Windsor Wealth Management LLC

Investment service in Topsfield, Massachusetts

Windsor Insights

The Fed Cuts Rates, Here’s Why It Matters

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Here’s a quick update on the Fed’s recent rate cut.

What happened?

On Sept. 17, the Fed announced a 0.25% rate cut in response to a softening labor market and a slight uptick in inflation. This move brings the federal funds rate to about 4% to 4.25%, the key benchmark for many other interest rates across the U.S. economy.

Why the rate reduction?

The main reason behind this decision is the Fed’s concern about the labor market.

The Bureau of Labor Statistics’ August jobs report showed a clear slowdown in job gains, and the unemployment rate inched up.1

Remember, the Fed’s dual mandate is to keep both inflation low and employment high.

In simple terms, this cut is aimed at making it cheaper for businesses to borrow and invest—potentially encouraging more hiring.

Fidelity’s chart below highlights the job slowdown since 2023. You can also see the unemployment rate trending up:

Chart Source: Fidelity2

Two More Rate Cuts Possible by Year-End

Analysts are forecasting the possibility of two more rate cuts before year-end.

The prospect of more cuts is good news for consumers with adjustable-rate debt, e.g., mortgages, credit cards and auto loans.

However, it usually also means lower interest earnings on savings and money market accounts. Also, rate cuts can trigger concern, i.e., if businesses and consumers believe the economy is headed for a slump, they may reduce spending and investment regardless of lower interest rates.

Looking Ahead

We’ll be watching key economic indicators like the upcoming jobs report and the latest inflation data, which will give us a clearer picture of the Fed’s next move at their October 28-29 meeting.

Please reach out with any questions.

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S., In case you missed it, see our post: September 2025 Market Update & Key Trends

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: Bureau of Labor Statistics, The Employment Situation—August 2025, https://www.bls.gov/news.release/pdf/empsit.pdf

2: Fidelity, Rate cuts are here, https://www.fidelity.com/learning-center/trading-investing/the-fed-meeting

September 2025 Market Update & Key Trends

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It’s been an interesting year in the markets, and with just a few months left in 2025, now’s a good time to pause and take stock of where things stand.

In today’s update, we cover key market trends:

Year-to-Date Performance: Markets are up about 11%, led by tech and industrials.

Corporate Earnings: Strong results are driving markets to new all-time highs.

Inflation & Jobs: Inflation rose slightly last month and jobs have slowed.

AI Spending: Tech giants are in a race for market share.

Interest Rates: A future Fed rate cut looks likely.

Global Markets: International stocks are outpacing the U.S.

Your Portfolio: We’ll discuss why rebalancing remains critical.

A Strong Year for the Market

Year-to-date, the market is up about 11%—a solid number for just over eight months.

Much of the strength comes from a few sectors, including technology (Microsoft, Nvidia) and communication services (Google, Netflix). Also, industrials are performing well, up around 15% (Raytheon, Boeing, Caterpillar).

However, healthcare has barely moved, gaining about 1%. It’s hampered by political and regulatory uncertainty. Specifically, concerns are over potential changes to drug pricing and Medicare policies.

Other market activity included a brief hiccup back in April due to tariffs, when uncertainty pulled the market lower. However, markets have recovered and are now hitting new all-time highs.

Remember, tariffs only effect about 15% of U.S. GDP. We discussed the “real” impact of tariffs earlier this year in our post: The Economy, Tariffs & Consumer Sentiment. Suffice it to say, the media often leaves out vital information.

Earnings Drive the Story

At the end of the day, daily headlines create noise, but company earnings give us the real signal.

Overall, corporate profits are strong. In fact, much stronger than analysts expected coming into the year. Early-year forecasts predicted about 5% growth, but companies are on track for closer to 10%.

This strength has helped push markets higher despite ongoing worries about jobs and tariffs.

In fact, Morgan Stanley’s top equity analyst details three reasons for continued market growth in the coming months. (Note: the article allows one free view before a paywall.)1

Inflation & Jobs

Inflation is at 2.9% (up from 2.7% in July). The Fed’s long-term target is 2%. The rise is primarily being driven by increases in housing, food and energy costs. For a deep dive, read the August Consumer Price Index report.2

The job market has continued to soften. Government jobs are shrinking (includes early retirement packages), and many companies are trimming staff while raising prices to keep profits steady.

