Cody Lachner, CFP, EA - Next Adventure Financial

03/04/2026

Health care is one of the most talked-about expenses in retirement.

Fidelity Investments released their annual health care cost estimate last summer and projects that the average 65 year old retiree will have ~$173,000 in health care expenses during their retirement.

Of course, these expenses don't need to be paid for with a lump-sum at retirement. Rather, they quickly add up over time from things like Medicare premiums, prescription drugs, and other out-of-pocket medical care.

If you're nearing retirement, you'll want to include these expenses within your annual retirement spending plan to make sure your income sources and investments can comfortably support them year after year.

Keep in mind, there are other factors that can increase your medical costs over time:

• Retiring before Medicare at age 65
• Higher income that triggers Medicare IRMAA surcharges
• Chronic health conditions or higher prescription costs
• The potential need for long-term care later in life

Long-term care is a big unknown for most. Medicare generally doesn’t cover extended care needs, and services like in-home care, assisted living, or nursing facilities can be very expensive.

That’s why it’s super important to think about how these things fit into your overall retirement plan, not just your medical premiums. These are all things that can be planned for both before & during retirement.

02/04/2026

Did you know your tax documents and tax return can tell you a lot more than just what you owe or what you’re getting back.

They often provide a useful snapshot of how different income sources are working together and where small issues can quietly show up over time.

Here are 4 things to look for during tax season:

1️⃣ Where Did Your Income Come From?

Different income sources interact differently with taxes, Medicare premiums, and future required withdrawals. Understanding this helps shape which accounts should be used more (or less) going forward to strategically manage your tax bill.

2️⃣ Did Investment Accounts Generate More Taxes Than Expected?

This helps us determine whether you have investments that are being held in the wrong types of accounts. If we see high levels of interest, dividends, and gains, there may be better accounts to put your investments so you don't overpay in taxes.

3️⃣ Were Retirement Withdrawals Reported Correctly?

Small errors have the potential to create unnecessary taxes or letters from the IRS. It's best to address these things as early as possible.

4️⃣ Did Your Taxes Change Meaningfully From Last Year?

Understanding what caused a significant change can help avoid unintentionally repeating it. This also gives us an opportunity to plan around it in future years.

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Use tax season as an opportunity to refresh your retirement & tax plan. Once taxes are filed, most people close the folder and move on but this is a great time to spot trends, look ahead, and plan for new opportunities to lower taxes and improve the retirement plan.

12/04/2025

Here's our regular end-of-year tax cheat sheet!

There are a number of things below that could help lower your tax bill, depending on your situation.

Note that most of these things need to be done before 12/31 to count for 2025.

Year-End Contributions:

✅ 529s - check if your state offers any deductions or tax credits. Indiana offers a valuable tax credit for residents.

✅ Charitable giving - make sure your donations are received or postmarked by 12/31 (donations must be received by 12/31 if sent through UPS/FedEx/or similar). To deduct contributions, you need to exceed your Standard Deduction ($15,750 single, $31,500 married, filing joint).

Investing:

✅ Tax-Loss Harvesting - you can sell investments with a loss and use the losses as a deduction against your other income (limited to $3,000 per year). You can also use your losses to offset other gains you've recognized during the year. Watch out for the "wash sale rule" which prevents you from taking a deduction if you sell an investment at a loss and immediately repurchase it (or a similar investment) - Cryptocurrency does NOT follow the wash sale rule at this time; great opportunity!

✅ Tax-Gain Harvesting - if your taxable income is low enough, you may qualify for a 0% capital gains tax rate. Don't waste this opportunity! This can be done by selling investments at a gain for which you've held them more than a year and immediately repurchasing them (be aware of your taxable income with/without the gains).

Tax Withholdings:

✅ Make sure you've withheld enough for the year. For most taxpayers, this means withholding AT LEAST 90% of your current year tax liability or 100% of last year's tax liability (110% for those who had income exceeding $150,000 last year).

✅ If you haven't withheld/paid enough, talk to a tax pro to figure out the best option to correct it.

Retirement:

✅ For those who are subject to Required Minimum Distributions, make sure you take your RMD by December 31st (or April 1st if this is your first year RMD).
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Send us a message if you have any questions!

10/16/2025

It's officially Medicare Open Enrollment season.

Even if you’re happy with your current plan, it’s worth taking a few minutes to review:

✅ Costs change. Premiums, deductibles, and prescription drug prices are all updated annually.
✅ Coverage changes. Doctors, hospitals, or medications that were covered this year may not be next year.
✅ Needs change. Health conditions, prescriptions, or travel plans can all affect which plan is best suited for you.

During this open enrollment period, you can:

- Switch between Original Medicare and Medicare Advantage
- Change your Part D prescription drug plan
- Review your Medigap (Supplemental) coverage options
- Any updates you make will take effect January 1, 2026.

If you’re unsure which path makes sense, start by reviewing your current coverage and prescription list. The flowchart below can help you think through the key decisions before making changes.

09/17/2025

Thinking about retiring before Social Security kicks in?

Retiring before Social Security means you're likely going to be solely relying on your investments during this time.

That's not a bad thing though.

With the right plan, these years can be one of the most valuable times from a tax perspective.

Here’s why:

🪣 You have full control over where your income comes from.

