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Now is the time to prepare for your retirement; decreasing interest rates are bad for retirement. Get your Panic Proof Retirement Plan and lock in more monthly income!
844-44PANIC | PanicProofRetirement.com | February 2026
TAX TRAPS THAT CATCH RETIREES BY SURPRISE KNOW THE RULES
One of the most frustrating experiences for retirees is feeling as if they are being punished for saving. Many spend their adult lives planning for a stable, secure retirement, only to be hit by unexpected tax surprises late in life.
Then, any long-term capital gains are layered on top of that ordinary income, potentially pushing those gains into a higher tax bracket. This can come as an unpleasant surprise to taxpayers unfamiliar with the stacking rule. Punishment by Penalty Even taxpayers who make decisions with the best of intentions can find themselves in the IRS doghouse. Miss a Required Minimum Distribution? The IRS is waiting to collect a 25% excise tax. (You can reduce the penalty if you fix the problem within two years.) Take money out of the wrong account at the wrong time? That simple error could put a real dent in the nest egg you worked so hard to build. I have met people who discovered after the fact that a simple mistake had cost them thousands of dollars. These little-known tax traps can wear people down. Once-confident savers turn defensive for fear of breaking rules they didn’t know existed. For many, retirement begins to feel less like a reward and more like a maze. The Good News Fortunately, no retiree needs to guess their way through that maze. We help our clients build what I call a Retirement Tax Map, outlining a year-by-year strategy for which accounts to utilize, how much income to withdraw, and how to avoid unnecessary penalties and surcharges.
Facing the unpleasant truth, some ask, “Dan, I did everything right. Why does it feel like I am getting hit from every direction now?”
The truth is that retirement has its own set of tax rules, and most of them were never explained to you while you were working. Here are a few examples.
IRMAA Surprises Medicare Income-Related Monthly Adjustment Amount (IRMAA) surcharges can surprise you with sudden cost increases when your income crosses certain lines. Under IRMAA in 2026, people with higher incomes, based on IRS data from 2024, will pay a surcharge for Medicare Part B and Part D coverage.
How to avoid IRMAA? Lower your adjusted gross income from two years ago, which is a challenging task for retirees in 2026.
No Free Ride The government giveth and the government taketh away, as demonstrated by Washington’s tax treatment of Social Security benefits. Only taxpayers with a total income of less than $25,000 for individuals, or $32,000 for married couples filing jointly, receive their benefits tax-free. Above those
Instead of being hit by unpleasant surprises, you emerge with a plan! Many families tell me that just seeing all of this clearly for the first time is a huge relief. The rules may still be complicated, but at least they have a clear map for navigating them safely, with no surprises. And thanks to smart planning, every dollar saved feels like a victory.
levels, Social Security recipients must pay taxes at varying rates ranging as high as 85%, based on a specific income measure. To determine that measure, the IRS adds your adjusted gross income, nontaxable interest income, and half of your Social Security benefits.
Stacking the Deck While long-term capital gains from assets held more than a year can be taxed at a lower rate than ordinary income, the IRS has ways
If you want to shift from defense to offense in your retirement tax planning, contact us today for a complimentary consultation. We will be glad to help you map a winning strategy!
around that. Your tax brackets are determined first by your ordinary income, including wages, salary, and short-term capital gains.
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Stop the Swipe
STOP RUSHING, START WINNING
Tips for a Money Mindset Makeover
If you’re still feeling the financial sting of the recent holiday shopping season or struggle to pay off your credit card throughout the year, it may be time to rethink your spending routine. Most of us are guilty of impulsive shopping from time to time, but an occasional indulgence can become a dangerous habit if we’re not careful, especially with technology making it easier than ever to overspend. Here are three ways to curb the urge to splurge. Wipe your card info clean. There’s a reason why many apps and websites enable you to save your credit card information; it makes it easier for you to spend money! If you’re looking to reduce how often you experience the rush of an instant purchase, enter your payment manually every time you go to check out. The extra time it takes to do so may be enough to help you realize whatever you wanted a moment ago isn’t as necessary as you thought.
