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The LynnLeigh JournalLife. Investing. And Everything in BetweenSocial Security provides retirees with a basic income. It was neverintended to fully cover the cost of living in retirement. But it acts as asupplement to your resources. Social Security includes disability, dependent benefits, and survivorbenefits for minor or disabled children. Our focus today will be onretirement benefits.As you are probably aware, retirement benefits may start at age 62.The table below highlights the age you receive your full retirementbenefit based on your date of birth.SECURING OUR FUTURE:NAVIGATING THE CHALLEGES OFSOCIAL SECURITYBy Kelly L. Olczak, CFP® NewsletterHighlightsA P R I L 2 0 2 4V O L U M E 4Just for Fun - Market Myth Busting:April 2024 EditionNavigating the Bull:Markets Surge asInvestors “Damn theTorpedoes”Understanding SocialSecurity BenefitsImpact of RetirementAge on BenefitsPlanning & Strategy forMaximizing BenefitsSecuring our Future:Navigating the Challegesof Social SecurityHistorical ParallelsCurrent MarketPerformanceInvestor Confidenceand Strategy

A P R I L 2 0 2 4 V O L U M E 4Should I retire at 62, 67, or 70?Unless there is a compelling reason to start receiving Social Security benefits early, it is usuallyadvisable to hold off as long as possible. Your benefit maxes out at age 70. Variables such as yourhealth and cash needs will play a role in determining the best time to take benefits.Table 2 illustrates the discount and premium you will receive based on when you file for benefits forthose born in 1960 or later.As shown in Table 2, you will receive 70% of the full retirement benefit if you claim at 62, 100% at 67,and 124% if you delay until 70.If you were born in 1956, for example, your full retirement age is 66 and 4 months. If you wereborn in 1960 or later, the full retirement age rises to 67.Receiving Social Security before reaching full retirement will permanently reduce yourbenefits. That may not be in your best interest. The longer you wait to apply for benefits, thegreater your monthly check.

A P R I L 2 0 2 4 V O L U M E 4We are providing a high-level overview, but weunderstand that your individual situation couldgenerate questions. Planning for Social Securitycan sometimes feel like entering a maze. Theoptions may feel overwhelming, and you canquickly get lost.Please feel free to reach out if you have anyquestions. We’d be happy to assist.If your birth year falls between 1943 and 1956, you will receive 75% of your full Social Security benefitif you retire at age 62, 100% of your full benefit at 66, and 132% of your full benefit at 70.Your benefit level is prorated by the month and gradually increases every month after your birthday.Additionally, the minimum and maximum benefit amounts are also prorated based on your birthyear. Based on your birthdate and when you apply for benefits, the minimum benefit ranges from70-75%. The maximum benefit ranges from 124-132%.S t r a t e g i e sThat said, anyone born in 1929 or later needs 10 years of work to be eligible for retirement benefits.Social Security began when many households had one spouse who was the sole wage earner. A non-working spouse may apply for a spousal benefit that is up to half the benefit of a working spouse.If a spouse begins receiving benefits before full retirement age, the benefit will be reduced.However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced.If the working spouse dies first, then the surviving spouse’s benefit increases to the monthlyamount that the deceased working spouse was receiving.

A P R I L 2 0 2 4 V O L U M E 4What if both spouses worked? Well, the lower-earning spouse will receive the special spousalbenefit or the benefit based on his/herearnings, whichever is greater.How might you maximize benefits for amarried couple?If both spouses claim benefit at 62, theiroverall benefits are permanently lower. If the higher-earning spouse passes first, the step-up inbenefits will be less generous because the higher-earner applied early.For example, Tom is eligible to receive $2,000 a month when he reaches age 67. He believes he has alife expectancy of 85.His wife Sarah will get $1,000 at 67. Based on her health and family history, she believes she may livepast 95.Both were born in 1963.The couple was planning to claim at 62. He would get $1,400 a month, and she would get $700.Because they are claiming early, their monthly benefits are 30% lower than they would be at theirfull retirement age of 67.After they consult with their financial advisor, Tom realizes that applying at 62 will reduce hiswife’s benefits during the years she expects to outlive him. If Tom can delay until 67 or even 70,he will increase his overall monthly Social Security check.

