EPISODE 127 – Are You Taking More Investment Risk Than You Think?

If you have been watching your accounts climb over the last few years, it is easy to assume your investments are “working” and your risk level is fine. Markets are up, statements look good, and nothing feels urgent.

The problem is that most people only discover how much risk they are actually taking when the market turns in the wrong direction. By then, the experience can be painful enough to cause emotional decisions that derail a sound financial plan.

In Episode 127 of the Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie and Rob Hoxton talk about one of the most common blind spots they see: the gap between how much risk you are comfortable taking and how much risk you are actually taking in your portfolio.

This episode is a practical guide for anyone who wants to understand their risk exposure before the next downturn arrives.

Why Risk Feels Different When Markets Are Up

Archie frames the discussion around two core questions:

  1. How much risk are you truly comfortable taking
  2. How much risk are you actually taking right now

If you do not have clear, data based answers to both, you are at higher risk of being surprised during the next bear market. Surprise and fear are usually what drive investors to sell at the wrong time.

The goal is not to eliminate risk. That would leave you exposed to inflation and short of your long term goals. The goal is to align your risk exposure with your financial plan and your emotional tolerance, so you can stay invested through both good and bad markets.

Systematic vs Unsystematic Risk: What Are You Really Exposed To

The episode walks through two major types of investment risk:

  • Unsystematic risk
    This is the risk tied to a specific company, bond issuer, or sector. If you hold a single stock and that company runs into trouble, your portfolio can suffer badly. Diversification reduces this type of risk by spreading your money across many holdings, industries, and regions.
  • Systematic risk
    This is the risk of the entire market or system. In a true bear market or financial crisis, nearly all stocks fall together. You cannot diversify this risk away completely. You manage it through asset allocation, time horizon, and behavior.

A concentrated portfolio in just a handful of positions may look fine in a rising market, but it is exposed to both kinds of risk at once. A broadly diversified portfolio, built around your plan and withdrawal needs, behaves very differently when volatility returns.

How Much Could Your Portfolio Drop

One of the most practical points in the conversation is that every investor should have at least a ballpark answer to a simple question:

“If we experienced another 2008 style downturn, roughly how far might my portfolio fall”

Most investors, and many advisors, do not have a precise answer. They may speak in generalities like “moderate risk” or “balanced allocation,” but they have not quantified what that means in real dollar terms.

Rob and Archie describe the value of using planning and risk tools that:

  • Analyze your actual mix of funds and holdings
  • Estimate potential downside in severe historical scenarios
  • Compare that with your stated comfort level and goals

You may discover that your portfolio is much riskier than you thought, or that it is actually too conservative to meet your retirement objectives. Either way, you are better off knowing before the next storm, not during it.

Balancing Risk, Return, and Your Life Goals

The episode also emphasizes the tradeoffs involved in dialing risk up or down:

  • If you take very little risk, your expected return may only be a few percent per year. That may require working longer, saving more, or spending less.
  • If you take very high risk, you might see higher long term returns, but also deeper temporary losses that are hard to live through, especially near or in retirement.

The right balance depends on your age, savings, time horizon, and the lifestyle you want to support. A realistic financial plan needs to answer two questions together:

  • What rate of return do I need to reach or sustain my goals
  • What level of downside volatility can I reasonably accept along the way

Those answers then drive your asset allocation and diversification choices, rather than gut feelings or headlines.

Why Now Is the Time To Check Your Risk

We are currently several years into a strong market. That is exactly when it pays to pause and ask:

  • Has my risk level crept up as markets have risen
  • Am I relying on past performance without understanding downside risk
  • Does my portfolio still match my time horizon and withdrawal plans

Archie and Rob point out that corrections of 10 percent tend to happen every couple of years, and bear markets of 20 percent or more tend to show up every five to six years. They are not rare, and they are not permanent, but they are inevitable.

Getting clear on your risk profile now can prevent panic and regret later.

Final Thought: Do You Know Your Real Risk Profile

Ignoring risk does not make it disappear. It only makes the next downturn more stressful.

Taking the time to understand:

  • How your portfolio is currently invested
  • How it might behave in bad markets
  • Whether that aligns with your goals and comfort level

is one of the most important steps you can take for long term financial confidence.

You do not have to become an investment expert to get this right. You simply need a clear plan, honest expectations, and a risk level that you can live with when markets are rising and when they are falling.

If you are not sure whether your investments match your comfort level and retirement goals, now is the time to find out.

Use Hoxton Planning & Management’s Investment Alignment Worksheet to, map your current allocation, compare it to your true risk tolerance, and identify where you may be taking too much or too little risk. Then, if you want a professional second opinion, schedule a conversation with the Hoxton team to review your results and your overall retirement plan.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 126 – Is Your House Really an Investment or Just a Home?

