General info

Ever since the inception of the Internet, home offices have been growing by leaps and bounds; by one estimate more than three million taxpayers can make that claim. While there are any number of benefits to having a home office, one irksome negative was the burden involved in substantiating the home office deduction and the Internal Revenue Service’s complicated and convoluted process to file that claim.

Well, it seems someone at the IRS has become enlightened and the long awaited simplifications to the various rules which govern home office deductibles have now been released. Like the cumbersome 1040’s simplified counterpart the 1040-EZ – this then could be considered the EZ option for home office deductions.

Under the terms of Rev. Proc 2013-13, which the IRS calls the “safe harbor” method and beginning with this tax year, i.e. as of January 1, 2013, taxpayers will be able to easily calculate their 2013 deduction for their home office; just multiply the square footage of the area of your home that you use strictly for business purposes by the prescribed rate ($5 per square foot) and Voila! You have your tax deduction.

Three Rules for Claiming the Safe Haven Home Office Deduction

According to the IRS Code 280A, home office usage is defined as:

1. A home office is considered the taxpayer’s primary place in which he or she conducts trade or business.
2. The home office may or not be attached to the taxpayer’s residence; it may be a separate structure on the property used exclusively as a home office.
3. A home office is where the taxpayer will meet clients, customers or patients during the normal course of business.

Of course, even under the simplified method it is the taxpayers’ responsibility to ensure that good records which prove the exclusive use of the home office continue to be maintained to substantiate the claim.

One simplification certain to be welcomed by taxpayers is the distinction between expenses, which heretofore had to be allocated between personal use and business use. Provided you itemize your deductions and have opted for the “safe harbor method,” and of course to the extent it is allowed by the IRS’ tax codes and regulations, expenses such as mortgage interest, casualty losses and/or real estate taxes, etc., can be listed as an itemized deduction on Form 1040’s Schedule A.

While the safe harbor method has its benefits, a taxpayer might have to accept sacrifices, too. Specifically, under the “safe harbor method,” depreciation of the space allocated to the qualified home office cannot be deducted. That might make the “safe harbor” option a lot less attractive for some taxpayers as in some instances depreciation is the single largest of all the home office related deductions in which case the regular or convention method might be the better choice.

Taxpayers can opt for the safe harbor method or the regular method on a year to year basis, however once the election is made for any given tax year it is irrevocable. A taxpayer may opt for the safe harbor method and switch back to the conventional method in a subsequent year however there are specific rules in the calculation of depreciation.

Safe Harbor Method Limitations

As can be expected, the IRS has placed a few limitations on the “safe harbor” method deduction:

• • Ÿ—The deduction is limited to $1,500 per year, meaning that your home office space should not exceed 300 square feet; the exception to this, however, is dependent upon how many qualified home offices are under the same roof.

• • The option chosen, whether the “safe harbor” method or the conventional (actual expenses) method must be consistently applied to all the Taxpayers’ qualified businesses.
• • Taxpayers who share a home, regardless of filing status, may each claim the safe harbor deduction provided they have separate and distinct home office areas.

• • Taxpayers who have more than one qualified home office, i.e. in more than one home, may use the safe harbor method for only one home office space.

• • A taxpayer cannot opt for the safe harbor method if he or she derives rental income from the same home as the qualified business use.

• • The safe harbor method is not applicable for those Taxpayers reimbursed by an employer for home office related expenses.

The “safe harbor method” is optional according to the IRS, and taxpayers might want to evaluate now whether they will opt for this method or the conventional one as they begin their tax planning preparations for 2013. While a tedious and mind-numbing exercise, in the end it may be financially beneficial to tally up all of those numerous invoices, expense reports and receipts and go with the conventional method. The criteria necessary to be deemed as a qualified home office must have already been satisfied with the IRS in order to opt for the “safe harbor” method.

Always consult with your tax professional as to specific tax advice for your particular situation.

Determining which online broker dealer is best is not an easy task because it depends on what services are most important to you.

Originally there was only full-service brokerages like Dean Witter, Merrill Lynch and Smith Barney. Their fees and commissions were high but that was the only way to trade stocks and bonds. Then came the development of the discount brokers like Charles Schwab who offered less services but at much reduced cost. More recently, online discount brokers have become very prevalent.

