Cash Management And The Term Structure Of Interest Rates, Series I Savings Bonds & Medicare IRMAA
b"In this episode of the Planned Solutions Incorporated Podcast, The yield curve is currently inverted meaning short-term term deposits are paying a higher interest rate than longer-term deposits. So, why would savers commit to longer-term deposits at a lower interest rate? It all comes down to the expectation for the future path of interest rates. If rates are expected to fall in the future it may be better to lock in longer-term rates today rather than roll over short-term deposits which may pay more today but could pay lower interest in the future. \\n\\nAlso, A year ago, Series I Savings Bonds with no fixed rate and a high inflation rate were popular investments. Since then, the inflation rate on these bonds has declined sharply while newer bonds are now paying a fixed rate in addition to the inflation rate. So over the long term, the bonds purchased when inflation rates were high will likely yield less than the bonds issued before and after the frenzy will likely offer higher returns.\\n\\nAnd, Medicare premiums are means-tested meaning higher-income individuals may pay higher Medicare premiums. This is called the Income Related Monthly Adjustment Amount (IRMAA) which is based on the income from two years prior to the current year. However, if an individual had a qualifying life-changing event that caused their income to change may petition the Social Security Admin to have their IRMAA amount reduced based on their change in income. \\n\\nPlus a look at the Planned Solutions Incorporated Office Bulletin Board- As a result of the storms that hit California earlier this year, most counties in California were designated federally declared disaster areas. As a result, most CA residents were granted an automatic extension to file and pay their 2022 tax returns and balances through October 16, 2023. However, many taxpayers who have elected to take advantage of this extension have received past-due notices from the IRS. The problem is that the IRS computer system was not updated to reflect the extension, so the IRA has automatically mailed notices of balances due including to individuals who were eligible for the automatic extension. However, the IRS has reassured California taxpayers covered by the disaster declaration that they continue to have an automatic extension until later this year to file and pay their taxes. So if you intend to pay your taxes owed in October but get an IRS notice to pay the balance due now you can disregard the notice and delay your payment to later in the year as long as it is paid by October 16th\\n\\nChase Armer's book- Financial Planning Insights is now available at:\\nhttps://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb\\n\\nTo subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail Katie@PlannedSolutions.com\\n\\nThe Personal Finance Review is published and distributed biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.\\n\\nPlanned Solutions, Inc."