Money Sense

[DKG]

As Social Security benefits increased last year, some of the beneficiaries could end up with a higher tax bill for the 2024 tax season.

In 2023, Social Security benefits were raised by 8.7 percent to compensate for the increase in cost of living, with the average retired worker receiving $1,827 a month instead of $1,681, which they got in 2022. Senior citizens who have never paid taxes on their Social Security benefits may now be required to pay taxes as the higher Social Security benefits push them into the taxable category.

Beneficiaries need to pay taxes on their Social Security income if the combined income—the sum total of 50 percent of Social Security benefits plus all other income, including tax-exempt interest—exceeds certain thresholds. The rules for taxation are as follows:

Individual taxpayer: If combined income is between $25,000–34,000, then up to 50 percent of the Social Security benefits may be taxable. However, if the income is greater than $34,000, up to 85 percent could be taxed.

Married couples filing jointly: Up to 50 percent of Social Security income will be taxable if the combined income is between $32,000–44,000. This jumps to 85 percent if it exceeds $44,000.

For instance, an individual collecting $2,000 in monthly Social Security income will receive $24,000 in annual benefits, out of which 50 percent or $12,000 will be used for calculating combined income.

In case the individual makes $10,000 in extra income annually, the combined income will be $12,000 + $10,000 = $22,000. Since this is less than $25,000, no part of Social Security benefits would be taxed.

If the extra annual income comes to $20,000, then the combined income would be $12,000 + $20,000 = $32,000, bringing it in the range of $25,000–34,000. As such, up to 50 percent of the Social Security income could be subject to taxes.

If the person makes $30,000 in extra annual income, the combined income would be $42,000, meaning up to 85 percent of Social Security benefits may be taxed.

[DKG]

The signs of economic decline are plentiful, but the central bank's governors somehow keep overlooking them.

Federal Reserve Chairman Jerome Powell, however, has been consistent in his message for months now: no change. Not now, and not soon.

The Fed argues that economic conditions are too good to merit a cut in interest rates and an end to its sales of securities, which tighten the money supply. The main thing we should be worried about is a resurgence of inflation, the Fed insists.

The recent market rise has been entirely due to anticipation of rate cuts. This was disappointing news.

[JOE]

Do you think the economy will continue to deteriorate, DKG?

[Lokmar]

As long as silver continues to decline so I can keep buying, I'm good!

[Brent]

I got a great pension, and my RRSP's have have done well over the last thirty years. If you got a lot of unnecessary debt, you are in trouble. It does not matter how the economy does if you are living beyond your ability to pay.

[Thiel]

Do you think the economy will continue to deteriorate, DKG?

Don't worry Honey. I will look after you no matter what happens.

[TheProwler]

The signs of economic decline are plentiful, but the central bank's governors somehow keep overlooking them.

Federal Reserve Chairman Jerome Powell, however, has been consistent in his message for months now: no change. Not now, and not soon.

The Fed argues that economic conditions are too good to merit a cut in interest rates and an end to its sales of securities, which tighten the money supply. The main thing we should be worried about is a resurgence of inflation, the Fed insists.

The recent market rise has been entirely due to anticipation of rate cuts. This was disappointing news.

The US markets are high.

The TSX in Canada is not high.

IMO, of course.

[Herman]

The US markets are high.

The TSX in Canada is not high.

IMO, of course.

But, the TSX aint doing too bad lately.

[TheProwler]

But, the TSX aint doing too bad lately.

Oh, it is doing well.  But it should be.  Companies are doing well.

When I said it is not high, I really meant it is not higher than it should be.

I tend to look at the fundamentals more than the price....so if I see a low PE ratio, I will comment on that more than the current price versus the historic price.

[DKG]

I tend to look at the fundamentals more than the price....so if I see a low PE ratio, I will comment on that more than the current price versus the historic price.

That is the way you know if a stock is under or overvalued and it's growth potential too.

[JOE]

As long as silver continues to decline so I can keep buying, I'm good!

Well Lokmar, Gold went up $40 per ounce the other day.

I sometimes think I paid too much for some of the gold I bought. But every time I do, not long afterwards, it keeps goin' up! So...the gold I bought a month ago, is actually worth more than I paid for it, eh? Those $4200 gold coin sets I bought? Well the gold content alone is worth more than their collector value including those fancy cases/boxes they come in. and those boxes are probably worth $50 each.

