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What is a debt collector, and what do they do? | personal financing

Debt collectors are heroes or villains, depending on your point of view. If you own a business and owe money, hiring a debt collector can help you get it back. If you owe money, you may avoid that confrontation from a debt collector.

However, whatever your feelings about debt collectors, also called bill collectors, good people simply do their jobs. Here’s what a debt collector is and what they do.

What is debt collection?

Debt collection is an industry that exists to help businesses, large and small, get the money they owe. debt collectors Working for debt collection agencies, with the aim of getting people to pay what they owe. It can be a stressful and rewarding job all at once. Debt collectors face a lot of people who often want to pay their bills but can’t; At the same time, debt collectors are helping businesses, many of which cannot let unpaid bills slide.

There are a lot of reasons why someone might end up owing money to a company. According to the Consumer Financial Protection Bureau, $88 billion in medical bills is currently with debt collection agencies, affecting 1 in 5 Americans.

The task of the bill collector is to try to help a person pay what he owes, which would help improve the credit score of the debtor, as well as help the employer.

If you work as a debt collector, you will likely be in a call center at a collection agency, not the original creditor’s office. While it seems like it can be a stressful job, it does indicate that it is a profession with average work pressure. There are a lot of advantages too, especially if it’s a full-time job with benefits. The barriers to getting a job tend to be low – you’ll need a high school diploma – although you may need more education if you want a higher paying job. Many bill collectors report having a healthy work-life balance.

How do debt collection agencies work?

Debt collection agencies have one main task – to convince someone to pay back the money they owe a debt. Often, if the debt is large, this is done by arranging installment plans. Generally, debt collectors will contact debtors by phone or mail. A new rule issued by the Consumer Financial Protection Bureau that took effect on November 30, 2021 states that debt collectors are allowed to contact debtors via email, text and social media. If a debt collector communicates via social media, it should be through a private message and not, say, on a Facebook thread that everyone can see. There must also be a way for a social media user to opt out of communication via that platform.

There are two main types of collection agencies: first-party creditors and third-party creditors.

A first party creditor is not so much a debt collection agency as it is a debt collection suite, or a branch or subsidiary, of a corporation. If you had someone from your credit card, car loan lender, or financial institution entice you to catch up on the loan, you worked with a first-party creditor.

Third party creditors are collection agencies or debt buyers. These collection agencies are often set up by first-party creditors, often 30 days after the bill is due and once the first-party creditor feels there is no point in spending more time and effort on debt collection.

Often, a third-party creditor buys the right to try to collect the bill within 30 days to six months – and possibly longer, such as a year, two years or more.

These collection agencies are expected to collect debts in a responsible manner. For example, they are not allowed to belittle or harass you. They can’t send someone to your house to ask for money. They are not supposed to call more than seven times in any seven day period, and if you speak to a debt collector, they should wait seven days before calling you again. They aren’t supposed to call you at work either, before 8am or after 9pm

But some debt collection agencies have gone too far, ignoring these rules. In 2021, the Federal Trade Commission issued more than $4.86 million in refunds to consumers affected by illegal debt collection practices.

However, there are plenty of reputable debt collection agencies out there, and they provide a much-needed service. If you are a small business owner and can’t stand the money scam, a debt collection agency can be a life saver.

In terms of how they make their money, debt collection agencies sometimes work on commission – they will get a portion of the debt repaid to the company. And sometimes a debt collection agency, or debt buyer, buys the debt. According to the Minnesota Attorney General’s website, "It is not uncommon for a debt buyer to pay less than five cents for every dollar owed."

So debt buyers can buy $1,000 of debt for $50 or less. If the debt buyer manages to convince the person who owes the money to pay $1,000, that means a profit of $950. If the debt buyer can at least convince the debtor consumer to pay, say, $300, that would still be a $250 profit.

What do you do if a debt collector calls you?

The only thing you should do is pause for a while. It doesn’t mean you shouldn’t pay off a debt, but you do have some information to gather first.

For starters, the person you’re talking to may not be a true debt collector.

“One of the biggest problems with paying debts, especially student debt, is the persistent problem of fake phone calls from debt collectors as well as from those offering debt relief,” says Melanie Hanson, senior editor at EducationData.org, which provides data on the US education system. Knowing exactly who to trust in this environment can be difficult.

Hanson advises: "As a good rule of thumb, never trust a phone call on its own merits."

She suggests confirming anything you hear over the phone about your student debt by checking with an online debt collector and, ideally, directly checking your loan accounts with lenders.

