Windsor Wealth Management LLC

Investment service in Topsfield, Massachusetts

Windsor Insights

Is market news scaring you? Here’s the bigger picture.

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Could the financial news headlines be more daunting?

Trade uncertainty and its economic ripple effects are behind most of these headlines. (Read our post for the “real” impact of tariffs.)

However, a crucial point often absent in media coverage is the historical link between market volatility and long-term portfolio growth.

For Example:

The below chart depicts the growth of one dollar from 1926 till 2024. The red lines highlight 20%+ market drops.

As you’ll see, time after time the market bounces back—even higher.

Your Financial Plan

We’ve built your financial plan to navigate market volatility.

Candidly, if you want long-term portfolio growth, then the price you pay is short-term volatility.

Unsurprisingly, we’ve seen this recent volatility before, i.e., during Covid. And, we bounced back from that—even higher!

Uncertainty drives volatility.

No one knows when the volatility will end. Nevertheless, we’re confidently buying valuable companies on sale.

I encourage you to stay the course and maintain your financial plan.

Reach out with any concerns or questions.

–David Bunker, Financial Advisor & Licensed Fiduciary

P.S. Thank you to everyone who requested a copy of Bill Perkins’ “Die With Zero.” I was thrilled by the response following last month’s email, How To Spend Confidently & Without Regret in Retirement, where we discussed the book. I still have a few copies available, so please let me know if you’d like one.

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.

Home Energy Audits and Energy Tax Credits

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Is your home leaking money?

Wealth isn’t just about accumulation; it’s about being intentional with your resources.

Optimizing your home’s energy efficiency is a prime example.

Just as we seek to help maximize your financial returns, you can maximize your home’s comfort and value, while also leveraging energy credits to lower your taxes.

Are your cooling and heating systems energy efficient?

Our goal today, is to help you:

– Discover hidden savings via a professional home energy audit.

– Reduce taxes by leveraging energy credits.

– Understand two key 2025 energy tax credit changes.

– Increase awareness of energy-efficiency scams.

Useful Home Energy Audits

A good energy audit includes a detailed report of where your home is losing energy, and what you can do to fix it.  

The first step, is finding a certified energy auditor. Specifically, a professional who’ll provide you unbiased information and isn’t selling products.

Finding a Reputable Auditor

The U.S. Department of Energy recognizes about 10 home energy auditor qualified certification programs for the Energy Efficient Home Improvement Credit.

To find certified professionals near you, try the Building Performance Institute (BPI) locator. Keep in mind, BPI is just one locator option.

Ideally, select an auditor that doesn’t perform repairs. This helps ensure less bias results.

Related…

Mass Save® is a collaboration of Massachusetts utilities that offer home energy assessments (at no cost), rebates and incentives to help you reduce your energy costs.

Incentive Example:

The Mass Save HEAT Loan offers 0% financing for eligible energy-efficient upgrades. Starting January 1, 2025, you can finance up to $25,000. The financing covers a range of improvements, including insulation, heat pumps, batteries and more.

Most states offer energy-efficiency programs, supported by state, utility and federal incentives, including New Hampshire.

Therefore, before upgrading any cooling or heating system, or replacing any appliance, be sure to check for available rebates and incentives.

Pinpointing where your home loses the most energy will help you prioritize repairs and maximize IRS home energy credits.

Resource: Here’s a helpful chart listing what to expect an auditor to have for tools, (e.g., combustion analyzer, infrared camera, digital probe thermometer, etc.) and what the audit entails.

Finally, watch out for unsolicited “free” energy audit offers. Some companies use these to push you into buying things you don’t need. Always double check who the auditor works for and get a few different opinions before agreeing to any work or signing on the dotted line.

Home Energy Tax Credits & Key 2025 Changes

The Energy Efficient Home Improvement Credit is available for qualifying home improvements made from January 1, 2023 through 2032. To qualify for these credits, generally the improvements must be for your primary residence and use only new materials and systems.

2 Key Changes:

There have been two key changes to the program starting in 2025, including:

#1—Energy-efficient products eligible for the credit need to be manufactured by “qualified” manufacturers.

The IRS is establishing a program to certify manufacturers whose products meet specific energy efficiency standards. This requirement helps ensure the products receiving tax credits are genuinely contributing to energy savings.

#2—When claiming the credit, you must provide the Product Identification Number (PIN) for the qualifying items on your tax return.

