Great to have you again as the week gets going. Good plans start with an honest look at where you stand today, before you decide where to go next. Today’s issue helps bring that picture into focus.
On the money today:
Social Security updated millions of records, and opting in by Nov. 18 could help you catch a mistake early
The net worth line for ‘upper class’ in your 60s, and the step if you’re short of it
Fidelity and Vanguard both see stock returns well below the 10% average, and retirees have the most to lose
Let's get into it.
BEHIND THE HEADLINE
The SSA’s error rate is tiny. The number of living Americans it marks dead is not
The SSA says fewer than 1 in 300 reported deaths is a mistake. On the roughly 2.9 million it processes a year, that is up to about 9,600 living Americans. A 2011 audit by the SSA’s own inspector general found 36,657 living Americans wrongly marked dead over three years, and a mistake like that can halt Medicare and freeze bank accounts. For a retiree on the average $2,095 check, every month without it is $2,095 missing. Keep reading to find out why the SSA’s latest records update is worth a closer look.
Have you ever found a mistake on an official record, like Social Security, a credit report or a bank statement? Hit reply and tell us what it was and how you got it fixed. Your story may be featured in a future issue.
MUST READ
Everyone is talking about the 3.6% COLA. Fewer noticed that the SSA recently finished updating its records, adding missing death and citizenship details to about 1 in 7 Social Security numbers. If an error slips into yours, the mailed COLA notice arrives roughly three weeks after the online one, leaving less time to fix it. Opt into paperless notices by Nov. 18 and you’ll see yours first.
Why it matters: Even by the SSA’s own count, less than one-third of 1% of reported deaths are errors, which still adds up to tens of thousands of people. With a 3.6% COLA adding about $75 a month to the average check, a few minutes to confirm your record is worth it before the new year.
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NEWS
Here’s the minimum net worth you need to be considered ‘upper class’ in your 60s — and the magic step that can help if you’re not there yet
Baby boomers are the wealthiest generation in history, yet that fortune is far from evenly shared. Being ‘upper class’ in your 60s comes down to one specific net worth line, and there’s a step that can help you reach it faster. Find out where you stand before you plan your next move.
Why it matters: The Washington Post puts boomers’ combined assets at $85 trillion to $93 trillion, yet CBS News reports a retirement study found about 53% of those turning 65 between 2024 and 2030 have less than $250,000. That gap is wide enough that where you rank is worth knowing before your plan is set.
RETIREMENT
Fidelity, Vanguard issue the same sobering 10-year outlook — and US retirees stand to suffer most. Protect your nest egg before it gets crushed
Most retirement plans are built on the stock market’s long-run average, and Fidelity and Vanguard have both published forecasts that come in well below it. How far below, and what that gap could mean for your first years of withdrawals, is worth knowing before the market tests it.
One way to prepare is a cash buffer covering six months to a year of spending, so a rough market doesn’t force you to sell stocks at a loss. A Wealthfront Cash Account has a base APY of 3.55%†, with no minimum balance or account fees and up to $8 million in FDIC insurance eligibility through program banks.
New clients can earn up to 4.55%† with a 3-month promotional boost and qualifying monthly deposits. It’s one tool among several, alongside your withdrawal plan.
Why it matters: At a 10% return, $500,000 grows to about $1.3 million in a decade, but at 5% it reaches around $814,000, a gap of nearly $500,000 on the same savings. Early retirees feel that shortfall first, when withdrawals are already underway.
MONEY IQ
Picture retirement with no Social Security check at all. About what share of Americans 65 and older would be living below the poverty line without it?
ALSO MAKING THE ROUNDS TODAY
Dave Ramsey says virtually everyone should have long-term care coverage by 59 or 60, and with assisted living at a median $6,200 a month, what a policy costs at that age is worth knowing before you shop
A retiree who falls $20,000 short on a required minimum distribution can owe the IRS $5,000, and since each 401(k) has its own withdrawal requirement, pulling enough from an IRA may not cover every account
Retirees who haven’t reached full retirement age can earn $25,560 in 2027 before Social Security starts withholding benefits, and someone earning $32,000 would see $3,220 held back, so telling the SSA what you expect to earn can keep an overpayment from landing on you later
A retired Tennessee couple was billed $1,800 for a fire at their neighbor’s house, and with Rural Metro saying homeowners insurance doesn’t cover response charges, it’s worth finding out who provides fire service where you live
FROM OUR READERS
On Saturday, we asked readers about the smartest or most costly decision they’ve made about their home, inspired by our Must Read on borrowing against your home. One reader wrote in with a reply we wanted to share, about paying off her mortgage in 9 years and what happened when she tried to pass the strategy on to her son.
I bought my house in very high-interest times, so I decided to make fast and furious principal prepayments. I wrote on the front of every extra check, “For Principal Prepayment Only.” Even though I was a low-wage earner, my home was paid off in 9 years. I tried to tell my son, whom I’d lent his $10,000 down payment, but he insisted he would lose his annual tax deduction (gain hundreds, lose thousands). His house, his loss.
MONEY IQ ANSWER: HOW DID YOU DO?
The correct answer is B) About 4 in 10. The Center on Budget and Policy Priorities estimates more than 40% of Americans 65 and older would fall below the poverty line without Social Security, against under 10% with it. For most people it supports, the check is the foundation, which is why an error on your record deserves a second look.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every one.
See you soon with another quick roundup of the financial news that matters.
Social Security issues major update to millions of Americans — and it’s a more critical change than COLA. What you must do before Nov. 18