The United States is home to nearly 170 million women, with about 3.5 million of them living in Arizona. Not every woman will face identical retirement savings challenges, but there are some hurdles women are statistically more likely to experience.

Most people would not describe living a long life as a bad thing – and no one should have to. Unfortunately, many retirees do find themselves outliving their retirement savings. Although life expectancy averages do change slightly from year to year, women, on average, live between five and six years longer than men.

This is far from uniform, and there are many health and lifestyle variables that can influence an individual’s life expectancy.

However, from a retirement savings perspective, women are more likely to face additional years of healthcare costs and living expenses, as well as more years of inflation that might reduce the purchasing power of their retirement savings.

The gender pay gap stems from a variety of sources. Data suggests that even today women earn an average of 82 cents for every dollar earned by men. The disparity in lifelong earnings is reflected in retirement savings and lower Social Security income. Like life expectancy, the gender pay gap is far from uniform, and the extent to which a woman is affected by it will depend on their educational attainment, lifestyle, time in the workforce and family situation.

One of the primary causes of the gender pay gap is career interruptions. Women are more likely to take time off work to fulfill necessary caregiving responsibilities after they have children. They are also more likely to care for aging parents or other family members with special needs, which can have the same career-interrupting effects. Career interruptions lead to lost wages, lost opportunities for career advancement and promotions, and ultimately, reduced retirement contributions and Social Security income.

Women who handle caregiving responsibilities for their household or a family member must often pursue part-time rather than full-time employment. Such jobs are less likely to offer retirement planning benefits like employer-sponsored retirement plans or matching contributions. Even if these plans are available, women may contribute less or not be able to afford to make full use of available matching funds.

Social Security is based on a worker’s highest 35 years of earnings. All of the above factors can potentially result in a lower lifetime Social Security income. This can be particularly difficult for women who are single, divorced or widowed and don’t qualify for a survivor benefit from their spouse.  

Longer life expectancy and higher healthcare costs are invariably linked. People typically require more healthcare services as they age, and even healthy women may have higher lifetime medical expenses than a less healthy spouse they may outlive by five or six years. This can be doubly true if they require long-term care or memory care during their final years.

Although vital, housing and care in those facilities represent some of the most resource-intensive retirement expenses.

Women are more likely to experience negative financial repercussions from either divorce or widowhood, both of which can have serious retirement savings implications. Divorce may result in the division of retirement assets. Alternatively, depending on the details of the divorce or any premarital agreements, a woman might receive alternative assets of equal value in lieu of a couple’s existing retirement savings at the time of divorce.

There are many divorce scenarios that, when combined with the other income and Social Security-limiting factors, can make achieving financial stability in retirement much more difficult.

How a couple decides to take their pension or Social Security can also have serious consequences for widows. Products like single-life annuities that only provide payment for the life of the holder, annuities with low survivor percentages, or having no survivor benefit, can leave widows with drastically reduced income after the death of their spouse.

When Social Security is claimed can have far-reaching implications. For example, if a higher-earning husband claimed Social Security early, reducing both his current benefit and survivor benefit, his widow could see a reduction of 25 to 30 percent after his passing.

There are a number of steps the higher-earning spouse can take to maximize the survivor benefit for their spouse, but it does require planning to execute properly.

Are You and Your Spouse Thinking About All Potential Future Scenarios?

These may not be comfortable topics for couples to discuss, but these variables are important for planning your financial future. Reach out today to 

Retirement Savings Difficulties Facing Women

There are many potential strategies retirees can utilize to safeguard their retirement savings while also maintaining an adequately liquid fund to cover unexpected costs that might arise due to emergencies.

Having a liquid emergency fund, like a savings account or money market fund, of between six and 12 months of living expenses can provide financial protection from the unforeseen. It can prevent a situation where the retiree needs to sell investments or tap into some accounts earlier than they initially planned.

Keeping different “buckets” of assets can help retirees maintain funds for immediate and short-term needs while preserving low-risk investments and more growth-oriented accounts for long-term sustainability.

The short-term bucket would typically include cash and cash equivalent accounts, including an emergency fund and enough cash to cover living expenses. A medium-term bucket may include the more conservative investments like CDs, bonds or bond funds. These types of assets are relatively safe and stable while still sustaining some growth. They can also be liquidated relatively quickly in an emergency if unexpected expenses arise that can’t be covered by an existing emergency fund.

The longer-term bucket can include more growth-oriented investments, like equities and ETFs, that adhere to whatever risk level a retiree is comfortable with maintaining.

Going into retirement with separate buckets of assets may provide a sustainable balance that gives retirees peace of mind without sacrificing portfolio growth altogether.

There’s more to withdrawal strategies than simply making required minimum distributions (RMDs). Several concerted strategies can potentially be leveraged to help promote sustainable spending and portfolio protection during retirement.

The guardrail strategy can be effective, but does require active monitoring and management. It typically entails adjusting withdrawals from retirement accounts based on the portfolio’s performance, such as increasing the withdrawal rate if the portfolio’s value grows beyond a set threshold. Conversely, a drop below a set threshold may justify a reduction in withdrawal amounts to prevent accelerated depletion. This can be especially attractive due to the understandable desire of retirees to avoid selling investments that might regain their value if market conditions improve in the future.

Retirement savers may also want to learn about different dynamic spending rules. These strategies typically include adjusting withdrawals based on both market performance and inflation. The goal is to pursue a withdrawal strategy that balances both considerations while preserving liquidity and preserving the portfolio’s value.

Some retirees also use the floor-to-ceiling method by deciding in advance on a minimum and maximum withdrawal rate. If returns are high, account holders can withdraw amounts closer to the ceiling. In years where market or portfolio performance is weaker, the saver can reduce withdrawals closer to the floor amount.

Some retirees may derive income from accounts or investments with different tax liabilities. For example, they may have a rental property, a Roth IRA, a brokerage account and a traditional 401(k). There are a variety of tax planning strategies that can help flatten liabilities during years when a retiree’s income spikes due to the sale of high-value property or investments.

Savers can also plan ahead and rely primarily on after-tax accounts or asset sales that require a lower capital gains rate rather than their normal income tax rate during high income years.

Individuals with complex or high-value assets may also benefit from consulting with a 

 on various credit or deduction strategies. For example, they may be able to claim losses or make charitable contributions to minimize their tax burden when it will have the greatest impact.

Helping Phoenix Retirees Balance Liquidity, Asset Protection and Growth

The financial advisors at Fullerton Financial Planning are committed to helping 

, investors and current retirees develop solutions tailored to their unique portfolio and financial situation. We understand the importance of maintaining peace of mind in retirement and strive to provide knowledgeable guidance based on your situation. Call us at (

Maintaining Adequate Liquidity to Cover Unexpected Needs and a Sustainable Spending Rate in Retirement

Asset protection trusts, which are usually irrevocable trusts, can be used to protect assets from creditors and legal judgments. The irrevocability is often crucial in this regard, as the grantor is essentially giving up their legal ownership of the assets to put them out of reach of creditors.

Arizona does permit the creation of Domestic Asset Protection Trusts (DAPTs), which allow the trust creator to also be the beneficiary.

Strict DAPT limitations and reporting requirements are enforced to prevent abuse of these specialized trusts. For example, Arizona DAPTs have a period in which creditors may be able to challenge transfers of funds into the trust in order to reclaim debts. If a creditor claim arises after the assets have been transferred into the trust and the waiting period has ended, they may not be able to reach those assets.

The structuring of these trusts can be complicated, and they aren’t available to everyone. In order to open an Arizona DAPT, at least one of the trustees is required to be an Arizona resident and maintain some assets in the state. Adherence to strict documentation and reporting requirements is vital to maintain the legality of the trust.

It is important to discuss your asset protection needs and trust formation plans with an estate planning attorney. They will be able to explain what a DAPT can and cannot do for you.

Timing Is Important for a DAPT to Be Effective

Domestic Asset Protection Trusts are not intended to be a reactive way to dodge legal judgments or creditors, which is why they have look-back periods in which transfers can be scrutinized and even reversed. Creditors can bring challenges, potentially even years after a DAPT’s creation, if they suspect a debtor or defendant in litigation sought to hinder, delay or defraud them through the creation of a trust.

