Q1 Letter to Clients

As we close the fourth quarter of 2025 and step into a new year, I want to take a moment to reflect – not just on markets and portfolios, but on the purpose behind the plan itself.

Quarterly statements naturally draw attention to short-term market movements. They are part of the story, but never the whole story. At Ridgeline, our work together has always been grounded in a longer view: helping thoughtful, capable people design financial lives that support not only security, but meaningful experiences along the way.

Many of you I would describe as Everyday Explorers – people who take responsibility seriously, but who also want to remain curious, engaged, and fully present in your lives. Financial planning, done well, should make room for both.

The Market Backdrop: Q4 2025

The final quarter of 2025 reminded investors of a familiar truth: markets are dynamic, unpredictable, and often uncomfortable in the short term.

U.S. equities experienced continued volatility as investors weighed inflation data, evolving Federal Reserve policy, geopolitical uncertainty, and questions around economic growth. Leadership rotated within the market, sentiment shifted quickly, and headlines offered no shortage of reasons to feel either optimistic or uneasy depending on the day.

This kind of environment can test confidence – especially if investing is viewed as a quarterly scorecard. But volatility is not an anomaly. It is a feature of markets, not a failure of them.  Uncertainty is not a flaw in the system – it is the system.  The real question is not whether volatility exists, but whether your plan is built to withstand it.

Why We Don’t Chase Returns or Predictions

One of the most important principles I want to reinforce – especially during uncertain periods – is that investment decisions should never be about chasing returns or predicting where markets will go next.

No one can consistently forecast short-term market outcomes. Acting as though we can often lead to unnecessary stress, poor timing decisions, and behavior that undermines long-term success.

Instead, our planning framework begins with a different foundation: ensuring that your future liabilities are matched or offset with safe, liquid resources.

When near-term spending needs, lifestyle costs, and known future obligations are covered by appropriate reserves and conservative assets, the long-term investment portfolio can do its job without interference. Growth assets are then free to compound over time, through inevitable cycles of optimism and uncertainty.

When this structure is in place, year-to-year market movements become background noise rather than a source of anxiety.

Planning With Intention – and With Life in Mind

One of the themes I continue to emphasize with clients is that planning should support living now, not just preparing for later.

For Everyday Explorers, that often means intentionally building room for travel, time away, outdoor pursuits, family experiences, and personal challenges that make life richer and more memorable. These experiences don’t happen accidentally. They require planning, margin, and clarity.

This is why our conversations extend beyond investments. Cash flow, liquidity, tax strategy, and risk management all play a role in creating the flexibility to say yes to meaningful experiences when the opportunity arises.

Tax and Planning Updates

As we move into 2026, several changes in the tax and legislative landscape are worth noting. Recent federal budget and benefits legislation is beginning to affect real-world planning decisions, including:

  • Adjustments to retirement contribution limits and age-based catch-up provisions
  • Ongoing evolution of required minimum distribution rules and inherited account timelines
  • Shifting income thresholds that affect deductions, credits, and phase-outs
  • The approaching sunset of certain prior tax provisions, increasing the importance of multi-year planning

None of these changes require reactive decisions. They do, however, reinforce the value of proactive coordination – aligning tax strategy, investment structure, and lifestyle goals well before deadlines appear.

Staying Grounded in What We Can Control

Market volatility tends to pull attention toward what we cannot control: headlines, forecasts, and short-term performance.

Your plan, however, is built around what is controllable:

  • Spending and savings decisions
  • Liquidity for known obligations
  • Asset allocation aligned with time horizons
  • Risk exposure that reflects your goals and temperament
  • A disciplined, long-term approach

When these elements are aligned, the plan does not rely on perfect market conditions to succeed. It relies on preparation, patience, and perspective.

Looking Ahead

As we enter the new year, my commitment to you remains unchanged. I will continue to approach planning through the lens of your life, not quarterly market noise. We will continue to design plans that prioritize resilience over prediction and flexibility over optimization.

Most importantly, we will continue to use money as it was intended to be used: as a tool that supports security, opportunity, and a life well lived along the way.

Thank you for your trust and partnership. I look forward to our upcoming conversations and to navigating the road ahead together.

Planning 2026 with intention: 10 financial and life considerations for the year ahead

The start of a new year naturally invites planning. But for most people, planning quickly turns into optimization – more efficiency, better returns, tighter projections.

The more meaningful work often starts earlier than that.

Before adjusting numbers, it’s worth stepping back to ask whether your financial life is aligned with the life you want to live. As we look ahead to 2026, with several new planning rules and legislative changes becoming active under the OBBBA framework, this is an ideal moment to reset both direction and strategy.

As a kid of the ‘90’s and a David Letterman fan, I always waited for the part of the show when he revealed his (sometimes crazy, but almost always funny) Top 10 List.  Here is my attempt and a nod to Mr. Letterman with 10 financial and life planning considerations worth reviewing as you prepare for the year ahead, with a particular emphasis on building margin, clarity, and adventure into 2026.

