# Site: patriotinvestment.com # URL: https://www.patriotinvestment.com # Generated: 2026-08-16 03:01:29 # Version: 1.2 # File Type: llms-full.txt # Total Pages: 119 --- ## Quarterly Market Commentary: Third Quarter 2021 URL: https://www.patriotinvestment.com/blog/quarterly-market-commentary-third-quarter-2021/ #### Markets Struggle In The Third Quarter Global equity markets had a mixed third quarter, but when the final Wall Street-bell rang on September 30 th , global markets had not moved very much, despite the final month of the quarter which turned in dismal results. For the third quarter of 2021: • The DJIA ended with a loss of 1.5%; • The S&P 500 ended up 0.6%; • The NASDAQ ended with a loss of 0.2%; and • The Russell 2000 ended with a loss of 4.4%. Despite the mixed returns for the third quarter and the dismal September returns, most investors are instead focusing on how the market performed for the first nine months of the year – and those numbers are solid. • The DJIA is up 12.1%; • The S&P 500 is up 15.9%; • NASDAQ is up 12.7%; and • The Russell 2000 is up 12.4%. Interestingly, the themes that helped drive market performance during the third quarter have been on Wall Street’s worry list for a while. Topping those concerns are rising inflation, declining consumer sentiment, an overheating housing market, concerns that the Delta Variant might stall economic activity, and disappointing economic data, which has been hampered by supply chain issues. Furthermore, we saw that the overall stock market volatility trended up in the third quarter.  Although oil did not move much in the third quarter, it has climbed more than 50% in the last six months. #### Market Performance Around The World International investments performed poorly, too. Thirty-two of the thirty-five developed markets tracked by MSCI, the international benchmark, were negative for the third quarter of the year. #### Inflation Keeps Rising The Bureau of Labor Statistics reported that the Consumer Price Index increased 0.3% in August on a seasonally adjusted basis after rising 0.5% in July. Over the last 12 months, this index increased 5.3%. A few highlights: • Gasoline, household furnishings, food, and shelter all rose in August and contributed to the monthly indexes seasonally adjusted increase. • The energy index increased 2.0%, mainly due to a 2.8% increase in the gasoline index and the index for food rose 0.4%. #### Patriot’s Philosophy If an investor focused on all the challenges in the economy, they would not have put a penny in the stock market.  Nevertheless, the market is on track for another exceptional year.  At Patriot, we believe that the overall allocation between stocks and bonds is the primary determinant of portfolio returns. This is one of the variables we can control to mitigate the risk of our client’s portfolios.  If you have any questions regarding your portfolio please don’t hesitate to reach out to a member of our team. --- ## 1st Quarter 2021 Market Commentary URL: https://www.patriotinvestment.com/blog/1st-quarter-2021-market-commentary/ #### Markets Reach New Highs in Q12021 Global equity markets had a choppy first quarter, but when the final Wall Street-bell tolled on March 31 st , global markets had turned in some very solid performance numbers on their way to new record highs. Given that investors did see interest rates rise, oil prices jump, inflation worries reappear and continued headwinds from COVID-19 surface, the first quarter returns for the major U.S. and global, developed markets was nothing short of impressive. For the first quarter of 2021: • The DJIA added 7.8%; • The S&P 500 went up 5.8%; • NASDAQ gained 2.8%; and • The Russell 2000 added 12.7%. The themes that drove the markets in the first quarter were mostly-positive economic data, the passing of another stimulus package and more COVID vaccines being distributed around the world. Yes, a glass-half-empty investor could find plenty to worry about, especially as the 10-year U.S. Treasury added 83 basis points in the quarter, but the markets seemed to generally ignore most of the negative chatter on their ways to new highs. For most of the quarter, Wall Street and Main Street held their collective breath until President Biden signed another $1.9 trillion COVID-relief bill, which will provide relief to small businesses and direct payments to individuals and families. As the quarter was wrapping up, President Biden introduced a massive $2 trillion infrastructure spending bill and suggested that another relief bill was in the works. Further, we saw that: • Volatility, as measured by the VIX, trended modestly lower from 27 to 17 for the quarter, although the end of January saw a significant spike that pushed the VIX north of 37. • West Texas Intermediate crude trended up for the quarter, adding about $12/barrel over the 3 months to close out the first quarter at about $60/barrel. #### Market Performance Around the World Investors were thrilled with the quarterly performance around the world, as all 35 of the developed markets tracked by MSCI were positive for the first 3 months of the year. And of the 40 developing markets tracked by MSCI, 29 of them were positive too. Index Returns Q12021 EUROPE +5.41% NORTH AMERICA +5.27% PACIFIC +1.72% WORLD +4.52% WORLD EX-USA +3.40% Source: MSCI. Past performance cannot guarantee future results #### Markets Surge On Despite a few spikes of volatility throughout the first quarter, U.S. equity markets continued their surge from the fourth quarter of 2020 and continued reaching new highs. Yes, there were some negative economic data points along the way and yes, the rise in interest rates is generally a headwind for stocks, but the markets reacted more towards additional stimulus as well as faster vaccine rollouts. The total amount of stimulus and government spending remains to be seen, but just adding the $900 billion package signed before President Biden took office to the most recent $1.9 trillion package Biden signed, gets us to almost 15% of our GDP. Then layer on a proposed $2+ trillion infrastructure spending along with another stimulus package (details yet to be released) and it is clear that Wall Street is reacting favorably – for now – to all this government spending. The downside – which markets are seemingly ignoring (also for now) – is that taxes are likely to go up. In fact, some are pointing to the recommendation that in order to fund the infrastructure spending plan, the corporate tax rate would be hiked to 28% from 21%, which could cost 9% of next year’s S&P 500 earnings. #### Remember the GameStop Saga? It might seem like a far-away memory, but it was only at the beginning of the quarter that investors began talking about GameStop. It was only last December that the brick-and-mortar company that was operating in a digital world during a pandemic announced that it was closing 1,000 stores (after closing 783 over the previous two years). Sure, GameStop executives were suggesting that the worst was over, especially after trimming losses to about $19 million in 2020, which was much better than the losses of $83 million in 2019 and $485 million in 2018. But Wall Street wasn’t buying it – especially two Wall Street hedge funds named Citron Research and Melvin Capital – as both took short positions expecting GameStop’s stock to fall. Those two hedge funds (as well as others who shorted GameStop) were simply investing – betting – against GameStop’s success. But internet chatter from a Reddit community called WallStreetBets intentionally tried to push the stock price higher. Some were trying to fight back against the system, in a nod to the Occupy Wall Street Movement, while others were simply trying to make money by collectively taking on the big hedge funds. Whatever the intent, the small investors of the WallStreetBets Reddit-community did manage to fuel more buying interest, which pushed the price higher, which fueled more speculative buying, which pushed the price higher, and on and on it went. The result: • GameStop opened the first quarter priced at about $17/share (a year earlier, it was under $5/share) • By the end of January it was trading in the mid-$300s • February saw the stock crater to about $50/share, where it hovered for most of the month before slowly trending back up • It ended the first quarter at just under $200/share • Institutional short-sellers lost tens of billions It really