News from the Home Team

Your July Financial Check-In: Declare Your Financial Independence!

Welcome to the first edition of our monthly newsletter! As we celebrate Independence Day this month, it's a perfect time to reflect on your own financial independence – the freedom to live life on your terms, today and tomorrow.

At our firm, we believe true financial success is a personal journey. It’s about building a flexible plan that adapts to your changing needs and allows you to enjoy the ride, not just plan for retirement. We're here to help you gain financial clarity and understand your overall financial picture.

In this July update, we invite you to a Mid-Year Money Check-In with key questions to consider. We'll also cover key topics like current market conditions, protecting your accounts with a "trusted contact," staying safe from email scams, and understanding Medicare's role in your long-term plan.

Let's work together to ensure your financial plan is as dynamic as your life. We're excited to make this newsletter a valuable resource, and we'd love your feedback! Please share any other topics you'd like us to cover in future editions.

Market Insights

As we move through July, the investment landscape continues to evolve. We know that recent headlines, especially about global tensions and ongoing discussions in Washington, might raise questions about market stability. Let's look at what's shaping the environment and what it means for your investments.

Evolving Trade Policies: New Tariff Announcements

Recent trade policy announcements have introduced new considerations for investors. The President plans to impose blanket tariffs of 15% or 20% on most trade partners, up from the current 10%. He dismissed concerns about negative stock market effects or increased inflation, despite a previous 20% market drop following an initial wave of global tariffs in April. Additionally, a 35% tariff on Canadian goods is planned for August 1st, though US-Mexico-Canada Agreement compliant goods are exempt. This move followed Canada scrapping a digital services tax.

• Impact on Investors: These broad tariff proposals and specific country actions create uncertainty. Increased costs for imports could impact corporate margins and consumer prices, affecting industries reliant on global supply chains. Investors should evaluate companies based on their exposure to these new rates.
• Impact on Retirement Savers: A key concern for retirement savers is the potential for tariffs to drive inflation above current levels. Sustained inflation can erode purchasing power, making diversified portfolios crucial. Direct stock market impacts from tariffs can also influence retirement account values.

Our team is closely monitoring these developments, understanding that trade policy shifts can have both direct and indirect effects on market dynamics.

The Fed's Steady Hand

Adding a layer of stability is the Federal Reserve's recent early July decision to keep interest rates unchanged. This signals their confidence that inflation is slowing down and shows their commitment to making decisions based on economic data. For bonds, this has meant continued stability in short-term rates. For stocks, steady rates are generally positive, as they suggest borrowing costs for businesses won't increase, which can support company growth. We'll continue to watch economic data for any signs of future changes in the Fed's approach.

The "Big Beautiful Bill" Has Passed: Key Impacts on Your Finances

Beyond interest rates, the highly anticipated "Big Beautiful Bill" has now successfully passed both chambers and become law in early July. This comprehensive legislative package carries significant implications for various sectors and your personal finances. Here are some of the key impacts:

• Permanent Tax Cuts (Investors & Businesses): The bill makes the 2017 tax cuts permanent. For investors, this provides long-term clarity on after-tax returns from corporate profits and potentially capital gains. For businesses, it offers stable tax rates, which could encourage investment and expansion.
• Medicaid Changes (Healthcare Sector & States): Proposed cuts to Medicaid spending will significantly impact the healthcare sector in rural areas, particularly providers that serve Medicaid recipients, and could strain state budgets. Investors in certain healthcare sub-sectors may see shifting landscapes.
• Green Energy Tax Credit Modifications (Green Energy Investors): The bill modifies or delays tax credits for certain green energy technologies. This creates a new environment for investment in renewable energy, potentially favoring some technologies over others, and requiring investors in this space to reassess their strategies.
• Social Security Tax Deduction (Retirement Savers - Older Americans): Temporary increases to the standard deduction for older Americans will directly boost the disposable income for many retirement savers, potentially leading to increased consumer spending or further savings.
• Business Loss Limits (Business Owners & High-Income Investors): Adjustments to how business losses are calculated and limited will impact small businesses and high-income individuals. This could influence entrepreneurial activity and tax planning strategies for those with significant business interests.