1. Define What You Want 2026 to Feel Like

Before reviewing accounts or projections, clarify the experience you want the year to deliver.

Do you want 2026 to feel spacious or packed? Grounded or mobile? Predictable or exploratory?

Financial plans are most effective when they support a clearly defined life vision. Without that anchor, even strong financial results can feel disconnected.

2. Plan Adventure First, Not Last

Adventure is often treated as optional – something to squeeze in if time and money allow.

In practice, that usually means it doesn’t happen.

Whether adventure for you means extended travel, meaningful family trips, endurance events, or simply more time outdoors, plan it intentionally. Block the time on the calendar. Estimate the cost. Create a dedicated savings bucket.

When adventure is designed into the plan, money becomes an enabler rather than a gatekeeper.

3. Understand What’s Changing Under the OBBBA

Several provisions tied to recent federal budget and benefits legislation are now becoming relevant for 2026 planning. While the specifics vary by household, common planning areas affected include retirement contribution limits, including updated catch-up provisions for certain age ranges; required minimum distribution rules and beneficiary timelines impacting inherited retirement accounts; income thresholds for tax credits and deductions, with tighter phase-outs at higher income levels; and sunsetting provisions from earlier tax law, increasing the importance of proactive, multi-year tax planning.

The key takeaway is that understanding these changes early creates flexibility. Waiting until year-end often removes good options.

4. Revisit Your “Enough” Number

As income and assets grow, old targets often linger long after they stop serving your life.

Revisit what level of income actually supports your desired lifestyle, how much work is enough, and which trade-offs are no longer worth it.

Clarifying “enough” is often the most powerful financial decision you can make.

5. Align Cash Flow With Experience, Not Habit

Instead of asking where to cut spending, ask where your money is working well for you.

Which expenses consistently add meaning or enjoyment? Which ones feel automatic or outdated?

Redirecting cash flow toward experiences, travel, and flexibility often improves quality of life without increasing overall spending.

6. Strengthen the Safety Net

Adventure is easier to pursue when the foundation is solid.

The new year is a good time to review emergency reserves, insurance coverage, estate documents, and beneficiary designations.

These items rarely feel urgent – until suddenly they are. Proactive review reduces stress and creates confidence.

7. Simplify Where Complexity Has Crept In

Over time, financial lives naturally become more complex.

Multiple accounts serving similar purposes, legacy strategies that no longer apply, and complexity that adds confusion without value can quietly accumulate.

Simplification improves clarity, reduces friction, and makes decision-making easier when life changes quickly.

8. Use Tax Planning to Support Lifestyle Decisions

With updated thresholds and evolving rules, tax planning for 2026 should align with life choices.

This may include timing income around travel or sabbaticals, evaluating Roth strategies during lower-income years, or coordinating charitable giving with tax efficiency.

The goal is not minimizing tax in isolation, but ensuring tax decisions support the life you want to live.

9. Decide What to Stop Doing

Borrowing from the annual review approach popularized by Tim Ferriss, one of the most powerful planning exercises is deciding what to stop.

What commitments, habits, or financial behaviors create stress without meaning, consume time without return, or reflect an outdated version of you?

Stopping often creates more freedom than starting something new.

10. Build Margin Into the Plan

Finally, leave room.

Margin in your calendar allows spontaneity. Margin in your cash flow absorbs surprises. Margin in expectations builds resilience.

A plan with no margin may look efficient, but it is fragile. A plan with margin can flex and support opportunity when it appears.

Final Thought

Planning for 2026 isn’t about predicting every outcome. It’s about creating a framework strong enough to support responsibility and exploration.

When financial planning is aligned with experience, when adventure is treated as essential rather than optional, and when decisions are made intentionally rather than reactively, money becomes what it was always meant to be – a tool in service of a well-lived life.

The top 8 financial items to review before the end of the year

As the year draws to a close, many people feel an instinct to wrap things up. It’s a natural moment to pause, take inventory, and make sure nothing important is left undone.

In financial planning, year-end reviews aren’t about scrambling or chasing last-minute tactics. Done well, they’re about clarity – confirming that your financial decisions still align with the life you’re building.

Here are the most important areas worth revisiting before the calendar turns.

  1. Taxes: Reducing Regret, Not Just the Bill

    Year-end tax planning isn’t about perfection – it’s about intention. This is the time to review realized gains and losses, assess whether tax-loss harvesting makes sense, and confirm that income timing aligns with your broader strategy. For many families, charitable giving also plays a role here – not as a tax trick, but as a thoughtful extension of their values.

  2. Required Minimum Distributions (RMDs)

    For retirees and those nearing retirement, RMDs deserve careful attention. Confirming distributions are made on time, in the correct amount, and from the appropriate accounts is critical. It’s also worth reviewing how RMDs integrate with your overall cash-flow plan. This is ideally done in the first half of the year, but if you haven’t gotten to it yet, do not delay. The penalty for missing your RMD is significant!

