The New Year arrives the same way every year: full of hope, fresh starts, and the sudden realization that December was financially unhinged. The decorations come down and the credit card statement arrives. This is how New Years financial resolutions begin!

Resolution #1: “This Is the Year I’ll Track Every Dollar”

January starts strong: You download a budgeting app and start to categorize your spending. By February, you’re labelling a $347 charge as “Miscellaneous”. You shouldn’t expect perfection, but $347 is a large chunk of change to go unexplained.

Resolution #2: “I’m Definitely Saving More This Year”

Everyone plans to save “whatever’s left”, but it often means “nothing’s left”. This year’s breakthrough idea: Save first! Before you start to spend, contribute to your 401k or stash a set amount away into a savings account.

Resolution #3: “I Will Not Make Emotional Money Decisions”

This resolution usually lasts until the first market dip or social media post that claims “I turned $1,000 into $50,000 in six months”. This year, you should pause before panicking, chasing trends, or revenge-spending after a bad day at the office. While those feelings are valid, bad decisions aren’t.

Resolution #4: “I’ll Stop Checking My Accounts Every Day”

Checking your balance constantly doesn’t make you more prepared. It just makes you stressed with more data. Markets go up and down. Refreshing the app won’t change that. Checking less often is a form of self-care.

Resolution #5: “I’ll Be Smarter Than Last Year”

This is the most realistic resolution of all. You don’t need to be perfect: Just smarter, more intentional, and a little less reactive.

But The Only Resolution That Really Matters:

Make money decisions that your future self will appreciate!

Good luck in 2026!

If you need help setting some New Years financial goals, don’t hesitate to contact us for a free consultation.

If you’re an anxious investor, congratulations — you’ve chosen an activity that combines the stress of skydiving and the unpredictability of parenting.

This is your official reminder to keep calm, unclench your jaw, and stop refreshing your portfolio like it’s a breaking news story. Let’s take a quick walk through why you’re going to be just fine.

1. The Market Has Mood Swings So You Don’t Have To.

The market goes up, and the market goes down, sometimes for absolutely no reason.

Don’t try to match its energy. Your job is to keep your cool while it throws its little tantrums.

1. Checking Your Portfolio 12 Times a Day Doesn’t Actually Change It

Shocking, I know. Despite your best efforts, the universe hasn’t yet rewarded obsessive portfolio-refreshing with better returns.

Instead, think of your investments like a houseplant: If you poke it every hour, it won’t grow faster. It’ll just develop anxiety.

1. Every Dip Is Not the Beginning of the End

When the market drops 2%, anxious investors react like someone just cut the wrong wire on a bomb. But dips are normal, expected and healthy.

Think of it like a sale at Target — everything is temporarily cheaper. Nobody panics, and everyone celebrates.

1. You’re Not Alone

Even the calmest, spreadsheet-loving investor has had a moment where they’ve stared at a red chart like it’s a horror movie.

You’re not a bad investor because you get nervous. You’re a human investor. But you can be a successful one too — nerves and all.

1. Don’t Make Big Decisions During Small Moments of Panic

This is the golden rule of investing. If you’re emotional, step away. No selling. No drastic changes. No dramatic declarations like “I’m going to buy a farm and live off the land.” Just relax and revisit it later with a clear head.

Final Thoughts: You’ve Got This (Even If It Feels Like You Don’t)

The next time the market dips and your internal alarm bells start ringing, remember this: Take a breath. Trust your financial plan. Keep calm.

And maybe…close the app! Your future self will thank you.

If you have any concerns about your investment strategy, contact us for a free consultation.

Yes, there are ways to make the government take less of your hard-earned money — and no, it doesn’t involve moving to the Cayman Islands or claiming your dog as a dependent.

Here are a few of the most common and effective ways to keep Uncle Sam out of your pocket.

1. The 401(k): Future You Says “Thanks”

Contributing to your 401(k) means sending money to your future self. Every dollar you put in now also lowers your taxable income. It’s like telling the IRS, “You can’t have this money…yet.”

TIP: Don’t avoid your 401(k) just because your company doesn’t match! The tax savings will make up for it.