Basically, the PIN is a unique ID the IRS uses to ensure the product meets standards, comes from a legit company and matches your credit claim.

Watch Out for Energy-Efficiency Scams

The number of U.S. solar installations is expected to double by 2030, according to the Solar Energy Industries Association®.

Therefore, it’s not surprising we’re seeing increases in solar scams.

The U.S. Treasury describes popular solar scams in their article, Consumer Solar Awareness. (It also talks about buying vs. leasing solar power systems.)

The article highlights several scam tactics, including:

– Sales pitches saying, “This is a government program” to make you think a solar installation is free or government-endorsed.

– Promises of free solar panels and limited-time offers and other pressure tactics urging you to sign up without examining the details.

– Promises of tax credits even though you owe no taxes or promises that the government will send you a tax rebate check in the mail.

Overall, solar panels may be a good option to lower your energy costs, but take your time when evaluating your options.

Buyer Beware: In general, if something is unsolicited, creates a sense of urgency, demands immediate or unusual payment, or sounds too good to be true—assume it’s a scam.

[Related]: Since the weather is getting warmer, watch out for paving scams.

Helpful Tips: No matter if you’re buying a new home or an appliance, be sure to look for the Energy Star mark. Keep in mind, the Energy Star isn’t always the only requirement for tax credits. But, it’s a good indicator of energy efficiency and, therefore, a good place to start.

Finally, don’t forget about Consumer Reports, a nonprofit organization that provides unbiased testing and ratings of products and services, (e.g., new A/C, refrigerator, smart thermostat, etc.). You can often access their reports online for free with most library memberships.

–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.

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.

How To Spend Confidently & Without Regret in Retirement

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Let’s challenge conventional wealth accumulation wisdom…

Our team recently read the book, Die With Zero: Getting All You Can From Your Money by Bill Perkins. It’s an easy-to-read personal finance book that challenges current retirement norms.

(We have extra copies—feel free to stop by and pick one up. We’d love to meet you!)

Creating memories or leaving an inheritance: when is the right time to give?

Today, we discuss how to:

  • Get all you can from your money, (i.e., highlight ideas from the book Die With Zero).
  • Spend confidently and without regret in retirement.
  • Decide the right time to give—now or later—using sophisticated money modeling.

Get All You Can From Your Money

Bill Perkins’ “Die With Zero” overall argument is:

When preparing for retirement, people often save too much and spend too little, ultimately missing out on meaningful life experiences.

Perkins argues money should be spent strategically for fulfillment, not just left behind.

Before going any further, let’s be clear…

We’re not encouraging you to be financially irresponsible. Absolutely not!

But, Perkins is definitely onto something—especially when you combine his ideas with strategic financial planning.

Here are some of his key points:

Maximize Life Experiences: Instead of focusing solely on accumulating wealth for retirement or your heirs, think about how you can use your money to create meaningful experiences while you’re able to enjoy them.

Time-Bucket Your Life: Your life has different stages, and each one comes with unique opportunities. Be intentional about how you allocate your money so you can make the most of every phase—especially while you’re healthy.

Invest in Experiences Early: The best time to create lasting memories isn’t “someday”—it’s now. Enjoying experiences earlier in life helps you feel more fulfilled.

Avoid Over Saving: Too many people work longer than they need to and save more than they’ll ever spend. The result? They leave behind wealth they never got to enjoy themselves.

Optimize Giving: If you plan to leave money to loved ones or charities, consider giving earlier rather than waiting until after you’re gone. Your generosity could have a much bigger impact now.

[Related Blog Post]: One of the best times to use Qualified Charitable Distributions (QCDs) is early in the year. Learn why in our post, 2025 Tax Planning Resources & Key Financial Data Spreadsheet.

Plan for a Declining Health Curve: Your ability to travel, explore and be active won’t last forever. That’s why it’s important to strike a balance between financial security and truly living while you can.

Perkins’ ideas sound reasonable. In reality, though, most require detailed financial planning.

This is where we come in…

Spend Confidently and Without Regret in Retirement

Many retirees worry about spending their money, i.e., What if the market takes a downturn? What if I outlive my savings?

While these concerns are natural, a well-structured financial plan helps you be intentional with your spending and feel secure knowing your money will outlive you.

Our role is to guide you through this process with a clear four-step approach:

Step #1—Determine Your Retirement Spending Capacity & Create a Tax-Efficient Withdrawal Plan

Everyone’s financial situation is unique, with different levels of savings, income sources and comfort with risk. We take a personalized approach to managing your investments—balancing growth with stability while ensuring you can spend confidently in retirement.

