Social Security Increases Benefits by 5.9% for 2022

More than 64 million Americans will see the increase in their payments beginning in January.

The Social Security Administration has announced a cost-of-living adjustment (COLA) to recipients’ monthly Social Security and Supplemental Security Income (SSI) benefits. More than 64 million Americans will see the 5.9% increase in their payments beginning in January of 2022.

The increase – significantly higher than last year’s 1.3% adjustment – is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers and was put in place to ensure the purchasing power of these benefits isn’t eroded by inflation.

According to the Social Security Administration, on average, retired workers currently collect $1,565 per month in Social Security payments, or roughly $18,780 per year. The 5.9% COLA will add about $92 per month to those payments, or $1,104 for the year.

Keep in mind, all federal benefits must be direct deposited. So if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution. Contact your financial advisor for more information.

Source: Social Security Administration

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– Evan Shear, CFP® and W. Dale Crossley, Jr., JD, CWS®, CrossleyShear Wealth Management

When you're investing in the stock market, a variety of factors affect where and how you choose to invest your money. Current and projected interest rates are at the top of that list. With continued headlines about rising inflation, many investors have concerns about the potential for rising interest rates in the future. When interest rates increase, they can have a significant impact on the stock market, the economy, and your own investments.

How Rising Interest Rates Affect the Stock Market

When interest rates increase, it can be tempting to make changes to your investments based on your emotions. While it's true that the stock market is often negatively affected by interest rates in the short term, there is still potential for long-term growth in your investments. Before making a decision, we always advise our clients to take a step back and consider how our proprietary investment process, Voyage, considers factors such as interest rate fluctuations in your long-term financial plan.

When interest rates and the 10-year Treasury yield increase, stock prices can shift downward, prompting many investors to sell before prices tank. Stocks that were popular for short-term investments tend to suffer, and popular investments from the prior period may take a hit. However, the interest rate isn't the only factor that affects stock prices. Investors also consider the long-term interest fluctuations, employment numbers, corporate earnings, and larger fiscal policies such as taxes and the federal budget.

How Higher Interest Affects Economic Growth

The Federal Reserve and Treasury Department work together to create a stable economic environment, particularly in times of economic difficulty. In the long term, the stock market has proven resilient, even in the face of extreme economic downturns like the "Great Recession" of 2008 or the more recent COVID-19 pandemic.

Part of that resilience comes from the Federal Reserve's control over interest rates and other market operations. When the Federal Reserve increases interest rates, it helps to slow economic growth and prevent excessive inflation. In this way, higher interest rates help stabilize the economy and keep prices for goods and services within an affordable range for consumers.

On the other hand, rising interest rates can reduce consumer spending by increasing borrowing costs for both consumers and businesses. Higher borrowing costs can result in less consumer spending, which in turn reduces corporate earnings. For that reason, stock prices tend to fall when interest rates increase.

Therefore, for the Fed, the key is to raise interest rates enough to curb inflation while keeping them low enough to avoid harming consumer spending and business growth. This allows businesses to continue reporting consistent earnings, which encourages stock prices to rise.

What Rising Interest Rates Mean for Your Stock Portfolio

When interest rates increase, stock investors start to look at long-term investments such as bonds and certificates of deposit, where rising interest rates will create a higher yield on investment. Volatility in the stock market tends to send investors in the direction of safer, fixed-income options.

It is important to note that not all stocks will perform poorly when interest rates rise. Utilities, healthcare, and household goods are all defensive investments that can yield returns even during an economic downturn. Investors will often turn to these investments and pull out of more risky sectors until interest rates stabilize again.

Finally, rising interest rates can present you with buying opportunities when demand for equities falls. Falling demand can reduce stock prices for equities, and since the housing market rebounds strongly after downturns, equity investment can be a lucrative option.

Plan for Your Future with CrossleyShear Wealth Management 

In short, while rising interest rates do affect your stock investments, there are a number of ways to turn these shifts to your advantage. Our team, together with our proprietary investment process, Voyage, thoughtfully manages your short- and long-term investments, particularly in times of volatility. Contact us to learn more or schedule a checkpoint meeting. Schedule an appointment today.

Any opinions are those of Evan Shear and Dale Crossley and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred toin this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected including asset allocation and diversification. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification.

Any opinions are those of the author and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. Prepared by Muse Marketing + Creative for use by Financial Advisors.

*Trust services offered through Raymond James Trust, N.A., a subsidiary of Raymond James Financial, Inc. CrossleyShear Wealth Management and CSsports are not registered broker dealers and are independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. CrossleyShear Wealth Management is not a registered broker/dealer and is independent of Raymond James Financial Services.

HEATHROW/MERRITT ISLAND, FLORIDA, September 29, 2021 – CrossleyShear Wealth Management (CrossleyShear), a team of premier financial planning and wealth management advisors, announced today that the practice and co-founders Evan Shear and Dale Crossley have been featured in Aspioneer Magazine’s Leading Asset and Wealth Management Companies edition. Aspioneer Magazine is a publication that covers a broad range of topics in a vast number of sectors, including the economy, environment and business. The magazine frequently showcases industry leaders who have demonstrated exceptional success growing their business through unwavering knowledge and expertise and a commitment to customer-centric culture. Crossley and Shear were interviewed as part of a feature story that appears in their September edition.