did feel like a modern-day David vs. Goliath and many outside of the investing world were suggesting that this would be the next Occupy Wall Street movement. You might remember that the Occupy Wall Street was a protest movement against economic inequality that began in September 2011 and gave rise to the slogan “We are the 99%.” Only time will tell. #### Housing Market Declines Late in the month, the National Association of Realtors reported that for the month of February, Existing Home Sales dropped 6.6% from January after two months of gains. The good news (if you are selling) is that sales are still 9.1% higher than last year and that existing-home prices are significantly higher than a year ago – even surpassing pre-pandemic levels. Other highlights from the NAR include: • The median existing-home price for all housing types in February was $313,000, up 15.8% from February 2020 ($270,400), as prices rose in every region. • February's national price jump marks 108 straight months of year-over-year gains. • As of the end of February, housing inventory remained at a record-low of 1.03 million units, down by 29.5% year-over-year – a record decline. • Properties typically remained on the market for 20 days in February, down from both 21 days in January and from 36 days in February 2020. • Seventy-four percent of the homes sold in February 2021 were on the market for less than a month. #### But First Time Home Buyers Declining According to the NAR, home affordability is weakening and this is unlikely to change given tight inventories. Further, if inventory remains tight, affordability will decline further if mortgage rates trend higher. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.81% in February, up from 2.74% in January. To underscore the fact that affordability was weakening, the NAR reported that: • First-time buyers were responsible for 31% of sales in February, down from 33% in January and from 32% in February 2020. • Individual investors or second-home buyers, who account for many cash sales, purchased 17% of homes in February, up from 15% in January and equal to the percentage from February 2020. • All-cash sales accounted for 22% of transactions in February, up from both 19% in January and from 20% in February 2020. #### Prices Up Everywhere Year-Over-Year While Existing Home Sales dropped in 3 of the 4 regions, all regions saw significant increases in median prices: • Existing-home sales in the Northeast fell 11.5%, but the median price was $356,000, up 20.5% from February 2020. • Sales in the Midwest dropped 14.4%, but the median price was $231,800, a 14.2% climb from February 2020. • Sales in the South decreased 6.1%, but the median price was $271,200, a 13.6% increase from a year ago. • Sales in the West rose 4.6% and the median price was $493,300, up 20.6% from February 2020. #### Hoping for a Good April Run? MarketWatch notes that the month of April has more often than not been a good month, with stocks posting positive numbers in 14 of the last 15 years. Further, April has been the best month for stocks over the past 20 years and the second-best month for stocks since 1950. That’s no April Fools. Sources: marketwatch.com ; census.gov ; nar.realtor ; bea.gov ; msci.com ; fidelity.com ; nasdaq.com ; wsj.com ; morningstar.com --- ## Global Market Commentary: Second Quarter 2021 URL: https://www.patriotinvestment.com/blog/global-market-commentary-second-quarter-2021/ #### Markets Perform Well in Second Quarter Global equity markets had a choppy second quarter, but when the final Wall Street-bell chimed on June 30 th , global markets had turned in solid performance numbers on their way to new record highs. For the second quarter of 2021: • The DJIA started the quarter at 33,153 and ended at 34,502 for a gain of 4.1%; • The S&P 500 started the quarter at 4,020 and ended at 4,298 for a gain of 6.9%; • NASDAQ started the quarter at 13,480 and ended at 14,504 for a gain of 7.6%; and • The Russell 2000 started the quarter at 2,254 and ended at 2,311 for a gain of added 2.5%. However, many are glossing over the numbers from the second quarter and are focusing on how the market performed for the first six months of the year – and those numbers are eye-popping, as: • The DJIA is up 12.9% YTD; • The S&P 500 is up 14.7% YTD, which is its best first half of the year since 1998 (which was the height of the dot.com bubble); • NASDAQ is up 12.6% YTD; and • The Russell 2000 is up 17.0% YTD. The themes that drove the markets in the second quarter were plentiful: with inflation worries, sooner-than-expected rate hike concerns, better-than-expected corporate earnings, rising consumer confidence, red-hot housing, rebounding economic data, and rising oil prices all competing for attention. Further, we saw that: • Volatility, as measured by the VIX, trended down in the second quarter, starting slightly over 17 and ending the month at 15.47. • West Texas Intermediate crude rose again in the second quarter, ending north of $75/barrel, for a three-month gain of $15/barrel, a level not seen since 2018. Further, WTI has climbed more than 50% in six months, having started 2021 at $48/barrel. #### Market Performance Around the World Investors were thrilled with the quarterly performance around the world, as 34 of the 35 developed markets tracked by MSCI were positive for the second quarter of the year. Of the 40 developing markets tracked by MSCI, 34 of them were positive too. Index Returns 2Q2021 MSCI EAFE - INTERNATIONAL +4.37% MSCI EURO - EUROPE +5.51% MSCI NORTH AMERICA +8.58% MSCI PACIFIC +0.95% Source: MSCI. Past performance cannot guarantee future results So far, the first six months of the year has witnessed a steady market rise, but there were also some rather odd moves that had everyone buzzing: • Bitcoin exploded and doubled to $60k and then cratered back down to $30k. • Lumber prices went crazy and then came back down to earth, dropping 40% in the month of June alone to end the second quarter about where they started the year. • Meme stocks like GameStop and AMC took off again. AMC started the year at about $2/share and skyrocketed to over $54/share while GameStop went from about $17 to over $200. Despite a few spikes of volatility throughout the second quarter, U.S. equity markets continued their surge from the last two quarters and continued reaching new highs. Yes, there were some negative economic data points along the way and yes, the rise in interest rates is generally a headwind for stocks, but the markets kept marching forward as companies reported better than expected earnings and positive earnings surprises. #### Sector Performance Rotated in 2Q2021 The overall trend for sector performance for each of the first six months and the first and second quarters was good, but the performance leaders and laggards did rotate throughout, suggesting that a sector rotation might be underway. For perspective, recall that this time last year, the second quarter of 2020 ended with every single one of the S&P 500 sectors painted green. Further: • Q32020 ended with 10 of the 11 positive; • Q42020 ended with all 11 sectors positive; and • Q12021 ended with all 11 sectors positive. For the second quarter of 2021, 10 of the 11 sectors were painted green. Here are the sector returns for the shorter time periods: S&P 500 Sector 1Q2021      2Q2021 Information Technology +2.04% +11.90% Energy +28.22% +8.24% Health Care +3.92% +7.15% Real Estate +9.76% +11.22% Consumer Staples +1.25% +1.51% Consumer Discretionary +2.93% +8.47% Industrials +11.68% +4.17% Financials +16.88% +7.73% Materials +9.00% +3.64 Communication Services +8.87% +10.79% Utilities +3.56% -1.41% Source: FMR Reviewing the sector returns for just the second quarter of 2021, we saw that: • (mentioned above)The Energy sector turned in another stellar quarter, driven by the price of oil jumping another $15; • The Financials sector had another wonderful quarter, helped by the Federal Reserve’s stance of keeping rates low through at least 2023; and • The differences between the best performing and worst performing sectors in the second quarter narrowed relative to the first quarter, as the Energy sector’s return was about 12x greater than the Utilities sector’s quarterly return. Those ranges are the epitome of sector rotation. The numbers empirically identify the importance of asset allocation and diversification for all investors. #### Red Hot Housing