  3. Charitable Giving with Purpose

    Year-end giving often happens quickly. A pause can make it more meaningful. Review how and where you give, and whether you’re giving still reflects what matters most to you. Going back to your RMD’s, if you are over 70.5, you can consider using a Qualified Charitable Distribution (QCD) from your IRA to fund those giving goals!

  4. Portfolio Alignment and Risk Exposure

    Markets have a way of feeling louder in December. Year-end is a natural time to rebalance, reassess concentration, and confirm that your portfolio still supports your long-term plan. Have you set aside enough funds in safe cash and short-term bonds to match several years’ worth of coming expenses? If you’re not sure, we should talk.

  5. Estate Planning and Beneficiary Reviews

    Time with family has a way of surfacing important questions. Review beneficiary designations, trustee and executor choices, and guardianship decisions if applicable. Your beneficiary designations on retirement accounts, insurance policies, etc. are legal agreements between you and the financial institution. This means that what ever is on file will trump what is stated in your will, so make sure they line up!

  6. Retirement Readiness Beyond the Numbers

    For those approaching retirement, year-end reflection often brings deeper questions. Financial readiness and emotional readiness don’t always arrive at the same time. Both deserve attention. I’ve seen the emotional transition into retirement impact clients much more significantly than the financial transition. Make sure you have spent time preparing yourself for both.  If you are only focused on what you are retiring away from and haven’t spent any time thinking about what you want to retire towards, then you’re not ready.

  7. Simplification and Organization

    Many people enter a new year craving less complexity. Consolidating accounts and reducing unnecessary financial clutter can create a surprising sense of relief. Everyone has a financial ‘junk drawer’, where things accumulate over the years, but have no rhyme or reason or coordination. Spend time emptying out the junk drawer to assess what you have and then be intentional about what you keep and what you get rid of.  Does it serve you anymore? 

  8. Family Support and Legacy Planning

    Supporting adult children or aging parents requires balance. These decisions are rarely about math alone – they’re about boundaries and stewardship. I have noticed that there is no magic formula or one-size-fits-all approach. Every family dynamic is different and requires a thoughtful, intentional approach to what is best for everyone.

Closing the Year Well

A thoughtful year-end review isn’t about checking boxes. It’s about asking:
Does our financial plan still serve the life we want to live?  If it doesn’t or you’re not sure, give us a call….we’re here to help.

3 financial scams happening right now (and how to outsmart them)

I have a very high skepticism about any phone call I receive and almost all emails. This hypervigilance is from years of training and preparation about how the bad guys are trying to take advantage, not just of the vulnerable, but of everyone. And even with that defensive stance, they still got me. It is embarrassing to admit. I will add more detail to the story at a different time but hopefully, this reminds us that we need to always keep our guards up. 

Scammers have always evolved with technology, but the rise of artificial intelligence has supercharged their reach, realism, and results. Today’s fraudsters don’t just send suspicious emails or fake sweepstakes – they impersonate your loved ones, hijack legitimate business processes, and build entire fake investment platforms complete with chat support and real-time dashboards. The goal is the same – get your money – but the methods are more convincing than ever. Here are three of the top financial scams trending right now, how they work, and the signs that something’s not right.

1. AI-powered impersonation scams: The “it sounded just like them” con

The setup: You get a call from your spouse, your boss, or your bank’s fraud department. The voice sounds perfect. The number matches your contacts. The message is urgent – “We detected suspicious activity” or “I need help right now.”  In reality, scammers have cloned a voice using a few seconds of audio (often pulled from social media or YouTube) and spoofed the caller ID. Once you’re hooked, they’ll push you to move funds to a “safe account,” share one-time passcodes, or install “security” software that gives them control.

Why it’s worse now: Voice-cloning AI and deepfake tools are cheap, convincing, and widely available. The Federal Communications Commission recently banned AI-generated robocalls, but enforcement is slow, and overseas scammers don’t care. These fake voices can fool even the most cautious listener.

Red flags:

  • Requests for secrecy or speed: “Don’t hang up or your account will be frozen.”
  • Urgent money moves or code-sharing requests.
  • Claims that funds must be “moved to safety.”

Protect yourself:

  • Create a family or team “safe word” for emergencies.
  • Never act on an inbound call – hang up and call the known number yourself.
  • Use strong, app-based multi-factor authentication.
  • If it feels urgent and secret, slow it down.
2. “Pig butchering” investment scams: Fake profits, real losses

The setup: You meet someone online – through social media, dating apps, or friendly chat forums. They build trust over time, then casually introduce an investment opportunity. The platform looks professional, and when you deposit a small amount, you can even withdraw “profits.” That’s how they earn your confidence. Soon you’re encouraged to invest more for “VIP” access or higher yields. Then, when you try to withdraw again, you hit “verification” fees, tax holds, or sudden silence. The site disappears – and so does your money.