Mornings can make or break your day. For many of us, the day starts with rushing around, checking our phones, or feeling groggy and unmotivated. But New York Times bestselling author Mel Robbins approaches mornings differently. Her routine goes beyond strict discipline or complicated rituals and, instead, ventures into taking control of her day from the moment she wakes up. Here are four of her best tips to try. Start before you’re ready. One of the biggest lessons from Robbins is that you don’t have to wait to feel motivated. She uses her “5-4-3-2-1” countdown to get herself moving as soon as she wakes up. By forcing herself into action, she avoids getting stuck in hesitation. The key idea is that action creates momentum, and momentum carries you through the day. Build early wins. Robbins also emphasizes small wins in the morning. Making your bed, tidying up, or drinking a glass of water might feel minor, but these small actions give your brain an early sense of accomplishment. Completing even a few simple tasks first thing can make the rest of the day feel more manageable. Give yourself a moment. A unique part of Robbins’ routine is acknowledging herself in the mirror. She literally gives herself a high-five, which may feel a little strange at first. The point goes beyond just the gesture. It focuses on taking a moment to recognize yourself, determine your mindset, and start the day with a sense of confidence. Take care of your body first. Before checking emails or scrolling on her phone, Robbins focuses on her body. She hydrates, does light exercises, and exposes herself to morning light. These small steps help wake up the body and mind without letting outside distractions take over. Starting the day with this buffer gives you control, rather than letting the world dictate your pace. Robbins’ routine shows that how you begin the day matters. Even adopting one or two habits from her morning routine, like moving immediately after waking or tidying your space, can change the way your day feels. By starting with small, deliberate actions, you set yourself up to approach the day with focus and clarity. OWN YOUR MORNING BEFORE THE WORLD TAKES OVER
Choose paper over plastic. In addition to detaching your credit card
information from your phone or computer, consider separating your card from yourself when you leave to go shopping. Carrying cash instead of card is a helpful way to slow spending.
For one thing, it helps you maintain a set amount to shell out, which you’re reminded of as the dollars disappear. Second, cash doesn’t carry an interest rate. When you spend $4 on that cup of coffee you can’t resist, you’ll be out $4, not $4.80 when using a card that charges an additional 20%. Delay, don’t dive. There will always be purchases, such as tickets for a concert that sell out within minutes or a future flight that becomes pricier as your departure date approaches, that will require you to reach for your credit card as soon as possible. That said, there are infinitely more things that you simply don’t need … at least not right away. When you encounter something online or in a store that you must have now despite it not being a scarce item, give it at least a day (or, even better, a week) before making your final decision.
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COOK THE WORLD A Global Dinner Adventure Awaits
Are you tired of the same spaghetti night or pizza delivery? It’s time to shake things up and turn dinner into a family adventure. Instead of hopping on a plane, grab your aprons and “travel” the world through food. Each week, choose a country, find its most famous dish, and cook it together, no passports required! Step 1: Choose your destination. Begin your journey by selecting a country that excites everyone. Maybe your kids are obsessed with anime (hello, Japan!) or you’ve been craving something spicy from Mexico. Every culture has a dish that tells a story, like Italy’s cheesy lasagna, India’s vibrant butter chicken, and Greece’s fresh tzatziki and gyros. Choose one that feels doable and prepare to embark on a new flavor adventure. Step 2: Cook up some fun. Now it’s time to bring the world to your kitchen. Gather your ingredients, play music from the country you’re exploring, and assign roles. One person can chop, someone can stir, and someone else can handle the playlist (very important). Kids love getting hands- Mouthwatering Mini Cheesecakes
on, and it’s an excellent way to help them learn about teamwork, creativity, and patience. Talk about where the dish comes from, what people might traditionally serve with it, or how it’s eaten in that culture. Before you know it, your kitchen will smell like another part of the world. Step 3: Eat, share, and celebrate. When the food hits the table, make it special. Light a candle, add a little decoration, and let loose. Take that first bite together and talk about the flavors. What’s new, what’s surprising, and what’s delicious? Create a “family food passport” where you write down the country, the dish, and everyone’s rating or favorite moment. It’s a great way to remember your culinary travels. Step 4: Keep the journey going. Once you start, it’s hard to stop! Turn this into a weekly or monthly family ritual. Each dish brings a new story, a new skill, or a fresh memory. You’ll end up with full bellies and a collection of shared experiences that span the globe.