While this long-awaited clarity removes some short-term market uncertainty, the bill's long-term effects will be significant and complex, shaping the economic environment for years to come. Our team is monitoring this closely because legislative outcomes have a big impact on investment trends.

What This Means for Your Portfolio

In times like these, our core investment principles remain key:

• Diversification is Key: Spreading your investments across different types of assets, regions, and industries remains your best defense against unexpected market shocks.
• Long-Term View: Short-term market movements often become less important over a longer investment period. We encourage you to focus on your long-term financial goals and avoid making quick decisions based on daily news or political events.
• Focus on Quality: Investing in strong companies with solid financials is always a smart approach, especially when markets are less predictable.

As always, we're here to help you navigate these market dynamics. If you have any questions or would like to discuss your portfolio, please don't hesitate to reach out.

This Month’s Spotlight

Mid-Year Money Check-In: Are You Still on Track?

It's already the middle of the year—a perfect time to take a breath, see where you stand, and make sure your money is still working for you.  

We believe financial success is deeply personal; life is a dynamic path, not a fixed destination, and you need a flexible financial framework that adapts as your needs and aspirations change. It's about enjoying the ride, working with a team you trust, and gaining financial clarity that allows you to live life on your terms – both today and tomorrow.

Here are some simple questions to ask yourself:

• What are my money goals? Have I clearly thought about what I want my money to do for me?
• Am I tracking my spending? Do I have a budget (even a simple one) that I look at now and then?
• Do I have savings sitting in a bank account that could be earning higher interest in a money market?
• Any big plans coming up? Am I saving for a major purchase like a house, college tuition, or a big vacation?
• Have my long-term goals changed? Is what I want for my future still the same as it was a few months ago?
• Do I have enough life insurance? Is my family or business protected if something unexpected happens to me?
• Has my comfort with risk changed? With recent ups and downs in the market or changes in my life, do I feel differently about how much risk I'm willing to take with my investments?
• Am I saving enough for retirement?
• Are there any major life changes (marriage, new job, kids) that might affect my finances?

Even if you haven't formally built a financial plan with us, don't hesitate to ask for help! We can provide you with simple worksheets to guide you in mapping out your current situation. It's easy to want to avoid thinking about these things, especially if it feels overwhelming. But, without question, putting it down on paper, even loosely, can be a huge stress reliever and bring much-needed clarity.

On the flip side, even if you think everything's fine, it's surprising how easily spending habits and priorities can drift off course without you noticing. A mid-year check-in helps you see things clearly and stay accountable. Are your investments still lined up with what you want to achieve? Are you putting enough aside for the things that truly matter to you?

Even small tweaks now can make a big difference by the end of the year. If you'd like to dig a little deeper, we're here to help you review everything, make any necessary adjustments, and move forward with a clear purpose.

Did You Know?

This month’s newsletter outlines some key reasons to have a trusted contact on your investment accounts, especially when it comes to protecting your assets and ensuring someone can help if issues arise. 

1. Fraud Prevention & Elder Financial Abuse - A trusted contact gives your financial professional someone to reach out to if they suspect fraud, identity theft, or financial exploitation—especially important for older investors or vulnerable individuals.

2. Health or Capacity Concerns - If the financial professional has reason to believe you're experiencing cognitive decline, are in a medical emergency, or are otherwise unable to make sound financial decisions, they can reach out to your trusted contact to check in or get guidance.

3. Missing or Unusual Activity - If you stop responding to the firm or there’s suspicious or uncharacteristic account activity, your trusted contact can help clarify what's going on.

4. No Authority Over Your Account - Importantly, the trusted contact doesn’t have any control over your money or investments. They’re just someone the firm can talk to if needed—so it’s low risk, high benefit.

5. Peace of Mind - It provides an extra layer of security and can ease concerns for you and your loved ones—especially as life gets more complex with age or unforeseen events.

If you have questions, we’re here for you. Please make sure to reach out to your financial advisor to add a trusted contact to your accounts.  As always, your security and peace of mind are our top priorities.

