Windsor Wealth Management LLC

Investment service in Topsfield, Massachusetts

Financial Planning

5 Financial Tasks to Tackle Before Fall

by Leave a Comment

As summer winds down, it’s a good time to take a few minutes to review your finances before the busy fall season begins.

Here are five areas worth checking now.

Image Source: ChatGPT

#1—Plan for Age 18

If your child or grandchild is turning 18 or heading off to college, make sure they have the legal documents that allow you to help them if there’s a medical emergency.

Overall, it’s a good idea to have:

  • HIPAA Authorization
  • Medical Power of Attorney
  • Living Will
  • Durable Power of Attorney

Related Post: Turning Age 18 Legalities & Grandchild College Planning

Also, if your student is living on or off campus, consider whether renter’s insurance makes sense. Replacing specialized computer equipment can be costly. The same goes for e-bikes, which many students use to get around campus and can cost thousands to replace.

Note: While your homeowners policy may cover some losses in a dorm, e-bikes and high-value tech often require special endorsements or separate policies.

Finally, if you’re using a 529 plan, coordinate your withdrawals carefully. Using the same education expenses for both a 529 withdrawal and an education tax credit can lead to unexpected tax consequences.

Fidelity does a nice job explaining it here: How to spend from a 529 college plan1

#2—Get Ready for Open Enrollment (Medicare & Employer)

Open enrollment season is just around the corner.

Medicare’s Annual Enrollment Period runs from October 15—December 7, and many employers hold open enrollment in the fall.

Before finalizing your benefits, consider the following:

Health Insurance Coverage: Compare plan costs, deductibles, provider networks and out-of-pocket maximums to determine whether your current plan is still the best fit.

Prescription Drug Coverage: Make sure your medications are still covered and compare costs if your prescriptions or health needs have changed.

Health Savings Account (HSA) Contributions: If you’re eligible for an HSA, review your contribution amount during open enrollment. HSAs offer triple tax advantages, including tax-deductible contributions, tax-deferred growth and tax-free withdrawals for qualified medical expenses.

Flexible Spending Accounts (FSAs): Estimate next year’s eligible healthcare or dependent care expenses so you can elect an appropriate contribution amount.

Life and Disability Insurance: Review your coverage after major life events (e.g., birth, divorce or marriage). If your employer allows you to increase coverage without a medical exam during open enrollment, consider whether additional protection makes sense before your health changes.

Retirement Plan Contributions: Increase your contribution rate if you’re receiving a raise or bonus. Also, make sure you’re contributing enough to receive your full employer match.

Are you turning age 65 soon?

Your Medicare initial enrollment timeline is different from the annual enrollment period.

Most people can enroll in Medicare beginning three months before the month you turn 65 and continuing for three months afterward.

However, if you’re still covered by an employer health plan, different rules may apply.

Give us a call before you enroll, so we can help you sort through your options.

RESOURCE: Here’s our detailed Medicare guide describing initial enrollment timelines, premiums and deductibles for 2026.

#3—Review Your Taxes and Retirement Savings

Now is a great time to see whether you’re on track.

Review your paycheck withholdings to help avoid an unexpected tax bill or an unnecessarily large refund next spring. Also, check your retirement plan contributions to see if you’re on pace to maximize your 401(k), 403(b), etc. before year-end.

Keep in mind, if you’re age 50 or older and make catch-up contributions, be aware that recent law changes may require higher earners to make catch-up contributions on a Roth (after-tax) basis.

#4—Update Your Homeowners Insurance

Have you remodeled your kitchen, finished a basement or added a garage?

Major home improvements can increase the cost to rebuild your home. If you’ve completed significant renovations, review your homeowners insurance to help ensure your coverage keeps pace with your home’s current value.

Also, if you’ve added a pool, consider adding an umbrella policy.

#5—Plan Ahead for Holiday Spending

It may feel early, but the holiday shopping season will be here before you know it.

Therefore, take a few minutes now to decide how much you want to spend on gifts, travel and entertaining.

Setting a budget early can help reduce financial stress and prevent overspending later in the year.

If you have any questions, please reach out.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1) Fidelity.com, How to spend from a 529 college plan, https://www.fidelity.com/learning-center/personal-finance/college-planning/college-529-spending

Instead of Retiring, Many Are Doing This (4 Alternatives)

by

Retirement is changing.

For years, the traditional idea was simple: pick a date, stop working, and move fully into retirement.