If you spend any time online, you have probably seen bold claims about homeownership. Some voices insist you should never pay off your house and instead keep borrowing against it to build a real estate empire. Others argue that buying a house is “the worst investment in the history of mankind” and that you should always rent instead.

In Episode 126 of The Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie Hoxton and Rob Hoxton react to this kind of viral housing advice and offer a calmer, more realistic way to think about your home.

Their conclusion is straightforward. A house can be an asset, but for most people it is first and foremost a place to live your life. When you treat it only as an investment, you risk making decisions that look clever on paper but could be dangerous in the real world.

Why “Never Pay Off Your House” Is Risky Advice

One of the clips Archie and Rob review claims that paying off your mortgage is “the biggest mistake of your life.” The suggestion is to borrow aggressively against your home, use that money to buy multiple rental properties, and then live off the cash flow.

On the surface, the math sounds compelling. In practice, it is highly leveraged, highly concentrated risk.

  • It works beautifully in a strong, rising real estate market.
  • It can be devastating if property values fall, tenants disappear, or financing terms change.
  • In a serious downturn, you can end up underwater on multiple properties and lose not only your investments, but your primary home.

Rob and Archie remind listeners that this is not a neutral strategy. It is a speculative business model. For a small subset of people who truly want to be full-time real estate investors, high leverage might be part of the plan. For most families, it is far more risk than they need to take on to have a secure retirement.

A much more realistic path for many households is:

  • Buy a home that fits your budget.
  • Pay the mortgage on schedule, or a little faster if rates are high.
  • Build retirement savings at the same time, through a 401(k), IRA, or other investment accounts.

You do not have to choose between ever paying off your home and saving for retirement. The internet may frame it that way, but sound financial planning rarely does.

Is Buying a House Really a “Terrible Investment”?

Another popular video claims that buying a home is the worst investment you will ever make, once you factor in maintenance, taxes, mortgage interest, and selling costs. The speaker argues that unless your property more than doubles in value in ten years, you are behind.

Archie and Rob acknowledge that there is a grain of truth here. When you count all the costs of ownership, the true financial return on a primary residence may not match stock-market-level returns. That is especially true if:

  • You buy a home and only live in it for a short period.
  • Local prices stagnate or decline.
  • You stretch to buy more house than your budget supports.

However, this is still too narrow a lens. A house is not just a line on a balance sheet.

Your home provides:

  • Shelter and stability.
  • A place to raise children, host holidays, and build community.
  • The ability to customize your environment in a way renting often cannot.

From a planning standpoint, Rob suggests thinking of your home as shelter and possibly as a store of value, not primarily as a high-yield investment. If you make money on it over time, that is a bonus, not the main purpose.

When Renting Makes More Sense

One area where Archie and Rob strongly agree with some of the critics is on time horizon. If you know that you are unlikely to stay in a house for long, renting can absolutely be the smarter financial move.

Situations where renting often makes sense include:

  • You expect to move within five years.
  • Your job, family plans, or location are still in flux.
  • You do not have a sufficient down payment and would be taking on a very large mortgage relative to your income.

Short holding periods magnify closing costs, selling costs, and the risk that the market has a bad stretch at exactly the wrong time. Renting in those seasons can preserve flexibility while you build savings and clarity.

The Quiet Advantage of a Fixed Mortgage Payment

One point that rarely shows up in viral clips is the long-term advantage of a fixed mortgage payment.

If you take out a 30-year fixed-rate mortgage and stay in the home for decades:

  • Your payment stays the same in nominal terms.
  • Your income, in most careers, rises over time.
  • Inflation gradually makes that fixed payment feel smaller in “real” dollars.

As Rob notes, by the time you are in year twenty-five or twenty-eight of your mortgage, you may still be making the same monthly payment, but your salary is far higher than it was in year one. That dynamic can make it easier to accelerate payments near retirement if that fits your plan, or simply enjoy a relatively low housing cost later in life.

How To Decide What Is Right For You

Instead of adopting an extreme stance for or against homeownership, Archie and Rob encourage listeners to ask practical questions that fit their own situation:

  • How long do you realistically expect to stay in this area and this home?
  • Can you afford the payment and still save for retirement and other goals?
  • Are you comfortable taking on real estate investor risk, or do you want a simpler path?
  • Does paying off your home before retirement support your sense of security and flexibility?

The right answer is highly personal. Some clients value the peace of mind of entering retirement without a mortgage. Others prefer to keep a low-rate mortgage and invest extra dollars elsewhere. Still others rent by choice for the flexibility.

A good financial plan makes these trade-offs visible, stress tests them under different market conditions, and helps you align your housing decision with your broader goals.

