May Market Update

When it comes to preparing for retirement, Social Security often serves as the foundation of most Americans' retirement income. While it was never intended to be the sole source of income in retirement, Social Security remains a vital component in any comprehensive financial plan. Understanding how it fits into your retirement strategy and how to maximize its benefits can make a significant difference in your long-term financial security. The Role of Social Security in Retirement Planning Social Security is a government-administered insurance program that provides guaranteed monthly income based on your lifetime earnings and contributions through payroll taxes. For many retirees, it accounts for a significant portion of their income. According to the Social Security Administration, the program replaces about 40% of the average worker’s pre-retirement income. For lower-income earners, that percentage may be even higher(1). However, to build a stable and sufficient retirement income, Social Security should be considered one part of a three-legged stool, along with personal savings (such as IRAs or 401(k)s) and employer-sponsored pensions or retirement plans. As pensions are starting to phase out, items like an emergency fund or money market funds are becoming more and more important to help with budgeting and immediate expenses. Key Planning Considerations 1. Timing Your Claim Strategically One of the most important decisions in retirement planning is when to begin collecting Social Security benefits. You can start receiving benefits as early as age 62, but doing so will reduce your monthly benefit by ~30% permanently. Conversely, delaying benefits beyond your full retirement age can increase your benefit by up to 8% per year until age 70 (2). Factors to consider: Life expectancy and health status Employment plans after age 62 Need for immediate income vs. long-term income security Spousal or survivor benefits 2. Understanding Spousal and Survivor Benefits Social Security also offers benefits for spouses, ex-spouses, and survivors. If you are married, you may be entitled to receive up to 50% of your spouse's benefit, and surviving spouses may receive their deceased spouse’s full benefit if it is higher than their own. In retirement planning, it’s important to coordinate benefits between spouses to optimize household income, especially when one partner has significantly higher lifetime earnings. 3. Tax Implications Social Security benefits may be taxable depending on your total income. If your combined income (adjusted gross income + nontaxable interest + 50% of your Social Security benefits) exceeds certain thresholds, you could pay tax on up to 85% of your benefits. A tax-aware retirement income plan can help minimize taxes and stretch your retirement dollars further. With the ‘One Big Beautiful Bill Act’ now becoming law, from 2025-2028 seniors age 65 and older will get an additional $6,000 deduction to use on their taxes if their adjusted gross income is below $75,000 ($150,000 for married) (3). This new law will have an impact on whose Social Security will be exposed to being taxable and whose will not. 4. Inflation Protection One of the advantages of Social Security is that it is adjusted annually for inflation through cost-of-living adjustments. This built-in inflation protection makes it a reliable income stream in retirement and helps preserve purchasing power over time, something few private annuities or pension plans offer. Integrating Social Security into Your Financial Plan Incorporating Social Security into your broader financial plan requires careful analysis of your income needs, expected expenses, other retirement assets, and goals. A few best practices include: Estimating future benefits using tools like the SSA’s online calculator or statements from your "my Social Security" account. Running scenarios to test different claiming ages and how they impact long-term financial outcomes. Coordinating with other income sources to create a tax-efficient withdrawal strategy. Consulting a financial planner to tailor your strategy based on your personal needs. The Bottom Line Social Security is more than just a monthly check; it’s a critical asset in your retirement portfolio. Making informed decisions about when and how to claim your benefits can significantly impact your financial well-being over the course of your retirement. While you can't control market returns or interest rates, you can control your Social Security strategy. Used wisely, it can enhance your income security and provide peace of mind as you transition into retirement. Sources: 1: https://www.ssa.gov/policy/docs/ssb/v72n3/v72n3p37.html 2: https://www.ssa.gov/benefits/retirement/planner/agereduction.html 3: http://irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors This is not an offer or a solicitation to buy or sell securities. Material is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. The information has been compiled from third party sources. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

