Advisor vs. DIY: Should You Hire a Financial Advisor?

Posted On January 6, 2026 By Scott Stratton, CFP(R), CFA In Financial Planning / No Comments

A Practical Guide for Baby Boomers and Pre-Retirees With $500,000–$5M in Investments

Deciding whether to manage your financial plan yourself or hire a financial advisor is one of the most important decisions a retiree — or soon-to-be retiree — will make. Some investors are comfortable with spreadsheets and brokerage platforms. Others prefer the confidence that comes from a trusted partner.

This article helps you answer the core question:

Do you need a financial advisor — or can you reliably manage your own financial plan?

It’s written for baby boomers and pre-retirees with $500,000 to $5 million in investable assets, many of whom are planning for retirement income, tax timing, sequence of returns risk, and healthcare decisions.

What Does “DIY” Financial Management Really Mean?

DIY (“do it yourself”) financial management means you make investment and planning decisions yourself, without ongoing professional advice.

Typical DIY responsibilities include:

Choosing and rebalancing investments
Planning for retirement income
Tax planning and filing
Social Security claiming decisions
Estate and legacy considerations
Medicare and health insurance timing

DIY may be a good fit if:

You enjoy financial strategy and research
You have time and discipline to stay current with tax law and markets
Your financial situation is relatively simple

However, DIY is not one-size-fits-all, especially as complexity rises in retirement.

When DIY Might Be Adequate

Here are situations where managing your own finances can be reasonable:

🔹 Your financial picture is straightforward

For example:

You are approaching retirement with basic investments
You want a simple 3-fund portfolio
Your income sources are predictable

🔹 You already have strong financial knowledge and interest

If you understand retirement income sequencing, tax brackets, RMDs, Social Security strategy, and risk tolerance, you may handle much of the work yourself.

🔹 You don’t want or need ongoing advice

Some people prefer autonomy and avoid professional guidance intentionally — and they do fine with discipline and research.

🔹 Your goals are limited

For example:

You simply want to minimize fees
You plan to follow a passive indexing strategy

Even then, be mindful that doing it right still requires avoiding emotional trading, understanding tax consequences, and staying informed about changes to laws and markets.

When DIY is Risky — and Why Many Retirees Choose an Advisor

Most of the biggest financial mistakes retirees make are not about picking the right funds but about when and how to act — and how to avoid costly timing and tax errors.

Here are common areas where DIY falls short:

❌ Social Security Timing Errors

Different claiming ages can result in significantly different lifetime income. Not taking advantage of delayed retirement credits, or calling them too early, can cost tens of thousands of dollars.

(See: Social Security — It Pays to Wait)

❌ Tax Inefficiencies and Missed Opportunities

Taxable income sequencing — particularly with Roth conversions, capital gains, IRA withdrawals, and RMDs — is not intuitive. Avoiding surcharges like Medicare IRMAA and optimizing your tax brackets often requires modeling across multiple years.

(See: Roth Conversions After 60 — When They Make Sense and How to Reduce IRMAA)

❌ Required Minimum Distribution (RMD) Complexity

As of 2026, most retirees must begin RMDs at age 73 or later. Planning how and when to withdraw assets without unnecessary tax drag is a deep, ongoing exercise — not a one-time event. Mistakes can cost taxes and disrupt retirement income.

(See: Can You Reduce Required Minimum Distributions??)

❌ Healthcare Cost Planning

Early retirees often spend years on the ACA marketplace. Predicting how subsidies work — and how income timing affects them — is not something most DIYers manage well on their own.

(See: Using the ACA to Retire Early)

❌ Emotional Bias and Behavioral Risk

DIY investors often make their worst decisions exactly when they matter most — during market drops or volatility. A professional can provide emotional discipline, protect against timing risk, and restore perspective.

So When Does a Financial Advisor Actually Help?

A financial advisor — especially a fiduciary planner — adds value when your situation goes beyond “simple numbers.”

Here are common retirement scenarios where advisors add measurable value:

✔ You want a comprehensive retirement plan

This includes:

Income sequencing
Tax coordination across sources
Withdrawal strategy
Estate and legacy planning

✔ You have multiple income sources

Examples:

IRA/401(k)
Roth accounts
Social Security
Pension
Rental or business income

Balancing these for tax efficiency and longevity is hard.

✔ You want ongoing planning and updates

Retirement is not static — markets change, tax laws shift, and personal priorities evolve. Advisors help adjust the plan over time.

🔹 Planning for Cognitive Changes Over Time

Most retirees plan for longevity — the possibility of living a long life — but fewer plan for the reality that managing finances can become more difficult later in life, even for very capable people.

This isn’t about intelligence or financial knowledge. It’s about recognizing that decision-making often becomes harder under stress, illness, or cognitive decline, which affects a significant portion of people as they age. The changes are often gradual and not immediately obvious.

A trusted financial advisor can provide continuity over time — monitoring accounts, helping prevent costly mistakes, and serving as a steady presence if managing finances becomes more challenging later on. For many families, this aspect of advice is less about investment returns and more about protecting independence and dignity over the long term.

This is one reason many retirees choose to establish an advisory relationship before they feel they “need” it.

🔹 Ensuring a Smooth Transition for Your Spouse and Family

In many households, one person naturally takes the lead on financial decisions. If something were to happen, the surviving spouse or beneficiaries may suddenly be responsible for complex financial choices during an emotionally difficult time.

Without an established advisor relationship, this often leads to:

Rushed decisions
Unnecessary taxes
Poor investment changes
Or a scramble to find trustworthy guidance

Working with a fiduciary advisor helps ensure continuity. Your spouse already knows who to call, understands the overall plan, and isn’t forced to make major decisions without context or support.

For many families, this is one of the most important benefits of professional advice — peace of mind that the people you care about will not be left on their own.

Advisor Costs vs. DIY Tradeoffs

When people compare DIY investing to working with an advisor, the conversation often focuses on fees. Cost matters — but it’s only one part of the equation.

For retirees and pre-retirees with $500,000 to $5 million in investments, the more relevant question is often:

What risks am I trying to manage, and who helps me manage them if life doesn’t go as planned?

Investment returns are important, but tax efficiency, income coordination, behavioral discipline, and continuity often have a larger impact on long-term outcomes.

