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.
Download The Worksheet 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 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.
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 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.
Download The Audit 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 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.
Download The Audit 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 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.

Episode 117: Building a Portfolio That Works for You

If you’ve ever wondered, How do I build an investment portfolio that actually fits my life?, you’re not alone. In Episode 117 of The Last Paycheck Podcast, Rob and Archie Hoxton dive deep into the fundamentals of portfolio construction. Whether you’re just starting out or nearing retirement, understanding your portfolio mix is key to long-term success.

What Is a Portfolio?

Think of your portfolio as a financial recipe. The main ingredients? Stocks and bonds—each with distinct roles.

  • Stocks (Equities): Represent ownership in a company. Their value rises and falls based on company performance and market dynamics. Stocks are typically used to fuel growth.
  • Bonds (Fixed Income): Represent a loan to a government or corporation in exchange for interest payments. Bonds offer stability and income, especially useful in retirement.

Rob and Archie explain that the right mix depends on your risk tolerance, investment timeline, and income needs.

The Role of Diversification

Diversification isn’t just about owning multiple investments—it’s about spreading your risk across different types of assets that don’t all move together. This might include:

  • U.S. and international stocks
  • Government and corporate bonds
  • Various sizes and sectors of companies
  • Short-term and long-term bond maturities

Proper diversification can lower portfolio volatility while maintaining potential returns.U.

Bonds: More Than Just “Safe”

While many investors are familiar with stocks, bonds are often misunderstood. Rob and Archie break down the different bond categories (government, municipal, corporate), credit ratings, and the concept of duration—a measure of how sensitive a bond is to interest rate changes. For example:

  • Longer duration bonds are more sensitive to rising interest rates.
  • High-yield (junk) bonds offer greater return potential but carry more risk.

Knowing how to blend different types of bonds helps create a cushion against market fluctuations.

How Much Risk Is Right for You?

Your ideal portfolio should reflect:

  • Your age and retirement timeline
  • Your ability and willingness to accept market volatility
  • Whether you’re in accumulation or distribution phase

As a general rule:

  • Younger investors can afford to lean more into stocks
  • Those approaching or in retirement often shift toward bonds for income and security

Rob and Archie recommend using the Investment Alignment Worksheet to evaluate whether your portfolio aligns with your financial goals.

Ready to Build a Smarter Portfolio?

A well-structured portfolio isn’t built on guesswork. Download our free Investment Alignment Worksheetto evaluate your current investments—and schedule a no-pressure consultation with Hoxton Planning & Management to get a second opinion. Your future deserves clarity. Let’s build it, together.
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 116 – How to Handle Bear Markets at Every Stage of Life

Weathering the Storm: How to Handle Bear Markets Based on Your Age and Stage

Market downturns are a fact of life—just like taxes, birthdays, and awkward holiday dinners. The question isn’t whether bear markets will happen (they will), but how to handle them in a way that protects your long-term financial health.

In Episode 116 of Last Paycheck, CERTIFIED FINANCIAL PLANNER® professionals Rob and Archie Hoxton walk listeners through how to think about market drops differently depending on where you are in your life journey. Here’s what they had to say.

Bear Markets in Early Career: Buy the Dip, Don’t Fear It

When you’re in your 20s or 30s, volatility can actually work in your favor. You’re buying shares at a discount during bear markets, which boosts long-term returns. But many young investors fall into the trap of viewing portfolio balances like bank accounts—when values drop, they panic and stop contributing.

Don’t make that mistake.

The Hoxtons recommend staying the course (or even increasing your contributions if possible) during down markets. Think in terms of share count, not account balance. This mindset shift can turn market dips into long-term gains.

Mid-Career: Stay the Course, Even While Catching Up

If you’re in your 40s to early 60s and still accumulating wealth, bear markets can feel riskier—especially if you’re behind on retirement savings. But the key lesson remains: keep contributing. Don’t let temporary declines derail your long-term strategy.

It may also be time to start refining your asset mix—adjusting the stock/bond ratio and increasing your emergency fund to reduce your emotional reaction to market swings.

Early Retirement: Flexibility Is Power

In the decumulation phase (the early years of retirement), bear markets are trickier. You may need to sell shares for income—but if markets are down, that means selling more shares to get the same dollar amount.

To reduce this risk, Rob and Archie recommend:

  • Holding 6–12 months of expenses in a “secure bucket” (cash, CDs, etc.)
  • Reducing spending temporarily during a downturn
  • Keeping your lifestyle scalable so you can pause discretionary expenses if needed

This flexibility can make the difference between staying on track and running into trouble.

Late Retirement: Don’t Go 100% Conservative

While it’s common to shift toward more conservative investments with age, Archie warns against becoming too conservative late in life. You may still need growth to fund longevity, healthcare costs, or legacy goals.

The right ratio of stocks, bonds, and cash depends on your personal needs—but don’t assume 100% bonds is the right choice at 85. Growth still matters.

The Bottom Line: Have a Plan

Ultimately, your success in navigating bear markets depends on having a well-thought-out financial plan. With a strategy that considers your time horizon, income needs, and psychological tendencies, you can avoid costly mistakes and turn downturns into long-term opportunities.

Ready to stress-test your investment strategy before the next bear market?

Download the Investment Alignment Worksheet to evaluate your portfolio—and see if you’re truly prepared for what’s ahead. Or schedule a free consultation to talk to a fiduciary advisor who’s on your side.
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 115 – Should You Downsize? Avoid These Costly Mistakes

For many retirees, downsizing sounds like the perfect plan. A smaller space. Less maintenance. More cash in your pocket. But without proper planning, it can also lead to financial pitfalls that eat away at your retirement security.

In Episode 115 of the Last Paycheck Podcast, Certified Financial Planners® Archie and Rob Hoxton break down the emotional and financial implications of downsizing. They share client stories, real-life scenarios, and their best advice for approaching this major life transition with eyes wide open.

Why Downsizing Is a Retirement Gamechanger

Many retirees are sitting on significant home equity, especially after years of rising real estate prices. Downsizing is often a key strategy to unlock that equity for retirement income or legacy goals. Whether you’re thinking about moving closer to grandkids, entering a retirement community, or just shedding square footage, the why behind your move matters.

But don’t let emotions take over. Acting too quickly—especially in today’s competitive housing market—can create major tax and liquidity issues.

Don’t Make These Mistakes

Here’s what Archie and Rob warn against:
1. Signing a Contract Before Talking to Your Advisor
It’s tempting to move fast when your dream home hits the market. But buying before you’ve sold your current home can leave you scrambling for funds—and potentially incurring massive capital gains if you sell investments in a taxable account.
2. Ignoring Better Short-Term Financing Options
If you’re between selling one home and buying another, consider a:
  • Home Equity Line of Credit (HELOC)
  • Securities-backed line of credit (from a brokerage account) These options can help you access liquidity without selling investments or triggering taxes.
3. Falling for Shady Lending Practices
Some lenders may suggest moving IRA assets to their firm to “qualify” for better loan terms. This is often unethical and may even be illegal. IRAs cannot be used as loan collateral, and no lender should require asset transfers just to issue a loan.
4. Overlooking Accessibility and Future Needs
Will your next home still serve you well at age 80 or 90? Ask yourself:
  • Can I live on one level?
  • Is the home accessible?
  • Are care services or retirement communities nearby?
  • Will I have to move again in a decade?
Rob and Archie compare the best retirement communities to going back to college—built-in meals, friends, and activities—with fewer keg stands.

The Bottom Line

Downsizing can absolutely help fund your retirement and simplify your life—but only when approached with the right strategy and support. Before making your move:

  • Map out your funding plan
  • Talk to your advisor
  • Understand the tax impacts
  • Look at the whole picture—your finances, your lifestyle, your future care

Need help building your downsizing game plan?

Download the Downsizing Decision Audit Worksheet to evaluate your readiness—and schedule a no-pressure consultation with our team.
Download The Checklist
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.