The lines are blurring between full-service brokerages and online discount brokers as the commissions and fees come down at full service brokerages and as additional services and tools are offered by the online discount brokers.

To determine which broker-dealer is best for you, focus on what’s most important for you: costs, tools, and availability of product, customer service or advice.

COMMISSIONS and FEES
Most people care about their investment costs but many do not really know all the costs. Commissions can be a little confusing because they can vary depending upon the number of trades, the number of shares, the size of account or if you do the trade your self online or have a brokers assist you. There is a whole array of other fees depending on numerous factors as well.

RESEARCH
Some investors rely on technical and fundamental analysis in determining when to buy and sell investments. Having cutting-edge research is a very important factor for these investors but will not be important at all for others.

TRADING TOOLS
Some brokers provide investors with breaking financial news via email on the clients stocks. Others allow for clients to check their balances over their smart phone or have access to trading via their Blackberry. Most have basic tools such as dividend reinvestment programs.

INVESTMENT PRODUCTS AND MUTUAL FUNDS
Having a selection of investment products that you are interested in is of crucial importance in picking the right broker dealer. Unfortunately some broker-dealers load up on funds that are laden with higher commissions or are their own proprietary funds. Most broker-dealers do have true no load funds available but you need to verify whether there’s a transaction fee involved if you purchase any those offerings.

CUSTOMER SERVICE
Some broker-dealers prefer to deal with their clients with e-mail and electronically while others rely more on toll-free phone lines customer service. Be sure to ask to see a sample statement prior to making decision as to which broker-dealer to use. You obviously want a report that is easy to understand.

LOCAL OFFICE
If you know you are the type that like to have someone nearby to help you when needed be sure to use a broker-dealer that has an office near you.

ADVICE
Many online broker dealers do not provide trading advice as to which stock or mutual fund to trade. If you want someone to help make investment decisions you could rely on the broker dealer (who is making a commission) or the services of a Registered Investment Advisor who will give you recommendations for a fee but does not receive a commission. The RIA approach has been highly recommended in the media.

For information about comparing different broker dealers try these websites
http://www.broker-reviews.us/
http://www.stocksandmutualfunds.com/broker-comparison-chart.html
http://www.smartmoney.com/investing/economy/smartmoneys-annual-broker-survey-23119/?page=all

For an RIA go to www.garrettplanningnetwork.com or www.napfa.org for a list of “fee only” advisors in your area who can recommend investments that do not pay commissions.

Michael Chamberlain CFP®
CA Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340

This article is for informational purposes and should not be taken as legal, tax or investment advice.

In over 25 years for helping people to preserve, protect and grow their assets, many publications have crossed my desk. All were designed to help those approaching or in retirement. Perhaps the best one ever is from the Ca Dept of Corporations and is free. “Protect Yourself from Fraud” is easy to read, well written covers a large variety of topics and should be a must read for everyone.

The Dept of Corporations is the States’ Investment Financing Authority. It protects consumers by regulating companies and individuals that offer investment advice, securities, and consumer loans amongst other things.

The Department is committed to making the public more aware of the types of fraud and schemes that are being committed against consumers but particularly seniors.

Common Investment scams are reviewed including seminars with ”Free Meals”. It is always amazing the number of people who do not know that there is “no free lunch” and those that are advertised as free always have a hook.

Several telephone scams are reviewed including those telling you that you must return a call to “area code 809” for what appears to be a legitimate reason, only to discover the toll charges to the Virgin Islands could be hundreds of dollars per minute.

Other common scams involve con artists posing as a Charity or home repair while others go so far as to use a distraction and actually commit a burglary.

With the recent events in the housing market, there are increased scams with predatory mortgage lending. There are also companies preying on those that are behind in their mortgage payments and trick the unsuspecting into ”jumping from the frying pan into the fire”.

The publication has a good section on how to check your credit, protecting your credit and what to do if your identity is stolen.

One of the best tips that I wish everybody would listen to is to “Investigate before you invest and not after”. It could be your bank, insurance salesman or a call over the phone that tells you about a product/ investment that sounds to good to be true. If you only had read the fine print or asked for a second opinion (from an expert who is not selling) before you write the check, you would be better off.

