Is Your 401(k) Savings on Track?

401k Savings on Track?

Saving for retirement is a lifelong process, one that evolves as your career, income, and goals change. For many people, a 401(k) or similar employer‑sponsored plan forms the foundation of their long‑term financial security. Starting early is ideal, but what matters most is ensuring your strategy adapts as your life and circumstances shift.

Rather than focusing on a single “magic number,” it can be more helpful to use simple benchmarks tied to your current salary. These milestones offer a clear way to assess whether you’re progressing toward a comfortable retirement.

  • By age 35: Aim for roughly 1–2× your annual salary saved
  • By age 50: Target 3–6× your salary
  • By age 60: A range of 6–11× your salary may be appropriate

These ranges are intentionally broad. Career paths, financial responsibilities, and retirement visions vary widely. The goal is not perfection, but awareness and flexibility.

Below are key considerations at each stage of your career.

Early Career: Building the Foundation

In your early working years, competing financial priorities can make saving feel challenging. Still, two factors make early contributions especially powerful:

  • Time in the market: Even modest contributions have decades to grow.
  • Employer match: If your employer offers one, contribute at least enough to receive the full match. It’s essentially free money.

With a long investing time horizon ahead (20+ years), a higher‑equity allocation (often 80–100% equities, depending on comfort level) may be appropriate.

Mid Career: Increasing Momentum

As your income grows, so does the opportunity to maximize tax‑advantaged savings. In 2025, the 401(k) maximum employee contribution limit is $23,500. Reaching this limit can meaningfully accelerate your long‑term growth. Depending on your employer, additional savings strategies may also be available. Understanding those options or partnering with a fiduciary advisor who can help you evaluate and implement them, ensures your decisions align with your broader financial goals.

A higher equity allocation may still be suitable at this stage, however, be mindful of company stock exposure. Concentrated positions can increase risk, so it’s important to maintain a balanced, diversified portfolio.

Late Career: Age 50+

Beginning at age 50, you can make catch‑up contributions (an additional $7,500 in 2025), for a total of $31,000. These years often coincide with peak earning potential, making them a critical window for strengthening your retirement readiness.

As retirement approaches, many people begin to reduce equity exposure. However, because you may still have many years of investing ahead, even into retirement, it’s important to evaluate whether continued growth remains appropriate for your goals.

The “Super Catch-Up” Provision

As you move into your early 60s, an additional opportunity becomes available through the SECURE Act 2.0, it’s called the “super catch‑up” provision. Individuals ages 60–63 can contribute a higher catch‑up amount (up to $11,250 in 2025), compared to the standard $7,500 catch‑up available starting at age 50. This expanded window is designed to help late‑career earners accelerate savings during the years when income is often at its peak. While employer adoption may vary, understanding whether your plan offers this enhanced contribution can meaningfully influence your retirement strategy and long‑term planning decisions.

Important Changes for High-Income Wage Earners

High‑income earners face an important change beginning in 2026. Under the SECURE Act 2.0, employees whose prior‑year FICA wages exceed the IRS threshold (will be set at $150,000 in 2026, indexed for inflation) must make all age‑50+ catch‑up contributions on a Roth, or after‑tax, basis.

2026 threshold: $150,000, adjusted for inflation

  • Employees with more than $150,000 in FICA wages in 2025 must make all 2026 catch‑up contributions as Roth.
  • This applies to 401(k), 403(b), and governmental 457(b) plans and is determined strictly by FICA wages, not by the traditional Highly Compensated Employee (HCE) definition.

Pre‑tax catch‑up contributions are no longer permitted for this group. For those affected, this shift increases taxable income in high‑earning years but also allows future withdrawals to be tax‑free, making it essential to evaluate how Roth catch‑up dollars fit into your broader retirement and tax strategy.

Your Asset Allocation Matters

Regardless of age, your asset allocation is one of the most important drivers of long‑term outcomes. A diversified mix of investments helps manage volatility and keeps your portfolio aligned with your risk tolerance.

Over time, market movements can shift your allocation away from your intended targets. Rebalancing at least annually helps maintain discipline and keeps your strategy aligned with your goals.

If you have multiple 401(k)s from previous employers, be sure to review them as part of your overall allocation. Your risk profile should reflect your entire portfolio, not just your current plan.

The Bottom Line

A 401(k) is one of the most effective tools for building long‑term financial security. Your goals, income, and circumstances will evolve throughout your career, but consistent contributions and thoughtful adjustments along the way can help you stay on track for a confident and comfortable retirement.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Marriage & Money: Building a Strong Financial Partnership

Guide to marriage and finances
Crafting a Shared Financial Future

Marriage marks the beginning of a shared life, one built on partnership, trust, and the decisions you’ll make together in the years ahead. Conversations about where you’ll live, how you’ll build your family, and how you’ll shape your future are all part of that journey. Your financial life is no different. How you spend, save, and invest as a couple becomes a foundational part of your long‑term wellbeing.

