Episode 112 – Should You Trust Financial Rules of Thumb? Here’s What to Know

When it comes to managing your money, simple advice is appealing. Save 10%. Pay off all your debt. Take Social Security at 70. But are these “rules of thumb” really helping—or could they be steering you off course?

In Episode 112 of Last Paycheck, Archie and Rob Hoxton dive into the most common financial shortcuts and challenge their usefulness in real-world scenarios.

The Truth Behind 6 Common Rules of Thumb

Let’s walk through the popular rules discussed—and why they may or may not work for your situation.

1. Save 10% of Your Income

This is often the first bit of advice people hear when starting a new job. And for someone just getting started, it’s not bad. But for someone playing catch-up or approaching retirement? 10% likely won’t cut it. You may need 15% or more, especially if you didn’t start saving in your 20s.

Bottom line: A good starting point, but not a long-term strategy.

2. You’ll Need 80% of Your Income in Retirement

Rob and Archie caution that this rule may be outdated. Many retirees end up needing closer to 100%—especially in the early, active years of retirement filled with travel and new experiences. Later, healthcare costs often rise, adding more pressure to retirement budgets.

Bottom line: Don’t underestimate your lifestyle or medical expenses.

3. The 4% Withdrawal Rule

The 4% rule assumes you can withdraw 4% of your portfolio annually (adjusted for inflation) for 30 years without running out of money. But markets fluctuate. Emergencies happen. Needs change.

Bottom line: It’s a guide—not a guarantee. Your plan should adapt to your life.

4. Be Debt-Free Before Retirement

This one feels good—but may not always be the smartest financial move. If you have a 2% mortgage and your investments earn more, paying off that mortgage early could cost you in long-term growth. The key is balance.

Bottom line: Don’t sacrifice future wealth for short-term comfort.

5. Keep 3–6 Months in an Emergency Fund

Archie and Rob agree this is situational. A business owner with unpredictable income may need more than six months saved. A risk-tolerant investor with ample liquidity elsewhere might be fine with less.

Bottom line: Customize your emergency fund to your lifestyle and risks.

6. Delay Social Security Until 70

While waiting can increase your monthly benefit, it’s not always the best move. Health concerns, family longevity, and income needs all play a role. For some, claiming early might be a better fit—even if it’s not “optimal” on paper.

Bottom line: When to claim Social Security should be a personal decision, not a rule.

The Takeaway: Rules Are Just a Starting Point

Financial rules of thumb exist for a reason—they offer simplicity and can be helpful in the absence of a plan. But life isn’t one-size-fits-all, and neither is your money.

If you’ve been relying on quick shortcuts or conventional wisdom, now is the time to upgrade from “general advice” to a personalized plan that reflects your unique life, goals, and risks.

Want to stress-test your assumptions?

Download our Are You Relying on the Right Rules? Self-Audit Tool or schedule a call with Hoxton Planning & Management to start building a custom strategy that actually works for you.
Download The Audit 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 111 – Tax Law Changes for 2025 – What Retirees and Charitable Givers Need to Know

If you’re nearing retirement, living on a fixed income, or focused on charitable giving, the 2025 tax law changes may affect you more than you realize. In Episode 111 of the Last Paycheck podcast, Archie Hoxton and advisor Emily Leslie explain what you need to know—and what to do now to prepare.

1. Overtime Deduction: A Win for Middle-Income Earners

If you’re working overtime to boost savings or pay off debt, there’s good news: from 2025 to 2028, up to $25,000 of overtime income will qualify for an above-the-line deduction. This benefit begins to phase out at $300,000 of household income (MFJ).

Action Step: If you expect to earn overtime in the coming years, adjust your tax planning to take advantage of this short-term window

2. The Senior Deduction: A Modest but Meaningful Break

While headlines claimed “No More Taxes on Social Security,” the reality is more nuanced. Instead of eliminating Social Security taxes, the new law introduces a $6,000 deduction for Americans age 65+ with income under $150,000 (MFJ). It’s available from 2025 to 2028 and doesn’t apply if you’ve already started benefits before age 65.

Who Benefits Most?

  • Retirees aged 65+ with modest income
  • Those delaying Social Security to full retirement age or beyond

3. Estate Tax Made (More) Predictable

For high-net-worth individuals and business owners, the estate tax threshold has been solidified. Now, individuals can pass on up to $15 million—and couples up to $30 million—without triggering estate tax liability. This change removes the previous uncertainty around sunset provisions.

If your estate is below that amount: No changes needed.
If it exceeds the threshold: Consider trusts, gifting strategies, or business succession plans.

4. SALT Deduction Expansion: Relief for High-Tax States

Taxpayers in states like New York, New Jersey, or California may benefit from the raised state and local tax (SALT) deduction cap—now $40,000 instead of $10,000. This provision begins phasing out at $500K income and reverts in 5 years.

Be cautious: Roth conversions or large IRA withdrawals could inadvertently push you over the $500K income limit, disqualifying you from the higher deduction.

5. Charitable Giving: More Options, More Rules

For donors, the new rules include:

  • Above-the-line deduction: Up to $2,000 for charitable gifts without itemizing
  • 0.5% AGI floor: You must give at least this amount before deductions kick in
  • $1,700 SGO credit: Donations to Scholarship Granting Organizations (SGOs) offer a dollar-for-dollar reduction in your tax bill

Pro Tip: Combining these strategies may reduce your taxable income while supporting causes you care about.

Final Thought

Tax laws are always changing—but the next few years offer unique planning opportunities. Whether you’re still working, recently retired, or managing a large estate, it’s important to understand how these changes affect your financial picture.

Want a quick way to review where you stand?

Download our free 2025 Tax Change Readiness Checklist to uncover what benefits you qualify for—and what steps you might want to take next. Schedule a free consultation to build a strategy that takes full advantage of the new law.
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 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.
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 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.
Download The 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 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.
Download the Guide
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 93: The Real Risks of Early Retirement – What You Haven’t Considered

Thinking about retiring in your 50s—or even your 40s? You’re not alone. The appeal of early retirement is stronger than ever. But before you submit that resignation letter, there’s a lot more to consider than just having “enough” saved.

In Episode 93 of the Last Paycheck podcast, CERTIFIED FINANCIAL PLANNER® Archie Hoxton and advisor Jimmy Sutch dive deep into the real risks of early retirement—and why it’s about more than just dollars and decades.

Early Retirement Is a Financial Shift—Not Just a Lifestyle Upgrade

Most early retirees envision freedom: time to travel, pursue hobbies, or simply escape the daily grind. But many are caught off guard by the structural, emotional, and economic complexities of retiring early.

You may no longer have a paycheck—but the expenses don’t stop:

  • Health insurance premiums
  • Unexpected home repairs
  • Market downturns in the first few years of retirement
  • Long-term inflation

These issues are especially problematic if you’re not eligible for Medicare yet or if most of your savings are tied up in accounts with early withdrawal penalties.

Ask Yourself:

  • Have I stress-tested my plan against a bear market in the first 5 years?
  • What if inflation is higher than projected for the next decade?
  • Can I bridge the gap between retirement and Medicare without draining my accounts?
  • Do I have a long-term income plan that adjusts with changing needs?

Many people rely on the 4% rule or online calculators that don’t factor in timing risk, tax sequencing, or variable spending. That might be fine for a theoretical plan—but not for a real-life retirement that could last 35 to 40 years.

It’s Not Just About Math—It’s About Meaning

Rob and Archie also explore the psychological impact of leaving the workforce earlier than your peers. The idea of “retiring to something” rather than “retiring from something” becomes vital.

Without a sense of purpose, structure, or community, early retirement can lead to boredom, regret, or even depression. That’s why retirees who plan not just financially—but emotionally—tend to report higher satisfaction over time.