DAPTs are designed to be established far in advance of any legal or creditor actions to offer proactive protection against future claims, lawsuits or bankruptcies. They’re a form of safeguarding assets from unforeseen future risks rather than immediate or short-term anticipated liabilities.

When Might Someone in Arizona Open a DAPT?

Any professional in an industry where malpractice insurance is required due to a high risk of litigation, like doctors and lawyers, might seek to pursue asset protection through a DAPT. These trusts can be an effective way to shield assets from unforeseen future malpractice claims or lawsuits.

People taking risks in a new business venture or those concerned with facing liabilities due to their business activities in the future may be able to shield their personal assets from claims arising from business bankruptcies, contractual disputes or other business dealings.

Individuals with a high net worth may want to protect their assets separately through a DAPT. The creation of a DAPT prior to marriage may also make the division of property in the event of a divorce more straightforward.

 DAPTs may be utilized as part of a broader estate planning strategy to ensure an individual’s wealth is preserved for future beneficiaries. A DAPT can also be used to protect assets from creditors in the future as well as regulate the disposition of assets to heirs to prevent irresponsible spending.

Financial privacy in wealth preservation: 

The structure of DAPTs can help shield some details of asset ownership and keep information out of the public record while also safeguarding future inheritance or earnings from unforeseen future threats.

Are Your Assets or Retirement Savings Being Properly Managed and Protected?

Safeguarding and growing retirement savings and assets can be extraordinarily complicated. There are many potential estate planning and asset management tools that can potentially be leveraged to meet your goals. The team at 

 can advise you on your options and help you understand which combination of 

 might help you reach your desired retirement and asset preservation destination.

What Is an Asset Protection Trust?

Employee Retirement Income Security Act (ERISA)

 protects 401(k)s from creditors after a bankruptcy. One of the provisions of the Act prevents creditors from liquidating your retirement savings. This usually applies regardless of the amount held in the account, meaning even high-net-worth individuals with large 401(k)s won’t have them seized and sold off to pay back creditors.

The ERISA does not explicitly extend to self-funded traditional and Roth IRAs. Instead, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) 

 as of 2023. This limit changes periodically, and there are additional rules pertaining to rollover IRAs.

 to extend the full bankruptcy protection of ERISA to IRAs as well. People filing for bankruptcy who are concerned about shielding their retirement savings from creditors should consult with a bankruptcy attorney to learn more.

Why Are 401(k)s Exempt From Bankruptcy Liquidation?

The ERISA was passed to safeguard employee benefit plans and beneficiaries. It primarily deals with imposing fiduciary responsibilities on plan managers and setting minimum standards to protect the interests of people who would rely on those funds in retirement.

The government has an interest in safeguarding these types of plans because it means people will be less likely to rely solely on the government for income and benefits in retirement. Ensuring those plans are a safe haven for assets, including providing some protections from creditors, helps accomplish this goal. 

The added protection against creditors can potentially lead to abuse, which is why there are contingencies built into ERISA’s bankruptcy protections. Retirement savings accounts cannot be legally used reactively to shield assets from creditors for the purpose of avoiding the repayment of debt.

The Exceptions for Retirement Savings and Bankruptcy Vulnerabilities 

There are two primary scenarios in which a bankruptcy filer’s 401(k) may not be protected under the ERISA. These are:

Who Determines Whether Contributions Were Excessive or Fraudulent Conveyance?

Bankruptcy trustees are typically responsible for examining the debtor’s actions leading up to the bankruptcy filing. If the trustee doesn’t notice discrepancies, but creditors find signs of excess contributions or fraudulent conveyance, they can raise objections in bankruptcy court.

The ultimate decision on whether either occurred is up to the bankruptcy court, which is responsible for examining evidence, the debtor’s alleged motives and determining whether retirement funds should be seized or exempted.

What About Funds Rolled Over From an ERISA Account Into a BAPCPA Account?

Technically, under federal law, funds rolled over from an account shielded by ERISA, like a rollover IRA, should continue to receive full ERISA protection rather than the more limited BAPCPA protection. However, it’s important to consult with a bankruptcy or tax attorney to understand the full implications and ensure actions aren’t interpreted to be fraudulent conveyance.

Exemptions, Withdrawals and Tax Implications

Legally shielding assets in bankruptcy can be complicated. Debtors filing for bankruptcy are required to thoroughly claim and document all the exemptions they seek to utilize. Mistakes can potentially leave some assets vulnerable to creditors.

Money that is withdrawn from an exempt retirement savings plan will no longer be protected by state or federal law.

Seeking to avoid bankruptcy by withdrawing retirement savings to cover debt could end up being counterproductive.

There can also be serious tax ramifications for early withdrawals. Before making any decisions regarding early withdrawals, it’s likely in your best interest to seek professional advice from a qualified bankruptcy lawyer.

Client-Centric Retirement Savings Guidance in Phoenix

Retirement savers in Phoenix who are seeking 

 services can speak with the financial advisors at Fullerton Financial Planning by calling 

. People in all types of financial situations deserve a secure retirement, and our advisors are here to help. 

Is Your 401(k) Protected in Bankruptcy?

The vast majority of income tax filers in the United States, regardless of their age, would prefer to minimize their tax burden. How you can go about maximizing deductions will vary based on your assets, income sources and your annual expenses.

There’s no straightforward, one-size-fits-all approach due to the diversity of financial situations among tax filers. Some Phoenix tax filers can afford large charitable contributions while others might have particularly high medical expenses due to a family illness or injury. Both types of tax filers may want to take advantage of itemized deductions to reduce their taxes, but how they go about it may be different.

Although the approach might vary, there are some high-level factors to keep in mind when you begin looking for ways to maximize tax deductions.

If your income fluctuates from year to year, it’s likely a good idea to keep an eye on your tax bracket and be cognizant of how close you may be to reaching a higher or lower marginal tax rate (the rate you’ll pay on your highest dollars of taxable income). Knowing where your income puts you may allow you to strategically plan your income and deductions to potentially decrease your tax rate for the current year or future years.

Have You Maximized Your Retirement Contributions?

Some workers may benefit from maximizing their contributions to pre-tax retirement savings accounts like 401(k)s or traditional IRAs. Contributions to these types of accounts reduce your taxable income, regardless of whether you end up itemizing deductions.

Although Roth IRAs and 401(k)s are not tax deductible and are funded with after-tax dollars, they do offer tax-free growth of invested funds, as well as the potential for tax-free withdrawals in retirement. Those who meet income eligibility requirements and are taking a long-term view on positioning themselves for a reduced tax burden in retirement may want to investigate these types of investments during their working years.

Consider Maximizing Health Savings Account (HSA) Contributions

While maximizing HSA contributions won’t be the best move for everyone, these tax-deductible accounts are similar to Roth retirement savings accounts in that they offer tax-free growth and tax-free withdrawals for any qualifying medical expenses.

How much you or your family will use HSA funds depends on your health insurance and medical needs. These accounts can be a useful way to minimize your taxable income if you know you’ll need to spend money on healthcare expenses, or you just want to make sure you’re prepared for the unforeseen.

Itemized deductions allow taxpayers to decrease their taxable income, which can potentially allow them to benefit from a lower tax bracket and marginal tax rate. Itemizing deductions is the alternative to the standard deduction, which is a fixed deduction amount that’s based on filing status. Itemized deductions require detailed tracking of eligible expenses throughout the year.

Although there are many potential itemized deductions, some of the more common include:

You might not know whether to take the standard deduction or itemize until closer to the end of the year, which is why it’s likely in your best interest to track any potential deductions throughout the year. Doing so may make it easier to decide when you start preparing your tax return. Keep in mind that itemizing requires good recordkeeping and organization, as you may need to substantiate your claims to the IRS.

While tax deductions decrease the amount of income subjected to taxes, tax credits reduce the amount of taxes you owe after they have been calculated. They provide a dollar-for-dollar reduction in tax liability in either a refundable or non-refundable form.

