Windsor Wealth Management LLC

Investment service in Topsfield, Massachusetts

Windsor Insights

Stress-Free Retirement Spending: The “Bucket” Strategy

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A few months ago, we shared thoughts on how to spend confidently in retirement without regret.

Today, we’re adding to that idea with a simple strategy: the “bucket” approach to retirement income planning.

What is the bucket strategy?

The idea is simple: instead of treating your retirement savings as one big pot of money, we divide it into time-based “buckets.”

  • Near-term needs (0–3 years): Cash-like investments for everyday expenses (still earning interest).
  • Short- to mid-term (3–7 years): Conservative investments for stability.
  • Longer-term (7–25 years): Growth-oriented investments that have time to weather market ups and downs.

Capital Group’s chart below does a great job of showing five buckets that tie directly into the three timelines we emphasize: near-term, short- to mid-term and long-term:1

Why It Works

What makes this system powerful is how the buckets generally stay replenished over time.

As growth-oriented investments in the longer-term buckets mature, we gradually move a portion “down” to refill the nearer-term buckets. That way, you know your next few years of spending are covered—while the rest of your portfolio continues working for the future.

For Example:

Imagine you’ve spent down most of your 3–7 year conservative bucket. We’d replenish it by shifting gains from your 7–13 year growth bucket, helping to ensure the money you’ll need next is already set aside—without having to sell investments at a bad time.

It’s a structured, practical way to reduce worry about market swings while keeping your retirement income flowing. (Here’s more about our disciplined investment approach.)

Please reach out with any questions.

–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: Capital Group: The bucket approach to retirement income, https://www.capitalgroup.com/advisor/insights/articles/ir-bucket-strategy-putting-it-into-practice.html

Today’s New Reality: Spotting Scams

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It’s never our intent to alarm you. Instead, our goal today is to keep you informed.

Our new reality is that you must be skeptical of every call, email or text you receive.

Why?

Because 73% of surveyed U.S. adults have experienced some kind of online scam or attack. What’s more, most get scam calls, texts and emails at least weekly, according to a Pew Research Center study.1

For Example:

The following text message is a social engineering scam.

The scammer sends a vague message from an unknown number to see if the recipient will engage. A response confirms the number is active, and the scammer then tries to gain your trust and, eventually, your money.

Social Engineering Text Scam Example
Called “smishing” a blend of SMS and phishing

In today’s post, we:

  • Explain scams that frequently impact adults aged 60 and older. (See our Scam Awareness handout below.)
  • Describe how scammers use text messages and social engineering—the psychological manipulation of people—to get you to divulge confidential information or take specific actions.
  • Suggest steps to help protect yourself from scams, including creating a safe word.

Let’s start with some background information:

According to the Pew Research Center study, the most common scam attacks are:

Credit/Debit Card Fraud (48%): Online hackers stealing credit or debit card information and making fraudulent charges.

Online Shopping Scams (36%): Buying an item online that was either counterfeit, never arrived or for which a refund was never received.

Account Takeovers (29%): A personal online account being accessed or taken over without permission.

Phishing Scams (24%): Scammers using an email, text message or call to trick people into giving away personal information.2

2 COMMON SCAMS TARGETING ADULTS AGED 60+

#1—Government Impersonation & Other Imposter Scams

How it works: Scammers pose as government officials (IRS, SSA, Medicare) and use scare tactics, including threatening arrest, lawsuits or loss of benefits if immediate payment or personal information isn’t provided. They might “spoof” caller ID to make it look like a legitimate government agency is calling.

Criminals also pretend to be: the police, from large companies (e.g., Amazon), an agency claiming you have unpaid tolls/traffic tickets, or your future boss, rushing you to provide your bank information for payroll purposes.

Why it targets older adults: Older adults often rely on government benefits and may react quickly to official-sounding threats, especially regarding their Social Security or Medicare.

#2—Grandparent & Emergency Scams

How it works: A scammer calls or emails, pretending to be a grandchild or other relative in distress (e.g., in jail, sick or needing emergency money for travel). They often beg the grandparent not to tell anyone else and request money via wire transfer or gift cards, which are difficult to trace. They may even use AI to clone a grandchild’s voice.

Why it targets older adults: These scams prey on the love and concern grandparents have for their family. The emotional appeal can override caution.

