News from the Home Team

Welcome to this month's newsletter. As you know, we believe that everyone’s financial journey is unique, and our goal is to provide you with insights and information to help you navigate it. In this issue, you'll find a range of topics designed to help you stay informed.

Our Market Insights section offers a detailed look at a surprising August, a month that defied historical trends with solid market gains. We explore some of the drivers behind this performance and what it could mean for the road ahead.

You'll also find articles designed to provide you with information on financial planning and estate planning. This month we take a look at life insurance and how various insurance products can be powerful tools that can be used strategically to protect and transfer wealth.

To help with your day-to-day financial life, our Did You Know? article explains the crucial role of a trusted contact and how it helps protect you from financial exploitation. And in our Tech Tips section, we explore how password managers can simplify your online life while significantly boosting your security.

We're here to help you build a plan that adapts to your needs and aspirations. We encourage you to explore the articles below and reach out with any questions.

Market Insights

Market Snapshot August Resilience September Caution

Historically, August and September are the weakest months for U.S. equities. Since 1970, September has averaged a -0.91% return, the worst of any month. Yet this August defied expectations, with major indices posting solid gains:

Key Drivers Behind the Rally:

• Fed Pivot in Sight: Fed Chair Powell’s Jackson Hole speech hinted at a policy shift, citing a “shifting balance of risks.” Markets expected the realized quarter-percent cut in September, especially after weak job growth and downward payroll revisions.
• Corporate Strength: Q2 earnings surprised to the upside, with S&P 500 profits up 13% Year over Year.
• Stable Yields: Long-term Treasury yields remained steady, supporting equity valuations.
• Global Resilience: Despite political noise in Europe and trade tensions, global activity and inflation data remained stable.

Labor Market Softness Adds Fuel to Further Rate Cut Expectations

August’s U.S. jobs report showed just 22,000 new jobs, far below forecasts. The unemployment rate ticked up to 4.3%, the highest since 2021. Manufacturing jobs declined for the fourth straight month, while long-term unemployment rose to 25.7% of total unemployed.

Other Notables:

• Gold surged past $3,600/oz, hitting an all-time high amid global fiscal concerns and central bank buying
• Tariffs & Trade: A court ruled most of the president’s tariffs illegal, but they remain in place pending appeal. Meanwhile, the U.S. imposed a 50% tariff on Indian oil imports

Looking Ahead

While the Fed did cut rates and inflation continues to remain above target, markets are walking a tightrope. While fundamentals remain supportive, elevated valuations and geopolitical risks warrant a diversified approach.

Let us know if you'd like to discuss how this environment may impact your portfolio or if you'd like a deeper dive into any of these developments.

This Month’s Spotlight

Each September, Life Insurance Awareness Month reminds us of a simple truth: tomorrow isn’t promised, but we can plan for it. For millions of American families, life insurance remains one of the most affordable and powerful ways to safeguard their financial future. Yet, many households are either uninsured or underinsured.

In 2025, with higher living costs, rising medical expenses, and longer life expectancies, protecting your loved ones is more important than ever.

Life Insurance Awareness Month was created to highlight a national problem: too many families face financial hardship when the unexpected happens. According to LIMRA, nearly half of U.S. adults do not have any life insurance coverage. Of those who do, many lack enough to fully replace income, pay off debts, or provide for long-term needs.

This awareness campaign encourages people to learn the basics, explore their options, and take action before it’s too late.

Even in today’s digital age, misconceptions about life insurance keep people from getting covered. Common reasons people delay include:

• “It’s too expensive.” In truth, many term life policies cost less than a daily cup of coffee.
• “I have coverage at work.” Employer policies often cover only one or two times your salary—far less than what most families need.
• “I’m healthy and young.” Waiting means you risk higher premiums later—or worse, losing eligibility after a health change.
• “Stay-at-home parents don’t need it.” Their economic value, from childcare to household management, is significant and often overlooked.

Delaying coverage can leave a family exposed at the very moment they need protection most.

September is the perfect time to review your protection strategy. Life insurance isn’t about you—it’s about the people you love most. A policy ensures that no matter what happens, their financial future is protected.

If you’re unsure where to start, take the time this month to connect with our team of qualified Financial Professionals. An informed decision today can create peace of mind for decades to come.

Did You Know?

Why do we ask clients for a trusted contact when opening a new account?

Did you know that the purpose of a trusted contact is to provide a valuable resource in cases of suspected financial exploitation?

It's crucial to understand that a trusted contact is not an authorized party on a client's account. This means they are not permitted to obtain private information or contact a financial professional on the client's behalf without appropriate legal authority, such as a Power of Attorney (POA).

Here are a few key points to remember when selecting a trusted contact:

• Customization is Key: You may choose a different trusted contact for different account registration types. For example, the trusted contact for a traditional IRA may not be the same individual listed for a non-retirement account.
• Avoid Existing Parties: It is strongly recommended that the trusted contact not be someone already authorized on your account, such as a joint owner. The primary goal is to have a third-party resource we can notify if we have concerns about potential financial exploitation.

By properly educating you on the role and purpose of a trusted contact, we can better protect you and ensure we have the necessary resources to act in your best interest.

