Should You Make Extra Mortgage Payments or Invest?

Your Claiming Age Matters You can start Social Security as early as age 62, but doing so permanently reduces your benefit—often by 25% to 30% . Claiming at your Full Retirement Age (typically between 66 and 67) provides your full benefit, while delaying until age 70 increases your payout by roughly 8% per year . Source: Kiplinger . For many retirees, delaying benefits—when possible—can meaningfully increase long-term financial stability, especially when factoring in rising life expectancies and inflation. Why Some People Claim Early Starting benefits at 62 may be the right choice in certain situations. You might decide to claim early if you need income immediately, have health concerns, or are coordinating benefits that depend on your retirement age—such as those for minor children. However, early claiming permanently reduces your monthly payment and may affect survivor benefits for your spouse. The Power of Delaying Delaying Social Security beyond your Full Retirement Age increases your monthly income for life. Fidelity notes that a higher starting benefit also leads to larger annual cost‑of‑living adjustments (COLAs), strengthening your long‑term retirement security. Source: Fidelity . Don’t Forget Spousal and Survivor Benefits Social Security is not just an individual benefit—it protects families too. The age you claim can influence what your spouse or surviving spouse receives. Coordinating benefits can help maximize long-term income for both partners. Source: Justia . Working and Taxes If you plan to work before reaching your Full Retirement Age, some of your benefits may be temporarily withheld if you earn over certain limits. Once you reach FRA, the earnings test goes away and your benefit is adjusted upward. Additionally, depending on your overall income, up to 85% of your Social Security benefit may be taxable. Source: Consumer Financial Protection Bureau . What’s the Best Age to Start? There is no universally “right” age to begin Social Security. Factors such as your health, savings, marital status, retirement goals, and expected longevity all play a role in determining the best timing for your situation. A personalized strategy can help you maximize the lifetime value of your benefits. Common Question: Should I Take Social Security Early or Wait? Q: How do I decide between taking Social Security at 62 or waiting until 67 or 70? A: It depends on your individual circumstances. Taking benefits early may make sense if you need income now or have a shorter life expectancy. Waiting until Full Retirement Age—or delaying to age 70—results in a larger monthly benefit, which may provide greater long-term financial security, especially if you expect to live longer or want to maximize survivor benefits for your spouse. Source: Kiplinger . Talk With Us About Your Strategy Choosing when to start Social Security can significantly impact your retirement income. If you’d like help evaluating your options or creating a strategy tailored to your unique situation, reach out to Harvest Financial Group. We’re here to help you make the most of your benefits and your retirement years.

Last quarter delivered a mix of conflicting signals. Economic activity cooled, geopolitical tensions between the U.S. and Iran disrupted energy markets, yet equity markets pushed sharply higher (Source: Reuters, 2026) . This contrast shaped much of what unfolded throughout the period. After a stronger‑than‑anticipated bounce in growth during the first quarter of 2026, most analysts expected momentum to slow. Inflation progress stalled, and expectations for accelerating growth faded (Source: Bureau of Economic Analysis, 2026) . Even with these uncertainties, the Federal Reserve maintained its restrictive policy stance and indicated that rate cuts were nowhere near the discussion table ( Source: Federal Reserve June Statement, 2026) . Despite these headwinds, stocks continued to climb. Earnings results remained solid, and investors maintained strong demand for companies positioned as long‑term winners, particularly within technology and AI (Source: S&P Global Earnings Report, 2026) . Major U.S. Stock Indices The S&P 500 advanced 14.87% (Source: Bloomberg Markets, 2026) . The Nasdaq 100 jumped 27.53% (Source: Nasdaq Quarterly Summary, 2026) . The Dow Jones Industrial Average increased 12.90% (Source: Dow Jones Market Data, 2026) . Both the S&P 500 and Nasdaq posted their strongest quarterly gains in several years. The primary catalyst was consistent earnings strength, as corporate results repeatedly exceeded expectations (Source: FactSet Earnings Insights, 2026) . With each upward surprise, analysts pushed forecasts higher for the second quarter and the remainder of the year. Growth: Cooling From a Hot Start At the start of Q2, positive data hinted at strong momentum, but that enthusiasm faded as the quarter progressed. Household spending and income rose modestly, while savings remained thin, suggesting resilience supported by a fragile financial cushion (Source: Federal ReserveConsumer Conditions Report, 2026) . Growth remained strong enough to sustain earnings but not strong enough to ease inflation concerns. Meanwhile, energy and shipping disruptions linked to the U.S.–Iran conflict continued to challenge supply chains (Source: U.S. Energy Information Administration, 2026) . In fl ation: The Last Mile Gets Harder After meaningful disinflation in 2024 and 2025, expectations entering 2026 centered on inflation drifting closer to the Fed’s 2% target. Q2 challenged that narrative. Headline inflation firmed again, largely due to swings in energy and other volatile segments, while core inflation held stubbornly above target (Source: U.S. Bureau of Labor Statistics CPI Report, 2026) . Wage pressures and rising input costs persisted, and businesses continued passing those costs through to consumers when possible (Source: National Federation of Independent Business, 2026 ). This environment limited the Fed’s flexibility and made rate cuts improbable. The Fed: Hawkish Patience, Not a Pivot The Fed’s June meeting set the tone for the quarter. Under new chair Kevin Warsh, policymakers left rates unchanged but emphasized that policy remains restrictive (Source: Federal Reserve Minutes, June 2026) . Officials reiterated that inflation remains elevated and that additional hikes are possible if progress stalls. The message was clear: The Fed is willing to tolerate slower growth if that’s what it takes to get inflation under control. Key Moments in Q3 Worth Watching Updated estimates and revisions for Q2 GDP will provide a clearer picture of economic momentum (Source: BEA Advance GDP Estimate, 2026) . CPI, PCE, and labor market updates will also remain critical to understanding how quickly inflation may ease. Several upcoming Fed meetings will offer additional insight into how the Warsh-led Fed intends to navigate the balance between slowing growth and persistent price pressures. We Are Here for You The past quarter demonstrated how far markets can advance even when economic signals are mixed. I will continue monitoring developments closely and am always available if you’d like to discuss how these shifts may affect your financial strategy. If you’re considering a portfolio review or have questions, please feel free to reach out.

