Episode 136 – The Risk of Not Taking Risk: Why Completely De-Risking Your Portfolio Can Backfire

Insights from Last Paycheck Podcast Episode 136

Periods of global uncertainty have a way of rattling even the most disciplined investors. Geopolitical tension, market volatility, and unsettling headlines often spark the same question, especially among retirees.

Should I just get out of the market and play it safe?

In Episode 136 of the Last Paycheck, CFP professionals Archie Hoxton and Rob Hoxton tackle this question head-on. Their conclusion may surprise some listeners. While reducing risk feels comforting in the moment, completely de-risking an investment portfolio can introduce a different set of dangers, often more damaging and far less visible.

This episode focuses on what they call the risk of not taking risk.

Why the Desire to De-Risk Feels So Strong

Market volatility feels different when you are retired or nearing retirement. Your portfolio is no longer just a long-term growth engine. It is a primary income source meant to support you for the rest of your life.

Rob acknowledges how uncomfortable it can feel to watch a retirement portfolio drop 20 or 25 percent, even if those declines are historically temporary. That discomfort often leads to a powerful urge to stop the pain by moving to cash.

But reacting emotionally to volatility can create long-term consequences that are easy to underestimate.

Timing the Market Is a Two-Step Gamble

Many investors assume the danger lies in selling at the wrong time. Archie points out that timing the market requires getting two decisions exactly right. You must know when to get out and when to get back in.

History shows that very few investors manage this consistently without luck. Getting back into the market is often harder than getting out. Fear lingers, and the next downturn always feels just around the corner.

As a result, investors who move to cash often stay there far longer than planned, missing critical periods of recovery.

Risk Does Not Disappear. It Changes Form

One of the central ideas in this episode is that risk never disappears. When you remove market risk entirely, you take on other risks that are quieter but potentially more destructive.

Archie describes cash as the carbon monoxide of investing. It feels safe because there is no visible volatility, but the damage happens slowly and silently.

Three risks stand out.

Inflation Risk

Cash offers no meaningful protection against inflation. Even modest inflation steadily erodes purchasing power year after year.

An account balance may stay the same, but what that money can buy shrinks over time. Over ten, twenty, or thirty years, the cumulative effect can be devastating. Inflation does not announce itself loudly most years, but its impact compounds relentlessly.

Longevity Risk

No one knows how long retirement will last. Planning based on a fixed life expectancy can be dangerous, especially when inflation and unexpected expenses are factored in.

Rob explains why planners often assume longer lifespans, sometimes into the mid-nineties. The risk is not dying early. The risk is living longer than expected and running out of money.

Without growth in a portfolio, longevity risk increases dramatically.

Opportunity Cost

Perhaps the most overlooked risk is opportunity cost.

Every year spent out of the market is not just a lost return for that year. It is the loss of decades of compounded growth. Archie illustrates how even modest missed returns can translate into hundreds of thousands of dollars over time.

Those lost dollars may be needed later for healthcare, long-term care, or simply maintaining quality of life.

A Better Way to Think About Risk

Rather than viewing risk as something to eliminate, Archie and Rob advocate managing it intentionally.

One helpful framework is a bucket approach. Short-term needs are covered by cash. Intermediate needs are supported by bonds. Long-term needs are invested in growth assets like stocks.

This structure allows retirees to weather market downturns without panicking. When stocks decline, income can come from cash and bonds, giving the long-term portion of the portfolio time to recover.

The key is not avoiding risk entirely, but taking the right amount of risk for the right time horizon.

Investing Should Never Happen in a Vacuum

Throughout the episode, Rob emphasizes that investment decisions must be made within the context of a broader financial plan.

At Hoxton Planning & Management, portfolios are evaluated based on potential ranges of outcomes over defined periods, not just average returns. Those ranges are then compared to a client’s spending needs and long-term goals.

This approach allows clients to understand what short-term volatility might look like and whether their plan can withstand it. When risk is measured and aligned with a plan, it becomes far less frightening.