Market Late in the month, the National Association of Realtors announced that existing-home sales decreased for a fourth straight month in May. Further, only one major U.S. region recorded a month-over-month increase, while the other three regions saw sales decline. However, each of the four areas again registered double-digit year-over-year gains, which is not surprising given the state of the real estate market and the economy in general this time last year. According to the release from the NAR, total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – dropped 0.9% from April to an annual rate of 5.80 million in May. But sales in total were up a stunning 44.6% from just one year ago (May 2020). The NAR further reported that: • The median existing-home price for all housing types in May was $350,300, up 23.6% from May 2020 ($283,500), as every region registered price increases. • This is a record high and marks 111 straight months of year-over-year gains since March 2012. • Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April's inventory and down 20.6% from one year ago (1.55 million). • Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April's 2.4-month supply but down from 4.6-months in May 2020. • Properties typically remained on the market for 17 days in May, unchanged from April and down from 26 days in May 2020. • Eighty-nine percent of the homes sold in May 2021 were on the market for less than a month. ####   Hoping for a Good Second Half Optimistic investors are pointing out that the S&P 500 has only generated better first-6-month numbers 16 times since 1950. Further, when the market has returned at least 12.5% in the first six months, its average return for the next six months was 9.7% – and it was positive in 12 out of those 16 years. Although past performance is never a guarantee of future results, we can still hope that the trend continues. --- ## 4th Quarter 2020 Market Commentary URL: https://www.patriotinvestment.com/blog/q4-2020-market-commentary/ #### Markets Reach New Highs in 2020 Global equity markets pulled back in October, turned in some astonishing returns in November, performed admirably for the month of December and closed out the fourth quarter of 2020 with new record highs. While many are happy to see 2020 in the rear-view mirror, the performance for the last quarter and for all of 2020 for the major U.S. indices was nothing short of impressive, especially given the headwinds of COVID-19 and the drama surrounding the presidential election. For Q4 and the 2020 calendar year: • The DJIA added 10.2% in Q4 and rose 7.3% in 2020; • The S&P 500 added 11.7% in Q4 and rose 16.3% in 2020; and • NASDAQ added 15.7% in Q4 and rose 43.6% in 2020. The themes that drove the markets in the fourth quarter were positive economic data, talk of another stimulus package and the first COVID vaccines being distributed around the world. Yes, there was plenty of election noise throughout the quarter, but in many respects, the markets seemed to ignore the political chatter. For most of the quarter, Wall Street, and Main Street did hold their collective breath until President Trump signed the $900 billion COVID-relief bill, which will provide much-needed relief to small businesses and direct payments to individuals and families. And while there was hope that those payments might be increased to $2,000, those hopes were put on hold until at least 2021. • Volatility, as measured by the VIX, trended modestly lower from 26 to 23 for the quarter, although the end of October saw a significant spike that pushed the VIX north of 40. • West Texas Intermediate crude trended up for the quarter, adding about $10/barrel over the month to close out 2020 at $48.52/barrel. #### Market Performance Around the World Investors were thrilled with the quarterly performance around the world, as all 35 of the developed markets tracked by MSCI (Morgan Stanley Capital International) were positive for the last 3 months of the year. And of the 40 developing markets tracked by MSCI, all of them were positive for the last quarter too. Index Returns 4Q2020 EUROPE +17.05% NORTH AMERICA +12.71% WORLD +13.63% WORLD EX-USA +15.52% Source: MSCI. Past performance cannot guarantee future results #### Uncertainty was Rampant in 4Q2020 As the fourth quarter wrapped up, investors were thankful that the two dominating news events of 2020 also drew to a close, as the outcome of the presidential election and more certainty with respect to a COVID-19 vaccine came into focus. Nevertheless, there was a lot of economic data that painted a conflicting picture and to many, the disconnect between the stock market and the current economy was disconcerting at times and difficult to reconcile. Yes, the stock market looks forward and Wall Street will be quick to suggest that current valuations, lofty stock prices and new stock market records are justified, but Main Street is having a harder time digesting that theory. Especially since it appeared that for every positive economic data point, another negative one (if not two) was announced. #### GDP Sets a New Record Three days before Christmas, the U.S. Department of Commerce released the “third” estimate of real gross domestic product for the third quarter and the “third” estimate was revised upwards from 33.1% to 33.4%. This is, of course, on the heels of the 31.4% decrease in the second quarter. #### Inflation Appears in Check The U.S. Department of Labor reported on December 10 th that the Consumer Price Index for All Urban Consumers increased 0.2% in November. From the BLS press release: “Over the last 12 months, the all items index increased 1.2 percent before seasonal adjustment. The seasonally adjusted increase in the all items index was broad-based, with no component accounting for more than a quarter of the increase. The food index declined in November, as a decrease in the food at home index more than offset a small increase in the food away from home index. The index for energy rose in November, as increases in indexes for natural gas and electricity more than offset a decline in the index for gasoline.” #### A Year In Review Despite all the turmoil caused by COVID-19, the markets had a tremendous year. With vaccines being dolled out as we write this, and the 2020 election behind us, we, at Patriot, are optimistic looking forward. If you’d like to discuss the year that’s passed and get an update on your financial plan (or start one, if you haven’t already), just reach out and contact us . --- ## 2Q2020 Market Commentary URL: https://www.patriotinvestment.com/blog/2q2020-market-commentary/ #### A Record-Setting Quarter Global equity markets continued their rebound from the dismal first quarter of 2020 and by the time the second quarter closed, the major U.S. indices had marched to record quarterly gains, including: • The DJIA recording its best quarter since the first quarter of 1987, with a gain of 17.8% • The S&P 500 recording its best quarter since the fourth quarter of 1998, leaping 19.9% • NASDAQ recording its best quarter since the fourth quarter of 1999, soaring 30.6% It should be noted that the second quarter rally came after a dismal first quarter and the contrast between the two quarters is dramatic, as the first quarter saw: • The DJIA turn in its worst quarter in history with a 23.2% drop • The S&P 500 turn in its worst quarter since the 2008 with a 20% drop • NASDAQ turn in its worst quarter since 2018, with a 14.2% drop Despite the barrage of negative economic news in the second quarter, Wall Street was optimistic as the economy gradually reopened for business. • Volatility, as measured by the VIX, trended slightly up during June, but in the second quarter the trend was downward, as it started April at about 57 and ended June at 31 • West Texas Intermediate Crude also trended up during the second quarter, despite a significant drop in early April. At the beginning of the quarter oil was trading just barely above $20/barrel, but by the end of June it was just shy of $40/barrel #### Market Performance Around the World After devastating losses to markets around the world in March, big rebounds in April, and modest gains in May, June brought gains for most global investors. In fact, of the 37 developed markets tracked by MSCI, most were positive in June, with a few exceptions: Norway, Japan and Israel. Index Returns Q2 2020 US S&P 500 19.9% MSCI Emerging Markets 18.2% MSCI