Start With Shared Understanding

Open, judgment‑free conversations about money, values, and goals are essential. Some couples enter marriage with a clear plan already in place; others are navigating these discussions for the first time. Both paths are commonplace.

Each partner brings their own history regarding how they grew up around money, what they fear, and what they hope for. These conversations can surface long‑held beliefs and emotions, so taking them at a comfortable pace is important. The goal is to build trust and uncover habits or patterns that could unintentionally create tension later, such as credit use, bill‑paying habits, or impulse spending.

A fiduciary financial advisor can help facilitate these conversations, offering a neutral space to explore each partner’s priorities and create shared guidelines that feel fair and supportive.

Joint, Separate, or a Blend of Both?

One of the first practical decisions is how to structure your accounts. Will you have joint, separate, or a combination of account types? Many couples choose a blended approach: maintaining individual accounts while opening joint accounts for shared expenses and savings goals.

If you go this route, clarity is key. Discuss how much each partner will contribute to the joint account, what expenses will be paid from it, and what remains personal. Automating transfers and bill payments can simplify the process and help ensure both partners feel aligned.

If one spouse has stronger credit, adding the other as an authorized user on an existing card may help build credit history. Opening a joint credit card is also an option, though it will result in a hard inquiry for both partners.

Creating a Spending Plan with Intention

Creating a spending plan together is one of the most effective ways to build a strong financial partnership. A simple framework such as the 50/30/20 rule (50% needs, 30% wants, 20% savings) can be a helpful starting point. From there, you can adjust based on your shared goals.

If buying a home is a priority, you may choose to reduce discretionary spending to accelerate savings. If travel or starting a business is important, you can build those goals into your plan.

Transparency matters. Listing out each category and its cost helps ensure both partners understand the full picture. When preferences differ, say, one partner wants to pay off a modest car while the other dreams of leasing a luxury vehicle, these conversations help you find a balanced approach. Sometimes that means shifting certain expenses to personal accounts.

Automating payments reduces the administrative burden and ensures one partner doesn’t end up carrying the mental load of managing the household finances.

Most importantly, the creation of a spending plan should support your shared vision. Regular monthly or quarterly check‑ins can help you stay aligned, adjust as life changes, and keep your long‑term goals front and center.

Tax Planning for Two

Marriage can bring meaningful tax advantages. Couples with different income levels often benefit the most, as filing jointly may reduce the overall tax bracket. The standard deduction is also significantly higher for married couples.

Additional benefits include (Numbers are current as of the date of this article. The occasional increases are indexed with inflation):

  • Higher gift tax exclusion: Married couples can gift up to $38,000 ($19k each) per person annually without triggering gift tax rules.
  • Estate planning advantages: Couples can transfer up to $27.98 million without federal estate tax.
  • IRA opportunities: A non‑working spouse can contribute to a spousal IRA (up to $7,000 in 2025). And an additional $1,000 if age 50+.
  • Higher income limits for deducting IRA contributions when one or both spouses are covered by a workplace retirement plan.

Thoughtful tax planning early in your marriage can create long‑term advantages and strengthen your financial foundation.

Next Steps & Considerations
  • Take small, proactive steps to stay aligned
  • Keep Communication open and intentional
  • Build healthy habits that support your shared goals
  • Strengthen your partnership with informal, consistent check-ins
The Bottom Line

Combining your financial lives is one of the most meaningful steps you’ll take as a couple. It may take time to find the right rhythm, but approaching it with openness, clarity, and shared purpose will strengthen both your financial wellbeing and your partnership. With the right conversations and the right support, you can build a financial life that reflects your values and the future you’re creating together.

If you’d like to hear more of our perspective regarding this topic, you can listen to our conversation on the *Actual Experts podcast by clicking here.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Medicare Enrollment: Key Considerations Before & After Age 65

Women-Medicare Enrollment-Healthcare Planning
Reaching 65: A Milestone Worth Celebrating

Turning 65 is more than a birthday, it’s a gateway to new possibilities, including access to Medicare. Whether you’ve timed your retirement to coincide with Medicare eligibility or you’re already retired and ready to transition from private insurance, this guide is designed to help you navigate the process with clarity, confidence, and care.

At Martos Wealth, we believe informed decisions are empowered decisions. That’s why we’ve created this step-by-step overview to help you understand what Medicare covers, when to enroll, and how to avoid costly mistakes.

What Is Medicare and What Are You Enrolling In?

