For many retirees, Social Security is a foundational source of income—yet most people claim without fully understanding how their timing and strategy can impact lifetime benefits. By learning how different claiming options work, you can make a more informed decision that supports your long-term financial goals.

1. Know Your Full Retirement Age (FRA)

Your FRA is the age at which you qualify for 100% of your Social Security benefit. Claiming before FRA (at age 62 or later) reduces monthly benefits permanently. Waiting until FRA or beyond increases your monthly income and can provide more stability later in retirement.

2. Consider Delaying Benefits for Higher Lifetime Income

If you delay Social Security past your FRA, benefits grow by roughly 8% per year until age 70. This strategy can be especially impactful for individuals with longer life expectancies or families with longevity. Delaying can also strengthen survivor benefits for a spouse.

3. Evaluate Spousal Strategies

Married couples have more flexibility in how they claim. One spouse may claim earlier to provide income while the higher-earning spouse delays their benefit for maximum growth. Understanding how spousal and survivor benefits work can help couples significantly increase total household benefits.

4. Integrate Social Security Into Your Broader Retirement Plan

Choosing when to claim shouldn’t happen in a vacuum. Factors like part-time work, pension income, tax considerations, and required minimum distributions all affect the optimal strategy. Coordinating Social Security with your savings and spending plan can help stretch your retirement dollars further.

5. Avoid Earning Penalties if You Claim Early

If you claim before FRA and continue working, Social Security may temporarily withhold some of your benefits once you exceed annual earnings limits. This isn’t a penalty, you’ll eventually receive credit for those reductions, but understanding the rules can prevent surprises.

6. Review Annually and Adjust if Needed

Life changes such as marriage, divorce, widowhood, health changes can all impact your eligible benefits. Regularly reviewing your strategy ensures you take advantage of every opportunity available.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5059445

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Financial wellness has become a defining issue for today’s workforce. In 2026, employees are navigating ongoing financial pressure from rising living costs to increased complexity around benefits and retirement decisions. As a result, financial stress is no longer confined to employees’ personal lives; it shows up in the workplace and within the retirement plan itself.

For plan sponsors, this creates both a challenge and an opportunity. Thoughtful financial wellness initiatives can support employees while strengthening the overall effectiveness of the retirement plan.

Financial Stress Is Affecting Workplace Performance

Many employees continue to feel uncertain about their financial footing. Even with access to a retirement plan, day-to-day financial concerns often take priority, leaving long-term planning on the back burner.

When financial stress goes unaddressed, employers may see:

• Reduced productivity and engagement

• Increased absenteeism

• Higher demand on HR and benefits teams

Financial wellness education helps employees build confidence and clarity around their finances. When employees feel more in control, they are better able to focus at work and make informed decisions about their benefits.

Retirement Plans Work Best When Employees Understand Them

A well-designed retirement plan can still fall short if employees do not understand how to use it effectively.

Common challenges include:

• Low or inconsistent contribution rates

• Confusion around Roth versus pre-tax contributions

• Limited understanding of investment options or plan features

These issues are often the result of limited education, not lack of interest. When financial wellness education is integrated into the retirement plan experience, employees are more likely to engage, ask better questions, and make decisions aligned with their goals

Complexity Has Increased for Sponsors and Participants Alike

Regulatory changes, evolving workforce demographics, and expanding benefit options have made retirement plans more complex to manage and communicate. Plan sponsors are often cautious about adding new initiatives, particularly when fiduciary responsibility is top of mind.

Financial wellness programs that emphasize general education and easy access to resources, rather than personalized financial advice, can help employees while avoiding added fiduciary risk, as the plan sponsor. When delivered appropriately, they complement the plan’s governance structure and reinforce best practices.

Financial Wellness Supports Retention and Talent Strategy

Employees increasingly view benefits as a reflection of their employer’s values. Organizations that support financial well-being demonstrate a long-term commitment to their workforce.

