financial planning Archives

How Your Mindset Affects Financial Decisions in Retirement

Shawn Glogowski on January 14, 2026

How fear and habits can hold retirees back, and how a financial planner can help you spend with confidence.

A recently retired client told me they were finally ready to take the trip they’d been talking about for years.

As we discussed flights, they casually mentioned they’d fly economy to save on airfare. It wasn’t hesitation, but habit.

I pulled up their plan and walked them through the numbers. They had saved. They had prepared. They had done exactly what they were supposed to do.

So I said, “You can take the trip. And you can fly first class.”

They laughed at first. Then they paused.

Because for many people, the hardest part of retirement isn’t understanding the math.
It’s trusting yourself to spend after decades of saving.

Money Is Emotional Whether We Admit It or Not

We like to think financial decisions are purely logical, but money is shaped by far more than numbers.

It’s influenced by years of habits, responsibility, and the stories we tell ourselves about safety and security. For most of adulthood, the goal is simple: save, be careful, and prepare for the future.

When retirement arrives, the rules quietly change. The paycheck stops, but the saving mindset doesn’t. And that’s where many people get stuck. The goal in retirement is to be able to spend the money you worked so hard to earn.

The Fear That Follows Us Into Retirement

Even with a solid plan in place, a common question surfaces:

What if I run out?

This fear can influence decisions in subtle ways by choosing discomfort over ease, delaying experiences, or living more cautiously than necessary. Not because the numbers demand it, but because the mindset hasn’t caught up.

When fear drives decisions, retirement can look responsible on paper while feeling smaller in real life.

Aligning the Plan and the Person

The goal of financial planning isn’t just to make money last.

It’s to help people live well with the money they’ve earned.

That means aligning the plan with the person. It’s helping clients shift from accumulation to intention, and from caution to confidence.

My role as an advisor goes beyond building a plan. It’s helping clients trust it when it’s time to live it.

Because you didn’t save all these years just to get by.
You saved so you could live comfortably and enjoy life to the fullest.

Sometimes the most meaningful part of hiring a financial planner isn’t just preparing for the future. It’s having someone give you the peace of mind to help you step into the future with confidence.

Shawn C. Glogowski, CFP®, is Principal and Co-Owner at Note Advisors, LLC, where he serves as a CERTIFIED FINANCIAL PLANNER™. He works closely with clients to design, implement, and oversee comprehensive financial plans tailored to their unique goals. Shawn is passionate about meeting clients where they are and providing clear guidance on investment, tax, retirement, and estate planning strategies to help them make confident decisions for their future.

Connect with Shawn on LinkedIn for insights on financial planning topics.

Why Every Retiree Needs a War Chest

Mario Riccadonna on December 3, 2025

Murphy’s Law is the adage that “Anything that can go wrong, will go wrong,” and usually at the worst possible time.

There’s a retirement version of this, too: “The day you retire, the market will drop 20–30%.”

It’s not always literally true, but ask anyone who retired in 2000, 2008, or early 2022, and they’ll tell you that it sure felt like it. After decades of saving, the moment you finally start spending, the markets seem to turn against you.

That fear is real. But instead of trying to time the market (which no one can), the solution is to prepare for downturns with what we call a retirement war chest.

What is a War Chest?

A war chest is a 5–7 year bucket of cash and bonds that you maintain throughout retirement.

Think of it as a self-funded pension. No matter what the stock market does, you know you can cover your expenses for the next several years.

Why 5-7 years? History shows that’s usually enough time for markets to recover from even the worst downturns.

Take 2008. The S&P 500 lost nearly 37% that year. Painful. But what if you had 5 years of living expenses set aside in cash and bonds? You wouldn’t have been forced to sell stocks at the bottom.

By 2012, were we out of it? Yes… for the most part. While the market didn’t reach its pre-crash peak until early 2013, by 2012 the S&P 500 had climbed back significantly. In fact, from the March 2009 bottom through 2012, the S&P 500 gained over 100%.

In other words, by 2012, we were through the thick of it. A retiree with a war chest could have safely lived off that bucket while letting their stock portfolio heal.

Here’s a 5-year chart from that time period from Bloomberg as a reference:

So, how do you build a War Chest?

Figure out your spending needs
Example: $100,000 per year
Multiply by 5-7 years
That means setting aside $500,000-$700,000 in a mix of cash, CDs, and bonds
Keep the rest invested for growth
Your remaining portfolio stays in the stock market, giving you the growth needed for a decades-long retirement
Replenish as you go
In good years, refill the war chest by trimming gains from your stock portfolio. In bad years, let the bucket carry you until the markets recover.

The Psychology Bonus

This isn’t just about numbers, it’s about peace of mind. When you know your next 5–7 years of income are covered, market downturns feel less scary. You don’t feel forced to sell at the wrong time. You don’t panic. And you give your long-term investments the time they need to bounce back.