Why it’s worse now: These scams have evolved into large-scale operations run like businesses. AI-generated chats and images make scammers sound fluent and trustworthy. Many use real stolen identities and cloned trading dashboards. In 2025, U.S. regulators sanctioned companies providing infrastructure to thousands of these fake platforms—evidence that this is organized, industrial-level fraud.

Red flags:

  • Rapidly developing online relationships that pivot to investing.
  • Pressure to keep the opportunity secret.
  • “Profit screenshots” that look too consistent.
  • New obstacles when you try to withdraw money.

Protect yourself:

  • Never invest through links sent via text, chat, or direct message.
  • Verify firms independently through FINRA BrokerCheck or state regulators.
  • Test withdrawals early and often on regulated platforms.
  • If you suspect fraud, stop all transfers immediately and report to your bank and IC3.gov.
3. Business email and QR payment scams: “Just pay this updated account” 

The setup: You receive an email that looks exactly like it came from your vendor or from your company’s CFO, complete with logos and an existing message thread. It asks you to update payment instructions or wire funds to a “new account.” Criminals often lurk in real email systems for weeks, studying tone, timing, and templates before striking. Meanwhile, “QR code” scams – where criminals place fake QR stickers on parking meters, invoices, or even restaurant tables – are booming. Scanning those codes can send you to cloned payment pages that drain your bank or steal credentials.

Why it’s worse now: Business Email Compromise (BEC) is still the most expensive form of internet fraud, costing companies billions annually. AI now allows scammers to craft flawless emails and even generate replies in real time. QR scams are spreading fast in the physical world, often layered onto legitimate infrastructure.

Red flags:

  • Payment or account changes sent only by email.
  • Slightly misspelled domains or odd reply addresses.  Always check the reply email.
  • QR codes taped or stuck onto surfaces that didn’t have them before.
  • Pressure to pay right before holidays or weekends.

Protect yourself:

  • Verify all payment changes with a known phone number – no exceptions.
  • Enable multi-factor authentication and monitor email forwarding rules.
  • Use “approved payee” lists and dual authorization for wires.
  • Avoid scanning random QR codes; type official URLs manually.

A Classic Scam Making a Comeback: Check Washing and Mail Theft

Old-school fraud is back in new form. Thieves steal checks from mailboxes, chemically erase details, and rewrite them for higher amounts before depositing via mobile apps. The U.S. Postal Inspection Service reports a dramatic rise in this crime since 2021. If you must mail checks, use secure indoor drop boxes, monitor your accounts daily, and switch to verified digital payments whenever possible.  We have had several clients hit by this fraud, even though they were very careful.  If you must send a check, never leave it unattended in a unsecured box.

The Bottom Line

Fraudsters have always relied on speed and fear – but now they have AI doing the heavy lifting. Whether it’s a cloned voice, a fake trading app, or a forged invoice, the key to outsmarting them is the same: slow down, verify out-of-band, and never share credentials or codes with anyone. A few extra minutes of caution can save you months of regret – and thousands of dollars.

Changes to charitable giving from OBBBA

Obviously, there were many changes to the tax code with the implementation of the One Big Beautiful Bill Act (OBBBA) earlier this summer.  No matter what your level of wealth, but especially for the ultra-high-net-worth, if you are charitably minded, you should pay attention to these changes to take full advantage of the tax code under the new bill.  Here’s what’s about to shift in charitable giving when OBBBA kicks in for the 2026 tax year, and how thoughtful donors can adapt to keep generosity impactful and tax-smart.

OBBBA was signed into law in July 2025 and includes several provisions that directly touch charitable deductions starting January 1, 2026. In short, the law changes who benefits, how much is deductible, and when timing really matters.1