Medicare – A Key Piece to Your Retirement Puzzle

Medicare can feel a bit like navigating a maze, especially when you're used to thinking about investments and long-term financial plans. But here's the thing: Medicare is a crucial piece of your retirement puzzle, and it directly impacts your financial picture.

Think of it this way: you've spent years building your portfolio, planning for a comfortable retirement. Now, how do you protect that nest egg from unexpected healthcare costs? That's where understanding Medicare comes in. It's not just about getting healthcare; it's about managing a significant retirement expense.

Now, you've probably heard about Original Medicare and Medicare Advantage. It's like choosing between a tailored suit and something off the rack. Original Medicare gives you flexibility, you can see almost any doctor, but it might mean more out-of-pocket costs unless you add a Medigap plan. Medicare Advantage, on the other hand, can have lower premiums, but you're working within a network, and those out-of-pocket costs can vary a lot. It’s like weighing consistent flexibility against potential cost savings.

And, it's really important to know, there are some changes in the Medicare Advantage landscape right now. Due to some regulatory changes, and the increased cost of healthcare, a lot of plans are reducing benefits. This is something that could really influence your financial planning, so it's something to pay close attention to. Also, there's some increased scrutiny from the Department of Justice on some of the larger providers. It's worth keeping an eye on.

If you've been using a Health Savings Account, you're already one step ahead. Those accounts are fantastic for retirement healthcare. You're getting tax breaks on the way in, the growth is tax-free, and as long as you use it for qualified medical expenses, it comes out tax-free too. And yes, you can use it for Medicare premiums in some cases.

Let's not forget about long-term care. It's a topic no one really wants to think about, but it's a real possibility. Long-term care expenses can really throw a wrench into your retirement plans. That's why considering long-term care insurance is so important. It's about protecting your assets and giving yourself and your family peace of mind.

And just like you diversify your investments, you need to think about how Medicare fits into your overall financial strategy. It's not a separate thing; it's part of the whole picture. We need to make sure your withdrawal strategies are tax-efficient and that your portfolio is ready for any potential healthcare costs.

Ultimately, Medicare planning is about making informed decisions that align with your financial goals. It's about taking control of your healthcare expenses and protecting your retirement savings. And that's something we can work on together. Let's talk about your situation, look at your options, and make sure you're set up for a healthy and financially secure retirement.

Tech Tips

Email Safety: How to Protect Yourself from Scams

Email scams are becoming increasingly sophisticated, making it more important than ever to stay vigilant when checking your inbox. Cybercriminals use phishing emails to steal personal information, install malware, or trick you into making fraudulent payments. Here are some simple steps to help you spot scams and protect your information.

1. Verify the Sender

Before opening an email or clicking on links, check the sender’s email address carefully. Scammers often use email addresses that look similar to legitimate ones but may have small differences, such as extra characters or misspelled names (e.g., “support@paypall.com” instead of “support@paypal.com”). If you’re unsure, contact the company directly using their official website.

2. Look for Red Flags

Be cautious if an email:

• Creates a sense of urgency (e.g., “Your account will be locked in 24 hours!”)
• Requests personal or financial information
• Contains unexpected attachments or links
• Has spelling and grammar errors

Legitimate companies will not ask for sensitive information like passwords or Social Security numbers via email.

3. Hover Over Links Before Clicking

Scammers often disguise malicious links to look legitimate. Hover your mouse over a link (without clicking) to see the actual URL. If it looks suspicious or doesn’t match the official website, don’t click it.

4. Be Wary of Unexpected Attachments

Never open an attachment unless you’re expecting it from a trusted sender. Malware can be hidden in PDFs, Word documents, and ZIP files.

5. Enable Two-Factor Authentication (2FA)

Whenever possible, enable 2FA for email and banking accounts. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone.

6. Trust Your Instincts

If something feels off, it probably is. When in doubt, reach out directly to the sender using a verified contact method rather than responding to the email.

By staying cautious and following these best practices, you can reduce the risk of falling victim to email scams. If you ever receive a suspicious email related to your accounts with us, don’t hesitate to contact our team for guidance. Stay safe!