A P R I L 2 0 2 4V O L U M E 4For Tom, his benefit at 62 amounts to $1,400 per month (70%of full retirement), $2,000 at 67 (100% of full retirement), and$2,480 at 70 (124% of full retirement).The simple example illustrates one big advantage of delayingbenefits.In a ‘Ward and June Cleaver world,’ the benefit calculation isrelatively straightforward, especially if there is only one wageearner during the marriage.In a ‘Modern Family world’ divorce and re-marriage add anextra wrinkle for some couples.For example, if you have been divorced and were married forat least 10 years, you may be eligible for benefits based on yourex-spouse’s social security. You can receive up to 50% of their full retirement benefits. This will not affect your current spouse's benefits.C l a i m i n g b e n e f i t s w h i l e w o r k i n gIf you work and are at full retirement age or older, you may keep all of your benefits, no matterhow much you earn. However, if you’re younger than full retirement age, there is a limit tohow much you can earn and still receive full Social Security benefits.If you’re younger than your full retirement age during all of 2024, Social Security must deduct$1 from your benefits for each $2 you earn above $22,320.If you reach full retirement age in 2024, Social Security must deduct $1 from your benefits forevery $3 you earn above $59,520 until the month you reach full retirement age.

A P R I L 2 0 2 4V O L U M E 4B R I E F M A R K E T U P D A T EO n e m o r e t h i n g : T a x e sAccording to Social Security, you must paytaxes on up to 85% of your Social Securitybenefits if you file a:Federal tax return as an individual, andyour provisional income (AGI, plus halfof your Social Security benefit, plus tax-exempt interest) exceeds $25,000.Joint return, and you and your spouse have a provisional income (AGI, plus half of your SocialSecurity benefit, plus tax-exempt interest) of more than $32,000.During the Civil War, the Union placed a blockade on Confederate ports. In August 1864, DavidFarragut was given the task of closing the port at Mobile, Alabama, which had defied the order.When Admiral Farragut ordered his fleet to proceed, one of the ships hit a mine and sank, causingthe rest of the fleet to hesitate. Farragut, however, was undeterred and famously exclaimed, "Damnthe torpedoes! Four bells! Captain Drayton, go ahead! Jouett, full speed!”Today’s market has a similar ring to it. Investors are confidently navigating a minefield ofuncertainties as the Fed hopes to steer the economy toward a soft economic landing.As the table illustrates, U.S. stocks have had a strong start to the new year.R e c o r d s l e a d t o m o r e r e c o r d s

A P R I L 2 0 2 4V O L U M E 4The Stock Market’s Magnificent Seven Is Now the Fab Four, read a headline in the April 1 Wall StreetJournal. “It is a bullish signal that the market is rallying without the likes of Apple and Tesla,” at leastaccording to some investors.Dubbed the Magnificent Seven by a Bank of America analyst last year, Apple (AAPL), Microsoft(MSFT), Nvidia (NVDA), Tesla (TSLA), Amazon.com (AMZN), Meta (META, Facebook), and Alphabet(GOOG/GOOGL, Google) were responsible for a big chunk of last year’s advance in the S&P 500.It seems surprising that the market could mount a rally without Apple's leadership, but that's exactlywhat happened in Q1.According to The Wall Street Journal, shares of Apple and Tesla slipped in Q1, and Alphabet registered amore modest advance.In other words, the Magnificent Seven is now the Fab Four, at least according to the Journal.Nonetheless, the rally has broadened as other firms have picked up the slack.During the quarter, the broad-based S&P 500 Index notched 22closing highs, and the Dowrecorded 17, according to DowJones Newswires. The Nasdaqposted four new highs.Repeated new highs on the majormarket indexes suggest the rally,which was concentrated in a fewlarge stocks last year, isbroadening.The Magnificent Seven is still a force to be reckoned with. But its grip on key market indexesloosened in Q1.