The Real Goal: Balance

The takeaway from this episode is not that risk should be ignored or embraced recklessly. Taking too much risk can be just as dangerous as taking too little.

For most retirees, the appropriate level of risk is moderate. Enough to outpace inflation and support longevity, but not so much that short-term volatility threatens essential income needs.

Finding that balance is far easier with clear planning, realistic expectations, and the right tools.

Your Next Step

If you have ever wondered whether your investment strategy truly aligns with your retirement goals, this is the right time to check.

Hoxton Planning & Management offers a free Investment Alignment Worksheet designed to help you evaluate whether the risk you are taking matches what you are trying to accomplish long term. It is a practical way to move from fear-based decisions to informed ones.

You may also choose to schedule a complimentary conversation with the Hoxton team to review your portfolio within the context of a full financial plan.

Risk is unavoidable. Mismatch is optional.

Download the Investment Alignment Worksheet or schedule your meeting.
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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 135 – The Retirement Countdown: Five Things You Must Do in the Final Year Before Retirement

Insights from Last Paycheck Podcast Episode 135

When retirement is a year away, excitement and anxiety often show up at the same time. Even people who have planned diligently for decades can feel a surge of stress as the reality of a final paycheck approaches.

In Episode 135 of the Last Paycheck, hosts Archie Hoxton and Rob Hoxton, CFP professionals at Hoxton Planning & Management, walk through what they call the Retirement Countdown. These are the five most important things to address when you are roughly a year or less from retiring.

While many of these steps are ideally done earlier, this episode focuses on what truly must be clarified before you make the transition from earning a paycheck to living off what you have saved.

Why the Final Year Feels Different

Retirement represents more than a financial shift. It is a psychological one.

During your working years, income feels controllable. You can work longer, take on more responsibility, or delay retirement if needed. Once you retire, income comes from decisions already made. Savings, investments, pensions, and Social Security replace a paycheck you could once rely on.

That shift can be deeply unsettling. Archie and Rob emphasize that thoughtful planning during this final year can dramatically reduce stress and replace uncertainty with confidence.

Step One: Run the Numbers and Identify the Gap

The first step in the retirement countdown is deceptively simple. Take inventory.

You need to clearly identify every source of income you expect to have in retirement. This may include Social Security, pensions, annuities, part-time work, or other income streams. Then compare that income to your anticipated spending.

For most retirees, income does not fully cover expenses. The difference between what comes in and what goes out is the retirement gap. That gap must be filled by withdrawals from your investment portfolio.

Understanding this number is foundational. Without it, every other decision becomes guesswork.

Step Two: Build a Smart Withdrawal Strategy

Once the gap is identified, the next question becomes where the money will come from.

Most retirees have multiple types of accounts. Pre-tax accounts like IRAs, Roth accounts, and taxable brokerage accounts all behave differently from a tax standpoint. The order in which you draw from these accounts can have a meaningful impact on how long your money lasts.

Archie and Rob stress the importance of coordinating withdrawals to minimize taxes and manage required minimum distributions later in retirement. A thoughtful distribution strategy can extend portfolio longevity and reduce unnecessary tax drag.

Step Three: Plan for Healthcare Costs

Healthcare is one of the most underestimated expenses in retirement.

Medicare eligibility begins at age 65, but even then, premiums for Part B, Part D, and supplemental coverage can be substantial. Those premiums are often tied to income, which means withdrawal decisions can directly affect healthcare costs.

For those retiring before Medicare eligibility, the challenge is even greater. Private health insurance can represent a significant financial burden and must be planned for carefully.

Rob shares an example of recent retirees facing healthcare costs approaching $26,000 per year. Yet many retirement plans fail to include a realistic healthcare line item at all.

Step Four: Design a Scalable Lifestyle

One of the most important concepts discussed in this episode is lifestyle scalability.

Retirement spending does not need to be rigid. In fact, flexibility can be a powerful planning tool. Being willing to spend a little less during market downturns and a little more during strong periods can help protect long-term financial security while preserving quality of life.