Final Thought

The loudest voices online often talk about housing in absolutes. Never pay off your house. Never buy. Always leverage. Always rent.

The reality, as Rob and Archie explain, is more nuanced. Your home is a financial decision, but it is also a life decision. When you see it that way, you can ignore the hype and choose the path that supports both your balance sheet and your well-being.

Thinking about buying, refinancing, or paying off your home and wondering how it all fits into your bigger financial picture?

Use Hoxton Planning & Management’s free Net Worth & Budget Worksheet to map out your income, expenses, debts, and assets so you can see clearly what you can afford and how housing decisions affect your long-term plan. If you want help turning that snapshot into a full retirement and investment strategy, you can also start a conversation with the team.
Download the Worksheet
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 125 – What Is a Fiduciary Financial Advisor, Really, and Why It Matters

If you have ever searched for a financial advisor, you have probably seen the word “fiduciary” everywhere. It shows up on websites, in ads, and in almost every “how to pick an advisor” checklist.

But what does it actually mean in practice, and how do you know whether someone is truly obligated to act in your best interest, or simply using the right buzzwords?

In Episode 125 of The Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER professional Archie Hoxton and advisor Jimmy Sutch unpack what it means to work with a fiduciary, how that standard compares to the old “suitability” model, and why the difference can have a real impact on your money and your long term financial security.

This blog walks through the key points from the episode and gives you a practical lens for evaluating advisors in the real world.

What is a fiduciary advisor?

Archie defines a fiduciary in the simplest possible way. A fiduciary is someone who has a binding obligation to act in your best interest, even when that conflicts with their own short term financial interest.

In other words, if the choice is between what is best for you and what is most profitable for the advisor, a fiduciary standard requires the advisor to choose you.

In the financial world, that means:

  • Recommendations must be made in your best interest, not just “good enough.”
  • Conflicts of interest must be disclosed and managed, not hidden.
  • Advice should be supported by careful analysis, not sales scripts or generic rules of thumb.

For many families, the appeal is straightforward. When you sit across the table from someone who is helping you decide how to invest, when to retire, or how to protect your family, you want to know they are not quietly being rewarded for steering you in a particular direction.

Fiduciary vs. suitability: “It fits” is not enough

The episode contrasts the fiduciary standard with the older “suitability” standard, which is still used in parts of the industry.

Under a suitability standard, an advisor only has to show that a recommendation is “suitable” for you in a broad sense. Jimmy and Archie liken it to buying a suit from a salesperson who does not really care whether it is the best choice for your wardrobe, only that it technically fits.

You needed a suit. They sold you one. Suitable, yes. Best, not necessarily.

In financial terms, suitability might sound like:

  • “This product could be reasonable for someone your age and risk level.”
  • “You need life insurance, and this policy technically meets that need.”

The problem appears when commissions or incentives line up behind one choice instead of another. Without a fiduciary standard, it is easier for an advisor to justify the higher paying option that still meets the minimum bar of “suitability,” even if there is a better, lower cost or more flexible alternative you never see.

A fiduciary standard raises that bar. It is not enough that the “suit fits.” The recommendation should fit your entire financial picture, your long term goals, and your best interest, even if that is less profitable for the advisor.

Where the CFP marks fit in

The episode also highlights the role of professional standards.

Many advisors talk about being fiduciaries in specific situations, for example, when giving investment advice on certain accounts. However, that duty may not cover every area of your relationship with them.

One reason Archie and Jimmy advocate for the CERTIFIED FINANCIAL PLANNER designation is that CFP professionals are required to act as fiduciaries for all financial advice they provide, not just on one account or product line.

That means:

  • Investment recommendations
  • Financial planning advice
  • Insurance and risk management guidance
  • Retirement and tax planning strategies

All must be delivered in your best interest, with a duty of care and diligence behind each recommendation.

For a consumer, that simplifies the question. You do not have to untangle “when” someone is a fiduciary and when they are not. With a CFP professional who is committed to that standard across the relationship, the expectation is more consistent.

Why compensation and conflicts still matter

Compensation comes up often in the episode, and Archie and Jimmy are careful to make an important distinction.

How an advisor is paid does not automatically prove they are, or are not, a fiduciary. However, it absolutely shapes where conflicts of interest are likely to appear, and you should understand those clearly.

Common models include:

  • Fee only or fee based on assets under management
    The advisor is paid a percentage of the money they manage or a flat planning fee. This model was created in part to reduce transaction based conflicts and align the advisor’s success with your long term results.
  • Commission based or hybrid models
    The advisor is compensated when certain products are implemented, such as insurance or annuities, sometimes alongside asset based or planning fees.

The podcast does not claim that one model is always good and another is always bad. Instead, Archie and Jimmy urge you to look at two things:

  1. Is your advisor required to act as a fiduciary when making recommendations, regardless of how they are paid?
  2. Are conflicts of interest clearly disclosed and explained in plain language?

