Quiver Financial News

Stepping into the golden phase of your life should be about cherishing memories and embracing new adventures—not fretting about financial stability!
If you’re inching closer to the big 5-0 or have already celebrated that milestone, there’s a financial tool designed especially for you that could be a game changer for your retirement savings.
Catch-up contributions can significantly enhance your retirement nest egg.
If you’ve ever wondered, “Have I saved enough for retirement?” or “Is it too late to amplify my savings?” we’ve got your answers!
So, let’s dive into the magic of catch-up contributions and how they can turbocharge your retirement savings after 50.
How Do 401(k)s Work?
A 401(k) is a retirement plan sponsored by an employer, designed to allow employees to set aside a portion of their paycheck for retirement. This money is often invested in a mix of assets, including stocks, bonds, mutual funds, and other investment vehicles, offering opportunities for growth over time.
The unique advantage of a 401(k) lies in its tax benefits. There are two main types of 401(k) accounts to consider: Traditional and Roth.
With a Traditional 401(k) plan, participants contribute pre-tax dollars, which reduces their taxable income for that year. While this provides an immediate tax benefit, withdrawals in retirement are taxed, including both the initial contributions and any earnings.
On the other hand, Roth 401(k) contributions are made with post-tax dollars. This means individuals pay taxes upfront, but when retirement comes around, the contributions and their earnings can be withdrawn tax-free, provided certain conditions are met.
401(k) Contribution Limits
The Internal Revenue Service (IRS) sets annual limits on how much can be contributed to a 401(k).
For 2023, individuals under 50 can contribute up to $22,500. The limit goes up each year to help keep pace with inflation.
SECURE Act & Catch-Up Contributions
The passing of the SECURE 2.0 Act brings a slight change to 401(k) savers who are “highly compensated.”
As of 2024, those earning $145,000 or more a year cannot deduct catch-up contributions from their taxable income. Instead, these contributions will receive mandatory Roth treatment—meaning they’ll be post-tax deductions.
What Are Catch-Up Contributions?
Catch-up contributions are additional amounts individuals aged 50 or older can contribute to their retirement accounts beyond the standard annual limit. Recognizing that some people may be lagging in their retirement savings as they approach retirement age, the U.S. Congress introduced catch-up contributions to allow these individuals a chance to bolster their savings.
The concept is straightforward: once an individual reaches the standard contribution limit of their 401(k) in a given year if they are 50 or older, they can keep contributing up to the catch-up limit set by the IRS. This additional allowance can make a significant difference, especially when compounded over several years.
Why 50?
By the time most individuals reach 50, they’ve navigated significant financial commitments, such as raising children, paying for college education, and servicing mortgages. These responsibilities often take precedence over saving for retirement, especially in earlier years. By the time these other commitments begin to taper off, there’s an acute realization of the limited time left to bolster retirement savings.
Allowing increased contributions for those 50 and older acknowledges these challenges. It enables them to accelerate their savings, capitalizing on their often higher earning power in their 50s and 60s. Furthermore, with children often grown up and out of the home, there’s potentially more disposable income that can be directed towards catch-up contributions.
401(k) Catch-Up Contribution Limit
Much like with ordinary 401(k) contributions, there’s also an annual catch-up contribution limit. These limits can be adjusted periodically, making it beneficial to check annually for the most up-to-date information.
For 2023, the catch-up contribution limit is $7,500. This brings the total that 401(k) savers over 50 can contribute in 2023 to $30,000.
Catch-Up Contributions Across Multiple Plans
When it comes to catch-up contributions, 401k plans are the most popular and recognized option. But they aren’t the only ones!
This includes plans like 403(b)s, SARSEPs, SIMPLE IRAs, traditional IRAs, and Roth IRAs. These provisions are not exclusive to one employment sector or plan type; they span from non-profits to small businesses, ensuring that older workers in various fields can bolster their retirement savings as they near retirement age.
Each comes with its own contribution limits. For instance, a 403(b) or SARSEP may have the same catch-up contribution limit as a 401(k). But IRA catch-up limits are usually lower—$1,000 in 2023.
SIMPLE IRA and SIMPLE 401(k) plans could offer catch-up contributions, but they usually come with additional qualifications and restrictions.
What Should I Do When I Turn 50?
Turning 50 is not just a personal milestone but also a pivotal year in terms of financial planning. Once you’re old enough to qualify for catch-up contributions, it’s important to sit down, review your personal finances, and reassess your financial habits and goals.
To help further bolster your retirement, here are some actions you might consider once you become eligible for catch-up contributions:
Review Your Retirement Goals
Opt-In for Catch-Up Contributions
Adjust Your Budget
Stay Informed
Consult with a Financial Advisor
Benefits of Catch-Up Contributions
Making catch-up contributions is a powerful tool for those approaching retirement. Here are some of the primary benefits:
Accelerated Retirement Savings
The primary advantage of catch-up contributions is the opportunity to boost your retirement savings rapidly. Especially for those who might have fallen behind in their early years for various reasons— financial constraints, career choices, personal challenges, etc.—catch-up contributions offer a chance to make up for lost time.
Leveraging Tax Benefits As Retirement Approaches
In the last 10-15 years before retirement, making the most of every financial strategy at your disposal is pivotal.
With catch-up contributions, you’re adding to your savings and tapping into significant tax benefits. By deferring income tax on these additional contributions, you’re optimizing your present-day tax situation, which is particularly beneficial if you’re in a higher tax bracket during these peak earning years. You can use these tax savings to accomplish pre-retirement goals like paying off debt or bolstering your emergency fund.
Moreover, your 401(k) investments continue to grow tax-deferred. This maximizes the compound growth potential of your contributions, allowing your money to work harder for you in the crucial home stretch before retirement. The combined effect means that your retirement savings can see a substantial boost, helping secure your desired lifestyle during your golden years.
Optimizing Retirement Savings with Roth 401(k) Options
If your employer provides a Roth 401(k) option, catch-up contributions become even more strategic.
While Roth 401(k) contributions are made after taxes, their earnings grow tax-free. When it’s time to tap into these funds during retirement, your withdrawals are entirely tax-free.