But today, many people are taking a different path.

According to a recent Fidelity study, 61% of respondents are moving away from the “hard stop” approach and instead transitioning into retirement gradually.1

While many choose to simply scale back hours at their current jobs, this chart highlights four other ways people are approaching retirement:

Chart Data Source: Fidelity

Among all study respondents, the top retirement transitioning alternatives include gig work and side hustles (35%), starting a small business (29%), consulting part-time (26%), or switching industries altogether (20%).

Retirement Isn’t Just a Date on the Calendar

For many people, retirement is becoming more of a transition than a single decision. This often requires thoughtful planning across both personal and financial areas, including:

  • Defining Your Purpose: Determine exactly how much daily structure, flexibility, intellectual stimulation, optional income and engagement you need.
  • Optimizing Income & Flexibility: Even modest part-time income can reduce portfolio withdrawals while creating more flexibility around taxes and portfolio growth.
  • Controlling Portfolio Withdrawal Timing: An adaptable transition can help protect your portfolio from sequence-of-returns risk, minimizing the need to sell assets during market downturns.
  • Reducing Anxiety: A phased transition allows you to ease into retirement gradually instead of feeling pressured into a sudden life change.

Overall, retirement is a series of choices, not a single decision.

We explore how to navigate this process and what the “4 Phases of Retirement” look like in our post: How to Make the Decision to Retire

Keep in mind, there’s no “right” way to retire.

However, if it’s top-of-mind for you, reach out as soon as possible. The earlier we plan, the more financial flexibility you’ll likely have.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1) Fidelity Investments® Study, https://newsroom.fidelity.com/pressreleases/fidelity-investments–study–72–of-americans-say-they-will-retire-on-their-own-terms-as-they-embrac/s/609fbcb7-3ea5-4773-a300-0659da881d2a

Your Retirement Budget vs Inflation; Protecting Purchasing Power

by

In client meetings, we often hear:

“If I have $180,000 a year in retirement, I’m set.”

It’s a great goal.

On paper, it sounds reasonable. But the problem with “magic numbers” is they’re static targets in a moving world.

Fast forward 25 years, and that same $180,000 may only feel like $100,000.

Not because your portfolio failed, but because inflation quietly changed the math.

This Fidelity chart highlights the erosion. Even a modest 3% inflation rate can cut purchasing power in half over a typical retirement span:

Chart Source: Fidelity1

Inflation compounds over time. And by the time you feel it, your money doesn’t go as far as it used to.

So what do we actually do about it?

For your portfolio, we don’t treat inflation as an afterthought.

We plan for it from the start.

POSITIONING FOR GROWTH

We allocate a portion of your portfolio to assets that have historically outpaced inflation.

In practice, this means focusing on:

  • Pricing Power: Investing in companies that can pass rising costs on to consumers, protecting your profit margins.
  • Growing Income: Prioritizing dividend-paying companies with track records of increasing payouts to help your cash flow keep pace with rising prices.
  • Asset Location: Strategically placing your growth investments in the most tax-efficient accounts, helping to ensure more of your gains remain available for your future spending.

Another Thought

Inflation is just one of the “Big Five” challenges we manage within your retirement strategy.

To see how inflation interacts with the other four (longevity, healthcare, volatility and withdrawals), take a look at this Fidelity breakdown of the Big Five Retirement Risks.

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S. If you’d like to see how inflation and the national debt tie together, read our post: The Guest Who Never Leaves (and wasn’t invited)

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1) Fidelity, Retirement Income Planning, https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/income-diversification.pdf

The Guest Who Never Leaves (and wasn’t invited)

by

Let’s kick off April with a riddle:

I’m the guest who never leaves, yet I’m never on the invite list.

I grow while you sleep, I eat before you sit down to dinner, and I’m currently worth about $114,000 for every person in America. Most people ignore me because I’m “too big” to understand—until I start quietly nibbling away at your retirement savings.

The guest’s name? The National Debt.

The total is nearly $39 trillion. It’s a massive, unsettling number.

What’s more, a debt of this magnitude forces the government’s hand, leading to the “quiet” erosion of your purchasing power.

Our role is to help manage these side effects over time.

Three Debt-Control Levers

To manage debt, the government typically pulls three levers. Each move helps stabilize the national balance sheet, but typically creates a “hidden tax” on your savings.

