social security

One Big Beautiful Bill Act: The New Senior Deduction and Social Security Impacts

You’ve likely heard now that a few weeks ago Congress passed the One Big Beautiful Bill Act, which President Trump signed into law on July 4th.

It’s a huge bill, with sweeping tax implications for individuals, families and businesses. For the next several months I’m going to explain certain changes or new items that have come from this law. These articles will be geared toward Wyoming retirees, but we hope many readers will find them helpful.

This month we’ll start by explaining the new tax deduction available to certain seniors, and clear up some confusion about how this affects taxes paid on Social Security benefits.

Fact Check: Can Wyoming Retirees Live On Social Security and $100k?

A Wall Street Journal article caught our attention recently. The headline read “You Don’t Need to Be A Millionaire to Retire.” Hale Financial has enough non-millionaire retired clients that we know this to be true, but the article explained that of a group of retirees surveyed who had less than $100,000; over 70% of them said they were doing fine financially.

“Ok, what’s the catch?” There are some catches to living a retired life with less than $100,000, but after analyzing what we’ve learned working with many Wyoming retirees, we’ve found that it is possible, with certain limitations.

Starting Social Security at Age 62--Bad Idea?

Waiting to start Social Security has a key advantage: the longer you delay, the higher your Social Security paycheck will be over time. 

But there are cases when it could make sense not to delay, contrary to popular opinion. Let’s explore this topic, and a few scenarios where it makes sense to start Social Security as early as possible–or at least not waiting until your full retirement age.

Ways to Combat Inflation in Retirement

The financial shock of soaring inflation in 2022 caught everyone off guard. Within a matter of months, the price of rent, fuel, and countless consumer goods went through the roof. Having been in a period of relatively low, calm inflation for decades led us not to worry about this financial expense, until things went really wrong.

While inflation is now trending downward, inflation is historically always present, and there’s still a threat that unusually high inflation can rear its ugly head once again, especially given that most retirees expect to live another 20 to 30 years once they leave the workforce.

How the Social Security Earnings Test Works

For many families, the transition into retirement is more like a series of steps than a leap. Oftentimes, for example, Social Security is started even though an earner is still working. There are many reasons for this, including an interest in at least staying employed on a part-time basis, but needing Social Security to supplement their income.

In times like these, Social Security’s “earning test” may come into play.