By utilizing catch-up contributions with a Roth 401(k), you’re effectively hedging against potential future tax increases and ensuring a stream of tax-free income in retirement. This strategy can be invaluable, especially if you anticipate being in a higher tax bracket post-retirement or foresee a taxable income surge in your later years.
By preparing now, you’re positioning yourself for a more financially stable and predictable retirement.
Enhanced Financial Security in Retirement
With extra funds in your retirement account, you’re better positioned to handle unforeseen expenses in retirement, such as medical emergencies or rising living costs. This additional cushion can make the difference between a comfortable retirement and financial stress during your golden years.
Opportunity to Maximize Employer Match
Some employers match a percentage of your contributions up to a certain limit. This is usually a pre-defined percentage of your contributions. By maximizing your own contributions, including catch-up amounts, you could potentially receive more in employer matching funds, further augmenting your retirement savings.
Peace of Mind
There’s a certain peace of mind that comes with knowing you’re doing everything possible to secure your future. By utilizing catch-up contributions, you can approach retirement with greater confidence, knowing you’ve taken proactive steps to strengthen your financial foundation.
And, let’s be honest: Can we really put a price tag on reducing stress?

As an investor, retirement saver, shareholder, or even an LLC member, keeping an eye on the ebb and flow of economic indicators is crucial. Inflation is a major indicator that’s been on everyone’s mind over the past year. After the pandemic, the massive supply chain issues, and the resulting sharp rise in inflation in 2022, the rate finally shows signs of cooling down closer to where we were in March 2021. And that’s going to impact our investments and retirement plans.
Remember, the impact of economic changes like cooling inflation can vary greatly depending on your individual circumstances, the specific investments held within your retirement accounts, and your retirement timeline. Always consult with a financial advisor to understand how these changes may impact your specific situation.
With that said, what does cooling inflation mean for your retirement plans and other investments?
What Does It Mean When Inflation Slows Down?
The inflation rate is derived from the Consumer Price Index for All Urban Consumers (CPI-U, or CPI), a tool used to monitor changes in the price level of consumer goods and services.
In simple terms: when these prices go up, inflation is on the rise; when these prices go down, so does inflation.
Inflation slowing is often perceived as good news for consumers because it means the prices of goods and services are not increasing as rapidly as they were. However, for investors, the story can be more complicated, especially when it comes to how the central bank, or the Federal Reserve, responds.
Understanding the Consumer Price Index
The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. It’s designed to measure changes in the price level of a set (or “basket”) of goods and services typically purchased by households. 
The annual percentage change in a CPI is used as a measure of inflation. In essence, the CPI is a gauge of the cost of living and a barometer for economic policy decisions. They also provide a measure of “core inflation,” which excludes items like volatile food and energy prices. Because these prices could be impacted by weather and other volatile, unpredictable events, they might not be a true reflection of inflation’s impact on consumers.
Federal Reserve’s Role in the Economy
The Federal Reserve, or “the Fed,” is the central banking system of the United States. It’s responsible for implementing monetary policy, regulating banks, and ensuring the financial system’s stability. One of the Fed’s main tasks is controlling inflation while attempting to keep unemployment low.
To curb inflation, the Fed can use a variety of tools. Their most common method is adjusting the federal funds rate. This move can slow economic growth and, in turn, inflation by making borrowing more expensive.
Federal Reserve officials often respond to inflation by rate hiking or raising interest rates. By doing this, they aim to slow down the economy and prevent it from overheating. In 2022, when inflation was high, the Fed began raising the interest rates and did so for ten straight months. 
However, in 2023, with inflation slowing down, these rate hikes are becoming less frequent and could stop altogether.
What This Means for Your Retirement Plan
When it comes to your retirement plan, the type of retirement account you have will largely dictate the impact a slowing inflation could have on it. For instance, those with a defined contribution plan may experience short-term fluctuations in their investment returns due to economic changes.
Here’s a look at how some common retirement plans might be affected:
401(k)s and IRAs
Defined contribution plans (such as a 401k) are often invested in a mix of stocks, bonds, and cash equivalents. With inflation slowing and the potential for lower interest rates, bond investments may offer lower yields. However, equities could potentially benefit from increased consumer spending as prices stabilize. 
Stocks: As inflation slows, companies previously pressured by rising costs may increase their profitability, potentially leading to rising stock prices.
Bonds: When interest rates fall, existing bonds with higher interest rates can become more valuable, possibly leading to capital gains for bond investors. However, the yield on new bonds would be lower. Keep in mind that bonds are fairly nuanced and intricate investments, so please consult with your financial advisor to determine how your bonds are impacted by inflation.
Cash Equivalents: Lower interest rates could mean lower returns on assets like money market funds. However, cash equivalents are considered low-risk investments. So, typically, they aren’t heavily impacted by inflation and interest rates.
Pensions
As a defined benefit plan, pensions promise a set monthly benefit at retirement. The actual payout is not directly influenced by inflation or interest rates, but these factors could impact the health of the pension recipient’s overall financial situation. For instance, pensions don’t typically receive cost of living adjustments (COLAs). So, as inflation rises, the buying power of a pensioner’s defined benefit goes down. As inflation cools, they regain some of that lost buying power.
Savings Accounts
Traditional savings accounts might actually benefit from cooling inflation. Savings accounts don’t typically offer great interest rates. In fact, they usually fall far below the inflation rate. The big difference here is that inflation can erode the value of the U.S. Dollar. So, while cooling inflation won’t offer significant growth in your savings account’s interest rate, it could help improve the value of the dollars saved within your account.
High yield savings accounts offer higher interest rates than traditional savings accounts. Unfortunately, those rates could also fall in a lower inflation environment. In some cases, the interest rates for HYSAs actually outpaced inflation. But this is situational and wasn’t true for all savers. For most, the impact of slower inflation would be similar to traditional savings accounts—the savings in these accounts would maintain their purchasing power better as inflation slows.
Social Security
For Social Security, the impact could be more direct. Social Security benefits are adjusted annually based on the CPI. With last year’s rising inflation, Social Security recipients received one of America’s biggest COLAs of all time. This year, with inflation slowing, this could mean a smaller COLA next year.
Planning Ahead
Despite the potential challenges, there are ways to safeguard your investments and retirement plans from these economic shifts. Diversification is key. It’s crucial to have a balanced portfolio that can weather different economic scenarios, including periods of high or low inflation. 