A key part of this strategy is minimizing taxes on your withdrawals so you keep more of what you’ve saved. We do this by carefully selecting which accounts to withdraw from first—whether taxable, tax-deferred or tax-free—based on your income needs and current tax rates.

This approach helps extend the life of your portfolio, allowing your investments to continue growing even as you draw from them.

Overall, it’s our job to tell you how much you can afford to spend in retirement. A primary tool we use to help you is advanced software (aka Income Lab) that includes sophisticated money modeling guardrails.

Resource: We discussed money modeling guardrails in a recent post: 3 Steps To Help Your Money Outlive—You.

Step #2—Create a Monthly Paycheck for You

One of the biggest adjustments in retirement is transitioning from a regular paycheck to drawing from multiple income sources.

Most of our clients rely on a mix of Social Security, pensions, part-time work and investment withdrawals for their retirement income.

Some also have additional income streams, e.g., rental properties, royalties, payments from seller financing, etc.

Understanding how these income sources interact is essential for confident retirement spending.

That’s why we focus on transforming your various income streams into a tax-efficient monthly paycheck.

Simple Example:

Imagine your annual withdrawal plan from investments is $84,000 (excluding Social Security, pensions and other income sources). Each month on the 15th, we’ll deposit $7,000 from your investment portfolio into your checking account, ensuring you receive a steady stream of income.

This way, you can enjoy a sense of stability, knowing a $7,000 “paycheck” will arrive in your account every month.

Step #3—Put Aside Two-to-Four Years of Safety Net

To help ensure you can weather market fluctuations without disrupting your lifestyle, we set aside two-to-four years’ worth of income needs in a conservative investment account (that still grows).

For example, if you plan to spend $84,000 per year, we earmark $252,000 to cover the first three years of retirement.

This portion of your portfolio is stable, meaning that even if the market declines, your ability to meet your spending needs remain intact. Meanwhile, the rest of your investments continue growing for the future.

Step #4—Perform Annual Audits & Make Smart Adjustments

Each year, we reassess your portfolio balance versus your spending and market conditions.

If the market performed well, we “refill” the amount spent from the safety net.

However, if the market had a down year, we hold off on refilling and use the second year’s reserve instead.

Since market recoveries typically take six to 18 months, this approach helps protect your long-term investments.

Audit: Keeping Spending on Track

As part of the audit, we discuss your spending target. Again, let’s say it’s $84,000. If you end up spending more, perhaps $98,000, it may not be an issue if the market was strong. However, if higher spending becomes a pattern, we’ll flag it and have a conversation about sustainability.

Retirement should be about enjoying life, not worrying about money.

By following a plan that balances stability with flexibility, you can confidently spend with the knowledge that your financial future is secure.

Decide the Right Time to Give—Now or Later

Imagine sharing your wealth with loved ones now—without stressing about your future finances.

How does Windsor Wealth Management help you decide whether to give money now (especially if your loved ones could really use it), or wait?

We typically present two scenarios:

Scenario One: You hold onto your money and pass it on after you’re gone.

Scenario Two: You gift, say, $5,000 to each grandchild now and see the impact on your financial plan.

Most of the time, the effect from early giving is minimal.

Using our real-time software modeling, we run the numbers so you can see the difference.

For example, perhaps instead of spending $12,000 per month, you adjust to $11,500.

This way, you can give—now—with confidence.

Final Thoughts

Bill Perkins offers some good insights, encouraging people to make the most of their wealth during their lifetime.

Keep in mind, his perspective comes from the lens of a successful (and wealthy) hedge fund manager and entrepreneur.

Ultimately, as with all things in life, balance is key—enjoying your wealth while ensuring financial security for the long run.

–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.

Our Response to Recent Market Volatility

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The stock market’s recent volatility can feel unsettling, but we remain confident in our strategy.

That said, it’s natural to feel rattled—or even tempted to move to cash—when markets drop, especially with the media constantly promoting this approach during market swings.

However, history shows that some of the best market days happen right after the worst ones.

As an example, see the chart below highlighting: Staying invested yields a 10.4% gain, while missing the 60 best days results in a -3.7% loss.

When Visibility Is Low, Strategy Matters More Than Ever

Background

The stock market has been volatile the past few days, down about 8.2% from a recent high in early February.