From an employee perspective, financial wellness resources:

•Reduce uncertainty and stress

• Improve confidence in benefit decisions

• Reinforce the value of the retirement plan

For employers, this can translate into improved retention, stronger benefit appreciation, and a more engaged workforce.

The Sponsor’s Role: Creating Access and Encouraging Engagement

Plan sponsors do not need to be financial experts to make an impact. The most effective approach is often to act as a facilitator creating access to education, tools, and qualified professionals who can support employees appropriately.

This may include:

• Offering targeted financial education

• Improving communication around existing plan features

• Partnering with fiduciary advisors for guidance and support

Even modest steps can lead to meaningful improvements over time.

Looking Ahead

In 2026, financial wellness is no longer optional. It is a practical component of a successful retirement plan strategy. By supporting employees’ financial understanding and confidence, plan sponsors can enhance plan outcomes while reinforcing their commitment to employee well-being.

A thoughtful, well-structured financial wellness approach benefits employees and strengthens the retirement plan; creating value for the organization as a whole.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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Many participants focus on how to save, but few think about how to withdraw. A thoughtful income strategy in retirement may reduce taxes, provide more flexibility, and increase the longevity of your nest egg.

Here are three simple guidelines to keep in mind:

1. Diversify your withdrawal sources

Use a combination of Traditional (tax-deferred), Roth (tax-free), and taxable accounts to manage income and stay in a favorable tax bracket.

2. Plan early for Required Minimum Distributions

Tax-deferred accounts require withdrawals beginning at age 73. This applies whether you need the money or not. Early planning can help reduce surprise tax bills later.

3. Use Roth accounts strategically

Roth funds are powerful for tax-free withdrawals. They can help you control taxable income as expenses rise or income shifts in retirement.

Bottom Line:

Withdrawing money strategically can be just as important as saving it. A well-designed plan may reduce taxes, improve income stability, and help your resources go further.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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As a business owner or CFO, you know how important it is to attract and retain top talent. One powerful, but often overlooked, tool for rewarding key employees is a cash balance plan, especially when implemented retroactively for the prior year.

What Is a Cash Balance Plan?

A cash balance plan is a type of defined benefit plan that resembles a 401(k) in its individual account statements, but it’s fundamentally a traditional pension. Each participant has a “hypothetical account” that grows annually with employer contributions and interest credits. This allows for significantly higher contribution limits compared to a 401(k), particularly for older or higher-compensated employees.

Why Consider a Retroactive Plan?

If your company didn’t implement a cash balance plan last year, you may still be able to adopt one retroactively. This means contributions for the prior year can be made now, providing a unique opportunity to accelerate retirement savings for your executives while also potentially lowering your current-year taxable income.

Illustrative Example

Let’s say your company wants to reward a 55-year-old key employee with a $250,000 salary. Using a retroactive cash balance plan, you might be able to contribute up to $150,000 as a hypothetical example for the prior year. This far exceeds the $23,500 limit for a 401(k). This not only provides a meaningful boost to the employee’s retirement but also creates a tax-deductible expense for the business.

The Deadline for Retroactive Adoption

A cash balance plan can be adopted retroactively up to your company’s tax-filing deadline, including extensions, for the previous year. For most corporations, this means you can establish the plan as late as October 15 if you file for an extension. This flexibility allows business owners to evaluate year-end profits and cash flow before deciding on contributions.

Benefits at a Glance

• Increased Contributions: Retroactive contributions can be substantial, particularly for key employees.

• Attract and Retain Talent: Competitive retirement benefits are a strong incentive for top performers.

• Tax Advantages: Employer contributions are generally tax-deductible.

• Predictable Growth: Interest credits provide stable, predictable growth regardless of market fluctuations.

Considerations

• Cost and Funding: Retroactive contributions can be significant; ensure cash flow can support the plan.

• Complexity: Administration is more intricate than a 401(k), often requiring actuarial expertise.

• Employee Communication: Key employees benefit most; clear communication is critical to avoid misunderstandings.