When DIY Might Still Make Sense

You might thrive with DIY if:

You have simple finances and clear goals
You know exactly what you’re doing
You are disciplined about rebalancing, taxes, and plan updates
You are not relying on this investment strategy for major life needs (e.g., retirement income, healthcare costs, college funding)

Even in these cases, one professional review of your plan can be valuable and cost-effective.

What Good DIY Looks Like

If you choose to DIY, here’s what successful DIY retirees have in common:

✔ Clear, written retirement income plan
✔ Annual tax and withdrawal modeling
✔ Solid emergency liquidity
✔ Asset location planning
✔ Intentional Roth vs traditional mix
✔ Awareness of Medicare/ACA/IRMAA implications
✔ Annual review of goals and asset performance

If you are not doing all of these, you’re probably leaving money and peace of mind on the table.

How a Fiduciary Advisor Works With You

A fiduciary financial advisor:

Must put your interests ahead of their own
Does not “sell” you proprietary products, but offers independent, objective advice
Designs a holistic plan tailored to your goals
Communicates clearly and frequently
Helps you stay on course through market cycles

From understanding RMD timing to Roth conversion sequencing, to Social Security optimization, the value is in coordination, not just calculation.

🔹 Frequently Asked Questions

Do I need a financial advisor if I’ve managed my own investments successfully?
Possibly not — especially if your situation is simple and you enjoy managing it. However, many successful DIY investors choose an advisor later in life for help with tax coordination, retirement income planning, and continuity as circumstances change.

Is hiring an advisor about giving up control?
No. A fiduciary advisor works with you, not instead of you. You remain in control of decisions, while benefiting from experience, planning structure, and an objective second set of eyes.

What happens if I’m no longer able to manage my finances someday?
This is where having an established advisor relationship can be valuable. An advisor can help provide continuity, work with trusted family members, and help ensure your plan continues to be followed.

Can I work with an advisor remotely?
Yes. Many retirees work successfully with advisors nationwide through secure video meetings, electronic document sharing, and regular communication — without being tied to a local office.

Can You Use the ACA to Retire Early in 2026?

Posted On January 5, 2026 By Scott Stratton, CFP(R), CFA In Retirement Planning / No Comments

You can sometimes retire before age 65 if you smartly plan your health coverage and income — but 2026 brings important changes to ACA marketplace subsidies you need to understand.
For many early retirees with $500,000–$5 million in investable assets, avoiding surprise medical costs is essential to making a retirement plan work.

How ACA Premium Tax Credits Work (2026)

In 2026, the Affordable Care Act (ACA) still offers Premium Tax Credits (PTCs) to help reduce the cost of health insurance — but the enhanced subsidies that made them extremely generous during 2021-2025 have expired.
Under the basic ACA rules:

Premium tax credits are available for households with incomes between 100% and 400% of the Federal Poverty Level (FPL), adjusted for household size.
For 2026 coverage (based on 2025 poverty guidelines), the 100–400% FPL income ranges are approximately:

Household Size	100% FPL	400% FPL
1 person	$15,650	$62,600
2 people	$21,150	$84,600
3 people	$26,650	$106,600
4 people	$32,150	$128,600

The Premium tax credits are based on a sliding scale of expected premium contributions as a percentage of income. The lower your income, the higher your credit.

Important change for 2026:
The enhanced subsidies that lowered required contributions and removed the 400% income eligibility cap expired on December 31, 2025. This means ACA premiums are generally less subsidized in 2026 than they were in 2021-2025, and many early retirees who expected very low premiums are seeing higher premiums in 2026.

What the Subsidy Changes Mean in Practice

Higher Premiums Unless Expected Income Is Low

The enhanced tax credits made ACA plans very affordable in recent years, sometimes resulting in zero premiums for middle-income households. Those enhancements are no longer in effect for 2026 coverage unless Congress renews them.

Without enhancements, a household above 400% of FPL (~$84,600 for two people) typically does not qualify at all for premium tax credits. This means early retirees who once qualified for substantial subsidies may now face steeper costs in 2026 — a factor you must include in retirement income planning.

How ACA Coverage Can Still Support Early Retirement

Even with subsidy changes, the ACA can be part of an early retirement transition if you strategically manage your income until after the year you turn 65. Even though the credits end the month you turn 65 and enroll in Medicare, the PTCs are based on your full year household income.

1. Control Your Modified Adjusted Gross Income (MAGI)

Premium Tax Credits are based on MAGI. To maximize your credit, you have to minimize your MAGI. What counts towards your MAGI?

Income from wages, Social Security, and pensions
Interest and Capital Gains
IRA and 401(k) Distributions
Roth Conversions

What does not count towards your MAGI? Where can you access money for expenses?

Roth IRA and Roth 401(k) Distributions are non-taxable
You can use Health Savings Account (HSA) withdrawals to pay for deductibles and out of pocket expenses. It’s a great idea to build up an HSA in advance of retirement. You cannot, however, use an HSA to pay for insurance premiums, except while you are receiving unemployment benefits.
Build up cash reserves in a taxable account to avoid taking taxable distributions or starting SS or Pensions.

2. Delay Higher Income Events Where Possible

If possible:

Postpone Social Security until benefits are higher later
Delay large Traditional IRA withdrawals until after age 65
Manage capital gains timing

These steps may keep you within ACA income eligibility in the early years of retirement. It is important, however, that your income is not Zero – if your income is below 100% of the Poverty Level, you are eligible for Medicaid, but not a Premium Tax Credit.

Beware of Premium Increases

According to recent estimates, ACA marketplace premiums could climb substantially in 2026 as insurers adjust to the expiration of enhanced credits, with some plans more than doubling in net cost for enrollees who no longer receive enhanced subsidies.

What This Means for Early Retirement Planning

You should never assume ACA coverage will be inexpensive without modeling the impacts of subsidy changes, premium costs, and your projected income.
A retirement plan that works on paper without considering healthcare costs may fall short if ACA premiums rise faster than expected.

Because healthcare costs can be a substantial expense, many early retirees integrate ACA planning with:

Roth conversion strategies
Tax-efficient retirement income sequencing
Social Security optimization
Medicare transition timing
Long-term care planning

This holistic view ensures you’re not derailed by unexpected healthcare expenses.