A commission structure can be abused, but it can also be used appropriately to access products that only exist in that world, such as term life insurance. Conversely, a fee only structure can reduce some conflicts, but it does not remove the need for diligence, thoughtful analysis, or transparency.

Why this matters for your long term plan

On the surface, the difference between “suitable” and “best interest” might sound technical. In practice, it can ripple through your entire financial life.

The wrong product or strategy can:

  • Increase your lifetime tax bill
  • Lock you into inflexible contracts or high fees
  • Put too much risk or too little growth in your portfolio
  • Delay your retirement or force painful course corrections later

The right advisor relationship, built on a fiduciary standard and clear communication, can help you:

  • Stress test your plan under good and bad markets
  • Make better decisions about Roth conversions, withdrawals, and timing
  • Coordinate investments, insurance, tax strategy, and estate planning
  • Move forward with more clarity and less second guessing

That is the real point of this episode. The fiduciary conversation is not about jargon. It is about making sure the person guiding you is truly aligned with you when the stakes are high.

Questions to ask when interviewing an advisor

Drawing on the spirit of the episode, here are a few concrete questions you can use:

  • Are you a fiduciary at all times when you are giving me advice, or only in certain accounts or situations?
  • How are you compensated, and who else pays you besides me?
  • Are you a CERTIFIED FINANCIAL PLANNER professional, and if so, how does that affect your responsibilities to me?
  • Can you describe a situation where you recommended something that was not in your own financial interest, but was better for a client?
  • Who owns your firm, and whose interests are considered when big business decisions are made?

Good advisors welcome these questions. They should be able to answer them directly, without defensiveness or jargon.

Ready to see how a fiduciary team approaches planning?

If you want to go beyond buzzwords and see how a fiduciary planning process actually works in real life, a good next step is to understand the full picture of your financial life, not just your investments.

Hoxton Planning & Management uses a Six Disciplines framework to coordinate cash flow, tax planning, risk management, investments, estate planning, and retirement strategy.

You can explore that framework and see how your own situation lines up here

Learn More
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 124 – Revenge Saving vs Revenge Spending – How to Stop Swinging Between Extremes

What Is Revenge Saving and Revenge Spending?

In Episode 124 of the Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie and Rob Hoxton explore a pair of patterns that sound dramatic but are surprisingly common. Revenge spending and revenge saving describe the emotional swings many people experience when reacting to stress, deprivation, or guilt about money.

Revenge spending became a buzzword after the Covid lockdowns. People who felt cooped up or restricted rushed to travel, dine out, and spend on experiences once restrictions eased. In more everyday life, it can look like overspending after a stressful period, or buying something extravagant after an argument as a way to “reset the scales.”

Revenge saving is the opposite swing. After a period of overspending or during times of economic uncertainty, people clamp down hard. They cut aggressively, hoard cash, and sometimes deprive themselves of reasonable comfort or important spending, all in the name of getting “back on track.”

Both behaviors are understandable. Neither is sustainable.

The Pendulum Effect With Money

Archie and Rob compare these patterns to dieting. After a stretch of overeating, someone might respond by barely eating at all for a day or two. That extreme reaction is not meant to be permanent, and it is usually followed by another swing in the opposite direction.

Psychologists call this the pendulum effect. When we feel out of control or guilty, we often respond with an extreme corrective action. With money, that can mean shifting rapidly from splurging to strict deprivation and back again.

The danger is not in occasionally tightening up or enjoying a treat. The danger is living at the extremes, where long term planning disappears and financial stress increases, even if you are technically saving more in the short term.

Turning Guilt Into Productive Action

The good news is that the same emotional energy that drives revenge saving can be channeled into productive changes. Rob and Archie suggest several practical moves that help you regain control without sliding into all or nothing thinking.

1. Rebuild or strengthen your emergency fund

If spending got away from you, start by shoring up your safety net. Aim for three to six months of essential expenses in an easily accessible account. That cushion protects you from surprise costs, prevents future credit card debt, and reduces anxiety about everyday spending.

2. Attack high interest debt

If the “holiday report card” on your credit card statement is painful, prioritize paying down consumer debt. High interest balances make it difficult to adjust your lifestyle when circumstances change. Reducing or eliminating these obligations gives you flexibility and frees up future cash flow.

3. Review your investment mix

Revenge savers often let large amounts of cash pile up in low yielding accounts because it feels safe. The hosts encourage listeners to evaluate whether they are holding more cash than they truly need, and whether those dollars could be working harder in a diversified portfolio that outpaces inflation over time.