Is a Retroactive Cash Balance Plan Right for Your Business?

If you want to reward high-performing employees, increase tax-deductible contributions, and potentially catch up on last year’s savings, a retroactive cash balance plan is worth exploring.

Next Steps

Work with a qualified retirement plan advisor to evaluate if this strategy fits your company’s goals and financial position. Acting before the tax-filing deadline ensures you don’t miss the opportunity to supercharge your retirement plan for key employees.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5024121

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Two Simple Tools for Smarter Retirement Planning

When it comes to planning for retirement, a few simple rules can make complex concepts easier to understand. Two of the most helpful are the Rule of 72 and the Rule of 55. Both can give you quick insight into how your savings work and how you can make more informed decisions with your retirement plan.

The Rule of 72: How Fast Will Your Money Double?

The Rule of 72 is a quick mental shortcut to estimate how long it will take your money to double based on your rate of return. Just divide 72 by your expected rate of return.

Example:

If your retirement account earns a 7% average annual return, your money doubles roughly every 10 years (72 ÷ 7 = ~10.3).

Why it matters for employees:

• It helps you understand the power of starting early.
• It shows how even small increases in contributions or investment return can significantly grow your balance over time.
• It encourages long-term thinking rather than getting discouraged by short-term market noise.

The Rule of 55: Accessing Retirement Savings Penalty-Free

The Rule of 55 is an IRS provision that allows you to take penalty-free withdrawals from your employer-sponsored retirement plan (like a 401(k) or 403(b)) if you leave your job in or after the calendar year you turn 55.

Key points:

• It applies only to the plan sponsored by the employer you just left not to old plans or IRAs.
• Withdrawals are still taxable, but the 10% early withdrawal penalty is waived.
• This rule can be especially helpful for employees considering early retirement, a career change, or a phased transition out of the workforce.

How employees can use this in planning:

• Build flexibility into your retirement strategy knowing this option exists can reduce pressure.
• If you're planning to retire early, you may leave money in your current employer's plan to take advantage of the penalty-free access.
• Use it as a bridge until Social Security or other income sources begin.

Why These Rules Matter Together

While the Rule of 72 helps you understand growth, the Rule of 55 helps you understand access. One encourages long-term accumulation; the other provides short-term flexibility. Together, they give employees a clearer picture of both how their retirement savings grow and how they can be used as life plans evolve.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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When organizations begin exploring a merger or acquisition, most of the attention naturally goes to valuation, legal structure, synergies, and integration timelines. Yet one critical element often sits just beneath the surface; the retirement plan. For business owners, CFOs, and HR directors, overlooking how retirement plans will be handled during the transaction can lead to costly errors, compliance issues, and unnecessary employee confusion.

Retirement plans are governed by strict rules, documentation standards, and fiduciary oversight. During an M&A transition, decisions made in the early stages will determine how smoothly the plan integration unfolds. There are five key areas that plan sponsors should evaluate carefully as part of their planning process.

The first and most foundational decision is determining what will happen to the existing plans. Will both plans continue to operate separately? Will one be merged into the other, or will one be terminated? In some cases, plan sponsors may choose to freeze contributions temporarily while decisions are finalized. Each path carries its own set of timelines, document requirements, potential vesting implications, and participant communication needs. Engaging your ERISA counsel, recordkeeper, and advisor early ensures you select the approach that aligns best with your business and workforce.

Once the intended structure is clear, comparing each plan’s investment lineup and fee schedule becomes essential. Two plans often mean two investment menus, different share classes, and separate administrative and advisory fee structures. A side-by-side review can help determine which investments provide stronger performance histories, lower expenses, or more appropriate participant diversification. In many cases, a merger creates an opportunity to renegotiate pricing, streamline the menu, and strengthen fiduciary oversight going forward.

