​Generational wealth is often built through real estate, as it provides a relatively accessible path for adult children who struggle to save money. Many view real estate as a valuable asset rather than an expense. However, qualifying for a mortgage or saving for a down payment can be nearly impossible without financial assistance. When parents help with this process early on, they set their children up for long-term success. The challenge, however, is that not everyone is in a position to do so, and it’s important to assess how this could impact your income—especially if you are nearing retirement.

For parents in a strong financial position, it’s best to avoid tapping into their IRA accounts. Withdrawing from an IRA could create a significant tax burden for both parties. IRA withdrawals are taxed as ordinary income, so if parents rely on their IRA for retirement, taking out more than needed could push them into a higher tax bracket. Additionally, Medicare premiums are based on income from the previous two years, meaning a large withdrawal could increase insurance costs during that time.

A more tax-efficient strategy may involve using after-tax accounts. These accounts can be ideal for funding a home purchase, and if managed correctly, they may have minimal tax implications for the parents. It’s also important to consider the Tax Cuts and Jobs Act (TCJA) of 2017, which doubled the lifetime gift exemption for beneficiaries to $13.99 million starting in 2025. If a child receives more than the gift limit, they could face tax consequences. Consulting with a tax professional is essential to ensure proper planning for your child’s future.

If you plan to buy the house yourself and have your adult child make payments, it’s crucial to ensure the home is titled in a way that benefits them. In cases where there are multiple children and the parents have passed away, an improperly titled estate—without a transfer-on-death designation—could leave the asset’s distribution to the discretion of the estate's guardian, potentially leading to complications.

When making major financial decisions, it’s essential to assemble a team of financial advisors, tax preparers, and estate attorneys to ensure the best outcomes for both the present and the future.

I've seen many people get into trouble with their spending habits, especially when they have extra money and don't save it. Over the years, I've observed some of the worst ways tax refund checks have been spent.

A Down Payment on a New Car or Boat (Lease or Purchase)
Depreciating assets is one of the worst ways to spend your money. Generally, when someone puts a large sum down on a car or boat, they believe it will help reduce their monthly payments. However, they are often still paying high interest rates. Many times, they won’t be able to pay off the loan before the vehicle or boat breaks down. While salespeople may counter concerns about high interest by offering refinancing options, interest rates haven’t improved much in recent years. If the loan balance exceeds the asset’s value, refinancing may not even be an option. Ideally, you should be able to make these payments in line with your income and expenses without needing extra funds to cover them.

Paying Off Small Debts with the Lowest Interest Rates
It may feel great to pay off a small loan, but if that loan has a lower interest rate than others, you're potentially prolonging your financial struggle. Instead, prioritize paying off higher-interest debt to reduce the total interest you pay over time. These loans might have larger balances, but by tackling them first, more of your payment will go toward reducing the principal, helping you pay off the debt more quickly.

Putting it in a standard savings account for a large purchase
At first glance, it may seem like you’re making a smart decision by saving your money. However, with current inflation, you could actually be reducing the value of your savings. Considering a high-yield savings account or a fixed CD for a set period is a better way to maximize your returns. When evaluating a CD or high-yield savings account, be sure to consider the duration and your liquidity needs.

Ultimately, the key question to ask is: Will this purchase contribute to future debt, or will it help grow the assets in my portfolio? If you're someone who struggles to see the long-term impact of your spending beyond immediate gratification, it's wise to consult a financial advisor for guidance.

​Emotional investing is nothing new to the markets. In recent history, we have seen it work in our favor as promises of growth propelled our future. However, when investors are warned that momentary pain is on the horizon or are already experiencing it—a primal sense of survival takes over. How do we evaluate this and recognize when to preserve and when to pivot?

Evaluating where you are in your plan is the first step in assessing your next move. Just as you would not continue your strategy in chess after a counter-move without reading the board, it’s important to reassess your position. In some cases, that might mean stepping back to position yourself for a stronger defense. This pivot can involve sectors, bonds, or equities that you may not have previously considered. As you evaluate, you will need to establish a time horizon for performance and set expectations for pivoting again. This method will keep you vigilant and foster a sense of control.

Preserving your future contributions to avoid undue market volatility is not always the favored approach, but when all asset classes decline, cash can be the best place to hold until markets reach all-time lows. When evaluating an entry strategy from a preservation or cash position, the metrics differ from those used when dollar-cost averaging into the market. You will need to determine which positions have the most upward trajectory or resilience in similar conditions. This approach allows for faster growth, as accumulation occurs without needing to recover from market turmoil. However, it is important to note that past performance is not an indicator of future growth.

