In today's unpredictable financial landscape, market volatility has become an inevitable reality for investors. Professional wealth management isn't just a luxury, it's increasingly a necessity for those looking to protect and grow their assets regardless of market conditions.

Understanding Market Volatility's Impact

According to SmartAsset's February 2025 study, clients working with professional financial planners were 60% less likely to make panic-driven selling decisions during market downturns compared to self-directed investors. This disciplined approach resulted in portfolio performance that was 4.3% higher on average over a five-year period.
 
How Financial Planners Navigate Market Turbulence

A skilled financial planner brings several advantages during volatile markets:

1.  Strategic Asset Allocation

Professional wealth managers develop diversified portfolios designed to withstand market fluctuations. The SmartAsset study revealed that professionally managed portfolios maintained 15-20% in counter-cyclical assets, providing crucial stability during recent corrections.

2.  Emotional Discipline

The SmartAsset study found that 72% of self-directed investors made significant portfolio changes based on emotional reactions to market news, compared to just 18% of investors working with financial professionals.

3.  Opportunistic Rebalancing

Wealth management clients benefited from strategic rebalancing during market dips, with advisors increasing equity positions by an average of 12% during the last significant correction.

4.  Personalized Financial Planning

​Professional financial planning offers customized approaches based on your unique risk tolerance, time horizon, income needs, tax situation, and estate planning goals.
​
The February SmartAsset study highlighted that 83% of clients working with financial planners had documented investment policies that included specific volatility response strategies.

5.  The Cost-Benefit Analysis

The SmartAsset study provides compelling evidence that professional management pays for itself:

• Clients experienced average annual returns 1.8% higher than self-directed investors after accounting for all fees
• Professionally managed portfolios demonstrated 23% lower tax liabilities through strategic tax-loss harvesting
• 91% of clients reported significantly reduced financial stress during market downturns

​Finding the Right Financial Partner

​When selecting a wealth management professional, consider:

• Fiduciary status (ensuring they're legally obligated to act in your best interest)
• Experience navigating previous market downturns
• Communication style and frequency
• Fee structure transparency
• Comprehensive planning capabilities

 
Conclusion: Peace of Mind Through Professional Guidance

In an increasingly complex and volatile investment landscape, professional wealth management offers both performance advantages and peace of mind. The February SmartAsset study found that 87% of clients working with professional financial planners reported feeling confident in their long-term financial plans despite market turbulence while earning higher long-term performance on average and lowering both portfolio volatility and taxes.
 
Why not partner with us today to see if you could realize similar benefits and peace of mind.  Reach out today!

References:
SmartAsset. (February 2025). "The Value of Professional Financial Guidance During Market Volatility." SmartAsset Research Division.

​Deciding when to start taking Social Security benefits is one of the most crucial financial planning decisions you will make as you approach retirement. The timing of your claim can significantly impact your financial well-being throughout your retirement years. In this blog post, we will explore why it is essential to determine the right time to take Social Security and how we can help you in making a more informed decision.
 
Why Timing Matters
 
The age at which you begin claiming Social Security benefits affects the amount you receive monthly. Here are some key points to consider:

1. Early Claiming Reduces Benefits: You can start receiving Social Security benefits as early as age 62, but doing so will permanently reduce your monthly payments. For example, if your full retirement age (FRA) is 67 and you claim at 62, your benefits could be reduced by up to 30%1.
2. Full Retirement Age (FRA): Your FRA is the age at which you are entitled to receive 100% of your Social Security benefits. This age varies depending on your birth year but is generally around 66 to 67 for most people1.
3. Delayed Retirement Credits: If you delay claiming benefits beyond your FRA, your monthly benefit amount will increase. For each year you delay, up to the age of 70, you can receive an increase of about 8% per year. This can result in significantly higher lifetime benefits, especially if you live longer2.
4. Longevity and Health Considerations: Your health and life expectancy play a crucial role in deciding when to claim Social Security. If you expect to live longer, delaying benefits might be more advantageous. Conversely, if you have health concerns, claiming earlier might make more sense.
5. Spousal Benefits: If you are married, coordinating the timing of Social Security claims with your spouse can maximize your combined benefits. Understanding spousal and survivor benefits is essential for optimizing your overall retirement income2.