The human element of the merger cannot be overlooked. Eligibility, vesting schedules, and employer contribution formulas often differ between plans, and employees will want to know exactly how these changes affect them. How will service credit be recognized post-transaction? Will vesting accelerate for any employees? When will newly eligible participants enter the plan? Getting clear answers to these questions helps prevent errors in payroll feeds, eligibility tracking, and contribution calculations. It also supports employee confidence during a time when uncertainty can run high.

To protect the organization, a thorough compliance review is equally important. Plan sponsors should evaluate historical 5500 filings, nondiscrimination testing results, prior audit notes, top-heavy status, and whether plan documents are up to date. Identifying potential risks before integration avoids surprises later and may even uncover opportunities to correct issues before they escalate.

Finally, a strong communication strategy ties everything together. Employees notice changes to benefits quickly, and retirement plans are often one of the first areas they ask about. Clear, timely communication can ease concerns, reduce misinformation, and help employees understand how the transition impacts their savings and long-term goals. Frequent updates, educational meetings, FAQs, and reminders can significantly improve the participant experience and trust in leadership throughout the merger process.

Mergers and acquisitions are about more than financial consolidation. They represent a transformation of people, culture, and the benefits that support them. With thoughtful planning and coordinated execution, retirement plan decisions can support and not complicate the success of the transition.

If your organization is preparing for or considering a merger or acquisition, now is the time to evaluate your retirement plan strategy.

We would be happy to help you review your current structure, assess compliance exposure, and walk through options for integrating plans in a way that is efficient, defensible, and employee-focused. Feel free to reach out if you’d like to schedule a discussion or begin a plan review.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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How Inflation Can Affect Retirement Savings and Ways to Mitigate Its Impact

Planning for retirement is challenging enough, but one factor often underestimated is inflation, the gradual increase in prices over time. Even modest inflation can erode the purchasing power of your savings, meaning the money you’ve set aside may not stretch as far in the future as it does today. Understanding how inflation works and taking steps to protect against it can make a significant difference in your long-term financial security.

How Inflation Impacts Retirement Savings

• Reduced purchasing power: A retirement goal of $80,000 annually today might require $110,000 or more in the future,
depending on inflation.
• Eroded investment returns: If your portfolio earns 6% but inflation is 3%, your real return is closer to 3%.
• Higher cost of living in retirement: Healthcare, housing, and daily expenses often rise faster than general inflation.

Historical Inflation Trends

Over the past 30 years, inflation in the U.S. has averaged roughly 2–3% per year, but there have been periods of higher inflation (such as the early 1980s and the recent 2020s) showing that rates can fluctuate significantly. Planning for a range of potential inflation scenarios is key to protecting your retirement lifestyle.

Strategies to Mitigate the Impact of Inflation

• Invest for growth: Incorporating equities can help your portfolio outpace inflation over the long term.
• Diversify your retirement accounts: Using tax-advantaged accounts like 401(k)s, IRAs, or Roth accounts can help increase
after-tax income.
• Consider inflation-protected investments: Options like Treasury Inflation-Protected Securities (TIPS) or certain annuities can offer
safeguards.
• Delay Social Security when possible: Benefits increase each year you delay up to age 70, helping protect income from inflation.
• Review and adjust regularly: Periodically updating your retirement strategy ensures your plan stays aligned with changing
economic conditions.

Next Steps

Inflation can quietly erode your retirement savings if left unaddressed. Take action now by reviewing your current retirement plan, assessing how it accounts for inflation, and exploring strategies to protect your future purchasing power. Schedule a consultation with a financial advisor today to create a plan tailored to your goals and safeguard your financial security in retirement.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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As you near retirement, your focus often shifts from building wealth to protecting it and to making sure the people and causes you care about are provided for. Estate planning plays a key role in that transition.

It’s not just about legal documents; it’s about financial confidence. An effective estate plan helps you protect your assets, guide your loved ones, and create a lasting legacy that reflects your values. Whether you’ve already retired or are counting down the years, here are six essentials to review.

