admin123

Published November 3, 2023 In this blog, we’ll discuss:  Economic Health: How does the economy look? What are the data points telling us? Here’s a short preview What’s new with FBS?: We have a new tool to help us mitigate risk for our portfolios, are you interested?   We are thrilled to present to you the very first edition of the FBS Securities Monthly Newsletter. Before we proceed, we would like to express our utmost appreciation for your unwavering support throughout the years. We’re excited to continue growing with you and serving your investment needs.  Our goal with this monthly newsletter is to keep you informed about various topics including the latest news on markets, economy, performance, and new investment opportunities. This introductory newsletter is just a sneak peek of what’s to come. Stay tuned for our next edition where we’ll dive deeper into these topics.  Thank you for being a part of our journey. Let’s get started!   Economic Health: The Data Points I will start with a famous quote by W.Edwards Deming “Without Data, you’re just another person with an opinion.” At FBS Securities, we strongly believe in the power of data to back our opinions. Speaking of which, let’s take a look at the latest jobs & inflation report. On October 6th, the jobs report came out much hotter than expected, with 336k jobs added compared to an estimated 117k. This is an important metric for the Federal Reserve, as a strong jobs report typically signals confidence in the economy’s ability to handle another rate hike. On October 12th, the CPI report came in slightly higher than expected, 3.7% vs 3.6%. Beginning of the month, the markets predicted a 25% chance of the Fed raising interest rates by 25 basis points. However, since the data release, that number has decreased to 11%.As per our views, we believe that the current Fed team’s goal of keeping inflation at 2% is debatable whether it is an average or absolute. We anticipate the Fed to be very vigilant in monitoring the inflation metric and we will keep a close eye on the important metrics used by the Fed. We will keep you informed of any significant developments in this regard. Please stay tuned for our next newsletter for further updates.   What’s new with FBS? I am thrilled to share with you that FBS Securities has recently launched a new tool called Darwin, which aims to reduce risks. The tool is powered by AI technology, developed in collaboration with academia by our FinTech partner. The academia behind this technology is headed by a UT-Austin Professor who was once a student of William F. Sharpe, the inventor of the Sharpe Ratio. The Darwin model helps us proactively approach the market by adjusting the portfolio at the beginning of every month. By doing so, we proactively aim to improve our Sharpe Ratio, which simply means that we aim to achieve potentially higher returns with lower risk. I have attached a screenshot based on the current backtest for our “Moderately Aggressive Portfolio”. We are currently in the process of implementing this model, and if you require more information, please do not hesitate to contact us. FBS Securities is a registered investment advisory firm. This document is for informational purposes only and does not constitute an offer or solicitation to invest in any security or advisory service. Past performance is not indicative of future results. All investments involve risk, including the loss of principal. FBS Securities provides personalized investment advice and management services for individuals and institutional clients. Our strategies may involve a variety of investment options, including equities, fixed income, and alternative investments. Clients should carefully consider their individual investment objectives, risk tolerance, and financial situation before investing.Information provided herein has been obtained from sources believed to be reliable, but FBS Securities does not guarantee its accuracy or completeness. Material presented should not be considered as a substitute for independent professional advice. Any specific securities or investment strategies mentioned are provided for illustrative purposes only and do not constitute a recommendation. For additional information about FBS Securities, please visit our website at www.fbsgroup.co or contact us directly.