For perspective, the market dropped 8.5% between July 16 and its low on August 5, 2024, but rebounded by August 30, surpassing its July 16 level.

In general, market recoveries tend to be quick. The average time to recovery is three months from a 5%-10% downturn and eight months from a 10%-20% correction, according to Invesco research.

Let’s take a look at two key factors causing the current fluctuations:

#1—Tariffs

President Trump recently imposed new tariffs on Canada, Mexico and China, escalating trade tensions and contributing to market uncertainty. After a 30-day pause, he implemented 25% duties on Canadian and Mexican imports, along with a second round of 10% duties on Chinese goods, bringing total tariffs on China to 20%. (Then, just two days after, Trump issued some exemptions for Mexico and Canada goods. The situation is highly fluid.)

The media often frames this as a “trade war” or even an “act of war,” but we urge you not to get caught up in the rhetoric.

FACTS: Clarifying Misconceptions & Highlighting Opportunity

Tariffs existed well before income taxes in the U.S.

In fact, they were the primary source of federal revenue for much of U.S. history before the income tax was introduced in 1913.

While tariffs continue to generate revenue today, they’re a very small portion of the federal budget compared to income taxes. (To learn just how small, read our post: The Economy, Tariffs & Consumer Sentiment.)

This historical perspective can help put recent tariff activity in context, i.e., rather than viewing them as unprecedented or catastrophic, it’s helpful to remember that tariffs have long been an economic policy tool.

Tariff activity may cause short-term market fluctuations. However, it’s not inherently a signal of economic collapse—despite media hype.

Finally, past volatility—whatever the cause (e.g., inflation, pandemic, tariffs, war, etc.)—has been an opportunity to buy great companies at a discount.

#2—Broad Economic Uncertainty

There’s a general sense of economic uncertainty driven by multiple factors, including geopolitical tensions, inflation concerns, interest rate policies and the new administration’s actions.

In just the last few weeks, Trump has signed nearly 100 executive orders targeting key areas, e.g., immigration, energy, federal workforce policies, trade, etc.

This activity and uncertainty fuels market fluctuations as investors react to shifting economic conditions. Markets tend to be sensitive to uncertainty, and volatility often follows when investors struggle to predict how these factors will play out.

Our Recommendations

Keeping a long-term perspective can help ease concerns about volatility and uncertainty.

In fact, staying invested through the ups and downs is key to long-term success.

Keep in mind:

-Each day, we rebalance 20 to 30 client portfolios to help maintain diversification and manage volatility. We also ensure your portfolio has the right mix of cash and bonds to navigate market fluctuations. Every decision is tailored to your unique risk tolerance and retirement timeline.

-Market swings often present opportunities, and have historically been an opportunity to buy good companies on sale.

Maintain Your Long-Term Financial Plan (Chart)

As we mentioned earlier, it’s natural to feel the urge to move to cash when markets drop. But doing so could mean missing out on some of the best market rebounds.

Consider these market facts from the below chart covering 1/3/05-12/31/24:

  • Seven of the 10 best days occurred within two weeks of the 10 worst days.
  • Six of the seven best days happened right after the worst days.
  • The second-worst day of 2020 (March 12) was immediately followed by the second-best day of the year.

Market downturns are often followed by strong recoveries. Staying invested helps ensure you don’t miss those critical days.

Of course, no one knows the future—but history offers a clear lesson.

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.

S&P 500 Shifts From Home Runs to Singles and Doubles

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For the past few years, the Magnificent 7 have dominated market earnings growth, at one point soaring nearly 60%. (see chart)

However, this pace is unsustainable.

As expected, the Mag 7’s (Apple, Microsoft, Amazon, Nvidia, Tesla, Alphabet and Meta) earnings growth is slowing. It’s now projected around 20%, still a strong gain.

Meanwhile, the rest of the S&P 500 is growing steadily.

This is a welcome sign, since diversification helps manage risk, (i.e., instead of home runs, the market’s delivering singles and doubles—small, steady gains that add up over time).

Let’s face it, home runs are great.

But, a well-rounded team—built on singles, doubles and solid defense—wins more games.

The same goes for diversification in investing.

What’s causing the shift?

Steady economic growth is helping drive the broader earnings, including a GDP around 2.5-2.7% and low unemployment. AI also remains a key growth driver.

It’s encouraging to see more companies contributing to earnings growth.