What’s changing in 2026
  1. A new universal charitable deduction for non-itemizers:
    For the first time since the temporary CARES-era rules, non-itemizers will get a modest above-the-line deduction: up to $1,000 for single filers and $2,000 for married filing jointly for cash gifts to qualified charities. This creates a floor of benefit even if you don’t itemize.2
  2. A 35% cap on the tax benefit for top-bracket donors:
    This one gets wonky really quick…If you’re in the 37% marginal bracket, the value of your itemized charitable deduction will be capped at 35% beginning in 2026. Practically, a $100,000 gift produces a $35,000 income reduction instead of $37,000 under current rules. High earners should revisit multi-year giving plans with this cap in mind.3
  3. A new charitable deduction floor for individuals:
    Beginning in 2026, itemizing individuals can only deduct charitable gifts to the extent total annual giving exceeds 0.5% of their contribution base (generally AGI). Amounts below that floor aren’t deductible. The first 0.5% is basically throw-away contributions…no tax savings.  There are carryforward interactions and some relief for pre-2026 carryovers.4
  4. SALT cap dynamics can change the math of itemizing:
    OBBBA raises the state and local tax (SALT) deduction cap to $40,000 for 2025 and then increases it slightly each year through 2029 before snapping back to $10,000 in 2030. That higher cap in 2025 can push more households into itemizing for that year, which affects whether you should bunch charitable gifts into 2025 or stage them differently across 2026 and beyond.5
Strategy moves to consider now
  1. Bunch 2025 giving, then smooth 2026+:
    If you planned significant gifts in the next 12-24 months and you’re a high earner, consider accelerating into 2025 to avoid the 35% cap and the 0.5% floor that begin in 2026. Using a donor-advised fund lets you make the large, potentially pre-2026 contribution for tax purposes while pacing grants to charities over several years. This can also pair well with 2025’s higher SALT cap to maximize itemizing in one year.6
  2. For non-itemizers, plan to use the new universal deduction annually:
    Households that typically take the standard deduction should plan to give at least $1,000 ($2,000 MFJ) in cash each year to capture the new above-the-line benefit starting in 2026. Keep good receipts and ensure gifts go to qualified organizations. If your giving is sporadic, consider consolidating into a single calendar year to clear any administrative thresholds and simplify tracking.7
  3. Re-optimize appreciated asset gifting:
    Gifting highly appreciated securities still avoids capital gains tax and can be combined with a DAF to streamline execution. But because 2026 introduces a 0.5% floor for itemizers, coordinate the size and timing of appreciated stock gifts so that your total giving clears the floor and captures the full intended deduction. Large, fewer-and-farther-between gifts may be more efficient than many small ones post-2026.8
  4. Lean on QCDs for IRA owners age 70½+:
    QCDs remain a standout tool because they reduce taxable income directly rather than relying on itemized deductions, which helps regardless of floors or caps. If you’re charitably inclined and subject to RMDs, map out a multi-year QCD plan to satisfy some or all of your RMD while supporting charities.9
  5. Mind carryforwards and pre-2026 gifts:
    If you already have charitable deduction carryforwards, note that amounts carried into post-2025 years from gifts made before January 1, 2026 are not subject to the new 0.5% floor when used. Work with your advisor to prioritize using those carryforwards efficiently alongside any new giving.10
Bottom line

Generosity still works. What’s changing under OBBBA is the path to getting full tax value from your gifts. For 2025, ultra-high-net-worth families may benefit from front-loading into a DAF and harvesting appreciated positions before the new cap and floor arrive. For 2026 and beyond, standard-deduction households can finally claim a modest benefit each year, and retirees can keep leaning on QCDs to simplify taxes and amplify impact. The best plan is coordinated: tax bracket, SALT position, portfolio gains, and charitable goals aligned on a multi-year calendar.

Google-Apple-Facebook Breach Ensnares Trove of Financial Passwords

Guest post by cybersecurity experts Mark Hurley and Carmine Cicalese

According to multiple sources, it was disclosed last Friday that more than 16 billion sets of account credentials (i.e., user IDs and passwords) that were stolen from Google, Facebook and Apple over time have been aggregated into a single data set that is now easily accessible by cybercriminals. It is unclear when the data was originally taken but its aggregation has simplified cybertheft. Indeed, so much data is involved it is likely the targeted organizations are unsure of what exactly is included.

More importantly, the purloined information is much broader than just login credentials to access these companies’ platforms. Rather, it includes passwords for all kinds of client accounts, including bank, custodial, email and telecom.

How could this happen? The three organizations make billions of dollars collecting and selling customer information to advertisers. Consequently, they regularly gather immense amounts of data for all kinds of accounts.

In fact, unless a client has turned on a variety of privacy and security settings on their devices, apps, browsers and search engines, the credentials for every account accessed with that device are automatically stored in multiple places. Google and Apple also offer their own versions of password managers to store their clients’ passwords and user IDs. Further, all three offer single-sign-on (SSO) features to allow customers to access numerous accounts using just the password necessary to access their platform.

The loss and aggregation of so many credentials is potentially very bad news for advisors and their clients. Both are already frequently targeted by cybercriminals who are some of the earliest and most effective adopters of artificial intelligence software, which will enable them to quickly sort through the stolen data and identify cybertheft opportunities. Undoubtedly, many will quickly try and steal money directly from client bank and custodial accounts using compromised credentials.

However, passwords for telecom, email and social media accounts also create countless opportunities for social engineering attacks on wealth managers. Numerous ones involving deep fakes—very accurate clones of voices and images of clients and employees made from videos downloaded from social media accounts—already have been used to steal millions of dollars of client assets.

Additionally, cybercriminals routinely use passwords for telecom accounts to divert cell phones and intercept communications—including for multi-factor authentication and transaction confirmation—as well as passwords for email accounts to initiate fraudulent transactions and indirectly attack wealth managers.

Given all this, what should industry participants do? We recommend advisors immediately alert clients to these risks and encourage them to take the following steps:

1. Reset the passwords to financial, telecom, email and social media accounts using a different, lengthy (20 to 25 digit) random password for each account.

2. Engage dual authentication protocols for all financial, email, telecom and social media accounts.

3. Use a password manager—other than the ones provided by Google or Apple—to help store, manage and generate random strong passwords for every login.