Moreover, investors need to keep in mind that the economy is cyclical. Inflation goes up; inflation comes down. These are just events in the cycle. Long-term investments are going to lose value periodically. Just keep an eye on your long-term investments to ensure they’re earning more over time. You can always move your money to safer investments during economic downturns to help minimize risk and loss.

Will the rally in equity markets that started in Oct 2022 be nothing more than a Bear Market rally doomed for failure, or is it the start of a new Bull Market for stocks? And what about Oil, Natural Gas, Silver, and Gold? Where could they be headed after 14 months of sideways consolidation? Are we at the start of a new bull cycle in commodities, or will the price action continue to lull investors to sleep with more sideways rocking? Check out what we are watching in the markets for stocks, metals, oil and food commodities.
Not intended to be investment advice. Advisory services offered through Quiver Financial Holdings, LLC. www.quiverfinancial.com 949-492-6900
00:00 Introduction
01:00 What the F did we say in May and was it accurate?
03:18 What is happening NOW in stock markets?
04:22 What are some assets that may look like opportunities?
07:40 Wrap up - What's the bottom line?

Social Security beneficiaries can expect a pay increase next year.
In 1973, Congress introduced cost-of-living adjustments, or COLAs, into law. With COLAs, those receiving Social Security benefits could see their retirement income adjusted each year to match the cost of living. These adjustments came into effect in 1975 and have helped those receiving retirement benefits maintain their buying power in retirement every year since.
Last year, Social Security beneficiaries received one of the biggest COLAs of all time when benefits increased by 8.7%. This was thanks to the sharp rise in the inflation rate (which potentially affected your retirement), which also caused a jump in the cost of living.
Recently, inflation has come down to its lowest rate in several years. Because of this, current COLA estimates are low—currently at 3%.
But what does that mean for those who plan to receive Social Security in 2024?
How do they calculate COLA?
Social Security COLAs are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is published monthly by the Bureau of Labor Statistics. The CPI-W helps us understand the way changes in prices might affect the workers listed: those who earn wages or perform clerical work. To find the COLA, experts compare the CPI-W of the current year’s third quarter with that of the previous year’s third quarter. If they see an increase, they announce a COLA for the following year.
6 things you need to know about COLA 2024
As we near the third quarter of the year, it’s natural for many to speculate what the COLA for 2024 might be. While the news speculates about what that could mean for those receiving Social Security next year, there are a few things you should know about the potential increase.
1. The increase happens automatically
There is absolutely nothing current Social Security beneficiaries must do to receive their COLA increase. Once the Social Security Administration puts it into place, it’s official: your benefits increase that December. Because of the way benefits get paid, you should see the increase reflected in your checks the following January.
2. Last year’s COLA was the biggest in 40 years
This might be a shocking statistic for the Boomers, but the most recent COLA increase of 8.7% was the biggest since 1981. That year, benefits increased by 11.2% to meet the cost of living. In fact, the 8.7% increase was one of the most significant increases in history, being the 4th-biggest increase since the first COLA in 1975.
3. Last year’s adjustment outpaced the cost of living
In 2023, Social Security benefits increased by 8.7%. That amount is higher than the actual cost of living increase reported by the CPI-W every month this year. June’s CPI-W shows only a 2.3% increase over June 2022.
This means some beneficiaries may have received more than they needed this year. Keeping those extra funds in savings could be helpful if next year’s low increase doesn’t meet beneficiaries’ needs. And if the 3% increase proves not to be enough, make sure to check out our money-saving tips for retirees.
Remember that this is all an effort to predict the future; they sometimes make mistakes. For instance, 2022’s COLA increase was misjudged, and Social Security benefits fell short of the actual increase in the cost of living.
4. The total increase isn’t set yet
Because the increase is based on the CPI-W for the entire third quarter, it’s not yet set in stone. For that, we have to wait for the quarter to end on September 30th. The final decision on next year’s COLA should be announced the following month. The current estimate of 3% could change between now and October. In fact, this amount already reflects recent changes: the Senior Citizens League had previously announced an estimate of 2.7%, only increasing it to 3% after June’s CPI-W.
5. Your increase is based on your current income
It’s important to remember that the COLA increases Social Security income by a percentage, not a dollar amount. This means that Social Security benefits increase differently for every recipient. For the average Social Security benefit recipient, a 3% COLA would be an increase of roughly $53.60 per month.
6. A new bill could offer expanded benefits
Senators Bernie Sanders and Elizabeth Warren, along with some of their colleagues, introduced a bill to Congress last year that would expand Social Security benefits even further. It didn’t get passed, so they re-introduced it earlier this year. If it wins approval this time, the bill will give Social Security recipients an additional $200 a month, or $2,400 a year—a welcome addition to those seniors who’ve seen annual cost-of-living increases fall short.
As written, the bill would also help Social Security remain solvent for at least the next 75 years, helping to guarantee retirement benefits for nearly a century.
Another bill, introduced earlier this year by Representative John Larson, would permanently increase Social Security benefits by 2% for all recipients and adjust COLAs to more accurately reflect the cost of living increases faced by seniors.
As of today, neither of these laws has passed yet. However, similar bills are introduced almost every year. So, if these don’t pass, Congress will likely try again next year.

Retirement planning is a journey that can start with your first-ever paycheck and continues until you retire. Making the right decisions during this journey is crucial, as it determines the comfort and financial security you can expect in your golden years.
Despite the wealth of information available, numerous retirement planning mistakes plague investors, potentially jeopardizing their financial futures. That can make navigating the complex world of retirement planning can feel understandably overwhelming.
However, by being aware of common mistakes and seeking guidance from a knowledgeable financial advisor, you can avoid pitfalls and optimize your retirement savings. Remember, the sooner you start saving and planning for retirement, the more comfortable and secure your retirement years can be!
The Top 3 Retirement Planning Mistakes
Here are three of the biggest mistakes I’ve seen people make while planning their retirement:
The “Red Zone” Mistake
One of the biggest retirement planning mistakes someone can make is being too risky with their retirement investment allocation within five years of retirement. We call this period the “red zone” of retirement planning—the five years before and after retirement. During this time, investment losses or poor returns can have devastating impacts. This can increase the fear of outliving one’s savings among retirees.