[RESOURCE]: Download and share our new handout: Beware of Scams Targeting Older Adults Aged 60+. It addresses scams related to: tech support, investments, sweepstakes/lottery, romance and more!

Another Example: Incoming Scam Email

TEXTING SCAMS

While many text scams rely on malicious links, another sophisticated tactic involves social engineering (This article discusses 10 types of social engineering attacks) through conversation.3

Generally, there are three steps to text scams:

Step #1—Initial Contact (The Bait)

During step one, scammers “bait” you so you’ll respond.

Examples Include:

Wrong Number Scam—This is a very common starting point. You’ll receive a text like: “Hey, is this Sarah? Long time no see!” or “Hi, did I catch you at a bad time?”

Your natural inclination might be to politely correct them: “Sorry, wrong number.” This is exactly what the scammer wants—they’ve gotten you to engage.

Random, Innocent-Sounding Messages—Sometimes it’s as simple as “Hello” or “How are you doing today?” They’re casting a wide net, hoping someone responds.

Fake Alerts (without a link)—They might send a text pretending to be from a bank, a delivery service or a government agency, but instead of a link, they’ll say something like: “Suspicious activity detected on your account. Reply ‘YES’ to verify or ‘NO’ to block this charge. For immediate assistance, call [fake number].”

Step #2—Build Rapport (Social Engineering)

Once you respond, even with a simple “wrong number,” the scammer shifts into building a relationship.

This is where social engineering comes in.

They might:

Apologize Profusely: “Oh, I’m so sorry! My mistake. It’s so hard to keep track of numbers these days. But since I have you, how are you doing?”

Pretend Interest: They’ll ask about your day, your hobbies, your work or something generic to keep the conversation going. They might share “details” about their fake life (e.g., successful business venture, exotic travel or a recent family tragedy) to make themselves seem more credible and relatable.

Manipulate Emotions: They might express loneliness or seek advice to create a bond. This is particularly effective in romance scams.

Encourage Investing: They may say, “I’ve been making a lot of money with this new crypto platform, and I think you’d be really good at it! I can show you how.” As an aside, if you see a friend talking a lot about crypto on a social channel, their account has likely been taken over by scammers.

Step #3—The “Ask”

Eventually, the scammer will ask for money or sensitive information. Because they’ve invested time in building trust, the victim may be more likely to comply.

They might request:

  • Wire Transfers: Untraceable and irreversible.
  • Gift Cards: Popular because they’re like cash and hard to trace.
  • Cryptocurrency: Increasingly common for its perceived anonymity.
  • Bank Account Details: To “send you money” or “invest for you,” but actually to steal from you.
  • Personal Information: Social Security numbers, dates of birth, addresses, which can be used for identity theft. (In reality, due to past security breaches, a great deal of this information is already possessed by hackers.)
  • Login Credentials: For online banking, email or social media, giving them direct access to your accounts.

BE AWARE OF THE FOLLOWING

HOW TO PROTECT YOURSELF FROM SCAMS

GENERAL PRINCIPLES:

Be Skeptical: If something sounds too good to be true, it probably is.

Guard Personal Information: Never share sensitive data (SSN, bank account details, credit card numbers, passwords) unless you initiated the contact and are certain of the recipient’s identity.

Resist Pressure to Act Immediately: Scammers often create a sense of urgency to prevent victims from thinking clearly or consulting with others.

COMMUNICATION RED FLAGS:

Unsolicited Contact: Watch out for unsolicited contact from unknown numbers or emails. This is a major red flag, even if they claim to know you.

Vagueness: Scammers often keep their initial messages vague (“Hey, is this you?”) to get you to fill in the blanks and reveal who you are.

No In-Person Meetings: If it’s a romance or friend scam, they’ll almost always have an excuse for why they can’t meet in person or via video.

Caller ID and AI: Be aware that scammers can spoof caller ID to impersonate trusted numbers and use AI to clone voices, often using audio from social media or even a voicemail greeting.

DIGITAL AND ONLINE SAFETY:

Verify, Verify, Verify: If someone claims to be from a company or government agency, hang up and call them back using a verified phone number from the agency’s official website, not a number given by the caller, text or email.

Avoid Clicking Links: Go directly to websites instead of clicking links from unexpected emails or texts.

Social Media Monitoring: Understand that scammers actively monitor social media to gather personal information like your pet’s name or birthday. They use these details to create convincing and targeted scams or answer security questions.