4. Engage the security and privacy settings on devices—about 60 on an Apple device and 120 on a Windows/Android device—as well as on browsers and search engines so they stop automatically recording user IDs and passwords each time the user accesses an account, blocking companies from collecting them.

Long before this disclosure, wealth managers and their clients were attractive targets for cybercriminals. The aggregation of so many stolen account credentials will undoubtedly increase the frequency and sophistication of their attacks. Those firms that ignore this new, increased risk may soon pay a price.

Mark Hurley is the CEO of Digital Privacy & Protection. Carmine Cicalese, COL, U.S. Army Retired, is the President of Cyber CIC.

Recent interest rate cuts: What they mean for savings, mortgages and cash management

The Federal Reserve recently cut its benchmark interest rate by 25 basis points, lowering the federal funds rate to 4.00% from 4.25%. This September 2025 Fed rate cut was widely expected, reflecting slower job growth, rising unemployment, and inflation that remains above target. The move signals a cautious shift: the Fed wants to support the labor market to keep people employed without reigniting inflation.

Why the Fed cut rates

Inflation in services has stayed sticky even as the broader economy shows signs of cooling. By trimming rates, the Fed is aiming to balance recession risks with its commitment to long-term price stability (known as the Fed’s Dual Mandate). Markets had largely priced in this cut, and future policy moves will likely hinge on labor market data and inflation trends.

Impact on savings accounts and money market rates

Here is where the rubber meets the road.  For savers, Fed cuts often translate into lower yields on savings accounts and money market funds. Online banks and credit unions may hold rates higher to remain competitive for a short period, but traditional deposit accounts usually adjust downward within months, if not immediately. Money market funds tend to react fastest, since they are directly tied to short-term rates.

This makes it essential for savers to compare account yields regularly. As rates decline, holding cash in a low-interest account could mean leaving money on the table.

Cash management programs

To maximize returns, many investors are turning to cash management programs.  One such example is Flourish Cash. These platforms sweep deposits into a network of FDIC-insured banks, offering:

  • Competitive, high-yield savings alternatives without fees or minimums
  • Extended FDIC protection beyond the standard $250,000 limit due to the number of banks involved in the sweep program
  • Daily rate adjustments that track prevailing market conditions
  • Liquidity and flexibility, allowing easy transfers in and out

Programs like Flourish Cash are designed to help cash balances earn more in both rising and falling rate environments. When rates go up, program yields can reset higher. When rates fall, these programs still provide better returns than most traditional checking or savings accounts, making them a valuable part of cash management in 2025.

Mortgage rates and refinance opportunities

A common misconception is that mortgage rates fall directly with Fed cuts. In reality, 30-year mortgage rates are tied more closely to long-term Treasury yields and investor demand for mortgage-backed securities (MBS). As a result, fixed mortgage rates may not drop much after a Fed cut.  However, borrowers with adjustable-rate mortgages (ARMs) or home equity lines of credit (HELOCs) often see more immediate relief, since these products reset based on short-term benchmarks.

For homeowners, mortgage refinance opportunities in 2025 depend on long-term yields. If Treasury and MBS yields decline alongside Fed cuts, refinancing can unlock real savings. Homeowners should weigh the potential monthly payment reduction against closing costs and the time they expect to stay in their home.

The bottom line

The recent Fed rate cut underscores the importance of staying proactive with your money. Savers should explore high-yield savings alternatives and consider cash management solutions to protect returns. Homeowners should track long-term mortgage rates to evaluate refinance opportunities, while those with ARMs or HELOCs may benefit more immediately from recent rate changes.

In today’s shifting interest rate environment, agility is key – aligning your cash, borrowing, and investment strategies ensures your money continues working for you, no matter how rates move.

Q4 Letter to Clients

I could sit and watch a stream or river all day long.  There is constant movement, and yet, the water is always right there in front of me, covering the same ground, falling over the same rocks and touching the same boundary on each side.  The water isn’t in a hurry. It shapes rock by returning to the same line again and again. That felt like a useful reminder for investing but really, for life – we make real progress by showing up with purpose and relentless consistency, not by forcing outcomes.  It’s a lesson that I seemingly must learn over and over again, but also continues to inform my approach to good, sound financial planning.

Market and Economic Overview

The third quarter brought plenty of headlines around interest rates, inflation reads, and geopolitics, yet the market’s tape told a different story. U.S. stocks advanced through the quarter, with the S&P 500 posting gains in July, August, and September and notching several new record closes in September. It didn’t move in a straight line, but it did move – and more than the headlines alone might suggest. For context, late September trading steadied after inflation data came in as expected.  Day-to-day swings will keep coming, but they don’t change the core job of a long-term plan.

Developed markets outside the U.S. also showed strength. Part of their performance stems from a weaker U.S. dollar, which amplifies returns in dollar-terms for overseas equities. This has also supported returns in emerging markets, which have surpassed U.S. equities.  The theme continues to be that different markets lead at different times, and spreading risk across geographies helps steady the journey.