Granted, the right side of the chart (gray shaded area) is an estimate, but if these trends hold, we’re likely looking at a more balanced market in the coming months.

PS: If you missed it, we previously shared a detailed update on the economy: The Economy, Tariffs & Consumer Sentiment.

–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.

The Economy, Tariffs & Consumer Sentiment

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During last year’s client survey, the economy was the top concern for many clients. It’s also the key topic for today.

Before diving into the details, here are two friendly reminders:

#1—Take a long-term view when assessing the economy, markets and stocks.

#2—Question headlines. Economic news is often exaggerated for clicks. Verify sources and take breaks from news and social media if it feels overwhelming.

Source: Microsoft Designer AI

Today, we discuss:

– The economy, including the labor market, corporate profits and consumer sentiment.

– Trump’s tariffs—the “real” impact.

– How Windsor Wealth Management responds to economic uncertainty.

The U.S. Economy Is a Mixed Landscape

Labor Market

The labor market remains strong, with employers adding 143,000 jobs in January, bringing the unemployment rate down to 4% (from 4.1% in December).

However, job growth pace is slowing.

U.S. Growth

Capital Group economists predict U.S. Gross Domestic Product (GDP) growth will reaccelerate to 2.7% in 2025.

The global investment firm believes strong corporate earnings and rising incomes will keep job growth and spending steady. Although, inflation will likely remain stubborn, keeping interest rates higher for longer.

For comparison, the U.S. economy’s GDP rose 2.8% in 2024, slightly below 2023’s 2.9% growth.

In general, the new White House administration is creating uncertainty, which is to be expected.

Corporate Profits

Business earnings are expected to grow at a steady 10-11% in 2025, aligning with historical long-term averages, according to analysts.

This level of profitability suggests businesses are maintaining resilience despite shifting economic conditions, providing a stable foundation for investment and growth.

While challenges such as inflation and interest rates remain factors to watch, these projections indicate a healthy corporate landscape moving forward.

Consumer Sentiment

Consumer sentiment decreased in early 2025, according to the preliminary University of Michigan Index of Consumer Sentiment.

The index dropped to 67.8 in February, down from 71.1 in January, reflecting growing concerns about inflation and its potential economic impact.

Exactly what is this index and why does it matter?

It’s like a mood ring for the economy.

The university surveys consumers every month to gauge how optimistic or pessimistic they are about the economy.

They ask people questions about things like:

  • How they feel about their current finances.
  • What they think about the economy in the short term and long term.
  • Whether they think it’s a good time to buy big things like appliances or cars.

This index is important because it gives us clues about where the economy is headed.

Of course, it’s just one of the many factors to consider.

Decreasing Consumer Sentiment Impact

When consumer sentiment declines, it can create a negative feedback loop.

It looks like this:

When people are worried about the economy, they often spend less.

They might postpone big purchases (e.g., new bedroom set) or cut back on non-essential spending (e.g., dining out).

This decrease in consumer spending can lead to:

  • Slower Economic Growth: Consumer spending drives the economy. In fact, it’s two-thirds of the economy. A pullback hurts business sales and jobs.
  • Risk of Recession: A prolonged drop in consumer spending can contribute to an economic downturn.
  • Business Uncertainty: Companies may delay hiring or investment if they see weaker demand ahead.

Overall, pessimism leads to less spending—slowing growth—which fuels more pessimism and further spending cuts, i.e., a negative feedback loop.

This drop in consumer sentiment is not surprising. Households have been feeling pressure from inflation and increased prices for months now.

Trump’s Tariffs—The “Real” Impact

Let’s start with some background…

In early February, President Trump imposed new tariffs on imports from Canada, Mexico and China, citing a national emergency related to illegal immigration and the flow of fentanyl into the U.S.

These tariffs include a 25% increase on imports from Canada and Mexico, and a 10% increase on imports from China. Energy resources from Canada will have a lower 10% tariff.

The administration says these measures are necessary to pressure these countries into taking stronger action against illegal immigration and drug trafficking, according to a White House fact sheet.

Canada and Mexico:

Both countries initially announced 25% retaliatory tariffs on U.S. goods. However, after negotiations they agreed to delay them for 30 days.

As part of the agreement, Canada committed to appointing a “fentanyl czar” and enhancing border security, while Mexico agreed to deploy 10,000 National Guard troops to its northern border to curb drug trafficking and illegal immigration.