The Bottom Line

You don’t need to predict when the next downturn will happen. You need to be prepared for it. By building and maintaining a 5–7 year war chest, you can retire confidently—even if Murphy’s Law shows up on your first day of retirement.

The goal isn’t just financial security. It’s peace of mind so you can stop worrying about market headlines and start enjoying the retirement you’ve worked so hard to create.

Ready to build your War Chest?

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No portion of this commentary is to be construed as the provision of personalized investment, tax or legal advice. Please consult with the appropriate professionals for advice that is specific to your situation. Note Advisors, LLC can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.

How to Take Money Out of Your IRA Completely Income-Tax Free

Mario Riccadonna on November 13, 2025

The Power of Qualified Charitable Distributions

When you’ve saved diligently for decades, the last thing you want in retirement is to watch your hard-earned nest egg get eaten away by taxes. If you’re charitably inclined, there’s a powerful tax planning tool available to retirees that can allow you to support the causes you care about and reduce your tax burden: the Qualified Charitable Distribution (QCD).

Let’s unpack what it is, why it matters, and how you can use it to take money from your IRA completely income-tax free.

What is a Qualified Charitable Distribution (QCD)?

A QCD allows individuals aged 70½ or older to donate directly from their IRA to a qualified charity. Instead of taking money out of your IRA, paying taxes, and then writing a check to charity, the funds go directly from your IRA to the nonprofit.

Age requirement: You must be at least 70½.
Annual limit: Up to $100,000 per year, per person, can be donated.
Eligible accounts: Traditional IRAs (not 401(k)s or other plans, unless rolled into an IRA first).
Qualified charities: Must be 501(c)(3) organizations (not donor-advised funds or private foundations).

The key benefit? The amount distributed is not reported as taxable income on your return.

Why QCDs Are So Valuable in Retirement

At first glance, you might think, “Well, I already donate to charity, why not just deduct it?” But here’s why QCDs can be much more powerful:

They Work Even If You Don’t Itemize:
Most retirees take the standard deduction. If that’s you, a QCD gives you tax credit for charitable giving that you wouldn’t otherwise receive.

They Reduce Required Minimum Distributions (RMDs):
Depending on your birth year at age 72, 73, or 75, the IRS requires you to start withdrawing from your IRA. These withdrawals are fully taxable as ordinary income. QCDs count toward your RMD, but they’re excluded from taxable income.

They Lower Adjusted Gross Income (AGI):
Unlike a normal charitable deduction, which reduces taxable income only if you itemize, a QCD reduces your AGI directly. Why does that matter? Lower AGI can reduce:

-The taxable portion of your Social Security benefits.

-Medicare IRMAA surcharges (the extra premium charges on Parts B & D).

-Phaseouts for other deductions and credits.

The Power of a QCD in Action

Let’s look at an example of how this works. Let’s say you’re 74 years old with $2 million in a traditional IRA. Your RMD for the year is about $78,000. You also typically give $20,000 a year to your church and a local hospital foundation.

Option 1: Traditional Giving

You withdraw the $78,000 RMD.
You owe income tax on the full $78,000 (let’s say ~24%, or $18,720).
You write a $20,000 check to charity.
Since you take the standard deduction, you don’t get any tax benefit for your giving.

Option 2: Using a QCD

You direct $20,000 of your RMD to the charities as a QCD.
That $20,000 never hits your tax return as income.
You only report $58,000 of taxable income instead of $78,000.
That lower AGI could potentially reduce and shadow tax (i.e. Medicare premiums or the amount of your Social Security subject to tax)

Result: You supported the same charities, but you saved $4,800 in taxes simply by changing how the gift was made.

Common Mistakes to Avoid with QCDs

Don’t withdraw first. The money has to go directly from your IRA custodian to the charity. If you take possession, it’s taxable.
Don’t wait until December 31st. Processing times can get messy, and if it’s not completed in the calendar year, it doesn’t count.
Don’t use QCDs for donor-advised funds or private foundations. They don’t qualify.

Don’t forget to tell your tax preparer. IRA custodians report distributions on Form 1099-R without showing which were QCDs. If you don’t flag it, your return may show the full distribution as taxable.

Who Should Consider QCDs?

QCDs are especially valuable if:

You’re charitably inclined and already give annually.
You’re 70.5 or older.
You want to reduce Medicare IRMAA surcharges or taxes on Social Security.
You take the standard deduction and wouldn’t otherwise benefit from charitable contributions.

Final Thoughts

Qualified Charitable Distributions aren’t just about giving, but about giving smarter. They allow you to align your wealth with your values, while also reducing one of the largest expenses in retirement: taxes. If you’re over 70½ and have a traditional IRA, QCDs could be one of the most tax-efficient strategies available to you. Whether you’re giving $5,000 or $100,000, it pays to be intentional about how you give.

