Meet Brandon Copeland: NFL Linebacker, New Kiplinger Contributor
David Muhlbaum: What’s a linebacker got to teach you about personal finance? You’re going to find out over the next year as Kiplinger joins forces with Brandon Copeland: an NFL veteran and graduate of the Wharton School at the University of Pennsylvania. Our collaboration with Cope kicks off with his appearance on this episode, in which we’ll also talk about a number that’s really, really important to Social Security. All coming up on Your Money’s Worth stick around.
- Episode Length: 00:40:19
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David Muhlbaum: Welcome to Your Money’s Worth. I’m Kiplinger.com senior editor David Muhlbaum, joined as always by senior editor, Sandy Block. Sandy, how are you?
Sandy Block: I’m doing good David.
David Muhlbaum: Great. This week I had a little flashback to a job that we both had. So here’s a bit of biographical background for you all. Some time ago, perhaps maybe a long time ago, Sandy and I each worked for Dow Jones> Not at the same time, but we held down the same role. And a big part of that was writing, very quickly, these short stories, that went out on what was then called the ticker.
Sandy Block: That was pre-internet. Yes.
David Muhlbaum: Pre-internet. These were about economic numbers, stock registrations and the like. I mean, I’d barely call it writing, but these numbers matter to investors and others. And so the reason I had a flashback is because this week again, I was dealing with a number. The number this week was the 2021 cost-of-living adjustment. And this number matters a lot to anyone receiving Social Security or similar government benefits, because it lets you know how much more — or if you’ll be getting more — next year. So I banged out a story quickly on that and mashed down on "send." It felt like the old days. The number is 1.3%. 1.3%
Sandy Block: That’s right. You never wanted to get that number wrong or you could be responsible for a stock market crash. So it was very important. And this number, 1.3%, isn’t much, particularly if you’re a senior living on Social Security? Because that’s about how much of a raise you’re going to get and the average increase in Social Security checks next year works out to about $20 a month. And that’s not enough to keep up with what a lot of people are paying for their healthcare. But it could have been worse as in zero, no pay raise. Because earlier this year when the pandemic hit, prices went a bit crazy. Ryan and I talked about how oil prices even briefly went negative, which was a really weird thing.
David Muhlbaum: Right.
Sandy Block: And in April consumer prices fell almost 1%.
David Muhlbaum: We had deflation for a moment there.
Sandy Block: Right. And there have been periods in recent years where the COLA has been flat. So I guess, seniors aren’t celebrating this 1.3% increase. But I guess, as you said, it could have been worse.
David Muhlbaum: There was no increase in 2016 and none in 2011, 2010-- Great Recession times. But what are the ways it could be worse? We can have deflation, but you can’t have a negative COLA. The COLA will be zero.
Sandy Block: Right. Your benefits won’t go down. But the other thing that’s important about this, this isn’t just an issue to people who get Social Security. It’s one of the values that private companies look to when they’re considering giving out raises because the cost-of-living is supposedly a measure of how much you’re paying. So if you’re figuring out raises that are supposed to keep up with inflation, that’s what the raise is going to be if you get one at all.
David Muhlbaum: Am I getting a raise?
: You’re a journalist, David. So