A real-world example of this occurred in 1999, during the height of the dot-com craze. I met a man we’ll call Tom. Tom was then three years from retirement. He had amassed $1.8 million in his 401(k). It was a comfortable nest egg that gave him a 95% chance his retirement savings would last until age 105. Unfortunately, he did not reduce the risk within his investment allocation when his 401(k) was at this level. The dot-com bubble burst, and the stock market plummeted. Tom’s 401K dropped from $1.8 million to $800,000. Suddenly, the likelihood of his savings lasting to age 90 fell to just 45%. A small allocation change from riskier stock assets to a stable value fund could have spared Tom this agony.
To sidestep a similar fate, performing regular financial checkups and reviewing your retirement investment allocation quarterly is imperative. Adjusting your allocation based on larger market cycles and leaning towards a more conservative approach when markets are at high levels or when you’re nearing retirement is advisable. There’s an old Wall Street saying: “Bears make money, Bulls make money, Pigs get slaughtered.” Tom’s story underlines the importance of avoiding excessive risk at inopportune times.
Ignoring Employer Matching
Another common retirement planning mistake is not taking full advantage of one of the most lucrative benefits of an employer-sponsored 401(k) plan: employer matching.
Employer matching is essentially “free money” that can significantly boost your retirement savings. With such a plan, your employer contributes their own money to your 401(k) plan. It’s called an “employer match” because your employer’s contribution typically matches your contributions up to a pre-determined limit.
If your employer matches your 401(k) contributions, ensure you contribute enough to maximize this benefit!
The Tax Trap
Retirement accounts, such as traditional 401(k) accounts and IRAs, offer tax-deferred growth, which means you don’t pay taxes on your contributions until you withdraw the funds at retirement.
But there’s always a trade-off. If you make pre-tax contributions, such as with a 401(k), then your retirement distributions are considered taxable income. However, you can receive tax-free distributions if you make post-tax contributions, such as with a Roth IRA.
So the question is: when can you most benefit from tax deductions? Now, or later? If you make pre-tax contributions, you can reduce your tax burden immediately. However, you might have higher taxes in retirement. Alternatively, the opposite happens if you make post-tax contributions: you’ll have higher taxes now and potentially lower taxes in retirement.
If you plan to be in a higher tax bracket when you retire, any tax reduction could be beneficial for maximizing your retirement income. Moreover, paying those taxes now (while you’re in a lower tax bracket) could increase your lifetime tax savings!
It’s a personal choice and depends entirely on your plans for your career and retirement.
Other Common Retirement Planning Mistakes
Here are some other common mistakes retirement planners make that can reduce their retirement income:
Overlooking Catch-Up Contributions
If you’re over 50, you can make “catch-up contributions” to your retirement accounts, allowing you to save more as you approach retirement. Ignoring these can mean missing out on thousands of dollars in additional savings.
Neglecting the Impact of Social Security
Social Security benefits play a critical role in most people’s retirement income. Understanding how the full retirement age impacts your benefits and when to start taking these benefits can significantly affect your overall retirement income.
Deferring the Start of Your Saving
One common mistake people make is delaying retirement savings, often believing they have plenty of time. However, the power of compound interest means that the earlier you start saving (even if it’s only small amounts), the more you can accumulate by the time you retire. Don’t put off until tomorrow what can be started today. Your future self will thank you!
Misunderstanding the Impact of Inflation
Many people forget to factor in inflation when planning for retirement. Inflation can erode the purchasing power of your money over time. If your retirement savings aren’t growing at a rate that keeps pace with inflation, your money may not stretch as far as you hoped when you retire. To mitigate this, consider investments with real returns that outpace inflation.
Forgetting about Healthcare Costs
Healthcare is a significant expense for most retirees. Yet, many people overlook these costs when planning for retirement. Creating a budget that factors in the latest estimates for healthcare costs can help you prepare for a more accurate retirement income.
Relying Solely on Social Security
Many people assume Social Security will provide enough income for their retirement years. However, after retiring, Social Security benefits only replace about 40% of an average wage earner’s income. Remember that Social Security is often at the center of governmental budget disagreements, and its future is constantly in flux. Therefore, it’s important not to rely solely on Social Security but to have other sources of retirement income as well.

Navigating the world of financial advice can be a bit like stepping into a labyrinth. Different titles, duties, and standards can cloud the waters and make it difficult to understand who to trust with your financial future. Two terms that often confuse people are “financial advisor” and “fiduciary advisor.”
While a financial advisor and a fiduciary advisor must both follow a code of ethics, they’re held to different legal standards of conduct that can impact the type of advice they can provide.
By understanding the key differences between fiduciary financial advisors and other types of financial professionals, you can make more informed decisions. Remember, your financial well-being is at the heart of these standards of conduct.
It might come as no surprise that this topic is near and dear to me! So let’s demystify these terms, explain the key differences, and outline how to find a fiduciary financial advisor.
What is a Fiduciary Financial Advisor?
As the name implies, a fiduciary financial advisor (or simply, a “fiduciary”) operates under the fiduciary standard. This means they are legally obligated to act in the best interests of their clients. They are required to prioritize your needs over their own.
A fiduciary must also actively avoid potential conflicts of interest and always provide clients with transparent, clear, and concise information about their investments. This includes the duty to disclose any fees they charge and present all options available.
Fiduciary advisors typically offer a wider selection of investment options because their primary goal is to keep their client’s best interest in mind, not to sell a particular product. For instance, even if they use model portfolios, they might still prefer to completely customize each portfolio to match their client’s best interest. This distinction can make all the difference in crafting a well-rounded, flexible financial plan.
How Does a Fiduciary Differ from a Financial Advisor?
At first glance, “fiduciary” and “financial advisor” might appear interchangeable. After all, isn’t a financial advisor also supposed to act in your best interest? The key difference lies in the standards they are required to adhere to.
“Financial advisor” is a blanket term encompassing various types of advisors. They can all offer advice on how to invest your money and provide regular financial checkups. Some of these advisors are fiduciaries, while others are not. Knowing this distinction is crucial as a consumer, as the type of advisor you hire will significantly impact the advice you receive.
