Social Security cards laying on top of American twenty dollar bills

When it comes to retirement planning, Social Security is a critical income stream that often serves as the foundation for many retirees' financial well-being. Much like creating a treatment plan for a patient, your Social Security strategy needs to be carefully coordinated with other elements of your financial life to achieve the best outcome.

This blog will walk you through how to maximize your benefits, including spousal options, how working affects your Social Security, and how to incorporate it all into a broader retirement income plan. With the right strategy, you can ensure your Social Security works as efficiently as possible, whether you claim early or late, and whether you continue working or transition fully into retirement.

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1. Understanding When to Claim Social Security: The Age Matters

Social Security offers flexibility in when you can start receiving benefits. The timing of your claim has a big impact on how much you’ll receive for the rest of your life.

1. Early Claiming (Age 62): The earliest you can start collecting Social Security.

Benefit: Income starts flowing sooner.

Drawback: Monthly benefits are permanently reduced by about 25-30% if you claim before your full retirement age (FRA).

When it makes sense: If you have a shorter life expectancy or need income immediately, this can be the right choice.

Full Retirement Age aka FRA (66-67, depending on your birth year): Claiming at your FRA means you’ll receive 100% of your benefit based on your earnings history.

Delayed Retirement (Age 70): For every year you delay past FRA, your benefit increases by 8% annually up to age 70.

When it makes sense: If you are healthy and have other income sources, delaying Social Security provides a larger monthly income for the rest of your life.

Key Takeaway: If you want to maximize your benefit and can afford to wait, delaying until 70 offers the highest payout. However, if you need income sooner or have health concerns, claiming earlier might make more sense.

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2. Optimizing Spousal Benefits: Don’t Leave Money on the Table

Spousal benefits can be a powerful way to boost household income in retirement. Here’s how it works:

• Eligibility: The lower-earning spouse can receive up to 50% of the higher-earning spouse’s benefit if claimed at FRA.

• Claiming Early: If the spouse claims before FRA, their spousal benefit will be reduced.

• Both Spouses Delaying: Even if the lower-earning spouse delays their own benefit, spousal benefits max out at FRA—delaying past FRA won’t increase the spousal benefit.

• Widow(er) Benefits: A surviving spouse can switch to 100% of the deceased spouse’s benefit if it’s higher than their own.

Example:
If your spouse's benefit is $3,000 at their FRA and you are eligible for a spousal benefit, you could receive up to $1,500. If your own benefit is smaller than that amount, it makes sense to claim the higher spousal benefit.

Strategy Tip: Coordinating when each spouse claims benefits can maximize household income. For example, the lower-earning spouse may claim their benefit early, while the higher-earning spouse delays until age 70 to lock in the highest possible payout.

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3. Integrating Social Security into a Comprehensive Income Plan

Just as doctors treat the whole patient—not just the symptoms—you need a plan that integrates Social Security into your broader financial picture. The key is to ensure Social Security works harmoniously with other income streams, such as pensions, 403(b)s, or IRAs.

Scenario 1: If You Continue Working After Claiming Social Security

If you plan to keep working after starting Social Security, it’s essential to understand how earning income impacts your benefits:

• Before Full Retirement Age: If you claim Social Security and work, your benefits could be reduced if your earnings exceed the annual limit ($21,240 in 2024). For every $2 you earn above the limit, $1 is temporarily withheld from your benefits.

• The Year You Reach FRA: The income limit increases significantly ($56,520 in 2024), and only $1 is withheld for every $3 earned above the limit.

• After FRA: Once you reach full retirement age, there’s no reduction in benefits, no matter how much you earn.

Planning Tip: If you plan to keep working, it may make sense to delay Social Security to avoid penalties and maximize your future benefits. Alternatively, you could claim early and accept reduced benefits if you need the cash flow.

Scenario 2: If You Fully Retire After Claiming Social Security

For those fully retiring, the goal is to create a steady, sustainable income stream. Social Security will play a major role, but coordinating withdrawals from other accounts is essential to minimize taxes and ensure your savings last.

INCOME PLANNING FOR RETIREES:

• Rebalancing Your Portfolio:
  Incorporate Social Security as a fixed income source in your overall asset allocation. With Social Security acting like a bond, you may be able to take on more growth-oriented investments in your other accounts.