Insurance Isn’t Just a Safety Net

Insurance isn’t just a safety net—it can be a practical tool to solve specific estate planning challenges. For anyone building a legacy, from high-net-worth individuals to young families, a well-structured insurance strategy can help protect what you've worked hard to build. Here are a few key situations where insurance can add value:

Life Insurance for Immediate Needs

Why it matters: Life insurance provides immediate cash when it's needed most. This can help your family pay for essential costs without having to sell off important assets like the family home or a business.

• Final Expenses & Debts: Provides immediate cash to cover funeral costs, medical bills, or outstanding debts.
• Estate Taxes: For those with larger estates, a policy can be a smart way to cover potential estate taxes, helping to ensure heirs don't have to sell inherited property just to pay a tax bill.

Solving the 10-Year IRA Rule Problem

Why it matters: The SECURE Act introduced a new 10-year rule that requires most non-spouse heirs to empty an inherited IRA within 10 years. This can trigger a large tax bill for your beneficiaries.

• The Strategy: One approach is to gradually convert a traditional IRA to a Roth IRA, paying the taxes at a lower rate now.
• The Insurance Solution: Consider using a life insurance policy to replace the money you spent on those conversion taxes. Your heirs then get a tax-free Roth IRA, with the insurance payout helping to offset your tax costs.

For Married Couples: A Smart Solution

Why it matters: For married couples, a single, specialized policy can be an efficient and affordable planning tool.

• "Second-to-Die" Policies: This type of policy covers both partners but only pays out after both have passed away.
• Lower Premiums: Because the payout is based on the life expectancy of both partners, premiums are typically much lower than two separate policies.
• Passing on Assets: This can be a great way to provide the money needed to cover estate taxes or simply to ensure the family home can be passed on to heirs without a forced sale.

Don't Let Long-Term Care Derail Your Plan

Why it matters: The high cost of nursing homes, assisted living, or in-home care can quickly deplete an entire estate, leaving little behind for your loved ones.

• Asset Protection: Long-term care insurance can help protect your savings by providing a reliable source of funds for care.
• Relieving the Burden: It can also remove the financial and emotional burden from your family members who might otherwise become caregivers.
• Hybrid Policies: Many newer policies combine long-term care coverage with a life insurance death benefit, helping to ensure that if the LTC benefit is never needed, your heirs will still receive a payout.

Annuities as a Legacy Tool

Why it matters: Annuities can provide a dependable paycheck for retirement, and also serve as a valuable tool for passing on wealth.

• Probate Avoidance: Annuities can often bypass the long and expensive probate process.
• Direct & Private Transfer: By naming beneficiaries directly on the contract, the funds may be distributed to them quickly and privately, helping to ensure your legacy is passed on without delay.
• Guaranteed Features: Many annuities include features that can provide a death benefit or protect the original investment from market volatility.

An Annuity is a long-term financial product designed largely for asset accumulation and retirement needs. Annuities generally contain fees and charges which include, but are not limited to, surrender charges, administrative fees and for optional contract riders and benefits. Withdrawals and death benefits are subject to income tax. If withdrawals and other distributions are received prior to age 59 1/2, a 10% penalty may apply. All guarantees of an Annuity are backed by the claims paying ability of the issuing insurer.

Tech Tips

How Password Managers Can Save Your Sanity

We all know how frustrating it can be to remember dozens of passwords. That’s where password manager apps come in. They store your login info securely and help you create strong, unique passwords for each account.

But are they safe? And should you use one?

Here’s a quick breakdown:

What Is a Password Manager?
It’s an app that stores your usernames and passwords in an encrypted vault. You only need to remember one master password to access everything.

Popular options include:

• 1Password
• Chrome Password Manager
• Dashlane
• Bitwarden
• LastPass
• NordPass

Pros:

• Convenience: No more forgotten passwords or sticky notes.
• Security: Generates strong passwords and stores them securely.
• Sync Across Devices: Access your passwords from your phone, tablet, or computer.
• Alerts: Some apps notify you if your info is found in a data breach.

Cons & Concerns:

• Single Point of Failure: If someone gets your master password, they could access everything.
• Cloud Storage Risks: Some managers store data online, which could be vulnerable if not properly encrypted.
• Breach History: A few services have had security incidents (e.g., LastPass in 2022), though most responded quickly and improved protections.

Tips for Safe Use:

• Choose a manager with strong encryption and zero-knowledge architecture (they can’t see your data).
• Read recent customer ratings and reviews. Read the description and verify the application is the correct one.
• Check that the manager offers software, applications or browser extensions that cover the devices and browsers you want to use. You can find them searching in the App Store, Google Play, your browser extension store.
• Use two-factor authentication (2FA) for extra protection.
• Make your master password long and unique—don’t reuse it anywhere else.
• Keep your app and devices updated to avoid security flaws.

Bottom Line:
Password managers are generally safe and much better than reusing passwords or writing them down. Like any tool, they’re not perfect, but with smart use, they can greatly improve your online security.

These are the opinions of Cantella and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. Diversification, asset allocation, and financial planning strategies do not assure profit or protect against loss. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk.