Interest rates. Inflation. Artificial intelligence. Global uncertainty. Market headlines.

The first half of the year brought plenty of news for investors to digest, and the second half will likely bring its own set of questions.

For retirees and those approaching retirement, these headlines often lead to a bigger question:

Is my retirement plan prepared for whatever comes next?

In this month’s Matt’s Minutes, Matt Curfman, CFP®, CEO & Co-Owner of Richmond Brothers, reflects on what financial freedom means in retirement and shares several areas our team is watching as we move into the second half of the year—including market volatility, interest rates, inflation, artificial intelligence, and important retirement planning conversations.

Timestamps

0:00 – Meet Theo, Matt’s newest economic assistant

0:45 – Reflecting on freedom and retirement

1:30 – Looking back at the first half of the year

1:35 – Market volatility and recovery

2:00 – Investment strategy updates

2:45 – Diversification and portfolio positioning

3:15 – Inflation, oil prices, and consumer spending

3:40 – Interest rates and the Federal Reserve

4:25 – Artificial intelligence and corporate earnings

4:56 – Market uncertainty and upcoming headlines

5:15 – Beneficiary and estate planning conversations

5:20 – Medicare and healthcare planning reminders

5:35 – Final thoughts

(Full transcript below)

What Does Financial Freedom Mean in Retirement?

As we celebrated Independence Day and reflected on 250 years of freedom, it’s also a good reminder that freedom can mean something different during retirement.

For some, it may mean freedom from the alarm clock or a demanding work schedule.

For others, it may mean having more time with family, traveling, volunteering, pursuing hobbies, or spending time on the things that bring joy and fulfillment.

Financial planning is about more than numbers. It’s about creating a plan designed around what you want your retirement years to look like.

Looking Back at the First Half of the Year

The first half of the year included plenty of noise, uncertainty, and market movement.

Global events, economic updates, and changing headlines can create short-term volatility. Earlier this year, we saw markets react quickly to uncertainty before recovering as conditions evolved.

Periods like these are reminders of why your investment strategy should connect back to your overall retirement plan.

For someone already retired and taking income, market changes may feel very different than they do for someone still saving and accumulating assets.

That’s why we continue focusing on helping families build plans based on their goals, income needs, risk tolerance, and long-term priorities.

Investment Strategy and Diversification Updates

One area we continue focusing on is providing access to a broader range of investment strategies.

Through our relationship with AE Wealth Management and Fidelity, many client accounts now have access to additional investment options and strategies while remaining within their existing Fidelity accounts.

Diversification continues to be an important part of the planning process.

That may include different types of investments, asset classes, company sizes, sectors, and strategies designed to work together based on each family’s unique situation.

What We’re Watching in the Second Half of the Year

While no one can predict exactly what will happen next, there are several areas our team continues to monitor.

Inflation, Oil Prices, and Consumer Spending

Inflation remains an important topic, especially when looking at areas such as energy prices.

When costs increase for necessities like fuel, transportation, and groceries, families may have less flexibility in other areas of their budgets.

Because consumer spending plays an important role in the economy, these trends are something we continue watching.

Interest Rates and the Federal Reserve

Interest rates continue to be another major focus.

Federal Reserve decisions can influence borrowing costs, businesses, consumers, and overall market expectations.

Changes in interest rates often create headlines, but it’s important to evaluate those changes within the context of your personal financial plan rather than reacting to short-term news.

Artificial Intelligence and Corporate Earnings

Artificial intelligence continues to have a significant influence across many industries.

Companies continue investing in AI technology, and investors are watching whether business growth and earnings support those investments over time.

Innovation can create opportunity, but it’s also important to stay disciplined and evaluate how any investment theme fits within a broader portfolio strategy.

Retirement Planning Goes Beyond Investments

Markets often get the headlines, but your retirement plan includes much more than your portfolio.

The second half of the year can also be a good time to revisit other important areas, including:

• Beneficiary updates
• Estate planning conversations
• Medicare decisions
• Healthcare planning
• Long-term care and chronic illness considerations

A strong retirement plan should bring all of these pieces together.

Key Takeaways

• The first half of the year included market movement and changing headlines.
• Volatility is a normal part of investing.
• Inflation, interest rates, artificial intelligence, and global events remain important areas to watch.
• Your retirement plan should be built around your goals, not short-term headlines.
• Income, investments, taxes, healthcare, and legacy planning all work together when preparing for retirement.

In Closing

Every year brings new opportunities, challenges, and decisions.

There will always be another headline, another market question, and another unknown.

Our focus remains helping families understand how those changes fit into their bigger retirement picture.

At Richmond Brothers, we are grateful for the opportunity to educate, inform, and guide the families we serve while helping them live fearlessly into and beyond retirement.