This time of year offers a valuable chance to assess your finances before the calendar turns. With fewer than 100 days left in 2026, taking a closer look at your financial plan can help you stay organized, protect long-term goals, and enter 2027 feeling prepared. Even small updates can deliver meaningful impact without requiring major changes to your routine. A year-end financial checkup gives you an opportunity to strengthen your strategy, revisit key accounts, and ensure your decisions continue to support your evolving priorities. From retirement contributions to cash savings, budgeting, and estate considerations, a thoughtful review can help you take advantage of opportunities before December 31. Review Your Retirement Contribution Levels As the year winds down, retirement savings are one of the most important areas to revisit. Because contribution limits reset each calendar year, the final months of 2026 offer a last chance to increase deposits if you are hoping to maximize tax-advantaged savings. For 2026, the 401(k) contribution limit is $24,500, and adults aged 50 and older can make additional catch-up contributions. IRA contribution limits have also increased, with individuals under 50 eligible to contribute up to $7,500, and those qualifying for catch-up contributions allowed up to $8,600. Boosting your contributions—even slightly—can create significant long-term benefits. If you expect a bonus, commission payout, or other additional income at year-end, directing a portion of that money to your retirement accounts may enhance your long-term goals and, depending on the account type, potentially support tax planning efforts. Check Retirement Accounts from Past Employers If you have changed jobs over the years, you may have retirement accounts scattered across previous employers. These accounts can be easy to overlook, and over time it may become challenging to monitor whether older investments still align with your current risk tolerance and retirement strategy. The end of the year is an ideal time to review these accounts and consider whether it may be useful to combine them. Consolidating retirement assets can simplify your financial organization, reduce administrative complexity, and help you monitor overall progress more easily. Still, it is important to evaluate rollover choices carefully. Each type of account comes with its own investment options, tax rules, and withdrawal guidelines. Seeking guidance from a financial professional can help ensure that any decisions you make support your broader financial goals. Evaluate Your Approach to Cash Savings Many people are reassessing their cash strategy, especially as interest rates remain higher than in recent years. Reviewing where you keep short-term savings may reveal opportunities to earn more while still preserving liquidity. Depending on your situation, you may want to explore options such as high-yield savings accounts, money market accounts, certificates of deposit (CDs), Treasury bills, or other cash-management tools. These choices can help support emergency savings, near-term purchases, and other short-term needs. As you compare alternatives, consider factors such as access to funds, account requirements, potential fees, and any limitations on withdrawals. The best option is one that matches both your comfort level and the financial needs you expect over the coming months. Assess Your Budget Before Year-End The last months of the year typically bring additional expenses. Travel, holiday gatherings, gifts, and seasonal activities can influence your spending if you do not plan ahead. A year-end budget review allows you to examine your spending patterns and pinpoint areas that may benefit from adjustment. Rather than viewing a budget as restrictive, consider it a planning tool that helps align your money with your personal values and long-term objectives. Taking time to review expenses may also uncover opportunities to redirect funds toward savings, debt reduction, or future investments. Even small adjustments, when maintained consistently, can lead to meaningful financial improvements. Plan Proactively for Holiday Spending Holiday expenses can easily create financial stress that lasts long after the season is over. Without a plan, it can be tempting to rely on credit cards or spend more than intended. Setting expectations for holiday spending before making purchases can significantly reduce financial strain. Families often create spending limits, simplify gift exchanges, or prioritize shared experiences instead of high-cost presents. Others choose to spread purchases over several weeks to avoid a large financial hit at once. The goal is to make sure the holidays remain enjoyable while still staying true to your overall financial priorities. Consider Year-End Gifting Opportunities If you are interested in supporting loved ones or incorporating estate-planning strategies, year-end may be a good time to review potential gifting options. The annual gift tax exclusion for 2026 is $19,000 per recipient. This can present opportunities to assist children, grandchildren, or other family members while supporting longer-term wealth-transfer goals. Because every family's financial picture is different, it is important to evaluate gifting options within your overall financial and estate plan. A thoughtful review can help ensure your gifting decisions align with your priorities and long-term intentions. Update and Confirm Beneficiary Designations  Beneficiary designations are often overlooked, yet they play a critical role in distributing certain financial assets. Retirement accounts, life insurance policies, and various financial accounts typically transfer directly to the beneficiaries listed—regardless of what is stated in your will or trust. Major life events such as marriage, divorce, births, deaths, or remarriage can make older beneficiary selections outdated. Reviewing these designations before year-end helps confirm that they still reflect your wishes and can help reduce complications for family members in the future. As 2027 approaches, now is an excellent time to take a proactive approach to your finances. If you would like support reviewing your retirement planning, evaluating your savings strategy, updating beneficiary designations, or discussing your broader financial goals, Harvest Financial Group is here to help. Our team would be happy to guide you as you prepare for a confident start to the year ahead.

The Fed held rates steady in June 2026 amid persistent inflation. See what Chairman Warsh's policy shift could mean for your financial plan.

Life changes fast — does your financial plan keep up? Discover the key life events that signal it's time for a mid-year financial review.