1. A Current Will or Revocable Living Trust

Your will or trust is the cornerstone of your estate plan. It ensures your assets are distributed according to your wishes and names the person who will oversee that process.

If it’s been several years since you last reviewed your documents or if your life has changed through marriage, divorce, relocation, or new grandchildren, it’s time for an update.

For many retirees, a revocable living trust offers additional benefits, including avoiding probate and providing privacy for your estate. A brief conversation with an estate attorney can confirm whether that approach makes sense for your situation.

2. Updated Beneficiary Designations

One of the most common estate planning mistakes is overlooking outdated beneficiary forms. Accounts like IRAs, 401(k)s, and life insurance policies pass directly to the people listed on those forms even if your will says otherwise.

Take time to review your designations to ensure they reflect your current wishes. It’s a simple step that can prevent significant confusion (and heartache) later.

3. Powers of Attorney for Finances and Health Care

Estate planning isn’t only about what happens after you’re gone, it’s also about protecting yourself while you’re alive.

A durable power of attorney authorizes someone you trust to handle financial matters if you’re unable to do so. A health care power of attorney or proxy gives another trusted person the ability to make medical decisions if you can’t.

These documents ensure that if life takes an unexpected turn, someone you choose, not the courts, will step in to help manage your affairs.

4. A Living Will or Advance Directive

A living will allows you to express your wishes for medical treatment if you face a serious or terminal illness. It covers decisions such as life support, pain management, and end-of-life care.

Having these preferences documented removes uncertainty for your loved ones and gives them confidence that they are following your wishes and not guessing at them.

5. An Organized List of Assets, Accounts, and Key Contacts

Your family or executor can’t carry out your plan if they don’t know where to find things. That’s why it’s essential to maintain an up-to-date list of:

• Financial accounts and institutions

• Life insurance and annuities

• Estate documents and passwords

• Contact information for your advisor, attorney, and accountant

Store this list securely and let a trusted person know how to access it if needed. Organization today can save your loved ones enormous stress tomorrow.

6. The Emotional and Psychological Side of Estate Planning

Retirement is a major life transition, one that brings both freedom and reflection. Many people find themselves thinking deeper about family relationships, legacy, and what they want their wealth to represent.

Estate planning isn’t only a financial exercise; it’s an emotional one. It can help bring clarity and purpose as you enter a new stage of life. Deciding how to pass on your assets can spark meaningful conversations with loved ones and help you articulate your values and priorities.

You might even find that reviewing your estate plan offers a sense of closure and peace — knowing you’ve put structure around what matters most to you and those you love.

Bringing It All Together

Estate planning is one of the most thoughtful gifts you can give your family. It ensures your wishes are honored, your assets are protected, and your loved ones are cared for.

If it’s been a while since you reviewed your plan, now’s a great time to start. Talk with your financial advisor and estate planning attorney to confirm everything still reflects your goals. You’ll gain not only legal clarity, but emotional comfort knowing your legacy is in good hands.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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Retirement Planning for Small Business Owners: A Smart Approach to Business and Personal Wealth

As a small business owner, you’re often focused on running and growing your company such as managing employees, balancing cash flow, and planning for the next big opportunity. But one area that can easily slip down the priority list is your own retirement planning. Unlike employees who may rely on an employer’s retirement plan, small business owners are responsible for creating both the structure and the funding of their future financial security.

The good news: with the right strategies, you can build a retirement plan that not only helps secure your future but also supports your business goals today.

Why Retirement Planning is Different for Small Business Owners

Unlike employees, small business owners wear two hats:

• Business Owner: focused on growth, operations, and legacy.

• Individual Investor: focused on personal wealth and long-term security.

The challenge lies in separating these two worlds. Many owners reinvest profits back into the business and delay saving for retirement, assuming the eventual sale of the business will provide for their future. While that may work for some, it creates risk if market conditions or the valuation don’t align with expectations. A strong retirement plan helps diversify wealth and reduce dependency on a single outcome.