“Fake fundraisers and fake relief programs thrive on getting personal information from naive debtors who think they are talking to a responsible person,” Hanson says.

Ashley Morgan, the bankruptcy attorney who owns Ashley F. Morgan Low in Herndon, Virginia, agrees that you don’t want to hastily agree to a debt payment, even if you’re pretty sure you owe money.

"If a debt collector calls you, it’s important to check the debt," Morgan says.

She also advises against admitting over the phone that you owe money. After all, you probably don’t, and this is not the time to give you ammo for debt collection that they can use against you later. Instead, Morgan says, "You should ask them to send you written correspondence about the debt they think you owe them."

Once you have this information, if you have any questions about debt, you should submit a request for information through writing, Morgan says.

“The information needed is important to help you know whether the debt is actually owed, and whether the collector has the ability to collect the debt,” Morgan says. It indicates that the debt may be subject to statute of limitations. After three to six years, and possibly longer – it depends on state law – debts often cannot be collected. As in, no one can sue you for debt.

In fact, you may want to be careful about making a partial payment on very old debts. In some states, if you do that, the time period will resume, and suddenly the statue of limitations may not run out for many more years.

It also helps to know everything you can know about Consequences of not paying debts – Like seeing your credit score drop. Remember that you can Negotiating with debt collectors Get them to agree to let you pay less than they’re owed. Find out your rights with a debt collector, so you can find out if you should report them to the Federal Trade Commission or the Consumer Financial Protection Bureau. Some of the tactics that debt collectors should not do include:

  • I call you before eight in the morning or after nine in the evening
  • Call you frequently.
  • Post any messages on social media about your debts.
  • Use vulgar or obscene language while talking to you.
  • making threats.
  • Publish lists of people who refuse to pay debts. (However, they can report the information to the credit reporting company.)
  • Lying about how much you owe.
  • He lied to you at all. (They can’t, for example, tell you that you’ll be jailed if you don’t pay. They can’t call you pretending to be someone else.)

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Why do Americans make the mistake of keeping liquidity out of the volatile stock market

If your favorite store offers 13% off merchandise, you should probably fill up your cart. But if you’re like many Americans, you may find that you’re not quite as enthusiastic about the markdown when it comes to buying stocks.

The S&P 500 – the common proxy for the broad US stock market – fell 13% in 2022, but people aren’t buying more shares at cheaper rates. Only 1 in 4 Americans say it’s a good time to invest in the stock market, according to A A recent survey from Allianz Lifeand 65% say they keep more money outside the market than they should for fear of investment losses.

These concerns aren’t completely unfounded: any investment has the potential to go down, and investment losses can be painful—especially for people who plan to live on their investment income in the short term.

If you’ve been investing for a goal that’s years away from you, letting fear keep your money out of the market, says Kelly Lavin, vice president of consumer insights at Allianz Life.

"When the market is doing well, people throw their money into it. And when the market is performing badly, they keep their money out," he says. "It does the exact opposite of what it’s supposed to do."

Here’s why investment experts say it’s unwise to keep your money out of the market right now, even though things look scary.

Young investors: time is on your side

Market Timing: “You’ll Miss the Rise”

“But wait,” you might think. "I’m not going to wait five years to get my money back in the game. I’m just waiting for the market to hit the bottom so I can ride again."

And herein lies the problem: in order to achieve long-term gains, you must invest in the best days of the market. And these often come right after the worst.

Over the 20-year period ending December 31, 2021, the S&P 500 has returned at an annualized rate of 9.52%. Remove the top 10 days from that period, and the yield drops to 5.33%, according to Analysis from JP Morgan. During that period, seven of the best market days occurred two weeks after the 10 worst days.

“We have no idea where the bottom of this pullback will be, but we know with almost certainty that if you keep money out of the market, you will miss out on the slight increase,” Lavigne says. "The worst thing you can do is not be in the market when it starts to shift."

Invest consistently through bear markets

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3 Reasons You Should Wait To Get Social Security | Smart Change: Personal Finance

(Mark Blank)

Should you access Social Security benefits as soon as possible or wait to try to maximize your monthly benefit? Everyone’s situation is slightly different, but there are some really compelling reasons to delay taking advantage of the benefits you’re getting.

Let’s look at the top three reasons for delaying receiving your Social Security benefits until age 70.

Image source: Getty Images.

1. You have a high life expectancy

Life expectancy has a significant impact on this decision. The two main components to consider are:

  1. Your current health condition.
  2. The longevity of your family.

If you are healthy and your family has a history of living well into their 80s or 90s, it makes sense to increase your monthly benefits by waiting until age 70 to claim Social Security.