• Sequence of Withdrawals:

  Instead of a one-size-fits-all approach, consider a coordinated withdrawal strategy. Balancing distributions from taxable, tax-deferred (like IRAs and 401(k)s), and even tax-free accounts can help you maintain your desired tax bracket, optimize Social Security taxation, and make your retirement savings last longer. A tailored plan ensures that each dollar works smarter for your overall financial health.

• Minimize Social Security Taxes:

  Up to 85% of your Social Security benefits can be taxed if your combined income (Social Security + other income) exceeds certain thresholds. Instead of relying on Roth IRA withdrawals early in retirement, consider implementing a Roth conversion strategy during years of low or no income—often before Social Security benefits begin or while delaying them until age 70. This approach allows you to move assets from tax-deferred accounts to a Roth IRA at lower tax rates, potentially reducing your taxable income later in retirement and minimizing the impact on your Social Security benefits.

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4. Social Security in the Context of Longevity and Inflation

While Social Security provides a reliable income stream, it’s important to think about the long-term risks you may face in retirement—especially longevity risk and inflation.

• Longevity Risk: If you live well into your 90s, delaying Social Security can help make sure you have a higher income stream later in retirement and preserve your savings. Example: A retiree who claims at 70 will receive a larger monthly check that will continue to grow with inflation over the years.

• Inflation Protection: Social Security benefits include Cost of Living Adjustments (COLAs). In high-inflation environments, these COLAs help maintain your purchasing power. While COLAs may not keep up with every expense, they offer more protection than many fixed-income sources.

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5. Putting It All Together: A Holistic Approach to Retirement Income

Here’s how to pull all these pieces together into a cohesive Social Security and retirement income plan:

1. Evaluate Your Health and Longevity Prospects: If you expect to live a long life, delaying benefits makes more sense. If health concerns arise, early claiming may be better.

2. Coordinate with Your Spouse: Decide when each spouse should claim benefits to maximize total household income.

3. Plan Around Your Work Status: If you continue working, consider delaying Social Security to avoid reductions and taxes.

4. Incorporate Social Security with Other Income Sources: Use a tax-efficient withdrawal strategy to balance Social Security with pensions, investments, and other savings.

5. Account for Inflation and Longevity Risk: Ensure your plan remains flexible to account for rising costs and a potentially long retirement.

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Conclusion: Social Security as Part of Your Retirement Treatment Plan

Planning for Social Security is like creating a well-thought-out treatment plan—it requires understanding your options, making the right decisions at the right time, and coordinating with other elements of your financial life. Whether you continue working after claiming Social Security or fully retire, your strategy should reflect your unique circumstances, health, and goals.

Remember, Social Security isn’t just about when you claim—it’s about how you integrate it into a larger income plan that keeps you financially healthy throughout retirement. Much like medicine, there’s no one-size-fits-all solution. A thoughtful strategy, tailored to your needs, can ensure your retirement income plan works just as well as a carefully prescribed course of treatment.

If you’re ready to build or adjust your Social Security strategy, consider sitting down with a financial planner to create a customized plan for your future. After all, the right prescription can make all the difference.

Partnering with Outside The Box Financial Planning (OTBFP) offers numerous benefits for individuals seeking college planning, retirement planning, small business support, wealth management, and beyond.  As a fee-only fiduciary with a comprehensive approach, unbiased advice,  and transparent fee structure, OTBFP acts as a trusted advisor who prioritizes your best interests. Click here to schedule a complimentary “Fit” meeting to determine if we would make a good mutual fit.

Remember, financial decisions have long-lasting implications, and working with a professional like the financial professionals of Outside The Box Financial Planning can provide the expertise and guidance necessary to make informed choices that align with your financial aspirations.

Markets Have Good First Quarter

Global equity markets had a good first quarter – especially the tech names. And interestingly, in the fourth quarter of 2022, global equity markets also had a pretty good quarter – except for the tech names.

When the final Wall Street bell of the quarter rang out, NASDAQ had turned in its best quarterly gain since 2020, and the other three major U.S. equity indices turned in solid results too.

For the first quarter of 2023:

• The DJIA advanced by 0.5%;

• The S&P 500 gained 6.9%;

• NASDAQ jumped 16.8%; and

• The Russell 2000 added 2.3%.

The themes that drove market performance in the first quarter centered around inflation, the Fed, and the labor market, as recent inflation numbers hinted at a potential decline. In contrast, labor market numbers suggested that the Fed could continue its pace of rate hikes further into the year.

This quarter's other big theme was a new banking crisis – as Silicon Valley Bank and Signature Bank failed – with SVB being the largest bank failure since 2008. That helped push gold close to its record high.