The levers include:

  • Allowing Inflation to Climb: One way to pay off debt is by letting the dollar’s value shrink. By weakening the dollar’s power, the government essentially pays back its obligations with “cheaper” money. While this lightens the debt load, it means you face higher costs in your daily life.
  • Letting Interest Rates Fluctuate: Currently, about 75% of U.S. debt is owned domestically. With the government selling more debt each year, it must raise interest rates to entice buyers to move from “I have enough” to “I’ll take more.” In general, every dollar spent on debt interest is a dollar diverted from public services and infrastructure.
  • Raising Taxes: When inflation and interest rate adjustments aren’t enough to cover the gap, tax policy becomes the final lever. This is the most direct way the government bridges the deficit, often resulting in higher tax rates or fewer deductions.

Your Portfolio: Controlling the Controllables

The debt total is mostly out of our hands.

However, we can control our response to it.

Our approach focuses on insulating your portfolio from the downside risks.

This starts with how we position your assets for the long haul using four key strategies:

#1—Protecting Your Buying Power

Inflation doesn’t happen all at once; it’s a slow erosion of your lifestyle.

To counter this, we rely on growth assets like equities diversified across both U.S. and international companies.

The goal is to help ensure your money keeps pace with rising costs so your standard of living never has to shrink to fit the economy.

#2—Getting Ahead of Future Taxes

If your money is mostly in tax-deferred accounts like traditional IRAs or 401(k)s, then you essentially co-own your account(s) with the IRS.

Therefore, we use strategies like Roth conversions and tax location so that if tax rates rise to cover the national debt later, you keep a bigger slice of your own pie.

Here’s what this looks like in practice:

  • Tax-Protected Placement: We keep high-tax investments, like REITs and high-yield bonds, inside your IRAs. This helps shield these higher interest payments from being taxed at your ordinary income rate.
  • Tax-Efficient Growth: We prioritize low-turnover index funds and ETFs in your taxable brokerage accounts. These assets generate very little tax drag, allowing you to keep more of your returns compounding over time. In fact, we’ve shared how compound interest plays a vital role in maintaining your retirement lifestyle.
  • Strategic Municipal Bonds: For clients in higher tax brackets, we use municipal bonds in taxable accounts. This creates a federal tax-free income stream without “wasting” the valuable tax-deferred space inside your retirement accounts.

#3—Staying Flexible With Interest Rates

When the government issues more debt, rates generally climb to attract buyers.

Rather than locking you into long-term bonds that might get “stuck” in yesterday’s rates, we use short-to-intermediate bond ladders. This keeps us nimble so we can capture better yields as they happen.

#4—Building Policy-Proof Income

We can’t predict what will happen with Social Security or future fiscal policy.

That’s why we stress-test your plan against different Social Security scenarios and use dynamic “guardrail” modeling to build diversified income streams.

We want your retirement to stay stable regardless of shifting economic policies.

The Bottom Line

The national debt is an economic reality.

It’s also a factor we weigh carefully when managing your long-term strategy.

If you’d like to sit down and go over the specifics of your portfolio, reach out anytime.

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S. In case you missed it, our latest post explains why Markets Don’t Send Invitations When the Best Days Arrive.

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Mid-Year Review: Small life changes can have big financial impacts

by

Welcome to summer!

Longer days, warmer weather and a fresh mid-year perspective.

June is the perfect time to take stock of what’s changed in your life, and what might be just around the corner.

Even small life shifts can carry big financial implications, which is why a mid-year review can be so valuable.

What’s changed in your world?

Today’s discussion includes:

  • Reviewing your life changes that may warrant a financial plan update.
  • A checklist to help stretch your retirement income.
  • Tips for backing up and protecting essential documents.

Mid-Year Review: What’s changed?

Life can throw us curveballs and priorities can shift, so let’s make sure your financial plan is still aligned with what you want to achieve.

Give us a call if any of the following applies to you:

Job or Income Changes: A new role, early-retirement offer, added income stream, selling a business? These changes typically affect taxes, benefits (e.g., Medicare IRMAA penalty) and investing strategies. There are, however, financial moves we can often make to offset downside ramifications.

[Related Resource]: Planning Your Final Days of Work Before Retiring

Family Milestones: Marriage, divorce, birth, death, aging parents or adult children with new special needs may require estate or insurance updates.

