid directly to the school, you can give an unlimited amount tax-free without having to file a gift tax return.  The funds can be used for tuition only, not books, supplies or room and board (Kiplinger’s Retirement Report, August 2021, P11).