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average tie Waiting point for benefits is 70 years (assuming a full retirement age from 67). The break-even point is the age you would need to live, so the wait is worth it.

In other words, as long as you expect to live past the age of 81, you will receive more overall benefits. Larger and fewer checks will outweigh the number of smaller and more frequent checks you will receive if you order earlier.

This is also important because your health care costs after age 80 are likely to be higher, so the extra income can make a big difference.

2. You plan to continue working

Many Americans plan to continue working beyond their usual retirement age. A 2021 Cision survey found that nearly 33% of older Americans plan to continue working well into their 70s.

As life expectancy continues to rise, it is likely that many Americans plan to work throughout their 60s. In this case, it makes a lot of sense to delay getting Social Security benefits until 70 because your benefits can be penalized by continuing to work.

If you are below full retirement age, the Social Security Administration deducts $1 for every $2 of annual income you earn over $1,560. The minimum is $51,960 if you reach full retirement age that year, and the deduction is $1 for every $3 of earnings. Plus, you can pay higher taxes on Social Security benefits since you get temporary income You’ll be higher while you’re still working.

While there are times it might make sense to take it social Security While you’re still employed, in general, it’s best to wait until you retire fully or at least make less than $1,560 to claim your benefits.

3. You do not need additional income

In my opinion, the number one reason for taking Social Security benefits early is because you need the income. But if you don’t need the extra income to continue living comfortably, it’s probably best to delay getting your benefits.

If you plan appropriately for retirement, you probably have enough monthly income from retirement accounts like yours 401(k)And the pensionor Ruth Iran To cover your expenses and the lifestyle you want.

If this is the case, you should almost certainly wait until age 70 to maximize the monthly benefits (assuming you have a long life expectancy). After all, you can get approximately 60% more cash each month by waiting (assuming your full retirement age is $1,500, the benefit at age 62 would be 30% less or $1,050. Maturity at $70 would be 120% or $1,800, so $1,050 / $1,800 = 58%).

As your life slows down, this extra monthly income will provide a security blanket and peace of mind so you can focus on spending time doing the things that matter most to you, rather than focusing on finances.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

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Don’t keep an HSA in cash – put it to work instead | Smart Change: Personal Finance

(Ryan Sze)

In 2020, the per capita GDP in the United States is $63,487. In the same year, per capita health care spending was $11,945, meaning that the country spent nearly 19% of its GDP per capita on health care.

This portion is twice what peer countries spend on health care. For comparison, Norway’s GDP per capita in 2020 was $68,359, but the Scandinavian country spent only $6,748 on healthcare per capita – just under 10% of GDP per capita.

It is not surprising, then, that health care in the United States is somewhat expensive. Fortunately, very sure tax advantages like Health Savings Account (HSA)It can help you offset some of these costs.

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And HSA is not strictly Saving account. While you can treat it like a fund for rainy days and keep it all in cash, it may be a good idea to put your HSA balance to work instead, especially if you don’t anticipate any health care expenses in the near future or you have a large account balance.

Image source: Getty Images

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In 2022, the HSA contribution limit was $3,650 for individuals and $7,300 for families. To qualify for an HSA, you or your family must be enrolled in a High Deductible Health Plan (HDHP), with deductible At least $1,400 for individuals or $2,800 for families.

While this contribution limit may not seem like much — and may not even cover a year’s worth of health care expenses in some cases — it can increase over time. If you go for several years without having to withdraw from HSA, you could have a large amount in the account.

For example, suppose you contribute an HSA limit each year for three years and have not made any withdrawals during that period. By the end of year three, you will have approximately $11,000 in the account.

However, this is assuming you leave your money in cash and earn no interest. What if you invested your money instead? If you put money in a stock index fund in a broad market like Vanguard Total Stock Market Index Fund ETF (NYSEMKT: VTI) And achieving a compound annual growth rate (CAGR) of 10% (roughly equal to the long-term average annual return for the underlying index), you’ll have just over $12,000, or about $1,000 more than if you didn’t invest at all.

But what if you did this for a long period of time – for 10, 20, or even 30 years? Here are the numbers:

all the time

Cash Only (0% CAGR)

Bear portfolio (8% compound annual growth rate)

Base Case (10% CAGR)

Taurus Case (12% CAGR)

10 years

$36,500

$45,554

$49,537

$64,017

20 years

$73,000

$166,939

$208,939

$262,847

30 years

109,500 dollars

$413,257

$600,074

$88,381

As you can see, you end up with an extension Many HSA is greater if you Investing the balance instead of keeping the money in cash. As the amount of time increases, the gap between the fully cashed HSA and the HSA that is employed and invested increases.