Health: A recent diagnosis or nearing age 65? Let’s make sure your healthcare plans are in place. Also, if you want to learn more about long-term care insurance, contact us. We’re happy to discuss the pros, cons and costs. Keep in mind, we don’t sell insurance. However, we have long-standing relationships with insurance specialists.

Large Purchases, Sales or Windfalls: Selling a home, funding college or receiving an inheritance? Planning ahead can help reduce financial surprises.

Retirement Approaching: If retirement is just a few years away, it’s time to solidify your plans. A smart Social Security strategy and a well-timed savings withdrawal plan can often extend the life of your retirement funds. We’ll also help you establish a two-to-four-year financial safety net and structure your withdrawals to minimize taxes. For a closer look at our approach, check out: How To Spend Confidently & Without Regret in Retirement.

Prolonging Retirement Income (Checklist)

Whether you’re already retired or planning to be soon, this checklist can help you identify steps that may extend your savings. It’s a great resource to review annually.

[Download the checklist]

Are Your Essential Documents Backed Up and Safe?

If there were a house fire tomorrow, would you have what you need? A simple fire-safe box can help you protect the basics, including:

  • Birth Certificates
  • Digital Account Logins
  • Emergency Contact List
  • Estate Documents
  • Home Inventory Photos/Video (for insurance claims)
  • IDs & Passports
  • Insurance Policies
  • Key Warranties (e.g., new roof, solar panels, windows, etc.)
  • Loan Documents
  • Social Security Cards
  • Spare Emergency Cash
  • Vehicle Titles

Digital Vault

Our clients have access to a secure digital vault.

It’s a private, encrypted space where you can store digital copies of key documents, including those listed above but also scans of: credit cards, divorce decrees, marriage certificates, property records and more. The vault is accessible anytime, from anywhere, securely.

Fire-Safe Boxes for Important Items

To help protect your important documents, look for a fire-safe box with a UL 72 or ETL certification, a 120-minute fire rating and water resistance.

Underwriters Laboratories (UL) and Electrical Testing Laboratories (ETL) are Nationally Recognized Testing Laboratories. They independently test products to stringent safety and performance standards.1

Important: Your protection-rating needs may vary. For example, if you’re looking for a safe that protects digital media or is burglary resistant, these require different UL classes.

American Security has some helpful articles regarding safes, including Why Safe Ratings Matter.2

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: Osha.gov, Current List of NRTLs: https://www.osha.gov/nationally-recognized-testing-laboratory-program/current-list-of-nrtls

2: American Security, Why Safe Ratings Matter: https://americansecuritysafes.com/why-safe-ratings-matter

Planning Your Final Days of Work Before Retiring

by

The Calm After the Work Is Do

Today, we:

  • Discuss eight actions to take before you give retirement notice to your employer.
  • Provide a detailed checklist of essential pre-retirement tasks.

As you start thinking seriously about your final days of work before retirement—whether that’s at age 62, 67 or another time—there are a few key actions that help things go more smoothly.

Now, let’s look at eight actions to take before your last day of work:

#1—Retire to Something, Not Just from Work

Retirement isn’t just about leaving your job.

It’s about building a life you want to live. Whether that means a part-time job, volunteering, spending time with the grandkids or finally joining “that” gym—it’s important to have a purpose.

Beyond what you’ll be “doing” in retirement, it’s equally important to understand how you might feel and how your health could be impacted by this major transition.

Quick Tip by Dave Bunker, Watch the Video Now >

#2—Understand the Emotional Shift and Health Impact

The first year of retirement can bring a surprising health risk: stress-related heart issues spike.

The transition from earning and saving to drawing down what you’ve built is a big emotional adjustment.

Background:

Harvard School of Public Health researchers looked at rates of heart attack and stroke among men and women in the U.S. Health and Retirement Study. Among 5,422 participants, those who had retired were 40% more likely to have had a heart attack or stroke than those who were still working.1

The increase was more pronounced during the first year after retirement, before leveling off. Overall, research on retirement’s health effects is mixed.2

Our Recommendation…

Retirement isn’t a one-time event; rather, it’s a transition.

Many retirees experience changes in identity, routine and social connection. That’s why it’s important to prepare not just financially, but emotionally as well.

To better understand the emotional journey, check out this helpful TED Talk: 4 Phases of Retirement…and the Psychological Challenges.3 The four phases include: Vacation, Feeling Lost, Trial and Error, and Reinvent and Rewire.

