The Government Shutdown - This one is time sensitive, so don't miss it!

This episode of Retirement Success, hosted by Steve and Elizabeth Holland with Todd MJ Schnitt, dissects the significant financial and personal implications of government shutdowns, emphasizing that a personalized retirement plan is crucial for navigating such events. The hosts underscore that a recent shutdown is a powerful reminder that these disruptive periods will occur again.Key Topics and Advice:

• Protecting Your Income and Cash Flow: The most critical defense against government disruption is an adequate cash buffer. The Hollands strongly advise increasing liquid reserves to cover 12 to 18 months of expenses, up from the pre-pandemic recommendation of 6-8 months. This is vital for those facing furloughs (like federal employees) and for retirees needing to implement a staggered withdrawal strategy to avoid selling volatile assets during a market dip. They also clarify that unlike the pandemic, Required Minimum Distributions (RMDs) are still mandatory during a shutdown.
• Impact on Government Services and Benefits: While Social Security and Medicare benefit checks are generally safe, administrative support and services face significant delays. This includes the processing of veterans' benefits, disability claims, appeals, permits, and license renewals. The uncertainty caused by these delays extends to the financial markets, which "hate uncertainty," and contributes to weekly GDP losses of up to $15 billion.
• Market Volatility and Personal Risk: Shutdowns trigger market volatility and can lead to "portfolio drag" for retirees relying on short-term returns. Beyond dollars, there are real-life consequences, including delays in health-related processing and an overall intangible "fear risk" that causes significant personal anxiety and stress among the 60-plus crowd.
• The Holland Group's Personalized Planning: The firm’s client onboarding starts with a brief "discovery call" to understand a prospective client's core concerns. The goal is to move beyond a "cookie-cutter" approach, collecting comprehensive personal and financial data to construct a truly customized, comprehensive retirement plan that addresses unique goals and anxieties.

Contact The Holland Group Retirement Wealth Advisors for a complimentary, no-obligation review by calling [phone], or visit AskTheHollands.com to schedule a discovery call at your convenience.