Ten years ago, I wrote about a spendthrift whose story I'd like to share again in light of current market action.

To set the stage, the stock market has recently experienced big daily moves on the upside and the downside.

It was just weeks ago that the S&P 500 Index reached its all-time high (Feb. 19, 2025), only to drop 14% since then (through April 10). Two down days in a row (4.84% on April 3, and 5.97% on April 4) produced a 10.5% decline. The trigger: April 2, when global reciprocal tariffs were announced by the United States.

Then, on April 9, the S&P 500 saw a gain of 9.5%, the ninth largest since the 1920s, according to Sam Stovall, chief investment strategist for CFRA. If we measured bear markets intra-day, we would have reached bear territory on April 7, when the S&P 500 touched 4,835, an intra-day decline of over 21% from the peak. However, we're not there yet on a market-close basis as of this writing (April 11), due to the April 9 up day. (April 10 closed at 5,268.)

And, of course, there is more daily volatility to come as the market tries to find its footing.

The natural question for do-it-yourself investors is this: Should I bail or ride out the storm?

I do have a point of view on the subject as a seasoned investment counsel who works with wealthy families and also as a proponent of financial literacy education for people of all financial means.

It's simple: It starts with knowing yourself.

If you are someone like "Pete," who is nearing retirement, the path is pretty clear.

Pete knows himself. He is painfully aware that he is a spendthrift who cannot trust himself to spend wisely, much less keep to a budget. Living within one's means is not a concept he can embrace.

Soon to be 65, he is wondering about the future. Will he be able to survive financially after he retires, especially considering market volatility? He always seemed to manage while working, but what happens after he stops? Once a spendthrift, always a spendthrift?

Pete will be getting a Social Security retirement benefit, but it won't cover all of his expenses. A pension would be nice, but that's not an option.

Pete's major asset is a 401(k) plan at work. Painless monthly payroll deductions through the years and a healthy company match helped him build a sizable retirement nest egg. The amount seems plenty to Pete, but is it? The perils of the stock market are very much on his mind. Plus, there is that temptation to spend now and worry later.

Is there any way to protect Pete from himself?

There is a pension substitute that Pete can look into -- an immediate annuity; each month he will be able to count on his bank account receiving deposits for the rest of his life, irrespective of how the market is doing -- or if he wants to spend more than he should.

By creating this type of income stream, Pete is making sure that he won't use up his capital by overspending, while removing himself from current market turmoil.

If you want to learn more about annuities, the Securities and Exchange Commission provides information at its Investor.gov site (tinyurl.com/yxunfmt4). It's important to get a thorough understanding so you can decide if an annuity is right for you. (Disclosure: My firm does NOT sell annuities.)

What if you aren't like Pete? What if you are like "Rodney," who is 35 years old and driven by a desire to "beat the market" over the long term. During downturns, he could be looking for opportunities and getting his buy list ready.

For Pete and Rodney, and all those watching the markets these days, the foundation remains the same: When there is market volatility, it is important that you know yourself -- your long-term goals, your current objectives and the depth of your financial knowledge.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

Questions continue to arrive in my email about required minimum distributions (RMDs) from retirement accounts, and with good reason, considering the amount of change (and confusion) for RMD-related regulations that came from the two SECURE Acts, which were signed into law in 2019 and 2022.

"Andrea" asked about the following situation in regard to a Simplified Employee Pension IRA, or SEP-IRA:

"I will be reaching 73 this year and will be taking distributions from my traditional IRA and inherited IRA. The question I have is if I continue to be a self-employed 1099 NEC worker, must I take my RMD from my SEP-IRA? I will be making a contribution this year into the SEP. ... I have done a lot of reading, have a tax adviser that is unsure about this and need clarification on this soon. I am the sole participant with this plan and do not have employees."

There's a lot to discuss here, and while I will offer an overview, the final answer will have to be confirmed by Andrea's tax adviser, as every person's tax situation is unique.

Andrea's core question is whether a self-employed individual can delay RMDs from her SEP-IRA retirement account because she is still working.

I can give you my answer ("no"), but, again, readers need to rely on their own tax advisers for answers.

Let me give you an idea of how I would think this through.

First, RMDs are currently mandatory at age 73 unless there is an exception in the law. So, you're looking for a clear exception specifically for SEP-IRAs that would apply to the self-employed "owner" of the business who is still working.

There is a "still working" exception for 401(k) plans, but it doesn't apply to someone who owns 5% or more of the stock of the employer. Additionally, 401(k) plan rules don't apply to SEP-IRAs, and a self-employed individual is the 100% owner of the business.

If you look for a "still working" exception for SEP-IRAs, you won't find one.

Quoting from an IRS FAQ on RMDs for retirement plans and IRAs, "Owners of traditional IRA, and SEP and SIMPLE IRA accounts must begin taking RMDs once the account holder is age 73, even if they're retired" (tinyurl.com/y9wajm4z).