A refundable tax credit means that if what you owe goes into the negative, you can get the difference refunded, while non-refundable credits can only reduce your tax liability to zero.

Your preferred capital gains tax strategy may vary depending on your income sources, age and financial situation. Every taxpayer is assigned a short-term and long-term capital gains rate based on their income tax bracket. The short-term rate is the higher rate and is applied to any gains on assets sold less than a year after purchase.

Many taxpayers choose to hold onto investments for at least a year before selling to avoid the higher rate, but how you approach capital gains or investment loss harvesting may vary depending on your circumstances.

Get Guidance on Financial Planning, Investment Management and Retirement Planning in Phoenix

If you’re interested in finding ways to minimize your taxes or position yourself for a reduced tax bill in retirement, the financial advisors at Fullerton Financial Planning may be able to help. We make 

 and are ready to answer your questions and provide solutions. Call us at 

How to Reduce My Taxes and Maximize My Tax Deductions

While some aspects of life become simpler in retirement, taxes are not necessarily one of them. Determining whether you owe income tax on your Social Security Benefits and the amount you owe can require a bit of extra work. It’s one of the reasons why so many retirees turn to income tax preparers with experience assisting SS beneficiaries.

Before performing the calculations, tax filers need to ascertain their:

You can use that information to ascertain your “combined income.” Single filers with a combined income between $25,000 and $34,000 are required to pay income taxes on 50 percent of their Social Security benefits. Filers with combined income over $34,000 owe taxes on up to 85 percent of their Social Security benefits. Those with a combined income of less than $25,000 don’t owe income tax on any of their Social Security Benefits.

The income limits are slightly higher for married filing jointly beneficiaries. Couples with a combined income between $32,000 and $44,000 owe tax on 50 percent of their benefit while those with a combined income over $44,000 will need to pay taxes on up to 85 percent of their benefits. SS benefits typically are not taxable for couples with a combined income of less than $32,000.

Combined Income = Adjusted Gross Income + Non-Taxable Interest + Half of Social Security Benefits

To get your adjustable gross income, you need to add up all your income and subtract eligible adjustment deductions. Income categories may include:

Many adjustments are most commonly available to people who are still working, such as contributions to traditional IRAs, student loan interest or some of your self-employment taxes or health insurance. It may be in your best interest to consult with a tax planner for clarification if you’re not sure whether certain expenses qualify for inclusion in your adjusted gross income calculation.

Although non-taxable interest is not itself taxed, how much of it you earn does influence the combined income equation and, as a result, does have tax implications. 

Some examples of non-taxable interest might include:

If you have questions about the taxability of any of your interest earning holdings, or whether that interest should be calculated to reach your combined income, you should consult with an experienced accountant or tax preparer. 

Depending on your income streams, retirement savings and benefits, calculating your combined income may be complicated. Gathering all the relevant documents in advance, including your SSA-1099, 1099 forms for interest and dividends and any other income records, can make the process easier. A professional may also be able to identify relevant deductions that could potentially reduce your adjustable gross income.

It may be helpful to keep this calculation in mind when deciding whether to work in retirement or how to structure your income after you begin collecting your Social Security benefits. Your earnings through part-time jobs or freelancing could potentially increase your tax burden due to a higher combined income calculation.

Timing of income and distributions from retirement accounts as well as tax-deferred accounts like Roth IRAs may allow you to better modulate your combined income and have a positive influence on your Social Security benefits taxes.

Get Help With Your Social Security or Medicare Benefits Planning in Phoenix

? Are you interested in learning more about tax-advantaged Social Security Benefits or 

? The financial advisors at Fullerton Financial Planning are here to provide clarity and answers. 

Calculating Taxes on Social Security Benefits

The list depends on the account or property type as well as the attributes of your trusts and estate. Some assets and financial accounts of value are designed to automatically sidestep probate by going straight to named beneficiaries. This can include all types of retirement accounts, like IRAs and 401(k)s, as well as life insurance policies.

