Essential Financial-Planning Numbers for 2017
The skinny on retirement-plan contributions, Social Security, and more.
In the wake of the election, some market participants have gotten concerned about inflation, owing to President-elect Donald Trump's stated plans for infrastructure spending, tax cuts, and curbs on imports. Indeed, the "break-even rate" between Treasury Inflation-Protected Securities and nominal Treasury bonds--which is considered a measure of investors' inflation expectations--jumped from 1.71% before the election to 1.91% more recently.
But various measures that are keyed off of inflation rates, including Social Security income and company retirement-plan contributions, are seeing low or nonexistent increases for 2017. That's because actual, rather than projected, inflation determines whether there are increases in any of those figures, and inflation has been pretty modest overall.