3 Hidden Opportunities & 2 Costly Mistakes Is a 2023 recession likely? Inflation is high, and interest rates are rising. If you’re worried, you’re not alone — even the World Bank has expressed concern that a 2023 recession is on the way.1 Worried about losing money when stocks drop? Nervous you’ll have to sell your investments at a loss? Having nightmares about pushing back retirement? Your stock portfolio is likely to drop when the market does, and it’s never clear how long a downturn will last. You may already be planning to spend less and cut back on travel when the recession hits. But you’re looking for specific steps to take to make sure you avoid doomsday scenarios. No matter your history with recessions, you can benefit from using the secrets of the ultra-wealthy to make money during a chaotic economy, just as they do. Whether you’re not sure what the definition of recession really is or you’re positive we’re in one, the storm clouds of recessions hide silver linings. You just have to know where to look. Once you get your hands on a good survival strategy, you’ll be ready to potentially make money instead of losing it — even when others around you get lost in panic and anxiety. This recession survival guide is designed for hard-working Americans — just like you — who want to know not only how to avoid losing too much money when stocks drop, but how to take advantage of it. You may be asking yourself questions like: If any of these resonate with you, keep reading… Recession Opportunity #1 The Inflation Monster Prices have risen substantially from April 2021, when inflation suddenly jumped from 2.6% to 4.2%, and didn’t dip below 7.5% in 2022.2 It’s hard to believe a rise in prices can be a money-making opportunity. And yet… If you shift your focus away from stocks during this time and consider different kinds of assets you might not have considered while the bull market was roaring, you can tame the inflation beast. By adding investments that traditionally perform well when prices rise, you further diversify your portfolio. You also capture some benefits of inflation elsewhere in your financial life. Vital questions to ask include: Recession Opportunity #2 Rising Along With Interest Rates Since 1981, the Federal Reserve has dictated a consistent decline in effective interest rates, from 15% all the way down to nearly zero in 2020.6 Given that most of us really don’t know what high interest rates look like, rising ones might seem even scarier than rising inflation. While there certainly are downsides to rising rates, you can still take advantage of them (just as you can with inflation). Again, you’ll need to look away from the stock market. Vital questions to ask include: Recession Opportunity #3 Tax Strategies That Won’t Bite You Taxes may be inevitable, but you don’t have to overpay them either (if you know what you’re doing). When prices drop, you have the opportunity for some legal ways to make your taxes work for you in a recession. Vital questions to ask include: Recession Mistake #1 Waiting Too Long to Take Advantage With these strategies, you have an opportunity not only to limit portfolio losses in a recession, but also to potentially profit from the downturn. Deciding that there are no moves to make is a mistake. You may not be able to take advantage of all the opportunities available, but there’s probably at least one that you could capture when the market drops. Some of these strategies are only available through the end of the year in 2023, so you’ll need to plan ahead of time and make sure you’re securing the ones that make sense for you. By putting the right techniques in place before they’re gone, you’ll position yourself well for the duration of the recession. Vital questions to ask include: Recession Mistake #2 Trying to handle the recession by yourself When recessions do arrive, they’re accompanied by chaos and it’s hard to stay level headed. It’s not always clear when a recession is actually here, since a stock drop could be just a temporary pullback that gives stocks some breathing room. There’s a lot of noise, from the media, friends and colleagues, and probably people that you meet on the street. It’s hard to identify the alarm bells, and it’s hard to do by yourself surrounded by conflicting advice. Wealthy investors almost always have advisors that they consult with before making strategic financial decisions, and it’s a smart move for you to do the same thing. The wealthy know what they don’t know, so they look to professionals to help them craft a plan that allows for healthy portfolios in both bull and bear markets. Vital questions to ask include:

