BenefitsCheckUp® is a free service of the National Council on Aging, showing you what FREE benefits

If you're planning to retire within the next few years or youve recently retired market volatility may feel especially unsettling. After years of saving and planning, you're now entering a stage where your portfolio may shift from growth to providing income. The five-year window before and after your retirement date is especially critical when market downturns can have an outsized impact on your long-term financial security.While you can't control the markets, there are meaningful steps you can take to stress-test your retirement income, so it is not consumed entirely by market drops before you stop working.  Explore your short- and medium-term income needs. One of the most important steps to take is to understand how much of your portfolio youll need to rely on for income. It depends on your other income sources such as Social Security, IRAs, 401ks, pensions and wages if you work in retirement. You'll want to avoid taking too much from your portfolio in response to a decline because that could increase the likelihood that your money may not last through retirement. A financial advisor can help you determine your threshold for monthly withdrawals, based on your income needs, long-term outlook, inflation and risk tolerance.  Review your emergency fund. Are you able to set aside at least three to six months worth of essential expenses in cash or very low-risk investments? That could allow you to avoid digging too deeply into your portfolio or selling stocks or other volatile assets at a loss if the market drops. The income bridge from an emergency fund gives your longer-term investments time to recover and can reduce stress during down markets. You may even find you want more than six months in this fund to help weather emergencies, depending on your risk and your comfort level.   Review your mix. As you approach or begin retirement, does your portfolio reflect your need for stability and income? You may need to reduce exposure to riskier assets such as stocks and increase holdings in more stable ones, like bonds or cash equivalents. Your ideal allocation depends on your risk tolerance, spending needs and other income sources. The goal is to shield your savings from major losses just as you begin drawing from them.  Consider market swings. If the value of your portfolio dropped 20% tomorrow and stayed there for a period of time, would you need to change your lifestyle or spending immediately? Would you need to go back to work? If your answer is yes, revisit your asset allocation or spending plan. A more conservative approach may offer less upside but can provide greater confidence during the early years of retirement.  Assess your spending. Even small budget adjustments can make a big difference, especially early in retirement. Do you need to consider postponing a major purchase or trimming discretionary spending? If you're still working, directing extra income into savings can help build a cushion. If youre already retired, keeping withdrawals as low as possible during market downturns can help support long-term sustainability.  Stay grounded and get support. Market swings are inevitable, but emotional reactions and risky investing can lead to costly mistakes. Dont abandon your investment strategy. Instead, focus on what you can control: your asset mix, spending and flexibility. A financial advisor can help you stress-test your retirement plan, evaluate your options and stay focused on your long-term goals even when the markets are anything but steady.Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC

Its important to save for retirement, but only half of Americans have calculated how much money theyll need, according to the 2024 Retirement Confidence Survey by the Employee Benefit Research Institute. Yet without knowing how much you'll need, it's hard to know if you're on track to reach your goals for retirement.            Here are a few considerations to help shape your retirement savings strategy.             Calculate how much youll need. You may dream of retiring comfortably, but how do you define comfortable in terms of actual money? Take the time to outline how much you spend now, and how much you think youll spend in retirement. That will help you understand how much you need to save now to afford the retirement lifestyle you want later. A financial advisor can help with resources and knowledge for building and managing your retirement strategy.             Start saving now. Its easy to procrastinate, especially if you are younger and further away from retirement. But the earlier you start, the less you may need to save from each paycheck to build your funds over time. If youre closer to retirement, you can take advantage of catch-up contributions to most 401(k), 403(b), governmental 457 plans and the federal governments Thrift Savings Plan. If youre 50 or older, you can save pretax an extra $7,500 to your retirement account beyond the standard total limit of $23,500 allowed in 2025. Those 6063 years old can contribute to these plans an extra $11,250 above the standard total limit. Thats an annual total of $31,000 for people ages 50 and older; or $34,750 for those 6063 years old in pretax retirement plan contributions.             Take the right amount of risk. You may think its risky to put money away for retirement instead of keeping it handy for discretionary spending. But the biggest risk of all is not reaching your retirement goal. For example, a portfolio thats all in cash will have little increasing value over time and wont provide any growth potential even to keep up with inflation. It's as if you're losing money every year. Then again, if your investments are only keeping up with inflation, your money is not growing. Consider growth investments to help build the funds youll need in retirement. The key is ensuring you have the appropriate amount of risk not too much, but not too little to achieve your growth goals. Save separately for emergencies. To protect your hard-earned retirement savings, build an emergency fund separate from your long-term investments. It can help ensure you have what you need to cover surprises like a large auto repair, unexpected medical bills, temporary loss of income from changing jobs or early retirement caused by health issues. For most people, three to six months worth of total expenses is an appropriate amount for an emergency fund. And you'll want to keep it in an accessible, low-risk account that holds cash and equivalents. Above all, try to avoid taking money from your long-term retirement investments. Doing so could result in taxes, penalties and reductions to your overall principal investment, all of which could affect your retirement savings. Retirement should be an exciting time to enjoy what youve worked so hard to earn. Planning for what youll need and protecting those savings can help ensure a comfortable future. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

Perhaps you've heard the expression: Life is what happens when youre busy making other plans. Its certainly true about an unexpected job loss. And it may cause stress over your financial situation. Here are a handful of steps you can take shortly after the loss of employment to help put yourself in the best financial position. Some of these are time-sensitive, so the sooner you act, the better.File for unemployment While unemployment insurance typically covers less than half of your previous paycheck, it can provide some financial relief generally up to 26 weeks. Since filing a claim can be time-consuming, file immediately so payments begin as soon as possible. There are eligibility requirements, including your unemployment being involuntary and through no fault of your own, and meeting your states time worked and wage requirements. You can learn more about your states unemployment insurance program online. Adjust your budget and spending You'll likely require some changes to your budget, at least temporarily. Try to focus on the essentials, like housing, utilities and food, and see where you can cut costs or find cheaper alternatives on nonessentials, like coffee shops and entertainment. If youre saving for longer-term goals, like retirement or college, you may want to pause those contributions temporarily. Evaluate other sources of income In addition to any severance and unemployment payments, you can consider cashing in emergency or other savings and investment accounts. You could look for part-time work, which generally does not affect your unemployment insurance income as long as you're earning less than your unemployment benefits. Other possibilities are cashing in the value of insurance policies or annuities outside of surrender charge periods, accessing retirement accounts early, selling investments without taxable gains and borrowing money. Be aware that some of these options come with tax implications and fees. A financial advisor can help you navigate the trade-offs. Understand your HSA and FSA options Youll want to get the maximum benefit from your flexible spending account (FSA) and health savings account (HSA). The funds in an FSA are subject to a use-it-or-lose-it rule, generally within 60 days from termination. Consult your Summary Plan Description to understand how your FSA works and how to use your funds. Your HSA is yours to keep after leaving a company, and theres no deadline to use the funds. While you typically cant pay health insurance premiums from an HSA, there are exceptions for COBRA premiums and some other health insurance premiums if youre receiving federal or state unemployment benefits. Your plan administrator can help guide you. Ensure you have health insurance coverage Find out if your health benefits continue for any period and what is included. You generally can extend your employer's coverage up to 18 months under COBRA, though it's often expensive because you are liable for all monthly premiums. Joining your spouses or partners workplace plan could be an option, but you may only have 30 days to enroll. You can also look for coverage through the Health Insurance Marketplace, a function of the Affordable Care Act (ACA), where lower-income households may qualify for subsidies. Learn more about ACA coverage at healthcare.gov.Whether your next step is moving into early retirement or finding new employment, working through these steps may help you feel more confident in your financial position and more prepared to take on whatever comes next.   Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.