Learn more about how to save on taxes before year-end by scheduling a call with us!

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Retirement Income Guardrails: Spend Without Fear

Mario Riccadonna on October 24, 2025

Rethinking the question most people ask as they approach retirement.

When most people approach retirement, the big question they ask is:
“How much can I safely spend each year without running out of money?”

It’s a fair question. But it’s the wrong one.

A better question is:
“How do I set up a system that lets me spend confidently today, while giving me permission to adjust when—not if—markets (or life) throw me a curveball?”

That’s where retirement income guardrails come in.

What are retirement income guardrails?

Think of guardrails on the highway. They don’t dictate the exact lane you have to drive in—but they keep you from veering too far off course.

Retirement guardrails do the same thing for your spending. Instead of sticking to a rigid number year after year (say, the famous “4% rule”), guardrails allow you to take, on average, a higher withdrawal rate—so long as you make small adjustments when needed.

This flexibility is powerful because retirement isn’t a straight, predictable road. Markets go up and down, expenses change, and unexpected events happen. Guardrails help you adjust without losing your overall sense of direction.

Guardrail rules in practice

One of the best-known systems comes from Jonathan Guyton and William Klinger, who studied “dynamic withdrawal strategies.” Here’s the gist:

You start with a base withdrawal rate (say 5.4% of your starting portfolio).
You increase that withdrawal for inflation each year—unless the market gives you a reason not to.
Guardrails kick in when your withdrawal rate drifts too far from the original target.

For example:

If withdrawals climb above 6.5% of your remaining portfolio, you cut back.
If withdrawals drop below 4.3%, you give yourself a raise.

It’s not about following a strict formula—it’s about setting clear boundaries. Guardrails only work when the underlying portfolio is built and managed correctly. A portfolio that is too conservative won’t generate enough growth to recover when markets rebound. On the other hand, a portfolio that is too aggressive won’t provide a large enough “war chest” of stable assets to carry you through downturns—potentially forcing you to sell equities at the worst time.

Dynamic vs Static Withdrawals

Static Withdrawal Strategy = “Set it and forget it.” You pick a number (like 4% of your initial balance) and keep spending it, regardless of what markets do. Simple, but it can leave you with too much unspent money—or risk running out if markets turn south early.

Dynamic Withdrawal Strategy = “Adjust as you go.” You spend freely in good years and tighten up in tough ones. The tradeoff? Slightly less predictability, but much more security and flexibility.

Which one feels more like real life? (hint, hint: Dramatic)

A $2 Million Portfolio Example

Scenario 1: 4% (Pre-tax) Withdrawal Rate

That’s about $80,000 annually from a $2M portfolio.
With inflation adjustments and normal market conditions, research shows this level of spending is very sustainable. But can we achieve the same outcome (not running out of money) while spending more?

Scenario 2: 5.4% (Pre-tax) Withdrawal Rate

That’s about $108,000 annually from a $2M portfolio—$28,000 more per year than the standard 4% rule.

Can it work? Yes—with the proper portfolio structure and management

In a recession, you might cut back to $97,200 (a 4.86% withdrawal rate). Notice that’s still higher than the 4% rule based on the starting portfolio.
When markets are strong, you have the opportunity to give yourself a raise. For example, if your $2M portfolio grows to $2.5M, you could increase withdrawals to $118,800.

The real danger isn’t starting at $108k. The danger is insisting on that number no matter what happens.

Income Guardrails Sample strategy showing portfolio income potential

The Behavioral Side: Why this Works

Retirement isn’t just math—it’s psychology.

One of the biggest fears retirees face is running out of money. Ironically, that fear often leads to underspending. Many sacrifice enjoyment in their 60s and 70s—when they’re healthy and active—just to preserve a cushion for their 90s.

Guardrails solve this problem because they give retirees permission to spend:

You know what your “lane” is.
You know you have room to go faster when markets are kind.
You know you’ll slow down when things get rocky.

That flexibility builds confidence. Instead of feeling like you’re walking a tightrope, you feel like you’re driving with a sturdy guardrail system in place.

The Bottom Line

Instead of obsessing over the “safe withdrawal rate,” focus on creating a guardrail system that works for you.

Start by figuring out your initial withdrawal rate.
Build in guardrails that trigger adjustments if spending drifts too far.
Make sure your portfolio is structured appropriately. Guardrails don’t work for every portfolio. If you’re unsure whether your portfolio is set up to support a higher dynamic withdrawal rate, please reach out to us—or your financial professional—for guidance.
Give yourself permission to enjoy the wealth you’ve worked so hard to build.

Because retirement should feel less like a tightrope walk and more like a road trip where you know the path is safe, even if you need to steer around a few potholes along the way.

Feel like you could use sturdier guardrails before you retire?