Although these types of accounts are designed to make the change in ownership seamless after the passing of the original holder, there may still be scenarios where it’s beneficial to name a trust as the beneficiary for tax purposes.

Vehicles – unless they’re collectibles or of particularly high value – are another example of assets that likely don’t need to be included in a trust. The speed with which vehicles depreciate makes them dissimilar from the types of assets stored in trusts, which typically have the potential to gain value over time.

Everyday personal property also doesn’t usually need to be put into a trust, like the books on your bookshelf (unless they’re collectibles) or your dishes and cutlery. The total value of those types of everyday items isn’t normally high enough to have tax implications and there’s less likely to be serious disputes over the distribution of this type of personal property.

In most cases, families struggle to decide what to do with this type of personal property rather than fight over who gets household items after a loved one’s passing. 

It’s best to discuss your unique circumstances with an estate planning attorney experienced with trust strategies before deciding exactly what should or shouldn’t be included in your trusts.

Why Trust Structure May Influence Your Decisions

The features of revocable and irrevocable trusts may influence your decisions regarding what types of property should be included in the trust.

Revocable trusts are those in which the grantor (the person who establishes the trust) can alter, amend or revoke the trust. In other words, they retain control over the assets and can essentially function as the trustee. A revocable trust may become irrevocable on the grantor’s death.

High-value personal property, like collectibles or art, real estate and investment accounts may be ideal assets for a revocable trust because they can pass to beneficiaries on the grantor’s passing without probate. The downside is that the continued control of the assets by the grantor means they are still considered part of their estate during their life, which can have negative tax implications.

Irrevocable trusts can’t be easily changed or revoked during the grantor’s lifetime. They essentially relinquish control over the assets placed in the trust, which can have tax planning, Medicaid planning and asset protection benefits.

Certain death benefits, like life insurance policies, can be removed from the grantor’s taxable estate via an irrevocable trust, as can other high-value assets.

Many assets you might not put in your typical revocable or irrevocable trust may fit better in a specialized trust. You might also want to use different types of trusts tailored to your family situation or personal long-term goals.

For example, you may establish a special needs trust if you have a child or dependent who has a disability. Assets held in the trust won’t affect the beneficiary’s eligibility for means-tested government assistance.

When Might It Be Necessary to Put Accounts With Named Beneficiaries Into a Trust?

While these accounts can often bypass probate thanks to having a named beneficiary, they are still considered part of the decedent’s gross estate. This means the government will calculate those assets when determining whether the estate is subject to estate taxes.

Life insurance typically isn’t taxed like income for beneficiaries, but the death benefit is still calculated into the decedent’s estate value. This can potentially be avoided with an irrevocable life insurance trust.

Retirement accounts are a little more complicated in that the proceeds will be subject to income tax for the beneficiaries. Whether the retirement savings account is a traditional IRA or 401(k) or Roth account will also influence the tax implication for beneficiaries, as accounts funded with after-tax contributions will still provide tax-free distribution (although specific disbursement rules often apply).

Consult With a Phoenix Estate Planning Expert and Financial Advisor on Your Trust Options

Our team at Fullerton Financial Planning work closely with 

 services to Phoenix retirement savers and 

If you’d like to learn more about our comprehensive retirement planning services, call us at 

Which Assets Should or Should Not Be in a Trust?

Which sectors are best for your investment dollars in 2024 will be highly dependent on who you ask and how the year progresses. If you have questions about how to optimize and diversify your portfolio in the upcoming year, it’s likely in your best interest to speak with experienced 

investment managers and financial advisors

There's continued interest in technology, particularly in the realm of generative AI. This sector includes companies developing and 

. The focus may shift from big tech companies to those specializing in growth sectors like semiconductors and hardware, as well as small and mid-cap companies that offer 

Many companies may also be forced to invest in improving things like cybersecurity and digital infrastructure to counteract greater bandwidth demand and the increasing capabilities of bad actors. 

 a strong candidate for investment, especially companies that provide essential services and equipment. Funding in the healthcare space is expected to return, particularly when it comes to medical equipment and analytical tools. There's also growing interest in companies involved 

 and medical tech advancements, as well as novel treatments for diseases like Alzheimer's​​​​.

 from an end to the Federal Reserve's hiking cycle or a decline in rates in 2024. This sector might see increased demand for rental housing, making companies involved in home leasing and apartment investments attractive​​​​.