How a Fiduciary Advisor Helps

At Good Life Wealth Management, we integrate ACA health cost planning into your broader retirement strategy. That means:

Considering ACA premiums based on your projected MAGI
Incorporating subsidy eligibility changes under current law
Coordinating retirement income sources with health coverage needs

We work with pre-retirees and retirees with $500,000–$5 million, nationwide and remotely, so you can build a plan that realistically supports early retirement. You might also find our Who We Help and Questions to Ask a Financial Advisor pages helpful if you’re evaluating guidance options.

Frequently Asked Questions

Can I still get ACA subsidies if I retire before age 65?
Yes — if your income falls between 100% and 400% of the Federal Poverty Level, you can still qualify for premium tax credits under the ACA in 2026, though benefits may be smaller than they were with enhanced subsidies.

What counts as income for ACA eligibility?
Income for ACA subsidies is your modified adjusted gross income (MAGI) — including traditional IRA/401(k) distributions, but excluding Roth IRA withdrawals if qualified and certain other tax-free sources. Good Life Wealth Management

Investment Themes for 2026

Posted On December 28, 2025 By Scott Stratton, CFP(R), CFA In Portfolio Management / No Comments

Each year, we share our thoughts on the investment markets and where we see areas of opportunity for the year ahead. This letter is not intended as a short-term market forecast—no one knows what markets will do over the next few months. Instead, it outlines how we think about long-term expected returns and how that informs our portfolio positioning.

Our investment process is based on tactical asset allocation. We modestly overweight asset classes that appear to offer more attractive long-term expected returns and underweight those that appear more expensive and less attractive. Throughout this process, we remain fully invested in diversified, buy-and-hold portfolios. We do not try to time the market.

We continue to believe in the benefits of using low-cost, passive Exchange-Traded Funds (ETFs) and focusing on what we can control: saving consistently, keeping costs low, maintaining tax efficiency, and staying disciplined through market cycles.

(You can view last year’s investment themes here.)

Expected Returns for the Decade Ahead

We believe it is largely unproductive to try to predict where the stock market will be over the next 3–12 months. In the short run, markets move based on supply and demand—prices rise when there are more buyers than sellers and fall when the opposite occurs. Short-term price movements are often noisy and emotional, and prices do not always reflect underlying value.

What does matter to us is the outlook for long-term expected returns over the next 5–10 years. This longer time horizon helps tune out daily headlines and instead focuses on valuation—whether today’s prices are high or low relative to future growth expectations.

Today, U.S. growth stocks appear expensive by historical standards. The so-called “Magnificent 7” (Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) have driven much of the U.S. market’s strong performance in 2024 and 2025. These companies now represent a very large share of the S&P 500, and their outsized gains have likely pulled forward many years of anticipated earnings growth.

We do not know whether this will result in a sharp correction or simply a period of more modest returns. What history consistently shows, however, is that high starting valuations tend to lead to below-average returns over the decade that follows.

Vanguard’s current estimates for annualized returns over the next decade are as follows:

U.S. Growth Stocks: 1.3% – 3.3%
U.S. Value Stocks: 5.3% – 7.3%
U.S. Small Cap Stocks: 4.3% – 6.3%
Developed Markets (ex-U.S.): 5.3% – 7.3%
Emerging Markets: 3.2% – 5.2%

How We Are Positioned for 2026

Our portfolios remain globally diversified, typically using approximately 10 ETFs. We have already been positioned toward areas of relative opportunity, so changes for 2026 are modest. Specifically, we are shifting a few percentage points from U.S. stocks toward international stocks.

We remain overweight U.S. value stocks and underweight U.S. growth stocks. Relative to global benchmarks, we are overweight international equities, including a meaningful allocation to emerging markets and a smaller allocation to international small-cap value stocks.

International stocks were our strongest performers in 2025, significantly outpacing U.S. stocks. We believe 2025 may have marked an important turning point after many years of U.S. outperformance relative to international markets.

On the fixed-income side, interest rates have declined at the short end of the yield curve as the Federal Reserve has begun cutting rates. With a new Fed Chair expected to be appointed this year, it appears likely that monetary policy may remain accommodative.

Credit spreads—the difference in yield between Treasury bonds and lower-quality corporate bonds—remain very tight. As a result, we see limited compensation today for taking additional credit risk in high-yield bonds.

Our bond portfolios are therefore unchanged for 2026. They consist primarily of a laddered portfolio of high-quality bonds with maturities ranging from one to five years, including Treasury, Agency, and A-rated corporate bonds. For investors seeking dependable income without liquidity needs, five-year fixed annuities continue to offer some of the most attractive “safe” yields available today.

Many portfolios also include smaller allocations to Treasury Inflation-Protected Securities (TIPS), emerging-market bonds, and preferred stocks. Overall, bonds continue to serve their intended purpose: providing stability and income, while equities remain the primary driver of long-term growth.

Lessons from 2025

The past year was not what most experts predicted, and it serves as an important reminder of what truly matters for investors: staying diversified, sticking to the plan, and avoiding emotional decisions.

While 2025 is ending as a very strong year—with double-digit returns in both U.S. and international stocks—it is easy to forget how challenging it felt at times. In April, markets were nearly 20% below their highs, and many economists were forecasting severe economic damage from new tariffs. Investors who panicked and sold during that period missed out on substantial subsequent gains.

The lesson is clear: long-term investors have historically been rewarded for discipline, not for reacting to short-term fears. (This applies to diversified portfolios like the ones we use; individual stocks, of course, can and do fail.)

2025 also marked a resurgence of diversification. While the S&P 500 is up roughly 19% year-to-date, international stocks (EAFE Index) are up approximately 32%. Investors who assumed 2025 would simply repeat 2024 missed out on these gains. Diversification remains one of the most reliable tools we have—because no one can consistently predict which asset class will lead in any given year.

Often, the hardest part of investing is having the patience to do nothing. In 2025, buy-and-hold investing worked exactly as intended, despite constant negative headlines. While we never ignore economic or political risks, we allow those concerns to be reflected in valuations and expected returns rather than reacting emotionally to every news cycle.

Looking Ahead

2025 was an outsized year, and it would be unrealistic to expect markets to deliver 20–30% returns every year. While we would welcome another strong year in 2026, it is more prudent to expect more modest returns and an eventual reversion toward long-term averages. Investors can still be very successful with steady, market-level returns over time—the key is remaining invested through both good years and difficult ones.

We are grateful for the trust you place in us to manage your investment portfolio. I follow the markets closely so you don’t have to, and I am always happy to discuss our investment philosophy, portfolio positioning, or any questions you may have.