For example, you will have $208,939 in your HSA after accruing 10% for 20 years — nearly three times the amount you would have made by keeping the money in cash. And over the course of 30 years, you’ll end up with over $600,000 – nearly half a million more than your total HSA in cash.

Make your HSA work for you

HSAs are first and foremost a tool for covering health care expenses. But these costs often come in sporadic fits, and it may be several years without spending much before you suddenly incur a major hospital or surgery bill.

During those years, he continued to make HSA contributions. And once the money is in your account, make sure it’s working hard for you. By investing this HSA money, you may end up with a significantly higher balance than if you kept your money in cash, especially over time. This way, you’ll be able to sleep peacefully at night knowing you can comfortably afford your healthcare, no matter how much the things you get.

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Seniors on Social Security expect big changes in 2023 | Smart Change: Personal Finance

(Katie Brockman)

It has been a difficult year for many seniors. Inflation was on the rise, the stock market was falling, and a recession seemed more and more likely.

Nearly 90% of current retirees say Social Security is either a primary or secondary source of income, according to a 2022 Gallup survey. It’s helpful, then, to understand upcoming changes to the program and how they might affect your retirement income.

It was a historic year for Social Security, and the changes in 2023 could be massive. While we won’t know all the details until later this year, here’s what you can expect.

Image source: Getty Images.

1. Record breaking COLA

A cost-of-living adjustment, or cost-of-living adjustment, is an annual increase in benefits to help Social Security keep pace with inflation. Typically, the value of COLA decreases between 2% and 4% per year. In 2021, seniors made a whopping 5.9% rise to explain higher inflation late in the year.

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Next year, the value of COLA will almost certainly be higher. Inflation is at its highest level in decades, which means recipients will likely experience one of the largest cash collections (COLA) on record.

Seniors will need to wait until October to see exactly how much they will get, which is when the Social Security Administration announces the new COLA. Some experts have predicted it could fall anywhere from 8.6% to 10.8%, though, based on inflation data so far this year.

2. Highest interest amount

High inflation affects almost all aspects of Social Security. Higher COLA rates result in more monthly checks for seniors, and this also means an increased maximum benefit amount.

The maximum benefit amount depends on your earnings history, the length of your career, and the age at which you begin claiming Social Security. In 2022, it $4,194 per month. But based on the record-breaking COLA we’ll likely see, there’s a good chance it will be even higher in 2023.

Exactly how much will change is uncertain. However, between 2021 and 2022, it increased by about $300 per month. With inflation rising, the increase next year is almost certain to be even greater.

To be fair, only a small percentage of seniors will be eligible for the maximum benefit amount. But if you aim for as many checks as possible, there will be more money available in 2023.

3. Maximum profit limit

If you continue to work after applying for Social Security, you may get more monthly checks in 2023.

During the years before you full retirement age (FRA), your income will be subject to the earnings limit. If your salary exceeds this limit, a portion of your Social Security benefits will be withheld until you reach your FRA. In some cases, the entire benefit amount will likely be deducted, depending on how much income you earn.

In 2022, that limit would be $5,660 per year (or $51,960 if you were to reach your HR assessment this year). Since inflation has been so high, these limits will likely increase significantly in 2023 – which means you’ll be able to earn more without withholding your benefits.

Inflation has been hard on everyone, and the elderly are no exception. Although we won’t know the details of next year’s Social Security changes until the coming months, they could help make higher costs more bearable.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

Motley Fool has a profile Disclosure Policy.

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Should I invest in an automated advisor? | Smart Change: Personal Finance

(Javier Simon)

Want to jump into the investing world, but aren’t sure about picking out your stocks and managing your own portfolio? An automated advisor can do all of that for you.

A robo-advisor is a digital platform that uses computer algorithms to build and manage a diversified portfolio based on your risk tolerance, financial goals, and other personal factors. It also automatically rebalances your portfolio based on market conditions and your investment objectives. While this sounds neat, a bot advisor can pose some significant risks. Before you invest, you need to weigh the pros and cons.

Benefits of an automated advisor

The popularity of bot advisors continues to grow. According to a study by international consultancy Deloitte, assets under management with the support of robo advisors could grow to more than $16 trillion by 2025 — about three times that of BlackRock, the world’s largest asset manager. In fact, robo-advisors may offer several features that will appeal to investors looking for a laissez-faire, no-hassle approach.