FINANCIAL PRECAUTIONS:

Refuse Untraceable Payments: Never agree to requests for payment via gift cards, wire transfers or cryptocurrency. These methods are nearly impossible to trace, making them a favorite for scammers.

CREATE A FAMILY SAFE WORD

With scammers now able to clone voices, a family safe word is a crucial defense. This should be a secret, unguessable word with no connection to your personal information, i.e., don’t use your pet’s name, etc.

How to use it:

Never volunteer the safe word. The person receiving the call must ask for it. A scammer might try to manipulate you by claiming they’re too upset to remember it.

To further protect yourself from scams:

  • Change your passwords often.
  • Enable two-factor authentication (2FA) on your accounts, and when possible, use an authenticator app (like Google Authenticator), which is generally more secure than receiving a code via text message.

–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 & 2: Pew Research Center, Online Scams and Attacks in America Today, https://www.pewresearch.org/internet/2025/07/31/online-scams-and-attacks-in-america-today/

3: Crowdstrike: 10 Types of Social Engineering Attacks and How To Prevent Them, https://www.crowdstrike.com/en-us/cybersecurity-101/social-engineering/types-of-social-engineering-attacks/

2025 Tax Changes: One Big Beautiful Bill Act (OBBBA)

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Just a quick update about some recent tax law changes, some will likely impact you.

President Trump signed the One Big Beautiful Bill Act (OBBBA) on July 4. The Act primarily extends and replaces the expiring 2017 Tax Cuts and Jobs Act (TCJA).

Among all the changes, one really stood out: a major increase to the cap on State and Local Tax (SALT) deductions.

Starting in 2025, the SALT deduction cap will increase from $10,000 to $40,000 for households earning under $500,000. For higher incomes, this cap gradually gets smaller.

(Note): The higher cap, which is effective until the end of 2029, will revert to $10,000 starting in 2030.1

SALT Deduction “Savings” Example

The higher SALT deduction means some taxpayers may save more money by itemizing their taxes this year versus taking the standard deduction.

Here’s an example…

Assumptions:

  • Married Filing Jointly
  • Adjusted Gross Income (AGI): $300,000
  • SALT Paid: $35,000 (including property and state income tax)
  • Other Itemized Deductions: $7,000 (e.g., charitable giving and modest or no mortgage interest, common for many pre-retirees and retirees with paid-down loans)

This example shows how the increased SALT deduction can shift a married couple’s advantage, enabling them to itemize for an extra $10,500 in deductions, leading to an estimated $2,520 in tax savings compared to the prior 2024 standard deduction rules.

Temporary Deductions

The Act also introduces several new temporary deductions for 2025-2028, including:

  • A $6,000 deduction for single filers ($12,000 for joint filers) for those aged 65+.

  • Up to $25,000 for tips; and overtime wages ($12,500 for single filers, $25,000 joint filers). Note, payroll taxes still apply.

  • Up to $10,000 for qualifying auto loan interest on new, U.S.-assembled vehicles.

Keep in mind, the above deductions are subject to income phase-outs and other restrictions.2

Other Key OBBBA Highlights:

Permanent Tax Cuts: Many TCJA provisions are now permanent, including the existing individual income tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%), and the increased standard deduction, now $15,750 for single filers, $23,625 for heads of household and $31,500 for joint filers, for 2025.

Child Tax Credit: The Child Tax Credit is permanently increased to $2,200 beginning in 2025, and will be indexed for inflation beginning in 2026.3

[Deep Dive Resource]: For an OBBBA deep (deep) dive, read Breaking Down The One Big Beautiful Bill Act: Impact Of New Laws On Tax Planning.

These are significant tax changes, and we’ve only scratched the surface. To see how they might impact you using our tax modeling software, please reach out.

It will be an exciting tax season for sure!

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S…Our Key Financial Data spreadsheet is now updated with the OBBBA changes, including 2025 tax brackets, standard deductions, child tax credit and much more.

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, 2, 3: Kitces.com, Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning. https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/

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.

Clear Thinking: Are You Defining the Right Problem?

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Ever made a decision you later second-guessed?

Shane Parrish’s book, Clear Thinking: Turning Ordinary Moments into Extraordinary Results, tackles this head-on.1

Clear thinking and decision-making are incredibly relevant for successful retirement planning.

While Clear Thinking had many great ideas, one in particular really stuck out.