Scalability requires clarity. You need to know which expenses are essential and which are discretionary. That clarity often comes only through ongoing planning and regular review.

Debt can be a major obstacle to flexibility. While certain types of debt may make sense in retirement, high consumer debt reduces your ability to adjust spending when needed. Eliminating unnecessary debt before retirement can significantly increase peace of mind.

Step Five: Get Your Legal and Estate Documents in Order

The final step in the retirement countdown is administrative, but no less important.

Wills, trusts, powers of attorney, healthcare directives, and beneficiary designations should all be reviewed and updated. Documents should be easy to access, and trusted individuals should know where to find them.

Archie and Rob frame this as one of the greatest gifts you can give your family. Grieving a loss is hard enough. Leaving behind confusion or disorganization only adds to that burden.

Getting these documents finalized before retirement allows you to focus on living well, knowing that your affairs are in order.

The Value of Ongoing Planning

Throughout the episode, Rob makes a critical point. Retirement planning is not a one-time exercise.

While it is possible to create a snapshot plan, the greatest value often comes from ongoing management. Markets change. Spending evolves. Health needs shift. Having a plan that adapts over time helps prevent small issues from becoming serious problems later in life.

Your Next Step

If you are within a year or two of retirement, now is the time to move from uncertainty to clarity.

Hoxton Planning & Management offers a Retirement Readiness Checklist designed to help you assess income sources, spending, healthcare planning, and portfolio strategy in one place. It is a practical starting point for understanding where you stand and what still needs attention.

You may also choose to schedule a complimentary conversation with the Hoxton team to walk through your retirement countdown and ensure no critical steps are overlooked.

Retirement is a major transition. It deserves a plan.

Download the Retirement Readiness Checklist or schedule your meeting.
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.

Episode 133 – Big Brand or Independent Advisor? How to Choose

Insights from Last Paycheck Podcast Episode 133

Choosing a financial advisor is one of the most consequential financial decisions you will ever make. Yet many people start in the same place. They open a browser, search for “financial planner near me,” and are immediately faced with a confusing choice.

Do you work with a large, nationally recognized firm?
Or do you choose a local, independent advisor?

In Episode 133 of the Last Paycheck, Rob Hoxton and Jimmy Sutch, both financial planners at Hoxton Planning & Management, unpack this question in a practical, transparent way. Rather than positioning one option as universally better, they focus on what clients should understand before deciding who to trust with their financial future.

Understanding the Two Models

At a high level, most financial advisors fall into one of two categories:

  • Advisors affiliated with large firms such as banks, wirehouses, or broker-dealers
  • Advisors working at independent Registered Investment Advisor (RIA) firms

While both can provide competent advice, the structure behind each model affects how decisions are made, how advice is delivered, and whose interests are prioritized.

How Large Firms Operate

Large financial institutions offer scale, brand recognition, and extensive research capabilities. For many advisors, they provide a structured environment with built-in compliance, oversight, and predefined investment platforms.

Rob Hoxton brings a unique perspective to this discussion. Over his 30-plus-year career, he has operated both as an independent advisor and as part of a large Wall Street firm, that experience revealed a key distinction.

In large organizations, many investment decisions, recommendations, and guardrails come from centralized committees. These committees may be far removed from the day-to-day realities of individual clients, especially those living outside major metropolitan areas.

This does not mean advisors at large firms are ineffective or untrustworthy. In fact, Rob emphasizes that many excellent advisors work in those environments. However, the structure itself limits how customized and locally responsive advice can be.

What Independence Really Means

Independent advisory firms operate differently.

At independent firm, decisions are often made at the local level with the specific client in mind. There are usual no centralized product mandates dictating what advisors can or cannot recommend.

Jimmy Sutch explains that many clients value this independence because it aligns incentives more clearly. Advisors are accountable directly to the client, not to a corporate hierarchy. In smaller communities, that accountability is amplified. Advisors see their clients at the grocery store, at community events, and at their children’s baseball games.