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costsA human financial advisor may charge a fee for assets under management (AUM) of 1% or higher. The Robo-Advisor’s AUM fee can range from 0% to 0.40%. To put that into perspective, the 1% annual AUM fee on an investment of $10,000 goes up to $100. The 0.25% AUM fee on an investment of $10,000 is just $25 per year.

diversification: Most of the bot advisors provide you with a questionnaire about your financial goals, risk tolerance and more. The algorithm uses these answers to recommend an investment mix.

Automatic rebalancingMarket conditions can shake up your investment mix, and may leave you too focused on one asset class — leaving you exposed to significant risks in the event of a downturn. When this happens, automated advisors rebalance your portfolio back to its original investment mix, sometimes by selling investments that have gone up and using the proceeds to buy those that have gone down.

Image source: Getty Images

The downside of robo-advisors

Despite the hype, bot consultants have their potential drawbacks:

hidden costs: Although bot advisors charge much lower management fees than traditional advisors, your money is still swallowed up by Expense ratios Or the fees charged by the funds in your wallet. Some may argue that you can simply open a file Discount brokerage account And invest in these funds yourself, completely avoiding AUM fees. There are plenty of online asset allocators that can recommend a customized investment mix, similar to how an automated advisor uses a survey.

fluctuating fees: Some bot advisors may increase their AUM fee as your balance increases. The more you invest with them, the larger the stake they take.

A little human interaction: If you’re on a paid plan or pay an extra fee, some bot advisors give you access to financial planners who can help you achieve other financial goals like paying off high-interest debt. But many plans do not provide access to human advisors at all. For those looking for a hybrid service that allows you to talk to a human consultant when you want to, your options may be limited.

Is an automated advisor right for me?

If you are comfortable with handing investment management over to advanced algorithms and specialists, and accepting limited investment options for potentially low fees, then an automated advisor may be in your pocket.

But if you are experienced or have little time to build your investment acumen, building and managing your own portfolio may be a better bet.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

The fraudulent shareholder Javier Simon has no financial position in any of the companies mentioned. Motley Fool has a profile Disclosure Policy.

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Democrats seem to be turning to climate and health after ups and downs

Washington – It’s been over a year and I’ve seen a lot of ups and downs. Now, a democratic economic package focused on the climate and health Sponsorship faces hurdles but appears headed toward passing the party line by Congress next month.

The approval would allow President Joe Biden and his party to claim a win as the top priority as the November elections approach. They haven’t forgotten that they came close to approving a much larger version of the bill last year, only to see Senator Joe Manchin, D.

This time, Senate Majority Leader Chuck Schumer, DNY, penned a settlement package with Manchin, to everyone’s surprise, turning West Virginia from pariah into partner. This measure is more modest than previous versions, but it still checks the boxes on issues that make Democrats durable.

Here’s what they encounter:

What is in it?

This measure will raise $739 billion in revenue over 10 years and spend $433 billion. More than $300 billion will be left to reduce the federal deficit.

These are meaningful cuts in red ink. But it is small compared to the $16 trillion in new debt that the nonpartisan Congressional Budget Office expects to accrue over the next decade.

The package will save consumers and government money by reducing prescription drug prices, and will support the private sector health Insurance for millions of people. It will boost the IRS budget so the tax agency can collect more unpaid taxes.

The plan will promote clean energy and offshore energy drilling, a balance that Manchin, the fossil fuel champion, has demanded. It will also collect new taxes from the largest companies and wealthy hedge fund owners.

It’s a small part of the $3.5 trillion package Biden proposed early in his presidency, which also depicts payments for initiatives like paid family leave and universal preschool. It’s also smaller than the nearly $2 trillion alternative that passed the House last November after Manchin demanded cuts, then derailed the deal anyway, citing inflation concerns.

———

It is now called the "Law of Reducing Inflation," but…

… will you do that? It certainly can, but there are defectors.

First, some context.

According to one inflation gauge that the Federal Reserve studies closely, prices jumped 6.8% in June from a year ago, the largest increase in four decades. This came on the heels of government figures that showed the economy contracted again in the last quarter, adding to recession fears.

"Improving tax collection, drug savings and deficit reduction will put downward pressure on inflation," the Committee on Responsible Federal Budget said Friday. Regarding the delirium review, the bipartisan financial watchdog group described the legislation as "the kind of package that lawmakers should put in place to help the economy in many ways."