Medicare is a federal health insurance program with multiple components. Understanding each part is essential to building a coverage strategy that aligns with your health needs and financial goals. The main components of Medicare include:

  • Part A (Hospital Insurance): Medicare Part A covers services like hospital inpatient care, hospice care, home health care, and some types of skilled, inpatient nursing home care (excluding long-term care).
  • Part B (Medical Insurance): Medicare Part B covers preventive and medically necessary services that diagnose or treat medical conditions. Examples of these services include doctor’s visits, some outpatient services, some mental health services, and prescribed durable medical equipment.
  • Part C (Medicare Advantage): Medicare Advantage plans offer an alternative way of getting the same coverage found under Parts A and B (Original Medicare) plus additional coverage, including coverage for the 20% that Parts A and B don’t cover. Medicare Advantage Plans, which are often bundled with Part D, are provided by Medicare-approved private insurance companies. Individuals typically have dozens of Medicare Advantage Plans to choose from depending on the state they live in.
  • Medicare Supplement (“Medigap”): Medigap supplements Parts A & B (whereas a Medicare Advantage plan offers an alternative way to get Parts A & B) by paying for some of the costs for covered healthcare services and supplies, including copayments, coinsurance, and deductibles. Some Medigap policies also offer additional coverage on services not covered by Parts A & B.
  • Part D (Prescription Drug Coverage): Medicare Part D aids in covering the cost of prescription medications. This coverage is optional (penalties will apply if you delay coverage) but is available to anyone with Original Medicare (Parts A & B). Most Medicare Advantage Plans bundle in prescription drug coverage.
When Should You Enroll?

Timing is everything. Missing key enrollment windows can result in penalties or coverage delays.

Initial Enrollment Period (IEP)

  • Begins 3 months before your 65th birthday
  • Ends 3 months after your birthday month
  • Total window: 7 months
  • Coverage typically begins the first day of your birthday month

Example: If your birthday is in August, your IEP runs from May through November.

Signing up for Medicare during the Initial Enrollment Period is not optional for most people. If you miss the Initial Enrollment Period, you might have to wait to sign up until the next General Enrollment Period, which may result in a delay in coverage and a lifetime late enrollment penalty. The longer you wait to sign up, the higher the penalty.

General Enrollment Period (GEP)
  • Occurs annually from January 1 to March 31
  • Coverage begins the first day of the month after you sign up
  • Late enrollment may trigger lifetime penalties

Think of the GEP as a yearly catch-up period for Original Medicare if you missed your first opportunity to enroll and didn’t have a valid reason (like employer coverage) to delay. Sign up in January, and your coverage starts in February; sign up in March, and coverage starts in April, but be aware of potential penalties for waiting.

Open Enrollment Period (OEP)
    • Runs from October 15 to December 7
    • Allows changes to Medicare Advantage (Part C) and Part D plans
Special Enrollment Periods (SEPs)
    • Triggered by life events such as:
      • Moving outside your plan’s service area
      • Losing employer coverage
      • Employer plan changes
How to Enroll in Medicare

Now that we’ve covered what Parts of Medicare you can enroll in and when you can enroll, let’s review how to sign up for Medicare. Thankfully, the process for signing up for Original Medicare is relatively simple. If you’re already receiving Social Security benefits, you may be auto-enrolled in Parts A and B. If not, here’s how to get started:

  • Apply Online: The easiest (and often fastest) way to sign up for Medicare is to sign up online on the Social Security website. You’ll need to create a secure Social Security account to get started. Note: If you’re already collecting Social Security, you’ll automatically be enrolled in Parts A and B.
  • Phone Call: You can call Social Security at 1-800-772-1213 or 1-800-325-0778 if you’re using a teletypewriter. Individuals can also contact a local Social Security office in their area and reach out for assistance.
  • In Person: Contact your local Social Security office
  • Railroad Retirement Board: It’s worth noting that if you or your spouse worked for a railroad, you have the option of reaching out to the Railroad Retirement Board. The Railroad Retirement Board can be reached at 1-877-772-5772.

Enrolling in a Medigap, Medicare Advantage Plan, or a standalone Part D plan requires more effort. Because you likely have many plans available as options, this is a good opportunity to review your medical needs, research various plan options, and review potential costs.

What Costs Should You Expect?

Key 2025 Part A Costs:

  • Premium: $0 per month (most people).
  • Reduced Premium: $285/month (30–39 work quarters).
  • Full Premium: $518/month (<30 work quarters).
  • Inpatient Deductible: $1,676 per benefit period.
  • Daily Coinsurance: $419/day for days 61–90; $838/day for lifetime reserve days.
  • Skilled Nursing Facility Coinsurance: $209.50/day for days 21–100. 