For instance, some financial advisors operate under a Broker Dealer, earning commissions instead of fees. They are held to a regulatory standard known as “suitability.” Under the suitability standard, the financial advisor is not a fiduciary and only needs to consider whether the investment product they are selling suits the client, reflecting the client’s risk tolerance and time horizon. Critics argue that this standard leaves room for conflicts of interest.
Working with a fiduciary advisor offers the confidence that your financial advisor will always act in your best interest with their advice. However, financial advisors employed by insurance companies or broker-dealers may have a limited product scope they can offer clients, which could be a disadvantage for you as a client.
Verifying Your Advisor’s Fiduciary Status
So how can you ascertain if your financial advisor is indeed a fiduciary? It’s not as complicated as it might sound. The most direct way is to ask them outright. However, it’s also advisable to verify the information they provide. 
You can do this by visiting FINRA’s Broker Check website, which maintains a database of licensed financial advisors. You can also check which regulatory agency your advisor is registered with—advisors registered with the SEC or a State will typically be held to a fiduciary standard.
Another way to ensure that your advisor acts as a fiduciary is to hire a Registered Investment Advisor (RIA). RIAs are regulated by the SEC or state securities regulators and are held to the fiduciary standard. Additionally, Certified Financial Planners (CFP) are required to follow the fiduciary standard.
Lastly, you can ask your advisor for their “Fiduciary Disclosure,” which they must provide to clients.
Weighing the Costs: Fiduciary vs. Financial Advisor
When it comes to costs, there is no straightforward answer. Every advisor can charge their fees differently. Some may charge a management fee that is a percentage of the assets they manage, while others may charge a retainer or hourly fee. There isn’t typically a price difference between fiduciary and non-fiduciary advisors, but how the advisor is compensated could affect the price you end up paying.
Regardless of the specific structure, understanding how your financial professional charges for their services is essential to the decision-making process. Always ask for a clear explanation of any fees to avoid unpleasant surprises.
Breach of Fiduciary Duty
A fundamental cornerstone of fiduciary relationships is the advisor’s responsibility to always act in their client’s best interests. When a fiduciary advisor fails to meet this high standard, they may be guilty of a breach of fiduciary duty. Such an infraction can have severe consequences, both for the client and the advisor. It can mean significant financial loss or missed investment opportunities for the client. For the advisor, a breach can lead to legal repercussions, registration loss, and reputation damage.
In contrast, a financial advisor operating under the suitability standard does not face such legal obligations. They must ensure that their investment advice suits the client’s risk tolerance and financial goals.
Finding a Fiduciary Financial Advisor
Now that you understand what a fiduciary financial advisor is and the benefits they offer, you might wonder how to seek one out. Of course, a quick internet search can help you find fiduciaries near you. But to find the fiduciary best suited to you, you might consider taking a few extra steps:
1. Identify Your Financial Goals
Before you start your search, it’s essential to understand your financial goals. Are you planning for retirement, seeking to grow your wealth, or protecting your assets for future generations? Identifying your financial objectives will help you choose an advisor who specializes in areas relevant to your goals.
2. Use Online Directories
Once you have a clear idea of what you want, use online directories to find fiduciary financial advisors. In addition to the resources mentioned above, the National Association of Personal Financial Advisors (NAPFA) and the Certified Financial Planner Board of Standards (CFP Board) can help.
3. Look at Their Credentials
A fiduciary financial advisor often holds specific credentials, such as CFP or Chartered Financial Analyst (CFA). These credentials indicate they have undergone rigorous testing and adhere to high ethical standards, including acting as a fiduciary.
4. Ask the Right Questions
When you meet with potential advisors, asking the right questions is essential. Consider asking them questions about their:
Registration Status
Code of Ethics and legal standards
Compensation structures
Fees
5. Verify with Regulatory Agencies
As mentioned above, review online resources to double-check their status. While I don’t expect your chosen financial advisor to lie, it’s easy enough to check upfront before you relinquish control of your financial future.

The goal of The Next Investment Wave is to help you identify potential investing trends early.  If we were to use a baseball analogy, the meat of most investment moves is found near the bottom of the second inning or the top of the third inning. Our research over the past 6 months has caused us to believe that the next investment wave that investors may be able to lean into to create their next round of wealth may be found in the realm of commodities and basic materials.
With any long-term thesis, there needs to be both fundamental and technical factors present in order to fuel potential growth.  In this issue of The Next Investment Wave, we will explore why investors looking for a secular growth trend may want to keep fossil fuels and other commodities on their radar.
Short Term vs. Long Term
Oil prices have plunged by approximately 40% from their 2022 highs, causing doubt among many investors in the oil market bull thesis.  
The recent crude price decline reflects a tug-of-war underway between bullish structural factors and bearish temporary factors, causing us to ask, is this a buying opportunity within a longer-term structural bull market or the beginning of significantly lower oil prices led by reduction of demand as a result of a looming recession?
In the short term (1 week to 2 months), the tea leaves that many oil traders watch, like oil inventories, refining margins, and whether oil prices are in contango or backwardation do appear to give the impression that oil prices in Q1 of 2023 will be flat or possibly down slightly.  
Strong sentiment, increasing demand, geopolitics, and most importantly, supply-side issues that will take many years to fix.
Sentiment – Wall Street is Bullish
Many Oil market analysts believe oil prices are going higher.  For example, Jeff Currie, the global head of commodities for Goldman Sachs, has a $110 forecast for Brent Crude in 2023, while rival investment bank Morgan Stanley agrees, expecting Brent to top the $110 level by the middle of 2023.  
These analysts note several catalysts as dynamics in demand, supply, and geopolitical circumstances arise.
Demand Dynamics
Morgan Stanley probably summed up the demand dynamics best by stating, “We remain constructive on Oil prices driven by recovering demand from China reopening and aviation recovering amidst constrained supply due to low levels of investment, a risk to Russian supply, the end of SPR releases and slow down of U.S. Shale.”  
Being one that has traveled quite a bit the past few months, I can personally attest to the recovery in aviation as each and every airport I have been through has been very busy.  
