Social Security Workshop Recap
When we ask clients what's on their minds as they approach retirement, Social Security is almost always near the top of the list. And that's exactly why we hosted this workshop. Most people aren't planning for a 20% cut in their Social Security benefits, but the Social Security Trust Funds are projected to be depleted by 2033-2035. When that happens, benefits don't disappear — but they drop to approximately 80% of scheduled amounts. If you're 62 today, you'll be 69 or 70 when those cuts take effect. That's potentially 15 or more years of reduced income in retirement. In the [...]
DIY or Hire a Financial Advisor?
I don't prepare my own taxes. I'm not incapable of learning. I've done the math on a 1040. I understand depreciation schedules and capital gains treatment. But I use an accountant because the cost of getting it wrong is high, and my time is worth more spent elsewhere. That trade-off makes sense to me, and I've never second-guessed it. I also don't represent myself when I need legal advice. I don't rewire my own house. I don't pull my own teeth. So I've always found it curious that people draw the line at investment management — that this one discipline, [...]
The 2026 Social Security COLA: What Changed and What It Means for Your Retirement
By now, you've received your notice from Social Security: benefits increased by 2.8% in January 2026. For the average retiree, that means about $56 more per month—raising the average benefit from $2,015 to $2,071. If that number feels modest, you're not alone. In a recent survey, 77% of older adults said a 3% increase wouldn't be enough to help them keep up with rising prices. And if you're enrolled in Medicare Part B, the picture gets even more complicated: the standard premium increased by $17.90 per month in 2026, eating into more than 30% of that COLA before you see [...]
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 [...]