That proximity creates trust and responsibility in a way no national brand can replicate.

Fiduciary vs. Suitability Standards

One of the most important distinctions discussed in this episode is the difference between fiduciary and suitability standards.

A fiduciary is legally obligated to act in the client’s best interest at all times. Suitability, by contrast, requires only that a recommendation be appropriate, not necessarily optimal.

This distinction becomes murky when advisors operate in environments where they may act as a fiduciary in some situations but not others. Rob points out how confusing this can be for clients trying to determine when advice is truly conflict-free.

Independent RIAs typically operate under a fiduciary standard across all aspects of their work. For many clients, this clarity is a deciding factor.

Custody, Safeguards, and Misconceptions

A common concern when choosing a smaller firm is safety. Clients often ask whether independent advisors can offer the same protections as large institutions.

Rob and Jimmy address this directly. Independent advisors do not normally hold client assets themselves. Instead, assets are custodied at well-known third-party firms such as Fidelity or Charles Schwab. These custodians provide the same safeguards, reporting, and protections clients expect from large institutions.

This separation between advisor and custodian is intentional and plays a critical role in protecting clients from fraud or misuse of assets.

Conflicts of Interest and Transparency

No financial relationship is entirely free of conflict. Even an independent advisor wants a prospective client to say yes. The difference lies in disclosure and transparency.

Rob and Jimmy explain that commissions can still exist in certain products, particularly insurance solutions, even within a fiduciary framework. The key is that compensation is clearly disclosed and aligned with the client’s best interest, not hidden behind opaque structures.

Clients should feel comfortable asking how their advisor is compensated and why specific recommendations are being made.

The Changing Landscape of Independence

The episode also explores a newer trend. Private equity and consolidation are reshaping the advisory industry. Many firms still market themselves as “independent” while operating at a massive scale that closely resembles traditional broker-dealer models.

While these firms may technically qualify as RIAs, important decisions are often centralized, reducing the very independence clients believe they are getting.

Rob draws a clear distinction between independence in name and independence in practice.

What Should Clients Take Away?

This episode is not about steering everyone toward one model. Instead, it equips listeners with the right questions to ask.

  • Who ultimately makes decisions about my financial plan?
  • Is my advisor acting as a fiduciary at all times
  • Where are my assets held and who safeguards them?
  • How transparent is the compensation structure
  • How customized is the advice to my life and community?

Understanding these factors helps clients make confident, informed choices rather than relying on brand recognition alone.

Your Next Step

If you are currently evaluating financial advisors, or wondering whether your current relationship truly aligns with your best interests, clarity is the first step.

Hoxton Planning & Management offers a Retirement Readiness Checklist designed to help you evaluate your financial picture objectively. It can also serve as a useful framework when comparing advisory relationships.

You may also choose to schedule a complimentary conversation with the Hoxton team to ask questions, understand their process, and determine whether an independent approach is right for you.

Start with clarity.

Download the Retirement Readiness Checklist or schedule a meeting with us!
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.

Episode 132 – Fun Facts About the Stock Market That Matter for Retirement

Insights from Last Paycheck Podcast Episode 132

When most people think about the stock market, they focus on headlines. Is the market up or down today? Should I wait to invest? Is this time really different?

In Episode 132 of the Last Paycheck, hosts Archie Hoxton and Rob Hoxton step back from the noise and share a series of data-driven “fun facts” about the stock market. While some of the statistics are surprising, the real value lies in what they reveal about long-term investing, retirement planning, and how everyday investors actually benefit from participating in the market.

These are not trivia points. They are perspective builders.

Below are the most important takeaways, and why they matter to your financial future.

1. The Stock Market Has a Strong Long-Term Track Record

Since the end of World War II in 1945, the S&P 500 has delivered an average annual total return of roughly 13 percent. Even more striking, about 79 percent of all years since 1945 have been positive years for the market.

That means in any given year, the odds favor positive returns roughly four out of five times.

This matters because many investors hesitate to invest due to fear of short-term losses or uncertainty about what comes next. History shows that market declines are the exception, not the rule. Long-term participation has consistently rewarded patience.

2. “This Time Is Different” Almost Never Is

It is human nature to believe the current market environment is unprecedented. Political events, economic uncertainty, rising interest rates, global conflict. Every generation feels like they are facing something entirely new.

The data tells a different story.

Markets have endured wars, recessions, inflation spikes, bubbles, crashes, and recoveries. Despite all of it, the long-term trend remains intact. What feels unique in the moment is often just another chapter in a very long book.

This perspective is critical for investors who are tempted to abandon their plan when emotions run high.

3. The S&P 500 Evolves, and That Is the Point

Many people assume the S&P 500 represents the same companies decade after decade. In reality, the index is constantly changing.

Since 1999, only 193 of the original 500 companies remain in the S&P 500 today. The rest have been replaced due to mergers, acquisitions, declines, or loss of relevance.

This constant turnover is not a flaw. It is a feature.

Owning the S&P 500 means owning an evolving collection of leading U.S. companies, not clinging to yesterday’s winners. It allows investors to benefit from innovation and economic growth without needing to guess which individual companies will succeed next.

4. Time in the Market Beats Timing the Market

One of the most powerful illustrations shared in this episode centers on a simple example.

If you invested $1,000 in the stock market in 1945, stayed fully invested, and reinvested all dividends, that investment would be worth approximately $7.3 million today.

However, if you tried to time the market by only investing during certain months or skipping periods you thought were risky, the results change dramatically. In some scenarios, that same $1,000 would grow to only a few hundred thousand dollars.

The lesson is clear. Missing even relatively small windows of market participation can drastically reduce long-term outcomes.

5. Dividends Are Not a Side Detail. They Are a Core Driver of Growth

One of the most overlooked components of investing returns is dividends.

When dividends are reinvested, they significantly amplify long-term growth. In the example above, removing dividend reinvestment reduces the ending value from millions to a fraction of that amount.

Dividends represent real profits paid by real companies. Reinvesting them means continuously buying more ownership in productive businesses over time. This compounding effect is one of the most powerful forces in long-term investing, yet it is often ignored in casual market conversations.

6. Everyday Households Own Most of the Stock Market

Many people believe the stock market is dominated by hedge funds, institutions, or billionaires. In reality, U.S. households own more than 50 percent of the public equity markets.

That ownership happens through retirement accounts, pensions, mutual funds, ETFs, and individual brokerage accounts. Hedge funds, by comparison, account for only a small percentage of total market ownership.

In other words, the stock market is largely owned by people saving for retirement, education, and long-term financial goals. Participating in the market means participating in the growth of the broader economy, not competing against it.

7. Efficient Markets Support Retirement Success

The United States has one of the most efficient capital markets in the world. Businesses can raise capital directly from investors, and investors can participate in business growth without needing insider knowledge or complex strategies.

This efficiency is a key reason the stock market has been such a powerful tool for retirement planning. It allows long-term investors to grow wealth systematically, transparently, and at scale.

As Archie and Rob emphasize, the goal is not speculation. The goal is participation.

Bringing It All Together

These stock market facts reinforce a simple but powerful message. Successful investing is not about predicting the next market move. It is about having a plan, staying disciplined, reinvesting intelligently, and aligning your strategy with your long-term goals.

Markets will rise and fall. Headlines will come and go. What matters most is whether your financial plan is built to endure all of it.

Your Next Step

Understanding how the market works is only useful if it connects to your personal retirement plan.

If you want to assess whether your current strategy is built for long-term success, we recommend starting with Hoxton Planning & Management’s Retirement Readiness Checklist. It helps you evaluate income sources, investment alignment, risk exposure, and planning gaps that could impact your future.