While the airports and roads seem just as busy as they were prior to the Pandemic, it also seems China could be the biggest catalyst in 2023, as highlighted by the Wall Street Journal “The pent-up demand from China is going to be enormous,” according to comments by Energy Aspects director of research Amrita Sen.  Continuing with “China could swing demand by at least a million barrels a day, and that could easily make the difference between an Oil forecast of $95 to $105 versus $120 to $130.”
“Prior to the pandemic, China was the world’s third-largest consumer of liquified natural gas, second-largest oil consumer, and largest electricity consumer. Resumed manufacturing activity and overall energy use in China could help offset fears of recession-driven demand destruction” 
While demand seems poised to increase through 2023 (assuming there are no or low recession effects), it is the supply dynamics that seem to be part of the thesis that may cause a longer secular bull market in fossil fuel prices.
Supply Dynamics 
Due to poor energy policies of the past, there have been supply-side issues building for many years, and those issues don’t look to be changing anytime soon.   We see a future in which oil supply is constrained for years, necessitating higher prices and lower demand than would be possible during the oil market of the past decade, when supply was abundant. The bull case for oil rests on the constrained supply outlook, which will be evident in a supply deficit that surfaces whenever prices are low and the quantity of oil demanded by consumers ticks above the level of available supply.
Most oil companies plan to keep a relatively firm lid on output and investment spending for new production.  For example, Chevron plans to boost its capital budget by 25% next year to $17 billion; most of that increase is due to inflation and a ramp in lower-carbon investment spending.  Likewise, ExxonMobil plans to boost capital spending to $23 billion from $22 billion. However, it expects its production will remain flat on a per-day basis.  
Without a major demand disruption due to a large recession, demand seems poised to rise amid continued tight supplies. 
Geopolitics
The geopolitics of Oil has always been a hotbed of debate and speculation, and now it seems that many past issues are approaching an inflection point over the next 5-7 years.  
In our opinion, one of the cornerstones of Oil influence is the Saudis, so let’s start the geopolitical discussion there.  For decades Saudi Kings maintained political balance by doling out vital power positions to separate, carefully chosen successors. Positions such as Defense Minister, the Interior Ministry, and the head of the National Guard. Today, Mohammed Bin Salman controls all three positions. Foreign policy, defense matters, oil and economic decisions, and social changes are now all in the hands of one man.   The 2017 coup and rise of prince Mohammed Bin Salman (MBS) was significant in that MBS was backed by the Public Investment Fund (PIF), a fund comprised of trillions of dollars supplied by globalists Carlyle Group (Bush Family), Goldman Sachs, Blackstone, and Blackrock.  MBS gained the favor of the globalists for one big reason. He openly supported their “Vision for 2030”, a plan for the dismantling of “fossil fuel” based energy and the implementation of carbon controls.  In exchange for their cooperation, the Saudis are given access to ESG-like funding as well as access to AI advancements.
Also note, over the past few years, relationships between Saudi, Russia, and China have grown very close.  Arms deals and energy deals are becoming the mainstay of trade, and this has also led to a quiet distancing of the Saudis using U.S. dollars to trade oil.  Recently, the dominoes seemed to have been set with Saudi Arabia announcing at Davos that they are now willing to trade Oil in alternative currencies to the dollar. 
Not to mention from an age perspective, the current Saudi regime is at an age they could be viewing the next few years as their last hoorah to make as much money as they can from traditional energy sources before the world evolves and incorporates more and more energy alternatives.
Conclusions
The importance of the Saudi announcement and willingness to trade oil in alternative currencies to The Dollar, along with the continued strengthening alliance between East vs West, can not be overstated; this is the beginning of a global shift in reserve currencies similar to when The British Sterling imploded many decades ago which resulted in the rise of The Dollar to take its place as the “global petro currency.”
The consequences of this could be very devastating to the US economy. The ability to defer inflation by exporting it overseas is a superpower only the US enjoys. Currently, the Fed can print money perpetually if it wants to in order to fund the government or prop up US markets, as long as foreign central banks and corporate banks are willing to absorb dollars as a tool for global trade. If the dollar is no longer the primary international trade mechanism, the trillions upon trillions of dollars the Fed has created from thin air over the years will all come flooding back to the US through various avenues, and hyperinflation (or hyperstagflation) could be the result.
The effects of the dollar decline may not be immediately felt or become obvious for another year or two. What will happen is consistent inflation on top of the high prices we are already dealing with. Meaning the Federal Reserve will continue to hold interest rates higher, and prices will barely budge, or they may climb in spite of monetary tightening.
All the while, the mainstream media and government economists will say they have “no idea” why inflation is so persistent and that “nobody could have seen this coming.”
While this can sound dire and cause you to reach for a bottle of ludlum to numb the pain, there are and will be significant investment opportunities for those that are savvy enough to see the changes that are taking place in front of us.

Safeguarding your retirement savings in today’s economic climate requires more than a casual approach. Complacency may be the most significant risk to your financial security, especially for retirees. With potential changes in business cycles and an uncertain future, inactivity could be the proverbial deer in the headlights, putting your retirement plan at risk.
That means taking proactive measures to protect your retirement savings to ensure a worry-free post-retirement life. The importance of being involved with your retirement money can’t be overstated. We’ve all spent years dreaming about our dream retirement—and with the proper planning, that’s precisely what we can get.
Typically, that means finding the right balance of safety, growth, and income rates to create a healthy retirement account.
So let’s talk about how to keep retirement money safe!
The Risks of the Current Environment 
Retirees may find the current financial environment challenging depending on their investment temperament. The conservative investor looking for stability and some yield for their savings might struggle with low-interest rates on savings plans. Add in market volatility and inflation, and even a seemingly stable investment might fail to keep pace, reducing the future purchasing power of your retirement income. Recently, there’s been the added fear of “What if my bank fails?”
On the other end of the spectrum, aggressive investors might feel like they’re treading water. Those with a diversified portfolio of stocks, bonds, and mutual funds might have noticed stagnant growth or even losses in the past year. The fear of future financial security may lead to rash decisions that could harm long-term goals.
Engagement and Education: Your Armor Against Uncertainty
The best defense against these challenges is engagement and education. Investing an hour daily to deepen your investment strategies and knowledge can yield considerable benefits. There are many resources, from YouTube and blogs to podcasts, designed to help you learn how to achieve the highest yield with the lowest risk. However, while you broaden your financial horizons, remember to be discerning and a bit cynical. Not all information is reliable, and some may even lead to financial harm.