4. Automate your good decisions

For people who tend to oscillate between splurge and clampdown, automation can be a powerful stabilizer. Increasing contributions to a 401(k) or automatic transfer into a savings account means the money is directed to a productive goal before it ever hits your checking account.

Introducing the “Joy Fund”

To keep the pendulum from swinging wildly, Archie and Rob also recommend building in structured fun. One idea is to create a small “joy fund” that you contribute to regularly.

A portion of each paycheck goes into this separate bucket, earmarked for travel, special dinners, or hobbies. When the fund has a balance, you can spend it guilt free. When it is empty, you wait and rebuild. This approach acknowledges a simple reality. Most people will want to indulge or celebrate occasionally. Planning for that up front keeps those moments from sabotaging your bigger goals.

Use a Financial Plan to Narrow the Swings

At the core of the episode is a familiar theme. A written financial plan is one of the best antidotes to reactionary decisions. If you know how much you need to save, what your investments are doing, and how your spending aligns with your goals, you are less likely to overreact to a single month of higher expenses or a scary headline.

Archie and Rob point out that modern planning tools can show you whether you are on track, even when markets are volatile. Instead of guessing, you can log in, stress test your plan, and see whether a course correction is truly needed.

When you have that level of clarity, “revenge” becomes unnecessary. You are not trying to correct for chaos. You are making adjustments inside a framework that already supports your long term success.

Final Thought: Choose Balance Over Backlash

Revenge saving and revenge spending are really about emotion, not math. They often signal that you feel out of control, guilty, or anxious about the future. The real solution is not to punish yourself financially, but to build systems that make your decisions calmer, more predictable, and aligned with your values.

Small, consistent actions like rebuilding an emergency fund, paying down debt, automating savings, and creating a joy fund can move you from boom and bust behavior to steady progress.

Ready to step off the financial roller coaster.

Download our Net Worth and Budget Worksheet to get a clear snapshot of your money, build a realistic spending plan, and start moving toward balance.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 123 – From Saver to Spender – How to Confidently Live on Your Retirement Savings

Stepping Into Retirement: Why Spending Can Feel So Hard

In Episode 123 of the Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie and Rob Hoxton tackle an issue many retirees do not expect. After decades of saving diligently, actually spending that money in retirement can feel uncomfortable, even frightening.

They describe two common personality types they see in their practice: people who are excellent savers but reluctant spenders, and people who are enthusiastic spenders but poor savers. Retirement planning is difficult for both groups, but that first group often faces a unique psychological hurdle. They have done the hard work of accumulating assets, yet feel anxiety when the paycheck stops and withdrawals begin.

For many, this hesitation is rooted in early money memories. Scarcity during childhood, parental messages about never touching principal, or memories of periods like the Great Depression or the 2008 crisis can all shape how someone feels about drawing down savings in retirement.

The Emotional Side of “Turning the Spigot Around”

Archie and Rob explain that this is not just a math problem. It is an identity and mindset shift. Throughout working years, the pattern is simple. Earn income, save a portion, never touch the nest egg. That habit is reinforced for 30 or 40 years.

When retirement arrives, the entire model flips. Income from work stops and your portfolio becomes the source of your lifestyle. Even when a financial plan shows a high probability of success, many retirees still feel uneasy. They worry about outliving their money, market volatility, or losing their sense of purpose once work is no longer central to their lives.

Rob notes that some of the people who struggle the most with this shift are also the people who delay retirement, even when they are financially ready. The fear of spending, combined with uncertainty about what comes next, keeps them working longer than they might otherwise choose.

Rethinking What Your Portfolio Is For

A major theme in the episode is reframing the role of your investments. Archie encourages listeners to ask a basic but powerful question: What were you saving for.

If the answer includes travel, time with family, meaningful volunteer work, or simply having flexibility, then at some point you must allow your money to do its job. That means seeing yourself not only as a worker, but as an investor whose capital is now doing the earning on your behalf.

They describe portfolios not as static piles of money, but as a productive “army of dollars” deployed into companies, bonds, and other assets that generate dividends, interest, and growth. Understanding how a diversified portfolio is designed to support long term withdrawals can make the idea of spending feel less like erosion and more like using a well engineered tool as intended.

The Power of a Scalable Lifestyle

One of the most practical concepts in the episode is the idea of a “scalable lifestyle.” Instead of a rigid, all or nothing retirement budget, a scalable lifestyle allows for spending that can be dialed up in good markets and pared back during more challenging periods.

Rob and Archie emphasize that being debt free is one of the most important foundations for this approach. Fixed debt payments reduce flexibility. Without them, you can temporarily reduce discretionary spending such as travel, large purchases, or luxury items if markets are struggling, without jeopardizing your basic needs.

This flexibility helps retirees feel more in control, which directly reduces anxiety about drawing from their portfolios.

