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We believe financial education is indispensable. Having the right information can empower you to act with clarity and confidence, and to ultimately live a more intentional and meaningful life.
The FIA: A Tool for Overcoming Perceived SPIA Deficiencies
The following content is adapted from the book Tax-Free Income for Life by David McKnight. In this article, I want to address the topic of single premium immediate annuities (SPIAs). In past writings, I shared how the SPIA is an effective solution to address longevity risk and that it offers multiple benefits around lifetime income in retirement. I’ve also written about why so few Americans take advantage of the SPIA solution: lack of liquidity, lack of an inflation hedge, and the Mack Truck Factor. In this article, though, I’ll share how insurance companies have reacted to these three chief […]
Understanding Sequence-of-Return Risk and Longevity Risk
If you’ve read our previous articles, you know the Hanson Wealth Management team believes strongly in the power of financial education. Our mission with today’s topic is to educate you about several very real risks threatening to undermine your retirement outlook. Of course, we also want to empower you now, in the present, to take control of your financial future. Below, we share more content from David McKnight about a threat lurking in your portfolio — sequence-of-return risk — and the risk multiplier that makes it even more dangerous. As you read, take notes on questions you may have, […]
The Demographic Glitch That May Cause Your Taxes to Double
The Baby Boomer generation is well-known for being the product of the post-World War II baby boom, and for rejecting and redefining traditional values in many ways. However, did you know that the Baby Boomer generation also represents a “demographic glitch” in a way that is important to all of us? Allow me to explain.
Will an Oncoming ‘Tax Train Wreck’ Threaten Your Retirement?
At Hanson Wealth Management, we are committed to helping our clients achieve lives of meaning and purpose. What does that mean? Well, the specifics are different for everyone, but we believe every person’s strategy should include a comprehensive approach to financial planning. Most especially, it means having a retirement plan that takes into account the impact of potentially increasing taxes on your retirement distributions. Why is this so important? Well, to put it simply, there is a storm brewing that can put your retirement financial outlook in jeopardy: taxes are very likely to increase. In this article, we explain […]
Bring your Daughter to Work Day
We loved having a special guest in the office for Bring Your Daughter to Work Day! Lillian, Brian’s daughter, spent the day getting a behind-the-scenes look at what we do and quickly became part of the team. Lillian brought great energy and plenty of smiles along the way. Days like these are a great reminder of the importance of family and the opportunity to share what we do with the next generation—while making a few fun memories in the process.
Achieving the 0% Tax Bracket: How to Utilize Your ‘Taxable Bucket’
One of the foundational ideas in David McKnight’s Power of Zero philosophy is that future tax rates may be significantly higher than they are today. Rising national debt and growing entitlement programs may potentially impact retirees relying on taxable and tax-deferred accounts, possibly leading to higher income tax burdens in retirement. To prepare for that potential reality, one goal of tax-efficient retirement planning is to structure your finances so that your retirement income falls into the 0% federal tax bracket. While Roth IRAs and certain life insurance policies play key roles in this strategy, there’s another often-overlooked component that’s […]
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The Retirement Risk Trifecta You Need to Know About
David McKnight, in his Power of Zero series, outlines a compelling case for rethinking the way we prepare for retirement. One of his most urgent warnings centers on a trio of risks that have the power to unravel even a well-planned retirement. This “retirement risk trifecta”—tax risk, market risk, and long-term care risk—poses unique challenges that call for deliberate, forward-looking strategies. At Hanson Wealth Management, we help clients address each of these risks in a coordinated and thoughtful way. Let’s explore how these three threats interact, and how a Power of Zero-informed approach can help you respond proactively.
How to Pass Down Wealth Without Burdening Your Family
Planning to leave a financial legacy is often one of the most meaningful aspects of a retirement strategy. Yet, many families find themselves unprepared for the responsibilities that come with inherited wealth. Without proper planning, heirs may face unexpected tax implications, legal complications, or even internal conflict. That’s why it’s important to pass down wealth without burdening your family by using thoughtful strategies that align with your broader financial goals. At Hanson Wealth Management, we help retirees think beyond basic inheritance to craft legacy plans that are efficient, intentional, and designed to support long-term family success.
Why Estate Planning is About More Than Just a Will
When most people think about estate planning, they picture a will—one document that determines how their assets will be passed on. While a will is an important piece of the puzzle, estate planning beyond a will involves a comprehensive strategy that addresses more than just who inherits what. It’s about protecting your financial future, planning for unexpected events, and creating a legacy that reflects your values. At Hanson Wealth Management, we believe that a well-rounded estate plan can support your overall retirement strategy, especially when paired with forward-looking tax planning principles like those in the Power of Zero approach.
Staying Agile: Adjusting Your Retirement Plan in a Changing Economy
Retirement used to feel like a finish line—now it’s more of a pivot point. The economic landscape continues to shift with inflation, interest rate changes, and market volatility influencing how retirees draw income, manage taxes, and allocate assets. For many, adjusting your retirement plan in a changing economy is no longer optional—it’s essential. A retirement strategy designed ten or even five years ago may not be as effective today. Whether it’s due to market downturns, rising healthcare costs, or unexpected tax policy changes, the ability to adapt can make a significant difference in maintaining financial resilience over the long […]
Inflation and Your Retirement: Strategies to Maintain Purchasing Power
Inflation has always been a factor in financial planning, but for retirees, it takes on a more direct and lasting impact. Without the benefit of annual wage increases, those living off fixed or semi-fixed income sources may find that everyday expenses begin to feel heavier over time. That’s why understanding and implementing effective strategies to maintain purchasing power in retirement is essential. While inflation may be out of your control, preparing for it can help reduce its impact on your lifestyle, healthcare, and financial longevity.
The Rising Cost of Healthcare and What You Can Do About It
Healthcare expenses are one of the most significant—and often unpredictable—costs in retirement. From prescription drugs and routine care to long-term care needs, the rising cost of healthcare in retirement has become a central planning issue. While many retirees expect Medicare to cover the majority of their expenses, the reality is that out-of-pocket costs often increase over time. Without proper planning, these rising costs can strain retirement income, especially when combined with other risks like tax increases or market volatility. This is where a Power of Zero approach can offer a different way forward. By shifting resources to more tax-efficient […]
Setting Financial Goals for the Year Ahead: A Retiree’s Guide
Retirement may represent the culmination of a lifelong savings journey, but that doesn’t mean planning stops. In fact, setting financial goals for retirees is a key part of staying intentional with your spending, adjusting to life changes, and aligning your resources with what matters most. Whether you’re entering your first year of retirement or have been retired for a decade, each year presents an opportunity to reevaluate and realign. Setting goals allows you to stay connected to your financial plan and gives your retirement lifestyle a clear direction.
Long-Term Care: A Financial Blind Spot for Many Retirees
Long-term care is one of the most underestimated and underplanned aspects of retirement. Many retirees hope they won’t need it—or assume Medicare will take care of it. Unfortunately, the reality is far different. Ignoring long-term care needs can have serious financial consequences. According to the U.S. Department of Health and Human Services, roughly 70% of people turning 65 today will need some form of long-term care. These services, ranging from in-home care to assisted living or nursing facilities, can cost thousands of dollars per month and are not typically covered by Medicare. That’s why long-term care financial planning for […]
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