Actually, It's like gettin a raise for doin' nothin'.

Same time, Silver DID go up the other day. Not as much as gold. But 40 cents per ounce?

Yeah...I'll keep an eye out on silver in the near future. Buy a few ounces here, a few ounces there.

Silver might be good...but I'm keepin' my eye out for other metals too...like Platinum & Palladium.

Haven't paid too much ta copper. Have ya tracked its price? I wonder if other earth metals are a good place to put yer money too.

If they don't go up in the imminent future, they certainly will within the next decade. Probably no later than 2030, eh?

cuz this robotics/AI revolution is gonna require a lotta energy and minerals ta power it, eh? It's not gonna materilize outta thin air, eh?

If ya know what I'm thinkin'....anything related to AI, alternate energy or robotics and the elements/minerals they'll need to power it will surely go up in price. And that probably means copper as well as gold 'n silver. I bet there'll be a lotta new industrial type buildings goin' up to house the new AI infrastructure which contains the robots and computers, etc.

[Lokmar]

Well Lokmar, Gold went up $40 per ounce the other day.

I sometimes think I paid too much for some of the gold I bought. But every time I do, not long afterwards, it keeps goin' up! So...the gold I bought a month ago, is actually worth more than I paid for it, eh? Those $4200 gold coin sets I bought? Well the gold content alone is worth more than their collector value including those fancy cases/boxes they come in. and those boxes are probably worth $50 each.

Actually, It's like gettin a raise for doin' nothin'.

Same time, Silver DID go up the other day. Not as much as gold. But 40 cents per ounce?

Yeah...I'll keep an eye out on silver in the near future. Buy a few ounces here, a few ounces there.

Silver might be good...but I'm keepin' my eye out for other metals too...like Platinum & Palladium.

Haven't paid too much ta copper. Have ya tracked its price? I wonder if other earth metals are a good place to put yer money too.

If they don't go up in the imminent future, they certainly will within the next decade. Probably no later than 2030, eh?

cuz this robotics/AI revolution is gonna require a lotta energy and minerals ta power it, eh? It's not gonna materilize outta thin air, eh?

If ya know what I'm thinkin'....anything related to AI, alternate energy or robotics and the elements/minerals they'll need to power it will surely go up in price. And that probably means copper as well as gold 'n silver. I bet there'll be a lotta new industrial type buildings goin' up to house the new AI infrastructure which contains the robots and computers, etc.

Copper is a waste unless you are investing in copper futures or mining stocks which will go up A LOT!

A $1 swing in silver is the same as $88 in gold, josephine. In the last few weeks, silver has swung from low $22 to mid $23.

[JOE]

Copper is a waste unless you are investing in copper futures or mining stocks which will go up A LOT!

A $1 swing in silver is the same as $88 in gold, josephine. In the last few weeks, silver has swung from low $22 to mid $23.

I think silver might be useful in Hard Times (which I believe is coming) because most people probably won't be able to afford gold. But they'll likely be able to afford silver. As you say, what will be tradeable for food? Silver probably.

Gold will be tradeable for large amounts of money & big ticket items/land, but I think it'll be the banks, governments and large financial institutions that'll buy it up (or possbily expropriate it in some countries). But once they do, they won't return it. They'll keep it for themselves. Just like what the Elites/Wealthy on every continent/empire have done throughout history for thousands of years.

But I think silver might end up being traded in the emerging underground economy.

[caskur]

Money, rule number 1....

Never not pay bills on time..... NEVER GET YOURSELF in a position where you are fined for not paying bills on time.

[caskur]

I think silver might be useful in Hard Times (which I believe is coming) because most people probably won't be able to afford gold. But they'll likely be able to afford silver. As you say, what will be tradeable for food? Silver probably.

Gold will be tradeable for large amounts of money & big ticket items/land, but I think it'll be the banks, governments and large financial institutions that'll buy it up (or possbily expropriate it in some countries). But once they do, they won't return it. They'll keep it for themselves. Just like what the Elites/Wealthy on every continent/empire have done throughout history for thousands of years.

But I think silver might end up being traded in the emerging underground economy.

The most valuable commodity  of all is clean drinkable water. It is more valuable than gold or silver can ever be.

And fresh food. You cannot eat gold or silver.