Stress Testing Your Plan Against Real World Risks

Education and planning are at the heart of building confidence. Archie and Rob highlight several steps that can help a saver feel ready to spend.

1. Build and maintain a detailed financial plan

A good retirement plan does more than list account balances. It projects spending, taxes, Social Security, and investment returns under a range of scenarios. Modern planning tools can run thousands of simulations to estimate the probability that your plan will succeed, even if markets perform poorly in the early years of retirement.

2. Understand how market volatility affects withdrawals

Many retirees vividly remember 2008, along with other market shocks. The hosts explain that it is crucial to understand how different withdrawal rates behave during downturns, and how a properly diversified portfolio is designed to weather corrections and bear markets over time.

3. Clarify your non financial purpose

Part of the fear around retirement is not just about money. It is about identity. Rob jokes that he does not want to become “Rob who sits on the couch.” Thinking ahead about the roles, routines, and contributions that will give retirement meaning can make it easier to embrace the shift away from a paycheck.

From Anxiety to Confidence

The message of Episode 123 is not that fear is irrational, but that it is manageable. With a clear plan, a scalable lifestyle, and a better understanding of how your investments work, you can move from perpetual accumulation to thoughtful, confident spending in retirement.

You saved for a reason. At some point, it is not only acceptable to spend. It is the fulfillment of the plan you built.

Ready to find out if your retirement plan can support the life you want?

Download our Retirement Readiness Checklist and take the next step toward spending with confidence.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 122 – Social Security Pay Raise? The Gotchas You Need to Know

Social Security's 2026 Pay Raise: What You Gain—and What You Might Lose

As retirees gear up for a 2.8% Social Security increase in 2026, it’s tempting to view it as a long-overdue raise. But before you celebrate, it’s crucial to understand how much of that bump might get clawed back by taxes, rising Medicare premiums, and inflation.

In Episode 122 of The Last Paycheck Podcast, CFP® professionals Rob and Archie Hoxton pull back the curtain on how the Social Security COLA (Cost of Living Adjustment) is actually calculated—and why it’s not as intuitive as most people think. Unlike standard year-over-year inflation comparisons, the COLA is based on third-quarter changes in a very specific inflation measure: the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers).

This year’s COLA is 2.8%, translating to:

  • $56 more per month for the average individual
  • $88 more per month for the average couple

But here’s the catch: Medicare premiums are also rising.

The base Medicare Part B premium is expected to jump from about $185 to $206/month. That means as much as half—or more—of your “raise” could go straight toward healthcare costs. For higher-income retirees, the IRMAA surcharge can make premiums even steeper.

Then there’s the issue of tax thresholds. Social Security benefits are subject to taxation once your income exceeds $25,000 (single) or $32,000 (married). But those thresholds haven’t budged in years. As your benefits rise, so does your chance of triggering the “tax torpedo”—where 50% to 85% of your benefit becomes taxable income.

And for high earners still in the workforce, the FICA wage cap is rising to $184,500 in 2026. That means you’ll pay more in payroll taxes—while still receiving the same capped benefit later in life.

Take Control of What You Can

Despite these complexities, there’s good news: With smart planning, you can reduce the impact of taxes, Medicare premiums, and inflation on your retirement income.

Re-evaluate your Social Security claiming strategy
Consider income shifting or Roth conversions
Review your Medicare premium brackets
Update your retirement projections using realistic inflation rates

Want help understanding how these changes affect you?

Download the Social Security + Medicare Planning Audit

Use our free worksheet to estimate your real net benefit after taxes and Medicare deductions, and plan your next steps.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 121 – The Geography of Retirement: Why Your State Matters More Than You Think

When most people picture retirement, they imagine beach towns, warmer weather, or a slower pace of life. But there’s one factor that often gets overlooked—and it could drastically change your financial future: the tax implications of where you live.

In this episode of The Last Paycheck Podcast, CFP® professionals Rob and Archie Hoxton walk listeners through how your choice of state impacts your finances in retirement. From Social Security taxes to property levies, they make the case for why your zip code matters just as much as your income level.

The Tax Breakdown: Not All States Are Created Equal

There are 50 states—and 50 different tax structures. Some states (like Florida and Texas) have no income tax. Others (like California and New York) can significantly reduce your take-home income through higher income, property, or sales taxes.

Rob and Archie discuss:

  • Social Security taxation: Most states don’t tax it, but a few—including West Virginia (until 2026)—still do.
  • IRA and 401(k) withdrawals: Even if your federal taxes are consistent, state tax rules vary widely.
  • Property taxes: The difference between paying $700/year (Alabama) and $9,300/year (New Jersey) can blow a hole in your retirement plan.
  • Sales taxes: Some states trade low income taxes for higher consumption taxes. Be prepared.