The commentary in this video reflects the personal opinions, viewpoints, and analyses of Richmond Brothers employees and should not be regarded as advisory services provided by Richmond Brothers. Statements are subject to change without notice. Any mention of securities or market performance is for illustrative purposes only and does not constitute a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Richmond Brothers, Inc. does not provide tax advice; please consult your tax professional regarding your specific situation.

Full Transcript

Hi, everyone. Matt Curfman, CFP®, CEO & Co-Owner of Richmond Brothers here with- Wait, you’re not Oliver! This is our new puppy, Theo. Theo is about 11-12 weeks old. He’s also a doodle mix, which bodes well for my allergies. I’ve had a lot of questions from some of you, so I wanted to introduce him. Oliver, our other dog is at the groomer this morning, so I wanted to take this opportunity to introduce Mr. Theo. Say hi, buddy. He’s going to be really good at economic forecasts and talking to my clients and our family members as well. All right, thanks for indulging me.

We’re now entering into July, the second half of the year. I hope you all had a great Fourth of July, extended holiday weekend and got together with maybe friends or families and, just thinking about the word freedom. 250 years of freedom.
For those of you that are retired, freedom can have a different definition in your own life. Freedom, from the alarm clock, maybe. Freedom from an incredibly busy schedule that you might have had when you’re working, you now have freedom to hopefully do things that fill you up with joy and happiness, and freedom to spend more time with family, maybe volunteering.
So just kind of a little bit of reflection on freedom. We are absolutely grateful to be able to be on this financial journey with each and every one of you and honored to have that opportunity.

So from an economic standpoint, halfway through the year, as of, marking June 30th, there was a lot of noise and volatility in the first half. Back in March and April, as the Iran war In, the U.S. ensued, we ended up in another V shaped market where markets dropped because of news. And then there was potential that the war was going to wind down. All kinds of headlines.
Markets have recovered from that. So again, a V shaped market was created. For those of you in the past that had used our smoother ride strategies through Beacon, if you remember, we overrode those defensive triggers, which was a really good decision. And we’ve now moved forward, with a much more diverse set of options and holdings within your Fidelity accounts, partnering with AE wealth through Fidelity.

And again, all it is is a conduit to allow us to access a lot more strategies on the same accounts that you already have. And, one strategy in particular we’re really liking. This cycle of the market has kind of some large cap growth and value, has some mid cap and some small cap all baked into one with some individual stocks. And also, ETFs (exchange traded funds). And so that’s also boding, very well. So, when I look at broad markets, just the risky market side of your portfolio in general, if you look at the Dow Jones and S&P for the first six months, higher single digits, as far as what we’re seeing, the Nasdaq, which is a little more technology, heavy, was low double digits.
And so, one thing I’m very aware of, we’re very aware of, is we’re not out of the woods with Iran yet. There is still ongoing uncertainty with what happens there. We’ve obviously seen spikes in oil prices, which means paying more at the pump. And as oil prices go up, it acts as almost like a tax to all of us as consumers because things just get more expensive.
Food, transportation, everything gets more expensive. And so to the extent that we can afford that, we keep spending, but we certainly have to cut in other areas. When you look at groceries and food and fuel.

So what else is coming up? I mentioned last month, we have a new Federal Reserve chair.
And so as inflation is higher, it is possible that at some point in the second half of the year, the Federal Reserve actually raises rates, not lowers them. I think initially, if you go back in time, when rates get increased from the Federal Reserve, you tend to have an initial shock to the markets because generally everyone wants lower rates because that means borrowing money is cheaper.If rates go up, that means borrowing money is more expensive and therefore less businesses and individuals tend to do it. So I think keeping an eye on what the Fed does with interest rates, the impact of inflation, especially with higher oil prices, will still continue to be an ongoing piece for the second half of this year.

And then artificial intelligence continues to have a strong influence. There’s a lot of spending, a lot of investment. And then the question is, do the earnings underneath that support those investments and also the stock prices? So, most of consensus that we’re seeing so far suggests that earnings are very strong and supporting, the higher stock prices.
So that doesn’t mean you can’t have, a 5 or 10% correction at some point. The other uncertain piece, the second half this year, will be midterm elections in the fall. And just a lot of noise. There’s so much noise. The noise itself almost gets exhausting. So we are here to help cut through that, help you with your investment allocations tied into your retirement income plans.

Ultimately, we also have talked a lot with many of you on district visiting kind of beneficiary and estate planning reviews to see what kind of guidance and support you might need. In the fall, we’ll also have a Medicare presentation. And for those of you who need help or, 64 about to turn 65 or getting ready to enroll, we also have a team that can set virtual meetings with you, one on one, to go through your Medicare options.
So just kind of keep that on the radar. And then also long term, chronic illness planning as well.

So thank you so much for, just your confidence and continued trust as we head into the second half of this year. Wish you nothing but the best, and we are here to help guide you on your financial journey and honored for that opportunity.