There are other sections on important topics such as reverse mortgages, annuity purchase, end of life paperwork, and things you can do when you have financial difficulties.

Elder abuse and financial elder abuse are increasing in frequency as there are more people living longer every year. Unfortunately financial abuse often goes on without the victim’s knowledge. The exploiter can often be a family member or trusted personal attendant. If you experience, witness or suspect elder abuse immediately contact Adult Protective Services.

Lastly is a wonderful “resource section” that lists the contact information for a number of agencies that are designed to help safeguard those that would be intended victims.

I encourage everyone to pick up the phone and call 866-275-2677 and ask that you be mailed the booklet entitled “Protect Yourself from Fraud”. Do not miss this very worthwhile free publication.

Michael Chamberlain CFP®
Ca Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340
This article is for informational purposes and should not be taken as legal, tax or investment advice.

As a financial planner, I work with clients of all ages and income levels. The basis of good financial planning is great communication between the clients and the planner. Clients are always encouraged to ask any question that pops into their mind. Recently, a young newlywed who is expecting her first baby was in the office and said: I have a very basic question: What is the difference between “saving” and “investing”?

That is a great question because many people think saving and investing are one in the same. In reality they represent two distinct ways of managing your money for the future. Not understanding the difference can be costly.

When you are “saving”, your intent or goal is to preserve the principle and not subject it to loss. Savings are also typically used to fund goals or needs in the immediate future (less than 5 years). Using a bank savings account, money market fund, US treasury bills, certain annuities or certificate of deposit are commonly used for saving. The downside to the “stability of principle” is that these savings options usually offer low returns when compared to other “investment” options.

Investing, on the other hand is when you place your money into vehicles that give you a greater potential for gain. But with the greater upside comes a potential for loss of principal as well. When you “invest” your intended use of the funds should be more than 5 years away. Having a long time frame is why most people invest in stocks, bonds or real estate, (or mutual funds investing in stocks, bonds or real estate) within their retirement accounts.

Different investment vehicles have different levels of risk. In general, bonds are thought to be less risky than stocks. It is important to keep in mind that some bonds are in fact more risky than some stocks. Having the correct mix of asset types is key to controlling risks, which is a whole other topic.

There are pitfalls when individuals “invest” for the short-term. This was very apparent to some with the recent downturn in the market. If you were intending to buy a new car with cash and you had it parked in a savings account, it would be there when you went to buy the car. If, on the other hand, you had invested the money in the stock market with the intent of buying the car in the summer of 2009, you would have lost part of the money for that new car and you instead might be buying a used car.

There are also pitfalls when individuals “save” for the long term. Saving vehicles rarely provide enough after tax return to exceed the inflation rate. Therefore, over time you will lose purchasing power and either need to start cutting back on your lifestyle needs or start spending principle.

In conclusion, savings is for the short term, where the return is low but there can be little possible loss of principle. Investing is a type of money management that seeks a higher return while knowing there is the potential for loss of principle. Investing is appropriate when the funds would not be needed for at least 5 years. Not understanding the difference is a common money management mistake.

Michael Chamberlain CFP®
CA Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340
This article is for informational purposes and should not be taken as legal, tax or investment advice.

Congress is reportedly attempting to improve the safeguards for the investing public. Sweeping financial services reform legislation was approved last week in the House of Representatives. But there were some evidently last minute changes inserted into the bill by lobbyists to benefit big Wall Street Broker Dealers such as Charles Schwab.

Registered Investment Advisors give investment advice and they have a fiduciary duty to always do what’s in the best interest of the client. Broker dealer representatives are not responsible to do what’s best for the client and operate at a lower standard of what is called “suitability”. They only have to do what is suitable for the client, not what is best.

Some financial advisors are registered as both investment advisors that operate under the fiduciary duty and also representatives of the broker dealer and operate under the lower suitability standards. These double licensed individuals change from the White hat of investment advisor to the Black hat of the salesman. It is impossible for clients to know which hat the advisor is wearing and whether they are getting advice or being sold a bill of goods.

It was the Security and Exchange Commission’s recommendation that all individuals who give financial advice should operate with the client’s best interest in mind at all times. The head of the committee that produced the bill, Barney Frank, agreed that investors should be projected by the fiduciary standard.