On July 4, 2025, President Donald J. Trump signed into law the One Big Beautiful Bill Act (OBBBA), a far-reaching tax and spending package that reshapes key components of the U.S. fiscal landscape. The legislation, extending more than 900 pages, builds upon the 2017 Tax Cuts and Jobs Act and introduces substantial changes across individual taxation, corporate incentives, federal entitlement programs, and national spending priorities. Key Provisions of the Legislation 1. Extension of Individual Tax Provisions The OBBBA makes permanent the reduced personal income tax rates initially established under the 2017 Tax Cuts and Jobs Act. The individual rate brackets (10% to 37%) and expanded standard deduction are maintained indefinitely, offering tax continuity for most income earners.² 2. Modification of the State and Local Tax (SALT) Deduction The legislation increases the SALT deduction cap from $10,000 to $40,000 for taxpayers earning less than $500,000 annually. This expanded deduction gradually phases out for higher earners and is scheduled to revert to its original cap in 2030.¹ 3. Introduction of New Deductions and Tax Benefits Several temporary deductions, effective through 2028, have been introduced. These include: • Tax exemption for tips and overtime wages² • Deductibility of auto loan interest² • An additional $6,000 deduction for senior citizens over age 65²,³ • Expanded child tax credits and tax-deferred child benefit accounts² 4. Estate and Charitable Giving Revisions The estate tax exemption is increased to $15 million beginning in 2026. Furthermore, the bill allows non-itemizers to deduct qualified charitable contributions, thus incentivizing broader philanthropic participation.⁴ 5. Corporate and Energy-Related Measures Corporate tax relief is expanded through the reintroduction of 100% bonus depreciation and targeted tax incentives for semiconductor manufacturing. Simultaneously, the legislation phases out key clean energy subsidies enacted under the Inflation Reduction Act, prioritizing fossil fuel investments and infrastructure.⁵ 6. National Security and Trade Adjustments The OBBBA includes provisions for increased defense spending and border enforcement, allocating $150 billion to each. Additionally, the bill introduces new tariffs and a 1% tax on international remittances.⁶ Distributional Effects: Beneficiaries and Those Adversely Affected Primary Beneficiaries: • High-income taxpayers, particularly in high-tax states, benefit from the SALT cap increase and the preservation of reduced tax rates. • Senior citizens, who gain from enhanced deductions and tax-free treatment of Social Security benefits. • Corporations and large businesses, which enjoy renewed tax incentives and regulatory relief. Groups Potentially Adversely Affected: • Low-income individuals, due to reductions in Medicaid funding (12–18%) and the imposition of work requirements for Supplemental Nutrition Assistance Program (SNAP) recipients, potentially disqualifying 10–17 million individuals. • Clean energy developers, as tax credits for renewable energy are curtailed. • Higher education institutions with large endowments, which face new taxation measures. Fiscal Outlook and Policy Implications According to the Congressional Budget Office, the OBBBA is projected to increase the national debt by approximately $3.5 trillion over the next decade. Federal revenue losses are estimated between $3 and $4.5 trillion, while the number of uninsured Americans is expected to rise by roughly 11.8 million.⁷ Conclusion The One Big Beautiful Bill Act is emblematic of the Trump administration’s policy priorities: tax relief for individuals and corporations, reduced federal social spending, and enhanced investment in defense and fossil fuel industries. While proponents highlight economic stimulation and tax certainty, critics raise concerns over regressive impacts, environmental setbacks, and long-term fiscal sustainability. As implementation unfolds, policymakers and taxpayers alike will closely monitor its economic and social consequences. Sources 1: https://www.mayerbrown.com/en/insights/publications/2025/07/one-big-beautiful-billact-introduces-significant-domestic-and-international-tax-changes 2: https://bipartisanpolicy.org/explainer/the-2025-tax-bill-additional-6000-deduction-forseniors-simplified/ 3: https://www.kiplinger.com/taxes/extra-standard-deduction-age-65-and-older 4: https://www.fidelitycharitable.org/articles/obbb-tax-reform.html 5: https://frostbrowntodd.com/one-big-beautiful-bill-act-cuts-the-powerphase%E2%80%91outs-foreign%E2%80%91entity-restrictions-and-domestic-content-inclean%E2%80%91energycredits/#:~:text=Introduction,orders%20as%20they%20are%20published. 6: https://armedservices.house.gov/legislation/one-big-beautiful-bill.htm 7: https://am.jpmorgan.com/wr/en/asset-management/liq/insights/marketinsights/market-updates/on-the-minds-of-investors/unpacking-the-obbbas-impact-onthe-us-economy-fiscal-health-and-more/

Our brief June monthly update on the markets and the economy.

Estate planning is a critical yet often an overlooked aspect of comprehensive financial planning. While many associate it exclusively with high-net-worth individuals or older adults, estate planning is important for anyone who wishes to dictate their assets to be distributed according to their wishes and their loved ones are protected in the event of incapacity or death. At its core, estate planning is the process of organizing and documenting one’s intentions regarding the management and distribution of assets. This includes not only the transfer of assets upon death but also the delegation of authority to make financial or medical decisions during one’s lifetime, should the need arise. What an Estate Plan Typically Includes A well-structured estate plan often consists of several key documents: Last Will and Testament: This legal document specifies how your assets should be distributed and names guardians for minor children, if applicable. Durable Power of Attorney: Appoints someone to handle financial matters on your behalf if you are unable to do so. Healthcare Power of Attorney and Living Will: Outlines your medical treatment preferences and designates an agent to make healthcare decisions if you become incapacitated. Beneficiary Designations: Often overlooked, these designations supersede instructions in a will. Things like retirement accounts, life insurance policies, and bank accounts should have updated and proper beneficiary designations. Trusts (when appropriate): A revocable living trust or other types of trusts may help avoid probate, provide tax benefits, or ensure that assets are managed and distributed over time according to specific instructions. The Consequences of Not Having an Estate Plan Without an estate plan, decisions regarding your estate fall to the state’s probate court system, which can result in unintended beneficiaries, lengthy delays, and significant legal expenses. For individuals with minor children, failing to name a guardian can leave critical decisions in the hands of the court, rather than in accordance with parental wishes. Additionally, incapacity without proper powers of attorney in place may require loved ones to petition the court for authority to act on your behalf, a process that can be both time-consuming and emotionally taxing. Why Estate Planning Shouldn’t Be Delayed Contrary to popular belief, estate planning is not a one-time task reserved for later in life. Major life events, such as marriage, the birth of a child, homeownership, or changes in health should prompt the review and update of an existing plan. Moreover, estate planning provides peace of mind at any age by ensuring that financial, legal, and medical matters are handled according to your wishes and not left to chance. A Collaborative Estate Planning Approach An effective estate plan is most successful when created in collaboration with experienced professionals. Working with both a qualified estate planning attorney and a financial advisor helps provide your legal documents align with your broader financial goals. This collaborative approach also helps minimize tax exposure, reduce administrative burdens, and provide clarity for heirs. Final Thoughts Estate planning is not simply about distributing assets. It is about exercising control, protecting loved ones, and creating a legacy. Taking the time to develop a thoughtful estate plan is one of the most impactful steps you can take toward long-term financial security and family well-being.

Financial planning is more than just a buzzword; it’s a vital part of building a stable, successful, and stress-free financial life. Whether you're fresh out of college or preparing for retirement, understanding and applying financial planning can help you achieve your goals, protect your future, and gain peace of mind. What Is Financial Planning? Financial planning is the process of evaluating your current financial situation, setting realistic goals, and creating a strategy to achieve them. It involves managing income, expenses, savings, investments, insurance, taxes, and retirement planning. With proper financial planning, you can gain control over your finances rather than letting money dictate your decisions. Financial Planning Provides Clarity and Direction One of the core benefits of financial planning is clarity. Without a plan, it’s easy to drift away from your goals. Things like living paycheck to paycheck, missing opportunities to save and invest, or falling short of long-term goals can all be a symptom of not having a financial plan. Financial planning gives you direction. Whether you're planning to buy a house, start a business, save for your children’s education, or start a budget, it provides a structured path to reach those milestones. Financial Planning Protects You from the Unexpected Life is full of surprises, and not all of them are good. Financial planning can prepare you for emergencies like job loss, medical expenses, or urgent repairs. An emergency fund is a key component of any sound financial planning strategy. This can keep those long-term goals within reach while short-term turbulence bumps life around. Reduce Stress Through Financial Planning Money is one of the most common sources of stress in modern life. Worrying about bills, debt, or the future can impact your mental and emotional well-being. Financial planning reduces that stress by helping you understand where your money goes, how much you need to save, and what steps to take next. With a clear plan in place, you’ll feel more confident and in control. Grow Your Wealth with Smart Financial Planning Financial planning isn’t just about budgeting; it’s about building wealth. Through strategic investing, managing risk, and leveraging tax-advantaged accounts, financial planning helps your money grow over time. The earlier you start, the more powerful the results are, thanks to the benefit of compound interest. Retirement Is Easier with Financial Planning Planning for retirement is one of the most important aspects of financial planning. Without a plan, many people find themselves working longer than expected or facing a lower quality of life in retirement. Financial planning helps measure if you’re saving enough, investing wisely, and preparing for a secure, comfortable future. Financial Planning Helps You Leave a Legacy Good financial planning isn’t just about your lifetime, but it’s also about what you leave behind. Whether it's providing for your family or supporting a cause you care about, estate planning is an important part of financial planning. It dictates that your assets are distributed according to your wishes and in the most tax-efficient way. Start Financial Planning Today It’s never too early or too late to start financial planning. Whether you're just getting started or refining your long-term strategy, financial planning gives you the tools and confidence to make informed decisions. With consistent effort and guidance when needed, financial planning can transform your financial future.