2. Tax-Loss Harvesting: Turning Financial Losses into Tax Savings

Have any stocks that are currently in the red? Good news – You can sell them and use the losses to offset other gains. Lemons -> Lemonade.

TIP: You can buy the lost stock back, but you have to wait at least 30 days.

3. The HSA/FSA: Save on Taxes While Saving Your Health

Consider these “savings accounts that went to tax heaven”.

• You contribute pre-tax.
• You withdraw tax-free for medical expenses.
• HSAs (Not FSAs) can grow tax free year after year

TIP: You must use these for medical costs, not on trips to Vegas.

4. The Home Office Deduction: Because Your Couch Deserves Compensation

If you work from home, congratulations — your living room may be tax-deductible.

TIP: Just make sure that it’s actually your office. The IRS will get suspicious if you try to write off your billiard table.

5. Charitable Donations: Give, and Ye Shall Receive (a Deduction)

Donate to charity — because helping others is noble, and it can lower your tax bill. Generosity has a refund attached!

TIP: Just make sure you keep receipts. “I swear I Venmo’d a guy named Steve for cancer research” won’t hold up in an audit.

Tax-saving investments aren’t just about money — they’re about peace of mind. Because nothing feels better than filing your taxes and realizing you (legally) outsmarted the system.

Don’t Fumble Your Finances

It’s September, which means two things: pumpkin spice lattes and fantasy football! But here’s a secret—investing and football aren’t that different. In both, strategy beats luck, teamwork matters, and occasionally somebody celebrates way too early.

1. The Quarterback = Your Financial Plan

Your plan calls the plays. Without it, you’re just running around like a rookie QB under pressure, throwing money into whatever stock “looked open.” Stick to the playbook—retirement, savings, risk tolerance—before you launch a Hail Mary into Crypto.

2. The Offensive Line = Diversification

A strong O-line protects the QB. Diversification protects your money. You wouldn’t stack your whole offensive line with kickers, so why would you dump your entire portfolio into tech stocks? Spread it out, block the risks, and keep your investments moving downfield.

3. The Defense = Emergency Fund

Markets blitz. Life blitzes harder. Your emergency fund is the defense that keeps you in the game when the market—or your car transmission—decides to collapse. Don’t underestimate it.

4. Special Teams = Side Hustles

They don’t get much glory, but a good punt return can flip the script. Same with side hustles. That extra income could be the difference between 4th-and-long and first down.

5. The Hail Mary = Meme Stocks

Sure, they’re exciting: The crowd’s on its feet, your adrenaline’s pumping—but odds are that it’s not going to work.

6. The Coach = Your Advisor

You may be the owner of the team, but your advisor is the coach. Good coaching means discipline, patience, and knowing when to punt. You don’t need to score touchdowns to win the game.

The Final Whistle

Investing isn’t about flashy plays—it’s about grinding out yards, protecting your quarterback, and making steady progress toward the end zone (a.k.a. retirement). So, build your playbook, huddle up with a financial advisor, and remember: when it comes to money, don’t fumble!

In the wild west of 2025 — where A.I. picks stocks and everyone’s launching a side hustle— it’s easier than ever to get duped. Let’s break down some of the most common too-good-to-be-true investment pitches that should raise serious red flags.

1.  The “Guaranteed ROI”

If someone promises you guaranteed returns, especially daily returns, you’re not being offered an investment — you’re being offered a mathematical impossibility.

2.  The “Offshore Opportunity”

“Our new fund is based in the Cayman Islands — for flexibility.”

Translation: We want zero oversight. Offshore doesn’t automatically mean shady, but when paired with exotic promises and no verifiable records? You’re not investing — you’re paying for someone else’s yacht.

3.  Anyone that tells you you’re “Still Early”

Creating a sense of urgency is the oldest scam in the book. Think about it: If the investment offering was that good, then there’d be no slots left. This is especially common in real estate offerings.

4.  A “New and Exciting Crypto Token” with a great logo… but NO purpose.

If it’s not one of the major crypto players, then buyer beware. You could be inadvertently supporting a random stranger’s legal fees.