Step One: Separate Business and Personal Wealth

Think of your finances as two buckets:

• Business Wealth: the value of your company, cash flow, and any reinvested profits.

• Personal Wealth: retirement savings, investments, and assets outside the business.

The key is to consistently transfer some business profits into personal accounts. This helps ensure your future financial security isn’t tied solely to the business’s success.

Step Two: Explore Retirement Plan Options

Small business owners have flexible retirement plan choices depending on business size, goals, and cash flow. Here are a few common options:

• SEP IRA: Simple, low-cost, and flexible may be best for sole proprietors or very small businesses.

• SIMPLE IRA: Works well for businesses with fewer than 100 employees, easy to administer, with required contributions.

• Solo 401(k): Ideal for one-person businesses or businesses with a spouse as the only employee; allows higher contribution limits.

• Traditional 401(k): Scales well for growing businesses, provides tax benefits, and attracts/retains employees.

Each plan has unique rules on contributions, tax advantages, and administration. The right fit depends on your business goals and whether employee benefits are part of the picture.

Step Three: Balance Growth and Security

Reinvesting profits in your business can yield high returns, but it also concentrates your risk. By setting aside money in a retirement account, you create a safety net and diversify your long-term wealth. Many successful owners adopt a strategy of disciplined contributions of allocating a set percentage of profits each year to retirement savings, no matter what.

Step Four: Plan for an Exit Strategy

At some point, every owner transitions out of their business; whether through sale, succession, or closure. Your retirement planning should include:

• Valuation of the business to understand what it may be worth.

• Succession planning if family or employees are potential successors.

• Diversification of personal assets to ensure your financial future doesn’t rely solely on the business sale.

The Advisor's Role

As your plan advisor, my role is to help you evaluate options, separate business and personal goals, and create a strategy that works today and in the future. Whether that means designing a 401(k) for your company, guiding you on contribution strategies, or coordinating with your CPA and attorney on tax and estate considerations, the goal is the same: give you confidence that your hard work today translates into financial security tomorrow.

Final Thought

Running a small business is demanding, but your retirement shouldn’t be an afterthought. By taking a proactive, structured approach, you can protect your future, reduce risk, and enjoy the financial clarity that comes from knowing both your business and personal wealth are working together for your long-term success.

Click here to access our Retirement Planning Checklist for Small Business Owners

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Roth Catch-Up Contributions - Are You Ready for January 1, 2026?

Starting January 1, 2026, a key provision of SECURE 2.0 will officially take effect: Roth Catch-Up Contributions will be mandatory for certain high-income earners aged 50 and older. This change, originally slated for 2024, was delayed giving plan sponsors, recordkeepers, and payroll providers time to prepare. Now, with the final regulations released by the IRS and Treasury Department, the countdown is real.

What's Changing?

Under the new rule, participants aged 50+ earning more than $145,000 in prior-year wages must make their catch-up contributions on a Roth (after-tax) basis. Traditional pre-tax catch-up contributions will no longer be allowed for this group.

This shift is designed to enhance retirement savings flexibility and tax diversification, but it also introduces operational complexity for plan sponsors.

What You Need To Do Now

With the effective date fast approaching, plan sponsors should take the following steps:

• Confirm with your recordkeeper that Roth catch-up functionality is enabled and tested.

• Coordinate with your payroll provider to ensure wage tracking and Roth designation are properly configured.

• Review participant communications to ensure employees understand the change and its impact.

• Consult resources like Fidelity's Roth Catch-Up Resource Center for implementation guidance.

Helpful Resources

• NAPA: What's the Actual Effective Date? - Clarifies the timeline and compliance expectations.

• 401k Specialist: IRS Final Regulation Summary - Details on the finalized rules.

• SPARK Guide for DC Plans - Practical implementation tips.

Final Thoughts

January 2026 may feel distant, but the groundwork must be laid now. Don’t wait until year-end to discover gaps in your systems or communications. Confirm with your partners today and ensure your plan is ready to go.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

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