A Note from Larry
Retirement: More Than Just the Numbers
When most people think about retirement planning, they naturally focus on the financial side of the equation. Will I have enough saved? Will my investments generate the income I need? Can I maintain the lifestyle I've worked so hard to build?
Those are important questions, and having a solid financial plan can provide tremendous peace of mind. But after years of working with retirees and those approaching retirement, I've learned that financial preparedness is only one piece of the puzzle.
In recent months, we've discussed topics like Social Security and the various savings vehicles available to help build retirement security. This month, I'd like to shift the conversation toward something equally important: creating a retirement that is fulfilling, meaningful, and enjoyable.
The encouraging news is that many retirees report being happier after leaving the workforce. Research consistently shows that retirees who thrive tend to have several things in common. They stay engaged, maintain strong relationships, continue learning, and remain connected to activities that provide a sense of purpose.
One of the biggest misconceptions about retirement is that unlimited free time automatically leads to happiness. While the idea of having a completely open schedule may sound appealing, too much unstructured time can sometimes leave people feeling disconnected or lacking direction.
The retirees who seem to enjoy this chapter of life the most often "retire to something" rather than simply retiring from work. That might mean volunteering, mentoring, traveling, pursuing a passion project, spending more time with family, joining community organizations, or exploring interests that were difficult to prioritize during a busy career.
Social connections also play a critical role. Many of the relationships and daily interactions we experience come through our work. Retirement often requires being intentional about maintaining friendships, building new relationships, and staying involved in the community.
Another common trait among happy retirees is a commitment to lifelong learning. Whether it's taking classes, learning a new skill, picking up an instrument, or simply exploring a subject you've always been curious about, continuing to grow can bring a tremendous sense of fulfillment.
For some, easing into retirement rather than making an abrupt transition can also be beneficial. Part-time work, consulting, seasonal employment, or volunteer opportunities can provide structure and purpose while still allowing greater flexibility.
As you think about your own retirement plans, I encourage you to consider not only the financial questions, but also the personal ones:
- What activities bring you the most fulfillment?
- How would you like to spend your time?
- What relationships would you like to strengthen?
- What goals or interests have you postponed because life has been too busy?
The most successful retirement plans address both financial security and personal fulfillment. Having confidence in your finances gives you the freedom to focus on what matters most—and that's where retirement can become truly rewarding.
As always, if you'd like to discuss your retirement goals, review your financial plan, or simply talk through what's next, we're here to help.
Larry A Mengerink CFP® AIF®
Market Update (In Plain English)
Market Update: Strong Momentum Continues
The strong market momentum that began in April carried through May, with major stock indexes continuing to push higher despite a number of headlines that might normally cause investors to pause.
On one side, investors have been keeping a close eye on inflation concerns. Rising Treasury yields reflected worries that higher energy prices and ongoing geopolitical tensions could put upward pressure on inflation. At the same time, some businesses have begun passing along higher costs to consumers, adding to concerns that inflation may remain stubbornly elevated.
There has also been increasing discussion about the Federal Reserve's next move. Earlier this year, many investors expected at least one interest rate cut in 2026. More recently, however, stronger labor market data and persistent inflation concerns have led some market participants to speculate that the Fed could keep rates higher for longer—or even consider additional rate hikes.
Despite these headwinds, stocks delivered another strong month. Corporate earnings have remained exceptionally strong, helping to support higher stock prices.
The biggest driver of market performance during May was earnings growth.
First-quarter earnings season came in significantly stronger than expected, with many companies reporting results that exceeded analyst forecasts. Overall, profits for companies in the S&P 500 grew nearly 30% compared to the same period last year- the strongest pace of earnings growth since late 2021.
Artificial intelligence continues to be a major theme. Large technology companies have benefited from substantial investment in AI infrastructure, semiconductors and cloud computing, producing impressive revenue and profit growth. However, the story extends well beyond the largest technology firms.
In fact, companies outside of the so-called "Magnificent Seven" also reported healthy earnings growth, demonstrating that strength has been fairly broad-based across the market. Businesses have continued to benefit from resilient consumer demand, improving profit margins, and an economy that has remained more durable than many expected.
When evaluating any business (whether it's a privately owned company or a publicly traded stock) current and future profitability matter. Ultimately, investors are willing to pay more for businesses that are generating growing earnings and demonstrating strong prospects for future growth.
That's exactly what we've seen reflected in market performance this year. While interest rates, inflation and geopolitical events continue to influence day-to-day market movements, strong corporate earnings remain one of the most important long-term drivers of stock prices.
As always, market conditions can change quickly, but maintaining a disciplined, long-term investment approach remains one of the most effective ways to navigate periods of uncertainty while staying focused on your financial goals.
Scam & Fraud Watch
Staying One Step Ahead of Scammers
Financial scams continue to evolve, and unfortunately, criminals are becoming increasingly sophisticated in how they target individuals and families. Artificial intelligence, social engineering and impersonation tactics are making it more difficult than ever to distinguish legitimate communications from fraudulent ones. Recent research highlights several emerging scams that experts expect to become even more prevalent in the coming year, including employment scams, recovery scams, digital arrest schemes and online relationship fraud.
The following article from AARP provides a helpful overview of the biggest scams to watch for in 2026, along with practical steps you can take to protect yourself and your loved ones.
aarp.org
Planning Tip of the Month
New Savings Option for Children: How Does It Compare to a 529 Plan?
With the introduction of the new "Trump Account" savings program, many parents and grandparents are asking whether this new option should replace (or complement) a traditional 529 college savings plan. While both accounts offer tax advantages and are designed to help children build financial security, they serve different purposes and come with different benefits and limitations. In the following article, Morningstar explores the key differences and provides insight into when one account, or a combination of both, may make the most sense for your family's goals.
morningstar.com