ICYMI: Best Cities for Homebuyers 55 and Older, 8 Great Places for Snowbirds to Land, How to Avoid These 5 Early Retirement Mistakes

And, find out the final 2025 Social Security COLA estimate. Created for {EMAIL} | [Web Version]( September 13, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Instagram ]( [Youtube]( [SIGN UP](format=multipart) ⋅ [WEBSITE]( [] INTRODUCTION [] [Stepping Into A Lower Social Security COLA]( Kiplinger’s final forecast for the 2025 Social Security COLA projects the cost-of-living adjustment is going to be lower than last year and the lowest increase since 2021. A falling inflation rate has [shrunk the projected COLA by .2%](. This modest increase will make it difficult for seniors to keep up with the [continued rising costs]( of energy, clothes, transportation and shelter that are responsible for driving the current inflation rate. There has been more discussion of [changing how the Social Security COLA is determined]( by using a CPI that reflects the spending patterns of older Americans. Currently, the CPI-W is used and considers price inflation for working adults who are younger than 62. Some argue that using the Consumer Price Index for the Elderly (CPI-E), could better represent what older adults actually have to spend on healthcare and other typical expenses. I want to know what you think about the COLA and how it is calculated? Please cast your vote below and read next Friday’s edition of A Step Ahead for the results. Till then, enjoy catching up on some of Kiplinger’s most popular articles this weekend. - Donna LeValley, personal finance writer [] Should we change the way we determine the Social Security cost-of-living adjustment? [Vote]( [Yes, because the 2025 increase will be too low to meet expenses]( [Vote]( [Yes, because your financial needs are different in retirement, whether it results in a higher COLA or not]( [Vote]( [No, the trust fund is already projected to run out in 2035 and pay reduced benefits (83%). A higher COLA will make it worse]( [Vote]( [No, the current formula is fair to current and future retirees because that is what past beneficiaries have received]( [How to Earn a Tax-Advantaged 10% Dividend Yield]( The average annual return of commercial real estate over 20 years is roughly 9.5%, nearly 1% greater than the S&P 500's average annual return of 8.6%. The CRE Income Fund pays an annual 10% dividend yield and is a long-term strategy that returns over $25,000 for every $10,000 invested over the next ten years. [READ MORE]( ADVERTISEMENT [] BEST PLACES FOR PEOPLE 55 AND UP [] [Best Cities for Homebuyers 55 and Older]( [Best Cities for Homebuyers 55 and Older]( (Getty Images) The housing market has been generally competitive for some time and the large number of baby boomers retiring every year has created even stiffer competition for the limited housing available. Many are looking for a home of the same size and similar amenities including single-story homes and first-floor living quarters. What are the best cities for homebuyers 55 and older? Here is a [list of the 10 best cities to help you age in place.]( [] EARLY RETIREMENT MISSTEPS [] [5 Early Retirement Mistakes to Avoid]( [5 Early Retirement Mistakes to Avoid]( (Getty Images) I think there is much to learn from the FIRE (Financial Independence, Retire Early) movement even if you aren’t planning for a very [early retirement](. Being fiscally responsible and disciplined can improve your outlook and give you options that you may have written off. However, early retirement mistakes can douse your FIRE efforts and are useful for anyone who plans on retiring someday. Here are [five significant mistakes to avoid if you want to retire early](, or simply retire, with confidence that you are prepared. [7 Secrets About Hiring a Financial Advisor]( Working with a financial advisor can be a crucial part of any healthy retirement plan. But choosing the wrong one could wreak havoc. Check out these 7 secrets comfortable retirees know about hiring an advisor, so you can work to potentially save years of stress. [See the list]( ADVERTISEMENT [] WARM ESCAPES DURING WINTER [] [8 Great Places for Snowbirds to Land]( [8 Great Places for Snowbirds to Land]( (Getty Images) More than 1 million people spend part of the year in Florida, and many are retirees. I live in the Northeast and the idea of not needing a shovel or wool socks to get the winter is something I’m warming to. Check out these [eight affordable warm-weather cities for snowbirds]( that offer plenty of housing options, abundant activities for retirees and access to good healthcare. [Strengthen Your Retirement with Private Investments]( Imagine a retirement plan that goes beyond the traditional. Private equity offers unique growth opportunities that could redefine your financial future. Explore how private equity can be the key to a more prosperous retirement. [LEARN MORE]( ADVERTISEMENT [] OTHER KIPLINGER ARTICLES WE THINK YOU'LL ENJOY [] [5 perks of choosing local or regional financial institutions]( For those seeking a banking partner that prioritizes their needs and values, these institutions provide a compelling alternative to large, national banks. [Considering a 721 exchange? Adopt a buyer beware mindset]( Having a tax-smart exit strategy for your real estate investment is a great idea, but if a 721 exchange is part of your plan, here's what you need to consider. [Who does the IRS audit the most?]( A new report raises questions about how much the IRS is auditing wealthy and high-income individuals and corporations. 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