The August jobs report showed the U.S. added just 22,000 jobs, June was revised to a –13,000 job loss, and the unemployment rate rose to 4.3% (July was 4.2%), signaling a clear slowdown in the labor market.3

This Reuters article provides some simplified charts showing monthly changes in U.S. jobs, government jobs, and job gains and losses by sector.4

A key question in the months ahead is whether slowing job growth will become a bigger drag or if the economy can grow through it.

The AI Market Share Race

AI spending continues to be a major driver of economic growth.

Big tech companies, e.g., Microsoft, Nvidia, Google, etc., are pouring hundreds of billions into AI infrastructure.

It’s expensive, but unlike the dot-com bubble of the early 2000s, these are well-established, profitable companies with the resources to sustain the investment. This is a major contrast to the dot-com era, when many companies were newly formed and had no profitability history.

Overall, it’s a market share race; specifically, a competition to become leaders in a transformative technology.

Interest Rates & Global Markets

Markets are currently pricing in a 95% chance the Fed will cut rates soon, likely by 25 basis points. Overall, we’re anticipating a 1% cut by year-end.

Lower rates will help ease pressure on mortgages, boost housing activity and support continued growth.

Finally, international stocks are up about 20% this year, outpacing U.S. markets (for a change). Our decision to increase your exposure earlier this year is helping your portfolio take advantage of this momentum.

Portfolios

Tech’s fantastic run has been great for portfolios, but it can also make the sector a little too big.

This is why we’re constantly rebalancing, taking some of those profits and reinvesting them to keep portfolios diversified.

It’s an especially smart move in non-taxable accounts, since we can do it without a tax hit. We’re always watching your portfolio’s sector weightings to help keep it balanced and strong.

Please reach out with any questions.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: MarketWatch, The stock market is hitting records — three reasons why top Morgan Stanley strategist sees more room to run, https://www.marketwatch.com/story/the-stock-market-is-hitting-records-three-reasons-why-top-morgan-stanley-strategist-sees-more-room-to-run-33892ee8

2: Bureau of Labor Statistics, Consumer Price Index – August 2025, https://www.bls.gov/news.release/pdf/cpi.pdf

3 & 4: Reuters.com, US unemployment rate near 4-year high as labor market hits stall speed, https://www.reuters.com/business/us-unemployment-rate-near-4-year-high-labor-market-hits-stall-speed-2025-09-05/

Stress-Free Retirement Spending: The “Bucket” Strategy

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A few months ago, we shared thoughts on how to spend confidently in retirement without regret.

Today, we’re adding to that idea with a simple strategy: the “bucket” approach to retirement income planning.

What is the bucket strategy?

The idea is simple: instead of treating your retirement savings as one big pot of money, we divide it into time-based “buckets.”

  • Near-term needs (0–3 years): Cash-like investments for everyday expenses (still earning interest).
  • Short- to mid-term (3–7 years): Conservative investments for stability.
  • Longer-term (7–25 years): Growth-oriented investments that have time to weather market ups and downs.

Capital Group’s chart below does a great job of showing five buckets that tie directly into the three timelines we emphasize: near-term, short- to mid-term and long-term:1

Why It Works

What makes this system powerful is how the buckets generally stay replenished over time.

As growth-oriented investments in the longer-term buckets mature, we gradually move a portion “down” to refill the nearer-term buckets. That way, you know your next few years of spending are covered—while the rest of your portfolio continues working for the future.

For Example:

Imagine you’ve spent down most of your 3–7 year conservative bucket. We’d replenish it by shifting gains from your 7–13 year growth bucket, helping to ensure the money you’ll need next is already set aside—without having to sell investments at a bad time.

It’s a structured, practical way to reduce worry about market swings while keeping your retirement income flowing. (Here’s more about our disciplined investment approach.)

Please reach out with any questions.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1: Capital Group: The bucket approach to retirement income, https://www.capitalgroup.com/advisor/insights/articles/ir-bucket-strategy-putting-it-into-practice.html

Today’s New Reality: Spotting Scams

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It’s never our intent to alarm you. Instead, our goal today is to keep you informed.

Our new reality is that you must be skeptical of every call, email or text you receive.

Why?

Because 73% of surveyed U.S. adults have experienced some kind of online scam or attack. What’s more, most get scam calls, texts and emails at least weekly, according to a Pew Research Center study.1

For Example:

The following text message is a social engineering scam.

