Creating a budget for senior living

Fear and greed are hard to overcome. Why do we let these emotions control our decision-making process when it comes to our financial well-being? Do we fear that when there is a market correction it is a sign of impending global doom? As a part of our emotional make-up, we have a tendency to linearly extrapolate. When things are going bad, they will only get worse, and when things are going well, they will only get better. We know that our past experiences tell us neither scenario is true, but we continue to fall into the same trap time and time again.At some point we have to come to the realization that market movements are part of the investment process, and the only way to prosper long-term is to eliminate the emotions that will make us buy high and sell low. The way to control emotions is to have a disciplined approach. Discipline puts us in control, not our emotions.Controlling our emotions helps us in all facets of life, and is a key element in understanding the Psychology of Investing. Investment decisions are similar to decisions regarding friends and family. Dont try to resolve an issue when emotional, BE DISCIPLINED. The Psychology of Investing is nothing more than an understanding of the emotions that influence our decisions. Buying high and selling low is not the inverse of buying low and selling high, but is an actualization of our emotions. Be disciplined in your decision making. Use fact and reason to the best of your ability and endeavor to understand, and by understanding, control your emotions. The Psychology of Investing is the first chapter in a book titled The Ten Commandments of Investing, a book that offers a unique perspective on investing by Al Weber, Senior Vice President at Raymond James. It is available in electronic format, at no charge, by requesting it at Katie.Burr@RaymondJames.com. Editors Note: This article was submitted by Erin Weber, CFP. Erin is a Financial Advisor with the Weber Group of Raymond James. She may be reached at 878.208.1285 or Erin.Weber@RaymondJames.com.Raymond James & Associates, Inc., member New York Stock Exchange/SIPC800 Cranberry Woods Drive, Suite 200, Cranberry Township, PA 16066Any opinions are those of Erin Weber and not necessarily those of Raymond James. This material is intended for informational purposes only. It is not a substitute for professional medical advice, diagnosis, or treatment. See ad on page 112.  

For many retirees, Social Security is the cornerstone of income. With the new changes retirees are experiencing a mix of routine program adjustments and sweeping policy changes. Here are some highlights of the most important updates to Social Security, as well as how the One Big Beautiful Bill Act (OBBBA) reshapes the retirement landscape.Social Security Adjustments in 2025 Cost-of-Living Adjustment (COLA): Benefits rose by 2.5%, raising the average retired workers benefit to about $1,976 per month. Earnings Limits Increased: Retirees working before full retirement age can now earn up to $23,400 without full benefit reductions; those reaching full retirement age in 2025 face a higher limit of $62,160 before penalties. Taxable Wage Base Expanded: Wages subject to Social Security payroll tax rose to $176,100, ensuring higher-income workers contribute more. Repeal of WEP & GPO: The Social Security Fairness Act eliminated offsets that reduced benefits for public-sector retirees with non-covered pensions, granting higher or newly accessible benefits to many.How The One Big Beautiful Bill Act affects Social Security for Retirees The One Big Beautiful Bill Act delivers new tax relief for seniors: retirees aged 65 and older may deduct up to $6,000 per person (20252028), shielding much of their Social Security from taxation. For roughly 88% of beneficiaries, this eliminates federal taxes on benefits.The rules and regulations regarding Social Security and taxes can be complex and may change. Therefore, being informed about benefits and taxation is vital! Despite the complexity of Social Security and taxes, learning about these new changes are crucial to retirement income and tax planning.Managing finances in retirement involves more than simply drawing from savings. To secure stability and confidence, retirees must understand how income sources, Social Security benefits, and taxes interact. A coordinated strategy ensures resources last throughout later life stages.Consulting with financial and tax professionals may mitigate unexpected tax implications when receiving Social Security benefits and drawing down retirement savings assets.

