FINANCIaL
FIELd NOTES
How to Calculate an Accurate Retirement Budget
During the first year working with a new client one of the most important parts of the planning process for pre-retirees is stress testing the retirement budget. I've learned from trial and error that the budget shifts, sometimes dramatically, in retirement…
The Future of Social Security (2025 edition)
Will there be anything left when I retire? Will my benefits get cut? These are some of the most frequent questions I get when it comes to someone’s retirement plan. And the media loves to talk about the Social Security problems.
Fortunately, there is data to answer these questions. Every year the Board of Trustees for Social Security reviews the financial status of the trust fund that pays out Social Security benefits. Recently, the board released its 2025 report, and below is my summary…
How Being Present Increases Happiness in Retirement
A few weeks ago, the last major golf championship of the year was played - The Open Championship. During the opening round, Rory McIlroy's tee shot found the rough near spectators. If you don’t watch much golf, this can be extremely frustrating for the players but very exciting for the fans, as they get to watch a shot up close.
As you might expect in this day and age, just about every fan pulled out their phone to capture the moment. Everyone, except for an elderly couple, who were standing side-by-side, fully taking in the moment…
The Surprising Impact of Working 1 More Year
One of the most common tweaks I make to financial projections is the projected retirement date. Sometimes, we move retirement forward due to changing work circumstances, and sometimes we move it back to try to maximize earning potential at the tail end of a career.
I advise clients who are financially prepared to retire not to delay it too long. The early years of retirement are among the most exciting, and missing out on them by working unnecessarily longer can lead to regret…
The Barbell Approach to Social Security
Couples in retirement often face a dilemma: Should they take Social Security early, or should they delay to full retirement age, or even age 70, to maximize their payouts? The "Barbell Strategy" offers a creative middle ground, balancing immediate cash flow with long-term financial security.
Having one spouse claim benefits early while the other waits until age 70 to maximize their benefit ensures stability in the present and protection for the future since a surviving spouse only keeps one Social Security benefit, whichever is largest…
How Your Social Security Claiming Age Influences Asset Allocation
A couple in their mid-60s recently asked me about when the best time would be to take Social Security. After discussing their financial situation along with their family longevity history, we settled on a preliminary plan that involved waiting on Social Security for a few years.
The plan was to lean more heavily on their investments now, and then dial back withdrawals once Social Security begins. Because of this, we made some modest adjustments to their asset allocation to accommodate this…