NEWS FLASH
👮‍♀️ Final Payback: Madoff victims recover 94% of losses through The Madoff Victim Fund's. Its 10th and final distribution of $131.4M brings total compensation to $4.3B, benefiting ~41k victims across 127 countries. Most victims were small investors averaging $250k losses, not wealthy institutions as commonly believed. The fund sourced $2.2B from late investor Jeffry Picower's estate. Separately, court-appointed trustee Irving Picard has distributed ~$14B through settlements with former investors who profited unknowingly from the scheme before its 2008 collapse.
🔮 Inflation Update: December CPI climbs 0.4%, marking the fastest monthly rise since last February. Year-over-year increase hits 2.9%, with core inflation at 3.2%. Energy costs drove 40% of December's gain, with gas prices jumping 4.4%. Housing costs—while still up 4.6% year-over-year—posted the smallest annual gain since January 2022. Markets reacted positively, with stocks rising and Treasury yields dropping. The Fed's 2% inflation target remains distant, but softer CPI readings suggest rate hikes are unlikely at the January meeting.
📝 Social Security Overhaul: In a major win for public sector retirees, the Social Security Fairness Act eliminates two long-criticized provisions that slashed benefits for government pensioners. The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)—which reduced or eliminated Social Security payments for workers receiving non-Social Security pensions—are now defunct retroactive to January 2024. The repeal means significantly higher benefits—up to $1,115 monthly for some recipients—affecting millions of teachers, police officers, and other state/local workers. While a victory for current retirees, the $196 billion price tag raises questions about Social Security's long-term stability. Recipients previously impacted should file claims promptly, as retroactive payments await.
RETIREMENT ARTICLES
What We're Reading
CHART OF WEEK
U.S. healthcare spending rose 7.5% to nearly $5 trillion last year: That’s over $14,000 per person and the biggest percentage increase since 1990. Hospitals and doctors’ offices cite that they are paying more for workers, in large part due to worker shortages, rising wages, and high turnover.