Week in Review June 23

Congress Targets Tax Reform Before 2026 Sunset

 

Fact: The 2017 Tax Cuts and Jobs Act will expire at the end of 2025, and lawmakers are now working to shape a new tax bill.
Source: WSJ

Why it matters: If you’ve been enjoying the lower tax brackets these past few years, understand that those benefits may disappear after next year. Without new legislation, income tax rates are scheduled to rise in 2026. For many of you in retirement or approaching it, this is a key window of opportunity. You can explore strategies like Roth conversions, making strategic IRA withdrawals, or even realizing capital gains at today’s lower rates. If we’re proactive now, we can help reduce your future tax burden and make sure more of your retirement income stays in your pocket—not Uncle Sam’s.

 

Fed Likely to Hold Interest Rates Steady

 

Fact: The Federal Reserve is expected to keep interest rates unchanged at its June meeting, with inflation still above target.
Source: CNBC

Why it matters: With rates likely to remain higher for longer, this creates both opportunities and risks for retirees. On the opportunity side, we can lock in attractive yields on CDs, Treasuries, and MYGAs — earning income safely. But locking in for too long could be a risk if rates start falling next year. This is why I often recommend building a bond or income ladder: a mix of maturities gives you flexibility, so you can take advantage of changing interest rates. The goal is to generate steady, predictable income while keeping your options open.

 

 

Corporate Defaults Hit Three-Year High

 

U.S. corporate defaults have reached their highest level since 2022, driven by rising interest costs and tighter lending conditions.
Source: Reuters

Why it matters: It’s tempting to chase yield, especially when you’re trying to boost retirement income. But many lower-rated bonds and high-yield funds are seeing increasing defaults right now. If your portfolio is leaning too heavily into riskier debt, your retirement income could be at risk. I encourage a “sleep well at night” approach: prioritize credit quality, diversify your income sources, and avoid putting too many eggs in any one risky basket. Remember — it’s not what you make, it’s what you keep that counts in retirement.

 

 

Global Shipping Costs Surge 30%

 

Fact: Container shipping rates have jumped more than 30% in recent weeks due to global trade disruptions and Red Sea tensions.
Source: FT

Why it matters: You may have noticed certain goods getting more expensive again — this is part of why. Higher shipping costs often lead to higher prices on everything from household goods to groceries. For retirees, this means your spending plan must remain flexible. If inflation sticks around longer, it can eat away at your purchasing power. Together, we’ll want to review your spending assumptions and make sure your income plan is built to keep pace with real-world costs — not just historical averages.

 

 

Nasdaq Surges Amid AI Boom

 

Fact: AI-related stocks have driven a major Nasdaq rally this year, concentrating gains in a small group of companies.
Source: Reuters

Why it matters: It’s exciting to see these big headlines — and tempting to want to jump all in. But remember: markets can become very concentrated, and tech-driven rallies often carry extra risk. If too much of your portfolio is riding on a handful of AI companies, your retirement nest egg could experience painful volatility. Our goal is to build you a durable, balanced portfolio — one that can weather tech booms and busts alike, providing consistent income no matter what Wall Street is chasing this month.

 

Average U.S. Retirement Age Hits 66

 

Fact: The average retirement age has now reached 66, up from 65 a decade ago.
Source: Gallup

Why it matters: More people are working longer — by choice or necessity. If you’re still working, this gives you an opportunity to strengthen your financial position: more years of saving, fewer years drawing down your portfolio, and potentially higher Social Security benefits. But it also means your retirement plan needs to be flexible. Whether you choose to retire fully, phase out, or stay engaged longer, we can adjust your income and investment strategy accordingly. The key is to have options — and control — over your timeline.

 

 

U.S. Credit Card Delinquencies Reach Post-Pandemic High

 

Fact: Credit card delinquencies are now at their highest levels since the pandemic, signaling rising consumer financial stress.
Source: NY Fed

Why it matters: If you have adult children or grandchildren, you may be seeing signs of financial stress in your own family. It’s natural to want to help — but be careful. Providing too much financial support can jeopardize your own retirement security. That’s why we often recommend establishing clear boundaries and protecting your income first. We can also help structure any family assistance so that it fits within your plan — without putting your future at risk.

 

Medicare Part D Drug Costs Now Capped

 

Fact: The Inflation Reduction Act caps annual out-of-pocket Medicare Part D drug costs at $2,000 starting in 2025.
Source: NBC Washington

Why it matters: This is great news for those of you managing significant prescription costs. Having a hard cap on drug expenses makes budgeting much more predictable. But healthcare inflation overall remains a wildcard in retirement planning. We’ll want to review your overall healthcare strategy — including Medigap or Medicare Advantage coverage — and ensure your income plan accounts for rising healthcare needs as you age.

 

 

401(k) Account Balances Rising Slowly

 

Fact: Average 401(k) balances rose modestly last quarter but remain below inflation-adjusted 2021 peaks.
Source: Fidelity

Why it matters: Many of you have worked hard to build substantial 401(k) balances — but remember, accumulating savings is only step one. The real key in retirement is distribution strategy: how and when you take income to minimize taxes and reduce sequence-of-returns risk. Market volatility can harm those drawing income from investments at the wrong time. We can help implement a smart withdrawal plan that adapts to market conditions and protects your income over time.

 

U.S. Job Openings Continue to Fall

 

Fact: U.S. job openings declined again in April, signaling a cooling but resilient labor market.
Source: Yahoo Finance

Why it matters: If you’re thinking about doing some part-time work in retirement — for income or for personal fulfillment — now is a good time to explore options. The labor market is cooling slightly, meaning some opportunities may become harder to find. Having a plan for phased retirement, part-time work, or encore careers can provide financial flexibility and personal enrichment. We can help you think through how work fits into your broader retirement strategy.

 

 

👉 Final Takeaways

Each week, the financial landscape shifts in ways that can affect your retirement — sometimes subtly, sometimes dramatically.

 

Here are this week’s key lessons:

  • Tax planning is urgent: With potential tax increases ahead, proactive moves this year and next could lock in lasting savings.
  • Rising interest rates = income opportunities — with caution: Higher yields are attractive, but be mindful of duration risk and credit quality.
  • Market risk is concentrated: The AI boom has created opportunity and danger. Stay diversified, not overexposed.
  • Cost of living pressures remain: From shipping to healthcare to inflation surprises, your plan needs to be built for flexibility and resilience.
  • Distribution strategy is critical: It’s not just what you’ve saved, but how you draw income — and when — that determines your retirement success.
  • Family financial dynamics matter: Supporting children or grandchildren must be done carefully, with your own plan protected first.
  • Healthcare planning needs regular attention: New Medicare benefits are helpful, but healthcare inflation is still one of your biggest risks.
  • Retirement is more flexible than ever: Whether working longer or phasing into retirement, the best outcomes come from planning ahead — not reacting later.

Bottom line: The choices you make today — about taxes, income, portfolio risk, healthcare, and family — will shape the security of your retirement for years to come.

If you’d like to review your current plan, explore new opportunities, or simply make sure you’re staying on track amid this fast-changing environment, we’re here to help.

Reach out today — the best retirement plans are the ones that evolve with the times.