Take a Break
Ingredients • 12 oz package vanilla wafers • 16 oz cream cheese, softened • 3/4 cup white sugar
• 2 large eggs • 1 tsp vanilla extract • 21 oz can cherry pie filling
1. Preheat oven to 350 F. 2. In two 24-cup miniature muffin pans, line each space with a paper liner. 3. Using a food processor or resealable plastic bag, crush vanilla wafers into a fine crumb. 4. Press 1/2 teaspoon of crumbs into each paper liner. 5. In a mixing bowl, beat cream cheese, sugar, eggs, and vanilla until light and fluffy. 6. Fill each miniature muffin liner with this mixture, almost to the top. 7. Bake in the preheated oven for 15 minutes or until the cheesecakes are set. 8. Cool completely in the pan. 9. Top each mini cheesecake with about a teaspoon of cherry pie filling before serving. Enjoy! Directions
Inspired by AllRecipes.com
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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
The information published in this newsletter is educational in nature and is not intended to be a recommendation to sell or purchase an annuity or any specific insurance or financial product. You are strongly urged to consult with financial planning, tax, and legal advisors to determine if an annuity is suitable in your financial situation. The income doubler is not meant to replace Long Term Care insurance.
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INSIDE
1
Taxes in Retirement: What You Don’t Know Can Cost You
2 Break the Buy Cycle
Transformative Habits That Kickstart Your Day
3 Explore Cultures Through Family Meals Mouthwatering Mini Cheesecakes
4 Healing Through the Eyes of Awe
FINDING AWE IN THE ORDINARY In a world that races ahead at full speed, it’s easy to lose sight of wonder. We rush through our routines, scrolling, planning, and worrying, and rarely pause just to feel. But when we do stop long enough to notice the world’s quiet beauty, something remarkable happens: We experience awe. This emotion, which is part surprise, part and even promote compassion. It’s as if our minds momentarily reboot and remind us that life is vast and full of meaning beyond our daily concerns. THE EVERYDAY MAGIC THAT HEALS US
Standing beneath a star-filled sky or witnessing a child’s laughter can make us feel small, but not in a diminishing way. Instead, we sense our place in life. That feeling of belonging and connectedness nourishes emotional balance and strengthens our resilience. Encounter awe in everyday moments. You don’t need to climb a mountain or visit a famous landmark to experience awe. It’s waiting in the subtle corners of your day: the way sunlight dances on a wall, the sound of rain tapping on the roof, or how someone’s kindness catches you off guard.
Try taking a few minutes each day to slow down and look around. Step outside, watch the clouds, or listen to a piece of music that stirs you. When you allow awe to find you, you begin to reconnect with presence, gratitude, and joy. Awe heals because it reminds us that we’re part of something larger and endlessly unfolding. In moments of difficulty, wonder offers perspective and hope. It grounds us, opens our hearts, and helps us see clearly beyond fear or fatigue. So, pause today. Let a moment of awe find you and allow it to do its quiet, powerful work.
reverence, can shift our perspective, soothe our nervous system, and reconnect us with something larger than ourselves. Discover the magic of feeling awe. When we are captivated with awe, time seems to slow. Our thoughts, usually centered on our own problems and plans, suddenly expand to encompass the broader picture, which helps dissolve stress and boosts emotional well-being. Research indicates that awe can reduce inflammation, lower heart rate,
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