Money and mental health are more connected than many people realize. According to the American Psychological Association, nearly 3 in 4 adults (72%) say finances are a significant source of stress1. Whether you're dealing with debt, uncertain income, or just trying to make the right long-term decisions, money-related anxiety can take a serious toll. The Emotional Cost of Financial Stress Financial stress doesn’t just impact your wallet, it affects your sleep, relationships, and even your physical health. Worrying about money can trigger chronic stress, which may lead to anxiety, depression, or burnout. It’s not uncommon to feel shame about past financial decisions or guilt about spending. Everyone starts somewhere. The important thing is getting started. The pressure to “have it all together” financially can create a sense of failure or inadequacy, especially in a world where success is often tied to material wealth. This pressure isn’t limited to people struggling with money. High earners often experience anxiety about maintaining their lifestyle or making proper investment choices. How Mental Health Influences Financial Behavior Just as money can impact your mental wellbeing, your mental state also affects how you manage money. Emotional spending, avoiding bills, or making impulsive financial decisions are common when stress levels are high. Feeling anxious or overwhelmed can make it easier to delay facing your finances or financial problems, which can only make the problem worse. Finding the Balance: Practical Tips The good news is there are ways to reduce both financial stress and the emotional toll that can come with it. Here are a few ways to get the ball rolling: Start small - You don’t have to overhaul your finances overnight. Begin by reviewing one account, organizing a budget, or automating a small monthly transfer to savings. Set guilt-free goals - A healthy budget includes room for joy. Whether that’s travel, dining out, or hobbies. Financial discipline doesn’t have to mean deprivation. Schedule money “check-ins” - Treat your finances like your health. Check in regularly, even when nothing seems urgent. Use mindfulness techniques - Taking breaths before making a big financial decision can prevent reactive spending or fear-based avoidance. Ask for help . A financial advisor can help, but if emotions are consistently getting in the way, working with a financial therapist may also be beneficial. You’re Not Alone There’s no shame in feeling stressed about money. Life gets complicated, and financial planning is more than just numbers. It’s about building confidence, reducing anxiety, and creating a path towards peace of mind.  If your finances are weighing heavily on you, you don’t have to handle it alone. Whether you need help organizing a plan or want someone to walk through the process with you, reaching out is a powerful first step.