We will continue to monitor portfolios carefully throughout 2026 and make adjustments as conditions warrant. Thank you for your continued confidence and partnership.

Why Baby Boomers Need a Financial Advisor

Posted On October 12, 2025 By Scott Stratton, CFP(R), CFA In Financial Planning, Retirement Planning / No Comments

For baby boomers entering or already in retirement, financial decisions have never been more complex—or more consequential. You’ve worked a lifetime to build your wealth, and the stakes are high: protecting your savings, generating reliable income, managing taxes, and leaving a meaningful legacy. The challenge isn’t just growing assets—it’s using them wisely, sustainably, and with confidence.

At Good Life Wealth Management, we understand that investors between 55 and 75 face a unique set of financial questions that require expertise, objectivity, and proactive planning. That’s where partnering with a fiduciary financial advisor and Certified Financial Planner™ (CFP®) can make a measurable difference in your family’s financial well-being.

The Challenges Facing Affluent Pre-Retirees

For individuals and couples with $1 million to $5 million in investable assets, retirement planning is both an opportunity and a challenge. While you may have more financial flexibility than most, higher net worth also brings more complexity—and greater tax exposure. Here are the most common issues affluent pre-retirees face:

Decumulation Strategy:
You’ve spent decades accumulating assets. But when and how should you begin drawing from them? Without a plan, it’s easy to pay unnecessary taxes or deplete accounts too quickly. Coordinating withdrawals from taxable, tax-deferred, and Roth accounts requires precise planning to maximize after-tax income and longevity of assets.
Tax Management and Roth Conversion Timing:
The years between retirement and age 73 (when RMDs begin) often present the best window for Roth conversions and other tax-optimization strategies. A fiduciary advisor models these moves to minimize lifetime tax liability, not just this year’s return.
Market Risk and Sequence of Returns:
Even affluent retirees can face shortfalls if markets decline early in retirement. A thoughtful investment strategy—emphasizing risk management, income diversification, and behavioral discipline—can protect against that risk.
Rising Health Care and Long-Term Care Costs:
With health care inflation outpacing general inflation, even wealthy families must plan for potentially hundreds of thousands of dollars in out-of-pocket costs. A CFP® can help evaluate insurance options, long-term care funding, and how these expenses fit into your financial plan.
Estate and Legacy Planning:
The SECURE Act has changed how beneficiaries inherit IRAs, and tax laws are constantly evolving. High-net-worth families need coordinated strategies among their advisor, attorney, and CPA to preserve wealth and ensure an efficient, meaningful transfer to the next generation.
Behavioral and Emotional Challenges:
Many successful individuals are highly capable but still feel uncertain when managing large sums in retirement. The shift from saving to spending, and from working to living off your portfolio, can feel uncomfortable. A trusted fiduciary advisor provides reassurance through data-driven planning, transparency, and accountability.

Why Work with a Fiduciary Financial Advisor?

Not all financial professionals are required to act in your best interest. Brokers and agents may recommend products that pay higher commissions, even if they’re not ideal for you. A fiduciary advisor, on the other hand, is legally and ethically bound to act solely in your best interest—without product incentives or conflicts of interest.

At Good Life Wealth Management, our fiduciary standard means:

Objective advice. We recommend strategies because they fit your goals—not because of any outside incentive.
Fee transparency. Our compensation is clear, predictable, and aligned with your success.
Comprehensive oversight. We coordinate your investments, taxes, estate plan, insurance, and retirement income strategy under one cohesive plan.

The Value a CFP® Brings to Your Financial Life

A Certified Financial Planner™ brings a level of rigor and expertise that goes beyond investment management. CFP® professionals complete advanced training and adhere to strict ethical standards, focusing on every aspect of your financial well-being.

For baby boomers, that means:

Customized Retirement Income Planning: Creating a tax-efficient withdrawal strategy that provides predictable income without depleting principal too soon.
Investment Management Tailored to Your Goals: Balancing growth, income, and preservation through a disciplined, evidence-based approach.
Tax-Aware Portfolio Construction: Using asset location and tax-loss harvesting to improve after-tax returns.
Social Security and Medicare Optimization: Timing benefits strategically and avoiding costly IRMAA surcharges.
Charitable and Legacy Planning: Aligning your wealth with your values through donor-advised funds, QCDs, and trust structures.
Behavioral Coaching: Helping clients avoid emotional mistakes during volatile markets, maintaining focus on long-term goals.

Studies by Vanguard and Morningstar have shown that working with a professional advisor can add 3% or more per year in net returns through better behavioral discipline, rebalancing, and tax efficiency. But beyond numbers, the real value of a trusted advisor is peace of mind—the confidence that you’re on track and making wise decisions.

How a Fiduciary Advisor Simplifies Complexity

Affluent families often have multiple accounts, business holdings, or real estate investments. A fiduciary advisor serves as your financial quarterback, bringing everything together into one cohesive strategy.

We help you see the full picture—net worth, cash flow, taxes, and investments—in one plan.
We coordinate with your CPA and attorney to ensure that tax and estate decisions align.
We proactively adjust your plan as tax laws, markets, and life circumstances change.

This holistic approach ensures your wealth works efficiently for you today, while positioning your legacy for tomorrow.

The True Benefit: Financial Confidence and Freedom

Ultimately, the goal of financial planning isn’t just to accumulate wealth—it’s to create the freedom to live your best life. For baby boomers entering retirement, that means:

Knowing your income is secure regardless of market conditions.
Paying only the taxes you owe—and not a dollar more.
Protecting your spouse and family from uncertainty.
Having a clear legacy plan that reflects your values and priorities.

At Good Life Wealth Management, we believe your retirement years should be a time of clarity, not confusion; of confidence, not anxiety. Working with a fiduciary CFP® ensures that every financial decision is guided by your goals, your timeline, and your values.

Take the Next Step Toward Financial Clarity

If you’re approaching retirement or already there, now is the time to build a comprehensive plan. The right guidance today can make all the difference over the next 20–30 years.

We invite you to schedule a conversation with Good Life Wealth Management to see how our fiduciary, evidence-based approach can help you protect, grow, and enjoy your wealth with confidence.