And as a surprise to many, cryptocurrencies extended their recovery from 2022's disaster, with Bitcoin leaping more than 50%.

Further, we saw that:

• Volatility, as measured by the VIX, trended down this quarter, beginning just north of 21 and ending just shy of 19, although there was a significant spike in mid-March.

• West Texas Intermediate crude also trended down for the quarter, starting at just over $80/barrel and ending at just over $75, with a low of $67/barrel in mid-March.

Market Performance Around the World

Investors were pleased with the quarterly performance worldwide, as all 36 developed markets tracked by MSCI were positive for the first quarter of 2023 – that’s the second quarter in a row that saw all 36 MSCI developed market indices green. And for the 40 developing markets tracked by MSCI, only 28 of those were positive.

Source: MSCI. Past performance cannot guarantee future results

Sector Performance Rotated in Q12023

The overall sector performance for the first quarter of 2023 was ok, as 4 of the 11 sectors lost ground. But of the seven sectors that gained ground, the gains were significant. Compare that to the overall trend for the fourth quarter, which was good, as 9 of the 11 sectors advanced, with six advancing by double-digits, and going back to the third quarter of last year, which was ugly, as 10 of the 11 S&P 500 sectors dropped with only Consumer Discretionary staying positive.

Finally, as happened in each quarter last year, the performance leaders and laggards rotated throughout the quarter, and the ranges were substantial.

Here are the sector returns for the first quarter of 2023 and the fourth quarter of 2022:

Source: FMR

Reviewing the sector returns for just the first quarter of 2023, we saw that:

• Only 7 of the 11 sectors were painted green, although the Information Technology and Consumer Discretionary sectors made giant leaps;

• The defensive sectors (think Utilities and Health Care) struggled during the quarter

• Financials – not surprisingly – was the worst performer, driven down by two significant bank failures; and

• The difference between the best (+21%) performing and worst (-6%) performing sectors in the first quarter was massive.

Two Interesting Rallies This Quarter

Volatility in the Treasury Market

The Fed Raises Rates Again

One of the most talked about events this quarter was the Federal Reserve’s policy meetings, and as expected, the Fed raised official short-term rates by 25 basis points in late March. Further, the “dot plot” pointed to hopes that the Fed might stop raising rates after one final one in May. Most interesting is that the fed funds futures markets ended the week pricing in a 98.2% chance that rates would end the year lower – with a whopping 95% chance that cuts would start this summer.

Source: CME Fed Watch

For perspective, it was almost exactly one year ago, on March 16, 2022, that the Federal Open Market Committee enacted the first of what would become nine consecutive interest rate increases.

GDP Up 2.6% in 4th Quarter

As the quarter ended, the Bureau of Economic Analysis reported that the real gross domestic product increased at an annual rate of 2.6% in the fourth quarter of 2022. In the third quarter, real GDP increased by 3.2%.

This is the “third” GDP estimate released, and it is based on more complete source data than was available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 2.7%. The revision primarily reflected downward revisions to exports and consumer spending. Imports, a subtraction in the calculation of GDP, were revised down.

U.S. Bureau of Economic Analysis. Seasonally adjusted annual rates.

“The increase in real GDP primarily reflected increases in private inventory investment, consumer spending, nonresidential fixed investment, federal government spending, and state and local government spending that were partly offset by decreases in residential fixed investment and exports. Imports decreased.

Consumer Sentiment Drops

“Consumer sentiment fell for the first time in four months, dropping about 8% below February but remaining 4% above a year ago. This month’s turmoil in the banking sector had limited impact on consumer sentiment, which was already exhibiting downward momentum prior to the collapse of Silicon Valley Bank. Overall, our data revealed multiple signs that consumers increasingly expect a recession ahead. While sentiment fell across all demographic groups, the declines were sharpest for lower-income, less- educated, and younger consumers, as well as consumers with the top tercile of stock holdings. All five index components declined this month, led by a notably sharp weakening in one-year business conditions.

Year-ahead inflation expectations receded from 4.1% in February to 3.6%, the lowest reading since April 2021, but remained well above the 2.3-3.0% range seen in the two years before the pandemic. Long-run inflation expectations came in at 2.9% for the fourth consecutive month and stayed within the narrow 2.9- 3.1% range for 19 of the last 20 months.

But Consumer Confidence is Up

The Conference Board Consumer Confidence Index increased slightly in March to 104.2 (1985=100), up from 103.4 in February.

