hi, everyone. welcome to "on the money." i'm sue herera filling in for becky quick. if you have a job, you pay into it. if you're retired now, you get it, but how long will social security be around? the most reliable cars you can find. surprises at the top and the bottom of the list and the american brand that finally cracks the top three. pay your money and make your choice. we're talking open enrollment. how to make the tough decisions about your benefits. and an $8 billion industry with just a little time to make a lot of profit. the scary business of halloween.

"on the money" starts right now. ♪ we begin with social security. next year americans who receive benefits will be getting a small cost of living increase, .3%. that's an average of just $4 a month. can retirees who rely on social security payments survive on those numbers? saving the safety net is this week's cover story. >> reporter: each year the social security administration determines how much the cost of living or c.o.l.a. increase will be based on the consumer price index, and that's a basket of goods and services tracked by the federal government which includes everything from food to housing to gasoline. increases have ranged from more that 14% in 1980 to zero in 2016. critics say that c.o.l.a. does not properly weigh the rising cost of health care and groceries which impact seniors. the debate over the social security increase comes at the

same time as concerns are increasing about the program's future and stability. the system is funded by workers' contributions from a payroll tax or fica. the proceeds are paid out to retirees. any excess is put into a trust fund which generates a small amount of interest, but that fund is projected to run out of money by the year 2034. workers pay 6.2% of their salary towards the program, up to a cap of $118,500, which will increase to $127,200 next year. the problem is the u.s. population is aging with more people retiring and not enough new workers joining the workforce to replace them. >> so what needs to be done to keep social security sustainable? neil irwin joins us, a "new york times" senior economic correspondent. good to see you, neil. thanks for joining us. you know, an enormous amount of people rely on social security, of course. the question is why is the cost of living increase so small, especially recently?

>> well, the simple answer is inflation is very low. energy prices have been falling. food prices this year have fallen some. that said, as the segment said, you know, there's plenty of costs, especially seniors and especially people on skoeshl social security receive that are rising faster, and health care is a big one. >> that begs the question whether or not we need to change the way it's calculated. i mean, because if it doesn't include some of those things that are moving higher like the cost of fooled, like the cost of health care, is it really calculated in the correct way? >> yeah. there's an interesting question, should you calculate is on the basket of goods, things that especially seniors and especially retires are consuming, and would that be a higher number and probably a slightly different number than they calculate with a broad set of consumer goods, and that's a real interesting argument. >> there is going to come a point where social security runs out of money.

is it going to take that for congress to take any kind of action? do we have to get -- some would say we're in a crisis now, but is it going to take that running out of money point, that -- that end of the road point before congress takes some action? >> i mean, the history is that the u.s. government has been able to plan ahead. in 1983 there was social security reform that raised the retirement age over gradually phased in. most people don't even notice. it happened kind of automatical automatically. so that was kind of a forward looking policy back in 1983. there's not much evidence that there's a ton of momentum towards that now and this cuts in the other direction of what you're raising on the cost of living. if you want to increase the cost of living adjustments to use a different measure of inflation, that actually makes it more expensive and makes the financial challenges greater. it's a kind of complex set of trade-offs. >> oh, yes. it's not easy. there are some who say that those who are wealthy get better health care and therefore live longer and as a result of that maybe they don't need social security. maybe we should recalculate the entire system. maybe not everyone should be eligible for social security. >> yeah. there's really interesting evidence that's come out just this year. it's always been the case that

wealthy people live longer than poorer people, but that gap is winding, and the lifespan gap among rich and poor is longer than ever, and that has big implications for social security. this program that's meant to be progressive, meant to help people at the lower and middle end of the income difficulty abuse, you know, have a better life. if wealthy people are living a lot longer, that's more financially advantageous to them. how do you change that? that gets very tricky because the whole idea is to have a baseline income for retirees. >> what if you change the retirement age? i mean there are arguments not just for social security but for others, you know, that say maybe we should change the retirement age to 67 or 70. would that solve the problem or make the problem worse? >> well, that would definitely make the solvency issue better. so that's one approach to make the program solvent past 2035 when the trust fund is expected to run out.