The scammer sends a vague message from an unknown number to see if the recipient will engage. A response confirms the number is active, and the scammer then tries to gain your trust and, eventually, your money.

Social Engineering Text Scam Example
Called “smishing” a blend of SMS and phishing

In today’s post, we:

  • Explain scams that frequently impact adults aged 60 and older. (See our Scam Awareness handout below.)
  • Describe how scammers use text messages and social engineering—the psychological manipulation of people—to get you to divulge confidential information or take specific actions.
  • Suggest steps to help protect yourself from scams, including creating a safe word.

Let’s start with some background information:

According to the Pew Research Center study, the most common scam attacks are:

Credit/Debit Card Fraud (48%): Online hackers stealing credit or debit card information and making fraudulent charges.

Online Shopping Scams (36%): Buying an item online that was either counterfeit, never arrived or for which a refund was never received.

Account Takeovers (29%): A personal online account being accessed or taken over without permission.

Phishing Scams (24%): Scammers using an email, text message or call to trick people into giving away personal information.2

2 COMMON SCAMS TARGETING ADULTS AGED 60+

#1—Government Impersonation & Other Imposter Scams

How it works: Scammers pose as government officials (IRS, SSA, Medicare) and use scare tactics, including threatening arrest, lawsuits or loss of benefits if immediate payment or personal information isn’t provided. They might “spoof” caller ID to make it look like a legitimate government agency is calling.

Criminals also pretend to be: the police, from large companies (e.g., Amazon), an agency claiming you have unpaid tolls/traffic tickets, or your future boss, rushing you to provide your bank information for payroll purposes.

Why it targets older adults: Older adults often rely on government benefits and may react quickly to official-sounding threats, especially regarding their Social Security or Medicare.

#2—Grandparent & Emergency Scams

How it works: A scammer calls or emails, pretending to be a grandchild or other relative in distress (e.g., in jail, sick or needing emergency money for travel). They often beg the grandparent not to tell anyone else and request money via wire transfer or gift cards, which are difficult to trace. They may even use AI to clone a grandchild’s voice.

Why it targets older adults: These scams prey on the love and concern grandparents have for their family. The emotional appeal can override caution.

[RESOURCE]: Download and share our new handout: Beware of Scams Targeting Older Adults Aged 60+. It addresses scams related to: tech support, investments, sweepstakes/lottery, romance and more!

Another Example: Incoming Scam Email

TEXTING SCAMS

While many text scams rely on malicious links, another sophisticated tactic involves social engineering (This article discusses 10 types of social engineering attacks) through conversation.3

Generally, there are three steps to text scams:

Step #1—Initial Contact (The Bait)

During step one, scammers “bait” you so you’ll respond.

Examples Include:

Wrong Number Scam—This is a very common starting point. You’ll receive a text like: “Hey, is this Sarah? Long time no see!” or “Hi, did I catch you at a bad time?”

Your natural inclination might be to politely correct them: “Sorry, wrong number.” This is exactly what the scammer wants—they’ve gotten you to engage.

Random, Innocent-Sounding Messages—Sometimes it’s as simple as “Hello” or “How are you doing today?” They’re casting a wide net, hoping someone responds.

Fake Alerts (without a link)—They might send a text pretending to be from a bank, a delivery service or a government agency, but instead of a link, they’ll say something like: “Suspicious activity detected on your account. Reply ‘YES’ to verify or ‘NO’ to block this charge. For immediate assistance, call [fake number].”

Step #2—Build Rapport (Social Engineering)

Once you respond, even with a simple “wrong number,” the scammer shifts into building a relationship.

This is where social engineering comes in.

They might:

Apologize Profusely: “Oh, I’m so sorry! My mistake. It’s so hard to keep track of numbers these days. But since I have you, how are you doing?”

Pretend Interest: They’ll ask about your day, your hobbies, your work or something generic to keep the conversation going. They might share “details” about their fake life (e.g., successful business venture, exotic travel or a recent family tragedy) to make themselves seem more credible and relatable.

Manipulate Emotions: They might express loneliness or seek advice to create a bond. This is particularly effective in romance scams.

Encourage Investing: They may say, “I’ve been making a lot of money with this new crypto platform, and I think you’d be really good at it! I can show you how.” As an aside, if you see a friend talking a lot about crypto on a social channel, their account has likely been taken over by scammers.

