Please call me or set up an appointment if you would like to discuss:
2025 Tax Updates
Your financial strategies should consider both long and short term tax implications. Income, capital gains, and estate taxation can have significant impacts on retirement and legacy planning outcomes.
Click here to access a downloadable file of 2025 tax updates and other relevent information.
Some key considerations for your planning:
(Source: SmartAsset.ocm)
Trump has stated his intention to extend the provisions of the Tax Cuts and Jobs Act (TCJA), but the debates around the extent of what, when and how much is still open. (There remains a looming challenge of how to mitigate the large annual federal deficits and a large debt – over 100% of GDP. And extending the TCJA will increase our deficit by approximately $4.5 trillion!)
Potential change from Congressional developments that can affect your financial planning include:
I am here to help you find ways to reduce and even eliminate future taxes. Now is a great time to make sure your financial and estate plans are up-to-date and account for the impact of any tax law changes that may be enacted.
Market Watch
While 2024 saw a good year for many investors, inflation and historically high valuations could cause trouble for the stock market in 2025. Bearish sentiment in February reached its highest level since November 2023, according to the American Association of Individual Investors. Additionally, while inflation has trended lower over the last three years, consumer price increases have now accelerated in four straight months.
Viewing investment through the lens of risk may seem counterintuitive, especially in a year when the market has risen so sharply. However Goldman recently cited that the market is ‘increasingly vulnerable’ to correction, and recommends downside protection… and it’s getting increasingly difficult to predict returns in the market.
(Sources: CNBC Fri, Jan 10, Business Insider, Jan 10)
Assets in traditional retirement accounts (e.g., 401ks, IRAs) and investment portfolios are subject to market volatility and risk. If you are to retire in a down market, depleting those accounts could impact your portfolio’s ability to recover during an upturn.
Consider how to reduce taxes and prepare for potential market downturns that can undermine the ability of your assets to provide effectively for your retirement.
Tax and Market Protection Strategies
There are financial strategies that can provide guaranteed income and protection from market declines, and may even potentially outperform your current investment portfolio.
Check out the links below to learn more.