"Reducing deficits almost always reduces inflation," Jason Furman, a Harvard economics professor who has been President Barack Obama’s chief economic adviser, wrote Friday in the Wall Street Journal. The measure will also reduce inflation by slowing the growth of prescription drug prices, he said.

A more realistic assessment came from the University of Pennsylvania’s Ben Wharton budget model, which analyzes economic issues.

"The law will increase inflation very slightly through 2024 and reduce inflation thereafter. Point estimates are statistically indistinguishable from zero, indicating low confidence that the legislation will have any impact on inflation," the group wrote on Friday.

A chorus of Republicans says the Democrats' bill would be extremely harmful. Senate Minority Leader Mitch McConnell, R-Kentucky, calls it a "giant package of massive new job-killing tax increases, the Green New Deal madness that will kill American energy, and prescription drug socialism that will leave us with new, life-saving fewer." Drugs."

———

Upcoming changes

The 725-page scale will likely change somewhat.

Schumer said last week that Democrats plan to add language aimed at lowering costs for patients with insulin, a diabetes drug that can cost hundreds of dollars a month.

Insulin price restrictions have been a highlight of the Democrats' biggest package of the past year, including a cap of $35 a month for patients who get the drug through Medicare or private insurance companies. But that fell apart this year as the measure was scaled back.

Senator Jane Shaheen, DN.H. , and Susan Collins, R-Min, Invoice Determining the Price of Insulin. The prospects for this measure diminished after the nonpartisan Congressional Budget Office estimated it would cost about $23 billion and actually increase the price of insulin. Nor did lawmakers take out the 10 Republicans who would be needed to succeed in the 50-50 Senate, where most bills need 60 votes.

It’s unclear what the new insulin language will do to Democrats. Previous language requiring private insurers to cap insulin at $35 a month would violate room rules, which only allow for benefits that primarily affect the federal budget.

Additionally, under the process Democrats use to move the measure through the room by a simple majority, with Vice President Kamala Harris' vote-breaking, he would face multiple amendments in a voting session that could last all night, and there’s no telling whether some will pass.

———

horizons

It seems like every Republican is ready to vote "No."

Democrats will need all 50 of their votes in the Senate, as Senator Kirsten Senema, D-Arizona, has yet to make her point.

The Democrats cannot lose more than four House votes to succeed there. House Speaker Nancy Pelosi, a Democrat from California, said Friday that when the Senate approves the package, "we will approve it."

Schumer wants Senate approval next week. He admitted that the schedule "will be difficult" because it will take some time for the parliamentarian in the chamber to ensure that the bill complies with the rules of the Senate.

This, too, will take luck. All 50 Democrats, including the independents who support them, will have to be healthy enough to turn up and vote.

This is not guaranteed. The latest highly contagious COVID-19 variant is spreading across the country. The House has 33 senators aged 70 or over, including 19 Democrats.

Senator Richard Durbin, D-Illinois, 77, was the last senator to announce that he had contracted the disease. Senator Patrick Leahy, D-Vatu, 82, was discharged after hip surgery. Both are expected to return next week.

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Claim Social Security at 62? You Might Regret That Smart Change: Personal Finance

(Selina Marangian)

One day, you’ll likely be among the tens of millions of Americans who collect Social Security (65 million, as of 2021). How much will you collect? Well, the answer to that is different for each of us, and it mostly depends on how much we’ve earned in our working lives – and also to a greater degree when we start collecting benefits.

We can start compiling as early as age 62, and most people start compiling around age 62 or 63. There are good reasons not to do this – as well as some arguments in favor of it. Here’s a closer look at why you might regret claiming at 62 — followed by some reasons that might make sense to you.

Image source: Getty Images.

1. You will end up with smaller checks

Most of us havefull retirement age“Where we can start to collect the full benefits that we are entitled to, based on our earnings history, and for most of us, it’s 66 or 67. For every year before the full retirement age that you get your benefits, it will shrink specifically, you’ll get About 70% to 75% of your full benefits if you start collecting at age 62.

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This isn’t ideal, but it’s also not as bad as it sounds – after all, while the checks may be smaller, you’ll collect a lot more in total. For those who live moderately long lives, there won’t be much difference in the total benefits received regardless of when benefits start to be provided.

2. Pretending too soon can ruin a smart matrimonial strategy

However, you should think about the bigger picture before deciding when to start collecting your benefits. For example, married people may benefit most from Social Security by coordinating when each of them begins. While both of you will enjoy two benefits checks each month, it’s possible that at some point, one of you will go — and then only one will be arriving. The rules allow you to collect any greater benefit. So it’s worth trying to check at least one of your benefits as closely as possible.

