FINANCIaL
FIELd NOTES
Why I’m Skipping Black Friday
When my wife and I first got married, Black Friday felt like a golden opportunity. Money was tight, and the promise of saving big on gifts and essentials was hard to ignore. I remember us making a detailed list, then heading out to the stores at midnight, energized by the thought of scoring great deals. We were shopping for Christmas gifts, furniture, clothing—pretty much anything we thought we could stretch our dollars on. And sure, we probably saved a little here and there.
But as the years went on, life got busier. The thrill of late-night shopping started to feel more like a chore…
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…
Is a Stock Market Crash Inevitable?
The massive recovery we have experienced over the past 15 years is remarkable and has left many investors wondering when the next drop will happen. It may seem inevitable to you. And if history is any guide, it is inevitable. But that doesn’t make it predictable. Beginning in 1994, valuations looked stretched, and many Wall Street veterans started calling for a correction. We now know this was very premature, and stocks more than tripled before eventually plummeting.
This is the most classic example of the differences between inevitable and predictable. Today’s market is not comparable to the tech bubble, with more reasonable valuations and strong earnings growth. However, valuations look a little expensive compared to their historical averages (21.5x vs. 16.7x average)…
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…
The Changes to Medicare Part D in 2025
With Medicare open enrollment beginning last week, there are some significant changes coming to the prescription drug coverage (Medicare Part D) for 2025. These changes are part of an effort to make drug prices more affordable of the millions of retirees currently enrolled.
Knowing what these changes are can help you make an informed decision around what coverage to keep or change during enrollment, which last through December 7th...