Schedule a call

Financial Planning vs Investment Management: Why You Need Both

Shawn Glogowski on September 23, 2025

When people think about working with a financial advisor, the first thing that often comes to mind is investment management. While managing your portfolio is an important piece of the puzzle, it’s only one part of building lasting financial security. I always say it is hard to create a solid investment plan without a holistic financial plan. To create a strategy that works in every season of life, you need both working hand in hand.

What’s the Difference?

Investment Management focuses on how your money is invested, including asset allocation, risk management, rebalancing, and performance monitoring. It’s about growing and protecting your wealth in line with your risk tolerance and goals. When it comes to investments, it’s not what you earn but what you get to keep. That’s where a good, holistic plan comes into play.

Financial Planning takes a broader view. It examines your entire financial picture, including income, expenses, taxes, retirement savings, estate planning, and more. A financial plan doesn’t just answer “How should I invest?” but also “Am I on track for the future I want?” My job is to get to know you and your situation to help you make educated decisions that are in line with your goals. A good financial plan will show you the ripple effect of those decisions 5 or 10 years down the road.

Why You Need Both

Relying solely on investment management can leave gaps. Even the best-performing portfolio won’t help if it isn’t aligned with your retirement timeline, tax strategy, or estate plan. On the other hand, having a plan without strong investment management may limit your ability to achieve long-term growth.

Together, financial planning and investment management create a holistic strategy. Your plan guides your investments, and your investments power your plan. It’s a continuous cycle of setting goals, monitoring progress, and adjusting along the way.

Fall: The Perfect Time for a Review

As the seasons change, it’s the ideal moment to step back and take stock of your financial picture. A Fall review with your advisor ensures you’re on track before year-end deadlines arrive. Key topics often include:

Reviewing tax strategies before December 31
Checking 401(k) and IRA contributions
Considering Roth conversions
Updating income, expenses, and charitable giving plans
Ensuring investments are aligned with both your plan and market conditions

The Bottom Line

Financial success doesn’t come from a single action—it comes from integrating smart investments into a comprehensive plan. By bringing both sides together, you’ll not only stay on track for your goals but also head into the new year with confidence and clarity.

Connect with Shawn on LinkedIn for insights on financial planning topics.

Are You Really “All Set”?

Tom Waring on November 30, 2020

“We’re all set”

This simple three-word phrase is one I’ve heard throughout my career, in instances that often stick in my mind. One of those relates to a couple I worked with for more than 20 years. Early on, I provided the husband with financial advice about an insurance policy, which he then purchased. Sadly, he subsequently contracted an illness that caused him to become disabled for the remainder of his life.

As I do with all clients, I attempted to get back together with the couple for an annual review of that policy, and the details of how it worked. More often than not the appointments were scheduled and cancelled as “unnecessary,” with the wife always concluding, “We’re all set.”

This year the gentleman passed away. His widow contacted me to ask if I could provide her information on his life insurance beneficiaries. When I shared the information, she was shocked. She indicated that she and her husband had modified their wills to ensure select individuals they had originally noted as beneficiaries on the policy would not receive any proceeds.

I advised her that since such a policy is a separate contract with the insurance company, changing their wills did not change the beneficiary designations. I explained that unless an insurance contract is modified, the policy is paid out according to the original terms.

At that point, the widow became upset, saying her husband would be rolling over in his grave if he knew the amount of money that would be going to certain beneficiaries. She said she understood that she and her husband had cancelled a number of appointments with me and clearly they were not as “set” as they both thought.

I advised her that I was sorry but, as difficult as it was to watch it unfold, the proceeds were being paid out exactly as they had been written. In the end, it was an expensive and painful lesson for this woman about the consequences of not being “all set.”

Medical professionals require an active relationship with their patients in order to establish and maintain a baseline of their health. Without that baseline there is no reference for how much a patient has changed, how their current health varies from “normal”, or how to ensure their ongoing wellness.

The same is true for financial professionals.

Without a baseline understanding of a client’s personal and financial situation and a game plan for the future, advising is often nothing more than business transactions that sometimes include opportunistic purposes to sell products to a client without clear objectives.

Today, professionals in every field are recognizing the risks of advising “we’re all set” clients; those who don’t proactively participate in the planning process. They are also facing increased liability costs of attempting to advise reactive individuals in today’s litigious society. Many are notifying such clients of non-compliance and pruning them from their client/patient lists. Not a great place to find yourself when you need professional help and realize you are not “all set,” not insurable, not prepared for retirement, not liquid and not protected by any kind of safety net or parachute.

The next time you’re inclined to dismiss a professional who is trying to serve you and maintain an active relationship, think twice. Agree to meet with them and keep that appointment. Maintain your baseline. Let your professional lead you through their established processes and provide you with proven solutions. Make sure that ultimately, when you say those three little words, you really are, “all set.”