Social Security and the 2033 Question
Social Security is likely part of your retirement plan—but how much can you actually count on it? And when should you start taking benefits? The answers depend on understanding what Social Security really is, how it works, and where you are in life. Some observations: In Fleming v Nestor (1960), the Supreme Court ruled that Social Security benefits are not an “accrued property right” or contractual obligation. Paying Social Security taxes does not grant a worker a legally binding entitlement to receive specific benefits in the future. Social Security has always been “pay as you go,” meaning benefits were paid [...]
Five Tax-Smart Investing Strategies for 2026
Tax-smart investing is a dynamic and ongoing process. You can keep more of your hard-earned money by leveraging tax-advantaged accounts, prioritizing tax-efficient investments, and staying proactive about ever-changing tax laws. As 2026 unfolds, make it the year you take your tax strategy to the next level—because it’s not just about what you earn; it’s about what you keep after tax. Here are five strategies that help to maximize what you keep when it’s time to pay Uncle Sam. Maximize Tax-Advantaged Accounts. Tax-advantaged accounts remain a cornerstone of intelligent investing. These include: 401(k)s, IRAs, and Roth IRAs: Contribute the maximum allowable [...]
The 5 Ps of Rational Investing: What Matters Most
It’s hard to be rational when investing, ESPECIALLY when emotions seem to drive the markets. We’ve written about rational versus emotional investing in “The Game of the Stock Market vs. The Business of Investing” and “When Emotions Hijack Your Investment Returns,” but we have distilled those ideas into the Five P’s of Rational Investing. The interesting thing about market cycles isn’t just how they unfold—it’s also how investors respond to them. By nature, investors become complacent when markets are strong and panic when markets take a downturn. Both responses undermine long-term success. The best investors do something different. They maintain [...]
Making the Most of Year-End: A Practical Guide
December 2025 Year-end planning letters typically arrive stuffed with charts, acronyms, and dozens of action items that leave you feeling overwhelmed before you finish reading. We're going to take a different approach. Let's talk about the handful of things that actually move the needle. The Big Picture Before we dive into tactics, let's be clear about what matters: You want to keep more of what you earn, protect what you've built, and pass on something meaningful to the people and causes you care about. Everything else is just mechanics. The tax code changes regularly, exemption limits shift with inflation, and [...]
Assessing Your Insurance Needs: A Strategic Approach
Insurance decisions shouldn't be driven by fear or sales pitches—they should be grounded in cold, hard financial logic. At Muhlenkamp, our approach to insurance is simple: "The purpose of insurance is to protect against financial disaster. Any non-financial loss cannot be remedied by insurance. Any loss that is not a disaster does not require insurance." This philosophy cuts through the noise of complex insurance products and expensive policies you don't need, focusing instead on what truly matters: protecting your family's financial future when it counts most. The Financial Disaster Test Before evaluating any insurance product, ask yourself three critical questions: [...]
What Makes Muhlenkamp Different
I periodically get this question from people interested in our firm. (I never get this question from existing clients—they already know.) And it's a hard question to answer because it begs a return question: "Different from whom?" We're not very different from the active value firms with good long-term track records and a consistent investment discipline. I can name half a dozen of them, and the only difference tends to be in how we determine "value." We're not very different from client-focused advisors. We are fiduciaries and have adopted "Know Your Client" policies to ensure a good client/manager fit. We [...]
Financial Freedom After Graduation
Essential Money Advice for New Graduates Parents and grandparents: Share this with your graduate—these early financial decisions can be worth hundreds of thousands of dollars over their lifetime. Congratulations, graduate! Your first "real" job is more than a paycheck—it's your chance to build lifelong wealth. The financial habits you establish now will determine your future financial freedom. Start with Your Safety Net Before investing or making major purchases, build an emergency fund. Save $1,000 immediately, then work toward three to six months’ worth of expenses. Open a high-yield savings account (online banks usually offer better rates) and keep this money [...]
WEALTH vs. INCOME: They are not the same thing.
Income is the money you earn. It can come from your job, a business, rental property, or even investments. It’s what comes in each week, month, or year — like your paycheck or dividends. Wealth is what you own. It’s the value of your assets — your home, savings, retirement accounts, investments, and any other things of value — minus what you owe (your debts). Why They’re Not the Same A family can have a high income and still not have wealth, especially if that family spends everything they earn or carries a lot of debt. On the flip side, [...]
Thoughts On: Managing your Portfolio in Uncertain Times
I’ve been paying attention to the stock market for over 30 years, and I can’t remember any times that weren’t uncertain. I checked with Ron, who has been paying attention since 1968, and he can’t remember any times of certainty either. When I think about managing your investment portfolio in uncertain times, I start with these questions: What is uncertain today? What has been uncertain in the past? Were these unprecedented at the time? How did you manage your portfolio then? What did you learn from that? For example, the 1970’s were unprecedented in having high inflation combined with high [...]
Five Tax-Smart Investing Strategies for 2025
Tax-smart investing is a dynamic and ongoing process. You can keep more of your hard-earned money by leveraging tax-advantaged accounts, prioritizing tax-efficient investments, and staying proactive about ever-changing tax laws. As 2025 unfolds, make it the year you take your tax strategy to the next level—because it’s not just about what you earn; it’s about what you keep after tax. Here are five strategies that help to maximize what you keep when it’s time to pay Uncle Sam. 1. Maximize Tax-Advantaged Accounts Tax-advantaged accounts remain a cornerstone of intelligent investing. These include: 401(k)s, IRAs, and Roth IRAs: Contribute the maximum [...]