The Planning Zone

The Planning Zone

August 14, 2023

Information and Tools to Help You Build Your Financial Future

In the Know

Many people choose to continue benefits working in some capacity while receiving Social Security. However, if you’re younger than full retirement age and make more than the yearly earnings limit, your benefit will be reduced. Here’s how it works: if you are under full retirement age for the entire year, the Social Security Administration deducts $1 from your benefit payments for every $2 you earn above the annual limit (for 2023 that limit is $21,240). In the year you reach full retirement age, they deduct $1 in benefits for every $3 you earn above a different limit ($56,520 in 2023), but they only count earnings before the month you reach your full retirement age. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings. Check out the Social Security Administration’s Retirement Earnings Test Calculator for more information.

Inquiring Minds

Q: Will 401(k) loan appear on my credit report?

A: Loans from your 401(k) are not reported to the credit-reporting agencies. However, if you are applying for a mortgage, lenders will ask you if you have such loans and they will count the loan as debt. While taking out a loan from your 401(k) may seem to have a few advantages, you’ll lose out on the tax-deferred growth opportunity on the loan amount. Try to focus instead on building up an emergency savings account instead.

To-Do List

Midyear is a good time for an insurance checkup— and not just to make sure you’re getting the most competitive rates. For example, it’s a good idea to pull copies of your policy documents to ensure you have adequate coverage or conduct a review with your insurance agent, especially for property- casualty policies. In addition, review your retirement plan contribution rate this year (did you increase it like you promised yourself back on January 1st?) Make sure to contribute at least enough to receive the full employer match (if offered).

Financial Fitness

While higher inflation continues to be a major contributing factor toward market volatility in 2023, not everyone experiences inflation in the same way. You may find your expenses rising faster than your friend or family member in another part of the country (or slower than a neighbor or co-worker). Based on government data on inflation rates and spending patterns, Fidelity Investments identified four key factors that can make inflation different for everyone: where you live, how old you are, whether you rent or own and how much you drive.


We are happy to help, if you have any questions or would like additional insight, please feel free to reach out to me at joe@diversifiedfa.com or 800.307.0376.

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Disclosure: This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.  The information provided has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.

Securities offered through LPL Financial Member FINRA/SIPC. Investment Advice offered through Diversified Financial Advisors, LLC, a registered Investment Advisor and a separate entity from LPL Financial.

GRP-265-0523 (Exp. 05/24)