Financial planning doesnt end at retirementit evolves. For many seniors in Colorado Springs, the transition from earning income to managing retirement assets can be both exciting and overwhelming. Thats where Senior Tax Advisory Group (STAG) steps in.For over a decade, Senior Tax Advisory Group has been helping retirees and pre-retirees protect their savings, reduce taxes, and plan for a confident financial future. Their trusted team combines education, experience, and empathy to guide seniors through every aspect of retirement financesfrom Social Security and Medicare to estate planning and tax-efficient income strategies.Visit Senior Tax Advisory Group on Seniors Blue Book The Importance of Financial Services for SeniorsAs people live longer and healthcare costs continue to rise, retirement planning requires more strategy than ever. According to the U.S. Census Bureau, over 17% of Colorado Springs residents are aged 60 or older, and that number continues to grow every year.This means thousands of local seniors are navigating: How to maximize retirement income When to start Social Security benefits How to minimize taxes on distributions What to do about inflation and market volatility Without proper guidance, retirees risk paying more in taxes than necessary or outliving their savings. Thats why professional financial services tailored to seniors are essential.How Senior Tax Advisory Group Serves Colorado Springs RetireesAt Senior Tax Advisory Group, the mission is simple: help seniors keep more of what theyve worked hard to earn. Their holistic approach combines tax strategies, investment planning, insurance, and education to provide peace of mind for every stage of retirement.1. Tax Planning for RetireesRetirement doesnt mean the end of taxesit means new tax opportunities and challenges. STAG specializes in helping seniors reduce unnecessary tax burdens through: Strategic withdrawals from IRAs, 401(k)s, and pensions Roth IRA conversions during lower-income years Tax-efficient income distribution planning Charitable giving strategies that maximize deductions By managing taxable income wisely, retirees can often save thousands of dollars over the course of their retirement.2. Social Security OptimizationTiming is everything when it comes to Social Security benefits. Claiming too early could reduce lifetime income, while waiting too long might not always be ideal.STAGs advisors run personalized analyses to help clients determine: The best age to start benefits based on health, lifestyle, and savings How to coordinate benefits between spouses How Social Security interacts with pensions or investments The goal is to maximize total lifetime income, not just monthly checks.3. Retirement Income PlanningCreating reliable income during retirement is one of the biggest concerns seniors face. STAG helps clients design sustainable income strategies that balance security with flexibility.This includes: Developing income streams that last through retirement Using a mix of investments, annuities, and guaranteed products Adjusting withdrawal strategies as markets fluctuate Their focus is on ensuring that clients can enjoy retirement without fear of running out of money.4. Investment Management & ProtectionAs seniors age, their financial priorities shift from growth to preservation. Senior Tax Advisory Group helps clients align investments with personal goals and risk tolerance.Their advisors focus on: Diversified portfolios for balanced returns Principal protection strategies Inflation-resistant investment options Ongoing monitoring and adjustments By managing risk and staying proactive, they help seniors feel secure in both stable and uncertain markets.5. Medicare & Healthcare GuidanceHealthcare is one of the largest expenses in retirement. STAG helps clients understand how Medicare choices, supplemental insurance, and income levels affect healthcare costs.They provide clarity on: Medicare Parts A, B, D, and Advantage plans How income impacts Medicare premiums Strategies to avoid costly IRMAA surcharges Their guidance helps clients protect both their health and their wealth.Our mission is to educate and empower retirees so they can make confident financial decisions that support their goals. Its not just about numbersits about people. April Andreson, from the Senior Tax Advisory Group team Local Insight: Retirement Trends in Colorado SpringsColorado Springs is one of the fastest-growing retirement destinations in the state. Seniors here enjoy a mix of scenic beauty, low property taxes, and a strong network of senior resources.However, rising living costs and inflation mean retirees must plan carefully to maintain their lifestyle. According to the Bureau of Labor Statistics, seniors spend an average of $52,000 per year in retirementwith housing and healthcare as the top expenses.Senior Tax Advisory Group understands these local challenges and tailors every plan to meet the unique financial realities of living in Colorado Springsfrom tax laws and property considerations to charitable giving in the local community.Why Financial Planning Should Start EarlyEven if retirement feels far away, the best time to start planning is now. The earlier you begin, the more options you have to grow and protect your assets.Benefits of early financial planning include: More control over tax outcomes Better timing for Social Security and Medicare decisions Greater flexibility for charitable giving or legacy goals Reduced stress for you and your family For seniors already in retirement, its never too late to review your plan. A second opinion from a local expert like Senior Tax Advisory Group can uncover new opportunities to improve financial stability.Community Commitment: Educating Colorado Springs SeniorsSTAG is not just a financial firmtheyre an educational resource for the community. Their team regularly hosts free retirement and tax workshops throughout Colorado Springs to help locals understand how to make smart financial decisions.These workshops cover topics such as: Understanding Taxes in Retirement Social Security and Medicare Planning Protecting Your Assets from Inflation The goal is to empower seniors with knowledge so they can make informed, confident choices about their finances.Frequently Asked Questions About Financial ServicesQ1: Whats the difference between a financial advisor and a tax advisor? A financial advisor focuses on investments and long-term planning, while a tax advisor helps manage tax obligations. Senior Tax Advisory Group combines both to provide integrated retirement planning that optimizes taxes, income, and investments.Q2: How can I lower my taxes in retirement? Strategies include Roth conversions, timing withdrawals strategically, and using Qualified Charitable Distributions (QCDs). The right mix depends on your income and savings structure.Q3: When should I start taking Social Security? That depends on your goals, life expectancy, and other income sources. STAGs advisors use advanced tools to find the best strategy for each client.Q4: Do I still need financial advice after I retire? Yes. Retirement introduces new challengeslike managing withdrawals, required minimum distributions (RMDs), and healthcare expenses. A financial advisor helps keep your plan on track.Q5: Is Senior Tax Advisory Group a fiduciary firm? Yes. They are committed to acting in their clients best interests, always providing transparent, objective advice.The Bottom LineRetirement should be a time of freedomnot financial stress. With the right guidance, you can enjoy the lifestyle youve earned while minimizing taxes and protecting your future.Senior Tax Advisory Group in Colorado Springs has built a reputation for helping retirees simplify complex financial topics and make confident, informed decisions. Their team combines professionalism, education, and care to ensure that every client feels supported for the long run. We help people understand their money so they can enjoy life, not worry about it. April Andreson, from the Senior Tax Advisory Group team Take the Next Step Toward a Confident RetirementIf youre ready to take control of your retirement plan, contact Senior Tax Advisory Group today to schedule your complimentary consultation. Learn More: Visit their Seniors Blue Book profile