Step #3—The “Ask”

Eventually, the scammer will ask for money or sensitive information. Because they’ve invested time in building trust, the victim may be more likely to comply.

They might request:

  • Wire Transfers: Untraceable and irreversible.
  • Gift Cards: Popular because they’re like cash and hard to trace.
  • Cryptocurrency: Increasingly common for its perceived anonymity.
  • Bank Account Details: To “send you money” or “invest for you,” but actually to steal from you.
  • Personal Information: Social Security numbers, dates of birth, addresses, which can be used for identity theft. (In reality, due to past security breaches, a great deal of this information is already possessed by hackers.)
  • Login Credentials: For online banking, email or social media, giving them direct access to your accounts.

BE AWARE OF THE FOLLOWING

HOW TO PROTECT YOURSELF FROM SCAMS

GENERAL PRINCIPLES:

Be Skeptical: If something sounds too good to be true, it probably is.

Guard Personal Information: Never share sensitive data (SSN, bank account details, credit card numbers, passwords) unless you initiated the contact and are certain of the recipient’s identity.

Resist Pressure to Act Immediately: Scammers often create a sense of urgency to prevent victims from thinking clearly or consulting with others.

COMMUNICATION RED FLAGS:

Unsolicited Contact: Watch out for unsolicited contact from unknown numbers or emails. This is a major red flag, even if they claim to know you.

Vagueness: Scammers often keep their initial messages vague (“Hey, is this you?”) to get you to fill in the blanks and reveal who you are.

No In-Person Meetings: If it’s a romance or friend scam, they’ll almost always have an excuse for why they can’t meet in person or via video.

Caller ID and AI: Be aware that scammers can spoof caller ID to impersonate trusted numbers and use AI to clone voices, often using audio from social media or even a voicemail greeting.

DIGITAL AND ONLINE SAFETY:

Verify, Verify, Verify: If someone claims to be from a company or government agency, hang up and call them back using a verified phone number from the agency’s official website, not a number given by the caller, text or email.

Avoid Clicking Links: Go directly to websites instead of clicking links from unexpected emails or texts.

Social Media Monitoring: Understand that scammers actively monitor social media to gather personal information like your pet’s name or birthday. They use these details to create convincing and targeted scams or answer security questions.

FINANCIAL PRECAUTIONS:

Refuse Untraceable Payments: Never agree to requests for payment via gift cards, wire transfers or cryptocurrency. These methods are nearly impossible to trace, making them a favorite for scammers.

CREATE A FAMILY SAFE WORD

With scammers now able to clone voices, a family safe word is a crucial defense. This should be a secret, unguessable word with no connection to your personal information, i.e., don’t use your pet’s name, etc.

How to use it:

Never volunteer the safe word. The person receiving the call must ask for it. A scammer might try to manipulate you by claiming they’re too upset to remember it.

To further protect yourself from scams:

  • Change your passwords often.
  • Enable two-factor authentication (2FA) on your accounts, and when possible, use an authenticator app (like Google Authenticator), which is generally more secure than receiving a code via text message.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1 & 2: Pew Research Center, Online Scams and Attacks in America Today, https://www.pewresearch.org/internet/2025/07/31/online-scams-and-attacks-in-america-today/

3: Crowdstrike: 10 Types of Social Engineering Attacks and How To Prevent Them, https://www.crowdstrike.com/en-us/cybersecurity-101/social-engineering/types-of-social-engineering-attacks/

2025 Tax Changes: One Big Beautiful Bill Act (OBBBA)

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Just a quick update about some recent tax law changes, some will likely impact you.

President Trump signed the One Big Beautiful Bill Act (OBBBA) on July 4. The Act primarily extends and replaces the expiring 2017 Tax Cuts and Jobs Act (TCJA).

Among all the changes, one really stood out: a major increase to the cap on State and Local Tax (SALT) deductions.

Starting in 2025, the SALT deduction cap will increase from $10,000 to $40,000 for households earning under $500,000. For higher incomes, this cap gradually gets smaller.

(Note): The higher cap, which is effective until the end of 2029, will revert to $10,000 starting in 2030.1

SALT Deduction “Savings” Example

The higher SALT deduction means some taxpayers may save more money by itemizing their taxes this year versus taking the standard deduction.