Companies in the basic materials sector, which produce essential components used across various industries, could see growth as they come out of a 

. This sector includes firms specializing in chemicals, metals and other fundamental materials​​.

Traditional players in the semiconductor space, particularly those involved in memory and personal computing, are 

. Companies that produce industrial-type semiconductors could become leaders if 2024 leads to inventory corrections​​.

If the U.S. avoids a recession and achieves a soft landing, cyclical sectors like materials, industrials and consumer discretionary could lead. Conversely, if a recession occurs, defensive sectors like healthcare, utilities and consumer staples might be more favorable​​. Investors should be cautious when making assumptions when there are still many unknowns about the upcoming year.

Depending on how 2024 progresses, there could potentially be growth in the service sector. This could include industries like entertainment, hospitality and leisure, where consumer spending can significantly impact company performance.

Companies involved in the construction, engineering and maintenance of infrastructure projects could benefit from large investments in infrastructure in the United States and globally. This sector covers a range of activities from transportation infrastructure to urban development.

You may have seen the term “cardboard box recession” occasionally thrown around in 2023, as well as worries on how it may have been a forbearer of reduced consumer purchases (things typically shipped in cardboard boxes). Potential improvements in cardboard boxes may hint toward strengthening manufacturing companies in 2024, 

. As with all sectors, growth is never guaranteed, and it will be necessary to watch how the next year unfolds for manufacturing.

Economic Performance May Significantly Influence Your Preferable Course of Action

The best markets for your portfolio may change as 2024 progresses and economic conditions change. There are a variety of macroeconomic factors that influence the performance of different sectors, including things like consumer spending, inflation and interest rates. While 

 can influence these factors, only time will tell what is going to happen.

For instance, technology and consumer discretionary sectors might thrive if the economy continues to grow, while more defensive sectors like healthcare and utilities could gain favor in a slowing economy. It's also crucial to consider emerging trends, such as advancements in artificial intelligence or shifts in energy sources, which could impact specific industries.

Investors who manage their own portfolios will need to stay informed about these trends and consider how different sectors might respond to ongoing economic changes. This kind of sector analysis can be a valuable tool for making informed investment decisions and diversifying portfolios.

Providing Guidance for Retirement Savers and Investors in Phoenix

Whether you’re a retiree, nearing retirement or busy with everyday life, closely following the health and performance of sectors and making quick, informed decisions might not be the way you prefer to spend your time. Making big investment decisions can have a significant impact on your future, and it’s often beneficial for investors to have an informed and knowledgeable professional in their corner for assistance and guidance.

The team at Fullerton Financial Planning is committed to helping all types of investors navigate the uncertainties of 2024. Don’t hesitate to call us at 

 Investment Sectors to Watch in 2024 


Defensive Positioning and Early-Cycle Recovery

, adopting a more defensive portfolio position may be advisable for some investors. This could mean favoring fixed income rather than growth-oriented investments. Some sectors, like industrials, materials and healthcare, may provide long-term value and stability, especially in projects related to infrastructure development.

Diversification remains a crucial aspect of portfolio optimization. This includes diversifying across asset classes (like stocks, bonds, precious metals and cash) and within the stock market across different sectors, investment styles, company sizes and regional exposures. 

Certain investment options, like Exchange-Traded Funds (ETFs), may be an effective way to achieve diversification, especially for gaining regional exposure or for those building up a portfolio​​.

As economic conditions evolve in 2024, there could be a shift from defensive assets to those that typically outperform in the early stages of an economic rebound. This might include riskier equity classes and commodities, as well as locking in attractive long-term bond yields​​.

For qualified investors and some retirement savers, diversifying into alternative investment strategies like defensive hedge-fund and private capital strategies could be beneficial. These investment vehicles may provide diversification during times of volatility in traditional equity and bond markets​​.