5.  “A.I.-Driven Investing That Never Loses”

“Our algorithm beat the market 97 out of the last 97 times!”

Sorry…but nothing beats the market 100% of the time.

6.  “Join Our Wealth Circle”

“You get 2 people to join, they each get 2 people, and we all make millions!”

This is the definition of a Ponzi scheme. If you make more money recruiting people than selling the actual product — congratulations, you’re in a multi-level mess.

Don’t become a financial cautionary tale that we’ll talk about in a future newsletter! Just remember:

• If it’s guaranteed, it’s suspicious.
• If it’s vague, it’s dangerous.
• If it quacks like a scam, it is.

If you have any concerns about an investment strategy that seems suspicious, don’t hesitate to contact us for a free consultation.

The world of personal finance is filled with myths, legends, and the kind of “advice” you’d expect from your crazy uncle who once invested in Beanie Babies. Here are just a few of the many that we’ve heard over the years:

Myth #1: “Credit cards are evil.”

Reality: Credit cards aren’t evil. The key is to use them responsibly and take advantage of their rewards. Don’t spend like you’re part of the royal family, and make sure you pay your balance in full.

Myth #2: “Investing is just like gambling.”

Reality: No, investing is strategic risk management. Gambling is what you do when you convince yourself you know how roulette works after two martinis. When you invest, you’re owning a piece of a company. When you gamble, you’re betting your mortgage on a horse named “Going 4 Broke”. See the difference?

Myth #3: “You need to be rich to start investing.”

Reality: If you have $5, you can invest. That’s less than a gallon of gas in California. It’s never been easier to start investing. Start small, stay consistent, and let growth and compound interest do the heavy lifting.

Myth #4: “I’ll just work forever.”

Reality: Bold plan. But what if your body has other ideas? Working forever isn’t a retirement plan — it’s a gamble wrapped in denial. Save now, so you don’t have to deliver pizzas at 82 just to afford arthritis cream.

Myth #5: “I don’t need an emergency fund because I have a credit card.”

Reality: Credit cards are a tool, not a safety net. An emergency fund is for real surprises — like job loss, medical bills, or your car dying right after the warranty expires. Aim for 3–6 months of living expenses.

Myth #6: “I’m too young to worry about retirement.”

Reality: You’re also too young to have back pain, but here we are. The earlier you invest, the less you have to save later. And if you start young, you can afford to weather more market storms.

Myth #7: “If I make more money, all my financial problems will go away.”

Reality: Lifestyle Creep is a real thing. Suddenly you’re making six figures and wondering how you still can’t afford a trip to Target. More income doesn’t mean better money habits. If you can’t manage $40K, $140K won’t save you — it’ll just give you more to mismanage.

Myth #8: “My partner handles all the money, so I don’t need to worry.”

Reality: Love is beautiful, but financial ignorance is a romantic comedy that ends in bankruptcy. You need to know what’s going on with your money! Don’t be the one who’s surprised by a second mortgage and a secret motorcycle.

Final Thoughts:

Financial myths are everywhere — passed down from well-meaning friends, “Fin-fluencers,” and that guy in your office who keeps quoting Warren Buffett, but lives paycheck to paycheck.Don’t fall for the myths, learn the basics, trust the math, and don’t be afraid to contact us if you have any questions!

The odds of picking all 63 NCAA tournament games correctly are 1 in 9,223,372,036,854,775,808!* No one has ever picked all 63 games correctly. In fact, no one has even come close (49 picks is allegedly the best ever to start the tournament). The reality is that you don’t need anything even remotely close to a perfect bracket in order win your office pool.

So, where are we going with this?

Since 1947, only about 20% of U.S. stocks have survived and outperformed the market over any given 20-year period.** The other 80% either underperform or get delisted. However, had you been fully invested in the S&P 500 since 1947, you’d be up 468,679%! With these stats in mind, why would you ever take the risk of trying to pick individual stocks to outperform the market?