the problem to keep in mind is that's easy for people in white collar job, executives, jobs that people can keep doing into their 60s and 70s to say if you're -- if, you know, you're more working class, working with your hands, if you're a miner, a farmer, you know, dog something that's more physically taxing, it's hard to keep working until you're 65 or 70. >> that's true. >> so there's consequences if you try to range the retirement age that's problematic as well. >> thanks so much, neil. we didn't solve the problem but we made some progress. >> thank you. >> neil irwin, thank you very much. now, here's a look at what's making news as we head into a new week "on the money." america's economy was surprisingly strong last quarter. the gross national product grew at an annual rate of 2.9%. that's better than expected and the best number in two years. it's in part due to strong exports in consumer spending. the gdp is the broadest measure of the size and scope of the u.s. economy. the markets didn't do a whole lot most of the week. the dow was up one day and down the next, mostly following

earnings news. the nasdaq soared early, up 1% on monday, but gave back most of that later in the week. stocks fell on friday. home mortgage rates continue to fall. mortgage finance company freddie mac says the average 30-year fixed rate is now 3.47%, down from a week earlier. the rates are relatively stable and near record lows. twitter is killing vine. the video-sharing service will shut down in the coming months. vine allows users to share six-second video clips. twitter is also laying off about 10% of its work force or about 300 people. up next, we're "on the money". driven to perfection, well, not quite. we'll have "consumer reports'" ranking of the most reliable cars, and there are a few surprises, and a bit later we are off to the races. how one woman is using an unusual platform to raise money and awareness for breast cancer. now a look at how the stock market ended the week.

this week, tips to avoid the sticker shock hand make the best choices for open enrollment. it is the annual reliability rankings put together by the magazine and there are a few surprises. some are at the bottom, one at the top. phil lebeau reports on the american brand that shines. >> reporter: they are not the flashiest models for sale, but buicks are turning heads, especially after the latest report on auto reliability by "consumer reports" which ranks buick as the third most reliable brand behind lexus and toyota.

>> if you look at the top three, it's toyota, lexus, no surprise there, conservative companies with a real good reputation of putting out reliable vehicles, but above any of the other japanese automakers, above honda, above subaru, we see buick. that is a big deal. >> reporter: while buicks are getting better according to consumer reports, hondas are not as reliable. in fact, the late version of the civic, one of the most popular cars in america, dropped in the survey due to problems with the power train and infotainment system. honda says it respects the survey results and is working to enhance the usability and functionality of its vehicles. meanwhile issues with the falcon wing doors in the new tesla model x are one reason "consumer reports" ranks it as the least reliable luxury mid-sized suv, but the brands with the poorest rankings are ram, fiat, and chrysler. >> fiat chrysler really continues to stumble. the platforms that they have for fiat have not proven reliable. >> fiat chrysler says despite

the survey results, the company's own internal measurements continue to show positive growth towards vehicle quality. >> this report is based on subscribers of "consumer reports" actually critiquing the cars, trucks and suvs they own saying here's what works and what is not working with my particular vehicle, and the number one complaint, sue, infotainment systems or in-car connectivity systems that aren't working the way they are snowed to. >> or complicated. thanks, phil. appreciate it. >> you bet. she was the sole female driver in the indy 500 last year as well as the only one do so in pink. pippa mann joins us now from racing capital indianapolis to talk about her drive to raise awareness and funding for breast cancer research. pippa, thank you so much for joining us. i would like to start with how you got your start in racing. >> most drivers have someone in their family or a family friend who is involved in racing, but for me i just grew up as a race fan, and then one day one of my friends had a birthday party at

the indoor go kart track, and, you know, man, for me, that was it. that was the moment and i should never have looked back from that day forward. >> and you recently participated in your fifth indy 500 race this year. your car obviously stands out in the pack. bright pink. and that's because you became involved with the susan gchlt komen foundation. how did that happen? >> it does stand out, and, you know, i have to start this story but saying i was never the girl who wore pink at the racetrack. i was anti-pink at the racetrack because, you know, i just wanted to be one of the other drivers. i wanted to blend in. but i started to follow the career of sarah fisher in indycar. she was the first female driver whom i've ever heard of having that level of success in hope wheel. sarah and her team turned her car pink in october in support of breast cancer awareness, and i thought, you know what, this is something that runs in my family, that that's a really cool thing to do with your platform as an athlete.