China:

China has retaliated, imposing a 15% tariff on U.S. coal and liquefied natural gas, as well as a 10% tariff on crude oil.

IMPACT: Key U.S. Imports

The U.S. relies on key imports—horticultural goods from Mexico (e.g., fresh fruits and vegetables) and energy from Canada. Canada supplies almost 20% of U.S. oil supply and more than half of total U.S. oil imports.

The most direct impact of tariffs is higher costs for imported goods, which can drive up prices for consumers.

When it comes to tariffs, is the media providing the full picture?

No.

Tariffs have an impact, but it’s important to keep perspective.

Specifically, 85% of U.S. GDP comes from domestic activity—leaving only 15% tied to trade.

What’s more, about half of the 15% comes from China, Canada and Mexico, effectively reducing the 15% by half, softening the overall tariff impact.

Candidly, the tariff situation is still unfolding and is highly fluid.

The uncertainty isn’t surprising, however, given that tariffs were a key focus of the new administration’s campaign.

How Windsor Wealth Management Responds to Economic Uncertainty

While we provide many services for our clients, helping you navigate uncertainty is a critical focus. Economic and market uncertainty increases financial risk, making decision-making more challenging.

That’s why we take a disciplined, research-driven investment approach—one that prioritizes long-term strategy, risk management and adaptability.

How do we do this?

By diversifying portfolios to reduce unnecessary exposure to volatility, actively monitoring market conditions and relying on deep, unbiased research to guide our decisions.

In today’s landscape, with shifting government policies, tariffs and geopolitical changes, staying informed and maintaining a structured investment process is essential to managing risk and seizing opportunities.

–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.

Catch-Up Contributions: How $1,000 May Elevate Retirement

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Retirement planning is all about maximizing your resources, and for those 50 and older, catch-up contributions offer a meaningful opportunity to do just that.

The following two charts illustrate how adding $1,000 annually to your retirement savings (the catch-up amount) can grow to an additional $21,551 by age 67, assuming a 7% annual return.

Chart A (no catch-up)

Chart B (includes $1,000 catch-up contribution)

Source: Windsor Wealth Management, Chart A: Initial Balance $2,000,000, Annual Limit $7,000 at 7% annual return. Chart B: Initial Balance $2,000,000, Annual Limit $7,000 + $1,000 Catch-Up at 7% annual return.

While $21,551 isn’t necessarily a life-altering sum, think about the possibilities that extra cushion could provide in retirement.

For example, maybe you:

  • Boost your living experience, (e.g., add a cozy sunroom for year-round enjoyment).
  • Establish a small scholarship in your family’s name.
  • Fund an annual vacation for the next decade, (e.g., rent a beachfront home to host family reunions).
  • Support family milestones like a grandchild’s education or wedding.

The key takeaway?

Every dollar saved today creates more possibilities for tomorrow.

If you’d like to explore how catch-up contributions fit into your financial strategy, reach out.

PS: In case you missed it, we wrote a detailed post describing 2025 Tax Planning Resources, including a Key Financial Data spreadsheet.

–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.

2025 Tax Planning Resources & Key Financial Data Spreadsheet

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Happy New Year!

As we kick off a new year, it’s time to turn our attention to the upcoming tax season.

This post is intended as a year-long resource, so keep it handy.

2025-Tax-Planning-Resources

2025 Tax Planning Resources

Today, we discuss:

  • 2025 key financial data, including tax brackets, retirement plan distribution limits, Medicare premiums, standard deductions, child tax credit, and more. (Summarized in an organized spreadsheet.)
  • Changes in the IRS 2025 retirement contribution limits and a new “super” catch-up contribution for those aged 60-63.
  • Using QCDs earlier in the year.
  • The HSA’s triple tax benefits.
  • Why income taxes “may” increase in 2026.

2025 Key Financial Data (Useful Spreadsheet)

Keep this spreadsheet (links to our website) handy throughout the year. (Updated post President Trump signing the One Big Beautiful Bill Act (OBBBA) on July 4, 2025.)

Within it, you’ll find 2025 tax brackets, retirement plan distribution limits, Medicare premiums, standard deductions, child tax and education credits, tax rates for long-term capital gains and qualified dividends, tax on Social Security benefits, and much more.

If you’d like a quality hard copy, let us know. We’re happy to mail one to you or feel free to stop in.

