Larry Kotlikoff’s Commentaries
Buy now. Houses, like most physical assets, retain their real value during high inflation and have done far better than most such assets. Plus, if you buy a primary residence now and home prices fall, you won’t be affected unless you need to sell. As long as you have a stable job, can manage your mortgage, and don’t need to move anytime soon, a short-term drop in housing prices isn’t a concern.
“Your World, Your Money sits down with bestselling author & Economics professor Laurence Kotlikoff to discuss his new release, “Money Magic,” an economist’s primer on personal finance for navigating career, retirement, loans, and more; challenging longstanding notions of economics and introducing base principles for pursuing financial security.”
Invading Ukraine has made him, his associates, and, indeed, his nation radioactive. Aeroflot can no longer land in any Western city. Western airlines are canceling flights to Russia. BP and Shell Oil are pulling out of Russia. AerCap, the world’s largest aircraft leasing firm is doing likewise. So are huge banks, including HSBC. Société Géneral, and Shinhan Bank. Even Disney has had enough. It’s pulling Batman from Russian theaters.
Social Security is once again sending out clearly false benefit statements. If the code generating the statements is generating actual benefit payments, millions of Americans may be receiving too little or too much in Social Security benefit payments. If you are receiving too much, you can expect to be billed for all past overpayments years later even though the mistaken overpayment was entirely Social Security’s fault.
After just nine months, you’re eligible to collect future widow(er) Social Security benefits. Plus, after one year of marriage, you and your spouse are eligible to collect future spousal benefits. And if you stay married for 10 years, you’re eligible for divorced spousal and divorced widow(er) benefits.
Almost two-thirds of people — between ages 57 and 66 — choose to retire early out their own volition, despite having saved next to nothing. And most of them are able-bodied, without disabilities that would prevent them from staying on the job.
18-year-olds face these odds when they borrow for college. Two in 5 will enter the hallowed halls of academia only to drop out. The majority will have borrowed for the privilege. As for college graduates, over two-thirds will leave in debt.