>> absolutely. >> and then sarah retired as a drive eric and so this sort of went away from indycar racing, and you have those thoughts of, you know, someone should do something and so why shouldn't i be the someone who does something? and so this started with taking my red and yellow helmet and turning all of the red areas pink, adding the susan g. komen running ribbon, and allowing my local affiliate here in central indiana to auction it off after the indy 500. >> well, you've been an inspiration, and not only are you helping raise awareness for breast cancer, you really have become an inspiration for young girls, especially this who look at the sport which is a male-dominated sport. how difficult has it been for you to compete and do as well as you have in this -- in this male-dominated sport? >> you know, racing is a tough sport, but one of the things i've really enjoyed since moving to the u.s. is racing in the u.s. i really am treated as an equal by nearly all of the other drivers on the track.

my team treats me just as another driver. and as the girl who never wore pink at the racetrack, that was a connection i genuinely never made until the first day we were all out there with the pink race car. was how this would affect all those little girls who were fans racing just as i was when i was a little girl. >> pippa, thank you so much. you are indeed an inspiration, and it has just been a pleasure and privilege to have you with us. thank you. >> well, thank you. up next we're "on the mon " money". it's election season and, no, we're not talking about hillary or donald. how to make the best choices when it comes to your benefits. and later, how much would you spend for a horrifying experience? see what demons, ghouls and, yes, clowns come with your tickets to a haunted hay ride.

open enrollment season is just around the corner. the time when you elect health, life, and disability insurance for 2017, and if you don't pay close attention it could cost you, joining us now is certified financial planner doug boneparth. good to see you, doug. >> great to be here. >> welcome back. >> thanks. >> you know, it's very confusing for a lot of people, especially if your employer has multiple plans available. so how do you evaluate an insurance plan on the surface? what do you look for? >> so most people are going to look at costs.

that's the big driver. how much am i going to pay, and which plan is right for me? so when you're going to evaluate these plans, it might be a good idea to look back at the year past and see what did you actually spend on health care costs this year? for example, if you ended up not spending a lot because you are healthy, well, maybe the high deductible plans could be right for you because you don't want to pay a lot in premium. and the opposite might hold true. if you see a lot of doctors and have a lot of prescriptions, then maybe you want to look for plans with lower deductibles where paying more premium could be advantageous. >> a lot of people also want to put money in hsa or an ffsa. how much ideally should you put away? >> even though there's tax benefits for putting money into those plans, you want to see first what you can afford to do and go up as much as you can to the limit based on that affordability. >> what about disability insurance? i mean, everybody worries about being, you know, having an accident, being disabled. is it worth it to take on that disability insurance? are there some parameters as to

whoo should do it and maybe who shouldn't? >> yeah. i'm a big fan of receiving group disability insurance. typically that's more affordable to receive a group plan than it is to go out and buy an individual plan, and protecting your income arguably is protecting one of the most important things that you have, your ability to earn money. so i would encourage you to take advantage of what you can afford again to apply for through your employer. typically long-term disability plans will allow you to protect up to 60% of your base salary, and you can receive that benefit tax-free, assuming you're paying for those premiums on an after-tax basis. >> now, what's the biggest mistake that you see people making in open enrollment? >> i think it's just forgetting to enroll. i mean it seems so obvious, but when you're caught up in your life and busy and it's -- most of it is online now, it's very easy to forget that. you actually have to log in and make your elections, and that can be a real bummer to

say, hey, it's one day past open enrollment and you just missed out. and also make sure that you don't let too much benefit or too much insurance again due to affordability. >> doug, thank you so much. >> my pleasure. up next "on the money," a look at the news at the week ahead, and this halloween, taking an amazing haunted attraction. is this frightful experience coming to your town next?