Key 2025 Part B Costs:

  • Standard Premium: $185.00 per month.
  • Annual Deductible: $257.00.
  • High-Income Surcharge (IRMAA): Applies to individuals with 2023 modified adjusted gross income (MAGI) over $106,000 or couples over $212,000. IRMAA is calculated using a 2-year lookback on MAGI.
  • Total Range: Depending on income, premiums can range from the $185 base up to $628.90 per month for the highest earners. 

For Part B coverage, the standard premium for most individuals is $185 for 2025. However, you may pay a higher premium depending on your income. Additionally, you may also pay 20% of the Medicare-Approved Amount for most outpatient therapy, durable medical equipment, and doctor services (including ones rendered as a hospital inpatient), unless you have a Medigap or Medicare Advantage plan, which will provide a cap on total medical costs.

Monthly premiums vary by plan for Medigap, Medicare Advantage, and Part D. You can compare plan costs here.

Healthcare Planning with Martos Wealth

Medicare is a foundational piece of your retirement strategy. At Martos Wealth, we offer annual personalized Healthcare Planning to help you:

  • Understand your coverage options
  • Align your healthcare decisions with your financial plan
  • Avoid gaps, penalties, and unexpected costs
In Summary

At Martos Wealth, Medicare planning isn’t a one-time conversation, it’s an ongoing commitment. Each year, we proactively guide our clients through Medicare decisions, from initial enrollment to annual reviews and plan adjustments. Whether you’re approaching age 65 or already enrolled, we ensure your coverage continues to align with your health needs, financial goals, and evolving life circumstances.

We specialize in guiding households through transitions with clarity, warmth, and fiduciary care. If you’re turning 65 soon, let’s talk about how to make this next chapter one of empowerment and ease.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Why Health Savings Accounts Are a Powerful Tool for Tax-Efficient Wealth Building

health savings accounts-tax strategy-triple tax free

At Martos Wealth, we believe that every financial decision should reflect your values, support your long-term goals, and create space for future possibilities. One strategy that often goes overlooked and offers remarkable benefits is the Health Savings Account (HSA). For clients who are generally healthy and enrolled in a high-deductible health plan, an HSA can be a quiet powerhouse in your financial toolkit.

What Is an HSA and Why Does It Matter?

An HSA is a tax-advantaged account designed to help you save for qualified medical expenses. But it’s more than just a savings account it’s a triple-tax benefit vehicle that can support both your health and your wealth:

  • Contributions are tax-deductible.
  • Growth is tax-free.
  • Withdrawals for qualified medical expenses are tax-free.

This trifecta makes HSAs one of the most efficient ways to build long-term financial resilience, especially when paired with intentional planning.

Strategic Use: Let It Grow

If your healthcare needs are minimal, consider paying out-of-pocket for smaller expenses and allowing your HSA funds to grow untouched. This approach not only preserves the account’s tax-free growth potential but also lowers your taxable income today. Over time, your HSA can become a dedicated reserve for future medical costs or even a supplemental retirement resource.

Investment Potential Without Distribution Requirements

Unlike traditional retirement accounts, HSAs have no required minimum distributions. The funds remain yours, regardless of employment changes or health plan transitions. And if you choose to invest your HSA contributions, you can benefit from compound growth without triggering taxes on interest or gains. Just be sure to select a provider with low fees and strong investment options to maximize your return.

Flexibility After Age 65

Once you turn 65, your HSA becomes even more versatile. You can withdraw funds for any purpose not just medical expenses. While non-medical withdrawals are taxed as income, qualified medical expenses remain tax-free. This includes long-term care premiums, prescriptions, and other common retirement healthcare costs.

You can also reimburse yourself for past medical expenses incurred after your HSA was established even if you didn’t use the account at the time. For example, if you had surgery at age 60 and paid out-of-pocket, you can reimburse yourself after 65 using your HSA, provided you kept the documentation. This strategy offers flexibility and control over how and when you access your funds.

In Summary

HSAs offer more than just tax savings they offer choice, control, and long-term value. Whether you’re planning for future healthcare needs or looking to optimize your retirement strategy, an HSA can be a meaningful part of your financial plan.

At Martos Wealth, we’re here to help you evaluate whether an HSA aligns with your goals, values, and lifestyle. If you’d like to explore how this strategy fits into your broader financial picture, we’d be honored to guide you.

Let’s build clarity, confidence, and family wealth together.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Managing Emotions Is Part of Managing Wealth

Long-term-investment-strategy-managing-emotional-investing-fiduciary-financial-advisor

In March 2020, the stock market dropped more than 10% in a single day. Many investors panicked and sold. But those who stayed the course or even continued investing were rewarded. In just 354 days, the S&P 500 doubled in value, marking one of the fastest recoveries in history.

