Hi guys, and welcome to the Money podcast!

When I was born back in 1955, the median house price was around $11,000. Today, it's about $330,000.

When I got my learner's license in 1970, the median price of a new car was $3,500. Today? $41,000.

When my father was born, the average annual household income was $3,300. Today it's about $70,000.

These are all examples of inflation; the erosion of the purchasing power of the dollar. Ignore it at your peril, especially if you're anywhere near retirement age, since these are the years your income will likely rise less than prices will.

We tend to think of inflation as consistent, but it's not. Sometimes inflation is low; sometimes prices actually drop year to year.

But these days, inflation is rising faster than it has in years; in some cases, decades. So, what's an investor to do?

That's what this week's "Money!" podcast is about. We're going to try to figure out if the inflation we're now experiencing is transitory, or if it's here to stay. And if we are entering a period of high inflation, we're going to talk about what you can do to fight back.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

Nearly every day, there's news that affects you and your money. From politics and taxes to markets and interest rates, things are happening that affect your savings and your future -- so many things, in fact, it's hard to keep up with them all.

Problem solved. We track everything that's happening every day. And every couple of weeks, we condense it all and report everything you need to know in a special edition of the "Money!" podcast.

In addition to recapping the news, we check in on our personal investments, and discuss ideas and suggestions to make you smarter and richer, all without boring you to death in the process.

As usual, my co-host is financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

President Biden said no one making under $400,000 will see their federal taxes go up. That's a lie... In fact, under his plan, an average family who earns over $50,000 will see a tax increase.

That was a quote from Republican House Minority Leader Kevin McCarthy on September 30 while discussing the Biden $3.5 trillion Build Back Better plan now being debated in congress.

Here's a quote from President Biden:

I give you my word as a Biden: If you make under $400,000 a year, I'll never raise your taxes one cent. But, I'm going to make those at the top start to pay their share in taxes.

One of these guys is lying. But as they say, "There are three types of lies -- lies, damn lies, and statistics."

While facts are always facts, when things get complex, politicians tend to manipulate statistics to fit their desired outcome.

Nonetheless, one of these guys is more right than the other one. Should the proposal pass, either taxes are going to go up for the middle class, or they're not.

That's what this week's "Money!" podcast is about: cutting through the rhetoric and finding out exactly what Biden's Build Back Better social spending plan promises to do, who it will affect and who's really going to be on the hook to pay for it.

As you listen, keep in mind this is a moving target. The bill is likely to have major changes and spending reductions before it passes, if it passes at all.

But if nothing else, we thought it would make for a fascinating glimpse at how something as seemingly simple as how policies are paid for is often anything but.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

When it comes to investing, this apple fell far from the family tree.

I became a Wall Street investment adviser, otherwise known as a stockbroker, in 1981 and have been an avid stock investor ever since.

My parents, on the other hand, didn't own a single share of stock until their late 50s, and only then because my mother inherited a utility stock from her aunt.

You can't blame them. My parents were survivors of the Great Depression, a time in history when stocks fell nearly 90% and some bank depositors lost it all. So it's natural they'd be more Treasury bills than stock investors. To them, the stock market was more a casino than a place for your life savings. It also helped that in their day, they didn't really need Wall Street, since they could easily earn 8% or more in risk-free T-bills or CDs.

These days, with savings rates hovering near zero, many of us have been practically forced into stocks. But even for true believers like myself, we can't put all our eggs into a volatile basket. So it's important to be aware of other potential investments. And there are a ton of them: by my count, more than 20. Not all great ideas, of course, but it pays to be aware of your options.

And that's what this week's "Money!" podcast is about: investments that don't involve stocks. So if you're like me and are reaching the upper boundaries of what you'll comfortably keep in stocks, or you're like my parents and want nothing to do with them in the first place, this is your podcast.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

Nearly every day, there's news that affects you and your money. From politics and taxes to markets and interest rates, things are happening that affect your savings and your future -- so many things, in fact, it's hard to keep up with them all.

Problem solved. We track everything that's happening every day. And every couple of weeks, we condense it all and report everything you need to know in a special edition of the "Money!" podcast.

In addition to recapping the news, we check in on our personal investments, and discuss ideas and suggestions to make you smarter and richer, all without boring you to death in the process.

As usual, my co-host is financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

For many aging Americans, Social Security is critical.

Social Security makes up at least 50% of the income for half of couples 65+ and is the sole source of income for about 20%.