Further:

• The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—decreased to 151.1 (1985=100) from 153.0 last month.

• The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions— ticked up to 73.0 (1985=100) from 70.4 in February (a slight upward revision).

• However, for 12 of the last 13 months—since February 2022—the Expectations Index has been below 80, which often signals a recession within the next year. “Driven by an uptick in expectations, consumer confidence improved somewhat in March but remains below the average level seen in 2022 (104.5).

“The gain reflects an improved outlook for consumers under 55 years of age and for households earning $50,000 and over. While consumers feel a bit more confident about what’s ahead, they are slightly less optimistic about the current landscape. The share of consumers saying jobs are ‘plentiful’ fell, while the share of those saying jobs are ‘not so plentiful’ rose.

The latest results also reveal that their inflation expectations over the next 12 months remain elevated – at 6.3 percent. Overall purchasing plans for appliances continued to soften while automobile purchases saw a slight increase.”

Sources: The Conference Board; NBER

CPI Records Smaller Increase, But Food Index is Up 9.5% Over the Last Year

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers rose 0.4% in February after increasing 0.5% in January. Over the last 12 months, the all-items index increased by 6.0% before seasonal adjustment.

Source: U.S. Bureau of Labor Statistics.

Specifically:

• The index for shelter was the largest contributor to the monthly all-items increase, accounting for over 70% of the increase, with the indexes for food, recreation, and household furnishings and operations also contributing.

• The food index increased 0.4% over the month, with the food at home index rising 0.3%.

• The energy index decreased 0.6% over the month as the natural gas and fuel oil indexes declined.

• Categories that increased in February include shelter, recreation, household furnishings and operations, and airline fares.

• The index for used cars and trucks and the index for medical care were among those that decreased over the month.

Inflation Over the Past 12-Months

The all-items index increased 6.0% for the 12 months ending February; this was the smallest 12-month increase since the period ending September 2021.

• All items less food and energy index rose 5.5% over the last 12 months, its smallest 12-month increase since December 2021.

• The energy index increased 5.2% for the 12 months ending February.

• The food index increased by 9.5% over the last year.

Food Index

• The food index increased 0.4% in February, and the food at home index rose 0.3% over the month. Five major grocery store food group indexes increased over the month. The index for nonalcoholic beverages increased by 1.0% in February, after a 0.4% increase the previous month.

• The indexes for other food at home and for cereals and bakery products each rose 0.3% over the month. The index for fruits and vegetables increased by 0.2% in February, and the index for dairy and related products rose by 0.1%.

• In contrast, the meats, poultry, fish, and eggs index fell 0.1 percent over the month, the first decrease in that index since December 2021. The index for eggs fell 6.7% in February following sharp increases in recent months.

Existing Home Sales Jump in February

The National Association of Realtors reported that “existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020. Month-over-month sales rose in all four major U.S. regions. All regions posted year-over-year declines.

• Total existing-home sales completed transactions that include single-family homes, townhomes, condominiums, and co-ops – vaulted 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February.

• Year-over-year, sales fell 22.6% (down from 5.92 million in February 2022).

• The total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000).

• Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”

Prices Slide After 131 Months of Gains

• “The median existing-home price for all housing types in January was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and West.

• This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.

• Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022.

• Fifty-seven percent of homes sold in February were on the market for less than a month.

• First-time buyers were responsible for 27% of sales in February, down from 31% in January and 29% in February 2022.

• All-cash sales accounted for 28% of transactions in February, down from 29% in January but up from 25% in February 2022.

• Distressed sales – foreclosures and short sales – represented 2% of sales in February, nearly identical to last month and one year ago.

Regional Breakdown

• Existing-home sales in the Northeast improved by 4.0%, down 25.7% from February 2022. The median price in the Northeast was $366,100, down 4.5% from the previous year.

• In the Midwest, existing-home sales grew 13.5%, declining 18.7% from one year ago. The median price in the Midwest was $261,200, up 5.0% from February 2022.

• Existing-home sales in the South rebounded 15.9% in February, a 21.3% decrease from the prior year. The median price in the South was $342,000, an increase of 2.7% from one year ago.

• In the West, existing-home sales rocketed 19.4% in February, down 28.3% from the previous year. The median price in the West was $541,100, down 5.6% from February 2022.”

Durable Goods Orders Drop Again

The U.S. Census Bureau announced the February advance report on durable goods manufacturers’ shipments, inventories, and orders:

Source: U.S. Census Bureau, Manufacturers’ Shipments, Inventories, and Orders, March 24, 2023.