Asia ex-Japan 16.8% MSCI Europe ex-UK 15.1% Japan TOPIX 11.3% UK FTSE All-Share 10.2% *Source: MSCI. Past performance cannot guarantee future results For the second quarter, however, every single one of the 35 MSCI regional indices and 37 country indices were positive. And the best regional performer for the quarter went to the MSCI North America Index – which includes large- and mid-cap stocks from the U.S. and Canada. Australia and New Zealand took the honors for best country performance for the quarter, with returns of 28.61% and 27.97%, respectively. #### Wall Street Climbed a Wall of Worry While the first quarter of 2020 was marked with unprecedented and immediate stoppage of economic activity as businesses shut down and people stayed at home, every month of the second quarter of 2020 saw businesses slowly start to reopen, albeit not as fast as they shut down. Accordingly, the second quarter was really a tale of two data sets, as the country was besieged by negative (and backwards-facing) economic data while Wall Street marched forward to record-setting performance numbers. Take just the last two weeks in the quarter, for example. It seemed that for every piece of negative economic news, investors received some surprising economic news as well, including: • On June 16 th , the Census Bureau announced that the advance estimates of U.S. retail and food services sales for May 2020 increased 17.7% from the previous month • Retail trade sales were up 16.8% from April 2020 and non-store retailers were up 30.8% from May 2019 • On June 17 th , the U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers declined 0.1% in May on a seasonally adjusted basis, the first time in over 60 years that core CPI had dropped for three consecutive months • On June 22 nd , the National Association of Realtors announced that existing-home sales dropped 9.7% month over month in May, which was the third consecutive month of declines • Also on June 22 nd , the NAR reported that existing-home sales fell a staggering 26.6% from a year ago as of the end of May • On June 29 th , the NAR published its Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, and it rose 44.3% to 99.6 in May, chronicling the highest month-over-month gain in the index since National Association of Realtors started this series in January 2001 Asset Class Performance The first quarter of 2020 was difficult for almost all investors and the second quarter was almost the complete opposite, with most of the major asset classes and styles turning in very respectable – and most importantly green – numbers across the board. Index Returns 2019 YTD Q2 2020 Global REITS 24.4% -22.6% 10.8% DM Equities 28.4% -5.5% 19.5% Commodities 7.7% -19.4% 5.1% Global Agg 6.8% 3.0% 3.3% Small Cap 26.8% -12.7% 24.7% MSCI EM 18.9% -9.7% 18.2% Source: Barclays, Bloomberg, FactSet, FTSE, MSCI, J.P. Morgan Asset Management. DM Equities: MSCI World; REITs: FTSE NAREIT All REITs; Cmdty: Bloomberg UBS Commodity Index; Global Agg: Barclays Global Aggregate; Growth: MSCI World Growth; Value: MSCI World Value; Small cap: MSCI World Small Cap. All indices are total return in local currency.  Past performance is not a reliable indicator of current and future results. #### Keep the Record Numbers in Perspective When the final bell rang at 4 pm EST on Tuesday, June 30 th , Wall Street rejoiced in the fact that the major U.S. stock market indices had turned in three straight positive months, leading to record quarterly gains. And it was true, the major U.S. indices did turn in record quarterly gains, with the DJIA recording its best quarter since the first quarter of 1987; the S&P 500 recording its best quarter since the fourth quarter of 1998, and NASDAQ recording its best quarter since the fourth quarter of 1999. Within hours of markets closing the books on the second quarter, the media piled on too, with headlines like: • U.S. Stocks Finish Best Quarter in More Than 20 Years , Wall Street Journal, June 30 th at 4:59 pm EST • It’s official: This was the best quarter for stocks since 1998 , Associated Press, June 30 th at 5:47 pm EST • Dow notches best quarter since 1987 , USA Today, June 30 th at 6:41 pm EST While investors are no doubt thankful for the second quarter’s performance, it’s important to keep these “performance records” in perspective, however. If you would like to discuss current events or the implications for your portfolio, do not hesitate to contact us . --- ## Q3 2020 Market Commentary URL: https://www.patriotinvestment.com/blog/q3-2020-market-commentary/ #### A Very Solid Third Quarter  Global equity markets continued their rebound from earlier this year, despite struggling in the final month of the quarter. By the time the third quarter closed, investors saw that: • The DJIA ended the third quarter up 7.6% • The S&P 500 ended up 8.5% • NASDAQ ended up 11.5% for the quarter It should be noted that the positive third quarter came after what many will see as validation of that September Swoon theory – when the month of September doesn’t treat equities particularly well. In fact, this past September, we saw global equity markets reverse course, halting the five straight positive months enjoyed by U.S. equity markets as: • The DJIA finished September down 2.3% • The S&P 500 finished down 3.9% • NASDAQ finished September down 5.2% It seems as if the mostly positive economic news from August gave way to a mix of both negative and positive news during the third quarter, which might have contributed to the markets’ retreat during the final month. But despite September’s retreat, Wall Street was generally optimistic as the economy continued to gradually reopen for business. • Volatility, as measured by the VIX, trended down for most of the quarter, except for a spike in early September, as it started July at about 28 and ended September at 26 • West Texas Intermediate Crude trended sideways during the third quarter, after a significant drop in early April. In fact, the price difference for a barrel of oil from the beginning of the quarter to the end was only about 60 cents #### A Good Quarter Overall Among the S&P 500, 70% of stocks had gains in the third quarter. And of the 30 companies in the DJIA, 24 of the 30 were positive this quarter too. During the quarter, investors digested a lot of economic news and corporate earnings announcements and while there were a few surprises along the way, the markets did not react strongly one way or the other. Many on Wall Street might suggest, however, that the biggest news of the quarter was from the Federal Reserve. More specifically, the Fed announced a shift to an average inflation target, suggesting that it was willing to let inflation trend above its 2% target to “average” the periods of time where inflation was below 2%. The result is that rates are likely to remain low for quite some time and that in turn is generally good for equities – especially growth names. #### Worst GDP Decline in History On September 30 th , the Commerce Department reported that its “Third Estimate” of 2Q 2020 GDP improved marginally to a decline of 31.4%. But saying it improved marginally seems disingenuous on its face because this 30%+ decline is on the heels of the 5% decline in the first quarter. And whether the number is 31.4% or 32.9% (from the second estimate), it’s still the worst quarterly decline in history – by a long shot. #### Housing Stays Hot Toward the end of the quarter, the National Association of Realtors released Existing Home Sales Data for the month of August and not only was August the third consecutive month of positive sales gains, but all four major regions of the country experienced month-over-month and year-over-year gains.  