We would equate being fully invested in the S&P 500 as the rough equivalent to picking #1 to #4 seeds to win your bracket. It may be boring, but the odds are in your favor. Being cute and picking a Cinderella team (or stock) to win it all is almost guaranteed to be a losing bet.

If you need help with your NCAA bracket (or your financial plan), please contact us for a free consultation.

Please check out our Position Wealth Video Blogs and the Position Wealth Website.

*https://www.ncaa.com/news/basketball-men/bracketiq/2023-03-16/perfect-ncaa-bracket-absurd-odds-march-madness-dream.

**https://www.dimensional.com/ie-en/insights/singled-out-historical-performance-of-individual-stocks

Crypto continues to be that one party guest who shows up, makes a scene, then disappears for three months. When he returns, he comes in wearing a hoodie, acting like nothing happened.

If you thought we’d left the volatility of 2021 behind us—spoiler alert—crypto had other plans. Bitcoin, Ethereum, and the rest of the gang have been extremely volatile lately, akin to predicting the weather inside of a tornado. So if you’re in it for the long haul, keep a parachute handy! At the end of the day, cryptocurrency is an unregulated, digital currency, not backed by the full faith and credit of anyone, riddled with fraud, money laundering, and hacking.

But here’s the thing—while the volatility might make you feel like you’re on an emotional rollercoaster, there’s an upside. Blockchain technology (the underlying tech behind most cryptocurrencies) is actually kind of genius. It’s transparent, secure, and decentralizes a lot of the stuff that traditional systems do. Basically, it’s like moving the financial system out of that musty back room with all the ledgers and into the digital age—without the fear of someone messing it up. It’s no surprise that most major tech companies, financial institutions, and governments are looking into it. Think of blockchain as the cool new neighbor that built a modern house, who just invited you over for a wine and cheese tasting.

If you own crypto and have any questions or concerns, don’t hesitate to contact us for a free consultation.

Please check out our Position Wealth Video Blogs and the Position Wealth Website.

A recent survey from Nerd Wallet showed that 31% of sports bettors perceive gambling as an investment. This is up from 14% in last year’s survey.^* Here’s the kicker: only 40% of bettors had net gains in the past 12 months. That means 60% were net losers! Here’s another kicker: Approximately 1 in 7 sports bettors say that they’ve gone into debt to continue gambling.

Pop Quiz: A friend tells you that their investment idea is 60% likely to lose money, and you have a 1 in 7 chance of going into debt to keep doing it. Would you invest in it?

Even DraftKings CEO Jason Robbins acknowledged the problem in a recent Forbes article: “It’s an entertainment product. It’s not something that we recommend people looking at as an investment”.^** In the same article, Stephen Shapiro, a professor of sports and entertainment at the University of South Carolina called sports betting “more akin to day trading than long term investing”.

Look, we’re not naive enough to suggest that people shouldn’t bet on sports. But if you’re discussing the intricacies of a 10-leg parlay, dissecting each over/under like a “seasoned” analyst, or studying point spreads in the European handball leagues, then there may be a problem. And let’s call it what it is: gambling. In all seriousness, if you think that you may have a gambling problem, you can call the National Problem Gambling Helpline at 1-800-GAMBLER.

If you want to get serious about long-term investing, please contact us for a free consultation.

^*www.nerdwallet.com/article/investing/2025-sports-betting-and-gambling-survey#:~:text=Around%201%20in%207%20sports,this%20year%20compared%20to%202024

^**fortune.com/2025/02/15/sports-betting-investment-draftkings-ceo-jason-robins-dkng-earnings/

We frequently get asked about Roth Conversions. 95% of the time it’s not the right strategy, because the reasons for wanting to do it are often based on unknown future events. We want to set the record straight with some points about what it is and who it might be suitable for.

A Roth Conversion involves transferring IRA money into a Roth IRA. You pay taxes on the conversion now. In exchange, you get tax free growth on the Roth IRA.