The “Groundhog” 401(k): Hidden Strategies Used by Smart Investors Have you ever seen a GROUNDHOG poking its head out of the ground? What you see is a cute little groundhog poking his head out of his burrow. What you don’t see is the complex web of precisely engineered burrows — hidden from site. These “hidden strategies” are what allow the groundhog to live a comfortable, safe life. In this guide, you’ll discover why your 401(k) strategy should be “engineered” like a groundhog burrow, because there’s a lot more to it than what you see on the surface. Most high earners are already leveraging the power of their employer-sponsored 401(k) to save for retirement. They understand the well-publicized advantages: tax deferral, the “free money” provided by the employer match, and the “catch-up” provision after age 50. However, smart investors understand that there is so much more hidden beneath the surface of their 401(k) than just the visible benefits. If you have an employer, you’re most likely planning to max out your 401(k) employee contribution, as well as your employer match. If you’re self-employed, you’re probably figuring out which retirement plan is best for your own business. Yet when you research more ways to save, you might feel like you’re in the movie Groundhog Day because you find the same advice, over and over. This special guide is designed to reveal additional “hidden” benefits of your 401(k) account that can help you supercharge your retirement plan. Whether you’re enrolled in a group plan or considering a solo 401(k) for your business, you’ve come to the right place. Some of the questions you might be asking yourself right now include: How can I make the best use of the available investments inside my retirement account? How do I coordinate my 401(k) with the rest of my financial plan? What more can I be doing to save for retirement? Are there more tax-efficient ways of saving and investing my money? IF THESE STRIKE A CHORD, KEEP READING… STRATEGY 1: Supercharge Your Contributions When it comes to funding your 401(k), the immediate tactic is to maximize your allowable employee contribution. If you’re reading this, you probably already are. Your plan may offer you the ability to contribute either after-tax dollars into a Roth or tax-deductible money into a Traditional 401(k). Your employer match, if available, is always Traditional. Concealed underneath is the idea that you could potentially add much more to your tax-deferred account. As you may already know, 401(k)s are a type of defined contribution (DC) plan. The annual limit to fund a DC plan for one person (including both employer and employee contributions) is much higher than your employee contribution cap.1 Some plans allow employees to add more retirement money until they reach this limit. If your 401(k) plan allows, you can contribute after-tax dollars to your plan to reach that upper threshold. They’re not tax-deductible, but they do grow tax-free as long as you obey the usual caveats. This strategy is sometimes referred to as a “Mega Backdoor Roth.” Understanding how and when to supercharge your savings can give you a massive leg up. Critical questions to ask include: Am I eligible to supercharge my contributions? How can I balance current-year tax savings with my long-range goals? How do my 401(k) contributions align with the rest of my financial plan? What trade-offs do I need to consider if I want to supercharge my 401(k) account? STRATEGY 2: Optimize the Investments in Your 401(k) PLAN Your plan provider has already given you a standard menu of investments within your 401(k). Depending on your situation, you may benefit from advanced self-directed strategies that can increase the range of investments available to you, potentially reduce your tax bill, or improve the aftertax return of your overall portfolio.2 For example, if you already have investments that generate a lot of income, shifting them into your retirement account may create a more tax-efficient portfolio. Though it’s not the right move for everyone, taking control of your 401(k) can potentially help you maximize the benefit of this powerful retirement tool. Critical questions to ask include: Is my 401(k) optimized to fit into my overall investing strategy? Do I have the right blend of tax efficiency and portfolio diversification? Are there opportunities to better optimize my investments within my 401(k)? Does my 401(k) plan allow me to control the investments inside? Have I discussed my 401(k) investments with a financial professional? STRATEGY 3: Make Tax-Smart Moves For Your 401(K) PLAN Average investors understand the “surface-level” basics of deciding between Traditional and Roth contributions. However, a hidden 401(k) advantage is using both types of tax-deferred accounts to create tax savings now, while generating tax-free income in retirement. If your plan allows it, you can convert your Traditional 401(k) to a Roth. Done in