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Vol. 79, No. 5, September 2025

FEATURED ARTICLES

The Social Security Fairness Act is Now Law - What to Do
David G. Freitag, CLU, ChFC, CRPC
Bruce A. Tannahill, JD, CPA, AEP
The Social Security Fairness Act repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which reduced Social Security benefits for people entitled to government pensions based on government earnings not subject to Social Security tax. This Act, effective retroactively to benefits payable for January 2024 and later, can significantly increase Social Security benefits for those affected. Those individuals should review their retirement income projections and determine what, if any, changes they want to make.

Are Individuals' Lifestyle Choices and Political Party Affiliation Associated with ESG Factor Investing?
Matthew Sommer, PhD, CFP, CFA
Timothy M. Todd, PhD
HanNa Lim, PhD, CFP
Political rhetoric and popular belief have led to assumptions about the relationship between lifestyle choices and political affiliation when incorporating ESG factors into investment decision making. Using data collected from 4,479 retail clients of a large U.S. asset manager, this study critically examined those beliefs and assumptions. A multiple regression analysis found a positive relationship between certain lifestyle choices—including driving a hybrid or electric vehicle, buying food from locally grown and organic suppliers, and supporting socially responsible companies through informed spending decisions—and having incorporated ESG factors into investment decisions made within the last 12 months. Contrary to this study’s hypotheses, however, no relationship was found regarding political party affiliation and the moderating effects of political party affiliation were largely insignificant.

Examining the Impact of Financial Advice on Financial Confidence
Innocent S. Kumah
Michael Guillemette, PhD, CFP
The focus of this study was to empirically determine how financial advice impacts consumers' financial confidence and ascertain the channels by which financial advice consumers judge the quality of financial advice. The National Financial Capability Survey data were used for the analysis. The multivariate regression results demonstrated a positive correlation between obtaining financial advice and increased financial confidence. The data analysis also showed that registration with appropriate authorities and licensing of financial advisors could be a key signal of quality and a source of confidence to consumers of financial advice. The findings emphasize the importance of improving access to quality financial advice to enhance individuals' and households' financial capability and effectiveness.

DEPARTMENTS

Editor’s View
Resources for Older Clients
Kenn Beam Tacchino, JD, LLM
Older clients can use more than the professional and thoughtful financial planning advice that you provide. Sometimes they also need a helping hand unearthing useful information about daily questions. They may be looking for a ride to the doctor because they gave up their license, or they may want to change the bank routing number for Social Security deposits after a move or a death. They may have questions about how technology can keep them better connected and improve their quality of life, or they may need adaptive services to assist them with hearing loss or vision problems. Fortunately, we live in a wonderful society that assists those in need, though many do not know how to find the assistance they require.

Entrepreneurship
Five Overlooked Data Sources Small Business Owners Can Use to Make Smarter Decisions
Kevin Tacchino, MSTFP
Planners work with small business owners who wear multiple hats and make decisions daily that affect the trajectory of their business. While larger companies have teams dedicated to data analysis, small businesses often make choices based on instinct, experience, or short-term cash flow needs. But in a digital world, even the smallest business is collecting data through its website, sales systems, inventory tools, and customer relationships.

Financial Gerontology
Financial Gerontology in Uncertain Times
John N. Migliaccio, PhD, RFG, FGSA, MEd
Some levels of risk, uncertainty, and volatility are inherent in every aspect of life but may be particularly important for those making retirement income decisions who are nearing or in retirement. How financial advisors and clients prepare for risk (if possible) and respond to it (if it happens) is a critical component of effective financial planning and lifetime income adequacy. Whether unplanned changes develop from national or international economic conditions, unanticipated local or global challenges, or personal/family disruptions, working with clients to help clarify goals, identify options, and create a framework for the future is of paramount importance. Successful strategies, created and applied from past experiences in unsettled times, can be used to engage the client and financial professional in a productive and mutually beneficial process of reexamination and refocusing on long-term financial and personal success.

Long-Term Care Insurance
Why Caring Matters—The Return of the Boomers
Ronald R. Hagelman, Jr., CLTC, CSA, LTCP
The aging boomer generation is creating a looming crisis in long-term care (LTC) needs, with millions set to require custodial care in the coming decades. The long-term care insurance (LTCI) market, which evolved significantly since 1997, is now facing mounting challenges as boomers approach their care needs. As more boomers reach their 80s, their need for care will skyrocket, placing stress on the healthcare system. While some boomers have insurance, many will face claim management hurdles, especially with the growing reliance on third-party administrators. Advisors are urged to focus on planning for future care costs, as family caregivers will bear a heavy burden without proper preparation. The future of LTCI hinges on creating sustainable strategies that prioritize both care quality and fnancial security for aging Americans.

Practice Management
The Intersection of Medicaid Spend-Down Planning and Long-Term Care Insurance Partnership Policies
Douglas B. Richards, JD, MBA, CLU, CFP
This column provides a detailed overview of Medicaid spend-down planning, a financial strategy used when individuals require long-term nursing home care but have too many assets or too much income to initially qualify for Medicaid. It explains Medicaid’s role as a joint federal-state program and outlines eligibility criteria, including asset and income limits. A practical case study demonstrates how to calculate spend-down amounts, shortfalls, penalty periods, and how to use Medicaid-compliant annuities. The column also explores the interaction between Medicaid and long-term care insurance partnership policies, which allow individuals to protect a portion of their assets equal to the benefits received. A comparison of various long-term care benefit levels illustrates the trade-offs in planning strategy. Finally, the column underscores the importance of early and informed planning.