#3—Clean Up and Consolidate Your Financial Life

Now is the time to tidy up your financial accounts, including:

  • Review and possibly consolidate old 401(k)s or other workplace plans into an IRA. While some 401(k)s are worth keeping, IRAs usually offer more flexible withdrawal options and simplify things for your heirs.
  • Open any needed accounts before your final day to avoid delays. For instance, give us a call about a month before you retire so we can help you set up the IRA account you’ll use to roll over your 401(k), 403(b) or similar.
  • If you’re receiving a pension, let’s analyze your options (lump sum vs. monthly annuity, single life vs. joint life, etc.) using our Income Lab modeling tool. Keep in mind, most pension decisions need to be made at least 60 days before retirement. Also, if you’re taking a lump sum, put it into an IRA. If you leave it in your brokerage, you’ll pay taxes on ordinary income. 

TIP: If you’re receiving a bonus or cashing out unused vacation time, it may impact your taxes or final 401(k) contributions. Therefore, timing your retirement date matters. Also, hold off rolling over your 401(k) into your IRA until your final contribution, unused vacation time, bonus, etc. hit.

#4—Secure Healthcare Coverage

Are you eligible for Medicare (typically at age 65)? Or will you need COBRA or private insurance? Will you want Medicare Advantage?

While pondering the latter, you’ll also want to revisit your healthcare proxy, powers of attorney and estate documents.

Important: If you’re 63 or older, let’s analyze your income to avoid triggering IRMAA surcharges (Income Related Monthly Adjustment Amount) on Medicare premiums. Being just one dollar over can cost you thousands.4

Free Medicare Counseling Resources:

#5—Plan Your Retirement Paycheck

We’ll help you set up a retirement income stream that feels like a paycheck.

Resource: Read our detailed blog post about how we help you create your monthly retirement paycheck.9

#6—Watch for Tax Triggers & Withholdings

Be sure to double-check your tax withholding rates for Social Security and pension income. Common options include 7%, 10%, 12%, 22% and higher.

Many retirees forget to set withholdings on these payments, which can lead to surprises at tax time. Alternatively, you can opt to pay quarterly estimated taxes.

As a general rule, use a 20% withholding rate as a starting point. It may need adjusting, but it offers a solid baseline.

Remember, while you’ll no longer pay into Social Security or Medicare, you’ll still owe taxes on retirement income.

Finally, if you’ve had a one-time income event, it’s important we run a tax analysis together.

For Example:

If your total income was $200,000, but $80,000 came from a one-time bonus, we’ll want to explore whether that bonus can be excluded when calculating your Medicare IRMAA.

Lastly, consider if there is anything else you should be doing right now, e.g., taking capital gains.

#7—Decide What Insurance to Keep (and What to Let Go)

As your needs change, it’s smart to review any life or long-term care insurance policies.

Key questions to ask yourself include:

  • Is your life insurance portable?
  • Do you still need it?
  • Should we evaluate or add long-term care coverage?

#8—Finalize Your Budget

A budget is a living, breathing document; it’s never truly final. Still, it’s important to think about how your spending patterns will shift in retirement.

For example, retirement may mean:

  • Less spending on commuting, work clothes or lunches out, but more on travel, healthcare, hobbies or RV maintenance.
  • Mortgage payments disappearing, but insurance or family support costs rising.
  • Savings on payroll taxes, but higher utility bills from being home more.
  • Dropping life insurance premiums, but adding Medicare costs, prescriptions or home repairs.

Resource: Download our handy budgeting worksheet.10

Understanding these trade-offs now helps set realistic expectations and keeps your retirement income plan on track.

RESOURCE: Retiring Checklist

To help you think through additional retirement considerations, here’s a detailed checklist: What issues should I consider before I retire?11

Within the above checklist are links to other checklists and flowcharts that help answer the following questions:

  • Will I Avoid IRMAA Surcharges on Medicare Part B & Part D?
  • What Issues Should I Consider When Purchasing Long-Term Care Insurance?
  • Should I Consider Doing A Roth Conversion?
  • What Issues Should I Consider When Establishing My Charitable Giving Strategy?
  • What Issues Should I Consider Before I Update My Estate Plan?
  • Am I Eligible for Social Security Benefits If I Have Been Divorced?
  • Am I Eligible For Social Security Benefits As A Surviving Spouse?
  • Can I Make A Deductible Contribution To My HSA?