Imagine being one of those recipients, then reading articles with titles like Social Security Trust Funds Now Projected to Run Out of Money Sooner Than Expected, or Social Security Will Be Insolvent by 2033. or Social Security Could Be Insolvent Within 8 Years. 

If you depend on Social Security to survive, this is scary stuff.

But if you're worried about the viability of Social Security, here's something that might offer comfort: These same types of stories have been going around since I first became an investment adviser 40 years ago. Why do they periodically repeat? First, because there's some truth to them: Social Security does face funding challenges. But I suspect it's also at least partly because scary headlines sell stories.

Still, Social Security funding issues aren't imaginary, and changes will almost certainly have to occur if the system is to remain viable. But what could those changes entail? More important, how can you best position yourself to maximize monthly checks when your time comes?

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

While nothing in life is certain -- well, except death and taxes -- as you enter your retirement years, you'll face more uncertainty than ever before.

While retirement's a time to relax, before you get there you'll be faced with risks that could derail your plans. What if you outlive your money? What if you come down with a debilitating, and expensive, illness? Will your income keep pace with inflation? Will you have enough to live the life you want? If you choose or need to work, will you physically be able to? What if taxes go up? What if Social Security goes down? Will you have enough to pay for a nursing home?

Unless you're very rich, these risks could threaten a comfortable retirement and impact the amount of money you'll need.

So a large part of retirement planning is about confronting risks: considering potential problems in advance and preparing as best you can, mentally, physically and financially.

And that's what this week's "Money!" podcast is about. We're going to talk about the biggest retirement risks and how to prepare for them. Because while it's true that the only thing in life that's certain is uncertainty, it's also true that forewarned is forearmed.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

Nearly every day, there's news that affects you and your money. From politics and taxes to markets and interest rates, things are happening that affect your savings and your future -- so many things, in fact, it's hard to keep up with them all.

Problem solved. We track everything that's happening every day. And every couple of weeks, we condense it all and report everything you need to know in a special edition of the "Money!" podcast.

In addition to recapping the news, we check in on our personal investments, and discuss ideas and suggestions to make you smarter and richer, all without boring you to death in the process.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

When I worked as a Wall Street investment adviser back in the 80s, there was basically only one way we got paid: commissions.

When I bought or sold shares of stock, the client paid about 1% of the value of the trade. When I sold an annuity, I got paid 4%. When I sold a mutual fund, the commission was anywhere from 2 to 7%.

So back then, advisers made a living by taking a slice out of whatever money you invest. And for many, that's still true today.

That system, however, isn't the best. For one thing, advisers get paid more for some investments than others, which can influence their advice. Another issue: While the best way to manage money is often to sit tight and do nothing, your adviser can't pay their mortgage unless your money is moving.

It was flaws like these, along with the desire to create a steady, predictable adviser income, that years ago led to a new model: Instead of charging per transaction, charging a set percentage, typically around 1%, of the assets under management. Got a hundred grand? Pay $1,000 a year. A million? 10 thousand.

But that system isn't ideal either. For example, does managing a million really require 10 times the effort of managing $100,000? And if the stock market doubles, does that warrant a 100% raise for your adviser?

A final way of paying for advice has also gained in popularity: paying by the hour, just as you do with an accountant or lawyer. The problem? As with an accountant or lawyer, hourly rates can be high.

So, what's an investor to do?

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.

When my parents retired, they had no issues when it came to retirement income.

In addition to Social Security, they both had retirement plans that offered a guaranteed monthly income for life. They also had investments, but they were the icing; the cake was those monthly checks. They didn't need to dip into their savings, because their income was more than enough to live on. It even adjusted for inflation.

While these types of retirement plans still exist, they're getting more and more rare. Take me, for instance: Soon I'll be eligible for Social Security, but it won't be nearly enough to support my lifestyle. And unlike my parents, I won't be getting any additional monthly checks. So my savings aren't the icing; they're the cake. It's up to me to figure out how to convert my savings into monthly checks, and up to me to make sure it will be enough to last a lifetime.

According to some researchers, retirees who have a predictable retirement income are happier than those who don't. Makes sense: Worrying about running out of money doesn't sound like a barrel of monkeys.

Solution? For many approaching retirement without a guaranteed income, it's an annuity: an insurance contract that converts a lump sum of cash into a monthly income for life.

But while annuities seem like the ideal solution to the retirement income problem, it's not all wine and roses. While ideal for some, they're not a perfect solution for all.

Want more information? Check out these resources:

Become a member: https://www.moneytalksnews.com/members/

See omnystudio.com/listener for privacy information.