Consider these eye-popping stats: • Total existing-home sales rose 2.4% in August. • Sales were up 10.5% from a year ago. • August’s national price increase marks 102 straight months of year-over-year gains. • Unsold inventory sits at a 3-month supply. • Properties typically remained on the market for 22 days in August. ####   Skyrocketing Home Prices in August 2020 Consider these eye-popping price increases: • The median existing-home price for all housing types in August was $310,600, up 11.4% from August 2019 ($278,800), as prices rose in every region. • Existing-home sales in the Northeast jumped 13.8% in August and the median price of $349,500 was a 10.4% increase from a year ago. • Existing-home sales in the Midwest increased 9.3% from a year ago and the median price of $246,300 was a 10.7% increase from a year ago. • Existing-home sales in the South rose 13.0% from a year ago and the median price of $269,200 was a 12.3% increase from August 2019. • Existing-home sales in the West leapt 9.6% from a year ago and the median home price of $456,100 was a 11.8% jump from August 2019. #### Retail Sales Beyond Pre-COVID Levels Mid-way through September, the Census Bureau issued a press release that can be summarized as follows: retail sales have been leading the 2020 recovery and since June have exceeded February’s pre-COVID levels. Specifically: • Advance estimates of U.S. retail and food services sales for August 2020 were 2.6% above August 2019. • Total sales for the June 2020 through August 2020 period were up 2.4% from the same period a year ago. • Non-store retailers were up 22.4% from August 2019, while clothing and clothing accessories stores were down 20.4% from last year. #### Construction Spending Stays Strong On September 3 rd , it was reported that: • Total construction spending during July 2020 was 0.1% above June’s spending and 0.1% below July 2019’s spending • During the first seven months of this year, construction spending amounted to $792.6 billion, 4.0% above the same period in 2019 #### Asset Class & Style Performance The first quarter of 2020 was difficult for almost all investors, the second quarter was almost the complete opposite, and the third quarter was good for most investors as all the major asset classes and styles turned in very respectable – and most importantly green – numbers across the board. For the quarter, Growth continued their dominance over Value names and Emerging Markets turned in another very positive quarter. Interestingly, the gap between Growth and Value is shrinking, as Value outpaced Growth for the last month of the quarter. Global REITs continued to struggle and while the quarter was positive, the YTD is still very red. Index Returns 2019 YTD   Q3 2020 Global REITS 24.4% -21.3% 1.7% Value 22.7% -14.1% 4.1% DM Equities 28.4% 2.1% 8.1% Growth 34.1% 19.2% 11.8% Commodities 7.7% -12.1% 9.1% Global Agg 6.8% 5.7% 2.7% Small Cap 26.8% -6.1% 7.6% MSCI EM 18.9% -0.9% 9.7% Source: Barclays, Bloomberg, FactSet, FTSE, MSCI, J.P. Morgan Asset Management. DM Equities: MSCI World; REITs: FTSE NAREIT All REITs; Cmdty: Bloomberg UBS Commodity Index; Global Agg: Barclays Global Aggregate; Growth: MSCI World Growth; Value: MSCI World Value; Small cap: MSCI World Small Cap. All indices are total return in local currency. Past performance is not a reliable indicator of current and future results. Sector Performance The overall trend for sector performance since the end of the first quarter has been mixed, as performance leaders and laggards have rotated all year. For example, at the end of the first quarter, every single one of the 11 S&P 500 sectors turned in negative numbers whereas the end of the second quarter saw all 11 sectors turn in positive numbers. Reviewing the sector returns for the third quarter and YTD through September 30, 2020, we saw that: • 10 of the 11 S&P 500 sectors were positive for the third quarter of 2020 • The Energy sector was the worst performer for the third quarter as it lost almost 20% • The differences between the best performing and worst performing sectors in Q3 were once again dramatic, with 10 sectors outpacing the Energy sector dramatically • On a YTD basis, the differences between the best and worst performing sectors is just as dramatic, with the Information Technology sector up over 27% YTD and the Energy sector down a whopping 50%+ • Speaking of Energy, this sector has been on a wild ride in 2020 as it gained more than 30% in the second quarter, lost almost 20% in the third quarter and is still down over 50% YTD SECTORS YTD   3Q2020Y Healthcare 3.60% 7.32% Consumer Discretionary 22.45% 16.85% Industrials -5.37% 12.72% Financials -21.73% 5.46% Information Technology 27.52% 13.80% Materials 3.67% 14.34% Energy -50.16% -19.12% Consumer Staples 1.88% 10.50% Communications Services 7.62% 10.12% Utilities -8.07% 5.62% Real Estate -8.89% 2.79% This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results. Source: Standard and Poor’s --- ## 2019 Market Review URL: https://www.patriotinvestment.com/blog/2019-market-review/ #### 2019 Was a Fantastic Year for Investors Stock markets in the U.S. and around the globe turned in a fantastic 2019, driven by U.S. equities, specifically large-cap U.S. equities. Along the way, 2019 brought plenty of records, including: • Record Highs . As the S&P 500 climbed consistently throughout the year, it also recorded 34 new record highs and turned in the best year in more than half a decade. • Longest Expansion on Record . Earlier this summer, our current economic expansion passed the one from the 1990s to officially become the longest on record – more than 125 months and counting. Major markets around the world put up some impressive numbers in 2019, with the MSCI EAFE Index just shy of a 20% return, the DJIA north of 20%, and both the S&P 500 and NASDAQ up more than 30%. Interestingly enough, most markets traded sideways from the April to September time frame but rose significantly to close out the year – a marked departure from the end of 2018. The equity and bond markets had a lot to digest in 2019: solid corporate earnings, continued historically low unemployment numbers, rising wages, and no significant escalation in trade wars between the U.S. and China, the U.S. and Europe, or the U.S. and Mexico/Canada. There was one huge theme influencing the upward momentum more than others: shifting global central banks’ policy (namely the Federal Reserve and the European Central Bank) with respect to further monetary stimulus (i.e., cuts to short-term rates). And while the ongoing trade saga between the U.S. and China was never far from front-page news, the pivot from the Federal Reserve was much more impactful. #### Sector Returns Through End of 2019 A rising tide lifts all boats and that’s certainly true for 2019 as every single one of the eleven S&P 500 sectors rose. But some boats rose a lot higher than others and most sectors underperformed the broad-based S&P 500 index, with 8 of the 11 failing to keep pace with the Index. As it did for most of the year, the Information Technology sector was the run-away leader with a whopping 50%+ return on the year whereas the Energy sector turned around in the fourth quarter and scraped out an 11%+ gain to finish at the bottom of the pack. The Financial Services sector outpaced the S&P 500, fueled by a very accommodative Federal Reserve whereas uncertainty caused the Health Care sector to drift lower throughout the year and underperform the S&P 500 by a third. Here are the sector returns through the end of December 31, 2019: S&P 500 SECTORS 2019 Health Care 20.8% Consumer Discretionary 27.9% Industrials 29.3% Financials 32.1% Information Technology 50.3% Materials 24.6% Energy 11.8% Consumer Staples 27.6% Communication Services 32.7% Utilities 26.4% Real Estate 29.0% S&P 500 Index 31.5% This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results. Source: Standard and Poor’s #### Markets Around the World Performed Well Strong performance in 2019 was not confined to the U.S., however, as most global markets also turned in a positive year. Investors saw equities in developed and emerging markets rally. Further, small caps underperformed their large-cap counterparts most of the year. 2018 2019 Barclays Global Aggregate -1.2% 6.8% FTSE NAREIT Global Real Estate Investment Trusts -4.1% 24.4% MSCI World -6.9% 28.4% MSCI Emerging Markets -9.7% 18.9% Bloomberg Commodity Index -11.2% 7.7% MSCI World Small Cap -12.2% 26.8% Source: Bloomberg Barclays, FTSE, MSCI, Refinitiv Datastream, J.P. Morgan Asset Management. All indices are total return in US dollars. Data as of December 31, 2019. Sure, NASDAQ and the S&P 500 turned in impressive 2019 numbers, returning 36% and 30%, respectively, but equities in developed markets around the world (represented by the MSCI World Index) are up over 28% in 2019 too. ####   The Federal Reserve Pivoted in 2019 The dominant market news of the year – the pivot from the Federal Reserve and other global central banks – fueled equity markets and fixed-income markets alike. The Federal Reserve, once the institution that rarely spoke, found