Here’s an example…

Assumptions:

  • Married Filing Jointly
  • Adjusted Gross Income (AGI): $300,000
  • SALT Paid: $35,000 (including property and state income tax)
  • Other Itemized Deductions: $7,000 (e.g., charitable giving and modest or no mortgage interest, common for many pre-retirees and retirees with paid-down loans)

This example shows how the increased SALT deduction can shift a married couple’s advantage, enabling them to itemize for an extra $10,500 in deductions, leading to an estimated $2,520 in tax savings compared to the prior 2024 standard deduction rules.

Temporary Deductions

The Act also introduces several new temporary deductions for 2025-2028, including:

  • A $6,000 deduction for single filers ($12,000 for joint filers) for those aged 65+.

  • Up to $25,000 for tips; and overtime wages ($12,500 for single filers, $25,000 joint filers). Note, payroll taxes still apply.

  • Up to $10,000 for qualifying auto loan interest on new, U.S.-assembled vehicles.

Keep in mind, the above deductions are subject to income phase-outs and other restrictions.2

Other Key OBBBA Highlights:

Permanent Tax Cuts: Many TCJA provisions are now permanent, including the existing individual income tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%), and the increased standard deduction, now $15,750 for single filers, $23,625 for heads of household and $31,500 for joint filers, for 2025.

Child Tax Credit: The Child Tax Credit is permanently increased to $2,200 beginning in 2025, and will be indexed for inflation beginning in 2026.3

[Deep Dive Resource]: For an OBBBA deep (deep) dive, read Breaking Down The One Big Beautiful Bill Act: Impact Of New Laws On Tax Planning.

These are significant tax changes, and we’ve only scratched the surface. To see how they might impact you using our tax modeling software, please reach out.

It will be an exciting tax season for sure!

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S…Our Key Financial Data spreadsheet is now updated with the OBBBA changes, including 2025 tax brackets, standard deductions, child tax credit and much more.

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1, 2, 3: Kitces.com, Breaking Down The “One Big Beautiful Bill Act”: Impact Of New Laws On Tax Planning. https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/

Bay Colony Advisors, DBA Windsor Wealth Management, is not a Certified Public Accountant and does not provide tax, legal, or accounting advice. Any tax-related information provided is for general informational purposes only and should not be construed as legal or tax advice. Each individual’s tax situation is unique, and you should consult with your own tax, financial, or legal advisors before making any decisions. We strongly recommend seeking the advice of a qualified CPA or other professional for personalized tax advice.

Clear Thinking: Are You Defining the Right Problem?

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Ever made a decision you later second-guessed?

Shane Parrish’s book, Clear Thinking: Turning Ordinary Moments into Extraordinary Results, tackles this head-on.1

Clear thinking and decision-making are incredibly relevant for successful retirement planning.

While Clear Thinking had many great ideas, one in particular really stuck out.

Parrish suggests a two-session approach to decision-making, whether it’s for business or personal matters:

First, define the problem, and then, solve it.

Why?

In general, we’re taught how to solve problems, but rarely how to define them well. And a poorly defined problem often leads to poor decisions, no matter how clever the solution, according to Parrish.

Let’s apply this concept to retirement planning…

3 Retirement Planning Examples: Identifying the “Real” Problem

Here’s how separating the problem from solving it may look like:

Example #1

Let’s say you’re deciding whether to downsize your home or keep it as a base for the grandkids.

Instead of jumping to “What should I do?”—start by asking: What problem am I really trying to solve?

Is it cash flow? Simplicity? Travel flexibility? Family legacy?

Once the problem is clearly defined, you’re better equipped to make a thoughtful, regret-free decision.

Example #2

Let’s say you’re considering whether to buy a second home in another state.

Instead of jumping straight to “Can I afford this?” or “Is now the right time?”—start by asking: What problem am I really trying to solve?

Is it about escaping winter weather? Being closer to family? Creating new memories? Diversifying lifestyle assets?

By defining the why, you might uncover simpler alternatives or confirm it’s truly worth the tradeoffs. Clarity on your real goal helps you evaluate options more effectively.

Example #3

Let’s say you’re debating whether to help an adult child with a major expense, like a home down payment or launching a business.

Instead of going straight to “Should I give them the money or not?”—pause and ask: What problem am I really trying to solve?

Is it about providing opportunity? Keeping family close? Reducing future estate taxes? Easing your own guilt or anxiety?

Once you clarify your core motivation, it’s easier to assess if financial support is the right tool or if there’s a better way to support your goals and theirs. Separating emotional pressure from the actual problem leads to clarity.