Withdrawing from different tax buckets (taxable, IRA, and Roth) in a smart way lets you manage your tax bracket year by year.

🔥 It may be the perfect time for Roth conversions.

With no paycheck and no Social Security yet, your taxable income may be lower, which opens the door for conversions at lower rates.

💸 You may be able to take advantage of health insurance subsidies.

If you’re under 65, managing income carefully can help you qualify for health insurance subsidies through the Healthcare Marketplace. These subsidies can substantially reduce premiums, depending on your income level.

Remember: Just because you’re not getting a paycheck or Social Security doesn’t mean you’re doing something wrong. This is why you've worked so hard to save over your career!

With the right plan, the period before starting Social Security can be one of the best tax planning windows.

09/16/2025

Have you ever thought about how your spending might change over a 30+ year retirement?

(It's typically not a flat line)

Research has shown that retirement spending usually shifts with our age & health. Over time, these spending changes create a curve, hence the name "Retirement Spending Smile."

It commonly looks like this:

👉 Go-Go Years (60s–early 70s): You’re active, healthy, and finally have time to enjoy life with travel, hobbies, grandkid adventures, etc. Spending tends to be high during this stage.

👉 Slow-Go Years (70s–early 80s): Life slows down a bit. You may stay closer to home, but still enjoy the occasional trip, restaurant outing, and plenty grandkid time. Spending dips slightly, not because you have to cut back, but because you simply do less.

👉 No-Go Years (80s+): Health becomes a bigger factor. You may have more ongoing medical expenses: medical care, home assistance, long-term care, etc. Spending can start to rise again because of this.

This is why we don’t plan for retirement using a flat budget. We keep things flexible so you can adapt to what you actually need & want in retirement.

09/10/2025

We're a little late sharing this, but we're very excited to announce that Erin Chase has joined our team as Client Support & Operations Assistant! 🎉

Erin will be helping with many important behind-the-scenes things that keep us organized and efficient so we can make sure our clients continue to receive the best possible service.

Outside of work, Erin enjoys baking and reading—two hobbies that give her a fun way continue learning in new ways.

Please join us in welcoming Erin to the Next Adventure Financial team!

09/09/2025

Most retirees have the bulk of their nest egg in pre-tax IRAs or 401(k)s. These accounts are great while you’re working—but in retirement, they can sometimes create problems:

🔹 Every withdrawal is taxed as regular income
🔹 Higher income can trigger Medicare surcharges
🔹 RMDs (required withdrawals) can force you to take more than you need
🔹 Beneficiaries are required to withdraw their inheritance within a specific window

So what can you do?

Balance your “tax buckets” by looking beyond just pre-tax accounts. Other options include:

✅ Roth accounts for tax-free income later
✅ Taxable brokerage accounts for flexibility
✅ HSAs (if eligible) for long-term healthcare costs

Planning ahead can give you more control over your tax bill and more flexibility with your income.

Pre-retirement is a great time to see if you need to adjust your current balance of pre-tax accounts. If you're retired, there a number of things worth exploring to see if it's possible to reduce your future tax bill.

09/03/2025

Deciding when to claim Social Security affects more than just your retirement check — it can impact your spouse’s future income.

Here’s what many people don’t realize:

Social Security Survivor benefits are based on the higher-earning spouse’s benefit. Delaying can maximize not just your income, but the income your spouse depends on later.

➡️ Claim early → your benefit is permanently reduced.
➡️ That smaller check becomes your spouse’s survivor benefit if you pass away first.
➡️ Waiting longer means a bigger benefit for you and a stronger safety net for them.

For some couples, it can make sense for the higher earner to delay filing while the lower earner starts earlier which could help provide income today while also planning for the future.

Social Security decisions ripple through the rest of your retirement plan. Getting the timing right can make a major difference in lifetime income and provide peace of mind for your spouse.

If you’d like to see how we help couples weigh their options and make tax-smart filing decisions, feel free to reach out anytime.

08/28/2025

The top concerns I've heard from folks so far this year have been:

👉 Tariffs
👉 Inflation
👉 Government shutdowns
👉 Market volatility

These things are definitely scary, especially when you're retired and trying to protect a finite sum of money that needs to last the rest of your life.

But, it's always important to take a step back and remind yourself that we don’t get to control the headlines.

We do, however, get to control our decisions and how we prepare for these things.

Keep the focus on the retirement plan.

A solid retirement plan doesn't need to predict the future, it just needs to be flexible and adapt as things change.

If you're not confident your plan can adjust when needed, let's talk!

08/26/2025

Here's another great question we were asked recently:

"What happens to our taxes if one of us passes away?"

This isn't an easy topic to talk about but the reality is the surviving spouse often faces higher taxes.

Assuming you're both retired, here’s what happens:
✅ Social Security income drops (one check goes away).
✅ IRA withdrawals and other retirement income likely continue.
✅ The survivor begins filing as single — single tax brackets fill up faster meaning you can end up in a higher bracket on less income.

This is where planning can make a big difference. Things like Roth conversions, diversifying your “tax buckets,” and timing withdrawals can all help you better prepare for this possible transition.

This is a very important (and overlooked) part of retirement planning.

Cody Lachner, CFP®, EA, founder of Next Adventure Financial, is a Lafayette, IN financial advisor providing retirement and tax planning to families approaching retirement.