Don’t Forget Estate and Inheritance Taxes

Twelve states still levy estate taxes—and six have inheritance taxes. If you live in Maryland, you’re hit with both. The federal exemption may not apply at the state level, so planning ahead is crucial if you’re hoping to preserve generational wealth.

Why Geography Isn’t Just About Lifestyle

Sure, you want to love where you live. But what if moving a few miles over the state line could save you thousands per year? The Hoxton’s highlight simple geographic tax-saving strategies, like:

  • Moving from Maryland to West Virginia
  • Swapping New Jersey for Pennsylvania
  • Buying in Delaware to avoid sales tax

These moves may sound small, but they can significantly reduce retirement expenses without requiring major sacrifices in lifestyle.

Your Financial Takeaway

Retirement planning isn’t just about how much you’ve saved—it’s also about where you spend it. By considering state taxes, property values, and cost of living, you can stretch your dollars further and avoid nasty surprises later on.

Download our Retirement Relocation Readiness Audit to assess whether your move is truly saving—or costing—you.

Thinking about relocating for retirement?

Make sure you’re not trading sunshine for higher taxes. Download our free Retirement Relocation Readiness Audit to compare costs and tax impacts before you move.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 120 – The Retirement Money You Forgot About – And How to Find It

What if you had $67,000 sitting in an old account and didn’t even know it?

In Episode 120 of The Last Paycheck Podcast, CFP® professionals Rob and Archie Hoxton sound the alarm on a shocking statistic: over 32 million 401(k) accounts are forgotten—totaling nearly $2 trillion in unclaimed retirement savings.

As more Americans change jobs—an average of 12 times over their careers—it’s increasingly easy to lose track of old retirement accounts. A new job, a move, a forgotten login, or awkward exit from a former employer can cause retirement savings to be misplaced or abandoned altogether.

Why 401(k)s Get Lost

  • You change jobs and forget about the old plan.
  • HR doesn’t communicate rollover steps clearly.
  • Your mailing address or email changes.
  • The employer switches plan custodians.
  • You mistakenly think you rolled everything over.

And because statements may have been mailed to your old address or sent to a now-defunct work email, it’s easy to miss the clues.

The High Cost of Forgetting

Leaving retirement accounts unmanaged can result in:

  • Poor investment returns (some old accounts default to low-interest cash funds).
  • Missed employer contributions due after your departure.
  • Outdated beneficiary designations—an ex-spouse or deceased parent could still be listed.
  • Higher management fees after you leave the employer.
  • Unclaimed checks mailed to the wrong address and never received.

In short, forgotten accounts can cost you significantly—both in dollars and in missed opportunity.

How to Reclaim Lost 401(k)s

Rob and Archie share several actionable steps:

  1. Make a list of all former employers. If they offered a 401(k), track it down.
  2. Search the DOL’s Retirement Savings Lost & Found
  3. Check state unclaimed property websites and com.
  4. Contact former HR departments, even if it’s awkward.
  5. Request recent account statements and update your beneficiary details.

What to Do Next

If you find an old 401(k), you have several options:

  • Roll it into your current employer’s plan for consolidation.
  • Roll it into an IRA for broader investment choices.
  • Leave it where it is, but only if you’re actively monitoring it.
  • Cash it out, though this is usually the least favorable due to taxes and penalties.

Rob and Archie emphasize: Don’t wait. Make recovering and consolidating your retirement funds part of your job transition checklist. The longer you delay, the higher the risk of forgetfulness, lost funds, or poor investment performance.

Need Help Finding Yours?

If you think you might have a forgotten retirement account—or simply want to ensure your retirement savings are properly managed—start with our Lost 401(k) Recovery Checklist and schedule a consultation today.

Download the checklist now:
Lost 401(k) Recovery Checklist

Think you’ve forgotten a 401(k)?

Don’t leave money on the table. Use our Lost 401(k) Recovery Checklist to track down every account and secure your financial future.
Download The Checklist Now
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 119 – Year-End Tax Planning Tips You Can’t Afford to Miss

As the final quarter of the year begins, it’s the perfect time to focus on one of the most powerful ways to influence your financial future—year-end tax planning.

In Episode 119 of The Last Paycheck Podcast, CFP® professionals Rob and Archie Hoxton outline key moves you can make before December 31 to potentially lower your tax bill, boost your retirement savings, and finish the year with confidence.

Why Timing Matters

Many tax-saving strategies have hard cutoffs on December 31—not April 15—making the fourth quarter your last chance to act. Starting now gives you time to collaborate with your advisor or CPA and make thoughtful decisions instead of scrambling at the last minute.

