3 Worst Ways To Use the Extra Funds

Millions of Americans recently received a boost to their Social Security benefits thanks to the Social Security Fairness Act signed into law by President Joe Biden. Beneficiaries who were affected by the Windfall Elimination Provision and Government Pension Offset saw an increase in their monthly benefit amounts as well as a one-time retroactive payment dating back to January 2024, as reported by Fox Business.

While the extra funds offer a welcome financial boost, it’s crucial to have a smart plan in place for how to use them. Without careful consideration, it’s easy to make mistakes that could negatively impact your long-term financial security. Experts warn against some of the worst ways to utilize your additional Social Security funds.

One common pitfall to avoid is using the extra money for unsecured high-interest debt consolidation without a clear repayment plan. While it may seem like a quick fix, it can violate fiduciary duty under SSA guidelines, especially for representative payees managing benefits for others. Additionally, speculative investments like cryptocurrency or high-risk stocks should be approached with caution, as they can jeopardize the financial stability of retirees.

It’s important to note that a representative payee must prioritize using the funds to meet the beneficiary’s basic needs first. Using benefits for debt consolidation without ensuring essentials are covered can violate rules and fiduciary duties set by the Social Security Administration.

Furthermore, when it comes to tax implications, it’s essential to be mindful of how additional Social Security income could potentially push you into a higher tax bracket or trigger more of your benefits to be taxed. Developing a thoughtful tax strategy is crucial to maximizing the benefits of your Social Security income.

Ultimately, it’s best to treat your Social Security benefits as a guaranteed source of income meant for ‘reasonable and necessary’ expenses such as housing, healthcare, and food. Consulting with a fiduciary financial advisor well-versed in elder law and benefit usage can provide valuable guidance on how to make the most of your Social Security funds while ensuring long-term financial security. The world is constantly changing, and with it, so are the ways in which we communicate with one another. In today’s digital age, communication has never been easier or more convenient. From text messages to video calls, there are countless ways to stay connected with friends, family, and colleagues no matter where they are in the world.

One of the most popular forms of communication in the modern era is social media. Platforms like Facebook, Instagram, Twitter, and Snapchat have revolutionized the way we interact with one another, allowing us to share photos, videos, and updates in real-time. Social media has also become a powerful tool for businesses, allowing them to reach a wider audience and engage with customers in new and innovative ways.

Another popular form of communication in the digital age is email. While it may seem outdated compared to social media, email is still a crucial tool for staying in touch with colleagues, clients, and friends. With email, you can send messages instantly, attach files, and even schedule meetings and appointments.

Video calls have also become increasingly popular in recent years, particularly in light of the COVID-19 pandemic. Platforms like Zoom, Skype, and Google Meet have made it easy for people to connect face-to-face, even when they are miles apart. Video calls have become an essential tool for remote work, allowing colleagues to collaborate and communicate effectively without being in the same physical location.

Of course, traditional forms of communication are still widely used in today’s world. Phone calls, for example, remain a popular way to stay in touch with loved ones, especially for those who prefer a more personal touch. Letters and postcards are also still exchanged, particularly for special occasions like birthdays and holidays.

Overall, the ways in which we communicate with one another are constantly evolving. From social media to email to video calls, there are more options than ever for staying connected with the people who matter most. As technology continues to advance, it’s likely that new forms of communication will emerge, making it easier than ever to connect with others in meaningful and impactful ways.