Mental Time Travel

Another powerful insight from the book encourages us to slow down and consider the perspective of our future selves, a form of ‘mental time travel’ that can lead to better decisions.

To travel forward in time ask yourself:

“What would future me wish I had done?”

“How will this decision feel in 10 days, 10 months or 10 years?”

These questions help you avoid impulsive or rushed choices, a real risk when retirement brings a flood of new freedoms and decisions.

High Stakes vs Low Stakes

Parrish recommends spending more time on decision-making when the stakes are high, and less time where they’re low.

Said differently, when the cost of a mistake is high and irreversible, move slow. When the cost of a mistake is low and easily reversible, move fast.

Examples:

High Stakes “Irreversible” Decisions (e.g., when to take Social Security or whether to sell a business) deserve careful thought and deliberate planning.

Low Stakes “Reversible” Decisions (e.g., which airline credit card to use or whether to try a new budgeting app) are best handled quickly, saving time and mental energy.

[Related Resource]: Download our handy budgeting worksheet.

Retirement Decision-Making Checklist

Before making final retirement planning decisions, ask yourself these questions:

  • What problem am I really trying to solve?
  • What does success look like and what would I regret?
  • What assumptions am I making?
  • What could go wrong? Have I planned for it?
  • Is there a way to split this decision into smaller, more manageable parts?
  • Am I being reactive, or thinking clearly and long term?
  • What would future me wish I had done?
  • What are the hidden opportunity costs?
  • If you say yes, what are you saying no to (and vice-versa)?
  • And then what?

Diving Deeper: What Could Go Wrong?

If markets experience a prolonged downturn, a job loss occurs or family needs change, how is your financial plan impacted?

Parrish urges us to prepare for setbacks before they happen.

We couldn’t agree more!

In our world, that might mean:

  • Estimating a spouse’s death impact on Social Security benefits.
  • Keeping income sources diversified.
  • Preparing for income disruption (e.g., disability).
  • Running “what-if” simulations to stress test your plan.
  • Setting aside a buffer for unexpected expenses.
  • Updating insurance coverage regularly for adequate protection.

These kinds of safeguards allow you to spend confidently, knowing your retirement can weather a few storms.

Retirement planning and financial well-being thrive on clear thinking.

We recently wrote more about this mindset in our articles:

> How to Spend Confidently Without Regret in Retirement

> 3 Steps To Help Your Money Outlive—You (Describes the financial guardrails we use to stress test your retirement portfolio.)

As an aside, we spend a tremendous amount of time asking: What could go wrong, and have I planned for that?

This approach is key to managing uncertainty within your portfolio.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1: Amazon: Clear Thinking: Turning Ordinary Moments into Extraordinary Results, https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112

AI Is Booming, Diversification Matters

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For a while now, we’ve been hearing how artificial intelligence (AI) is reshaping the investment landscape.

Much of the growth has come from a small group of stocks; specifically, the Mag 7: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.

Their recent performance has been remarkable, driving an outsized share of the S&P 500’s gains.

Here’s a look at the Mag 7’s performance since the 2025 market low in early April:

Alphabet (Google): 23.43, Amazon: 27.51, Apple: 17.54, Meta Platforms (Facebook, etc.): 37.60, Microsoft: 32.82, Nvidia: 49.49, Tesla: 46.98 — (Source: Morningstar, reported on 6/16/251)

Still, with so much riding on so few companies, market concentration is a real concern.

While AI presents exciting growth opportunities, it’s important to diversify within the AI sector itself, beyond just the largest players. This helps capture a broader range of innovation and mitigate risk.

For Example:

Diversification could include niche players and startups focused on AI in healthcare, finance, robotics and cybersecurity, or hardware manufacturers supporting data center expansion for AI workloads.

What’s more, you can diversify based on customer adoption cycles, e.g., AI in logistics or biotech may ramp up at different times than AI in social media or e-commerce.

Your Portfolio & Diversification

One of our key roles is to help ensure your portfolio isn’t overly reliant on any one company or sector. We stay diversified by spreading across industries, incorporating global opportunities and maintaining a mix of stocks, bonds and alternatives (e.g., real estate funds) to manage risk and support long-term growth.

Also, we review 20-to-30 accounts daily, adjusting holdings to maintain target asset allocations. This helps ensure your portfolio is aligned with your investment goals and market conditions.

