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“Advisors not seeing a spending slowdown” (Featuring Dave Demming Sr.) Dave Sr. was
recently asked to provide insight into spending habits he has seen since the
uptick in inflation and interest rates. He mentioned that spending has remained
relatively steady, thanks to locking in low mortgage interest rates over the
last few years. Locking in those low rates has allowed for increased cash flow
and flexibility while maintaining their spending habits. “Medicare Part B standard premiums to increase by $9.80 per month in 2024” With the year coming to a close, retirees will notice two
changes coming in January; premiums for IRMAA and increased social security
income. Medicare Part B premiums actually decreased last year, from $170.10 to
$164.90. This year things are back to ‘normal’ and you will see your premiums
rise once again from $164.90 to $174.70 on the lowest bracket. Modified
Adjusted Gross Income limitations have also increased, which present increased financial
planning opportunities like Roth conversions. Additionally, after a 8.7% increase
on social security income from 2022 to 2023, those collecting social security
will now see a 3.2% increase. “401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000” The IRS recently announced the adjustments to retirement account limits for 2024. The cost-of-living adjustments include increased income phase-out ranges for Roth IRA’s, increased contribution limits, and a greater allowable deduction for charitable contributions. This may lead to new opportunities for additional retirement savings if you were previously near, or over, any of these limits.
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