New Orders

• New orders for manufactured durable goods in February, down three of the last four months, decreased $2.6 billion or 1.0% to $268.4 billion.

• This followed a 5.0% January decrease.

• Excluding transportation, new orders were virtually unchanged.

• Excluding defense, new orders decreased by 0.5%.

• Also down three of the last four months, transportation equipment drove the decrease, $2.6 billion or 2.8% to $89.4 billion.

Shipments

• In February, the shipment of manufactured durable goods in two consecutive months decreased by $1.5 billion or 0.6% to $274.8 billion.

• This followed a 0.4% January decrease.

• Also down two consecutive months, transportation equipment led the decrease, $1.3 billion or 1.4% to $90.1 billion.

Unfilled Orders

• Unfilled orders for manufactured durable goods in February, down two consecutive months, decreased $1.2 billion or 0.1% to $1,155.4 billion.

• This followed a virtually unchanged January decrease.

• Transportation equipment, down following twenty-one consecutive monthly increases, led the decrease, $0.7 billion or 0.1% to $683.8 billion.

Inventories

• Inventories of manufactured durable goods in February, up twenty-four of the last twenty- five months, increased $0.9 billion or 0.2% to $493.6 billion.

• This followed a 0.2% January decrease.

• Up three of the last four months, transportation equipment led the increase, $0.6 billion or 0.4% to $158.8 billion.

Capital Goods

• Nondefense new orders for capital goods in February decreased $1.0 billion or 1.2% to $82.0 billion.

• Shipments decreased by $0.5 billion or 0.6% to $83.2 billion.

• Unfilled orders decreased by $1.2 billion or 0.2% to $662.6 billion.

• Inventories increased by $0.5 billion or 0.2% to $218.8 billion.

• Defense new orders for capital goods in February decreased $1.2 billion or 7.4% to $14.5 billion.

• Shipments decreased by $0.2 billion or 1.6% to $14.6 billion.

• Unfilled orders decreased by $0.2 billion or 0.1% to $188.9 billion.

• Inventories increased by $0.1 billion or 0.3% to $23.3 billion.

Sources: dol.gov; nar.realtor; umich.edu; census.gov; bea.gov; fidelity.com; msci.com; nasdaq.com; wsj.com; morningstar.com

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Partnering with Outside The Box Financial Planning offers numerous benefits for individuals seeking retirement planning, small business support, wealth management, and beyond.  With their fiduciary duty, comprehensive approach, unbiased advice, transparent fee structure, and ongoing support, OTBFP act as a trusted advisor who prioritizes your best interests. Click here to schedule a complimentary “Fit” meeting to determine if we would make a good mutual fit.

Remember, financial decisions have long-lasting implications, and working with a professional can provide the expertise and guidance necessary to make informed choices that align with your financial aspirations. 

However, if you would like to take a shot at building a financial plan on your own, we offer our financial planning software, RightCapital, free of charge. Click here to get started.

If you've been reading or watching the news lately, you know a lot is happening in the financial world.

You've heard about changes in interest rates, rising inflation, and the potential of a looming recession.

If the headlines have caused you some anxiety, you’re not alone. We've all been through a lot, financially and personally, over the last couple of years. You may feel like any sense of certainty has gone out the window.

But we're here to reassure you. The best course of action during times of uncertainty is to stick to the financial plan you and your financial advisor have developed. Markets and circumstances will shift and change, but a well-developed financial plan will help you weather the storms. And if you haven’t crafted a financial plan yet, perhaps now is the time. 

Read on to find answers to your latest financial questions. 

What’s Happening in the Financial News?

Let's start by diving into what's happening in the financial news. In 2022, and in the last couple of years, the news has been full of dramatic headlines and financial uncertainty. But what is all this talk about the Federal Reserve raising interest rates and a tighter monetary policy? To understand, it's important to know what's been going on with inflation.

Inflation has been accelerating

In June of 2022, inflation rates jumped to 8.5%, the highest they've been since the 1980s. For some context, the Fed tries to maintain inflation at a rate of 2% over the long run.

Lately, you’ve likely experienced inflation at the gas pump or grocery store. You’re paying a lot more for these necessities than you were a year ago.

So, what is inflation? Inflation is a decrease in money's purchasing power, which results in higher prices for goods and services. 

Part of the reason inflation has been accelerating so quickly is due to widespread supply shortages in the wake of the pandemic. When supply goes down, demand goes up.