Second, when a tax adviser is uncertain of the answer to a question, it's always a good idea to ask the following: If we conclude that Andrea doesn't need to take an RMD in 2025, and we're wrong, what happens? This puts things in perspective. Andrea would face a tax penalty of 25% on the amount of the RMD that she should have taken. Assume the RMD is $10,000; the penalty would be $2,500.

Again, quoting from the IRS FAQ, "If an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn may be subject to an excise tax of 25%, 10% if the RMD is timely corrected within two years. The account owner should file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with their federal tax return for the year in which the full amount of the RMD was required, but not taken."

Since this will be Andrea's first RMD, she will have the option of taking her 2025 RMD in calendar year 2025 or in early 2026 (by April 1, 2026). The dollar amount of the RMD will be the same -- based on her SEP-IRA balance of Dec. 31, 2024. This timing is up to her. If she waits until the beginning of 2026 to take her 2025 RMD, her 2026 tax-year return will include her 2025 RMD and her 2026 RMD, which will be determined based on her Dec. 31, 2025, SEP-IRA balance. Andrea will need to get guidance from her tax adviser on timing.

Hope that helps.

By the way, I do welcome reader interaction. Email me (readers@juliejason.com) if you would like to participate in online surveys for the column or be invited to a presentation. If you have a question, send it to me. While not all reader questions can be answered, they are all read and considered for future columns.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

Recent announcements by the Social Security Administration (SSA) raise concerns about getting through to the SSA when you need to. The issue is the adoption of more strict procedures to protect your identity. Are they workable?

Visit or online: Individuals with a My Social Security online account could claim benefits online -- no problem. However, others were directed to visit a local Social Security office to prove their identity, according to a March 18 SSA blog post (tinyurl.com/2phde752). A telephone call was no longer an option.

This in-person procedure was to take effect March 31, 2025, following a two-week training period for employees, according to the blog. Concern about the new procedure prompted a change effective April 14 (see SSA blog of March 26, 2025 -- tinyurl.com/3ws8c3xu).

"We have listened to our customers, Congress, advocates, and others, and we are updating our policy to provide better customer service to the country's most vulnerable populations," said Lee Dudek, Acting Commissioner of Social Security.

Updated options: Visit, telephone or online. Under the updated policy, those applying for Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI) or Medicare who "cannot use a personal My Social Security account can complete their claim entirely over the telephone," according to the March 26 blog.

Dudek said those categories "will be exempt from in-person identity proofing because multiple opportunities exist during the decision process to verify a person's identity."

A different rule applies to claims for retirement, survivor or auxiliary (spouse or child) benefits. SSA will still enforce online digital identity proofing or in-person identity proofing in those cases. However, the SSA "will not enforce these requirements in extreme dire-need situations."

The SSA has an updated webpage, "What to Know about Proving Your Identity" (tinyurl.com/mr47n57b), that provides details on ID information you'll need to make a claim.

Online version: The My Social Security account, found at ssa.gov/myaccount/, requires online identity proofing, something that was implemented last year for those who had created a Social Security account before Sept. 18, 2021 -- accounts created after that date already had the correct setup. (If you missed my column on the topic, email me for a copy.) You now must use one of the SSA's Credential Service Providers -- Login.gov or ID.me -- to access a My Social Security account.

The online account allows a user to manage benefits, get an estimate of future benefits, check the status of an application and request a replacement Social Security card.

Bank verification: The SSA is also implementing Account Verification Service (AVS), a payment integrity tool utilized by the Department of Treasury's Bureau of the Fiscal Service (tinyurl.com/2z52stfa). AVS "provides instant bank verification services to proactively and timely prevent fraud associated with direct deposit change requests," stated the SSA March 26 blog post.

Calling the SSA: The SSA typically receives about 80 million calls a year to its national 800 number. The SSA's "800 number performance" webpage provides updated statistics on the average speed of a call to be answered (21.2 minutes as of this writing), as well as callback and wait times (tinyurl.com/3ca8pyxm). According to the SSA, recent media reports that it is eliminating telephone service are inaccurate (tinyurl.com/2jrwtu8b). An office appointment can be scheduled by calling 800-772-1213 or by visiting the SSA website page "Looking for a local office?" (tinyurl.com/5n8ytwuz).

Scams: While Social Security-related scams have declined since fiscal year 2021, they "remain the top government imposter type reported to the [Federal Trade Commission]," according to the SSA Office of the Inspector General's Quarterly Scam Update released in March 2025 (tinyurl.com/28unumzm).

You can report potential Social Security fraud by going to the Office of the Inspector General's webpage at tinyurl.com/y25kr42b, or by calling the OIG fraud hotline at 800-269-0271. If you want to increase your awareness about the types of Social Security fraud, see the SSA's "Fraud Prevention and Reporting" webpage (tinyurl.com/yc4ar9tv).

Will the latest changes be workable for applicants and effective in combating Social Security fraud? Let me know if you have an opportunity to test the new guidelines (readers@juliejason.com).

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION