Episode 110 – What the “One Big Beautiful Bill” Means for Your Taxes (2025–2028)

The recently passed legislation known as the “One Big Beautiful Bill” is about to reshape the personal finance landscape—and in Episode 110 of Last Paycheck, advisors Archie Hoxton and Emily Leslie walk you through what matters most for everyday families, retirees, and business owners.

Here’s what you need to know—and how to prepare.

Making the Tax Cuts and Jobs Act Permanent

The biggest headline is the permanent extension of the 2017 Tax Cuts and Jobs Act. That means the doubled standard deduction and reduced tax brackets are here to stay. For most households, this helps avoid a major tax increase that was originally expected if the law expired.

However, the flip side is the continued loss of many itemized deductions, especially those in the miscellaneous category. If you were expecting a return to the old deduction system, that’s no longer on the table.

Boosts to the Child Tax Credit

Families will see a modest but helpful increase in the Child Tax Credit—from $2,000 to $2,200 per child, with $1,700 of that amount refundable. Households earning up to $400,000 (married filing jointly) remain eligible, but you must owe federal taxes to receive the refundable portion.

Big Win for Service Workers: Tip Income Deduction

One of the most surprising—and generous—changes is a new above-the-line deduction for tip income. Starting in 2025, eligible workers can deduct up to $25,000 of tip-based income from their taxable income. This is especially helpful for servers, bartenders, delivery drivers, and others who now earn tips through credit card transactions.

The IRS and Treasury will release additional guidance about which professions qualify, but the basic test appears to be “customary and voluntary” tipping.

Auto Loan Interest Becomes Deductible (With Conditions)

For vehicles assembled in the U.S., borrowers can deduct up to $10,000 in interest on auto loans. This deduction applies from 2025 to 2028 and begins phasing out above $200,000 in household income. Buyers will need to verify final assembly location, but for many Americans, this change will offer substantial tax savings on a necessary expense.

A New Tax-Advantaged Account for Babies: The Trump Account

A new savings vehicle—informally dubbed the “Trump Account”—will give newborns a $1,000 federal contribution if they’re born between 2025 and 2028. Parents can contribute $5,000 annually, and employers can add $2,500 per year.

But there are caveats:

  • Only U.S. stocks are allowed as investments
  • Withdrawals for education, first-time home buying, or small business use are allowed after age 18—but earnings will be taxed
  • Early withdrawals come with penalties

This account blends elements of a Roth IRA and 529 plan but comes with unique restrictions that families must consider carefully.

Final Thoughts

While the “One Big Beautiful Bill” offers tax relief and new savings tools, it also brings complexity and confusion. Many of the provisions are time-limited (2025–2028), and several will require additional IRS clarification.

If you’re a tip-based worker, expecting a child, considering a new vehicle, or simply trying to make sense of these changes—now is the time to act.

Evaluate your own risk comfort and investment goals.

Download our 2025 Tax Change Readiness Checklist to audit your situation—and schedule a free consultation to build a strategy that takes full advantage of the new law.
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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 109 – How to Protect Your Portfolio Without Missing the Market

When markets rise, we celebrate. When they fall, panic sets in.

This emotional rollercoaster becomes especially intense once you retire and the paychecks stop. In Episode 109 of the Last Paycheck Podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie and Rob Hoxton break down two options for reducing portfolio anxiety while staying invested: buffer ETFs and fixed indexed annuities.

The Problem: Fear of Loss vs. Need for Growth

Rob shares a common scenario—retirees threatening to cash out entirely when markets dip. The instinct is understandable, but the consequences can be costly. Cash and CDs often don’t outpace inflation, which means your retirement savings could lose purchasing power over time.

Most retirees still need growth—but also want stability. That’s where buffer ETFs and fixed indexed annuities come in.

What Are Buffer ETFs?

Buffer ETFs are exchange-traded funds that offer a unique tradeoff:

  • Upside capped (e.g., 15%)
  • Downside protection (e.g., first 10% loss absorbed)
  • One-year holding periods

These investments use options strategies to deliver a portion of market gains while softening some losses. They’re liquid like any ETF, but to benefit fully, you must hold for a full cycle.

Key Pros:

  • Limited downside exposure
  • Lower cost than annuities
  • Market-based structure

Key Cons:

  • Gain limits in strong years
  • Still some risk if market drops steeply
  • Reset annually—timing matters

What Are Fixed Indexed Annuities?

These are insurance products that link your returns to a market index (like the S&P 500) but protect you from losses entirely.

  • No market losses (your worst year = 0% return)
  • Capped growth (e.g., 12%)
  • Tax deferral on gains (non-IRA assets)

Archie and Rob stress that not all annuities are created equal. The best ones are low-cost, non-commissioned, and provide liquidity after a short lock-in period. But they can still have market value adjustments, limited upside, and tax consequences on withdrawal.

Key Pros:

  • Full downside protection
  • Growth potential
  • Tax-deferred (in non-qualified accounts)

Key Cons:

  • Complex structures
  • Income taxed as ordinary income
  • Limited liquidity depending on contract

Should You Use One of These Tools?

It depends on your retirement needs, timeline, and risk tolerance. If you’re the type to lose sleep during market drops—or already considering shifting everything to cash—these vehicles might offer a happy medium.

But they’re not one-size-fits-all. Rob and Archie recommend working with a fiduciary to evaluate whether these fit your broader plan.

Final Takeaway

Buffer ETFs and fixed indexed annuities are designed to offer peace of mind for cautious investors. They trade full market gains for some downside protection—and can help nervous retirees stay invested for the long haul.

But every financial decision comes with tradeoffs. Make sure you understand the mechanics, risks, and rewards before jumping in.

Evaluate your own risk comfort and investment goals.

Download the Market Participation Strategy Audit, then schedule a no-pressure consultation to get personalized advice on whether these tools are a good fit for your 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 108 – How to Take a Sabbatical Without Derailing Your Financial Plan

Have you ever dreamed of pressing pause on your career to travel, care for a loved one, learn something new, or simply catch your breath?

Sabbaticals—or extended career breaks—are becoming more common across professions. But they’re often under planned. Without a strategy, taking a sabbatical can lead to lost income, reduced retirement savings, gaps in health coverage, and financial stress.

In Episode 108 of Last Paycheck, CFP® professionals Rob and Archie Hoxton explore the logistics and consequences of taking a sabbatical, and how smart financial planning can turn your dream pause into a sustainable reality.

Why People Take Sabbaticals

Rob and Archie highlight a range of reasons:

  • Burnout or mental fatigue
  • Desire to explore personal growth or education
  • Career change or exploration
  • Family caregiving responsibilities
  • Mission trips or long-term travel

While these motivations are valid, the implications of stepping away from work—especially without a plan—can be far-reaching.

The #1 Rule: Know Your Timeframe

Before taking any financial action, estimate the length of your sabbatical. Is it three months? One year? Indefinite?

Your timeframe determines how much you’ll need in savings and how to structure your withdrawal plan. Without clarity, it’s easy to drain your emergency fund or disrupt long-term goals.

What You’ll Miss (and Need to Replace)

During a career pause, most people lose:

  • A steady paycheck
  • Employer-provided health insurance
  • Retirement contributions
  • Life and disability insurance
  • Social Security earnings quarters

Rob and Archie encourage listeners to think beyond just the paycheck. For example, if your employer pays $1,000/month toward your health plan, you’ll need to budget that amount separately—or risk going uninsured.

How a Sabbatical Affects Retirement

Even a short sabbatical can delay your retirement date or reduce your retirement income if you’re no longer contributing to savings. Gaps in your Social Security earnings record may also affect your benefit.

This is where financial modeling matters. As Rob explains, “You need to see your plan up on the big screen. What happens if you pause income, increase expenses, and stop saving for a year? Can your plan still hold up?”

A good financial planner can help stress-test your plan for these “what if” scenarios—before you make the leap.

Pretirement, Not Retirement

Archie introduces the idea of “pretirement”—where a sabbatical is a softer on-ramp to a new career or a different kind of work-life balance. It’s part of a broader movement toward flexible careers and personalized financial lives.

The key? Planning. Whether you negotiate a formal sabbatical or are forced into a pause by life circumstances, understanding the risks and planning for them makes all the difference.

Final Thought

Taking a sabbatical doesn’t have to be a financial setback. With preparation, it can be a powerful part of your personal and professional evolution.

Use the Sabbatical Readiness Planning Tool (linked below) to see where you stand and let a fiduciary advisor help you evaluate the impact before you hit pause.

Thinking about a sabbatical? Make sure your finances are ready.

Download Our Sabbatical Readiness Planning Tool
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 107 – Why Beneficiary Designations Matter More Than You Think

When you think about estate planning, your mind probably goes to wills, trusts, and powers of attorney. But there’s a silent hero of the estate planning world—beneficiary designations. They’re simple, often set-and-forget, but they can be one of the most powerful tools in your financial toolkit.

In Episode 107 of The Last Paycheck Podcast, Archie and Jimmy walk listeners through the role of beneficiaries, how they bypass probate, and why failing to update them can lead to major (and expensive) problems.

Probate: The Process You Want to Avoid

Probate is the legal process of settling an estate when someone dies. It can involve court time, attorney fees, asset inventorying, creditor notification, and a lot of stress. Worse yet, it’s a public process, meaning anyone can look up the details of your estate, your debts, and your heirs.

But here’s the good news: any asset that has a properly named beneficiary avoids probate entirely.

Where You Should Assign Beneficiaries

You might already have beneficiaries listed on your 401(k)—but what about these other accounts?

  • IRAs or Roth IRAs
  • Life insurance policies
  • Bank accounts (POD designations)
  • Brokerage accounts (TOD designations)
  • Real estate (with TOD deed in some states)
  • Annuities and pensions

When you name a beneficiary (or better yet, a primary and a contingent), that asset transfers directly to the person you’ve named upon your death—no courts, no delays.

The Common Mistakes People Make

  • Leaving old beneficiaries on old accounts: Think ex-spouses, estranged relatives, or outdated family dynamics.
  • Failing to update after life changes: A marriage, divorce, or new child should always trigger a review.
  • Not naming contingent beneficiaries: If your primary passes away before you do, the asset could still wind up in probate.

Archie and Jimmy have seen too many people unintentionally leave retirement assets to a former spouse simply because they forgot to update an old form.

Why Consolidation Helps

Fewer accounts means fewer places to update. Consolidating retirement accounts and investment assets not only simplifies your portfolio—it reduces the chance that one forgotten form causes major issues later. It also makes things easier for your heirs, who won’t have to chase down half a dozen institutions in a difficult time.

Final Advice

Beneficiary designations are not a replacement for a full estate plan, but they are one of the most important pieces. Even if you don’t have a will or trust yet, you can still do this now—and it can make a world of difference.

Take five minutes to check your accounts today. Future you (and your loved ones) will thank you.

Think your beneficiaries are up to date?

Download our Beneficiary Check-Up & Estate Prep Guide to review every account—and every name—so your wishes are carried out smoothly.
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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 106 – Helping Kids vs. Saving for Retirement—How to Find the Right Balance

When your child calls and needs help with a student loan, a down payment, or rent, your first instinct is to help. As parents, it feels natural—essential even—to do everything in your power to support your kids.

But what happens when generosity collides with your own retirement goals?

In Episode 106 of the Last Paycheck Podcast, Rob and Archie Hoxton explore the emotionally charged (and financially risky) territory of financially supporting adult children. It’s a conversation more and more parents are facing in today’s world of rising costs and economic uncertainty.

The Hidden Cost of Generosity

According to Rob and Archie, many families fall into the trap of “retirement sacrifice syndrome.” That’s when parents provide ongoing support to adult children at the expense of their own financial security.

While the desire to help is understandable, overextending yourself can delay retirement, reduce your future options, and—ironically—create a future where you may have to rely on your children later in life.

Know the Difference: Crisis vs. Chronic

Not all help is harmful. Supporting a child through a genuine short-term crisis (job loss, medical emergency) is different than funding a lifestyle they can’t afford. The challenge lies in recognizing the pattern—and having the courage to set boundaries.

Rob and Archie offer questions to help parents reflect:

  • Is this a one-time request or an ongoing habit?
  • Am I enabling dependency instead of encouraging independence?
  • Can I afford this help without reducing my retirement contributions?

Strategies for Setting Boundaries (Without Guilt)

The episode suggests three practical ways to support kids while staying financially responsible:

  1. Set a Monthly Limit: Choose a dollar amount you can afford and stick to it. Communicate it clearly.
  2. Offer Assets, Not Cash: Gifting a used car or helping with a down payment using appreciated assets can reduce tax implications and keep things structured.
  3. Be Transparent: Share your retirement goals with your children so they understand what’s at stake.

When to Say “No”

If you’re pausing retirement contributions, tapping into savings, or feeling resentment, it’s time to reassess. Helping shouldn’t come at the cost of your financial future. In fact, the best gift you can give your children might be the example of financial independence.

Are you helping your kids more than your future self?

Download our Parent’s Financial Boundary Audit and find out if your generosity is sustainable—or setting you back. Schedule a no-pressure consultation to see how your current support impacts your retirement plan.
Download the Self-Audit
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 105 – What’s Your Money Story? Childhood Beliefs That Still Shape Your Wallet

We all carry financial baggage—and most of it was packed before we turned ten.

In Episode 105 of Last Paycheck, Rob and Archie Hoxton explore how unconscious beliefs formed in childhood shape our adult financial habits. These “money scripts,” as defined by financial psychologist Brad Klontz, are emotional blueprints for how we think, feel, and behave around money.

Whether you’re a compulsive saver, impulsive spender, or anxious budgeter, this episode peels back the layers to help you understand why.

Money Memories That Stick

Archie shares his first financial memory: cutting grass for cash. Rob recalls matching Archie’s car savings, only to watch him game the system using gift money. These stories might seem small, but they reflect formative ideas—“Money is earned,” “Money can be leveraged,” or even “Money makes people anxious.”

Rob encourages listeners to ask themselves:
“What’s your first memory of money?”

The answer may reveal more than you think.

The Four Money Scripts

  1. Money Avoidance
    1. Belief: Money is bad or undeserved.
    2. Typical behavior: Chronic under-earning, guilt around wealth.
  2. Money Worship
    1. Belief: More money = more happiness.
    2. Typical behavior: Overspending, never feeling secure.
  3. Money Status
    1. Belief: Net worth equals self-worth.
    2. Typical behavior: Lifestyle inflation, keeping up appearances.
  4. Money Vigilance
    1. Belief: Always save, avoid risk.
    2. Typical behavior: Hoarding money, fear of spending—even when safe.

Rob and Archie stress that these scripts aren’t destiny. With awareness, reflection, and support, you can rewrite your narrative.

Why This Matters

Money scripts influence:

  • How you budget (or avoid it)
  • How you invest (or hoard cash)
  • How you talk to your spouse (or don’t)
  • How you prepare for retirement—or delay it entirely

Understanding your script doesn’t just help you manage money better. It helps you make decisions from clarity, not fear or habit.

Start With Reflection

  • What beliefs about money were modeled for you?
  • How do those show up in your life today?
  • Are they helping—or holding you back?

If your answers reveal patterns you’d like to change, you’re not alone. Rob and Archie recommend working with a financial advisor or therapist trained in financial behavior. The Financial Therapy Association (financialtherapyassociation.org) is a great resource.

Final Thought

You can’t change what you don’t acknowledge. But once you understand the money story you’ve been telling yourself—maybe since childhood—you can begin writing a new chapter.

Ever wonder why you save compulsively, overspend emotionally, or freeze when facing financial decisions?

It might trace back to beliefs formed in childhood. Download our Financial Baggage Self-Audit to uncover the money scripts that drive your decisions—and start rewriting your money story.
Download the Self-Audit
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 104 – The Cost of Financial Clutter—and How to Fix It

Are You Financially Organized? 5 Questions That Can Change Everything

You might know how much you earn. Maybe you even know what you spend each month. But do you know where all your accounts are? When your insurance renews? Who to call if something happens to you?

In Episode 104 of The Last Paycheck, Rob and Archie Hoxton discuss what financial advisors quietly observe: that disorganization is one of the biggest (and most underdiagnosed) threats to financial health.

We’re not just talking about a messy desk. We’re talking about forgotten accounts, lapsed insurance, missed deadlines, and decision fatigue caused by scattered information.

Here are five questions to ask yourself today to start clearing the fog:

1. Do You Know Where Your Money Is Going?

Budgeting is one thing. Awareness is another.

  • Are you tracking fixed vs. discretionary spending?
  • Are there subscriptions you don’t use?
  • Does your spending reflect your values—or just habits?

Tip: Use a spending tracker (even just for 30 days) to see where your money leaks are.

2. Are Your Accounts and Documents Organized?

Many people have IRAs they’ve forgotten about, bank accounts that barely earn interest, or insurance policies they haven’t reviewed in years.

  • Can you name all your active accounts?
  • Are your beneficiaries current?
  • Do you know how your assets are titled?

Tip: Create a one-page inventory that lists every account, document, and key contact.

3. Do You Have a System for Tracking?

Your financial dashboard doesn’t have to be fancy—but it does need to exist.

  • Are you using software, spreadsheets, or a binder?
  • Can you quickly check your net worth or upcoming bills?
  • Do you track tax documents, insurance renewals, or due dates?

Tip: Start with a monthly finance date—just one hour to check progress and prep for what’s next.

4. Can Your Partner or Loved Ones Step In If Needed?

One of the most overlooked issues: financial gatekeeping.

  • If something happened to you, would your spouse or child know where to find information?
  • Is your will, power of attorney, and insurance contact list easily accessible?

Tip: Consider creating a “financial fire drill” document. It doesn’t have to be public—but it should exist.

5. Are You Making Decisions Based on Goals—or Stress?

When everything feels chaotic, people tend to make reactive decisions—sell that stock, cancel that insurance, or pull money out prematurely.

  • Are you acting from a plan, or reacting to pressure?
  • Are your financial decisions aligned with long-term goals?

Tip: Use planning tools to give structure to your decisions. You don’t have to do this alone.

Final Thought

Financial organization is more than a task—it’s a discipline. It reduces mental load, helps avoid costly mistakes, and keeps you moving toward what actually matters.

Financial clutter creates costly mistakes.

Get organized with our Financial Command Center Worksheet—a step-by-step tool to help you consolidate accounts, track documents, and prep your plan for anything.
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 103 – The Truth About Millionaires (And Why They Probably Drive a Pickup Truck)

If you think millionaires are flashy, high-risk, fast-talking financial geniuses—you’re buying into a myth. According to Rob and Archie Hoxton in Episode 103 of Last Paycheck, the average millionaire doesn’t look anything like the pop culture stereotype.

And that’s good news—because it means that wealth is more attainable than most people realize.

So, What Do Actual Millionaires Have in Common?

Based on data and decades of advising real clients, here are the key shared traits:

  1. Ordinary Careers, Extraordinary Discipline
    The most common careers for millionaires include engineers, teachers, accountants, managers, and lawyers. These are solid, middle-class jobs—not celebrity roles or viral successes.
  2. They Live Below Their Means
    94% reported spending less than they earn. That simple act, repeated over time, is the engine of their success.
  3. They Avoid Credit Card Debt
    Three out of four self-made millionaires have never carried a balance on a credit card. Managing debt responsibly is foundational.
  4. They Don’t Wait for Inheritance
    Only 21% received any inheritance at all. Wealth wasn’t handed to them—it was built through consistent saving and investing.
  5. They Max Out Their 401(k)
    The 401(k) is often the single biggest contributor to millionaire status. Autopilot saving, employer matching, and decades of compounding create powerful momentum—especially in the later years of your career.

Why It Works

Compound interest is slow at first, then it snowballs. A 10% return on $10,000 is $1,000. But a 10% return on $500,000? That’s $50,000. Over time, the balance—not the contribution—drives your wealth.

At the same time, mortgages begin to reverse in your favor. In the final 5–10 years, you’re paying down principal fast, just as your investments are accelerating. Net worth builds from both directions.

Final Thought

Becoming a millionaire isn’t about luck, inheritance, or brilliance. It’s about time, consistency, and values. And it starts with the habits you can adopt today.

Want to know how close you are to becoming the millionaire next door?

Download our  Millionaire Habits Self-Check to compare your current financial habits against proven wealth-building strategies used by real, everyday millionaires.
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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 102 – Warren Buffett’s Lessons Every Retiree Should Live By

Warren Buffett may be stepping away from daily leadership at Berkshire Hathaway, but his investing wisdom continues to shape generations. In Episode 102 of Last Paycheck, Rob and Archie Hoxton reflect on two timeless pieces of Buffett advice—and how retirees can apply them to their own lives.

Lesson 1: Pay Off High-Interest Debt Before You Invest

Buffett once told a woman asking how to invest a small windfall: “What’s your credit card rate?” When she replied with 18%, he said, “I can’t beat that. Pay it off first.”

This is simple but powerful advice. Before putting money into retirement accounts, the market, or real estate, make sure you’ve eliminated any high-interest debt. Even a well-diversified portfolio can’t guarantee consistent double-digit returns. But avoiding interest payments of 18% or more is a guaranteed win.

Rob and Archie note that this principle often gets overlooked when people are eager to start investing. But in practice, the path to financial stability starts with debt elimination, then emergency savings, and then investing for the long haul.

Lesson 2: Stocks Are Safe—If You Give Them Time

Buffett is known for his unwavering belief in the long-term value of American companies. “You’re not buying a stock,” he says, “you’re buying a business.” That distinction matters. While the market may fluctuate wildly in the short term, the broader trend of American business growth over decades remains strong.

The Hoxtons explain how this philosophy is essential in retirement. Even if you’re no longer earning a paycheck, your investments still need to grow—to fund a retirement that could last 20 to 30 years or more. That means staying invested, avoiding panic in volatile markets, and trusting in long-term fundamentals.

Final Thoughts

Buffett’s approach is grounded in patience, humility, and realism. He doesn’t chase fads. He doesn’t try to time the market. He stays focused on what works—and encourages others to do the same.

For retirees, that means:

  • Paying down high-interest debt
  • Staying diversified
  • Remaining invested even in retirement
  • Thinking in decades, not quarters

Retirement isn’t the end of your investment journey—it’s a new chapter. Warren Buffett’s wisdom offers the perfect guide.

Ready to invest smarter?

Start by following Warren Buffett’s two-step checklist. Download our Investment Readiness Worksheet to evaluate your debt, mindset, and time horizon before jumping in.
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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 101 – Should You Take Social Security Early? It Depends on These 5 Key Factors

When should you take Social Security? It’s one of the most complex decisions retirees face.

In Episode 101 of Last Paycheck, Archie Hoxton and Jimmy Sutch walk through five major reasons someone might claim Social Security earlier than full retirement age. While the default advice often recommends waiting until age 70 for maximum benefits, the reality is far more nuanced.

1. Health and Longevity Expectations

If you expect to live into your late 80s or 90s, delaying Social Security could increase your lifetime payout. But if you have a family history of illness or personal health issues, it may make more sense to start sooner. Archie notes that the break-even point often falls in the mid-80s—if you’re unsure you’ll reach that, claiming early can be a rational choice.

2. Income Needs and Retirement Readiness

Many retirees don’t have large investment portfolios. If you need cash flow to cover basic living expenses, Social Security becomes a foundational income stream. Jimmy emphasizes that for some, claiming early isn’t just an option—it’s a necessity. Even forced early retirement due to layoffs or health can push this decision forward.

3. Legacy Planning Goals

What if your priority is passing on wealth to the next generation? In this case, taking Social Security early and investing it might help build an inheritance. This strategy assumes you don’t need the income immediately and can afford to put it to work elsewhere.

4. Doubts About Social Security Solvency

Worried the system won’t be around forever? You’re not alone. Archie places this concern in context—reminding listeners that Social Security has faced shortfalls before, and Congress has tools to fix it (like tax increases or raising the retirement age). Still, if personal peace of mind matters most, that’s a valid reason to file early.

5. Spousal Benefit Strategies

For couples with an age gap or income disparity, smart timing can boost household benefits. One spouse can claim early and then switch to a higher spousal benefit later. This staggered approach allows both cash flow and long-term gain.

Final Thought

There is no universal answer to when you should start Social Security. Instead of relying on a rule of thumb, consider your health, needs, legacy goals, and personal comfort with risk.

Wondering if you should take Social Security now—or wait?

Download our Social Security Timing Decision Tool to assess your health, income needs, and legacy goals so you can make the smartest choice for your situation.
Download the Tool
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.