Adapting to Digital and Infrastructural Changes

The investment landscape is rapidly evolving with an emphasis on technological innovation and concerted investments into healthcare and infrastructure investments. It may be in your best interest to speak with an 

 to learn how your portfolio should adapt to these changes and whether they should be incorporated into your investment strategy​​.

Artificial Intelligence is playing an increasingly important role in shaping investment strategies. AI-driven insights are helpful in navigating from traditional mutual funds to active ETFs, identifying growth opportunities in cybersecurity and assessing the sustainability of investments​​.

Real Estate and Fiscal Policy Considerations

 may be nearing their end. The year and a half of rate increases and the potential 

 will continue to influence real estate dynamics and potential fiscal policy shifts. While there is optimism fueled by rate cuts, it should be combined with caution due to the inherent uncertainty of markets. 

What Do the Changing Conditions in 2024 Mean for Your Investments? 

Many retirement savers can benefit from being adaptable, staying informed about market trends and maintaining a diversified investment approach to navigate the challenges and opportunities in 2024.

 about inflation. This optimism is based on recent data showing a cooling of price spikes, leading to a projection of three rate cuts for 2024. The Fed's preferred inflation gauge, which rose three percent over the 12 months ending in October, is expected to fall closer to their two percent target​​ toward the end of 2023 and early 2024.

The anticipated rate cuts may be interpreted as a positive sign that the U.S. might overcome inflation without triggering a recession or a significant increase in unemployment. This outlook could be a potential boon for many investors and retirement savers, especially considering the economic challenges of the past few years​​.

The Fed has been pursuing a balancing act where they utilized rate increases to get inflation under control without causing a potentially avoidable slowdown. Although they haven’t yet reached their two percent target on the inflation gauge, and they haven’t entirely committed to a strategy of rate decreases, they do want to avoid causing an overcorrection and slowdown. 

There Are No Guarantees in the Market or Economy in 2024

There are a variety of competing narratives about what 2024 may bring for investors of all kinds. This level of uncertainty can make it hard for the average person to make well-informed decisions that aren’t driven by overexuberance over a single event or overcautious morosity about the state of the economy. 

 like those at Fullerton Financial Planning, can help ensure you continue to pursue an informed approach. Our experts are constantly apprised of changing conditions and optimize investment strategies to maintain the preferred level of growth potential and risk reduction for every retirement saver and investor, whether they are looking for aggressive growth or defensive wealth preservation. 

 to speak with a financial advisor today. 

 Why You Should Look at Optimizing Your Portfolio for 2024

The transition from private or employer-provided health insurance to Medicare is a pivotal juncture for people nearing or entering retirement. Many older Americans are understandably concerned about their continuity of care as they embark on this new life chapter.﻿

One of the most common questions asked by people looking at Medicare is whether they can continue seeing the same doctors. This is especially important if you like and trust your doctor and don’t want to change to a provider you don’t know. 

If your doctor doesn’t accept Medicare, then no, you likely won’t be able to keep your same doctor in retirement. The good news is many doctors do accept Medicare, especially if they often treat geriatric patients (those 65 years of age and older), so you likely won’t need to change your primary care physician.

Under traditional Medicare (Parts A and B), beneficiaries have the flexibility to see any doctor or healthcare provider who accepts Medicare without the need for referrals. Original Medicare’s open network is one of the key advantages of traditional Medicare.

Medicare Advantage is a bit more complicated. Since Part A and Part B are included in any Medicare Part C plan, you will be able to continue seeing any of your previous doctors as long as they accept Medicare. Whether you can continue seeing your dentist or optometrist will depend on whether they are in your Medicare Advantage plan’s network.

Medicare Part C plans are offered by private insurance companies approved by Medicare and may have more restrictive networks compared to traditional Medicare. If you really like your current dentists or other specialists, be sure to ask them which networks they accept before you enroll in a Medicare Advantage plan.

It's important to review the specific plan details or contact the plan provider to understand the network limitations. Some doctors may only accept Medicare plans under certain conditions or may not be accepting new Medicare patients.

Beneficiaries should directly contact their doctors or use the 

 tool to verify if their providers are Medicare-approved.

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