This moment underscores a truth we see often as fiduciary financial advisors: emotional investing can be costly. While we can’t eliminate emotion from decision-making, we can learn to manage it. And when it comes to building long-term wealth, that emotional discipline is just as important as the investments themselves.

The Emotional Rollercoaster of Modern Investing

Today’s investing landscape is more accessible and more emotionally charged than ever. With trading apps and social media, investing has become a 24/7 experience. From meme stocks to cryptocurrency surges, it’s easy to get swept up in the hype or fear.

But emotional investing isn’t just a risk during downturns. In bull markets, fear of missing out (FOMO) can lead to overexposure. In volatile markets, fear of loss can lead to panic selling. And in uncertain times like those shaped by inflation and rising interest rates emotions can cloud even the most rational plans.

Why Timing the Market Rarely Works

Trying to time the market is like trying to predict lightning. Research1 shows that from 1994 to 2023, the S&P 500 returned 8.00% annually. But if you missed just the 10 best days, your return dropped to 5.26%.

Miss the 30 best days? You’re down to 1.83%.

Miss the 50 best days? You’re in negative territory.

The lesson is clear: Staying invested is often more powerful than trying to get the timing right.

Investing Should Be Personal—Not Emotional

At Martos Wealth, we believe investing should be grounded in your values, your goals, and your timeline not market noise. That’s why we help clients build personalized, risk-aware investment strategies that are designed to weather uncertainty.

Here’s how we help you stay focused:

  • Clarify your goals: Your investment strategy should reflect your unique financial journey, not someone else’s.
  • Understand your risk tolerance and your portfolio’s risk capacity: Knowing how much volatility you and your portfolio can handle, helps prevent emotional decisions. Often times, these results reflect ideas and strategies that need to be merged.
  • Diversify wisely: A well-allocated portfolio balances growth and stability across market cycles.
  • Invest consistently: Strategies like dollar-cost averaging help reduce the impact of market timing and emotional swings.
A Long-Term Plan Built for You

A strong investment strategy isn’t just about returns, it’s about resilience. We help clients build portfolios that are designed to last through full market cycles (typically 10+ years), with the flexibility to adapt as life and markets evolve.

Whether it’s rebalancing allocations, including sustainable investments, or adjusting for new goals, we take a proactive, fiduciary approach to managing your wealth.

The Martos Wealth Perspective

Emotions are human. But when it comes to investing, they don’t have to be in control. With a thoughtful plan, a clear purpose, and a trusted advisor by your side, you can navigate uncertainty with confidence.

Let’s build a strategy that keeps you grounded—no matter what the market does next.

  1. Wells Fargo, The Perils of Trying to Time Markets, January 2024.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Retirement Spending Strategies: Is the 4% Rule Still Relevant-or Is a U-Shaped Curve More Realistic?

Four percent rule retirement spending

You’ve spent decades building a strong financial foundation. Now, as you transition into retirement, the question becomes: How do you turn your wealth into sustainable income that supports your lifestyle, values, and legacy goals?

At Martos Wealth, we believe retirement income planning should be as personalized as your investment strategy. While every client’s financial picture is unique, two common frameworks often guide retirement withdrawal strategies: the 4% Rule and the U-Shaped Spending Curve. Understanding the strengths and limitations of each can help you make informed, values-aligned decisions.

The 4% Rule: A Traditional Approach to Retirement Withdrawals

The 4% Rule is a long-standing guideline suggesting that retirees can withdraw 4% of their portfolio in the first year of retirement, adjusting annually for inflation. This strategy assumes:

  • A 60/40 portfolio allocation (60% equities, 40% fixed income), rebalanced annually
  • Stable or declining income needs over time
  • Historical market returns will repeat in the future

Originally developed through back-testing 30-year retirement periods, the 4% Rule aims to preserve principal while providing consistent income. However, it faces two key challenges:

  1. Sustained high inflation, which can erode purchasing power
  2. Prolonged low-return environments, which may strain portfolio longevity

While some retirees do experience stable or declining expenses, unexpected costs—such as healthcare needs or family support—can disrupt even the most conservative plans.

The U-Shaped Curve: A More Dynamic View of Retirement Spending

Emerging research and real-world behavior suggest that retirement spending often follows a U-shaped pattern:

  • Early retirement: Higher spending on travel, hobbies, and lifestyle goals
  • Mid-retirement: Spending declines as activity levels taper
  • Late retirement: Expenses rise again, primarily due to healthcare and long-term care

This method calls for a more adaptive investment strategy:

  • Higher equity exposure early in retirement to support active years
  • A shift to balanced allocations in mid-retirement
  • Potentially re-risking later in life to offset rising costs, depending on market conditions and personal goals

According to Fidelity, a 65-year-old couple retiring today may need over $300,000 for healthcare expenses alone—excluding long-term care, which can exceed $10,000 per month.