What Is a Financial Advisor? A Beginner’s Guide Managing personal finances can often feel complex and overwhelming particularly for those just beginning their financial journey. From building an emergency fund to planning for long-term goals like homeownership or retirement, the number of financial decisions can quickly add up. This is where the guidance of a financial advisor can make a significant difference. But what exactly does a financial advisor do, and how can they support your financial well-being? What Is a Financial Advisor? A financial advisor is a trained professional who helps individuals effectively manage their money and improve their financial literacy. By empowering clients with knowledge and strategic guidance, financial advisors help build confidence in achieving both short- and long-term financial goals. Think of a financial advisor as a trusted guide who offers expert advice on saving, investing, budgeting, and planning for major life milestones such as retirement, purchasing a home, or funding education. What sets financial advisors apart is their ability to offer personalized strategies. They take a comprehensive look at your individual financial situation including income, expenses, debts, assets, and goals, and craft a tailored plan that aligns with your needs and aspirations. Their aim is to help you maximize your financial potential while avoiding costly missteps. Different Types of Financial Advisors It's important to recognize that not all financial advisors operate the same way. One key distinction lies in how they are compensated. Fee-only advisors charge clients directly for their services either through hourly rates, flat fees, or a percentage of assets under management. Others may earn commissions by selling financial products, such as insurance or investment funds. Understanding how your advisor is paid is crucial, as it helps you identify potential conflicts of interest and ensures their recommendations align with your best interests. You may also come across professionals with the Certified Financial Planner (CFP®) designation. CFPs have completed rigorous education, examination, and experience requirements. They adhere to a fiduciary standard, meaning they are legally obligated to act in your best interest. This can be a big point of differentiation between advisors. In today’s technology-driven world, robo-advisors have emerged as a lower-cost, automated alternative to traditional financial advice. These platforms use algorithms to provide investment management advice and basic financial planning. While convenient and accessible, robo-advisors typically lack the personalized insights and nuanced guidance that a human advisor can offer, especially when navigating complex financial situations. It is a good idea to check with a financial professional when receiving advise from a robo-advisor. Why Would You Need a Financial Advisor? If you're new to managing your finances or feel uncertain about making investment decisions, partnering with a financial advisor can provide clarity, structure, and peace of mind. Here are several key reasons to consider working with a financial professional: Navigating Life Transitions: Major life events, such as getting married, starting a family, buying a home, or preparing for retirement often require new financial strategies. A financial advisor can help you adjust your plan to align with your changing circumstances. Managing Complex Financial Situations: If you have multiple income streams, investment accounts, or outstanding debts, an advisor can help organize and optimize your financial picture for greater efficiency and long-term success. Saving Time and Reducing Complexity: Financial topics like investing, tax planning, and retirement savings can be overwhelming and time-consuming to navigate alone. A financial advisor brings a professional aspect that can save you valuable time and help you make informed decisions. Avoiding Costly Mistakes: Poor financial choices can have long-lasting consequences. Advisors help you avoid common pitfalls and design a strategy that supports sustainable wealth building while managing risk. How to Choose the Right Financial Advisor If you're considering working with a financial advisor, keep these tips in mind: Ask About Services: Understand what areas they specialize in, such as investing, retirement, or tax planning. Check Credentials: Look for designations like a CFP® to ensure they meet professional standards. Know the Fees: Clarify how they’re paid and ask about any hidden costs. Read Reviews or Get Referrals: Trusted recommendations can help you find a reputable advisor. Evaluate Communication: Choose someone who listens well and explains things clearly. Final Thoughts A financial advisor can be a valuable ally in helping you navigate your financial journey, particularly if you're just starting out or facing important financial decisions. By understanding the role, or roles, they play and how their services align with your needs, you can be better equipped to determine if partnering with an advisor is the right move for achieving your goals. Disclosure: Content is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure Site https://adviserinfo.sec.gov/firm/summary/123807.

Take Advantage Of Stock Market Ups and Downs With Dollar Cost Averaging

Most people have a retirement date in mind. You’ve had a long career filled with challenges and rewards. And now, the dream of having more time to do whatever is about to come true. Before you send your last email or attend that last meeting, it’s wise to have a solid plan in place to pay the bills when your paycheck stops. What you want to build is a complete retirement income plan. This plan will show you where you’ll be spending your money in retirement. You’ll also learn about available financial resources to help build your new retirement paycheck.Most people have a retirement date in mind. The 4 Parts of a Retirement Income Plan Crafting a tailored retirement income plan is key to a successful retirement journey. Taking the time to consider expenses, savings and income before stepping into retirement will help ensure there's an ample balance for a comfortable life. PERSONAL ACCOUNTS RELIABLE INCOME FLEXIBLE EXPENSES ESSENTIAL EXPENSES Identify all your non-negotiable, essential expenses These are the bills and expenses you must continue to pay long after you’ve stopped working. These expenses can’t be deferred or delayed regardless of the ups and downs of the market. You know the obvious must-have expenses such as food, shelter, health care, utilities and income taxes. But many essential expenses are missed: technology, property taxes, and homeowners or renter’s insurance. In addition, some expenses for enjoying retirement living will be essential expenses. — For some, it will be a club membership. — Others consider travel to see the grandchildren essential. — For those who are retiring to pursue hobbies, start-up costs may be a factor to consider.  It’s up to you to define your essential expenses. The closer you are to retiring, the more accurate your list and estimated costs should be.