So how is it that the House of Representatives passes legislation, if enacted, would require the Securities and Exchange Commission to write rules that would establish a fiduciary duty for brokers to provide investment advice but the bill adds a qualifier to that requirement saying,” nothing in this section shall require a broker or dealer or registered representative to have a continuing duty of care or loyalty to the customer after providing the personalized investment advice about securities.”

Consider the example. You go to a financial adviser and pay a fee to analyze your investments. As a result of the analysis, it is recommended that you buy $10,000 of an emerging market fund, $15,000 of a small value fund and $25,000 of an intermediate bond fund. Ideally the advisor then would present the best, lowest cost funds of each type. However this legislation would allow the adviser at take off his “fiduciary duty hat” and put on his “suitability hat’. The salesman is then free to sell his company’s high priced funds in each of the general categories.

This provision that was inserted, with virtually no one knowing about it, would render the fiduciary duty of brokers useless and therefore the public would have no safeguards, as was the intent of the Securities and Exchange Commission recommendations.

This is yet another example of how money from Wall Street goes into the lobby industry’s pocket to influence legislation that is not in the best interest of the public but is in the best interest of Wall Street.

If you as an individual want objective unbiased investment advice that is always in your best interest, it is essential that you seek advice only from Registered Investment Advisors that are not representatives of a Broker Dealer.

The simple test is to call your advisor and ask if they are a “representative of a broker dealer”. If they say yes, you have the wrong advisor.

For list of fee-only advisors check the website for the National Association of Personal Financial Advisors (NAPFA) or Garrett Planning Network.

Michael Chamberlain CFP®
Ca Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340

This article is for informational purposes and should not be taken as legal, tax or investment advice.

At a recent meeting of retirees, a presentation of the “10 biggest retirement planning mistakes” was given. There were many questions and much discussion. Everyone left having a few pearls of wisdom to take home. When all others were gone, a retired teacher approached me and said “Mike, I learned a lot but having been a teacher for many years, you might want to consider dwelling on the positive not the negative.” In that spirit of accentuating the positive, here are some tips for a more successful retirement rather than mistakes to avoid.

Have Goals Tasks you wish to accomplish, places you want to go, and people you wish to help. The goals are a list of things you plan to do. There can be both short-term and long-term goals, large goals as well a small. The chances of reaching the goals are much greater when the goals are written, have a time frame attached to them, as well as the expected financial cost and where the funds will come from to accomplish the goal. For instance, I will complete Spanish 1 at the Community college by next June with a grade of B and the fees of $250 will come from the interest on my CD.

Make timely decisions (do not procrastinate). Some retirees are afraid of making the wrong decision so based on that fear do not make decisions at all. A common comment is “I’ll think about it”. If you have all the accurate information and understand the circumstances you have all the facts necessary to make a decision. Getting accurate information can be difficult particularly so in a sales situation. Do not be afraid to get a second opinion from someone who is not trying to sell you. Ask family members or trusted advisor such as your tax preparer, attorney or financial planner depending on the decision at hand.

Due not put all your eggs in one basket. Your investments should be diversified across different types of investments. Having all your assets in CDs may not yield enough return to meet your needs. Having all your investments in stock (or mutual funds invested in stock) is much too risky. The correct asset allocation for you and your situation should be based on: your risk tolerance (a mental state) your risk capacity (a financial state) and your goals including your timeframe. Determining the correct allocation sometimes is best accomplished with professional help.

Good debt – bad debt. Not all debt is created equal. Some interest such as a home mortgage is tax-deductible and would be much preferred than the interest on an auto loan. Credit card debt is the worst type due to its non-deductibility and very high interest rates. It should be avoided like the plague.

Mitigate your risks. In dealing with risk, your options are to avoid the risk, transfer the risk to an insurance company or retain the risk and pay the price should the dread event occur. These three options exist for all risks including; health, auto, home, disability and long-term care. Unfortunately some people have too much insurance while others do not have enough and most are paying more premium than they should for the insurance they have. Everyone is different and your risk mitigation program should reflect your unique situation.

Proper estate planning documents. All retirees should have proper estate planning documents that designate who should make health care decisions for you or control your finances should an incapacitation occur. It is so much easier to address this ahead of time than after an event such as stroke, Alzheimer’s disease or other incapacitating affliction. If you own real estate, a living trust may be a good way of making sure your assets go to whom you choose upon your passing. Always consult with an estate-planning attorney for these matters.