Parrish suggests a two-session approach to decision-making, whether it’s for business or personal matters:

First, define the problem, and then, solve it.

Why?

In general, we’re taught how to solve problems, but rarely how to define them well. And a poorly defined problem often leads to poor decisions, no matter how clever the solution, according to Parrish.

Let’s apply this concept to retirement planning…

3 Retirement Planning Examples: Identifying the “Real” Problem

Here’s how separating the problem from solving it may look like:

Example #1

Let’s say you’re deciding whether to downsize your home or keep it as a base for the grandkids.

Instead of jumping to “What should I do?”—start by asking: What problem am I really trying to solve?

Is it cash flow? Simplicity? Travel flexibility? Family legacy?

Once the problem is clearly defined, you’re better equipped to make a thoughtful, regret-free decision.

Example #2

Let’s say you’re considering whether to buy a second home in another state.

Instead of jumping straight to “Can I afford this?” or “Is now the right time?”—start by asking: What problem am I really trying to solve?

Is it about escaping winter weather? Being closer to family? Creating new memories? Diversifying lifestyle assets?

By defining the why, you might uncover simpler alternatives or confirm it’s truly worth the tradeoffs. Clarity on your real goal helps you evaluate options more effectively.

Example #3

Let’s say you’re debating whether to help an adult child with a major expense, like a home down payment or launching a business.

Instead of going straight to “Should I give them the money or not?”—pause and ask: What problem am I really trying to solve?

Is it about providing opportunity? Keeping family close? Reducing future estate taxes? Easing your own guilt or anxiety?

Once you clarify your core motivation, it’s easier to assess if financial support is the right tool or if there’s a better way to support your goals and theirs. Separating emotional pressure from the actual problem leads to clarity.

Mental Time Travel

Another powerful insight from the book encourages us to slow down and consider the perspective of our future selves, a form of ‘mental time travel’ that can lead to better decisions.

To travel forward in time ask yourself:

“What would future me wish I had done?”

“How will this decision feel in 10 days, 10 months or 10 years?”

These questions help you avoid impulsive or rushed choices, a real risk when retirement brings a flood of new freedoms and decisions.

High Stakes vs Low Stakes

Parrish recommends spending more time on decision-making when the stakes are high, and less time where they’re low.

Said differently, when the cost of a mistake is high and irreversible, move slow. When the cost of a mistake is low and easily reversible, move fast.

Examples:

High Stakes “Irreversible” Decisions (e.g., when to take Social Security or whether to sell a business) deserve careful thought and deliberate planning.

Low Stakes “Reversible” Decisions (e.g., which airline credit card to use or whether to try a new budgeting app) are best handled quickly, saving time and mental energy.

[Related Resource]: Download our handy budgeting worksheet.

Retirement Decision-Making Checklist

Before making final retirement planning decisions, ask yourself these questions:

  • What problem am I really trying to solve?
  • What does success look like and what would I regret?
  • What assumptions am I making?
  • What could go wrong? Have I planned for it?
  • Is there a way to split this decision into smaller, more manageable parts?
  • Am I being reactive, or thinking clearly and long term?
  • What would future me wish I had done?
  • What are the hidden opportunity costs?
  • If you say yes, what are you saying no to (and vice-versa)?
  • And then what?

Diving Deeper: What Could Go Wrong?

If markets experience a prolonged downturn, a job loss occurs or family needs change, how is your financial plan impacted?

Parrish urges us to prepare for setbacks before they happen.

We couldn’t agree more!

In our world, that might mean:

  • Estimating a spouse’s death impact on Social Security benefits.
  • Keeping income sources diversified.
  • Preparing for income disruption (e.g., disability).
  • Running “what-if” simulations to stress test your plan.
  • Setting aside a buffer for unexpected expenses.
  • Updating insurance coverage regularly for adequate protection.

These kinds of safeguards allow you to spend confidently, knowing your retirement can weather a few storms.

Retirement planning and financial well-being thrive on clear thinking.

We recently wrote more about this mindset in our articles:

> How to Spend Confidently Without Regret in Retirement

> 3 Steps To Help Your Money Outlive—You (Describes the financial guardrails we use to stress test your retirement portfolio.)

As an aside, we spend a tremendous amount of time asking: What could go wrong, and have I planned for that?

This approach is key to managing uncertainty within your portfolio.