Why it might not work for you:

1. Taxes: You must pay ordinary income tax today on the entire conversion amount. This is in addition to your employment income. I.e. For a $250,000 conversion, the additional tax burden could be at least 32%, or $80,000.
2. Math: Your $250,000 conversion just got reduced by 32% to $170,000. Just to get the Roth back to the original $250,000, you’ll need an investment return of 47% (not 32%). BTW, a 47% investment return on your original $250,000 IRA would equal $367,500! Assuming the same investments, your IRA will greatly outperform your converted Roth over time due to compound interest on a higher starting number.
3. Taxes (again): A popular opinion is that we’ll have higher tax rates in the future. While that may be true during your working years, this likely won’t be the case during your retirement. What that means is that your tax burden for taking IRA distributions (vs Roth) will be a) spread out over 20 to 30+ years when b) your tax rate will be lower.

Why it might work for you:

1. Income: You decide to take a sabbatical, start a business, or you’re unemployed this year. Your tax rate may be the lowest it’ll be for a while, so a conversion could be worth it.
2. Beneficiaries: If you want to shoulder the tax burden for your beneficiaries, then a conversion might make sense.
3. Relocating: If you live in a low tax state during your working years but plan on moving to a high tax state in retirement, then paying the taxes to convert now might also make sense.

If you’re unsure about whether a Roth Conversion makes sense for you, please contact us!Please consult with your tax professional if you’re considering a Roth Conversion.

It should come as no surprise that January is the peak month for gym visits. After stuffing ourselves for the previous 2 months, we all want to get back into shape. Unfortunately, by Mid-March, gym visits start to drop as people remember how hard it is to stay in shape. It’s physically demanding, takes time, and is not for the faint of heart. But we’re not here to motivate you back into the gym. We’re here to tell you about some Financial New Years Resolutions that don’t require memberships or getting on a treadmill. The best part is that this once-a-year housecleaning will lead to a lifetime of less financial stress.

1. Increase your 401k contributions. The IRS increases the limit annually, so you should take full advantage.
2. Reevaluate your monthly budget. Look for inefficiencies and trim the excess. Each year you should strive to eliminate unnecessary expenses from your budget.
3. Reducing your debts. Recalculate how long it will take you to pay off your debts and hold yourself accountable. Take any eliminated expenses and apply them to your debts!
4. Wills and Trusts.
   If you’ve had any major life events over the past 12 months, then odds are you’ll need to update your wills and trusts.
5. Check your emergency savings. It’s a good habit to keep enough cash around to cover 3-6 months of essential living expenses. Loss of job, major car or house maintenance, or unplanned medical procedures can drain your resources quickly if you’re not prepared.
6. Do something fun! Financial planning shouldn’t be all business. Take a trip to visit a college friend. Have a spa day. Get those Nike Air Jordans you’ve wanted for years. Your mental well-being is top priority.

If you need a push to help you with your Financial New Years Resolutions, contact us for a free consultation.

Who are we kidding? This could probably be part 2 of 7 with the sheer number of missteps investors are making. Maybe someday this list will get shortened!

To recap, here are the investing mistakes we discussed last month in Part 1:

1. Worrying that every stock market drop is the start of a crash
2. Avoiding the stock market when things are good
3. Focusing on a small group of stocks
4. Holding too much cash
   While we wish this was the end of the list because you listened to our sage advice, there are more to add:
5. The Taxman Cometh. Investors that own after-tax accounts might get stuck with a large tax bill if they’re not careful. Only selling the winning investments and not tax-loss harvesting are reason enough to give Uncle Sam more than what he deserves.
6. Paralysis by Analysis. Investors often get caught up in the what ifs: “Should I pick stock A over stock B?”, “What price should I pay?”, What if I buy stock B and it drops tomorrow?”, “What price should I sell at?”. If you’re asking these questions, you’re asking the wrong questions! Investing can be uncertain, and no 1 investment is going to be the solution. Having a long-term plan with a diversified portfolio is your best bet.
7. Block out the noise! Political turmoil, wars, and natural disasters are all just part of life. Worrying about what may never come is losing strategy. Rather than using headline news or conspiracy theories to dictate decisions, investors need to look at the economic data that drives the stock and bond markets (corporate earnings, GDP, unemployment data, etc.)