Retirement Moves to Consider

  • Required Minimum Distributions (RMDs): If you’re age 73 or older, you must take RMDs from retirement accounts like IRAs or 401(k)s. Delaying this can lead to steep penalties and higher taxable income.
  • Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can donate part or all of your RMD directly to charity—reducing your taxable income.
  • Roth Conversions: Converting funds from a traditional IRA to a Roth IRA can lock in today’s lower tax rates and grow your money tax-free in the future. This must be completed by December 31.

Make the Most of Contributions

  • You have until April 15 to contribute to IRAs, but contributing before year-end maximizes market exposure and simplifies record-keeping.
  • Over 50? Don’t forget catch-up contributions: $1,000 extra for IRAs and $7,500 for 401(k)s in 2025.

Capital Gains & Loss Harvesting

  • Review your investment performance and consider harvesting losses to offset gains or even regular income.
  • If you’re in the 0% long-term capital gains bracket, you may want to harvest gains tax-free while you can.
  • Own mutual funds? Be aware of year-end capital gain distributions—they could add to your tax bill even if you haven’t sold anything.

Smart Giving Strategies

  • Donor-Advised Funds (DAFs): Make a large donation this year, take the deduction, and distribute funds to charities over time.
  • Appreciated Securities: Donating these instead of cash avoids capital gains and provides a full deduction.
  • Annual Gift Exclusion: In 2025, you can gift up to $19,000 per recipient ($38,000 for couples using gift-splitting) without triggering gift tax filings.

Healthcare Planning

  • Flexible Spending Accounts (FSAs): Use it or lose it. Unused funds often expire at year-end.
  • Health Savings Accounts (HSAs): If you have a high-deductible health plan, max out your HSA for triple tax benefits.

Review Beneficiaries

Tax planning is also about protecting your legacy. Now is a great time to double-check that your beneficiaries are up to date across IRAs, 401(k)s, life insurance, and brokerage accounts.

Don’t Wait Until the Last Minute

Most of these strategies must be in place before December 31. Start planning now with your advisor or tax professional—and use our tools to get organized and avoid costly mistakes.

Want help wrapping up your year with confidence?

Use our free Tax Strategy Planning Calendar to stay organized—and then schedule a judgment-free meeting with a fiduciary advisor to put your plan into motion.
Download The Calendar
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

EPISODE 118 – Should You Give While You’re Living? The Financial and Emotional Case for a Warm-Hand Legacy

Many people plan to leave an inheritance to their family, favorite charities, or both. But what if there were benefits to giving while you’re still alive?

In Episode 118 of Last Paycheck, Archie Hoxton and Jimmy Sutch unpack the increasingly popular strategy of “giving while living”—sometimes called “giving with a warm hand.” Rather than waiting until death to transfer assets, this approach allows donors to see the impact of their generosity in real time.

Why People Choose to Give While Living

For some, it’s about timing: helping a child buy a first home, funding a grandchild’s 529 plan, or making a meaningful charitable gift during their lifetime. Others are motivated by the emotional reward—watching loved ones thrive or seeing a cause they care about move forward.

Key motivators include:

  • A strong financial foundation and guaranteed income
  • A desire to reduce future estate complexity
  • A wish to avoid probate or family conflict
  • The emotional fulfillment of seeing a gift make a difference

The Financial Upsides

Archie and Jimmy highlight several financially strategic ways to give:

  • Annual Gift Tax Exclusion: In 2024, individuals can give up to $18,000 per recipient tax-free (double for couples).
  • Direct Payments to Institutions: Paying medical or tuition expenses directly to providers avoids gift tax and offers simplicity.
  • Appreciated Stock Gifts: Donating appreciated investments can reduce capital gains taxes.
  • Qualified Charitable Distributions (QCDs): For those 70.5 and older, QCDs allow IRA assets to be donated directly to charity, reducing taxable income.
  • Donor-Advised Funds (DAFs): These vehicles let donors receive an upfront deduction while distributing the funds over time.

But It’s Not for Everyone

The episode is clear: giving while living must be done with caution. If your own retirement plan isn’t secure, or if you could one day face expensive health care or long-term care needs, giving prematurely could put you at risk.

The best way to determine readiness is through comprehensive financial planning. Archie notes that one of the greatest gifts you can give your heirs is not becoming a financial burden in the future.

Next Steps: Should You Start Giving?

If you’re thinking about giving while living, ask yourself:

  • Have I secured my financial future?
  • Are there opportunities to reduce taxes now through smart giving?
  • Is there a legacy I’d like to see come to life today?

Generosity can be powerful, especially when planned wisely. With the right strategy, you can give with confidence and impact.

Is Giving While Living Right for You?

Download our warm-hand legacy worksheet and see if you’re financially—and emotionally—ready to share your wealth to evaluate your current investments, or schedule a planning consultation with our fiduciary advisors today.
Download The Worksheet
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.