itself in the news a lot this year. • In July, the Federal Reserve cut interest rates for the first time since 2008. • In September, the Federal Reserve cut interest rates for the second time. • In mid-October, the Fed announced its intent to buy short-term Treasury debt at an initial pace of $60 billion a month. • At the end of October, the Fed cut interest rates for the third time. And as if to put an exclamation point on the global central banks’ rate cutting theme, at the end of the year, the People’s Bank of China announced it would cut the reserve requirement ratio by 50 basis points, effective January 6 th . The announcement is the eighth time that the People’s Bank of China has cut rates since early 2018. #### What a Decade With all the stock market records broken in 2019, it’s easy to forget the longer-term view, but we’re reminded of that as we enter a new decade. With a cumulative return of over 250% over the past 10 years, the past decade's stock market has been very strong, as measured by the S&P 500, but has actually ranked fourth among the past seven decades. While most of us were not investing during the 50s, many of us remember the returns of the 80s and 90s and marveling at the cumulative 400% returns of those decades. But the past 10 years were still remarkable, highlighted by the fact that it was the only decade on record that did not register a recession and just the second decade that did not experience a bear market (remember the 90s?). Decade Stock Market Return    (S&P 500) 1950s 481.5% 1960s 112.2% 1970s 76.5% 1980s 402.2% 1990s 432.8% 2000s -9.1% 2010s 256.7% Source: Morningstar #### What Can We Expect in 2020? Some are predicting the upward trend to continue into 2020 whereas others are predicting that the markets will retreat. No matter your outlook, the direction of the markets will be influenced by the same long-term and cyclical trends that have influenced the markets since the beginning – corporate earnings, interest rates, and various macroeconomic data, including employment and wage growth numbers. And trying to predict the market performance for the next decade is even more foolish. But one thing we know for sure is this: Past performance is no guarantee of future results. Ever. At Patriot, we focus on what we can control through our disciplined investment approach and financial planning. --- ## Quarterly Market Commentary - 1st Quarter 2020 URL: https://www.patriotinvestment.com/blog/quarterly-market-commentary-first-quarter-2020/ #### Markets Close 1st Quarter of 2020 by Rewriting the Record Books The first quarter of 2020 is over and investors are glad that it’s in the rear-view mirror. Remember when your parents said, “if you can’t say anything nice, don’t say anything at all?” It was that kind of quarter. Here is a quick snapshot: • The DJIA lost more than 23% for the quarter, its worst since the fourth quarter of 1987 • It was the worst first quarter for the DJIA in history • The S&P 500 lost 20% for the first quarter, its worst since the fourth quarter of 2008 • It was the worst first quarter for the S&P 500 in history #### From Market Peaks to Bear Markets While investors are bombarded by negative numbers and negative headlines, it is surreal to consider that six weeks into the first quarter, the major U.S. indices were hitting new all-time highs. What a difference the final six weeks made. Index Returns Close 1Q2020 DJIA 22,915 -23.2% S&P 500 2,585 -20.0% NASDAQ 7,695 - 14.18% MSCI EAFE 1,560 -23.43% Bond Index* 2,297.47 3.26% 10-Yr Treasury Yield 0.70% - 1.18% *Source: Bonds represented by the Bloomberg Barclays US Aggregate Bond TR USD. This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results It seems tone-deaf to even mention, but the fact is that: • The DJIA hit its all-time high on Wednesday, February 12 th when it was within a whisper of cresting the 30,000-point level • The S&P 500 hit its all-time high on Wednesday, February 19 th • NASDAQ hit its all-time high on Wednesday, February 19 th #### The Coronavirus Bear Mauled the Fat Bull The news events that dominated the first quarter can be summed up in one word: coronavirus. During the first quarter, investors saw: • The coronavirus, which was first identified last year in Wuhan, China, shut down businesses, schools, and governments around the globe, pushing global economies and global markets into bear market territory • Congress and the White House agreed to a huge $2 trillion package that includes direct payments to families, including $1,200 per adult and $500 per child, support for small businesses, and expanded unemployment benefits • As of the end of the quarter, the Federal government stimulus package exceeded $6 trillion and more may be on the way • Within a 12 day-period, the Federal Reserve announced two emergency rate cuts, pushing its target interest rate to near zero • The price of WTI Crude Oil started the quarter at $61.68/barrel and ended the quarter at $20.09/barrel • The Department of Labor reported that the initial jobless claims came in at 3.3 million the week before the quarter ended – the highest level of initial claims in history • Volatility, as measured by the CBOE Volatility Index, skyrocketed and the month of March alone saw more volatility than ever recorded in history, as the S&P 500 averaged a daily gain/loss of more than 4.8%, according to Bespoke Investment Group • The yield on the benchmark 10-year Treasury note fell below 1% for the first time in history and has stayed below 1% since ####   Asset Class & Style Performance The first quarter of 2020 was difficult for almost all investors, regardless of asset class and style. The first quarter saw everything down as there was a huge change in performance for virtually every asset class, except maybe the bond market. Unsurprisingly, large-caps outperformed the smaller-cap names. Index Returns 2019 1Q2020 Global REITS 24.4% -30.2% DM Equities 28.4% -20.9% Commodities 7.7% -23.3% Global Agg 6.8% -0.3% Small Cap 26.8% -30.0% MSCI EM 18.9% -23.6% Source: Barclays, Bloomberg, FactSet, FTSE, MSCI, J.P. Morgan Asset Management. DM Equities: MSCI World; REITs: FTSE NAREIT All REITs; Cmdty: Bloomberg UBS Commodity Index; Global Agg: Barclays Global Aggregate; Growth: MSCI World Growth; Value: MSCI World Value; Small cap: MSCI World Small Cap. All indices are total return in local currency. Past performance is not a reliable indicator of current and future results. #### Oil Prices Plummeted Contributing to the March 2020 stock sell-off was the tumbling cost of oil. The price of Brent Crude, the international standard, plummeted by almost 25% over the weekend of March 7 th and 8 th alone, which was on top of a more than 10% drop the previous day. On Monday, March 9 th , the price of oil was about $34/barrel, its lowest level since 2016. Oil ended the quarter just north of $20/barrel. Collapsing oil prices helped drive the U.S. dollar higher, making U.S. exports much less competitive in the world market. This is problematic because approximately 50% of the Standard & Poor’s 500 revenues come from international markets. If that was not bad enough, falling oil prices hurt U.S. domestic oil production severely, with the U.S. government stepping in as a buyer of last resort. But faced with lower prices, oil drillers are shutting down operations and laying off workers. Further, falling oil prices helped push the 10-year Treasury rates to new all-times lows, as interest rates are closely tied to inflation/deflation rates. The 10-year note fell below its historical low of less than 1% and ended the quarter at 0.70%. At the beginning of the quarter, the 10-year was yielding 1.86%. #### The Federal Reserve Keeps Trying In dramatic and emergency actions to support the U.S. economy during the coronavirus pandemic, the Federal Reserve announced it would cut its target interest rate to near zero. And it announced its second rate cut on a Sunday no less. The unexpected and faster-than-expected rate cut was on the heels of the Fed’s emergency 50 basis points rate cut just 12 days earlier – and that cut was the first time since October 2008 that our central bank decided to go ahead with a cut in between scheduled policy meetings. Further, the Fed pledged its support to an aggressive quantitative easing program, suggesting that there was no limit on its purchases of Treasuries and agency mortgage-backed securities as well as purchasing