 
How We Can Help

We use a powerful financial planning tool called RightCapital. This is a powerful financial planning tool that can help you navigate the complexities of Social Security claiming strategies. Here is how it works:

​RightCapital's Social Security Optimization module allows you to compare different claiming strategies and their impact on your retirement income. You can examine the income amounts and break-even points for various filing strategies, helping you make an informed decision3.
 
Here we can see the software has computed the optimal strategy for this sample couple vs. their current desired ages for claiming social security (i.e., 62 years of age for both spouses), the difference in claiming strategy benefits is substantial at $951,513 over their expected lifetimes.

​Obviously, longevity figures into this strategy and many clients will question at what age is there a crossover or breakeven in benefits. In the case of this sample client, that breakeven is at age 77. If their family histories led them to believe they would not live to age 77, this client would obviously opt to take their benefits early. However, as a rule, most U.S. persons are living longer, and medical advances continue to extend the age the average American will survive too.

​A comparison graph allows us to look at all the options outlined by the software and to make certain judgements based on the varied scenarios as there is no one right answer for all clients. 

Finally, we can look at Social Security claiming if for example that the client had an aggressive reinvestment plan for such payments that made taking the benefits early. In this example, let us assume the client was involved in private equity and these funds would benefit from reinvestment at return rates greater than 10% per annum.
​
In this case, the entire strategy is turned upside down and the couple then benefits from retiring earlier at age 67 for each (still not the early retirement they had initially desired).

Conclusion
Determining the right time to take Social Security is a critical decision that can have a lasting impact on your retirement income. By understanding the factors that influence your benefits and using tools like RightCapital, we can help you make informed decisions that maximize your financial well-being. Whether you choose to claim early, at your FRA, or delay until age 70, we can provide the insights and guidance you need to make the best choice for your unique situation.
​
Feel free to reach out if you have any questions or need further assistance with your financial planning and wealth management!
 
1Charles Schwab Guide on Taking Social Security 
2 The Motley Fool on Social Security Benefits 
3 RightCapital Social Security Optimization Tool

There is no better time to reexamine where you are financially than the new year!  Along with the more common goals to lose weight, work out more and take up some new hobby, planning for your financial future (or at least reviewing that plan) should be on everyone's list of the goals or priorities for 2025. 

Strangely, it is not all that common for Americans to have such planning.  According to the website Spendmnot, only 1 in 3 Americans have some kind of long-term financial plan.  According to the same site, 70% of Americans say their financial planning needs work.

Here at InTrust Advisors, we recently updated our financial planning software to RightCapital from another provider.  The switch was quite frankly about lowering our annual software cost, but RightCapital has won us (and the clients that we have worked with it so far) over.  It is simple to use and highly visual/intuitive.
 
The software provides clients with a clean looking dashboard/snapshot outlining important KPIs related to their finances including:

• The probability of success for the proposed plan.
• Their net worth.
• Their effective tax rate.
• A balance sheet of their assets.
• An asset simulation of their proposed plan.
• A tax allocation summary.
• Their current investment allocation.
• To dos/notes.

 
All in a clear one-page snapshot or dashboard.
 
Either with our help or in some cases on their own, you/we can then dig into each of these areas, make changes as appropriate for changing goals or circumstances, come up with action plans and more.    Here is what those Snapshot looks like for a sample client:

​Once the software profile information is updated for asset values, expected income, savings, financial goals and expenses, it gives the user a clear understanding of the probability of achieving those goals seen above at the Probability of Success or below as the Retirement Analysis (Current Plan).

In this sample case for a pre-retirement client, the current plan has a lower than acceptable probability of success than one would like at just 46%.
 
However, we made a few changes to the plan and, just like that, the probability of success rose to a more acceptable level of 84%.  
 
The action items tab above pulls down and here is where those changes are made in real-time while sharing information back and forth between the client and the advisor.  These changes are shown as the Proposed Plan below.