A P R I L 2 0 2 4V O L U M E 4W h a t ’ s d r i v i n g s t o c k s h i g h e r ?The rate of inflation is off its peak, and theFederal Reserve is considering up to threequarter-point rate cuts this year.Moreover, the economy is expanding, andcorporate profit growth has been strong,according to LSEG, formerly Refinitiv. Finally, the AI locomotive has yet to show anysigns of slowing down.But we are always mindful that pullbacks are simply an unexpected headline away.Bull markets create wealth for long-term investors who adhere to a diversified and disciplinedapproach, but market corrections can’t be discounted. They are inevitable.What might create volatility?Well, unexpectedly bad economic news could jar markets, as that would cloud the outlook forcorporate profits.Fed officials believe the recent uptick in inflation is temporary. However, if the recent stickyinflation numbers prove to be, well, stickier than expected, Fed officials could delay projected ratecuts.Additionally, international tensions could spill into sentiment.When stocks tumble, it can be tempting to move away from equities and embrace cash. In the longterm, however, that’s rarely profitable, as once-shy investors find themselves chasing the markethigher.

A P R I L 2 0 2 4V O L U M E 4Conversely, a strong bull market can give one an aura of invincibility.“Now’s the time to step on the gas and load up on stocks,” some might say. A seemingly invincible market M a r k e t M y t h B u s t i n g : A p r i l 2 0 2 4 E d i t i o nEvery spring, this catchy phrase blooms in the minds of investors, suggesting they should sell their stocksin May to avoid a seasonal decline and return to the market later in the year. But before you start settingcalendar reminders, let's dig into this floral fable.Busting the Myth: The adage "Sell in May and go away" stems from the historical underperformance of stocks in the summermonths compared to the winter. However, like deciding to wear shorts based on a single sunny day inApril, this strategy is overly simplistic and overlooks several key points:Historical Performance Isn't a Crystal Ball: Yes, there have been periods when summermonths showed weaker returns, but it’s not a universal rule. For instance, recent years haveseen some summers with strong market performance. Stocks don't really check the calendarbefore deciding whether to go up or down. can encourage too much risk-taking, which can be compoundedwhen your golfing buddy constantlyreminds you about his/hernewfound windfall and “tradingskills.”Yet, we caution against a moreaggressive stance simply based onmarket action.

A P R I L 2 0 2 4V O L U M E 4Costs and Taxes: Selling assets can generate transaction fees and, potentially, capital gainstaxes. These costs can eat into any additional returns gained from avoiding downturns. It'slike throwing out the bananas with the peel – sometimes, you lose more than you bargainedfor.The Real Deal: A better approach is a well-rounded, diversified investment strategy thataligns with your long-term financial goals. Instead of trying to time the market based on anold saying, consider a steady investment plan that can weather ups and downs, regardless ofthe season.Fun Fact to Wrap Up: The phrase "Sell in May and go away" actually originates from an oldEnglish saying, "Sell in May and go away, come back on St. Leger's Day." This referred to thecustom of aristocrats, merchants, and bankers who would leave London and escape to thecountry during the hot months. Today, it’s less about the weather and more about marketcycles!So, before you spring into action this May, remember that a little myth-busting can keepyour investment strategy blooming all year round!Missed Opportunities: If you ditch themarket each May, you might miss out onsignificant gains. Market timing isnotoriously difficult, even forprofessionals. By being out of the market,you risk missing days with potentiallyhigh returns. Remember, some of the bestmarket days occur during periods ofvolatility!

A P R I L 2 0 2 4Final thoughts...As we wrap up this month's newsletter, let's chat about the power of patience in handling the upsand downs of the market rollercoaster. When things get wild, it's easy to feel the urge to reactquickly. But hey, let's take a breath and remember that patience is our secret weapon. By stayingcool and sticking to our long-term plans, we can ride out the turbulence and come out on top. So,let's keep our eyes on the prize, stay patient, and ride the waves with confidence!Have a wonderful month, and we will reconnect in May!LynnLeigh & Company - A Registered Investment AdvisorThis information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believedto be reliable – LynnLeigh & Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to anyindividual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayerfor the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or herindividual circumstances. The information in these materials may change at any time and without notice. Past performance is not a guarantee of future returns. V O L U M E 4