A good way to maximize your benefits is to delay the start of earning it – until age 70. If the spouse with the largest earnings delays until the age of 70, this can greatly help the lower-income earner, if he or she is a surviving spouse in the future.

3. If you plan to continue working, your benefits may diminish

Another consideration is if you Plan to continue working After age 62. If you start collecting Social Security and then also work, if you earn more than a certain amount, the Social Security Administration (SSA) may cut your benefits. As he explains:

If you’re under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $5,660.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different threshold. In 2022, your maximum earnings are $51,960. We only calculate your earnings until the month before you reach your full retirement age, not your earnings for the entire year.

This may sound horrible, but once you reach your full retirement age, the SSA will stop withholding benefits and will recalculate your benefits, given what was withheld. So you will get at least some of the retained benefits. However, it may be best not to start collecting these benefits early if you plan to continue working for much longer.

on the other side…

Despite the above reasons, there be Some reasons why you might want to start collecting files Social Security benefits early. For example:

  • You don’t know how long you will live. If you end up waiting until age 70 to collect the money and then die at age 72, you won’t be out much of Social Security. Think a little about your health and how long your relatives lived. If you have a good chance of living a very long life, delaying as long as possible may be best.
  • Perhaps you can afford to retire early. Many people start reaping the benefits early because they have to. They may have lost their jobs or for whatever reason they simply need this income ASAP. Many of those who can afford to delay should start collecting their benefits, but if you do a great job saving and investing for retirement and can afford to retire early, starting early can make sense.

The decision on when to start collecting Social Security benefits will be different for most of us. Take some time to learn more and think about everything before taking any actions, so that you can get as much out of the program as possible.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

Motley Fool has a profile Disclosure Policy.

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Earn $300 in Quarterly Retirement Profits in 3 Easy Steps | personal financing

Generating passive income through dividends is especially important these days, as the stock market has had negative returns for the better part of the year now. But perhaps it’s even more important in retirement, when that extra income can come in handy. It can definitely give you some money to spend to supplement retirement accounts or Social Security checks.

Here are three steps to earning about $300 per quarter, or $100 per month, in dividend income.

Step 1: Find high-yield stocks with stable dividends

Dividend yield is the percentage of the stock price that a company pays in dividends. The average dividend yield for the S&P 500 is around 1.7% right now. In general, the yield that exceeds that is considered very good. To determine if a dividend is sustainable, the payout ratio – the percentage of dividends used to pay dividends – must be less than 50% in most cases.

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Often Best Dividends They are those of large, well-established firms that are among the leaders in their industries. Many of these companies have stable profits and a commitment to maintain or increase their profits. A good place to look for these stocks is on the Dividend Aristocrats list, which are companies that have increased annual dividends at least 25 years in a row. It’s not the only source, but it’s definitely a good place to start.

Step 2: Build your portfolio of dividend stocks

So, with these metrics in mind, the next step is to develop a portfolio of stocks that are poised to generate consistent, high-return passive income in retirement. For the purpose of this assumption, let’s extract from a list Distributed Aristocrats And identify some solid dividend stocks.

One is the asset manager T. Rowe Price Group (NASDAQ: TROW), which has a return of 3.99% and a quarterly dividend of $1.20, with a payout ratio of 36%. Its dividend has increased for 36 consecutive years. Another company is the pharmaceutical company Abvi (NYSE: ABBV), which has a return of 3.75% and a quarterly dividend of $1.41, with a payout ratio of 42%. AbbVie has increased its dividend for 50 consecutive years.

Each of these stocks have above-average returns, manageable payout ratios, and a long history of supporting their dividends, as well as being leaders in their industries. It should also be noted that AbbVie is up 12% year-to-date and has posted an average annual return of 16% over the past 10 years. T. Rowe’s price is down 40% since the start of the year, but all asset managers are struggling in this bear market. However, T. Rowe Price has generated an average annual return of 7% over the past 10 years and has virtually no debt, making it a reliable dividend payer.

Step 3: Make a plan

If your idea is born passive income When you retire, it’s important to have a strategy for getting there. How much do you need to invest in these stocks to make a significant portion of the income? Let’s say you invest $15,000 in both of these stocks. T. Rowe Price is trading at around $117 per share, so you can buy approximately 130 shares for just over $15,000. AbbVie is trading for $153 per share, so you can get 98 shares for as little as $15,000.