Why a Personalized Retirement Income Plan Matters

Whether you lean toward the 4% Rule or embrace the U-shaped curve, the key takeaway is this: retirement income planning is not static. It requires ongoing evaluation of:

  • Market conditions and inflation trends
  • Healthcare and long-term care planning
  • Estate and legacy goals
  • Tax-efficient withdrawal strategies

At Martos Wealth, we take a fiduciary, values-based approach to retirement planning. We help clients align their investment strategies with their life goals, risk tolerance, and evolving needs—so they can retire with confidence and clarity. We prioritize healthcare planning for our clients to ensure they feel confident about their financial plan, well before any additional healthcare considerations are needed.

Let’s build a retirement income strategy that reflects your values and adapts to life’s changes. Reach out to explore how we can help you navigate retirement with purpose and peace of mind.

  1. “How Has The 4% Rule Held Up Since the Tech Bubble And The 2008 Financial Crisis?” July 29, 2015, Nerd’s Eye View, Stephen Kitces

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Estate Planning: Critical Steps to Secure Your Legacy

Grandmother spending quality time with grandkids

Estate planning isn’t just about protecting your assets—it’s about protecting yourself and the people you care about. A thoughtful plan, rooted in values-based planning, can ensure that your beliefs about religion, medical care, and preferred treatments are respected if you cannot speak for yourself. For women navigating wealth management with a focus on empowering their families and values, working with a female financial planner who understands your unique priorities can make all the difference. Estate planning also eases the burden on those who must continue on without your input, while addressing critical issues like legal guardianship for minor children. Importantly, it’s a step you should take now—no matter where you are in life.

Planning for Care Ensures That You Decide What Will Happen

Having a plan in place to carry out your wishes if the unexpected happens—your minor children are left on their own, or you become incapacitated—is essential. Otherwise, a court will decide who cares for your children and how your own care is managed, leaving you without a voice in what happens to your assets.

So, how can you prepare? The first and most important step is to set up the essential documents that will ensure your plan can be legally enforced.

The essential documents are:

  • A will that appoints a guardian for minor children
  • A healthcare proxy that specifies your wishes and appoints someone to make healthcare decisions on your behalf
  • A durable power of attorney that gives someone you elect the legal right to handle your finances and pay for your care

1. Creating a Will

A will is the most common estate planning instrument. While it is the only legal way to appoint a guardian for your minor children, a will can also be used for other purposes. It offers significant control over how your assets will be distributed and who your beneficiaries will be. However, wills are subject to probate, which can be lengthy, expensive, and public.

It’s almost always advisable to consult an attorney about creating a will, particularly if it names a guardian for your children. A specialized estate planning attorney can help ensure your wishes are clearly outlined, especially in cases where care needs are complex. Additionally, a trusted financial advisor can often recommend an attorney who shares your values-based approach to wealth management.

2. Determining Your Health Care Proxy

A health care proxy designates someone to make health care decisions on your behalf and outlines your care preferences. You can be as specific as you’d like, from treatment types to the circumstances under which you’d stop receiving care. Depending on your state, you may need a living will in addition to the proxy, collectively called an “advance directive.”

Some states provide combined forms online, while others may require consultation with a lawyer. Start by asking your doctor or a trusted financial planner for guidance on what is required in your state to ensure your health care preferences align with your broader estate plan.

3. Creating a Durable Power of Attorney

A durable power of attorney grants someone the authority to manage your financial matters if you become incapacitated. Unlike a regular power of attorney, this document remains valid during incapacity, empowering your designated person to pay bills, manage assets, and ensure your care is funded.

It’s crucial to work with a lawyer to draft this document and selecting someone you trust to act as your agent is equally important. Your values-based planning should guide this decision, ensuring your finances reflect your personal and social priorities.

The Takeaway

You’ve worked hard to build a life of meaning and purpose. To ensure your values and wishes are honored, estate planning is essential. Partnering with a female financial planner who understands wealth management for women can help you navigate these decisions with confidence. Having the basic legal instruments in place, and updating them as your circumstances evolve, is the cornerstone of an estate plan that protects what matters most to you.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Steps to Building and Sustaining Long-Term Wealth

Two blue wooded beach chairs facing the open ocean with calm seas.

For most people, steady, ongoing work is the foundation of their wealth. Career success and a good salary, or building and growing your own business, are the means to a lifestyle you enjoy now and the promise of a stable financial future.

For others, an inheritance, a windfall from an investment or employee stock, selling a business, or even winning the lottery is the source of wealth.

But no matter how high your salary, successful your business is, or big the windfall – is it enough to create lasting wealth? How about generational wealth?