Building Your Network of Advisors
While you educate yourself, consider building a network of advisors. These individuals can offer second opinions, answer your queries, and provide insights into your investment strategies. This network could include your tax consultant, a financial advisor, an investment club, or friends successful at investing. I recommend the “trust but verify” approach. This helps keep your mind open while also introducing a measure of risk mitigation to your decision-making process. 
Proactive Steps to Protect Your Retirement Savings
Education and understanding where you stand financially are essential to ensuring a healthy retirement income. But what does that look like?
When looking to combat financial complacency, consider taking the following proactive steps:
1. Review Your Savings Account Yield: In the high-inflation economic environment of 2023, compare your savings yields to inflation. If your yields are too far below inflation, you lose more than you earn! So, if your bank savings or CDs earn less than 4%, it’s time to shop around for a better yield.
2. Monitor Your Monthly Expenses: Creating and following a budget is always a sound financial decision! Scrutinize your expenses and eliminate unnecessary costs or forgotten subscriptions. Every penny saved contributes to your retirement security. With the rising cost of day-to-day living expenses, every little bit helps!
3. Strategize Your Required Minimum Distributions (RMDs): If you’re withdrawing RMDs from your IRA, be thoughtful about which accounts or investments to draw from. Selling an investment with a temporary dip could hamper the recovery rate of your portfolio.
4. Become a Tactical Investor: Consider investing strategically. With market volatility high, it’s critical to understand where we are in the business cycle. We’re in a peculiar phase of that business cycle that could last another year. Those with more savings than they need may be able to ride this phase out. But if you need your savings for future healthcare or life expenses, this is the time to deepen your knowledge and expand your network of experts. The goal is to position your savings for the best risk/reward ratio possible.
Timing is Everything
First, if you’re not retired and haven’t started saving for retirement, start! The best time to start saving is yesterday—the second best time is today. It’s likely your employer offers a 401(k) or similar plan, and signing up is typically a simple process.
For those who have already retired or are preparing to, don’t forget to consider your full retirement age (FRA). While you can start receiving Social Security benefits if you retire early, you won’t receive your full benefit. However, delaying Social Security until reaching FRA guarantees full benefits. Furthermore, these benefits progressively increase each year you wait beyond your FRA.
Timing your RMDs is also important. Yes, Required Minimum Distributions are required for 401(k)s and traditional IRAs. But when you begin taking RMDs is based on your age, not your retirement status. In fact, the age requirements for RMDs were recently extended! The longer your plans remain untouched, the more your investments can grow. So, if you can afford to, consider waiting until the legally-required age for RMDs.
Explore Your Options
When it comes to saving for retirement, you have many options. Just like a diversified portfolio is essential for maximizing investment earnings, a diversified selection of retirement plans can help optimize your retirement income.
A good mix of workplace retirement plans (401k), defined contribution plans (IRA, etc.), and defined benefit pensions (if available) can offer diverse investment options, income sources, and tax benefits.
For instance, contributions to a traditional 401(k) or IRA are tax-deductible, meaning they reduce your taxable income for the year you make the contribution. However, when you start making withdrawals in retirement, those will be taxed as ordinary income.
On the other hand, contributions to a Roth IRA are made with after-tax dollars. While this offers no immediate tax benefits, your money can grow tax-free. In addition, you won’t owe income tax on distributions you take during retirement.

Inflation is an economic phenomenon that can stir stress, particularly among retirees. As the costs of goods and services rise, seniors often wonder how to cope with inflation effectively.
Coping with inflation can be challenging, especially in the short term. It's important to remember that inflation, like all economic phenomena, is cyclical. A robust plan, along with some lifestyle adaptations, can go a long way in helping retirees deal with inflation effectively.
Staying informed, reducing costs where possible, investing wisely, and managing your information intake can significantly lessen the burden of inflation. By keeping an eye on the long term and remembering that periods of high inflation are usually followed by deflation, you can weather the inflation storm and stay on track with your financial goals.
Understanding Inflation
Inflation occurs when the price of goods and services in an economy increases over time. While it's a sign of economic growth, it can lead to higher prices at the grocery store, at the gas pump, and in many other aspects of daily life. This can understandably strain anyone's monthly budget—especially for retirees with a fixed income or who have chosen to "age in place."
Inflation is influenced by several factors, such as supply constraints, central bank policies (including those of the Federal Reserve), and overall economic growth. Understanding these factors can help in the formulation of an effective inflation-fighting strategy.
Recreating the Past to Fight Inflation
One direct approach to coping with inflation is to harken back to childhood days when your parents would encourage conservation by urging you to turn off the lights or adjust the thermostat. Today, these seemingly small practices can translate into significant savings, particularly during high inflation. 
Reducing spending on inflation drivers such as food, energy, and transportation can be an effective defense. Consider creating a garden, relying more on public transportation, or even building a chicken coop to cut costs in the long term.
Of course, not all of those are options for everyone. But most people likely have small costs able to be cut from the budget. Enough of those cuts can add up over time. Every penny saved in these areas can reduce the inflationary impact on your daily life.
Investing to Cope with Inflation
For retirees with assets or a healthy savings account, investing in inflating sectors can be a fruitful strategy to cope with inflation. If industries such as energy, mining, or food production are causing inflation-induced stress due to higher prices, consider investing in them. 
These sectors are often home to dividend-paying companies. Investing in them can generate a steady cash flow that could help offset the inflationary pressure on your budget. While interest rates may fluctuate, and investing always carries some level of risk, a well-planned investment can aid in combating the financial effects of inflation. Of course, a financial advisor can help you develop a strategy anytime you consider investing.
Mindfully Managing Information Consumption
Another crucial aspect of dealing with inflation lies in maintaining a level-headed approach. A significant part of this is managing where your information comes from. Media outlets may hype the rhetoric to grab attention, sometimes leading to a distorted view of the situation.
Remember, economic phenomena like inflation are part of the natural ebbs and flows of the economy. Although we are currently experiencing a period of rising prices, it's essential to remember that inflation will eventually find a point of resistance, often followed by a period of deflation. 
