Hello, 2nd Story Wealth Family,
As the holidays bring a mix of reflection and anticipation, we find ourselves at the perfect moment to plan for the future. With a new administration stepping in and the concerning buzz about economic changes for 2025, you might be wondering, “How can I prepare for what’s next?” At 2nd Story Wealth, we’re here to simplify the process and guide you through the noise with confidence.
In case we haven’t yet met, I’m Tarif Carson, your Director of Portfolio Strategy—known by some as “Honey Do” (a new title I’ve earned at home!). With nearly 20 years of experience in managing portfolios, I work closely with Nicole to create strategies tailored to your financial goals. Together, we ensure that your investments align with the big picture, all while keeping an eye on opportunities amid changing market dynamics.
As we prepare for 2025, here are a few key strategies to consider:
1. Get Organized
Let’s start with the basics: organization is the cornerstone of financial clarity.
Document Checklist: Whether it’s pulling last year’s tax returns, updating beneficiary designations, or reviewing your insurance policies, having these in one place sets the stage for strategic planning.
Your Planning Portal: Don’t forget to log in! This is where your goals, documents, and plans live, and it’s a tool designed to simplify your financial life.
2. Smart Tax Planning: Focus on the Bigger Picture
Tax planning isn’t just about saving for today; it’s about building wealth for tomorrow.
Understand Marginal Tax Rates: Remember, a tax deduction today isn’t dollar-for-dollar savings. For example, a $4,000 401(k) contribution in the 22% tax bracket saves $880 in taxes—not $4,000. Keeping some cash on hand might be a better choice for flexibility.
Don’t Let Taxes Drive Wealth Decisions: While it’s tempting to chase deductions, be careful not to let the tax tail wag the wealth dog. For instance, tying up all your cash in tax-advantaged accounts might mean missing opportunities like purchasing an income-generating property.
Pro Tip: When in doubt, focus on long-term wealth over short-term deductions—tax planning is about balance, not sacrifice.
3. Build Wealth with Consistent Investment Strategies
The market might be buzzing with election-driven speculation, but history shows us that resilience pays off.
Stay Invested: Avoid the temptation to “wait and see.” Markets tend to recover quickly from election-year volatility, and staying the course has historically delivered better returns.
Diversify Wisely: A balanced 60/40 portfolio (stocks and bonds) has produced steady gains in almost every presidential term since 1936, regardless of party control.
Pro Tip: Consistency beats timing. Dollar-cost averaging—investing regularly over time—can help ease anxiety while keeping you on track.
4. Refresh Your Financial Goals
Life changes. Your financial goals should, too.
Family and Life Milestones: Are you planning a move, starting a new business, or welcoming a new family member? From funding college, to planning for retirement, let’s revisit your goals to ensure they reflect your current priorities.
Maximize Contributions: Take advantage of tax-efficient accounts like Roth 401(k)s or HSAs, which offer incredible long-term benefits for retirement and healthcare.
Pro Tip: A quick check-in can make a big difference. If you’re unsure about the best move for your money, we’re just a call away.
5. Focus on Legacy, Not Just Savings
Your financial success is measured not by the taxes you save, but by the legacy you leave.
Think Beyond Tax Deferrals: While tax savings are important, don’t overlook the bigger picture. For example, balancing pre-tax and after-tax contributions ensures you have options when opportunities arise.
Empower Future Generations: Adding your children or spouse to your financial plan (like payroll for business owners) can turn everyday expenses into tax-smart moves while planting seeds for future wealth.
Pro Tip: Your legacy is more than numbers—it’s about values, opportunities, and the lasting impact you create for your family and community.
Let’s Make 2025 Your Year
At 2nd Story Wealth, we’re more than financial planners—we’re your partners in building wealth, stability, and generational impact. At your next check-in we’ll revisit your plan, to make sure it aligns with your goals for the new year.
Remember, wealth isn’t just about dollars and cents, it’s about building the life you envision and leaving a legacy that lasts.
Warmly,
Tarif Carson, CFP®
Director of Portfolio Strategy, 2nd Story Wealth