for more on our show and our guests go, to our website otm.cnbc.com, and you can follow us on twitter at "on the money." here are the stories coming up that may impact your money this week. look out for ghosts and goblins ringing your doorbell because monday is halloween. we'll also get a read on the consumer with personal income and spending. on tuesday we'll get the latest report card on manufacturing from the institute of supply management. we'll also see how the automakers are faring with october's car sales. on wednesday, the federal open market committee ends its two-day meeting with an announcement on interest rates, and on friday we'll see how many jobs the economy gained or lost when the employment report is released. if you're looking for a scare this halloween, you could probably find one at a haunted house, but what if the ghouls and zombies were outside and

stalking you under the darkness of night? gives me chills just thinking about it. well, we found one in new york city called haunted hayride. >> definitely an adventure. it's definitely an adventure -- >> hurry up, let's go. >> -- it does take you different places. one minute you're in a church, and then you're like in a swampy area, and now you're like in a junkyard, and, oh, my gosh, what's happening. >> absolutely terrifying, like everything is just there. like you just really watch out. [ screaming ] >> they are always on you. >> you don't know what's coming. [ screaming ] >> i think i'd come back this season. >> oh, god. >> yikes. melissa carbone is ceo of 1031

productions, the company behind the haunted hayride. nice to see you, melissa. thanks for joining us. >> nice to see you too. i love the sound of those screams. >> oh, my gosh. we just gave them a glimpse of the haunted hayride. who comes to it? we saw a wide variety of people. >> the haunted hayride is our mainstream halloween attraction, so it's a very 18-34 demographic. lots of teens and college kids canned lots of families. that's a ton of fun. >> well, you know, obviously we heard screaming, but a lot of laughing too. i mean it seems like it's kind of a fun event and a scary event. >> absolutely. we always say if we can scare a handful of people on a wagon everyone has fun. everyone else has fun laughing at the people terrifying and being annihilated by the monsters. >> how did you come up with this idea? >> you know, it was really organic. i had a house in westwood, california, a little suburban part of california, and every year we'd have 200 or 300 kids coming through our yard, and i was building these elaborate

home displays. >> wow. >> and i didn't realize at the time that i was a home haunter, but i was, and one day i realized how many people were coming through and i wanted to do the research behind the actual day, the halloween revenue, and it was giant at the time. it was a $6 billion industry. this year it's going to top out at $1.4 billion, so for a town like l.a. i thought it was a little underserved so i thought i would be the one to start bringing halloween in a big way to l.a. >> and you did. >> i did. >> you know, halloween is a once-a-year event. >> mm-hmm. >> what about profitability? >> it's a seasonal event, but it is still an $8.4 billion industry. this was an industry at $8.4 billion that you have to really think hard to -- to come up with who the leader in the industry is so it's kind of up for grabs. it was this dark horse multi-billion-dollar industry, and, you know, whether seasonal or not, that type of revenue can sustain a business. >> you've been in l.a. for eight years. >> yeah. >> but this is the second year

in new york. so l.a. and new york, kind of on either coast. are you going to expand to other cities? >> yeah, absolutely. right now the focus was new york, and i think next year our focus is going to be texas. we're going to go into the dallas market and start infiltrating texas. >> you'll be terrifying people across the country. >> with any luck. >> best of luck to you. thanks so much, melissa. >> thank you so much. my pleasure. >> that's our show for today. i'm sue herera in for becky quick. next week with the election thanks so much for joining us. next week with the election almost here, money moves you should make no matter who wins. each week keep it right here. we are "on the money." have a great one, and we'll see you next weekend. with the febreze car vent clip break out the febreze, and [inhale/exhale mnemonic] breathe happy.

hey, there. live at the nasdaq market site on this very busy friday afternoon. the guys behind me, they're getting ready. while they're doing that, here's what's coming up in the show. >> a million dollars isn't cool. you know what's cool? >> you? >> no, what's cool is dance trade on facebook. it can get you long the stock for just 3 bucks. here's what investors in drug stocks feel today. >> i can't take it! i can't do it! >> but one drug stock might be so bad it's actually good. we'll explain. and how would you like to make money on disney as shares go up, down, or nowhere at all on earnings?