Ask for help if needed. Financial planning, insurance, investments, taxes, retirement planning are subjects that are complicated. The way most retirees learn about these subjects is through the “school of hard knocks”. It is the age of specialization. We go to the doctor for a checkup on our health, we take our car for tune-ups at the garage, the gardener tends our garden, and for financial advice there is a financial planner.

To help identify the areas where help may be needed complete a “Financial Satisfaction Survey”. It’s free and can be very reveling. Go to the website below and download the survey or call 800-347-1340 and it will be mailed to you. There is one survey for those who are retired and a different one for those not yet retired. http://www.chamberlainfp.com/pdf/fp_security_survey_retire.pdf

Michael Chamberlain CFP®
CA Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340

This article is for informational purposes and should not be taken as legal, tax or investment advice.

The recent economic changes impact everyone and particularly those who are retired. Whether it is a drop in value of your retirement account or a decrease in interest rates at the banks, everyone has noticed.

The question is – what can retirees do now to shore up their finances? Some things are fairly obvious, such as delaying a vacation, going to a less costly restaurant or putting off major purchases as long as you can.

But there are other things retirees can do to help in these difficult times:

1.    Know what and where you’re spending. Saving a dollar is easier than making one. Keep track of what you spend each month. This is an easy way to help you identify those areas you might be able to cut back without impacting the quality of your life. Use pencil and paper, a computer program such as Quicken® or Excel, or an online tool available at: http://www.mint.com.

2.    Shop your insurance program. There can be large differences in premiums from one company to the next and it is wise to re-shop your insurance package (home and car, etc.) with several companies every few years.  The savings are often in the hundreds of dollars.

3.    Comparison shop banking services. Many banks have raised fees and decreased interest rates.  As an example, Bank of America investment services money market account now pays a 0% interest. Customers would do well to go elsewhere. Don’t overlook your local credit union or banks outside the area. Searching online can help identify institutions with higher interest rates.

4.    Beware of something that sounds “too good to be true.” Be cautious about an invitation for a “free lunch” to learn about an “investment that can never go down,” “Earn extra money from your home,” “Long Term Care without paying for it,” etc. Remember there is often fine print or a hook and they are always selling something. If you don’t understand it, avoid it or at least seek a professional second opinion (from someone who’s not selling the product).

5.    Do not be the victim of scare tactics. Do not let salespeople take advantage of you in reaction to the recent economic havoc. An 83-year-old client was recently sold an annuity at her bank and she cannot get all her money back until she’s 93, which is totally inappropriate.

6.    Do not take retirement plan distributions if you do not need them. A new law allows retirees to not take a minimum distribution from certain retirement plans. The concept is to allow the values of the account to come back up and then resume distributions.

7.    Understand your investments costs. In this environment, it’s crucial that you have a firm understanding of all the fees (commissions, sales loads, deferred charges, redemption fees, surrender fees, account fees, management fees, distribution fees, and even statement fees).  Depending upon the size of your portfolio, going to investments with lesser costs could save you thousands of dollars a year.

8.    Proper asset allocation in your portfolio. Having the proper mix of different types of investments is the prime way to mitigate risk. The allocation that is appropriate for you is dependent upon your risk tolerance (a mental state), your risk capacity (your financial state) and your goals, which includes your timeframe. The people that felt the most pain with the recent drop in the market had an incorrect asset allocation.  Now is a good time to make sure your asset allocation is correct.

9.    Determine if you need help. It’s what you don’t know that can hurt you the most.

To help identify the areas where you could use some professional assistance, a Financial Security Survey was developed. It’s free and can be very reveling.  Go to the website below and download the survey or call 800-347-1340 and it will be mailed to you.

http://www.chamberlainfp.com/pdf/fp_security_survey_retire.pdf

10.  If you need help, get objective advice. Money magazine, Kiplinger Personal Finance, CNN Money, MorningStar, MSNBC, Newsweek, and AARP all have had articles recommending people get objective advice from a “fee-only” advisor.  These individuals do not sell product, so there is no conflict of interest between what is best for you and the person who is selling a product.  The publications above recommend readers go to http://www.napfa.org and http://www.garrettplanningnetwork.com for a list of “fee-only” planners in your area.

