When planning for retirement, most people focus on investment performance, market trends, and long-term financial goals. However, one of the most important factors in building a successful retirement strategy is often overlooked. That factor is how your financial advisor is paid. Understanding financial advisor compensation can make a significant difference in your retirement savings, investment returns, and overall financial confidence. Advisor fees and commissions affect how much of your money stays invested and how much is deducted over time. At Jacobs Financial Services, we believe every investor deserves transparency. Below, we explain the difference between fee-based advisors and commission-based advisors, and why the way your advisor is compensated truly matters. How Are Financial Advisors Paid? Financial advisors are generally compensated in one of two ways: Each model impacts your retirement account differently, especially over the long term. The Fee-Based Advisor Model Many retirement planning firms operate under a fee-based structure,

Annuities tend to spark strong opinions — and a lot of confusion. But when you strip away the noise, annuities are simply insurance contracts designed to help create predictable income, often for life. A recent Kiplinger piece highlighted several common myths that keep people from evaluating annuities clearly. Here’s what Jacobs Financial Services wants you to know — and what to ask before you decide if an annuity belongs in your plan. Myth 1: “Annuities are too complicated” Reality: There are multiple types of annuities, which can make the category feel overwhelming. But the core concept is straightforward: you purchase an insurance contract that can provide income for a period of time or potentially for life. Jacobs Financial Services take: Complexity isn’t a reason to avoid an annuity — it’s a reason to slow down. If an annuity is being recommended, you should be able to explain (in plain English)

If you are turning 73 this year, this message is for you. The IRS may require you to take your first Required Minimum Distribution (RMD) from pre-tax retirement accounts, such as a Traditional IRA. Missing an RMD can lead to costly penalties—so it’s important to plan ahead. What Is a Required Minimum Distribution (RMD)? A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from certain retirement accounts once you reach the required age. RMDs apply because these accounts are generally funded with pre-tax dollars, meaning withdrawals are typically taxable income. Who Needs to Take an RMD at Age 73? If you’re turning 73 this year, you may need to start RMDs from pre-tax retirement accounts, including: Roth IRAs generally do not require RMDs for the original owner. First RMD Deadline: Don’t Get Caught Off Guard Your first RMD has a specific deadline,

Entering retirement is a major milestone. After years of saving and investing, your focus shifts from building wealth to protecting retirement savings and creating a reliable income. For many retirees, however, the early years of retirement introduce risks that are often underestimated—and can have lasting financial consequences. 1. Longevity Risk: Outliving Your Retirement Income One of the most significant retirement risks is longevity risk, or the possibility of living longer than your retirement savings were designed to last. According to the Social Security Administration, a 65-year-old today can expect to live, on average, to about age 84 or 85. Importantly, many retirees—especially couples and healthy individuals—will live well beyond that average, potentially into their 90s (SSA Actuarial Life Table, 2024). Research from the TIAA Institute shows that retirees often underestimate how long retirement may last, which can result in income strategies that fall short later in life. How to manage