If you find yourself falling for one of these mistakes, contact us for a free consultation. Trust us, you’ll be doing you and your loved ones a favor.

A college course could be taught on this subject, but we’ll keep things simple since we only have your attention for the next 60 seconds. We’ll follow up with Part 2 next month.

1. Worrying that every stock market drop is the start of a crash. Since 1980, on average, the stock market has had 4.5 intra-year drops of at least 5%, and a 10% drop every 1.2 years. It happens more frequently than you think, so worrying about these smaller drops or timing the stock market are losing ventures. These smaller drops could actually be perfect buying opportunities.

2. Avoiding the stock market when things are good. The stock market hits all-time highs on a regular basis. Fearful investors who interpret all-time highs as a sell signal can miss out on substantial gains. Fun Fact: since 1933, every president except 2 (GWB and Nixon) left office with a higher stock market than when they entered office.

3. Focusing on a small group of stocks. The recent bull market has been unusually concentrated around a select handful of stocks. Investors may experience FOMO and make risky bets by doubling down on these stocks. Since past performance doesn’t guarantee future results, investors may find themselves much worse off. It’s always better to stay the course with a diversified portfolio based on risk tolerance, time horizon, and financial planning goals.

4. Holding too much cash. Cash became king again as interest rates spiked. Unfortunately, investors sitting on too much cash have been (and continue to get) significantly outpaced by the markets. Since 1/1/2023, the S&P is up 42%, the NASDAQ 61%, and the Bloomberg bond index is up 9%. To quote the great Warren Buffet, “Be fearful when others are greedy. Be greedy when others are fearful”

If you find yourself falling for one of these mistakes, contact us for a free consultation.

The term “fake news” was first used in the 1890s when newspapers realized they could sell more papers by sensationalizing stories. The only thing that’s changed in 135 years is the format! Instead of receiving a newspaper once a day, we’re now bombarded 24/7 with questionable content on our phones, TVs, and computers. Determining what’s real or fake has become exhausting.

Financial news has also become sucked into this problem, as politics has further muddied the waters. Individuals or conglomerates with political agendas now own financial news stations. By preying on people’s biggest source of stress (money), it’s very easy to sway their political choices. Depending on what channel you’re watching, the economy could either be doing “very well” or “in a recession”.

While it’s nearly impossible to avoid the news altogether, it’s much more feasible to gather your information from a variety of sources. If you hear a wild conspiracy theory on late-night TV about using your life savings to buy gold coins, take it with a grain of salt.

Lastly, by comparing what was predicted against what came true, you can easily determine the quality of the source. If one of your sources is never correct, consider moving on!

If you have any questions about the legitimacy of your financial news, contact us.

So, check this out…59% of Gen Zers and 56% of Millennials get their investment information from social media. However, a majority (56%) of those that give the advice (the finfluencers) have “negative skill”, underperforming average investment returns by -2.3% per month, or -27.6% per YEAR!* You wouldn’t trust Dr. Google to give you medical advice. So, why would you trust Instagram Advisor to help you make investment decisions?

Social media is here to stay, and unfortunately a large group of unlicensed financial hobbyists have grabbed your attention, with millions of followers in tow. It’s no surprise that finfluencers are now on the radar of the SEC and FINRA (the 2 largest U.S. financial regulatory bodies). But because the SEC and FINRA are primarily focused on licensed professionals, these unlicensed hobbyists have largely flown under the radar. So, it’s very easy for them to give “hot stock tips” with little consequence.

How we as licensed financial professionals can use social media is highly regulated. The laundry list of what we can’t say on social media is long, primarily because we don’t know who our audience is going to be. i.e. How can we recommend a stock to someone whose entire financial picture we don’t intimately know? So, if you follow someone who gives “hot stock tips”, rest assured the advice you’re getting is likely garbage!

Our advice to you is to know who you’re following, and to know that investing isn’t one-size-fits-all. Everyone has different goals, time horizons, and risk tolerances. If you need customized, regulated advice from licensed financial professionals, please contact us for a free consultation. We’re here to help!