a tax-coordinated way, you may be able to convert portions of your Traditional account to a Roth without pushing yourself to a higher tax bracket. Done correctly, these Roth conversion opportunities can potentially help you create more tax-free income in retirement while still getting the benefits of tax savings now. Critical questions to ask include: Can I convert my Traditional 401(k) to a Roth? What are the future tax consequences of my existing retirement accounts? Should I be “filling up” my tax bracket with taxable events such as Roth conversions that don’t push me into a higher tax bracket? Is there a better way to balance tax efficiency now and at my retirement? BONUS STRATEGY: for Business Owners & the Self-Employed Entrepreneurs already know that there are plenty of options to create a retirement account. These plans, SEP and SIMPLE IRAs, can be the right answer for some business owners. However, the solo 401(k) may allow you to set aside more money for retirement.3 You have the opportunity to create a Traditional or Roth account as well as make both employee and employer profit-sharing contributions. You’re also allowed to make solo 401(k) contributions for your spouse,

Your Investment Recovery Playbook3 Urgent Opportunities & 2 Uncommon Defense Strategies Will a recession arrive in 2023 and how bad will it be? The threat of recession has been hovering over the American economy since 2022, and it may arrive soon.1 How long will it last (and how bad will it get)? When you’re dreaming about (or seriously planning for) retirement, you may worry: “Will I need to work longer, delaying my retirement dreams?” “Will I have to downgrade my retirement lifestyle so my money lasts?” Knowing what to do during and after a recession can help you keep your portfolio working towards your retirement date. Losing money is a big fear during market declines, with good reason. Logically, you know that bear markets and recessions come and go, but you still wonder where you should invest, whether you should sell out of the market, or if cash is “safer” than staying invested. So what do you do next? Fortunately, the market has been through tough times like these, and you can steal the secrets of those who’ve used recessions to grow their investments before you. This personal recovery playbook is designed for hard-working savers just like you who are looking for a way to help recover from a recession. You may be asking yourself questions like: If any of these questions resonate with you, keep reading… Offensive Play #1 Use the bucket, not the thimble Bear markets tend to make investors (especially pre-retirees!) uncomfortable, but remember that now is the time when opportunities are available at a discount! Bear markets don’t last forever — in fact, they average about nine and a half months in duration.2 You don’t want to miss out on a sale, so you need to keep your eyes open and act fast. You have the opportunity to: Instead of focusing on losses, look for underpriced investments that can help you withstand market turmoil without giving up the growth your investments need for the long term. As Warren Buffett says, “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” Game-changing questions to ask yourself include: Offensive Play #2 Control what you can When the next recession will arrive, how long it will last, and how long it will take to recover are all unknowable. However, this doesn’t mean your money is completely outside your control. You determine: … and (barring unforeseen circumstances such as illness) you decide if: But you may not need to change anything about your retirement dream, even during a recession if you take strategically timed action while you’re working. Game-changing questions to ask yourself include: Offensive Play #3 Remain in place during the worst days of chaos Selling off all your investments would be a serious mistake, though one that’s easy to make when the market is tumultuous and your next play may not be obvious to you. The problem is once you’ve fled to safety, it’s hard to start investing again until the market starts rising, which means you’re buying high. If you want to make the most of the growth potential of the stock market (and stocks are the asset class known to outpace inflation), you need to be invested.3 Turn off the financial news if you need to, and check your portfolio value less frequently so you’re not tempted to sell your growth assets. Game-changing questions to ask yourself include: Defensive Play #1 Assess your need for protection Depending on when you set up your investment plan, you may be a few years older and close to needing the money that you’ve invested. There are a number of ways that you can be more defensive and protect what you have, while still leaving enough money invested