This week my son, Asa, is participating in a rite of passage program. There was a time when every culture marked the transition from boyhood to manhood. Today, most teens drift into manhood, this experience marks the transition from boyhood to becoming a young MAN.

As I have been thinking about him and praying for the event, it also reminded me of another transition, one we talk about all the time, The Retirement Shift.

Every week I have conversations about this, how the investing strategy that got you here, won’t get you there… To retirement vs through retirement.

Retirement planning is also blurred, most advisors say they help with retirement planning, however. most of the time that means saving and growing for retirement. Few advisors make the transition to real planning in and through retirement. That is our specialty.

What we do is like a rite of passage for retirement. While you don’t have to go through the challenges like Asa will face in his rite of passage to become a confident young man, secure in his identity, there are challenges that need to be addressed for retirement confidence.

If you are not feeling confident in your retirement or if you have more questions about this, just reply to this email or give us a call.

Market Update

The S&P 500 officially entered its 7,000 era, surging 4.5% last week and notching three new record highs along the way for its best weekly performance in a year. The Dow also ended just under 50,000 and the Nasdaq pushed closer to 25,000. All of this, and we’ve now fully recovered everything lost from the March 30 lows. However, that doesn’t mean every account is fully recovered, if you have any questions about this, just let us know.

Markets will continue to react to headlines about conflict in the Middle East.

There’s also an unresolved fight over who will lead the Federal Reserve after May 15. That uncertainty could create additional market noise in the weeks ahead.

Overall, the bounce in the market was remarkable, especially given all the turmoil we’ve seen in the last six weeks.

In The News

Are you in the danger zone?

What Is the ‘Retirement Risk Zone?’

The Morningstar article highlights:

• The “Retirement Risk Zone” is the critical 10-year window consisting of the five years before and five years after you retire.
• This period is dangerous because a market downturn can permanently shrink your peak savings right when you need to start withdrawing income.
• “Sequence-of-returns risk” means that the order of your investment returns matters more than the average return during these specific years.
• A major market drop early in retirement can force you to sell shares at a loss, which significantly accelerates how quickly you might run out of money.
• You can defend against this risk by building a “Social Security delay bridge” using safe assets like short-term bonds or cash reserves. (We would differ on the strategy of delaying Social Security when retired. Why? In a nutshell, it causes to much decrease in your accounts, but just hit reply if you would like a more detailed explanation.)
• Transitioning your portfolio from aggressive growth to income-protection strategies before you hit the zone provides a vital safety net.
• Maintaining a flexible withdrawal strategy allows you to help reduce spending during down market years to preserve your principal.
• Ultimately, the goal is to help ensure that temporary market volatility does not result in a permanent reduction in your retirement lifestyle.

This article highlights the importance of The Retirement Shift!

The great wealth transfer is giving Americans another reason to argue

The USA Today article highlights:

• Families lose millions in inheritance to legal fees and lengthy court battles when estate plans are unclear
• Disputes often arise from unclear wills, outdated beneficiary designations, and lack of communication
• Blended families and complex assets increase the likelihood of inheritance conflicts
• Proper estate planning and regular updates can help prevent costly legal problems
• Open conversations with heirs and professional guidance are recommended to avoid misunderstandings and protect your legacy

If you don’t have an estate plan or haven’t reviewed it recently, let us know. Our team can help.

Just for Fun

Dad Joke of the Week:

What did the cow say to the leather chair? “Hi, Mom!”

Say What?

A red fox stows away on a cargo ship, traveling from England to the US.

A red fox somehow slipped onto a cargo ship that traveled from Southampton, England, to New York, where the animal is now in the Bronx Zoo’s care. The zoo said Wednesday that the 11-pound (5-kilogram) male fox appears healthy after early examinations.

It’s not clear how the animal got on the ship full of automobiles, which left Southampton on Feb. 4, according to the zoo. U.S. Customs and Border Protection said the ship’s crew discovered the furry passenger while traveling to the Port of New York and New Jersey, where the vessel arrived Feb. 18. Officials brought the fox to the zoo the next day. He’s estimated to be 2 years old.

This Week in History

1822 – Future General and President Ulysses S. Grant is born

1865 – John Wilkes Booth, assassin of President Abraham Lincoln, is killed

1945 – The U.S. Army liberated Dachau concentration camp

1967 – Muhammed Ali refuses Army induction

1986 – Nuclear Test results in disaster at Chernobyl

What Did it Cost? (Newspaper)

1975: $0.15

2005: $0.35

2025: $1.50