*”Finfluencers”. Swiss Financial Institute Research Paper, May 3, 2023. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4428232

You may either be an armchair golfer watching The Masters or an avid league player about to tee it up at your local course. Either way, there are lessons that can be taken from the golfing world which can be applied to your investment and retirement planning strategy.

1. Have a Strict Routine: Great golfers have a consistent and disciplined routine before taking every shot. Investors that create and follow a similar path are also poised for success. Contributing to your 401k and brokerage account each month is a perfect example!
2. Seek Good Advice: Serious golfers have coaches to help them achieve peak performance. Serious investors are no different. Finding someone that can look for your swing faults and correct them is crucial to accomplishing both your golf and financial goals.
3. Ignoring The Noise: “I didn’t hear the crowd noise” is a common line you’ll hear from professional golfers. Investors also need to tune out the noise, which includes market swings, advice from untrained family and friends, or panic-driven news reports.
4. Bad Shots Will Happen: All golfers know that bad shots will always happen during a round. Adjusting your swing mechanics after a bad shot is a recipe for failure. Elite golfers have developed the mental toughness required to focus solely on the next shot. Experiencing market volatility is like hitting a bad shot. You never want to make rash decisions when it comes, since you’re likely to buy and sell at the wrong times.
5. Everyone Has a Different Swing: No two golf swings (or retirement plans) are alike. Don’t let generic advice you see on TV or the internet alter your path. What works for one person, won’t necessarily work for the nex

If you need an experienced and disciplined financial coach in your corner, please contact us for a free consultation. Golf lessons are optional.

No, you’re not really a dummy. We just needed a catchy title! We actually discuss index benchmark performance with our clients all the time. Despite the problems of using indexes as a measure of investment portfolio success, the feedback from clients is often the same: “But how did we compare to the S&P 500, NASDAQ, Dow Jones, etc.?”.

So, while we cater to client demand to show index benchmarks, we also disclose the numerous problems with it:

Diversification: If your portfolio is properly diversified across all stock and bond sectors, it’s nearly impossible to benchmark. There are 11 sectors of the stock market and 4 sectors of the bond market, each with underlying asset classes. If you own 100% U.S. large cap stocks, then there’s a case for benchmarking vs. the S&P 500. Otherwise, you can forget about it.

Benchmark Weighting: The NASDAQ is a stock index made up of the largest 100 tech companies. The largest 7 companies now make up FIFTY PERCENT of the index!

The Dow Jones Industrial Average only contains 30 stocks: If you have a solid financial game plan and own a diversified risk-appropriate portfolio, then there shouldn’t be any need to compare to the indexes.

There’s no need to compare!: If you have a solid financial game plan and own a diversified risk-appropriate portfolio, then there shouldn’t be any need to compare to the indexes.

If you’re in need of a financial game plan, or want to know if you’re properly diversified, contact us for a free consultation.

Have you ever felt like you’re paying more taxes than you should? Well, you’re not alone! Uncle Sam has a way of making even the most profitable investments feel like a loss. But what if there was a way to ease your tax burden on these winners? That’s where tax-loss harvesting comes in, a strategy that allows you to offset your gains with losses.

Think of it like this: imagine you’re a farmer and you’ve had a bad year. Your crops have withered and you’ve lost a lot of money. But then you remember that you have a giant pile of manure sitting around. So, you decide to sell the manure to a fertilizer company. Now, you’ve turned your loss into a gain!

Tax-loss harvesting is similar. You sell your losing investments to offset your winners, lowering your taxable income. And just like the farmer, you’ll have more money in your pocket to do with as you please.

Here are a few tips to get you started:

• Identify your losing investments. Take a look at your portfolio and see which investments have lost money this year. These are the ones you’ll want to sell for tax-loss harvesting.
• Consider your tax bracket. The amount of money you save by tax-loss harvesting will depend on your tax bracket. The higher your tax bracket, the more you’ll save.
• Don’t sell your investments just for the tax break. Make sure you still believe in the long-term potential of your investments before you sell them.

If you’re not sure how to get started with tax-loss harvesting, contact us for a free consultation.

Happy Harvesting!