Episode 65: How Facebook and the Aging Population Might Impact Your Retirement Plan

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Devin and John talk about a couple of different news topics, and how they may impact your Big Picture Retirement plan. But before we get started, you should know: the questions@bigpictureretirement.net email address hasn’t been working for a couple of weeks. If you sent a question, and didn’t get a response, that’s why. It should be fixed soon.

And on to the show…

John and Devin discuss a new article, reporting that the Census Bureau has announced that by 2030, senior citizens (65 and older) will outnumber people aged 18 and under. What will this mean for health care costs? Well, for starters, it means that you should probably assume that you will never see an increase in the net amount of Social Security benefits that you’ll receive, because Medicare costs will continue to increase faster than Social Security benefits increase. When you’re laying out your income streams, then you should figure that the Social Security cost of living increases will be taken by increased Medicare premiums.

Another thing to consider from this statistic is the security of pension plans, and how that could be affected by the smaller number of workers supporting the pension.  Those folks who still have pensions need to look carefully at their options and solvency of their pension plans, and understand that there is a risk in having your income dependent on the success of the pension plan.

The last piece of news to consider this week comes from the 5th Circuit Court of Appeals. They were presented the issue by the Department of Labor fiduciary rule, which says that investment advisors who deal with retirement accounts must act in the best interest of the customer, regardless of your own interest. The argument made before the court is that the rule should have a direct relationship to the intended purpose. In this case, the purpose of the rule is to protect consumers, but the fiduciary rule doesn’t accomplish that goal because it creates additional layers of compliance and costs that make it harder for consumers. The court agreed with that argument. The next step will be the Supreme Court. If the Supreme Court refuses to hear this case, or upholds the finding of the 5th Circuit Court of Appeals, then this version of the fiduciary rule will be basically completely dead.

About the Facebook data breach – first, it’s not a data breach. The app, developed by Cambridge Analytica, was set up to send out surveys, and disclosed that the survey information will be used for research. That’s totally legitimate, and it is stated in the app’s terms.  What actually happened was the Trump administration hired Cambridge Analytica to provide very specific information about specific individuals, so they could be targeted with specific information.

Lots of interesting stuff in the news every day!

Highlights:

  • What in the heck is a Finsta?
  • Which pensions are covered by the Pension Benefit Guarantee Corporation
  • How much nursing home car is currently costing Medicare

Resources mentioned in this episode:

Devin’s Social Security Intelligence website

Be sure to download Devin and John’s free ebook:  www.bigpictureretirement.net/steps

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The email address should be working again!  Send your questions to questions@bigpictureretirement.net.  They can’t answer every email or question, but they sure do try!