​In this sample case, the following changes were made to the base case:

• The monthly retirement expenses were cut from $8,000 to $7,000 on the back of less travel or maybe consolidating autos or any number of reasons.
• Pre-Retirement taxable savings assumptions were raised by $10,000 per annum. 
• Retirement ages were raised from 62 to age 67.
• The investment allocation was adjusted to a balanced approach. 
• Social security was optimized for the maximum benefit.
• A customized tax strategy was implemented.
• An updated Education strategy was also implemented.

 
The result was a clear plan and peace of mind for this client, and this is just a small subset of the capabilities of the software as we can dig deeper into such strategies as:

• Roth IRA conversion strategies
• Distribution strategies
• Social Security claiming strategies
• Insurance coverages and the adequacy of such coverages
• Savings strategies
• Spending strategies in retirement
• Investment allocations
• Estate planning
• and more.

Maybe we can help you gain the same peace of mind that a clear plan brings?

Click here to reach us and find out more

Ready to get started with RightCapital now?  It is free and easy to get started.  Click the link below to get started.

Sometimes blog posts come easily and sometimes they do not.  Over the summer, I seem to struggle with things to write about plus market volatility tends to pick up, which keeps me busier managing money. 

Remember this when you are taking your vacation.  Think of me as I am lugging my laptop wherever I go because Mr. (or Mrs.) Market never seems to take any time off.  It's a good thing I love this stuff!

First up in this special blog addition is a couple market updates.  Let's start with equities and then move to fixed income (i.e., bonds).

Here is the situation with equities:

We have a rising trend.  A recent stairstep down and elevator up correction may not be the end of the volatility though.  Expect some volatility in the period leading up to the election maybe as early as September.

Once the election is decided and the loser taken their shot at the fairness of the election, we should see favorable seasonality into the end of the year and possibly into early 2025.

​​My guess is that 2025 is no picnic for whoever wins in November.  

We have weakening economic conditions and rising unemployment levels as big and small companies continue to shed jobs.  On the flip side, we still have strong liquidity from past government programs, a Federal Reserve that looks ready to start easing interest rates and a recent history of magically being able to kick the can down the road.

My guess is a mild bear market in 2025 with equities struggling and bonds doing better, especially on the short to intermediate side of the equation.  In fact, in years where interest rates decline, this has been the time to own bonds historically as falling yields move inversely to rising bond prices.

You may be saying, but Jeff, you said that about 2024.  That is true, but this is not easy, and my crystal ball is about as good as yours.  We generally try to work with what the market gives us.  We have an opinion on the future (like above), but only move as the market confirms such opinions.  You know, it is a process!

​This is the Federal Reserve Dot Plot or where they think the Fed Funds interest rate is heading.  In case you cannot tell, follow the orange line and/or the blue dots.  
​

​​Next Up, Let's move onto some good news for those affected by Hurricane Debbie.  Your kind, much gentler IRS has granted you a series of filing and payment extensions.

Of course, at the same time they are hiring more auditors to make your lives, I mean the lives of the rich, more miserable.

Here is the skinny: 

Finally, a few financial lessons that I learned over time, but wish I would have put into practice a bit earlier.  You know a few thoughts from my younger me.

1. Start Saving Early: Begin saving and investing as soon as possible. Even small contributions can grow significantly over time due to compound interest. The earlier you start, the better.
2. Create a Budget: Establish a budget to track your income and expenses. Knowing where your money goes helps you make informed decisions and avoid overspending.
3. Avoid Debt: Debt can be a financial burden. Whenever possible, use cash, debit cards, or prepaid cards instead of credit cards. Prioritize paying off high-interest debts promptly.
4. Invest in Financial Education: Learn about personal finance, investments, and money management. Knowledge is power, and understanding financial concepts will empower you to make informed choices.
5. Pay Yourself First: Before paying bills or spending on discretionary items, allocate a portion of your income to savings or investments. Treat your future self as a priority.
6. Live Within Your Means: Avoid lifestyle inflation. As your income grows, resist the urge to increase your spending proportionally. Save the extra income instead.
7. Emergency Fund: Build an emergency fund equivalent to at least three to six months’ worth of living expenses. It provides a safety net during unexpected situations.
8. Invest Wisely: Diversify your investments across different asset classes (stocks, bonds, real estate, etc.). Consider low-cost index funds and long-term strategies.
9. Prioritize Retirement Savings: Contribute to retirement accounts like a 401(k) or IRA. Take advantage of employer matching contributions—it’s essentially free money.
10. Focus on Experiences: While material possessions are nice, prioritize experiences over things. Travel, learn, and create memories—these enrich your life more than possessions ever will.