“We’re proud of the entire CrossleyShear Wealth Management team for this acknowledgement,” stated Evan Shear, Co-Founder and Branch Manager of CrossleyShear Wealth Management, and CERTIFIED FINANCIAL PLANNER™ professional. “Our team is passionately focused on providing the very best in financial planning expertise, coupled with the utmost in client-centric care. The feature article simply validates the hard work and commitment our team delivers on a daily basis to our clients.” W. Dale Crossley, Jr., JD, CWS®, Co-Founder of CrossleyShear Wealth Management, Branch Manager and Financial Planner – RJFS adds, “At the very core of our mission is helping our clients through the ups and downs in life with a sense of confidence. Each and every one of our team members contributes to that vital effort. We understand the important role we play in our client’s lives and helping them achieve their financial goals. It’s a role we embrace each and every day.”

To view the article and feature story, visit https://aspioneer.com/crossleyshear-wealth-management-helping-clients-achieve-their-financial-goals-no-matter-where-life-takes-them/. You can also learn more about CrossleyShear Wealth Management and the team’s financial planning and wealth management solutions by visiting CrossleyShear.com. For more information about CSsports and the team’s professional athlete services, visit CSsports.net.

About CrossleyShear Wealth Management | Since 1998, CrossleyShear Wealth Management has served as a premier financial planning team dedicated to helping provide clients and families with innovative financial solutions and wealth management strategies. With offices in Heathrow and Merritt Island, Florida, their tailored customer care philosophy and customized planning process helps empower its clients to achieve their financial goals and financial independence. The company’s CSsports division exclusively serves the unique needs of professional athletes – before, during and after their sports career – providing customized solutions ranging from everyday spending advice and retirement planning to managing investments, insurance and business planning. For more information about CrossleyShear Wealth Management and CSsports, visit CrossleyShear.com.

1515 International Parkway, Suite 2019, Heathrow, FL 32746 | 407.215.7575

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*Trust services offered through Raymond James Trust, N.A., a subsidiary of Raymond James Financial, Inc. CrossleyShear Wealth Management and CSsports are not registered broker dealers and are independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

From the Desk of Dale Crossley and Evan Shear

We hope that you and your loved ones are staying well. For this edition of The Journey, you’ll find some timely articles on Medicare open enrollment and 529 Plans. We’ve also given our “From the Desk of Dale and Evan” a new title – “Déjà vu All Over Again.” In our last quarterly edition, we were essentially dealing with many of the same issues as we are now. Although the markets continue to do very well – and for that, we’re grateful – on the horizon, we have ongoing concerns about inflation and the potential for rising interest rates. The surge of cases due to the delta variant, not a concern last quarter, is the one new caveat. The surge may be starting to have a slowing effect on the economic recovery.

We’re continuing to see the greatest surge in U.S. inflation in 13 years, with most thought leaders affirming that it’s transitory and as supply chains are improving, inflation will settle down. While some sectors are meeting the demand for goods, others are experiencing shortages of labor and materials. At this point, we’re not sure how much of this might be caused by the delta variant surge and whether it has the potential to further affect the supply chain and, ultimately, the economy overall. 

With headlines continuing about the rise in inflation, concerns about the possibility of rising interest rates go hand-in-hand. There’s a delicate balance between keeping interest rates low, the Fed’s most powerful tool in helping the economy recover from the pandemic, and the need to keep inflation in check. However, the weak job reports from August, with lower than expected job creation, creates more complexity. The slowing may be due to several factors, including the summer season, but may also indicate that the delta variant is beginning to affect the economy. Nevertheless, in light of the slowing in the job market, experts believe the Feds will keep interest rates low and tolerate some inflation. For more detail, you can watch Raymond James’ Scott Brown, Chief Economist, brief but informative video here. 

We’re certainly hoping that the next quarterly issue will be “Déjà vu All Over Again” where market performance is concerned. As always, if you have questions or concerns, please reach out – that’s why we’re here.

We hope that you and your family continue to remain well. 

Take care,

Evan Shear                                                                                    W. Dale Crossley, Jr., JD, CWS®
CERTIFIED FINANCIAL PLANNER^TM                                  Financial Planner

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. All opinions are as of this date and are subject to change without notice. Past performance is not a guarantee of future results.

The Outlook for Vaccines, Variants and Elusive Herd Immunity

How do COVID-19 vaccines perform against the delta variant? When is FDA approval expected? And is herd immunity really achievable?

Raymond James Biotechnology Analyst Steve Seedhouse, Ph.D., addresses these questions and more in the latest episode of For What It’s Worth. Hear him discuss the latest data around vaccine effectiveness, the transition from pandemic to possible endemic and how COVID-prompted innovation may open the door for the prevention of other illnesses.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.