SOCIAL SECURITY IN 2020
KNOW WHAT’S CHANGING
TAXES How much your benefits are taxed depends on your household income levels. For example, 50% of your benefits will be taxed if you make between $25,000–$34,000 individually or $32,000–$44,000 for married couples. If you’re above that income bracket, then 85% of your benefits will be taxable.
If you’re in the appropriate age bracket, Social Security may play a major role in your finances. So, it’s important to know how Social Security will be changing in 2020. TRUST FUND Unless Congress takes some drastic actions in the coming months, the current excess trust fund revenue will be depleted by the year 2034. If that happens, Social Security will only be able to pay 79% of the promised benefits from ongoing payroll taxes. You may need to think about what your financial plan would be like with 21% less income. RETIREMENT AGE If you haven’t reached retirement yet, this one is important to consider. If you were born after 1959, the full retirement age is now 67 for you. You’ll still
be able to start taking some benefits at age 62, but they’ll be at reduced monthly payments. COST OF LIVING Low inflation means that Social Security benefits will only see a minor cost of living increase. This year, it’s expected to be around 1.6%. It’s not major, but if you’re living off Social Security alone, every penny is important. MAXIMUM BENEFITS Those near the top of the Social Security income scale in 2019 will see an increase in their maximum payout in 2020. The maximum payout for an individual will be capped at $2,861 per month. That translates to $34,332 per year, so consider how that may impact your finances. When I started doing the tax returns for Rob Fleming’s State Farm Insurance business 11 years ago, I could tell right away he was a trustworthy, upstanding guy. We’ve never had a single problem in our years of collaboration, so when it came time for me to switch my personal insurance agent in 2012, Rob was the one I called. He’s been a great agent for me over the years and a great friend, too. Unlike most State Farm Insurance agents, Rob is able to work with clients in two different states — Wisconsin and Illinois — because his office in Kenosha is so close to the border. He handles auto insurance, homeowners insurance, condo insurance, renters insurance, life insurance, DI insurance, business insurance, and financial services, so in other words, he’s a jack-of-all- (insurance)-trades. That said, you don’t have to take my word for it that Rob is an excellent agent. Here are just a few of the things his clients are saying about him:
CLIENT SPOTLIGHT: STATE FARM AGENT ROB FLEMING
Meet the Client Who Became My Agent
“I have all my insurance with Rob and have been with his agency over 10 years,” Tina Pope writes on Google Reviews. “Professional yet friendly! Don't forget SF offers much more than home and auto. Check out their car loans. I had a couple of them and received great rates!” Also on Google, Lisa Hernandez writes, “Rob's office was awesome. They saved me money and made the insurance shopping experience very painless. Very professional,” and Vincent Hubli says, “The best around. If you want good service and quality people handing your business, this is the place to go.” If you still need convincing, visit RobertFleming. biz/ to learn more about Rob and the services he offers. He certainly has my stamp of approval, and I’m looking forward to doing his tax returns for years to come!
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