Planning Moves That Matter

Just like the water in my favorite stream, we’re focusing on things that compound quietly and that make meaningful changes over time:

  • Cash segmentation for spending needs – matching an appropriate amount of known withdrawals to high-quality cash vehicles (money markets, Treasuries, short-term bonds or other ladders) so the rest of the portfolio can do its long-term work.
  • Rebalance with intent – trim what has run, add to what’s lagged inside your target ranges, and redeploy new cash strategically into the asset classes most out of balance.
  • Year-end tax work – harvest losses where appropriate, manage capital gains distributions, and pair giving with taxes: direct appreciated shares to donor-advised funds, consider QCDs if you’re taking RMDs, and review state-specific opportunities before December 31.
  • Purpose-built buckets – where it fits, we’ll keep leaning into liability-driven investing that ties assets to time horizons instead of a single, generic “risk number.”

If your cash flow, goals, or time frames have shifted recently, let’s update the map now rather than after January 1.

Money and Meaning

Optimizing your money is obviously important but not if it comes at the expense of optimizing your life (I’m speaking to myself here).  Recent On Adventure conversations offered a thread worth carrying into Q4.

  • Bob Becker spoke about finishing Badwater 135 at age 80 – not with bravado, but with gratitude, routine, and a stubborn gentleness that kept him moving when it got ugly.
  • Lisa Smith-Batchen (will be released on October 3) reminded us that the best crews and mentors hold a mirror to your ‘why’ when your legs want to quit.
  • Wells Jones talked about drawing a line in the sand – not as a dare, but as a promise to live aligned with what matters.

Nature is saying the same thing right now. The light changes. The trail looks different. The real work is to keep showing up with intention. Money is just one of the tools that helps you do that – to buy time, fund experiences with the people you love, support causes that reflect your values, and create margin for the kind of adventures that make you feel most alive.

Thank you for your trust. If something in your world has changed – a new goal, a liquidity event, a move, college bills, eldercare planning – let us know and we’ll adjust the plan together.

Making your cash work: Smart management in a shifting monetary landscape

In today’s uncertain financial environment, idle cash doesn’t need to sit there. With high-yield, FDIC-insured options and rising awareness of monetary policy dynamics, you can make sure your liquidity still earns its keep. Here’s a look at standout solutions and what to watch.

Cash management options worth knowing
  • Flourish Cash

Flourish Cash is a brokerage-based cash sweep vehicle that partners with multiple FDIC-insured “program banks.” It offers competitive, variable interest rates—around 4.0% APY as of late April 2025—and spreads your deposits across many banks to expand FDIC coverage. You receive one statement and tax form no matter how many banks hold your funds, and transfers are generally seamless.

  • High-Yield Money-Market & Savings Accounts

High-yield savings accounts remain popular for their accessibility, though attractive rates are often promotional and can drop over time. Money-market funds typically offer higher yields—around 4–4.5%, with some pushing 5% in recent years. However, note that many of these are not FDIC-insured, and rates remain sensitive to Federal Reserve policy.

  • Cash‑Management Accounts (CMAs)

Offered by brokers and robo-advisors, CMAs blend checking, savings, and investing tools. They usually provide higher interest than traditional bank accounts, and your funds may or may not be insured via FDIC or SIPC. They facilitate payments, transfers, and even debit card access—helpful if you want seamless functionality without locking up funds.

How Monetary Policy shapes cash yields

Monetary policy – especially interest-rate movements by the Fed – has a direct, powerful effect on what cash earns.

  • When rates rise, as they did in recent years, money flows into high-yield instruments like money-market funds and sweep accounts. As of December 2024, money-market funds held roughly $7 trillion as inflows continued despite expectations rates would fall. Yields hovered around 4.39%, a stark contrast to average bank savings near 0.5%.
  • Looking ahead to 2025, some analysts expect rate cuts could shift investor behavior—less reward for idle cash may drive money into bonds or equities, especially as these markets show gains. Still, the high level of cash holdings suggests many investors may linger in money markets longer.
  • Institutional preference for stability remains evident—corporations are allocating more to high-yield money-market instruments to capitalize on elevated interest. As of late 2023, nonfinancial S&P 500 companies held 56% of their assets in cash and equivalents, seeing favorable returns.
Top 3 things to watch – and take action on
  1. Interest‑Rate Trends & Fed Signals – Fed rate changes directly impact cash‑account yields. Review your accounts regularly—are they outpacing or lagging current rates?
  2.  FDIC‑Insurance Structure & Coverage Limits – Tools like Flourish spread deposits across banks to maximize protection. If you hold a lot of cash, make sure you’re not exposed to single-bank FDIC caps. This is so important and something that I see many wealthy clients overlook regularly!
  3. Liquidity Needs vs. Yield Trade‑offs – Higher yield often comes with limitations. Define your cash needs—daily use vs. emergency reserve—and match them to the most fitting vehicle.

