This week Jim and John discuss the recent market correction, and how making investment decisions based on fear can be hazardous to your financial health. Jim notes that corrections of 10% or more are a normal and healthy part of every market cycle. The difference today is that it has been four years since a major correction. The damage of acting out of fear and selling out during a correction can be both psychological and financial. Once you have sold, the consequences of taxes on any capital gains are unavoidable. And if the market rallies off the lows, it makes getting back into the market difficult psychologically at higher levels. They also discuss the real life benefits of having a financial plan through the case study of Bill and Barbara Smith. The guest this week is Yolanda York, Social Security Public Affairs Director in San Diego County. Yolanda and Jim discuss current Social Security topics, including new rules that may increase the cost of Medicare Part B premiums next year by 52% for nearly a third of Medicare recipients, as well as those that are eligible for Medicare in 2016, but have not yet filed for Social Security benefits.
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