For T. Rowe Price, 130 shares at $1.20 per share would generate approximately $156 per quarter, while for AbbVie, 98 shares at $1.41 per share would earn approximately $138 per quarter. That calculates to about $294 per quarter, and $98 per month.

Keep in mind that these stocks will also generate increased capital, not just dividend income, so that the investment grows over time. T. Rowe Price has posted an annual return of 7% for the past 10 years, while AbbVie has posted an average annual return of 16%. So, you are not only getting passive income, but you are also getting solid returns that you can utilize when you need it.

10 stocks we like better than T. Rowe Price Group

When our award-winning analyst team has stock advice, they can pay to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Stock AdvisorThe market tripled. *

They just revealed what they think Top ten stocks For investors to buy now… And the T. Rowe Price Group was not one of them! That’s right – they think these 10 stocks are the best buys.

*Stock Advisor returns from June 2, 2022

Dave Kowalski He has no position in any of the mentioned shares. The Motley Fool does not have a position in any of the stocks mentioned. Motley Fool has a profile Disclosure Policy.

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Claim Social Security at 62? You may regret it Personal Finance

(Selina Marangian)

One day, you’ll likely be among the tens of millions of Americans who collect Social Security (65 million, as of 2021). How much will you collect? Well, the answer to that is different for each of us, and it mostly depends on how much we’ve earned in our working lives – and also to a greater degree when we start collecting our benefits.

We can start compiling as early as age 62, and most people start compiling around age 62 or 63. There are good reasons not to do this – as well as some arguments in favor of it. Here’s a closer look at why you might regret claiming at 62 — followed by some reasons that might make sense to you.

Image source: Getty Images.

1. You will end up with smaller checks

Most of us havefull retirement age“Where we can start to collect the full benefits that we are entitled to, based on our earnings history, and for most of us, it’s 66 or 67. For every year before the full retirement age that you get your benefits, it will shrink specifically, you’ll get About 70% to 75% of your full benefits if you start collecting at age 62.

People also read…

This isn’t ideal, but it’s also not as bad as it sounds – after all, while the checks may be smaller, you’ll collect a lot more in total. For those who live moderately long lives, there won’t be much difference in the total benefits received regardless of when benefits start to be provided.

2. Pretending too soon can ruin a smart matrimonial strategy

However, you should think about the bigger picture before deciding when to start collecting your benefits. For example, married people may benefit most from Social Security by coordinating when each of them begins. While both of you will enjoy two benefits checks each month, it’s possible that at some point, one of you will go — and then only one will be arriving. The rules allow you to collect any greater benefit. So it’s worth trying to check at least one of your benefits as closely as possible.

A good way to maximize your benefits is to delay the start of earning it – until age 70. If the spouse with the largest earnings delays until the age of 70, this can greatly help the lower-income earner, if he or she is a surviving spouse in the future.

3. If you plan to continue working, your benefits may diminish

Another consideration is if you Plan to continue working After age 62. If you start collecting Social Security and then also work, if you earn more than a certain amount, the Social Security Administration (SSA) may cut your benefits. As he explains:

If you’re under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $5,660.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different threshold. In 2022, your maximum earnings are $51,960. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.

This may sound horrible, but once you reach your full retirement age, the SSA will stop withholding benefits and will recalculate your benefits, given what was withheld. So you will get at least some of the retained benefits. However, it may be best not to start collecting these benefits early if you plan to continue working for much longer.

on the other side…

Despite the above reasons, there be Some reasons why you might want to start collecting files Social Security benefits early. For example:

  • You don’t know how long you will live. If you end up waiting until age 70 to collect the money and then die at age 72, you won’t be out much of Social Security. Think a little about your health and how long your relatives lived. If you have a good chance of living a very long life, delaying as long as possible may be best.
  • Perhaps you can afford to retire early. Many people start reaping the benefits early because they have to. They may have lost their jobs or for whatever reason they simply need this income ASAP. Many of those who can afford to delay should start collecting their benefits, but if you do a great job saving and investing for retirement and can afford to retire early, starting early can make sense.

The decision on when to start collecting Social Security benefits will be different for most of us. Take some time to learn more and think about everything before taking any actions, so that you can get as much out of the program as possible.

The $18,984 Social Security bonus is totally overlooked by most retirees

If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known "Social Security secrets" can help ensure a higher retirement income. For example: One easy trick can pay you up to $18,984 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

Motley Fool has a profile Disclosure Policy.

.