Cash doesn’t have to be passive. With the right tools and vigilance, your liquid assets can work harder without compromising security or flexibility.  Want to discuss this cornerstone topic further?  Let us know!

5 Key Provisions in the New Tax Bill That High Net Worth Families Need to Know

Congress just passed one of the most sweeping tax overhauls we’ve seen in years. It’s already being described as a “once in a generation” shift – both in scope and impact. While most headlines focus on broad middle class relief, the truth is that high net worth families and top earners will feel some of the most significant ripple effects. Changes to deductions, new savings vehicles, and shifting rules around charitable giving will require a fresh look at how you structure income, investments, and legacy planning.

With so much noise around the bill, I want to cut through the clutter and highlight the five provisions that matter most. More importantly, I’ll share what they could mean for your planning over the next several years.

  1. Expanded SALT Deduction (State & Local Taxes)

One of the most talked about changes is the overhaul of the SALT deduction. The federal cap on state and local tax deductions jumps from $10,000 to $40,000, though it phases out for households with income above $500,000 and reverts to $10,000 around 2030.

Why it matters: For those living in high tax states or holding significant real estate, this offers meaningful relief – especially if you itemize. It’s a chance to reclaim more of your property and state income tax payments, though timing will be critical given the phase out rules.

  1. New Deductions for Overtime and Tips

For 2025 through 2028, the law introduces a deduction for tips and overtime income income: up to $25,000 for tips and $12,500 for overtime. These deductions are available up to $150,000 AGI for individuals and $300,000 for joint filers.

Why it matters: If you own hospitality or service businesses – or employ tipped labor – this could reduce taxable income significantly. While the impact lessens for higher earners due to phaseouts, the deduction could still shape compensation strategies for your workforce.

  1. “Trump Accounts” for Children (A New Tax Advantaged Savings Vehicle)

Children born between 2025 and 2029 will automatically receive a $1,000 government contribution into a new tax advantaged savings account, with parents able to contribute up to $5,000 annually. Growth is tax deferred, and funds can be used for college, training, or first home purchases.

Why it matters: While modest in size, these accounts add a fresh layer to multi generation planning. High net worth families can leverage them as part of broader tuition or estate planning strategies, especially in states with their own gift or estate taxes.

     4. Charitable Giving Deduction Changes

Two major shifts affect charitable planning:

1. Above the line charitable deduction: Non-itemizers can now deduct up to $1,000 ($2,000 for joint filers) for donations.

2. Limits on high-income deductions: For top earners, charitable deductions now max out at 35% rather than 37%, and total deductions reduce slightly by 0.5% of AGI.

Why it matters: For families with significant giving goals, the tax impact of large donations shrinks slightly. It may be time to revisit giving vehicles – like donor advised funds or charitable trusts – to preserve tax efficiency while meeting philanthropic goals. You might also want to consider pulling in future donations to 2025 as the changes don’t go into effect until January 1, 2026.

    5. Re-Emergence of Itemized Deduction Phase-Out

The bill revives a version of the old “Pease limitation.” For taxpayers in the top bracket, each dollar of itemized deduction now yields a 35% benefit rather than 37%.

Why it matters: This subtle reduction affects deductions for mortgage interest, high property taxes, and charitable gifts. For ultra-high-net-worth households, this reinforces the value of pre-tax strategies – like maximizing retirement contributions and structuring investment income – rather than relying solely on itemized deductions.

Planning Opportunities

• Itemizing vs. Standard Deduction: The new SALT cap and higher standard deduction (rising to $31,500 for joint filers in 2025) change the math. We’ll analyze whether itemizing still makes sense or if bundling deductions into specific years creates better results.

• Employer Strategies: For business owners with tipped or overtime-heavy staff, timing and structuring pay to maximize deductions could save meaningful taxes – just watch the phase-out thresholds.

• Charitable Planning: Consider front-loading gifts in 2025 into donor-advised funds or split-interest trusts to optimize deductions under the new limits.

• Next Generation Funding: New children’s accounts can be incorporated into college and estate strategies, even if the dollar amounts are small relative to your broader plan.

Caveats and Watch Outs

• Phase-Outs: Many benefits diminish quickly as income rises – so expect targeted rather than sweeping savings at higher brackets.

• Expiration Dates: Several provisions sunset in 2028. Planning should factor in the potential for future reversals.

• Implementation Lag: Expect IRS guidance and payroll system updates over the next year. There may be temporary confusion around how new deductions are claimed.

Bottom Line

This tax bill reshapes how deductions and savings vehicles work – particularly for high income and high net worth households. While some provisions offer new opportunities (like the SALT increase or children’s accounts), others trim back existing benefits (like charitable and itemized deductions).

The real key is personalized planning: aligning your giving, investing, and income timing with these new rules to maximize after-tax results. Over the next few months, we’ll be reviewing client strategies and looking for ways to capture opportunities while minimizing surprises.

If you’d like to walk through what this means for your 2025 plan – or explore strategies before year end – let’s talk. These changes are too significant to navigate on autopilot.