What This Episode Emphasizes

  • Run a detailed plan that includes multiple scenarios—not just the average
  • Prepare for higher-than-expected spending in your first decade of retirement
  • Consider partial work or phased retirement as a buffer
  • Make sure your retirement isn’t just financially sustainable—but personally fulfilling

Final Thought

The dream of early retirement is possible. But only if you understand what it takes to turn that dream into a durable, purpose-filled reality. The earlier you want to retire, the more thoroughly you need to plan.

Curious whether your plan can support early retirement?

Our team at Hoxton Planning & Management can help you run the numbers, weigh your options, and make smart decisions for the long haul. Schedule a no-pressure consultation at www.hoxtonpm.com/schedule.
Schedule a Consultation
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 92: Don’t Blow It – Inheritance Mistakes to Avoid

Receiving an inheritance can be a blessing—but without a plan, it can quickly become a burden.

In Episode 92 of the Last Paycheck podcast, CERTIFIED FINANCIAL PLANNER® professionals Rob and Archie Hoxton share the most common mistakes people make after receiving a windfall—and how to avoid them. Whether you’re anticipating an inheritance or navigating one right now, this episode offers clear, actionable advice to help you protect your future.

Why Inheritance Planning Is More Than a Windfall

An inheritance may feel like a gift, but it comes with weight: emotional, financial, and often, legal. Without thoughtful planning, what starts as an opportunity can turn into a missed chance—or worse, a long-term liability.

Too many people treat inherited money as “found” money. But in doing so, they make emotionally driven decisions, ignore tax rules, or fail to integrate it into a bigger financial picture.

The Most Common Inheritance Mistakes

Rob and Archie outline the top pitfalls they see, including:

  • Treating it like bonus money: Inherited wealth is not a lottery win. It needs to be managed within the context of your overall plan.
  • Spending first, planning later: Emotions often override logic after a loved one passes. But reactionary decisions—big purchases, early retirement, excessive gifting—can be difficult to undo.
  • Ignoring tax implications: Different assets come with different tax treatments. For example, inherited IRAs have strict withdrawal rules, and selling appreciated assets too soon could trigger unnecessary capital gains.
  • Overlooking your own estate plan: Any major change in net worth should prompt a fresh look at your own will, trust, and beneficiary designations.
  • Letting your guard down: Inheritances often draw unwanted attention. Scams, pushy salespeople, and opportunistic acquaintances can make you vulnerable when you’re least prepared.

What to Do Instead

This episode emphasizes the power of patience and planning. Rob and Archie recommend:

  • Wait at least 6 to 12 months before making major decisions
  • Work with a financial advisor and tax professional to understand your options and obligations
  • Build a purpose-driven plan that aligns the inheritance with your long-term goals
  • Update your estate documents so your wishes are just as clear as those of the person who left you the gift

Ask Yourself

  • Do I know the tax treatment of each inherited asset?
  • Have I reviewed how this changes my retirement, insurance, or giving strategy?
  • Am I making decisions that reflect my values—or just my emotions?

Final Thought

The best way to honor a legacy is to use it wisely. With the right plan, an inheritance can support your life’s goals, create new opportunities, and even help you leave a legacy of your own.

Want to avoid common inheritance mistakes?

Download our free guide: Inheritance Mistakes to Avoid, or schedule a one-on-one consultation at www.hoxtonpm.com/schedule.
Download the Guide
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 85: Tired of Tax Season Chaos? Here’s How to Prepare Like a Pro

In Episode 85 of Last Paycheck, Rob and Archie Hoxton lay out a plan to make tax time easier and more strategic.

1. Decide Who’s Doing What

  • Book a CPA early
  • Block time for DIY filing
  • Gather your documents in advance

2. Get Organized

  • Account statements
  • Tax forms (1099s, W-2s)
  • Life event documentation

3. Don’t Skip the Review

You are legally responsible for what’s filed. Review every line.

4. Strategy > Scramble

Tax planning starts in November, not March. Make Roth contributions, harvest losses, and give charitably before year-end.

Make tax time smoother with our Tax Prep Organizer Kit.

Download the Kit
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.