​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

There comes a point in your career when you think, "I’m ready to retire." For those younger than 60, this might be a harder-than-expected process. For example, to avoid early penalties from your retirement account, you must be over the age of 59 ½. Let’s take a look at some of the top ways to retire early.

Federal employees are a prime example of being able to retire early. If you have 20 years of service by age 50 or 25 years at any age, you can trigger your pension. Since federal employees also get to contribute to a Thrift Savings Plan, it’s important to understand that there might be additional penalties for withdrawing before 59 ½.
If you are an everyday private citizen, you still have options. Many people don’t know about the Rule of 55. This is where individuals who leave their employer or are fired in the calendar year they turn 55 can take distributions without an early withdrawal penalty from the employer's 401k. Rollover IRAs would not be eligible, and public safety employees can do this as soon as they turn 50.

In retirement, there are cases where you want to keep busy. Washington teachers, if they qualify for their pension, can collect it and continue to work part-time until 2025. In some cases, nurses can as well, until 2026.

If none of these are options for you, starting a brokerage account younger or funding a high-yield savings account to bridge the gap in income until retirement might be the best option for you. These accounts have lower or, in some cases, no taxation based on your income.

Now that you have a plan, it should be as easy as starting to take those withdrawals, but in reality, depending on the funding source, you might be restricted or subject to additional taxation. I help people understand the tax implications and work towards a plan that best fits their needs and wants. Let’s talk about your goals for retirement and investment strategy.
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Reference
1. Retiring Early? 5 Key Points about the Rule of 55
2. New benefits for some retirees, including return to work rules

In the spirit of celebrating United States Independence, let’s find out what it really takes to be financially independent and retire early. At face value, anyone could retire at any age if their spending aligns with their cash flow. However, as you know, life has many variables. We’ll identify the most common variables and put together a plan to achieve financial independence.

Before we establish the potential variables, we need to create a current working model: your budget. You should list all of your expenses and categorize them accordingly. I also like to break them down into Needs, Wants, and Savings. You can use my monthly budget workbook to help you.

​Next, we will establish financial goals. When you retire, what will you want to do? Travel, invest in a business, move, or buy a new car? If so, how often will you want to do these things? Assign a cost to each of these goals and apply an inflation factor based on how many years it will take to achieve them. The standard inflation rate is set at 3%, but I like to use the SSA COLA table. If you plan on being retired for 40+ years, this will provide historical input that is helpful for your planning process. You will divide each goal by the number of years it takes to achieve them, then add that to your annual spending to give you a more realistic picture of your life in retirement.

That annual figure will be what you need to live on. Multiply that by 25 years, and that is what you will want to have for retirement. I recommend having 2 years of expenses in cash to stabilize your income stream. By "cash," I mean placing it in a high-yield account. This way, it will produce interest along the way. Another advantage of this strategy is that you will not have to withdraw from your accounts during a market downturn. Withdrawing during a market downturn will take longer to recover.

Other considerations include the types of accounts you are using to retire early and whether these accounts will generate a regular rate of return to maintain your lifestyle. Contributions to retirement accounts will not be accessible before the age of 59 ½ without a penalty. Additionally, if you have entered retirement and your risk tolerance has changed, you may not have the growth needed to support an early retirement.

If you have any questions along the way, I’m here to help and support you in an exciting journey to start living your life on your terms.

Being the sole or primary source of income comes with stresses that are exacerbated during volatile times. Layoffs are a major source of stress, particularly in the tech industry, where they seem to be common. There’s even a website, Layoffs.fyi, dedicated to tracking the latest news about layoffs and trends over the years. While you can't control layoffs, the stress they cause can impact your decision-making process.

When you fear losing your job, financial practicality often goes out the window. To set yourself up for success, you must evaluate your needs, wants, and debts. Then, create a strategic plan to address them, along with a timeline for when you may no longer be able to meet them.

Needs are essentials for your family, such as housing, utilities, and food. You should have a budget for these categories to determine if your unemployment benefits will cover them. If not, and you have an FHA-insured loan, you can request a forbearance by contacting your mortgage provider to see what options are available. It's important to do this before you fall behind on payments.

Wants, like vacations, should be reconsidered during unemployment. If a vacation isn't fully paid for in advance, it’s not in your best interest to proceed. Additionally, time away from the job hunt can be more stressful than relaxing.

Addressing credit cards, student loans, and auto loans should be a priority once you find out about your job loss. Federal student loans offer income-driven repayment plans, where payments are based on your income. Auto loans, like mortgages, may have options for deferral during financial hardships. For credit cards, if you are only paying the minimum amount, it might be best to speak with a representative to set up a payment plan, typically with a lower interest rate and fixed payments.

Many people try to withdraw from their retirement accounts, but this creates a short-term solution for a long-term problem. Additionally, improper use of these funds can result in significant tax repercussions. If you’ve recently been laid off and need guidance, reach out to me so we can keep your life on track.


Reference
​1.  Layoffs.fyi

Year over year, the influence of women investing early and often has increased. This year, Gen Z is set to outpace the savings rates of all generations at this point in their lives. Additionally, they are more bullish about the market and believe their financial situation warrants a conversation with a financial advisor. What is fueling this change from other generations? Social media.

“Finfluencers” like Vivian Tu @YourRichBFF engage their audience with the allure of financial vitality through various social platforms and podcasts. Unlike traditional lectures on compounding interest and buy-and-hold strategies, this approach allows new audiences to be engaged through infotainment scrolling. Unknowingly, like-minded information is populating your feed, passively educating the masses.

Women are drawn to Finfluencers because they are not tied to a pedigree; it's about the content provided. Candid conversations about money and the impact on personal stories carry weight to ignite change. Women don’t want to be the cautionary tale. Furthermore, women who are actively involved in their finances lead to an improved overall quality of life.

It goes without saying that you should save early and often. But if you are at a place in your life where you think your financial situation warrants a discussion, set up an appointment with me. If you are interested in some great infotainment, check out my YouTube channel and get to know how I approach finance.
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Reference
1. ​2023 401(k) Participant Study Gen Z Focus