–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: Amazon: Clear Thinking: Turning Ordinary Moments into Extraordinary Results, https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112

AI Is Booming, Diversification Matters

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For a while now, we’ve been hearing how artificial intelligence (AI) is reshaping the investment landscape.

Much of the growth has come from a small group of stocks; specifically, the Mag 7: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.

Their recent performance has been remarkable, driving an outsized share of the S&P 500’s gains.

Here’s a look at the Mag 7’s performance since the 2025 market low in early April:

Alphabet (Google): 23.43, Amazon: 27.51, Apple: 17.54, Meta Platforms (Facebook, etc.): 37.60, Microsoft: 32.82, Nvidia: 49.49, Tesla: 46.98 — (Source: Morningstar, reported on 6/16/251)

Still, with so much riding on so few companies, market concentration is a real concern.

While AI presents exciting growth opportunities, it’s important to diversify within the AI sector itself, beyond just the largest players. This helps capture a broader range of innovation and mitigate risk.

For Example:

Diversification could include niche players and startups focused on AI in healthcare, finance, robotics and cybersecurity, or hardware manufacturers supporting data center expansion for AI workloads.

What’s more, you can diversify based on customer adoption cycles, e.g., AI in logistics or biotech may ramp up at different times than AI in social media or e-commerce.

Your Portfolio & Diversification

One of our key roles is to help ensure your portfolio isn’t overly reliant on any one company or sector. We stay diversified by spreading across industries, incorporating global opportunities and maintaining a mix of stocks, bonds and alternatives (e.g., real estate funds) to manage risk and support long-term growth.

Also, we review 20-to-30 accounts daily, adjusting holdings to maintain target asset allocations. This helps ensure your portfolio is aligned with your investment goals and market conditions.

To learn more, read our investment philosophy statement: A Disciplined, Research-Driven Approach to Investment Success.

Related: We discussed the Mag 7 earlier this year in our post: S&P 500 Shifts From Home Runs to Singles and Doubles.

–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: Morningstar, These Are the Best Mag Seven Stocks to Consider for AI Investing, https://www.morningstar.co.uk/uk/news/266066/these-are-the-best-mag-seven-stocks-to-consider-for-ai-investing.aspx

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

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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

Top 2025 Summer Travel Spots & Average Costs

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Summer is officially here—and for many of us, that means travel plans are heating up.

More than 2 in 5 Americans (44%) plan to take a vacation this summer that involves a flight or hotel stay, with an average trip cost of $3,861, according to NerdWallet’s annual summer travel survey.

That’s about 117 million Americans, spending roughly $452 billion on flights and hotels this summer.1

Where’s everyone going?

Seattle is the top domestic destination for Americans, and Cancun leads internationally, according to travel insurance provider Allianz Partners. Most are staying closer to home, with 71% of itineraries booked for U.S. travel and 29% for international trips.2

Overall, Americans are headed to both big cities and relaxed beach towns.

Source: Allianz Partners

Top 10 Domestic Locations

Ranked by popularity, the top domestic destinations for summer 2025 are: Seattle; Orlando; New York; Honolulu; Kahului, Hawaii; Boston; Portland, Oregon; Las Vegas; Los Angeles; and Anchorage, Alaska.

Internationally, the top destinations include:

Cancun; San Jose del Cabo, Mexico; London; Punta Cana, Dominican Republic; Montego Bay, Jamaica; Calgary, Canada; Oranjestad, Aruba; Paris; Puerto Vallarta, Mexico; and Dublin, according to Allianz Partners.

It’s always interesting to see the trends.

Remember, before booking, check travel advisories on the CDC Travelers’ Health3, TSA.gov4 and U.S. Department of State5 websites.

–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: Nerd Wallet: 2025 Summer Travel Report, https://www.nerdwallet.com/article/travel/2025-summer-travel-report

2: Allianz Partners: Beaches and Big Cities Remain the Top Travel Destination for American Summer Travelers, https://www.allianzworldwidepartners.com/usa/media-center/press-releases/Beaches-and-big-cities-remain-the-top-travel-destination-for-American-summer-vacations.html

3: CDC Travelers’ Health: https://wwwnc.cdc.gov/travel

4: Transportation Security Administration: https://www.tsa.gov

5: U.S. Department of State: https://travel.state.gov/content/travel/en/traveladvisories/traveladvisories.html/

Planning Your Final Days of Work Before Retiring

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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