Now more than ever, it’s easy to get caught up in the headlines. Market volatility, economic forecasts, and changing policies out of Washington, D.C., can make even the most disciplined investors feel uncertain. But here’s the truth: The most effective investors—those who build lasting wealth and retire comfortably—focus their energy on what they can control, rather than worrying about what they can’t.

For this newsletter, we’re breaking down a simple but powerful framework:

 

(JP Morgan’s Guide to Retirement 2025)

Fully in Your Control: The Biggest Drivers of Retirement Success

These are the areas where your decisions have the biggest impact. By making intentional, disciplined choices, you set yourself up for financial security—regardless of what’s happening in the markets or economy.

1. Savings vs. Spending: Your Most Powerful Wealth-Building Tool

  • Increase savings rate: The more you save, the less you rely on market returns to reach your goal. A good target is 15-20% of income.
  • Automate contributions: Set up auto-transfers to your investment accounts so you save consistently, regardless of market conditions.
  • Reduce lifestyle creep: As your income grows, increase your savings rate before upgrading your lifestyle.

2. Asset Allocation: Aligning Investments With Your Time Horizon & Risk Tolerance

  • Diversify across asset classes: Stocks, bonds, cash, and alternatives each serve a purpose in your portfolio.
  • Adjust risk as you age: Younger investors can take more stock market risk, while retirees may need to shift toward income-generating investments.
  • Rebalance regularly: This ensures your portfolio stays aligned with your goals, rather than drifting based on market fluctuations.

3. Asset Location: Using Tax Efficiency to Your Advantage

  • Use all three types of accounts for tax diversification:
    • 401(k) / Traditional IRA: Pre-tax contributions lower taxable income now, but withdrawals are taxed in retirement.
    • Roth 401(k) / Roth IRA: Pay taxes upfront, but enjoy tax-free growth and withdrawals in retirement.
    • Taxable brokerage accounts: Long-term investments benefit from lower capital gains taxes.
  • Place investments strategically:
    • High-growth stocks and REITs in Roth IRAs (tax-free growth).
    • Bonds and income-producing assets in tax-deferred accounts (reducing taxable income).
    • Index funds in taxable accounts (lower capital gains tax impact).

Somewhat in Your Control: Making Smart Career & Longevity Decisions

While you don’t have complete control over these factors, there are still strategic choices you can make to improve your financial position.

1. Employment Earnings & Duration

  • Maximize employer benefits: Take full advantage of 401(k) matches, stock options, and profit-sharing plans.
  • Continue working part-time in retirement: Extending your career, even part-time, can reduce the number of years you rely on your portfolio.
  • Invest in skills & education: Increasing your earning power allows you to save more and improve financial security.

2. Longevity Planning: Preparing for a Longer Life

  • Plan for a longer retirement: Assume you’ll live to 90+ when estimating retirement needs.
  • Leverage insurance vehicles like annuities and long-term care: While often misunderstood, annuities and long-term care insurance can help mitigate the risk of outliving your money or facing overwhelming healthcare costs.
  • Optimize Social Security timing: Delaying benefits past full retirement age increases your monthly payout for life.

Out of Your Control: Don’t Waste Energy Here

  • Market returns: Nobody can predict short-term movements. Stick to your long-term plan. 
  • Tax policy: Laws will evolve, but smart planning minimizes their impact.

The Role of your Fiduciary Financial Planner: Offload These Responsibilities to Us

You don’t have to manage all of this on your own. Our job is to make sure you’re doing everything within your control to build long-term financial success—however you define it. From optimizing your savings and investments to managing risk and taxes, we keep you on track so you can focus on your life instead of stressing over every market move.

Success isn’t about predicting the future; it’s about making smart, consistent decisions over time. If you want to ensure you’re on the right path, let’s talk.