To learn more, read our investment philosophy statement: A Disciplined, Research-Driven Approach to Investment Success.

Related: We discussed the Mag 7 earlier this year in our post: S&P 500 Shifts From Home Runs to Singles and Doubles.

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Source:

1: Morningstar, These Are the Best Mag Seven Stocks to Consider for AI Investing, https://www.morningstar.co.uk/uk/news/266066/these-are-the-best-mag-seven-stocks-to-consider-for-ai-investing.aspx

Mid-Year Review: Small life changes can have big financial impacts

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Welcome to summer!

Longer days, warmer weather and a fresh mid-year perspective.

June is the perfect time to take stock of what’s changed in your life, and what might be just around the corner.

Even small life shifts can carry big financial implications, which is why a mid-year review can be so valuable.

What’s changed in your world?

Today’s discussion includes:

  • Reviewing your life changes that may warrant a financial plan update.
  • A checklist to help stretch your retirement income.
  • Tips for backing up and protecting essential documents.

Mid-Year Review: What’s changed?

Life can throw us curveballs and priorities can shift, so let’s make sure your financial plan is still aligned with what you want to achieve.

Give us a call if any of the following applies to you:

Job or Income Changes: A new role, early-retirement offer, added income stream, selling a business? These changes typically affect taxes, benefits (e.g., Medicare IRMAA penalty) and investing strategies. There are, however, financial moves we can often make to offset downside ramifications.

[Related Resource]: Planning Your Final Days of Work Before Retiring

Family Milestones: Marriage, divorce, birth, death, aging parents or adult children with new special needs may require estate or insurance updates.

Health: A recent diagnosis or nearing age 65? Let’s make sure your healthcare plans are in place. Also, if you want to learn more about long-term care insurance, contact us. We’re happy to discuss the pros, cons and costs. Keep in mind, we don’t sell insurance. However, we have long-standing relationships with insurance specialists.

Large Purchases, Sales or Windfalls: Selling a home, funding college or receiving an inheritance? Planning ahead can help reduce financial surprises.

Retirement Approaching: If retirement is just a few years away, it’s time to solidify your plans. A smart Social Security strategy and a well-timed savings withdrawal plan can often extend the life of your retirement funds. We’ll also help you establish a two-to-four-year financial safety net and structure your withdrawals to minimize taxes. For a closer look at our approach, check out: How To Spend Confidently & Without Regret in Retirement.

Prolonging Retirement Income (Checklist)

Whether you’re already retired or planning to be soon, this checklist can help you identify steps that may extend your savings. It’s a great resource to review annually.

[Download the checklist]

Are Your Essential Documents Backed Up and Safe?

If there were a house fire tomorrow, would you have what you need? A simple fire-safe box can help you protect the basics, including:

  • Birth Certificates
  • Digital Account Logins
  • Emergency Contact List
  • Estate Documents
  • Home Inventory Photos/Video (for insurance claims)
  • IDs & Passports
  • Insurance Policies
  • Key Warranties (e.g., new roof, solar panels, windows, etc.)
  • Loan Documents
  • Social Security Cards
  • Spare Emergency Cash
  • Vehicle Titles

Digital Vault

Our clients have access to a secure digital vault.

It’s a private, encrypted space where you can store digital copies of key documents, including those listed above but also scans of: credit cards, divorce decrees, marriage certificates, property records and more. The vault is accessible anytime, from anywhere, securely.

Fire-Safe Boxes for Important Items

To help protect your important documents, look for a fire-safe box with a UL 72 or ETL certification, a 120-minute fire rating and water resistance.

Underwriters Laboratories (UL) and Electrical Testing Laboratories (ETL) are Nationally Recognized Testing Laboratories. They independently test products to stringent safety and performance standards.1

Important: Your protection-rating needs may vary. For example, if you’re looking for a safe that protects digital media or is burglary resistant, these require different UL classes.

American Security has some helpful articles regarding safes, including Why Safe Ratings Matter.2

–David Bunker, Financial Advisor & Licensed Fiduciary

Before You Go

Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.

Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.

This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.

Sources:

1: Osha.gov, Current List of NRTLs: https://www.osha.gov/nationally-recognized-testing-laboratory-program/current-list-of-nrtls

2: American Security, Why Safe Ratings Matter: https://americansecuritysafes.com/why-safe-ratings-matter