Why Financial Planning Is Important: Your Roadmap to Financial Freedom

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/

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.

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.

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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.

This easy-to-use checklist can help you take charge of your money

Turbulent times can bring turbulent markets. Many factors cause chaotic swings in the investing world including housing, political elections, and international instability. Despite the financial queasiness this can have, experts consistently have one piece of advice for investors: stay calm and stay the course. Maintaining a long-term investment strategy can help weather the storm of a volatile stock market, whereas reacting irrationally or panicking is the last thing investors should do. History tends to repeat There are a few ways to keep nerves at bay amidst a sea of daunting headlines. First, a historical review shows that market fluctuations are normal. This should serve as a comforting reminder during unstable conditions. According to Fidelity, “...while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.” 1 While no one can predict the stock market with absolute certainty, the significant crashes of the last century all saw periods of recovery. For example, after the 2008 market crash, the recovery began almost immediately and achieved an eventual increase of 178% in 5-year returns. 2 These past events reinforce the importance of focusing on long-term financial strategies and goals, not short-term fluctuations. The markets will have bull and bear runs which need time to play out without trying to anticipate short-term trends. However, past performance is no guarantee of future results. Don’t try to catch a falling knife Another potential mistake that investors can make is to stop saving during a market downturn. A popular way to continue savings momentum when nerves are being tested is dollar-cost averaging , or in other words, investing a fixed amount on a regular schedule (e.g., per pay period) that generally results in buying more shares when prices are low and less shares when they are high. Dollar-cost averaging is a stabilizing approach. It can take away some of the fear of timing risk and become less of a system shock than lump sum investing. However, this strategy does not ensure a profit and does not protect against loss in declining markets. You need lemons to make lemonade Downturns are a perfect time to consult with a financial professional or investment advisor to review different strategies and also rebalance your portfolio. It might be time to look at investments 1 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. 2 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025. that have lost value, which can potentially help manage risk exposure and provide an opportunity to reposition the portfolio for recovery. Another possibility is to consider a Roth conversion. If your plan allows for a Roth conversion - moving money from pretax dollars to Roth dollars - then a downturn could help. A conversion in a downturn might result in a lower tax bill for the same number of shares sold, and then the individual can experience the benefits of a Roth account, allowing qualified distributions of future growth to be tax free.3 Market downturns are a part of any investing lifecycle so it’s best to keep a steady hand, consult with your advisor and consider all options so you can weather through this market cycle - and the next one. Information provided herein is not, and should not be regarded as, investment advice or as a recommendation. Investing involves risk, including potential loss of principal. ________________________________________ The Gasaway Team Gasaway Investment Advisors 7110 Stadium Dr., Kalamazoo, MI, 49009 Email: info@gasawayinvestments.com Phone: (269) 324-0080 Website: www.gasawayinvestments.com This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. ©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission. ________________________________________ 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 . 3 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.