Falling Interest Rates: Why MYGAs Belong in Your Portfolio

Posted On September 23, 2025 By Scott Stratton, CFP(R), CFA In Financial Planning, Retirement Planning /

The Federal Reserve cut the Fed Funds rate by 0.25% this week, with more reductions likely ahead. As inflation cools and employment weakens, bond yields are already dropping. This is a problem for retirees: many bonds are callable, meaning issuers redeem them early and reissue at lower rates. Investors who held 5.5% and 5% bonds are seeing them called and replaced with yields closer to 4%.

For retirees relying on bond income—or taking RMDs—this environment means lower expected returns from balanced portfolios. And with U.S. stocks expensive and possibly due for a correction, conservative investors should not depend on equities for stable income.

Enter the MYGA

A MYGA (Multi-Year Guaranteed Annuity) is a fixed-rate annuity that behaves like a CD but often pays more. MYGAs currently offer rates in the mid-5% range and unlike many bonds or CDs, they are non-callable. That means your rate is locked for the full term (3–10 years), even if market yields fall.

Benefits of MYGAs:

Guaranteed fixed rate of return, non-callable.
Principal protection—very safe.
Tax-deferred growth until withdrawal.
Option for tax-free rollover at maturity (1035 exchange).
Creditor protection in many states.
Nearly 2% higher than comparable 5-year Treasury (5.6% versus 3.7%).

The Fine Print:

Limited liquidity; surrender charges for early withdrawals.
Some MYGAs allow interest to be withdrawn, others none.
Withdrawals before age 59½ may face a 10% IRS penalty on earnings.
Best suited for investors with sufficient liquidity elsewhere.

Why MYGAs Belong in Portfolios Now

With rates expected to trend lower, locking in today’s 5%+ yields through a MYGA can secure income for years. A callable bond at 5.5% may vanish if rates fall, but a 5.5% MYGA will not. This makes MYGAs particularly attractive for retirees and conservative investors looking for income stability.

Strategies for Using MYGAs:

Fixed Income Replacement: Substitute part of your bond allocation with a MYGA to boost yield and avoid call risk.
Laddering: Buy multiple MYGAs with staggered maturities to improve liquidity and reinvestment flexibility.
RMD Support: Use MYGA interest or partial withdrawals to help cover RMDs without tapping into equities in down markets.

Is a MYGA Right for You?

If you’re over 59 1/2, have significant fixed-income holdings, and don’t need immediate access to these funds, a MYGA may be an excellent fit. For many retirees, locking in 5%+ guaranteed and tax-deferred is far more attractive than taking chances on callable bonds or expensive equities.

Roth Conversions After 60: When They Make Sense—and When They Don’t

Posted On September 10, 2025 By Scott Stratton, CFP(R), CFA In Financial Planning, Tax Strategies /

For baby boomers and pre-retirees with $500,000 to $5 million in investable assets who want a fiduciary advisor they can work with remotely.

Roth conversions after age 60 can be a powerful tax-planning tool when used thoughtfully, but they are not automatically the best choice for every retiree. Whether a conversion makes sense depends on your current tax situation, future tax expectations, Social Security timing, Medicare implications, and retirement income goals.

What Is a Roth Conversion?

A Roth conversion moves money from a Traditional IRA or 401(k) into a Roth IRA by paying taxes now so that future growth and withdrawals are tax-free.
Traditional accounts grow tax-deferred and are taxed as ordinary income when withdrawn. In contrast, once assets are in a Roth IRA, they grow and can be withdrawn tax-free for life.

When Do Roth Conversions Make Sense?

Roth conversions generally make sense when you expect your current tax rate to be lower than your future tax rate or when tax diversification enhances your retirement plan.

Lower Tax Rates Now vs. Later

Converting in years when your income is relatively low — for example, after retiring but before taking Social Security — can result in paying less tax upfront.

Avoiding or Reducing Future RMDs

Roth IRAs do not have lifetime required minimum distributions (RMDs), unlike Traditional IRAs. For many retirees, converting before RMDs begin reduces future taxable income.

Tax Diversification and Estate Planning

Having Roth assets provides flexibility in retirement withdrawals and can reduce the tax drag that comes with RMDs, while also offering a tax-free legacy to heirs.

Conversions in Lower-Value Markets

Converting during a market downturn means you pay tax on a lower base and allow the Roth portion to grow tax-free when the market recovers.

When Roth Conversions May Not Make Sense

Roth conversions are not always beneficial — especially if they trigger higher taxes or costly side effects.

Higher Current Tax Brackets

If converting pushes you into a much higher marginal tax bracket, the immediate tax cost may outweigh long-term tax benefits. For example, are you subject to the 3.8% Medicare Surtax?

Medicare IRMAA Impacts

Conversions increase modified adjusted gross income (MAGI), which can raise Medicare Part B and D premiums under the IRMAA rules, significantly increasing healthcare costs if thresholds are exceeded.

Social Security Tax Interactions

Higher income from conversions may increase the taxable portion of Social Security benefits or affect tax bracket thresholds.

Charitable Goals or QCDs

If a large portion of your IRA assets will go to charity, converting may not be advantageous. Qualified Charitable Distributions (QCDs) can achieve similar goals without paying tax.

Low Future Tax Expectations

If your future tax rates will be lower — due to relocation to a no-tax state or anticipated lower income — conversions may have less value.

How to Evaluate a Roth Conversion

Proper evaluation requires side-by-side tax scenario analysis over your expected retirement horizon.

Project current vs. future tax rates
Consider Medicare, Social Security, and IRMAA effects
Estimate the timing and size of RMDs
Model multi-year conversion strategies
Analyze impacts on estate planning and legacy goals

This type of analysis is best done with planning tools or with a fiduciary who runs these scenarios as part of a comprehensive plan.

What Many Advisers Miss

Conversions cannot fix every retirement issue. They are just one lever in a broader strategy that includes:

Timing Social Security benefits
Managing RMDs intelligently
Balancing taxable, tax-deferred, and tax-free buckets
Integrating Roth decisions with your overall retirement income plan

If you want a full set of questions to assess an advisor’s process — including how they approach tax strategies like conversions — check out our guide: Questions to Ask a Financial Advisor.

Realistic Examples (High Level)

Beneficial Scenario:
A 62-year-old retiree with moderate income converts modest amounts each year in the gap years between retirement and starting RMDs. This reduces future RMDs and grows tax-free assets.