that you capitalize on the next recovery and bull markets that will materialize in the future. You might consider: While protection sounds good in theory, you do need to pay for it one way or another — in fees or in lower returns over time. Make sure you take the cost into account when you’re thinking about safeguarding your money. Game-changing questions to ask yourself include: Defensive Play #2 Don’t reinvent the wheel This probably isn’t your first market dip, and it likely won’t be your last. However, there is a wealth of wisdom available from those who have (collectively) invested for many years. They know what works and what doesn’t. Many wealthy investors hire financial professionals with experience in chaotic times to help them make the right decisions for themselves and their families. TV and social media are full of so-called experts and talking heads. You might have friends who report their portfolio moves to you in real time. Yet no one but you truly understands your personal situation. Their advice could be way off the mark and even result in you losing money. Instead, talk to a professional with knowledge and experience who can tailor their advice to fit the needs of you and your family. Game-changing questions to ask yourself include:

New Laws Open 6 Estate Plan “Wormholes” & Why You Should Revisit Your Plan Right Away Law changes have created incredible estate planning opportunities for savvy Americans. However, the massive changes may have made many estate strategies outdated. If you haven’t created or reviewed your estate plans in light of these new rules, you’re at risk of… All because your will, trust, or estate plan hasn’t been updated to reflect the new laws. Right now, you’ve got a limited window (just until Dec. 31, 2025 or maybe sooner if lawmakers take these opportunities away) to take advantage of the possibilities introduced by recent laws. Inside, you’ll find the top new opportunities and the shocking changes that may put estate strategies at risk… PLUS a simple checklist to help you clarify your situation and the exact next steps you need to take. MAKING THE MOST OF NEW OPPORTUNITIES (AND AVOIDING THE NEW PITFALLS) 1. DON’T ACCIDENTALLY DISINHERIT YOUR SPOUSE! Plans created prior to 2017 often included formulas based on old federal estate-tax exemption amounts (as low as $675,000 in 2001).1 A consequence of an outdated strategy could accidentally pass your entire estate to children or heirs, leaving your spouse with nothing. Your next step: Do you have a dangerously outdated estate strategy that leaves your spouse or loved ones at risk? 2. YOU AND YOUR SPOUSE CAN GIVE DOUBLE TAX-FREE Current laws doubled the federal estate and gift tax exemption through Dec. 31, 2025 (it’s $12.06 million per person or $24.12 million per couple in 2022 but is scheduled to return to 2017 levels soon).2 Savvy Americans are taking advantage of the higher limits to revisit old estate strategies and make gifts before the deadline expires. Your next step: Do your estate plans take advantage of the temporary (substantially higher) estate tax exemption? 3. LEVERAGE ADVANCED TRUST STRATEGIES Recent law changes opened the door to advanced trust strategies that could potentially help you immediately cut your income tax bill, protect yourself from lawsuits, and create multi-generational tax shelters while giving you control over your assets now and in the future.3 Your next step: Does a trust make sense for you? 4. REVISIT YOUR POWER OF ATTORNEY When the estate tax exemption was lower, it made sense to give a trusted agent the power to make financial gifts (to avoid estate tax). Today’s much higher estate tax exemption means you might need to reconsider giving someone else too much control over your money. Your next step: Does your current Power of Attorney include the ability to make financial gifts? 5. RETHINK YOUR “STRETCH” IRA STRATEGY If you planned to leave your IRA or 401(k) to children or grandchildren who would “stretch” the distributions across their lifetimes to create a multi-generational legacy, you’ll need to think again. The 2019 SECURE Act killed the stretch IRA by forcing most non-spouse beneficiaries to withdraw (and pay taxes on) the full value of an inherited IRA or 401(k) within 10 years of inheritance.4 If you have one, you MUST take action now to update your strategy. Your next step: Does your estate plan include a stretch IRA? 6. A TRUST MAY NOT BE THE RIGHT BENEFICIARY OF YOUR IRA “Pass-through” or “conduit” trusts were common ways to protect assets while allowing heirs the benefits of an inherited IRA. Recent laws removed many benefits to making trusts beneficiaries of IRAs. If you have one, you MUST take action now to update your strategy. Your next step: Is a trust the beneficiary of your IRA?