Next Steps

If you’d like an updated look at your retirement income and tax projections, give us a call. We’re happy to revisit the numbers as often as you need, regardless of how close or far off your retirement may be.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: Harvard Health Blog, Is retirement good for health or bad for it? https://www.health.harvard.edu/blog/is-retirement-good-for-health-or-bad-for-it-201212105625

2: National Library of Medicine, Transition to retirement and risk of cardiovascular disease: Prospective analysis of the US Health and Retirement Study https://pmc.ncbi.nlm.nih.gov/articles/PMC3367095/

3: TED: 4 Phases of Retirement…and the Psychological Challenges, https://www.ted.com/talks/dr_riley_moynes_the_4_phases_of_retirement

4: Northern Trust, Avoiding the IRMAA Cliffs, https://www.northerntrust.com/united-states/institute/articles/avoiding-the-irmaa-cliffs

5: Mass.gov, Serving the Health Insurance Needs of Everyone (SHINE) Program, https://www.mass.gov/info-details/serving-the-health-insurance-needs-of-everyone-shine-program

6: New Hampshire DHHS, Aging and Disability Resource Centers, https://www.dhhs.nh.gov/programs-services/adult-aging-care/aging-and-disability-resource-centers

7: Fidelity, We are Fidelity Medicare Services, https://medicare.fidelity.com/about-us/

8: Fidelity, Learn about Medicare, https://medicare.fidelity.com/learning-center/

9: Windsor Wealth Management, How To Spend Confidently & Without Regret in Retirement, https://windsorwm.com/how-to-spend-confidently-without-regret-in-retirement/

10: Windsor Wealth Management, Budgeting Worksheet, https://windsorwm.com/wp-content/uploads/2023/10/Budget-Worksheet.xlsx

11: Windsor Wealth Management, What Issues Should I Consider Before I Retirement, https://windsorwm.com/wp-content/uploads/2025/05/What-Issues-Should-I-Consider-Before-I-Retire-2025.pdf

Home Energy Audits and Energy Tax Credits

by

Is your home leaking money?

Wealth isn’t just about accumulation; it’s about being intentional with your resources.

Optimizing your home’s energy efficiency is a prime example.

Just as we seek to help maximize your financial returns, you can maximize your home’s comfort and value, while also leveraging energy credits to lower your taxes.

Are your cooling and heating systems energy efficient?

Our goal today, is to help you:

– Discover hidden savings via a professional home energy audit.

– Reduce taxes by leveraging energy credits.

– Understand two key 2025 energy tax credit changes.

– Increase awareness of energy-efficiency scams.

Useful Home Energy Audits

A good energy audit includes a detailed report of where your home is losing energy, and what you can do to fix it.  

The first step, is finding a certified energy auditor. Specifically, a professional who’ll provide you unbiased information and isn’t selling products.

Finding a Reputable Auditor

The U.S. Department of Energy recognizes about 10 home energy auditor qualified certification programs for the Energy Efficient Home Improvement Credit.

To find certified professionals near you, try the Building Performance Institute (BPI) locator. Keep in mind, BPI is just one locator option.

Ideally, select an auditor that doesn’t perform repairs. This helps ensure less bias results.

Related…

Mass Save® is a collaboration of Massachusetts utilities that offer home energy assessments (at no cost), rebates and incentives to help you reduce your energy costs.

Incentive Example:

The Mass Save HEAT Loan offers 0% financing for eligible energy-efficient upgrades. Starting January 1, 2025, you can finance up to $25,000. The financing covers a range of improvements, including insulation, heat pumps, batteries and more.

Most states offer energy-efficiency programs, supported by state, utility and federal incentives, including New Hampshire.

Therefore, before upgrading any cooling or heating system, or replacing any appliance, be sure to check for available rebates and incentives.

Pinpointing where your home loses the most energy will help you prioritize repairs and maximize IRS home energy credits.

Resource: Here’s a helpful chart listing what to expect an auditor to have for tools, (e.g., combustion analyzer, infrared camera, digital probe thermometer, etc.) and what the audit entails.

Finally, watch out for unsolicited “free” energy audit offers. Some companies use these to push you into buying things you don’t need. Always double check who the auditor works for and get a few different opinions before agreeing to any work or signing on the dotted line.

Home Energy Tax Credits & Key 2025 Changes

The Energy Efficient Home Improvement Credit is available for qualifying home improvements made from January 1, 2023 through 2032. To qualify for these credits, generally the improvements must be for your primary residence and use only new materials and systems.