Less Beneficial Scenario:
A 68-year-old with significant Social Security income and Medicare IRMAA thresholds may pay more in tax and premiums in the year of conversion, reducing the net benefit.

Each situation is unique and should be modeled specifically.

How We Approach Roth Conversions

We integrate Roth conversion planning into your overall retirement income strategy. That means:

Understanding your tax situation
Considering Medicare and Social Security timing
Coordinating with cash flow needs
Evaluating impacts on estate planning

We work with clients nationwide and can help you explore whether conversion strategies fit your financial goals.

If this topic feels important to your retirement plan, you might also be interested in our Who We Help page to see if our approach aligns with your needs: Who We Help: Retirement Planning for Retirees and Pre-Retirees Nationwide.

Frequently Asked Questions

Should I convert to a Roth IRA after age 60?

Roth conversions after age 60 can make sense when your current tax rate is the same or lower than your expected future tax rate, but the decision depends on Social Security timing, Medicare IRMAA, and your overall retirement income plan.

Will a Roth conversion increase my Medicare premiums?

Yes. Large conversions increase your adjusted gross income (AGI), which may trigger higher Medicare Part B and D premiums under IRMAA rules.

How Investors Can Thrive in 2025’s Uncertain Economy

Posted On September 1, 2025 By Scott Stratton, CFP(R), CFA In Financial Planning /

If you’ve felt like following the news this year is like trying to drink from a firehose, you’re not alone. Every headline out of Washington seems more “unprecedented” than the last. Political upheaval, tariffs, inflation fears — it all feels deeply concerning, especially for investors with significant wealth at stake.

And yet, behind the noise, the markets are quietly teaching us timeless lessons.

Yes, what happens in Washington matters. Yes, policy decisions will impact the economy, interest rates, and your portfolio. But if 2025 has proven anything, it’s this: the single biggest risk to your wealth isn’t Trump, tariffs, or the next headline — it’s how you react.

The Lessons of 2025

This year has been a masterclass in what works — and what doesn’t — when investing during turbulent times:

Market timing has been a disaster.
Buy and hold has worked beautifully.
Diversification has been your best defense.

Consider just a few examples:

At the start of 2025, U.S. stocks were dominating international markets. Many investors threw in the towel on foreign equities — just in time to miss out. Year-to-date, international stocks are up 23.3%, compared to 10.8% for the S&P 500.
In April, when tariffs were announced, U.S. stocks plunged 20%. The consensus was clear: disaster was coming. But if you sold, you locked in losses. Since that bottom, the market has rebounded 30%.
Small caps? Down slightly through July… then up nearly 9% in August alone.

The takeaway is simple: trading the headlines hasn’t worked. Staying the course has.

A Reminder From Market History

Corrections are normal. Bear markets are normal. What matters is how you position yourself before they happen.

Since the Global Financial Crisis in 2009, the S&P 500 has grown nearly 10x (including dividends). Along the way, we’ve seen terrifying headlines, recessions, pandemics, political chaos — and yet, long-term investors have been rewarded.

Even in 2025, despite fears of overvaluation, the S&P has already made 20 new all-time highs. The reason isn’t mysterious: when there are more buyers than sellers, stocks rise. Concern is healthy. Panic is not.

Investing in an Age of Uncertainty

You don’t need to “do nothing” to be successful. But you do need a disciplined strategy that keeps you from reacting emotionally. Here are the principles that matter most for protecting and growing wealth in uncertain times:

Control what you can. You can’t control the market, but you can control your saving and investing habits. Automate contributions and focus on building wealth consistently.
Use bonds for peace of mind. By building bond ladders for 5 years of income, you avoid being forced to sell stocks at the wrong time. For many investors, a mix between 80/20 and 50/50 (stocks/bonds) provides both growth and stability.
Lean into expected returns. Today, that means emphasizing international stocks, value stocks, and equal-weighted indices over pure U.S. growth and cap-weighted benchmarks.
Keep costs and taxes low. Low-cost ETFs give you broad diversification, minimal turnover, and greater tax efficiency.

The Bottom Line for Wealthy Investors

The political and economic headlines of 2025 may be unsettling — even frightening. But history, data, and this year’s results all point in the same direction: wealth is built by staying invested, diversified, and disciplined.

The “smart money” isn’t chasing the news. It’s sticking to timeless strategies that preserve and grow wealth across decades, not news cycles.

At Good Life Wealth Management, we help investors like you cut through the noise and focus on what truly drives long-term success. If the headlines have you worried — about Trump, the economy, or your portfolio — let us guide you with strategies built for resilience, not reaction.

Because while Washington may feel chaotic, your financial future doesn’t have to.

Tax Strategies Under the OBBBA

Posted On August 11, 2025 By Scott Stratton, CFP(R), CFA In Tax Strategies /

The One Big Beautiful Bill Act of 2025 creates opportunities for Tax Strategies for many of my clients. I am in favor of lower taxes and hope that families will use these tax savings to increase their investment and add to their portfolio. Spending these savings would be squandering this opportunity.

Much of the OBBBA is to make permanent the key provisions of Trump’s 2017 Tax Cuts and Jobs Act. These include:

keeping the higher standard deduction amounts, which are increased to $15,750 ($31,500 married);
keeping the top tax rate at 37%, and not reverting to 39.6%;
making permanent the Estate Tax Exemption of $13.99 million ($27.98 million married).

We previously discussed the new $6,000 senior tax deduction in detail here. Today we look at three key components of the OBBBA for individual taxpayers.

Higher SALT Cap

The OBBBA raises the cap on deducting state and local taxes from $10,000 to $40,000. This is for taxpayers who itemize. For those in high tax states, who pay a lot in state income tax or property tax, the $10,000 Cap meant that most were taking the standard deduction and not eligible to itemize. Of course, with the standard deduction at $31,500 you need to have a lot of deductions in order to itemize.

A quick reminder: Itemized deductions include four things: State and Local Taxes, home mortgage interest, charitable donations (see below), and medical expenses which exceed 7.5% of your AGI.

Tax strategy: It may make sense to look at bunching your property taxes (and donations). What does this mean? You bunch two years of property taxes into one year by paying one in January and the next one in December. For example, if your property taxes are $25,000, you are below the standard deduction of $31,500 (married). You would end up taking just the standard deduction in both years and get no benefit, assuming you didn’t have any other itemized deductions.