The Ethical Investor’s 5-Step Guide Have you ever looked at your financial portfolio and, to your dismay, discovered that you’re investing in a company whose practices make you cringe? Do you have strong beliefs about how the world could be better? Maybe you support the work of some nonprofit organizations or you’re involved in taking direct action to make the planet a better place to live. Wouldn’t it be great if you could align the way you manage your wealth with the values that you hold closest to your heart? Believe it or not, it is possible to make money and still manage it in a way that supports your purpose. In fact, in certain circumstances, ethical investments may potentially outperform their peers.1 With so many options now available, strategies that align with your personal values and beliefs can satisfy investing with integrity while still maintaining a diversified portfolio.* However, sometimes it can be difficult to find the right investments. Investment companies may take very different approaches to what might seem like the same value system. When you want to make sure that your money only supports organizations that you approve of, it’s critical that you know what your purpose is. Do you want to specifically invest only in something that you believe in, or do you want to screen out the ideas that don’t serve your beliefs? Or both? If you dread finding out that something you disapprove of is in your investment portfolio, you’ve come to the right place. This step-by-step guide is specifically designed for ethical people with strongly-held beliefs just like you who are searching for a way to manage their money without losing integrity. While you want to invest with purpose, you also need to make sure that your portfolio can help you reach your financial goals. As a values-driven investor, you may be asking yourself questions like these: If any of these questions had an impact on you, keep reading… STEP 1 : Align Your Beliefs and Value System with Your Financial Goals In your eyes, what constitutes a company with ethics and integrity? Think of a couple of businesses that you would be happy to invest in. Are there certain industries you want to avoid because the entire field is harmful to the world in some way? What are their characteristics? Connect with what’s deeply important to you. What are you on this planet to do — what is your purpose? What matters most about the impact you want to have on the world? Identify your priorities so you can determine more easily what you want to include and what you prefer to exclude. Once you’ve harnessed the power of your own purpose, consider your financial goals, too. One of them is likely building a nest egg for retirement, but you may have others as well. You want your investments to do well (in terms of performance) and to do good (in terms of ethics). But don’t worry, those two categories are not always mutually exclusive! Critical questions to ask yourself include: STEP 2 : Transform Your Current Plan into a Purpose-Driven Strategy It’s pretty common for people to save for retirement without really having a concrete plan for their nest egg. Often they decide to save “as much as they can.” Many times they invest in securities that people they know have recommended. Saving and investing in something is better than nothing, but this isn’t a plan that’s likely to get you to where you need to go. Think of a couple of businesses that you would be happy to invest in. On the other hand, you might have someone who’s knowledgeable about money helping you with a financial strategy. But while they understand the stock market, they don’t understand your value system. Or they may not understand how to invest specifically in alignment with your beliefs. You might have a strategy, but your heart isn’t in it. Either way, you don’t have an approach that unites your values with your financial goals. Aligning your beliefs and your investments requires some forethought on your part. It’s critical to develop a framework with the timelines for your goals as well as the plan to get you to those goals, and ensure that all the tools you’re using line up with your values. That way you can reimagine your plan to account for both financial and non-financial desires, without giving up either. You’ll need to understand what’s currently in your portfolio, and what might need to change so that you can finally feel good about your investments. Critical questions to ask yourself include: STEP 3 : Make an Impact While Building Your Wealth You can help build a better world for your family and your community, and also pursue your financial goals. Many folks are content to invest without considering their values and simply donate to the charities of their choice. But by investing in ways that you can ethically support, you’re living your values every day. Critical questions to ask yourself include: STEP 4 : Vet Your Investments You know that modern-day advertising is designed specifically to target certain parts of the brain to make people feel good about buying. You also know that many companies include purpose and values in their mission statements… and that many of them don’t live up to their own hype. But how can you tell which is which? Investing with integrity means results matter. It’s not just about claiming that the company is doing good in the world, it’s about the company actually making a meaningful impact. As a result, examining these companies is key for ethical investors. The problem, of course, is that as a busy American, you simply don’t have the time to read every prospectus. Or examine every SEC filing to make sure that the prospective investment meets your standards for performance and purpose. Yet it’s important to sift the wheat from the chaff, which is easiest when you have a process you

