Upticks: 5 Retirement Myths That Could Be Costing You Clarity
By Luke Sullivan on November 13, 2025
Discover the truth behind five common retirement myths with Jake and Cory. Learn why Social Security, Medicare, taxes, investment strategies, and estate planning may not be what you expect—and ways to plan for more clarity and confidence in retirement.
Click here to subscribe to our newsletter!
Click here for your complimentary ‘Retiring Right’ ebook
Read an overview of the conversation below
Myth 1: Social Security Will Cover Most of My Expenses
Many retirees believe Social Security will be their primary source of income, but this is a misconception. As Jake notes, “Social Security is really designed to replace about 40% of your salary when you go to retire. For high income earners, it’s even less because they get capped out.” The reality is that Social Security is intended as a safety net, not a lifestyle replacement. In our experience, many clients planning for a comfortable retirement find Social Security makes up an even smaller percentage of their income.
It’s important to recognize the window for claiming Social Security benefits—from age 62 to 70—and to understand that maximizing benefits requires careful planning. Jake emphasizes, “Any politician that would let Social Security run out of money would get voted out of office as soon as possible and then it would just get reinstated.” While funding challenges exist, Social Security is funded through payroll taxes and isn’t likely to disappear, but it may not cover all your expenses.
The key takeaway is to build a financial plan that doesn’t rely solely on Social Security. “You need a plan and make sure that you understand the impact that it could or couldn’t have,” Cory adds. Consider Social Security as a base income and supplement it with savings, investments, and other retirement income sources.
Myth 2: Medicare Will Take Care of All My Health Care Needs
Medicare is a valuable resource, but it doesn’t cover everything. Jake points out, “Dental, vision, hearing, and long-term care are not covered by Medicare.” Many retirees are surprised by out-of-pocket costs for these services. Medicare isn’t free, and there are additional fees, such as IRMAA, that can increase costs for higher-income retirees.
Jake recommends consulting a health insurance agent for guidance: “We’re glad to refer that business out, because we don’t try to be all things to all people.” Kiplinger reports that 70% of retirees age 65 and older may need some form of long-term care, but buying insurance isn’t always the answer. Falcon Wealth Advisors prefers to budget for potential care needs from normal cash flow before recommending additional insurance.
Healthcare remains a significant part of retirement planning. “Don’t think that once you turn age 65 that healthcare is no longer a factor as far as your cash flow and your financial plan goes,” Cory says. Plan for gaps in coverage and consider how changing expenses may affect your retirement budget.
Source: Kiplinger | As of: 10/28
Myth 3: I Won’t Owe Taxes in Retirement
A common myth is that taxes disappear in retirement. Cory dispels this: “You do continue to pay taxes in retirement. In fact, I would argue that taxes are the most significant expense that most people have in retirement.” Retirement income from IRAs, 401(k)s, pensions, and even Social Security can be taxable, and tax planning is essential.
Jake highlights the importance of tax diversification: “My clients that have healthy brokerage accounts… can better control their tax bracket every year.” Having a mix of taxable, tax-deferred, and tax-free accounts allows retirees to manage withdrawals and minimize taxes. Tax planning isn’t a one-time event—it must be revisited annually as tax codes and personal circumstances change.
Many retirees don’t drop into a much lower tax bracket, and failing to plan can result in higher taxes than expected. “You want to structure your accounts properly so you’re not unknowingly pushing yourself into a higher tax bracket in retirement,” Cory explains. Work with advisors who prioritize tax planning to help maximize your retirement income.
Myth 4: I Should Play It Safe with All My Investments
Retirement isn’t the finish line for investing. Jake observes, “A lot of people look at retirement as the finish line. I’ve heard this: ‘I can’t be in that stock market, I’m retired.’” While risk tolerance is important, risk capacity—how much risk you can actually take—is often misunderstood. Cory explains, “Your risk tolerance and your risk capacity are two different things.”
Playing it too safe can put your future at risk due to inflation and longevity. Falcon Wealth Advisors recommends balancing growth and stability: “We want to make sure we have at least five, if not 10 years’ worth of distributions in laddered investment grade bonds, with some cash component as well.” This approach helps provide liquidity and allows for rebalancing during market downturns.
Jake stresses the importance of planning: “Money is emotional. But that doesn’t mean you need to make your decisions based on that emotion.” Advisors should acknowledge emotions but help clients make rational, mathematical decisions. The right investment strategy balances risk and reward to help ensure long-term financial security.
Myth 5: Estate Planning Is Only for the Wealthy
Estate planning isn’t just for millionaires—it’s for everyone. Cory states, “Estate planning is for everyone. It’s not just for the wealthy. If you don’t have an estate plan, you do have an estate plan, and you’re probably not going to like it.” Even simple steps like updating beneficiaries can prevent costly mistakes and family drama.
Trusts and wills aren’t reserved for the ultra-wealthy. “A trust is really, broadly speaking, designed to do three things: protect your heirs if they ever get divorced, protect them from lawsuits, or if they ever have to file bankruptcy,” Jake explains. Wills still require probate, which can be lengthy and expensive. The right estate plan provides clarity and protects what matters most.
Jake and Cory recommend starting estate planning early: “My wife and I… have a family trust because I want to have things set up properly to protect.” It’s never too early—or too late—to help ensure your wishes are clear and your loved ones are protected. Work with professionals to create a plan that fits your needs.
Thank you for tuning in, we hope you have a great week!