Preparing for Deflation
While it's important to have strategies to fight inflation, it's equally crucial to prepare for the next phase: deflation. Deflation, the reduction in the general level of prices in an economy, often follows periods of high inflation. 
During deflation, goods and services become less expensive, presenting an opportunity to make necessary purchases at lower prices. By staying calm and focusing on the long-term view, you can take full advantage of these lower prices when they occur. This can help average out your expenditures over time.
Adapting Lifestyle Choices
Reviewing lifestyle expenses and making adjustments is one of the best money-saving tips for retirees.
Minor adjustments to your lifestyle, like cutting back on discretionary expenses, can help you cope with inflation. Do you have a streaming service you rarely use or a gym membership that's gathering dust? Eliminating these non-essential costs can free up more of your budget to accommodate higher prices for essential goods.
Additionally, consider using a credit card that offers rewards or cash back. If used wisely, credit cards can become a tool that helps, rather than hinders, your budget during inflationary periods.
Exploring Additional Tactics for Reducing Inflation's Impact
While the strategies above provide a robust plan for dealing with inflation, there are more avenues worth exploring when it comes to reducing inflation's impact on your retirement budget.
Adopting Cost-Saving Habits
Everyday habits can play a crucial role in reducing the effects of inflation. This goes beyond turning off the lights and conserving energy. It extends to grocery shopping, where buying in bulk, using coupons, or choosing store brands over name brands can lead to considerable savings. 
Re-evaluating your service providers can also bear fruit. Shop around for the best deals on your phone, internet, or cable TV services. You might find that switching providers or renegotiating your contract terms could lead to lower monthly bills.
Higher Interest Rates and Your Investments
Inflation often influences central banks, like the Federal Reserve, to raise interest rates to slow the economy and curb inflation. These higher interest rates can have a significant effect on your investments.
For bond investors, higher interest rates can mean lower bond prices. However, the higher interest also means that newly issued bonds will offer a higher yield, which could compensate for any capital losses over time.
For stock investors, higher interest rates can impact companies' borrowing costs, potentially affecting their profitability and, subsequently, their stock prices. However, companies that can pass higher costs to their customers may fare better in inflationary times.
One investment that tends to do well during inflationary periods is real estate, as rising prices often lead to increasing home values. For retirees who own their homes, this can increase their net worth.
Looking Beyond Traditional Savings Accounts
With higher interest rates, traditional savings accounts may appear to offer more attractive returns. However, other types of accounts like Money Market or High-Yield Savings Accounts could provide even better returns, helping you to preserve your purchasing power during inflationary times.

Navigating through the retirement planning process can be daunting. It requires some math, some best guesses, and a lot of self-reflection.
One aspect of retirement planning sometimes gets overlooked: timing. The age you retire can impact your retirement and how you plan for it.
I’ve gotten the question many times: “When is the best age for retirement?” As always, the answer can vary depending on the individual and their retirement goals. The answer requires considering the nuances of receiving social security benefits, the implications of working longer, economic factors (such as inflation), and the delicate balance between retirement savings and retirement income.
However, some common guidelines and considerations can help you determine what works for you and your situation.
Today, I want to delve into the topic of Full Retirement Age (FRA), outlining three best practices to maximize your Social Security benefits and highlighting two common pitfalls to avoid.
Three Best Practices for Maximizing Social Security Benefits
How can you maximize the benefits you receive from Social Security? Believe it or not, timing can make all the difference. So, if you want to get the most out of your Social Security, keep in mind the following best practices:
1. Delaying Retirement to Reach Full Retirement Age
One of the most significant considerations when contemplating early retirement is Social Security. Did you know that your benefit amount directly correlates with your birth year and the age at which you start receiving benefits? For example, people born in 1960 or later reach full retirement age at 67.
An essential best practice is to delay receiving Social Security until you reach your FRA to receive 100% of your benefit. If you start receiving benefits before your FRA, your monthly benefit will be a percentage that’s less than the FRA amount.
Consider delaying payments even beyond FRA to give your retirement account an additional boost. Ideally, you’d want to delay Social Security until you reach age 70. This tactic may earn you ‘delayed retirement credits,’ an increase in your Social Security benefit amount by an impressive 8% per year every year you delay receiving benefits until age 70.
2. Maximizing Your Income
The second best practice revolves around your earnings. Your Social Security benefit amount is calculated using your highest 35 years of earnings. If you’ve worked fewer than 35 years, 0’s get averaged in, potentially reducing your benefit. So, it’s beneficial to your retirement income to work at least 35 years or longer to maximize your Social Security benefits. A longer working tenure could also help beef up your 401(k) plan.
3. Coordinating Benefits for Couples
If you’re married, coordinating benefits with your spouse can help maximize your retirement income. For instance, one spouse may choose to delay receiving benefits until age 70, while the other spouse claims at an earlier age. This strategy allows the couple to benefit from the higher monthly benefit amount resulting from delayed retirement while still having some income from Social Security in the interim.
Two Common Mistakes to Avoid
The above best practices can help you remember what to do when determining when to retire. But what should you not do? Here are two of the most common mistakes you should avoid when deciding when to receive retirement benefits:
1. Don’t Get Penalized by the “Earnings Limit”
If you choose to claim Social Security benefits before reaching FRA while continuing to work, beware of the “earnings limit.” This earnings limit changes each year. If you earn more than this limit, it may reduce your benefits. This trap can significantly impact your retirement savings if you’re not careful.
2. Understand the Difference Between Social Security Benefits and Medicare
A frequent misconception conflates the timeline for applying for Social Security benefits with applying for Medicare. Many people think that if they’re not filing for Social Security until age 70, they don’t need to file for Medicare until that age. However, this can lead to costly late enrollment penalties, which can be as high as 10% per year.
To avoid these hefty penalties and maintain your health insurance, you must apply for Medicare at age 65 regardless of when you plan to retire or file for Social Security benefits.
And don’t forget: purchasing a Medicare supplement is one of our top money-saving tips for retirees!
Conclusion
To wrap up, your Full Retirement Age is more than just a number; it’s an integral part of your retirement planning. Whether you’re contemplating early retirement or delaying it until 70, understanding the intricacies of Social Security and Medicare can make a world of difference. It’s about building a financially secure future where your retirement savings and income effectively support your lifestyle and health insurance needs.