Social Security COLAs: Are Bigger Increases Coming?

Social Security cost-of-living adjustments have been under threat, but some lawmakers think Social Security COLAs should be bigger. Find out why here.

Mar 23, 2014 at 8:30AM

The debate over Social Security continues to rage, as lawmakers argue about whether to expand or reduce benefits. In response to earlier efforts to reduce the rate of increase of Social Security cost of living adjustments, one new proposal actually could lead to bigger COLA increases in the future.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the idea of using a different measure of inflation to make Social Security COLAs. Currently, the Social Security Administration uses the regular Consumer Price Index to determine how much to raise benefits, and previous efforts to use a smaller measure called the Chained CPI has run into huge resistance. Yet some lawmakers think that using a version of the CPI that targets the expenses that elderly Americans have to pay is the smartest move, with the so-called CPI-E arguably reflecting their actual inflation more closely. Dan points out that opponents object to raising the wage base on which Social Security taxes are imposed to pay for the measure, and he concludes that the debate is likely to rage on for years.

Get every penny of your Social Security
Keep track of cost-of-living adjustments is just one thing you have to consider in your retirement planning. Get all the Social Security benefits you're entitled to by reading our brand-new free report, "Make Social Security Work Harder for You," in which our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information