If your goal is to have enough to live the life you want and pass down wealth to provide ongoing security for your family, what do you need to think about besides money?

Black swan events happen, markets go through extended downturns, and unexpected life or job issues can derail plans.

That’s where financial planning comes in. We break down some of the things you need to think about on the journey to lasting wealth.

Start by Creating Your Own Definition of Wealth

Rather than focusing on a number, try defining wealth as a lifestyle. This gets you closer to understanding what you need and when you need it. Once you start to understand what your goals are, you can build a financial plan that balances your lifestyle now with the goals you want to achieve in the future. For older generations, working and saving until retirement at age 65 was the norm. Younger generations may have different goals or may have multiple goals and want to achieve them sooner.

  • Early retirement
  • One spouse stops working
  • Start a business
  • Buy a second home
  • Pay off all debt and be able to self-fund kids’ college

Make Informed Choices

The word that resonates most strongly with investors today is flexibility. Whatever the individual definition of wealth is, it often starts with a desire to have more control over time and work.

Understanding the trade-offs that are involved can help you make decisions that are right for you.

For example, if retiring early is the goal, a common approach is to sacrifice lifestyle and time in the short term in favor of reducing expenses, increasing saving, and maximizing income through work. There’s even a name for this – it’s called the F.I.R.E. movement (Financial Independence Retire Early). However, there’s a limit to how long you can make sacrifices and continue to feel satisfied by your life in the moment. Instead, there are several “levers” you can pull to create a better balance:

  • Extend your retirement age
  • Re-evaluate risk in your investments
  • Reduce high-interest debt and shift to lower-interest debt
  • Optimize tax efficiency

These are just a few examples, there is no one right answer. Being thoughtful about your goals, then exploring different scenarios, and considering potential benefits from the financial planning toolkit can put you on a path to maximize your own financial independence and flexibility.

Expand Your Options

The first step to lasting wealth is to invest as early and as consistently as possible. Ensuring that you are maxing out tax-advantaged retirement savings, and taking advantage of health savings accounts and 529 plans can put money to work and reduce your tax burden.

Expanding beyond the options available in retirement plans by putting after-tax dollars into a taxable account can help you diversify your portfolio. This allows you to refine your risk profile and potentially boost return.

Control Your Risk

Ensuring that you have lasting wealth means protecting it. A review of your insurance coverage that considers potential liability is critical. Depending on your lifestyle, you may want to explore an umbrella policy that provides additional coverage above the limits on your existing insurance policies.

Start Estate Planning Now

Ensuring that your wealth can provide for your family for decades to come is something you should do proactively. A good estate plan is both thoughtful and efficient. It ensures that your wishes are carried out, and it preserves as much of your estate as possible for your dependents. For many families, a trust can simplify the transfer of assets, keep your estate private, and can be customized in ways a will cannot. You also don’t have to relinquish control of your assets.

The Bottom Line

Achieving lasting wealth requires more than just asset growth. Understanding your goals, the trade-offs in terms of choices, and how you can incorporate financial planning tools into your situation can help you protect and grow your wealth for generations to come.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Secure Your Financial Future: Achieve Confidence and Success

Two happy women on a laptop zooming and laughing.

Northwestern Mutual’s annual Planning and Progress Study is out, and the results this year are very interesting. The study examines U.S. adults by generation to understand attitudes and behaviors toward money, financial decision-making, and financial security.

Given the volatility of the last year, the results reflect more uncertainty. But they also indicate that while each generation has different goals, needs, and attitudes towards money, getting financial advice from a trusted resource is a constant.
The study found that two-thirds of Americans believe that their financial planning needs improvement. But while YouTube, TikTok, and Instagram may be the go-to for DIY needs or setting up new tech, when it comes to money, people prefer professional advice from a financial advisor.

The One Thing Every Generation Worries About

Across all generations, being financially prepared for retirement is the biggest worry. Of Gen Z, Millennials, and still-working Boomers, more than 50% expect to be prepared for retirement. Gen X is the outlier – only 45% of Gen Xers are confident they’ll be ready for retirement.

Younger generations also expect more of the burden to fall on them. Gen Z and Millennials aren’t counting on Social Security. If it’s around for them (42% don’t think it will be), they are only counting on it for 15-20% of retirement income.

Younger Generations Expect More from Financial Planners

All generations value financial advisors for their professional expertise and for helping them think long-term and stay on track for goals. But Millennials and Gen Z want a more robust relationship with an advisor. For them, aligning finances with values, saving time, and keeping them up-to-date on changes to financial legislation or changes that will impact them are important.

How Can You Build a Confident Financial Future?

A key finding of the study is that people who work with a financial advisor are much more confident about their financial journey, from retirement to handling unexpected expenses to achieving financial security.

