What’s Inside This Issue
Financial planning touches every stage of life. This summer’s newsletter from Locker Financial Services covers four topics our clients ask about most. Each one matters. Together, they tell a complete story about protecting your family, funding education, and preparing for retirement with confidence.
Estate Planning for Complicated Family Situations
Life doesn’t always follow a straight line. Divorce, remarriage, blended families, and children with special needs all create estate planning challenges that require careful thought.
If you are divorced, updating your beneficiaries is a top priority. Your last will, trusts, durable power of attorney, and healthcare proxy all need review. Minor children add another layer. Until your children turn 18, a court-appointed guardian may manage inherited funds. A trust with a named trustee — a grandparent, aunt, or godparent — can protect those assets and your intentions.
Remarriage brings its own complexities. Without a prenuptial agreement, your current spouse may have legal claim to up to half your estate. Trusts such as a marital trust, QTIP, or irrevocable life insurance trust can provide income for a surviving spouse while preserving assets for your children.
Parents of a child with special needs face an additional concern. An inheritance could unintentionally disqualify a child from Medicaid or other essential benefits. A special needs trust addresses this directly. It protects benefit eligibility while providing for quality of life — including special trips, therapeutic lessons, and enriching activities.
For parents worried about a financially irresponsible adult child, a spendthrift trust or incentive trust gives you control. A trustee can distribute funds in installments, set conditions, or direct money toward specific purposes like education.
Estate planning in these situations is not simple. It does require a plan. Our team is available to walk through your specific circumstances. Learn more about our fee-only financial planning services.
Paying for College Without Student Loans
The average annual cost of a public university for the 2025–26 school year is $30,990. A private university runs $65,470. Graduating with significant debt is a real concern for many families.
There are alternatives worth considering. Scholarships remain an underused resource — seek them out based on a wide range of criteria, not just academics. Working full-time in the summer and part-time during the school year can offset meaningful costs. Some employers offer tuition reimbursement as a benefit, making it worth factoring into career decisions.
Attending part-time while working full-time is another path. Taking additional classes each semester may also allow for an earlier graduation date. Summer tuition is often less expensive than other semesters.
Starting to save early matters. The longer you wait, the more you need to set aside each year to reach the same goal. Even accumulating 30% to 50% of projected costs makes a real difference. Explore our college savings planning resources.
Growing Your 401(k) Plan
Two factors determine the size of your 401(k) at retirement — how much you contribute and what you earn on those contributions. In 2026, the contribution limit is $24,500, with an additional $8,000 catch-up for those over 50.
Beyond contributions, a few habits make a real difference over time.
Take the Match
Always contribute at least enough to capture your employer’s full matching contribution. A 50% match is the equivalent of a 50% return on your money in the first year. Leaving it on the table is leaving money behind.
Rebalance Periodically
Rebalancing reduces volatility and keeps your portfolio aligned with your goals. It follows a basic principle — buying lower-priced assets and trimming those that have grown. Because 401(k) accounts are tax-deferred, there are no tax consequences for trades made inside the account.
Limit Company Stock
No single stock should represent more than 5% to 10% of your portfolio. Check how much company stock you currently hold and adjust accordingly.
Avoid Borrowing From Your 401(k)
Loans from your 401(k) carry hidden costs. Money pulled out stops compounding. If you leave your employer with a loan outstanding, the full balance typically must be repaid quickly — or it becomes a taxable distribution.
Contact us to review your investment strategy.
Overcoming Five Retirement Fears
Retirement concerns are common. Most are manageable with the right preparation.
Outliving Your Money
A general guideline: save eight times your annual salary by retirement. Working backward — one times your salary by 35, three times by 45, five times by 55. The right number depends on your individual plans, health, and goals. A written retirement plan, revisited regularly, keeps you on track. Our retirement planning page offers more detail.
High Inflation
Inflation can erode purchasing power, especially over a long retirement. A properly diversified portfolio includes assets that respond differently to inflation. Annual reviews of your investment strategy help you stay ahead of changing conditions.
Unexpected Medical Expenses Before Retirement
Disability and life insurance are essential safeguards. A disability that eliminates your income before retirement can derail years of savings. Life insurance protects a spouse who depends on your earnings to fund their own retirement.
Healthcare Costs in Retirement
Healthcare is often the largest expense retirees face. Medicare covers a significant portion, but copays, gaps in coverage, and expenses beyond policy limits add up. Private supplemental insurance and a dedicated rainy-day fund both play a role in a sound retirement plan.
A Market Crash
Diversification does not eliminate market risk. It does reduce the damage. As retirement approaches, shifting from a heavier equity allocation toward bonds and more stable investments is a standard part of sound planning.
Ready to Talk Through Any of These Topics?
The issues covered in this newsletter — estate planning, college costs, 401(k) growth, and retirement fears — all connect. Each decision affects the others. That is why Locker Financial Services takes a comprehensive approach to every client relationship.
Lauren Locker, CFP® and Andrew Chan, CFP®, CIMA® are available to help you build a plan that addresses all of it. Our firm is fee-only and fully fiduciary, which means our advice is always in your best interest — not tied to any product or commission.
Call 973-256-2555 or Contact Us To Speak With A Fee-Only Financial Planner
Some articles in this newsletter were prepared by Integrated Concepts, a separate, nonaffiliated business entity. This newsletter intends to offer factual and up-to-date information on the aspects discussed, but should not be regarded as complete or accurate. Professional advisors should be consulted before implementing any options presented. No party assumes liability for any loss or damage resulting from errors, omissions, or reliance or use of this material.