Is the thought of losing money in retirement keeping you up at night? Your retirement income isn’t just about whether you can afford country club fees or your favorite stylist. When you’re retired, the amount of money you spent years saving has to cover your housing, health care costs, food, clothes, and basic needs FIRST – before you even start thinking about hobbies. Every bump (big or small) in the markets can feel like a threat to your living expenses. That kind of fear and stress can stop you from enjoying a deep sleep, turn your stomach, and keep you from relaxing in your retirement the way you hoped. If you’re constantly worrying about your income, you’re not alone! 87% of Americans are concerned about a lack of income in retirement.1 News from the economic front doesn’t help! When a recession comes, the value of the money you have in the stock market drops. As you take money out to cover your living expenses, you find there’s less and less to withdraw. And everything keeps getting more expensive, including things like gas and groceries that you need on a regular basis. You’ve seen how this kind of inflation can wreak havoc, because in 2022 the inflation rate, at 7.1%, was higher than it had been since the early 1980s.2 And who knows when that kind of inflation shock will happen again? When you don’t know how much income you’ll be bringing in every month, it’s hard to be sure that you can pay your bills and buy gas and food that month. Uncertainty when it comes to your money is frightening – but fortunately, there are some ways that you can steer clear of these retirement obstacles and avoid getting shipwrecked over things you can’t control. Wealthy people know how to navigate these complexities, but you don’t have to be wealthy to use their techniques. They’re able to make their retirement income more predictable by making informed decisions about their money. While the wealthy have financial professionals to help them create a stream of retirement income, you may be able to build your own – and enjoy a good night’s sleep knowing you’ll have the money to cover expenses. This guide to charting your own journey through retirement is designed for people who’ve saved their money, just like you, who want to ensure that their income will satisfy their needs in retirement. You might be asking questions like: If you’d like the answer to any of these questions, keep reading… RETIREMENT RESCUE #1 “Bucketize” your retirement money Although the stock market has a lot of ups and downs (and might be making you a little seasick when the ride gets rough!), stocks and stock mutual funds are ways to deal with costs that keep getting higher. Gas, food, and clothing tend to increase in price on a regular basis … but so do stocks. Historical trends show that the S&P 500 rises 3 out of every 4 years.3 That means it’s a reliable investment to have some of your retirement money in stocks even after you retire, because costs can continue to get higher indefinitely. However, that doesn’t mean that you have to leave all of your money in stocks. In fact, you shouldn’t! There are three time periods that your retirement nest egg needs to cover: These three different time “buckets” are suited to different types of investments: cash for the near-term bucket, bonds and bond funds for the medium-term, and stocks for the long-term. That way, if a recession comes, you have buckets of cash and bonds that you can tap into for your income. Your withdrawals won’t affect your stock market holdings. You can wait to sell your stocks at a time when they’re high instead of low, and refill your cash and bond buckets at that time. Plan to periodically refill the cash and bond buckets from your stock bucket to help you maintain your income no matter what the stock market does. Important questions to ask include: RETIREMENT RESCUE #2 Make the right decisions on Social Security Social Security is a key component of retirement for nearly all but the wealthiest Americans. The most recent data indicates that about 84% of Americans over 65 receive Social Security.4 As critical as Social Security is for retirees, there’s no specific age to start claiming. The range is from age 62, which is the earliest you can take benefits based on your own work record, to age 70. That’s the latest you can delay receiving benefits. Everyone has a full retirement age (FRA) that’s based on their birth year. If you were born in 1960 or later, your FRA is 67. If you take Social Security earlier than your FRA, you permanently reduce your benefits. If you delay taking it (up to age 70), you receive a permanent increase in your benefits. Whether it’s worth delaying your benefits past age 62 depends on how long you live. If you live a long time, you’ll be better off delaying until age 70, because the increase you get will eventually outweigh the payments you would have received if you took them earlier. But how could you possibly predict how long you’ll live? Also, whether you’re married or single can determine a good age for you to start claiming benefits. The good news is that Social Security payments are the same every month during the year no matter what the stock market is doing. They’re also subject to cost-of-living adjustments (COLA), so after a year of high inflation, your benefit will automatically increase a bit with the COLA. If you just started taking your benefits and you realize that you may have taken them too early, in some circumstances you can halt your benefits and take them at a later time.5 There are some rules to follow, and you’ll need to pay back the benefits you’ve already taken, but it could be an option worth considering. Important questions to ask