​Remember, financial planning is a lifelong journey. Start early, stay informed, and adapt as needed. 

I know I am preaching to the choir with most of you, but maybe someone you know could benefit from these ten financial lessons that I preach every day to my girls and Godchildren.

Can we help you with your investments or planning? 

Or why not get a Free Second Opinion on your planning? 

​Just contact us.

I recently have been reading a book by Bob Carlson called Where’s My Money?  The book is all about the exciting topic (sarcasm) of Social Security claiming and getting the most out of this important retirement benefit.
 
One of the topics of the book is the importance of checking your Social Security wage history. Bob Carlson makes the case that you should do so for two reasons:

1. To make sure your wage history is accurate and complete; and
2. To see if there are ways you can influence that history to maximize your Social Security Benefits.

 
Let us start with why your history is important.
 
Your earnings history is a record of your progress toward your future Social Security benefits. The Social Security Administration (SSA) uses your highest thirty-five years of earnings to calculate your benefit amount when you sign up for benefits.
 
If there are errors or omissions in your earnings record, you may not get credit for money you paid in payroll taxes, leading to lower future Social Security benefits.
 
You can maximize your benefits by:

1. Working at least 35 years and ensuring you have at least 35 years of earnings to maximize your benefit calculation.
2. Earn more if possible: Higher earnings contribute to a larger benefit amount.
3. Consider delaying claiming until age 70: Waiting to claim benefits until age 70 can significantly increase your monthly payments.
4. If you are eligible, consider claiming spousal benefits based on your spouse’s earnings history.
5. Know retirement earning limits: Be aware of how working during retirement can impact your benefits.
6. Remember, your Social Security benefits play a crucial role in your retirement planning.

 
After reading this section of the book, I checked my wage history and even developed a spreadsheet to see my 35-year average wage history (very nerd-like indeed). From here, I factored in my expected wages over the next several years to see how they will impact this average wage history.
 
I then logged into the Social Security website and on the home pages is a feature where you can see how future expected income through retirement affects your monthly social security payout.
 
To be honest, my expected income did not really move the needle of either my benefit in the future or my average wage base. My wages have been pretty consistent.
 
However, when I did this same exercise for my spouse, I found a different story. Because she was a stay-at-home mom for a number of years, her social security could be greatly influenced by a few changes to our plan.
 
The most obvious is she is now working in a job paying her more than when she was a stay-at-home mom ($0 in wages). Just by working a few additional years raises her wage base and average wage for those 35 years. Strangely enough, my wife did not like that idea since we had previously agreed she will stop working early in a little over a year from now.
 
In fact, it got quite chilly in the room when we discussed working longer!
 
Another option is to earn more. However, this is easier said than done in many cases.
 
I thought of a third option and that is, if you are self-employed, consider adding your spouse to the payroll so she can boost her Social Security wage record.
 
In my case since I am not a fan of additional taxes, I considered paying my spouse my salary and taking no salary. It would boost her wage record and have minimal impact on mine. The problem is I work in a regulated industry, and I could see myself facing possible scrutiny over wages, work, and licensing (i.e., she is drawing wages and is not a licensed adviser).
 
I ultimately decided to leave well enough and just hope my spouse finds some kind of part-time paying gig that might push her Social Security wage record up further before she reaches her full retirement age (FRA) at 67.
 
Let me quickly demonstrate the math here. Let us suppose your social security record says that based on your current wage record you will receive a benefit of $1,982 at your FRA. However, by raising your wages or working longer before retiring, the SSA projects your benefit can increase to $2,039 per month at your FRA.
 
You might say “who cares, that is just $57 more per month. That does not move the needle, Jeff.
 
However, I want to point out that that $57 per month over an estimated 23 years (to age 90) at 8% (what the SSA pays you in extra benefits for delaying) totals to more than $44,957.67 in extra benefits over that hypothetical period.
 
That in my opinion is real money and worth exploring!
 
Let us know how we can help you.