2 Key Changes:

There have been two key changes to the program starting in 2025, including:

#1—Energy-efficient products eligible for the credit need to be manufactured by “qualified” manufacturers.

The IRS is establishing a program to certify manufacturers whose products meet specific energy efficiency standards. This requirement helps ensure the products receiving tax credits are genuinely contributing to energy savings.

#2—When claiming the credit, you must provide the Product Identification Number (PIN) for the qualifying items on your tax return.

Basically, the PIN is a unique ID the IRS uses to ensure the product meets standards, comes from a legit company and matches your credit claim.

Watch Out for Energy-Efficiency Scams

The number of U.S. solar installations is expected to double by 2030, according to the Solar Energy Industries Association®.

Therefore, it’s not surprising we’re seeing increases in solar scams.

The U.S. Treasury describes popular solar scams in their article, Consumer Solar Awareness. (It also talks about buying vs. leasing solar power systems.)

The article highlights several scam tactics, including:

– Sales pitches saying, “This is a government program” to make you think a solar installation is free or government-endorsed.

– Promises of free solar panels and limited-time offers and other pressure tactics urging you to sign up without examining the details.

– Promises of tax credits even though you owe no taxes or promises that the government will send you a tax rebate check in the mail.

Overall, solar panels may be a good option to lower your energy costs, but take your time when evaluating your options.

Buyer Beware: In general, if something is unsolicited, creates a sense of urgency, demands immediate or unusual payment, or sounds too good to be true—assume it’s a scam.

[Related]: Since the weather is getting warmer, watch out for paving scams.

Helpful Tips: No matter if you’re buying a new home or an appliance, be sure to look for the Energy Star mark. Keep in mind, the Energy Star isn’t always the only requirement for tax credits. But, it’s a good indicator of energy efficiency and, therefore, a good place to start.

Finally, don’t forget about Consumer Reports, a nonprofit organization that provides unbiased testing and ratings of products and services, (e.g., new A/C, refrigerator, smart thermostat, etc.). You can often access their reports online for free with most library memberships.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

How To Spend Confidently & Without Regret in Retirement

by

Let’s challenge conventional wealth accumulation wisdom…

Our team recently read the book, Die With Zero: Getting All You Can From Your Money by Bill Perkins. It’s an easy-to-read personal finance book that challenges current retirement norms.

(We have extra copies—feel free to stop by and pick one up. We’d love to meet you!)

Creating memories or leaving an inheritance: when is the right time to give?

Today, we discuss how to:

  • Get all you can from your money, (i.e., highlight ideas from the book Die With Zero).
  • Spend confidently and without regret in retirement.
  • Decide the right time to give—now or later—using sophisticated money modeling.

Get All You Can From Your Money

Bill Perkins’ “Die With Zero” overall argument is:

When preparing for retirement, people often save too much and spend too little, ultimately missing out on meaningful life experiences.

Perkins argues money should be spent strategically for fulfillment, not just left behind.

Before going any further, let’s be clear…

We’re not encouraging you to be financially irresponsible. Absolutely not!

But, Perkins is definitely onto something—especially when you combine his ideas with strategic financial planning.

Here are some of his key points:

Maximize Life Experiences: Instead of focusing solely on accumulating wealth for retirement or your heirs, think about how you can use your money to create meaningful experiences while you’re able to enjoy them.

Time-Bucket Your Life: Your life has different stages, and each one comes with unique opportunities. Be intentional about how you allocate your money so you can make the most of every phase—especially while you’re healthy.

Invest in Experiences Early: The best time to create lasting memories isn’t “someday”—it’s now. Enjoying experiences earlier in life helps you feel more fulfilled.

Avoid Over Saving: Too many people work longer than they need to and save more than they’ll ever spend. The result? They leave behind wealth they never got to enjoy themselves.

Optimize Giving: If you plan to leave money to loved ones or charities, consider giving earlier rather than waiting until after you’re gone. Your generosity could have a much bigger impact now.

[Related Blog Post]: One of the best times to use Qualified Charitable Distributions (QCDs) is early in the year. Learn why in our post, 2025 Tax Planning Resources & Key Financial Data Spreadsheet.

Plan for a Declining Health Curve: Your ability to travel, explore and be active won’t last forever. That’s why it’s important to strike a balance between financial security and truly living while you can.

Perkins’ ideas sound reasonable. In reality, though, most require detailed financial planning.

This is where we come in…

Spend Confidently and Without Regret in Retirement

Many retirees worry about spending their money, i.e., What if the market takes a downturn? What if I outlive my savings?

While these concerns are natural, a well-structured financial plan helps you be intentional with your spending and feel secure knowing your money will outlive you.

Our role is to guide you through this process with a clear four-step approach:

Step #1—Determine Your Retirement Spending Capacity & Create a Tax-Efficient Withdrawal Plan

Everyone’s financial situation is unique, with different levels of savings, income sources and comfort with risk. We take a personalized approach to managing your investments—balancing growth with stability while ensuring you can spend confidently in retirement.

A key part of this strategy is minimizing taxes on your withdrawals so you keep more of what you’ve saved. We do this by carefully selecting which accounts to withdraw from first—whether taxable, tax-deferred or tax-free—based on your income needs and current tax rates.

This approach helps extend the life of your portfolio, allowing your investments to continue growing even as you draw from them.

Overall, it’s our job to tell you how much you can afford to spend in retirement. A primary tool we use to help you is advanced software (aka Income Lab) that includes sophisticated money modeling guardrails.

Resource: We discussed money modeling guardrails in a recent post: 3 Steps To Help Your Money Outlive—You.

Step #2—Create a Monthly Paycheck for You

One of the biggest adjustments in retirement is transitioning from a regular paycheck to drawing from multiple income sources.

Most of our clients rely on a mix of Social Security, pensions, part-time work and investment withdrawals for their retirement income.

Some also have additional income streams, e.g., rental properties, royalties, payments from seller financing, etc.

Understanding how these income sources interact is essential for confident retirement spending.

That’s why we focus on transforming your various income streams into a tax-efficient monthly paycheck.

Simple Example:

Imagine your annual withdrawal plan from investments is $84,000 (excluding Social Security, pensions and other income sources). Each month on the 15th, we’ll deposit $7,000 from your investment portfolio into your checking account, ensuring you receive a steady stream of income.

This way, you can enjoy a sense of stability, knowing a $7,000 “paycheck” will arrive in your account every month.

Step #3—Put Aside Two-to-Four Years of Safety Net

To help ensure you can weather market fluctuations without disrupting your lifestyle, we set aside two-to-four years’ worth of income needs in a conservative investment account (that still grows).

For example, if you plan to spend $84,000 per year, we earmark $252,000 to cover the first three years of retirement.

This portion of your portfolio is stable, meaning that even if the market declines, your ability to meet your spending needs remain intact. Meanwhile, the rest of your investments continue growing for the future.

Step #4—Perform Annual Audits & Make Smart Adjustments

Each year, we reassess your portfolio balance versus your spending and market conditions.

If the market performed well, we “refill” the amount spent from the safety net.

However, if the market had a down year, we hold off on refilling and use the second year’s reserve instead.

Since market recoveries typically take six to 18 months, this approach helps protect your long-term investments.

Audit: Keeping Spending on Track

As part of the audit, we discuss your spending target. Again, let’s say it’s $84,000. If you end up spending more, perhaps $98,000, it may not be an issue if the market was strong. However, if higher spending becomes a pattern, we’ll flag it and have a conversation about sustainability.

Retirement should be about enjoying life, not worrying about money.

By following a plan that balances stability with flexibility, you can confidently spend with the knowledge that your financial future is secure.

Decide the Right Time to Give—Now or Later

Imagine sharing your wealth with loved ones now—without stressing about your future finances.

How does Windsor Wealth Management help you decide whether to give money now (especially if your loved ones could really use it), or wait?

We typically present two scenarios:

Scenario One: You hold onto your money and pass it on after you’re gone.

Scenario Two: You gift, say, $5,000 to each grandchild now and see the impact on your financial plan.

Most of the time, the effect from early giving is minimal.

Using our real-time software modeling, we run the numbers so you can see the difference.

For example, perhaps instead of spending $12,000 per month, you adjust to $11,500.

This way, you can give—now—with confidence.

Final Thoughts

Bill Perkins offers some good insights, encouraging people to make the most of their wealth during their lifetime.

Keep in mind, his perspective comes from the lens of a successful (and wealthy) hedge fund manager and entrepreneur.

Ultimately, as with all things in life, balance is key—enjoying your wealth while ensuring financial security for the long run.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.