While these 10 tips will not undo the effects of the changes in the economy, they offer some practical steps you can take to strengthen your finances today and position your retirement savings for improvement as the economy comes around.

Michael Chamberlain CFP®
CA Registered Investment Advisor

Send your questions to mike@chamberlainfp.com or call 800-347-1340
This article is for informational purposes and should not be taken as legal, tax or investment advice.

Newspapers have reported increasing house sales during several of the last few months. Real estate industry has taken this as a sign that we are at the bottom of the housing market and that things are improving.

Some experts feel this is more of a mirage than the real bottom. Real estate prices are dependent upon supply and demand. There are several indicators to point that the supply is, and will continue to be, far greater than the demand in the near term.

The first-time buyer tax credit of $8000 (which reportedly increased the sale of lower-priced homes) is set to expire at the end of November. Without a continuation of this program, it’s likely that home sales will drop in the lower-priced section.

At the beginning of the financial crisis there were $1.5 trillion of subprime loans that were outstanding. As the defaults in this subprime market have subsided, we are now seeing increased defaults in more traditional loans due to job loss and instability of the economy. The same is true of jumbo loans and those homes with home equity lines of credit.

Currently approximately one in four homeowners with mortgages are “underwater.” This means that their home is worth less than what they owe on it. Most people don’t like to think of defaulting and walking away from one’s home but unfortunately many people will feel the need to do this in the next year, which adds more homes available for sale, increases the supply, and serves to depress home prices.

There is reportedly a glut of “shadow inventory” that are not being represented in the published statistics. In other words there are a number of banks that have mortgage holders that are behind in their payment but are not being foreclosed on and taking the property back because the banks don’t want to flood the market with these properties at one time and force housing prices even lower.

At the end of July, there were about 4 million existing homes that were for sale. There are another million and a half homes somewhere in the foreclosure process and will comeback to the market soon. However another million have payments that are at least 90 days in default, yet foreclosure has not begun.

Housing prices escalated so fast in such a short period of time with questionably qualified buyers getting into the market as well as others borrowing money to buy investment properties. These combined to flood the market with “demand”. With the current lending requirements, the instability in the economy, and job loss, the demand will not be adequate in light of the supply of homes for sale. It is not reasonable to expect house recovery to be anytime soon.

Social Security beneficiaries usually see their monthly benefits increase once a year, based on the cost of living escalators. These have usually been in the range of 1-4% per year. That could change in the next 3 years.

With the current state of the economy, the Congressional Budget Office projects an actual decline in consumer price indexes and expects no inflation for the next few years. The office has stated that there may not be any cost-of-living increase in Social Security benefits until possibly 2013.

The vast majority of Social Security beneficiaries have their premium for Medicare Part B and to a lesser extent, Part D, deducted from their monthly Social Security benefits. These premiums are projected to continue to go up.

The net result is that it is quite possible that Social Security checks will actually be smaller starting in 2010 as compared to 2009. This projected decrease will impact about one quarter of the retirees, including those recently signed up for Medicare as well as higher income beneficiaries.

The other three quarters of the Social Security beneficiaries are protected by a “hold harmless provision”, which prevents Medicare Part B premiums from increasing in any year by more than that specific years cost-of-living increase. If there is no bump in Social Security benefits, the Medicare Part B premiums will stay the same. There is no such protection with Part D premiums.

Currently Medicare Part B premiums are $96.40 a month. The Congressional Budget Office predicts the premiums to be $119 in 2010, $123 in 2011, and $1028 in 2012. There is no premium for Medicare Part A.

None of the insurance carriers that provide Medicare Part D prescription drug coverage have indicated premium increases in 2010. However if it’s anything like past years are an indication we can continue to expect higher Part D premiums.

If you currently have in Medicare Part D plan it is critical that you reevaluate which Part D program is best for you between November 15th and December 31^st each year. Premiums for the various plans change as well as deductibles and co-pays. Your prescription medicines might be different this year versus last year and the various different programs change the cost-effective drugs.

The long and the short of it is that if you are on Social Security, between deflation, Medicare Part B and D premiums, don’t be looking for your Social Security check going up in the next year or two.