The real effects of accelerated inflation include a higher cost of living. We're paying more for gas, groceries, and rent than we were a year ago — roughly 8.5% more across the board. 

In response to rising inflation, the Federal Reserve increased interest rates

What, if anything, can be done to combat rising inflation? That's where the Federal Reserve comes in.

The Federal Open Market Committee (FOMC) makes decisions about open market operations on behalf of the Federal Reserve. Their main goals are to keep employment up, stabilize prices, and moderate long-term inflation rates. One of their main jobs is to control the supply of money in the US economy, which influences inflation rates.

When inflation is high, the FOMC tends to raise interest rates, which increases the cost of borrowing. The idea is to make borrowing less appealing, reducing the amount of money in circulation. This slows demand and therefore lowers prices.

 In June 2022, the FOMC voted to raise interest rates by 0.75%, or 75 basis points. And in July, the FOMC raised interest rates by another 75 basis points, for a total of 150 basis points so far this year.

This interest rate, also known as the Federal Funds Rate, is an important indicator of the economy. It's the rate at which banks charge each other to lend Fed funds overnight. It directly impacts consumer interest rates on mortgages, auto loans, and credit cards.

This is all part of a tighter monetary policy

Along with rising inflation and higher interest rates, you've probably been hearing the term “tighter monetary policy” being tossed around in the financial news.

A tighter monetary policy aims to slow down an “overheated” economy. An overheated economy is one experiencing high levels of inflation following a period of economic growth.

One way to cool an overheated economy is to slow inflation by raising interest rates. This makes borrowing less attractive — and more expensive. The result is a smaller amount of money circulating through the economy. 

Increasing the reserve requirement, the amount of money banks are required to have on hand, is another way of taking money out of circulation and increasing the cost of borrowing. 

On the other hand, a tighter monetary policy makes saving more attractive. This is because higher interest rates on savings accounts work in a savings account holder's favor. 

There’s talk of a recession

So, why all the fear in the news?

In response to the tighter monetary policy, stocks have been dropping, and there's a fear of a looming recession. Interest rates will likely continue to rise, making it more expensive for those applying for a mortgage, paying off debt, or getting a car loan. 

There are a few signs — like the fact that the economy shrank in early 2022, turbulence regarding political disruptions and the ongoing pandemic, and increased interest rates, that indicate the potential for a recession. But that doesn’t mean you should make any drastic decisions.

How You Should Respond to The Financial News

A lot of this news sounds scary. After living through 2008, the fear of a recession is real. But that doesn't mean you should panic. The truth is, no one knows exactly what's next. The economy is cyclical, and ebbs and flows are normal. The worst thing you can do is make knee-jerk reactions in response to what you hear in the news.

So, what should you do?

In general, less is more. If you've been working with a trusted financial advisor to balance a well-diversified portfolio as you approach retirement, you're on the right track. It's times like these when you have to sit tight and weather the storm.

If you’re managing your money without a professional’s perspective, this might be the time to get some trusted advice. If you’re feeling anxious or uncertain, a financial planner is a great person to consult.

Finally, you can make sure your emergency savings account is fully funded. As we mentioned earlier, one upside of higher interest rates is that your savings account benefits. 

Make sure your emergency savings are fully funded so you can be prepared in case of tough times. This means if something does happen and you need extra cash, you won’t have to dig into your hard-earned retirement funds. 

Work With a Financial Planner to Prepare For the Future

At Outside the Box Financial Planning, we take a personal approach to financial planning. When the financial news is unsettling, it can be tough to make level-headed decisions. Instead, you might be tempted to act on impulse.

The best thing you can do is have a trusted financial planner in your corner — one who’s ready to help you through whatever happens. We do more than manage your assets. We ease your concerns so you can feel financially secure and prepared.

To see if we can help you feel more secure in your financial future, click here to schedule a conversation today.

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Partnering with Outside The Box Financial Planning offers numerous benefits for individuals seeking retirement planning, small business support, wealth management, and beyond.  With their fiduciary duty, comprehensive approach, unbiased advice, transparent fee structure, and ongoing support, OTBFP act as a trusted advisor who prioritizes your best interests. Click here to schedule a complimentary “Fit” meeting to determine if we would make a good mutual fit.

Remember, financial decisions have long-lasting implications, and working with a professional can provide the expertise and guidance necessary to make informed choices that align with your financial aspirations. 

However, if you would like to take a shot at building a financial plan on your own, we offer our financial planning software, RightCapital, free of charge. Click here to get started.