Alternatively, if you prefer a more personalized conversation, you can schedule a complimentary, no-pressure meeting with the Hoxton team to review your situation and next steps.

Take action today.

Download the Retirement Readiness Checklist or schedule your meeting Schedule a meeting with us!
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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 131 – How Financial Planning Helps You Live More Meaningfully

Weekly wisdom to help you retire—and stay that way.

At Hoxton Planning & Management, we often say financial planning is about more than money—it’s about helping people live lives that are rich in purpose, security, and joy. In this episode of The Last Paycheck, hosts Archie Hoxton and Rob Hoxton share two powerful, real-life stories from their careers as CERTIFIED FINANCIAL PLANNER™ professionals. These tales—one a cautionary lesson, the other an inspiring example—highlight the emotional, relational, and life-altering power of thoughtful financial planning.

Story One: When a Friend's Advice Costs More Than Just Money

Archie opens the episode with a sobering story from early in his career. A client, newly assigned to him after her previous advisor retired, was nearing or already in retirement and relying on her investment portfolio to fund her lifestyle. Despite Archie’s prudent advice to maintain a diversified portfolio—including bonds and other risk-adjusted assets—she was swayed by a friend in an investment club who encouraged her to move all of her funds into high-growth tech stocks, the so-called FANG stocks (Facebook, Apple, Amazon, Netflix, Google).

Her friend’s rationale? “These are the only stocks that matter. Everything else is holding you back.”

Unfortunately, just months later, the market took a sharp downturn, and those same stocks lost nearly half their value. Because the client was living off her investments, that loss meant selling significantly more shares at depressed prices to meet her income needs—or worse, panic-selling and locking in catastrophic losses.

The lesson is clear: financial planning isn’t about chasing returns—it’s about designing a strategy that matches your stage of life, risk tolerance, and real-world goals. Investment advice from well-meaning friends or headlines rarely considers the whole picture. And as Archie puts it, “Be careful who you take advice from. Most people don’t know what they don’t know.”

Story Two: Giving While Living—Leaving a Legacy that Matters

Rob follows with a story that strikes an entirely different emotional tone—one that illustrates the life-changing potential of financial planning done right.

He tells the story of a long-time client couple with no children. The wife, a former reading teacher, had a deep love for their local public library where she regularly volunteered to read to children. The couple had always intended to leave a significant portion of their estate to the library to expand its small children’s section—ideally with a reading room named in her honor. But when she was diagnosed with a terminal illness, the couple worried that giving money away too soon might leave the surviving spouse financially insecure.

Rob ran the numbers. And what the planning revealed was that they didn’t need to wait. They had enough assets to fulfill their philanthropic goals and ensure long-term financial stability.

The result? Before her passing, she was able to see the new children’s reading room built and named after her. She spent her final months doing what she loved—reading to children in the space she helped create.

This story exemplifies what’s possible when financial planning is approached not just as a numbers game, but as a way to help people live more richly, with clarity and intention. The wife’s legacy lives on, and the husband’s peace of mind was preserved through careful planning.

Take the Next Step Toward Financial Clarity

These aren’t just anecdotes. They’re proof that working with a trusted advisor isn’t just about retirement income or minimizing taxes—it’s about transforming financial uncertainty into peace, possibility, and purpose.

Whether you’re navigating retirement, weighing a gift to your favorite charity, or just trying to avoid a costly mistake, a solid financial plan provides the clarity you need to make decisions that align with your values.

As Rob puts it, “Financial planning helps people live their lives more richly.” That richness isn’t always measured in dollars—it’s measured in impact, legacy, and peace of mind.

Take the Next Step Toward Financial Clarity

If you’re wondering how prepared you are to create your own version of a meaningful life, take our free Financial Freedom Score assessment. In just a few minutes, you’ll gain insight into your financial health and areas that might need attention. Or, download our Retirement Readiness Checklist—a simple but powerful tool to help you evaluate your goals, timelines, and needs as you prepare for life’s next chapter.
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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.
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 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.