Those nearing retirement have likely already discussed with me how to structure a plan that allows for market corrections without affecting their income. For those with a longer time horizon, stockpiling and investing now may present an opportunity, as this could be the lowest market level seen for some time. If you know someone who is struggling to feel confident in their plan, refer them to me so they can experience the same peace of mind that comes from the strategies we set up earlier in the year.

Are you preparing your taxes and preliminarily seeing that you owe this year? While that can be frustrating, there is still time to reduce your taxes if you qualify. The main ways are through contributions and losses—contributions to a traditional IRA or HSA and realizing losses from a brokerage account. Contributions need to be made by April 15th, and losses have closed out in past years but can roll over.

Traditional IRA
For 2024, the maximum IRA contribution is:

• $7,000 for those under 50
• $8,000 for those 50 or older

This can be directly deducted from your income. However, certain exceptions may limit the full deduction, such as if you or your spouse have a 401(k) through work or if your income exceeds certain thresholds. At a glance, here is whether it’s possible to contribute to get that deduction.

HSA Contribution
Contributing to a "prior year" HSA is another option for people who have a high-deductible healthcare plan (HDHP). Those plans have access to an HSA, and contributions can be tax-deductible. If you are unsure whether you have the right type of plan, ask your benefits specialist.

• $4,150 for an individual plan
• $8,300 for a family plan
• Additional $1,000 for those over age 55

If both spouses have a family HSA, their max contribution can be $8,300 combined. Lastly, if your employer contributes to these plans, their contributions will count toward your total contribution.
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Capital Losses
You can deduct up to $3,000 from your ordinary income if you sold positions in your brokerage accounts in the previous year. These losses can roll over from year to year. Be sure to keep records of these transactions and consult a tax professional for personalized guidance.

​If you have talked to your tax preparer and are ready to fund an account, we are here to help. With an array of investment options and guidance tailored to your financial goals and risk tolerance, we will ensure your account fits into your broader financial plan.

Reference
1. Publication 590-A (2024), Contributions to Individual Retirement Arrangements (IRAs)

I love this exercise and implement it with my clients. I call it Frugal February—the perfect financial reset for anyone who has experienced out-of-control spending after the holidays. I prefer February because it’s the shortest month, and people often lose momentum with their financial goals around this time. This strategy provides the perfect boost to help them regain focus and stay on track.

In an ideal no-spend month, it’s essential to have a budget already in place. This helps you clearly understand your usual spending patterns and allows you to streamline the expenses that will automatically deduct from your account, such as rent or mortgage, utilities, transportation, debt payments, and subscription services. For subscriptions that automatically renew, consider putting non-essential ones on hold or removing them entirely if they no longer serve a purpose. The goal is to keep only necessary expenses in your account, with the rest transferred to a high-yield savings account to earn interest. The focus here is to maximize how much you save during the month.

Next, create a comprehensive inventory of essential monthly needs—food, hygiene products, medical prescriptions, and so on. The key is to assess your needs ahead of time to avoid impulse purchases. This also helps you distinguish between wants and needs. For example, you may encounter tempting offers on Amazon or in the grocery store, but ask yourself: "Will I actually use this in the next month?" All non-essential purchases should be completed before the start of the no-spend month.

Lastly, plan your days—not just your meals, but your social activities as well. If you can host events at your place or spend time with friends at theirs, you’ll avoid unnecessary spending and FOMO. By taking these proactive steps, you're not only setting yourself up for financial success but also reinforcing the discipline needed to maintain long-term financial health.

There are three types of individuals who may struggle to successfully commit to a no-spend month:

• Those whose fixed expenses fluctuate by more than $100-$200 per month, making it difficult to predict and control spending.
• Individuals who frequently make impulse purchases or who are prone to making concessions for purchases they’ve already committed to.
• People who lack self-motivation and do not seek out accountability partners to help them stay on track.

When I work with my clients, we typically spend an hour reviewing the plan and addressing any questions. Afterward, it’s up to them to implement the strategy, which may involve several hours of shopping, budget organization, and necessary preparations. I’ve seen firsthand how these steps empower people to leap into the new year with achievable financial success.

The IRS has released new tax brackets and contribution limits for 2025, which are detailed in the charts below. Before we dive into the specifics of the 2025 tax year, let’s examine five actions you can take now to maximize your tax position for 2024:

1. Maximize your 401(k) contributions
2. Make a contribution to your IRA/Roth
3. Fund your HSA
4. Tax-loss harvesting
5. Establish a 529 plan
   

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Now that you have these accounts funded, it’s time to invest them. I can assist you in this process. Based on your account values, financial objectives, and time horizon, we can create a plan to make your funds work for you.
For those of you preparing your tax plan for 2025, here are some crucial details you’ll need to know. Tax brackets have been adjusted for inflation, with an approximate 2.8% increase, which is smaller than in previous years. The Tax Cuts and Jobs Act will expire at the end of 2025, potentially pushing taxpayers into higher brackets in the future. Additionally, the Secure Act has introduced some new provisions.

Buying your first home is a tricky process. I bought my first house at 23, thinking I had it all figured out. Home values were steadily increasing, and mortgages only required a 5% down payment. Then 2008 hit, and I discovered that my house could become “underwater.” I realized I needed to adopt a long-term perspective. Here are three ways to own a home without excessive debt.

Know Your Current Expenses
When imagining your ideal home, compare its square footage to your current apartment and use that as a baseline for utility costs. Also, factor in amenities you currently enjoy in your apartment and consider the cost of maintaining them when you move. Examples include a gym, security features, storage, or in-house coffee stations.

Don’t Let Your Dream House Dictate Your Budget
Before looking at homes, ensure you have a preapproval letter from your lender. Think of it like getting a driver’s license—before you hit the road, you need to read the manual and pass the exam. The preapproval letter is your "exam pass," allowing your realtor to help you find a home within your means. If your dream home is out of your price range, it may not be the right time to buy.

Understand Variable Expenses
Variable expenses, such as home improvements, HOA fees/assessments, and adjustable-rate mortgages (ARMs), can cause financial trouble. First-time homebuyers may fall into the trap of renovation miscalculations. It’s important to understand the difference between a construction estimate and a construction bid. A bid is tied to a specific set of plans, and any changes require a change order that adjusts the price. An estimate, however, is a rough calculation without formal plans. Additionally, ask your realtor to research your potential HOA thoroughly. They should be able to tell you if the homeowners’ association has sufficient reserves to avoid special assessments, which are lump-sum charges beyond the regular monthly HOA fees. ARMs, although not popular for a while, have become a viable option for some buyers due to the high interest rates and potential for future rate decreases. Talk to your mortgage broker to weigh the pros and cons of this option.

These are key factors to consider when buying a home. While a financial advisor can’t help you find your dream house, a great one can set you up for success by helping you crunch the numbers, ensuring you get the most out of your home and future. I love helping my clients navigate the homebuying process, and I hope I can assist you too.

Reference
1. Adjustable-Rate Mortgages Gain Popularity Amid Surging Rates

It’s not the first time you’ve heard about a stock sell-off, but lately, some prominent names are selling off large shares. Earlier this week, it was reported that Nancy Pelosi sold a significant portion of NVDA just before the DOJ announcement. Warren Buffett also sold half of his Apple holdings in Q2. But what does this mean?

What is a sell-off?
A sell-off occurs when a large number of stocks are sold in a relatively short period of time, causing the value of those shares to decline.

Who are the major players, and when is this information disclosed?
Any publicly traded companies and insiders who own at least 10% of the company must disclose their transactions to the SEC using Form 4, which must be filed within two days. In 2012, the STOCK Act was passed, requiring members of Congress and their employees to report transactions over $1,000 (made by themselves, spouses, or dependent children) within 45 days.

From an outsider’s perspective, a sell-off may appear to be a bearish move, but motivations are not always straightforward. When you evaluate sell-offs from an institutional perspective, it could be part of a strategy to lock in gains and free up capital for value investing—a strategy Warren Buffett is well-known for. On the other hand, when a member of Congress sells off shares, the motivations might seem more transparent, but you won’t see those actions reflected for 45 days.

As an investment manager, I evaluate the decisions made by both institutional investors and members of Congress. From my perspective, The Magnificent 7 makes up 30% of the S&P 500, and NVDA accounts for about a fifth of that. If the volatility of that position is uncomfortable, you need to find investments that align better with your style. Based on these moves, there are always opportunities in the market, but you need to know what to look for. If you are navigating your way through these times and are looking for guidance, book an appointment today.


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Reference
1. Congress Trading Dashboard
2. ​S&P 500 ETF Components