So far, October has been a one-step-forward-and-two-steps-back kind of month. Sure, we hit new records on the S&P 500 and Nasdaq earlier this month, but since then we’ve bobbed around. Despite having a few rebounds, we haven’t achieved new highs and have instead retreated more than 200 points on the S&P 500 and around 1,700 on the Nasdaq.

AI has been driving markets the past few years. Investors have vacillated between concerns one day that companies are overspending on the build-out and the next day that spending isn’t the problem. The AI trade will likely remain volatile, but it also seems like there may be way more potential upside to be had there.

The macro environment is overwhelming what should otherwise be a really good set-up for a strong run into year-end. But we need to see some of these concerns settled first. One guarantee is that the midterms will be over by early November, so that’s a start.

Strategy Spotlight

Time is of the Essence!

Our popular CD alternative that features up to 10% per year in returns with CD-like liquidity is ONLY available through November. If you want to lock in higher returns for a longer period than your typical CD while still having liquidity, then NOW is the time to talk.

The Medicare open enrollment window is now open! If you want to examine your plan and see if there is a better alternative, NOW is the time! Let us connect you with someone who can help!

In The News

Study Finds Combining the 4% Withdrawal Rule and Annuities Yields Strongest Retirement Results

This Investopedia article highlights:

• A recent study compared the traditional 4% withdrawal rule with annuity-based retirement income strategies
• Researchers found that neither a pure 4% withdrawal strategy nor putting all assets into an annuity produced the strongest overall outcome.
• The 4% rule created an increasing risk that a portfolio could eventually be depleted.
• Putting all retirement assets into an annuity provided income but reduced access to assets and limited money that could be left to heirs.
• The highest-rated approach combined annuity income with investment assets.
• In the study, allocating roughly half of retirement savings to an annuity produced the strongest overall score.
• The winning strategy balanced reliable income, flexibility for unexpected expenses, and the ability to leave assets to beneficiaries.
• The study used a simple immediate annuity rather than more complex annuity products.
• The findings suggest retirement income planning may be more effective when multiple income tools work together rather than relying on a single strategy.

I agree that a combination of annuities and managed accounts, red and green, creates the best mix for retirement income in most cases. However, we are confident in a 6% withdrawal rate because of how we manage. Click here to learn more or just hit reply!

Why 2027 Medicare surcharges may be harder to predict

The USA Today article highlights:

• Medicare surcharges for 2027 may be harder to predict than usual because the income thresholds are tied to inflation data that may be calculated differently this year.
• Medicare premiums are usually announced in late October or early November and are often deducted directly from Social Security checks.
• Part B premiums have risen faster than Social Security cost-of-living increases in recent years.
• Some retirees can pay much more for Medicare if their income goes even slightly above certain IRMAA thresholds.
• IRMAA is based on your income from two years earlier, so 2027 premiums are tied to 2025 income.
• IRMAA uses modified adjusted gross income, or MAGI, to determine whether a surcharge applies.
• Higher income can increase what someone pays for both Medicare Part B and Part D.
• The government shutdown in late 2025 created uncertainty because one month of inflation data was not officially recorded.
• Experts say that missing inflation data could slightly change where the 2027 IRMAA income brackets end up.
• Even a small difference in the bracket cutoffs can matter for people close to the line.
• The standard Part B premium for 2027 is projected to rise to $209.50 per month.

If you have questions about Medicare or pre-65 health insurance, we have a team to help you! Just hit reply or give us a call, and we will connect you to the right person who can answer your questions, clear up confusion, and guide you in the best healthcare plan for you.

Then, if you are expecting Medicare surcharges, we can talk about strategies to reduce IRMAA.

Just for Fun

Dad Joke of the Week:

What does garlic do when it gets hot? It takes its cloves off.

This Week in History

1842 – Abraham Lincoln marries Mary Todd

1924 – The first female governors are elected in the United States, in Texas and Wyoming.

1952- The United States tests the first hydrogen bomb.

1983 – MLK federal holiday is declared.

1993 – The European Union is officially established

2008- Satoshi Nakamoto publishes a paper introducing Bitcoin.

What did it cost? (bacon)

1924- $.035/lb

1943- $0.46/lb

1969- $0.89/lb

1992- $1.49/lb

2019- $3.99/lb