Bunch those two property tax payments into this year and now you get a $40,000 deduction this year and a $31,500 deduction next year. Note that the $40,000 limit reverts to $10,000 after 2029.

Charitable Donations

There are some big changes coming to Charitable donations and tax deductions. Starting in 2026, you can deduct $1000 ($2000 married) as an Above The Line deduction. This means you do not have to itemize to get this tax deduction for a charitable donation. The new deduction, however, will only apply to cash donations, not to donations to a Donor Advised Fund, or donations of appreciated stock.

The other big change is a new 0.5% AGI floor on deducting charitable donations on the itemized line. If your Adjusted Gross Income is $200,000, you can only deduct your donations which exceed $1000. This also starts next year, 2026.

Tax Strategies:

If you can hold off 2025 donations until January 1, you will be better off, assuming your donations would be under the $1000 / $2000 (married) level.
If you are already itemizing for 2025, calculate your situation for donating now versus in 2026. Especially if you are donating appreciated stock. Be sure to consider the new SALT Cap when calculating if you will itemize.
Starting in 2026, tax payers may want to donate cash first, up to the $1,000/$2,000 (married), and then switch to donating appreciated stock above those amounts.
QCDs, Qualified Charitable Donations from your IRA remain unchanged. Those over age 70 1/2 can donate QCDs of up to $105,000 a year and not count the distribution as income. Since the QCD can count towards your RMD, this can reduce your taxable income.

Elimination of Clean Energy Tax Credits

Unfortunately, the OBBBA is eliminating many tax benefits for converting to clean energy. If you are thinking of making a purchase, you still have some time before these programs expire.

Tax Strategies:

The tax credits for electric vehicles will expire on September 30, 2025. There are two programs, one for new vehicles and one for used vehicles. Both tax credits are being eliminated.
The Residential Clean Energy Credit, a 30% tax credit for solar panels and battery storage, will end on December 31, 2025.
The Energy Efficient Home Improvement Credit, for heat pumps and insulation for example, will end on December 31, 2025.

The Long-Term Outlook

Everyone likes lower taxes and being able to keep more of their hard earned money. I would be more enthusiastic about these tax cuts if they had been paired with cuts to spending. The deficits we are accumulating will eventually become a problem for our children and grandchildren. While the markets are flying high right now, the debt could eventually erode confidence in the economy and crowd out money being used for more productive purposes. The deficits will make the under-funding of Social Security and Medicare a harder problem to address in 2033. These criticisms of the OBBBA are widespread.

In spite of these concerns, most Americans will see some tax benefits under the OBBBA. I’ve highlighted three areas where many investors might benefit with some additional tax planning. First, look at the SALT Cap and determine if you can take any steps to maximize your itemized deductions, or alternate years of standard versus itemized deductions. Second, understand the new charitable donation rules. I have many clients who are generous with their resources and we want to see them take any tax benefits which they can. Third, if you are planning on any clean energy upgrades to your home or vehicles, those tax credits are going away soon. Better act right away!

Taxes can take a big bite out of our income and ability to save. Taxes can be a significant drag on investment returns and accumulating assets. That’s why tax planning has been a central part of our wealth management process from the very beginning. Tax rules change all the time, and we are not surprised to see some pretty big changes for 2025. We will continue to look for ways to use the tax code to help clients reach their goals.

New Tax Break for Boomers

Posted On August 11, 2025 By Admin In Tax Strategies /

As part of the “One Big Beautiful Bill”, there is a new tax deduction for Americans over age 65. There will be a new $6,000 “Bonus” tax deduction which will be on top of your standard deduction or itemized deductions on your tax return. This will be per person, so a married couple who are both at least 65, will receive $12,000 in additional tax deductions.

Here are the new tax deduction amounts for 2025:

TAX YEAR 2025	Single	Married Filing Jointly
Standard Deduction	$15,750	$31,500
Over 65 Deduction	$2,000	$3,200
New “Bonus Deduction”	$6,000	$12,000
TOTAL	$23,750	$46,700

While the White House posted that “No Tax on Social Security is a Reality” under the OBBB, that is an exaggeration. Social Security will still be taxable, although more seniors will end up owing less taxes under the expanded tax deduction. Many retirees will owe no federal income taxes. The Bonus Deduction is not linked to Social Security and you do not have to claim SS to receive the deduction.

The Fine Print

If you itemize deductions, rather than taking the standard deduction, you are still eligible for the Bonus Deduction of $6,000 per person. So your deduction could be even higher than the deductions listed above. There are two other tax savings in the One Big Beautiful Bill:

A new deduction for interest on car loans, up to $10,000, for new vehicles made in the USA and purchased in 2025-2028. (I still hate the idea of borrowing money for a depreciating asset.)
The cap on deducting state and local taxes (SALT) has been increased from $10,000 to $40,000. This is great news for people in high tax states who itemize.

There is, however, a catch: there will be income restrictions on the $6,000 Bonus Deduction. The Deduction will be phased out if your MAGI (Modified Adjusted Gross Income) is above $75,000 single or $150,000 married. This will create planning opportunities for those over 65 to keep their taxable income under these income thresholds. Some ways we might do this include:

Avoid, reduce, or smooth IRA/401(k) distributions if you are under age 73. That’s the age RMDs start.
Withdraw from your Roth IRA if necessary, instead of your Traditional IRA.
If you are over age 73, Qualified Charitable Distributions (QCDs) from your IRA will reduce your MAGI while fulfilling your RMDs.
Avoid selling taxable stocks or funds which create capital gains. Capital Gains are included in MAGI.
Defer interest income with a fixed annuity (MYGA).
Defer your Social Security benefits until age 70.

Tax efficiency remains a core focus of our financial planning work for clients. As tax regulations change, we will find new ways to help manage your tax liabilities.

The Bad News

The new Bonus Deduction of $6,000 is not permanent – it will expire after 2028. It is not an accident that the expiration will be in the election year. The Republicans will take credit for the tax savings and promise to extend the deduction if they stay in control. And if they lose and the deduction goes away, they can claim Democrats took away your tax deductions. It is a brilliant move politically, although also manipulative and a way to bribe voters. Both sides do this, but this feels quite slimy to me.

The tax cuts in this tax bill will increase the deficit by an estimated $3 trillion over the next decade. We are giving a tax cut to grandparents which will have to be paid for by their grandchildren. Just because this is popular doesn’t mean it is a smart policy for the country, long-term. Our growing debt will have many side effects:

Interest on the debt is now the largest item in the US budget, surpassing defense spending in 2024.
Debt will crowd out investment in growth, leading to higher inflation, a weaker economy, and eventually undermining market confidence.
We will be worse prepared to address the failure of Social Security payments in 2033.
Deficit spending will rise to 7% of GDP by 2026. If we have to borrow 7% to achieve a GDP growth rate of 3%, we do not have a healthy economy.

Final Thoughts

I am in favor of lower taxes and anything which helps my clients keep more of their money. My job is to help investors grow and preserve their wealth which includes using every possible tax advantage we can find. I am passionate about this work and it makes a direct impact on people’s lives.

I am pleased to see the Child Tax Credit continued under the bill and increased from $2,000 to $2,200. Other than that, however, the Bill serves to transfer wealth from the young to the old, which will further widen the income and wealth disparities in our country.

It is disappointing that neither party wants to address the long-term issues of our debt and underfunded entitlement programs. I’d like to see tax cuts linked to corresponding savings in government spending. At some point, we have to figure out how to reduce deficits, manage the debt, and fix our broken Social Security and Medicare systems. Unfortunately, the Big Bill doesn’t look very beautiful for tackling any of those problems. Washington today cannot look any further out than the next election and that’s why we keep making short-sighted choices.

In 1957, John F Kennedy won the Pulitzer Prize for his book, Profiles in Courage. He wrote about eight Senators who had the political courage to make unpopular choices in the long-term interests of the country. Kennedy noted that politicians face the challenge of three pressures: to be liked (to do what is popular), to get re-elected, and the pressure of special interest groups. That remains true today. I wish more of our current politicians would give the American people the same credit as Kennedy did: “the people will not condemn those whose devotion to principle leads them to unpopular courses, but will reward courage, respect honor and ultimately recognize right.”

The Tariff Tantrum: Why Patience Still Pays

Posted On April 6, 2025 By Scott Stratton, CFP(R), CFA In Financial Planning /

This week, the stock market threw a tariff tantrum — and for good reason. Economists, business leaders, and investors alike agree: the administration’s sudden new tariffs are bad news.

Starting this week, U.S. tariffs include:

20% on imports from the European Union
24% on goods from Japan
34% on products from China
Overall range: a minimum of 10%, and up to 50%

While the White House describes these as “reciprocal,” they’re not actually based on other countries’ tariffs on U.S. goods. Instead, the new tariffs are tied to each country’s trade deficit with the U.S. — the higher the deficit, the steeper the tariff.

Why Tariffs Backfire

The logic behind these tariffs might sound simple: make imports more expensive so people buy American. Unfortunately, that’s not how the real world works.

Other countries are retaliating. They’re imposing their own tariffs on U.S. goods, making American exports more expensive — and less competitive — overseas.
Prices are rising. Estimates suggest these tariffs could cost American households an extra $2,100 to $4,600 a year.
Factories can’t pop up overnight. Even if demand shifted suddenly, new U.S. production would take 3–5 years to ramp up.

Bottom line? These tariffs aren’t boosting exports or domestic manufacturing — they’re just increasing costs. It’s a lose-lose proposition for families and businesses alike.

The Market’s Harsh Reaction

The response on Wall Street was swift — and brutal. On Thursday and Friday, U.S. stocks lost $6.6 trillion in value. That’s the largest two-day drop in history.

As the saying goes, “Stocks take the stairs up and the elevator down.” The ride down can be fast and painful — but it’s part of the journey.

Panic Will Not Profit

Yes, investors are panicked. And yes, we’ll likely see more selling early this week. But am I selling anything in my own portfolio? Absolutely not. Am I advising clients to “get out” of the market? Again, no.

I don’t have a crystal ball, but I do have history on my side. And if history tells us anything, it’s this:

Panic selling never works.

Here are some interesting charts on market corrections. First, from Vanguard, here are US Equity drawdowns since 1980.

Since 1980, the U.S. stock market has been in correction territory (down 10% or more from recent highs) about 30% of the time. Bear markets — drops of 20% or more — happen, too. And recovery can take time.

Looking at monthly returns, the next chart shows up months versus down months.

You can see that there are nearly as many down months as up months. The stock market does not go straight up nor does it go down forever. It is volatile, with good months and bad months, and good years and bad years.

These charts show the volatility of stocks, but mask the cumulative gains. In fact, since 1980, the S&P 500 has delivered a total return of 16,415%, or about 11.99% annually. That’s the big picture — and it’s why long-term investing works.

No Pain, No Gain

In 2009, I saw that investors who got out did worse than those who did nothing. The same thing happened in March of 2020. The human brain often tells us to do the wrong thing at the worst time. But real success comes from staying invested — even when it’s uncomfortable.

Trying to time the market rarely works. But owning a simple index fund and not selling? That’s the most likely way to access the 11.99% historical returns over time.

We’ve built your portfolio to withstand volatility. Most of our clients have 30% to 50% in bonds, including five-year bond ladders for retirees. That means we don’t need to sell stocks when they’re down.

What We Can Do Now

Even in market downturns, there are smart moves we can make:

Rebalancing: When stocks are down, it’s a chance to buy — not sell.
Tax-loss harvesting: Use losses to offset gains and reduce your tax bill.
Dollar-cost averaging: If you’re still investing, this is your opportunity. Stocks are on sale.

We’ve been saying for a while that the market, especially tech, was overvalued and due for a pullback. Bubbles don’t pop because of valuations — they pop when an external shock happens. This tariff tantrum may have simply triggered what was already overdue.

Keep The Faith

It’s easy to focus on the negative — but don’t let fear cloud your long-term vision. Investors who panicked in 2001, 2009, and 2020 missed out on the powerful recoveries that followed.

I’m no fan of these tariffs. I hope they’re just a negotiating tactic — or that billionaires who lost hundreds of millions of dollars this week can push for a better path. But regardless of what happens next, I know this:

We’ve seen this before, and we’ve come out stronger every time.

Each investor should have a solid financial plan. That plan should account for volatility — even when it’s driven by unpredictable policy. We’re not selling based on headlines. We’re staying focused on long-term goals.

If you’re feeling uncertain or want to revisit your plan, don’t hesitate to reach out. That’s what I’m here for.

Stay steady. Stay smart. And hang in there.