IRS 2025 Contribution Limit Changes & New “Super” Catch-Up Contribution

We encourage maximizing your retirement savings contributions. If you’re unsure how, reach out. Let’s explore strategies to increase your savings.

401(k), 403(b), 457, TSP & SIMPLE IRAs Limits:

General Limit: $23,500 (401(k), etc.)

General Limit SIMPLE IRA: $17,600 (< 26 employees) or $16,500 (> 26 employees)

Age 50+ Catch-Up: $7,500 most plans; $3,500 (SIMPLE IRAs)

Ages 60-63 “Super” Catch-Up: $11,250 most plans; $5,250 (SIMPLE IRAs)

Traditional & Roth IRAs:

General Limit: $7,000

Age 50+ Catch-Up: $1,000

Key Change: The “super” catch-up contribution allows individuals aged 60-63 to increase their retirement savings by contributing more (generally $11,250) to their employer-sponsored retirement plans.

Use QCDs Earlier in the Year

With a Qualified Charitable Distribution (QCD), you can transfer up to $100,000 directly from your IRA to a charity tax-free. It’s often beneficial to take your QCDs before your Required Minimum Distributions (RMDs), since it can lower your taxable income.

Here’s how it works:

RMD: Let’s say your RMD is $20,000.

Donation: You donate $3,000 to charities directly from your IRA.

Deduction: This $3,000 is deducted from your $20,000 RMD.

Taxable Amount: You only pay taxes on the remaining $17,000.

There are other benefits to using QCDs earlier in the year, including avoiding potential delays that can sometimes occur during the busy year-end season.

Also, if you have a charity in mind, making your QCD early in the year provides the charity with the funds sooner, putting your donation to work faster.

Important Note: When using Fidelity for a QCD, you won’t receive a tax form. To claim the tax deduction, you’ll need to inform your tax advisor.

At Windsor Wealth Management, we regularly facilitate QCDs for our clients, and we’re happy to engage with your accountant.

HSA: Triple Tax Benefits

Health Savings Accounts (HSAs), offer several tax benefits to help you save money on health care costs.

Keep in mind, HSAs are only available to individuals enrolled in a high-deductible health plan, have no other health care coverage, and are not enrolled in Medicare or claimed as a dependent.

Here are the triple tax benefits:

#1—Tax-Deductible Contributions: The money you contribute to an HSA is tax-deductible, meaning it reduces your taxable income, which can lead to tax savings in the present.

#2—Tax-Free Growth: Any investment earnings your HSA accumulates grow tax-free, allowing your savings to potentially build up more quickly over time.

#3—Tax-Free Withdrawals: When you use your HSA funds to pay for qualified medical expenses, such as doctor’s visits, prescription drugs or hospital stays, the withdrawals are tax-free.

Also, HSAs have no “use it or lose it” rule. The funds can roll over indefinitely from year to year. (Whereas, unused funds in a Flexible Spending Account (FSA) are typically forfeited at the end of the plan year.)

For 2025, HSA contribution limits are:

Self-only: $4,300

Family: $8,550

Individuals aged 55 and older can make an additional $1,000 catch-up contribution.

Income Taxes May Increase in 2026

The Tax Cuts and Jobs Act (TCJA) is a tax law passed in 2017 that made significant changes to the US tax code.

Many of the individual tax cuts under the TCJA are set to expire at the end of 2025. If Congress doesn’t extend these provisions, income tax rates for many Americans could increase starting in 2026.

Under the TCJA, marginal tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%.

If the TCJA expires on 12/31/25, then marginal tax rates will revert to their permanent pre-TCJA levels of 10%, 15%, 25%, 28%, 33%, 35% and 39.6%, according to a Congressional Research Service report.

Want to see how the potential expiration of the TCJA might affect your taxes?

Our software can illustrate the potential tax implications of different income levels.

Contact us if you’d like to see how your tax burden could change under various circumstances.

Quick Look: 2024 Market Performance

In short, 2024 was a great year for the stock market, with the S&P 500 finishing up 25.02% for the year, and 3% in the last quarter.

Communication services and big tech led the way, consistently outperforming the rest of the market, largely due to the rise of artificial intelligence. Compared to 2023, there was broader market participation in 2024, with sectors beyond communication services and big tech contributing more evenly to the market’s growth.

Looking ahead to 2025, company valuations are high, so we may not see as strong a year.

Fidelity does a nice job recapping 2024 in their article, 2024 Stock Market Report. It’s an easy read too.

–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.

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.