But before you can work with a financial advisor, you need to find someone you feel confident in. In short, someone you vibe with.

How do you do that?

It comes down to selecting an advisor that understands your priorities. And while these are specific and different for everyone, the stage of life you are at creates a set of challenges that everyone may face at some point.

These may include:

  • Cash flow planning
  • Buying an investment property
  • Career advice and planning, from getting the most out of your benefits to equity compensation
  • Retirement savings
  • Minimizing taxes
  • Ensuring you have adequate insurance, including life and liability. Depending on your profession, you may need professional disability insurance
  • Saving for kids’ education

For many people, the overall goal is to have confidence and flexibility. An understanding of the choices available to you and what the trade-offs are is a more modern way to think about financial planning. It goes beyond just investments.

The modern financial advisor is more of an architect who brings together all the other professionals in your life so you can see the entire picture and then make decisions. And as you move through your journey and things change, you can adapt and continue to thrive.

Technology Is a Key Attribute

A good relationship relies on strong communication, and today’s investors want their advisor to be tech-forward and accessible. If you’re considering working with an advisor, ensuring that they are available to you in all the ways you prefer to communicate can keep you both informed and build trust.

The Bottom Line

Working with a financial advisor can help you build the future you want, while keeping you calm and peaceful in the present. You want to be able to enjoy your life now and have options for the future. Finding the right advisor for your lifestage, with the expertise you require, is easier now than ever.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.

Invest with Your Values: The Power of ESG Investing

A wooden boat on Lake Prags with the mountains nearby.

ESG is one of the fastest growing segments of investing, across the spectrum of financial products from ETFs to specialized, custom strategies. A recent survey from the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Wealth Management reports that 77% of global investors are interested in sustainable investing, and 54% anticipate increasing their sustainable investments in the next year.1

This growth makes them much easier to deploy in investment portfolios, and it also ensures that the individual values of the investor can be expressed in a way that can potentially help them meet their financial goals.

Along the way, these strategies are active participants in creating change.

Breaking Down the Acronym

There are three components to ESG. The first two are usually most important to an individual investor, as they connect most directly to values. For institutional investors, the third one plays a role, under the theory that these principles can help to make the company better run and more responsive to shareholders – which can translate into better financial performance.

Environmental

Is the company an active participant in helping to support sustainability? Companies that support the move away from fossil fuels or participate in other key functions would of course be examples. But for companies that are not actively promoting sustainability, the question is more about the impact of the business on the environment. This can include everything from carbon footprint, toxic chemicals involved in manufacturing processes, and even how the supply chain is managed.

Social

This used to be more about how workers are treated but has evolved into an understanding of how the company is structured and what the social impact is on the broader community. Companies that embrace diversity and work towards equality in all spheres – even to becoming advocates for social good beyond just their own hiring practices – are becoming the standard. Where companies used to avoid taking public stances on anything likely to be controversial, we’ve seen over the last year that companies who take a stand have been rewarded, even if those gains are so far just in reputation.

Governance

This is about the company’s board and management. It includes everything from executive pay to diversity in leadership and how responsive a company is to its shareholders. This is where transparency, privacy issues, data security, etc. come into play.

Investing in Growth

The $1.2 trillion Bipartisan Infrastructure Law of 2021 is funding transportation, energy and climate infrastructure projects. This is intended to help meet 2030 climate goals – but will also rebuild key pieces of the infrastructure while likely significantly adding to the economy.

Incorporating ESG into Your Daily Life

Incorporating your values in investing into your daily life is easier now than it has ever been. One of the measurements for a company’s commitment to ESG is whether the company is a Certified B Corporation. These corporations meet the highest standards of verified social and environmental performance, public transparency and legal accountability. They work diligently toward maintaining these standards to balance profit and purpose.

But you’re not limited to just investing in Certified B-Corps – you can use your power as a consumer to shift your buying patterns to make a difference. On your next trip to the supermarket – take a look at the packaging on the products you buy. Many of them will display the B-Corp. symbol. And for those who don’t, there’s probably an alternative that does.

The Bottom Line

ESG has moved well into the mainstream and offers products and strategies that work for every investor’s values while also working towards their goals. No matter what stage you’re at in your financial journey, incorporating ESG investing can be both a long-term strategy and provide opportunity as we enter a historic phase of rebuilding both the economy and our country. On the less-heroic front, being selective and intentional about the products you buy can make a big difference.

  1. Sustainable Signals: Individual Investors’ Interests and Priorities. Morgan Stanley Institute for Sustainable Investing. 2024.

Disclaimer: This article is provided for educational, general information, and illustration purposes only and is not exhaustive. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but are intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Martos Wealth Management, LLC, and all rights are reserved.