investment-grade corporate bonds. The Fed also announced it would help maintain the flow of credit to municipalities around the country and establish a lending program for small businesses. On top of all of that, the Fed also brokered a deal with other global central banks to lower their rates on currency swaps to bring normalcy to markets. The other central banks include the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank. #### We Remain Optimistic With all the bad news and red numbers for the first quarter, investors the world over can use some good news. Here is what was reported by MarketWatch the day after the first quarter ended. “All that said, the prospects over the longer term after such declines leaves cause for hope. After the Dow has produced a quarter as ugly as this one, the blue-chip index returns 11.88% and 8.49% in the following two quarters, according to Dow Jones Market Data. In such a year, the Dow returns 22.75% on average. There are similar positive trends for the other two main benchmarks. Here’s how the stock benchmarks perform after a quarter as bad as the one Wall Street is experiencing now: INDEX 1 Quarter % Change 2-Quarter Period % Change 1-Year Out % Change DJIA 4.01% 8.40% 22.49% S&P 500 0.57% 6.88% 26.64% Nasdaq 4.89% 20.20% 8.62% Source: : Dow Jones Market Data  Here’s how the indexes fare after a month as bad as the one in March, on average, with the Dow down 12.5% in March so far, the S&P 500 off more than 11% and the Nasdaq down 9.5%, representing the worst monthly drops for the benchmarks since 2008: INDEX 1-Month 2-Month YTD DJIA 0.05% 1.77% 5.69% S&P 500 -0.15% 2.14% 8.72% Nasdaq -0.47% 2.53% 8.35% Source: : Dow Jones Market Data  #### One Final Thought from Warren Buffett On October 9, 2007, the DJIA closed at 14,164 points. By March 5, 2009, it had dropped more than 50% to 6,594. In October 2008 – in the middle of the Great Recession of 2008 – Warren Buffett wrote an editorial in The New York Times . Here is what he wrote: "In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.” Like Buffett in 2008, we at Patriot remain optimistic about the long-term health of capitalism, our economy, and the financial markets. --- ## Patriot Named to 2019 FT 300 For Top RIAs URL: https://www.patriotinvestment.com/blog/patriot-2019-financial-times-300/ Patriot Investment Management Group is pleased to announce that we have been named in the 2019 edition of the Financial Times 300 Top Registered Investment Advisers. The list recognizes the top 300 independent Registered Investment Adviser (RIA) firms in the nation. The criteria for selection include: assets under management (AUM), AUM growth rate, years in existence, industry certifications of key employees, SEC compliance record, and online accessibility. We are honored to be selected and want to especially thank our team and our clients who make everyday a pleasure. You can check out the whole Financial Times 300 list and article here: FT 300 list: the top US registered investment advisers in 2019 --- ## 2019 Q3 Market Commentary URL: https://www.patriotinvestment.com/blog/2019-q3-markets-commentary/ #### Markets Rise Modestly in the Third Quarter of 2019 as the Fed Cuts Rates and China Saga Continues U.S. stock market indices increased modestly in the third quarter, propelling the S&P 500 and the DJIA to their best three-quarter starts to the year since 1997 – all while further extending what is the longest of all bull markets on record. The broader S&P 500 enters the final three months of the year with a gain of 20.55% – its best performance in over two decades – as the third quarter’s return of 1.70% padded its yearly return. The S&P 500 is just a hair shy of its all-time high reached on July 26 th . However, if you look at the performance over the past year, it has moved just 4.25%, mostly as a result of the selloff in stocks toward the end of 2018. But stocks were not the only good performer as there was a brief flight to quality causing a rally in bonds and some of the defensive sectors during the third quarter too. Index Returns Close 3Q19 DJIA 26,901 1.83% S&P 500 2,977 1.70% MSCI EAFE 1,889 -1.07% Bond Index* 2,210 2.27% 10-Yr Treasury Yield 1.67% -1.69% *Source: Bonds represented by the Bloomberg Barclays US Aggregate Bond TR USD. This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results Interestingly, the same news events that dominated the second quarter continued to dominate the third quarter, but there were some twists. Once again, there were two main themes that kept influencing the markets: hopes of a trade truce between the U.S. and China and a decided shift by the Federal Reserve with respect to short-term rates. During the third quarter, investors saw: • July 31 st : the Federal Reserve cut rates for the first time since 2008 • August 5 th : the DJIA suffered its worst trading day of the year • August 14 th : the 30-year Treasury yield hit a record low • September 16 th : Brent crude oil had its biggest one-day gain • September 18 th : the Federal Reserve cut rates for the second time this year • September 30 th : both the S&P 500 and DJIA posted their best three-quarter starts to the year since 1997 #### The Fed Signaled No 2019 Rate Moves, Then Cut Rates Two days before the second quarter ended, the Fed held the line on interest rates and formally suggested that no cuts were coming in 2019. Then, in July, the Fed cut rates for the first time since 2008 and then cut rates again in September. Yet, despite the Fed’s stance, the rate cuts did not exactly catch Wall Street by surprise, as the fed funds futures market pointed to a 100% chance of an easing of monetary policy for most of the month preceding the first rate-cut. #### Asset Class & Style Performance The third quarter saw a flight to quality and the value and defensive styles outperform. REITs occupy the top spot for the third quarter and YTD, but during the third quarter, investors saw value outperform growth and large caps outperform small caps. Index Returns 3Q2019 YTD REITS 7.73% 28.49% Developed Market Equities 1.7% 19.0% Global Aggregate Bonds 0.7% 6.3% Small Cap 0.3% 16.3% Emerging Market Equities - 1.9% 8.1% Source: Barclays, Bloomberg, FactSet, FTSE, MSCI, J.P. Morgan Asset Management. DM Equities: MSCI World; REITs: FTSE NAREIT All REITs; Global Agg: Barclays Global Aggregate; Small cap: MSCI World Small Cap. All indices are total return in local currency. Past performance is not a reliable indicator of current and future results. #### The U.S. and China The investing world continued to feel the tensions between the U.S. and China throughout the quarter, as it has since the summer of 2018. Traders were bombarded with news about the U.S. and China trade dispute, and the news was as clear as mud. For example: • Investors cheered Treasury Secretary Steven Mnuchin’s announcement that trade talks with China were set to resume in early October and when China announced new waivers for imports of U.S. soybeans. • Within 24 hours, however, President Trump told the United Nations of China’s “theft of intellectual property and also trade secrets on a grand scale” while pledging that he would “not accept a bad deal.” • Then within 24 hours after that, President Trump told reporters that a truce with China might happen “sooner than you think.” Then 48 hours later, traders grimaced when news trickled out that the White House was considering restricting U.S. investment in China and forcing U.S. exchanges to delist shares of Chinese companies. Not surprisingly, shares in many Chinese companies dropped sharply Sector Performance For the third quarter, 8 of the 11 S&P 500 sectors were painted green, as again the more defensive sectors – namely Real Estate and Utilities – outperformed. More impressive, however, is the fact that year-to-date, 7 of 11 sectors outperformed the S&P 500’s YTD return of 20.55%. Here are the sector returns for shorter time periods through the end of September 30, 2019: Sectors 3-Month YTD Healthcare - 2.37% 5.83% Consumer Discretionary 0.57% 21.58% Industrials 0.80% 22.55% Financials 1.85% 19.35% Information Technology 3.24% 31.11% Materials - 0.58% 16.33% Energy - 7.34% 4.05% Consumer Staples 5.94% 22.61% Communications Services 2.10% 21.45% Utilities 8.74% 24.58% Real Estate 7.81% 29.65% S&P 500 Index 1.70% 20.55% This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results. Source: Standard and Poor’s #### House Democrats Move to Impeachment Inquiries House Democrats moved toward a formal impeachment inquiry of President Trump and most pundits expect that the investigations into President Trump are likely to continue through the 2020 elections. What's still uncertain is the impact that these investigations will have on the stock market. After rallying since Trump's election victory in November 2016, the S&P 500 Index has done pretty well, but it has stumbled at times too: • Ending 2016 up 11.96% • Zooming up 21.83% in 2017 • Dropping 4.38% in 2018 • Up more than 20% so far year-to-date at the end of the third-quarter in 2019. Although stocks have rewarded investors with healthy returns, investors seem more nervous that Trump will be impeached because not only will his pro-business agenda be stalled, but the chaos could send the markets into a tailspin. At least that’s the worry. And although no one has a crystal ball to tell us how the Trump investigations will end, investors would be smart to tune them out. Here are a few reasons why. #### Data Matters More than Tweets Economics and data matter way more than politics to the stock market. Trump's tweets and speeches get all the media attention, and while the market might seem to react a little bit at times, the reality is that boring economic numbers drive the markets one way or the other. And consider these numbers: • Unemployment is at 3.7%, one-tenth of a percent from the lowest level in over 50 years. • We have seen 107 consecutive months of job growth, the longest streak ever. • Wages have risen 3.2% this year, the strongest year in over a decade. • Inflation has run below the Fed's intended longer-term 2% target for most of this 10-year expansion and core inflation has averaged 2.1% so far this year. • Consumer spending came in much higher than expected with a 4.7% annualized growth number, the highest gain in 4 years. • #### So What Does It All Mean?  We can keep up with all the political news, track all the economic data, and follow the President on Twitter. Ultimately, no one can guess or guarantee which directions the markets will go. At Patriot, we are optimistic moving forward. At any point the markets can go up and they can go down. The more important thing to focus on is ensuring you have a well-diversified, appropriately allocated portfolio and a financial plan in place to weather any environment. So, if you would like to revisit one or both or discuss our thoughts on the markets, please contact us . --- ## Twenty-Five Years! URL: https://www.patriotinvestment.com/blog/patriot-twenty-five-years/ It doesn’t seem possible that so many years have passed since we started Patriot Investment Management!  It has truly been a wonderful journey.  When we began, our guiding philosophy was to always do the right thing for our clients.  That principle has served us well and we now manage client assets totaling over $937 million. First, I want to thank each and every one of our clients.  You have entrusted your hard-earned assets to us, and we take the job of helping you with your financial issues very, very seriously.  Without your belief and trust in us, we would not be where we are today. There are two terms that are especially important in adhering to our core values.  They are “fiduciary” and “fee-only”.  Fiduciary means that we are obligated to only do what is in the best interests of our clients.  In the process of analyzing new accounts, we have, unfortunately, witnessed how often others in our profession abandon this obligation.  We are proud to keep the fiduciary responsibility our highest priority. Fee-only means that we charge a fee for our service rather than receive commissions on financial products.  This means that, by design, our interests and motivations will naturally be aligned with those of our clients.  Our plan is to see our clients’ assets grow in a conservative, prudent manner rather than being compensated for making excessive trades or selling the latest complicated financial instruments. Patriot has always operated by using these methods and doing so has served our company and our clients well.  As a result, our business and place in the community have grown steadily. As I reflect on the past twenty-five years, I am reminded of the farmer who sees a turtle up on a fence post and figures that it probably didn’t get there by itself.  Along the way, there have been many people who have helped Patriot become the firm it is today. I’m so appreciative of our incredible family of staff and advisors.  They are the best in Knoxville and are incredibly competent and passionate about our profession.  We have seven Certified Financial Planner™ Professionals (CFP ®  Professionals), a Chartered Financial Analyst ® Professional (CFA ® ), a Certified Public Accountant (CPA) and multiple individuals with advanced degrees or who are currently working toward certifications. Even more significant than all of their accomplishments is the fact that our advisors and staff truly care about our clients.  That is the biggest thing that makes Patriot different! It has been so much fun to develop relationships with literally hundreds of our clients and so special to have our clients become our friends! We look forward to continuing to work with you and are most appreciative of your belief in Patriot. Sincerely, Brad --- ## 2019 Q1 Market Commentary URL: https://www.patriotinvestment.com/blog/2019-q1-markets/ #### Stocks Turn in Best Quarter in 10 Years Global markets ended the first quarter of 2019 with very positive returns and domestically, the DJIA, S&P 500, Russell 2000, and NASDAQ all rewarded investors with double digit gains. The S&P 500 recorded its strongest quarterly performance in a decade, rising over 13% and leaving the index 3% off its all-time high. NASDAQ did not perform as well as the DJIA or S&P 500 on the final week of the quarter, but its 16.5% gain for the first quarter was nothing shy of remarkable. There were a lot of positive developments in the quarter, but the ones that seemed to dominate headlines throughout and contribute to the markets positive moves were the Federal Reserve’s change with respect to rate hikes, mostly positive economic data points, solid corporate earnings results, and guarded optimism that a trade war with China will be averted. This is the best three-month start to a year in a decade and we are closing in on unchartered territory as far as bull markets go. For perspective, consider that since 1975 there have been 20 quarters with gains of 10% or more. And glass-always full optimists will tell you that over the year following those quarters, the stock market was up 80% of the time, with an average return of 11.8%. But as always, past performance is no guarantee of future results. #### Index Returns #### 1Q2019 DJIA 11.2% S&P 500 13.1% NASDAQ 16.5% RUSSELL 2000 – Small Cap 14.2% MSCI Europe 10.0% MSCI EAFE - International 8.5% #### Sector Performance For the quarter, all 11 S&P 500 sectors were painted green, with 7 of 11 in double-digits, pointing to broad-based market growth. Information Technology, Industrials, and Real Estate were the best performers while Health Care and Financials struggled. Only Materials and Financials were painted red for the 1-year period ended March 31 st . #### The Fed Signaled No More 2019 Hikes In mid-March, the Federal Reserve decided to leave the fed funds rate unchanged at 2.25-2.50%. While this was widely expected, the Fed also surprised some with its signal that it does not expect any more rate hikes for the rest of 2019, which was different from just a few months ago this past December when they signaled two 2019 rate hikes. The Fed also mentioned that it would end its balance sheet selloff by September 30 th . News of the Fed’s decision pushed the 10-year yields to 2.44%, which was their lowest level of 2019 by a healthy amount, until they dropped further to end the quarter. But it also pushed the difference between 3-month Treasuries and 10-year Treasuries to briefly invert, which has not happened since 2007. In fixed-income markets, interest rates continued to trend south, mostly due to the Fed’s pivot towards no more rate hikes in 2019: • The 2-yr yield and the 10-yr yield both declined on the last week of the quarter, ending at 2.27% and 2.41%, respectively • For the month of March, the 2-yr yield has dropped 23 basis points, while the 10-yr yield has dropped 30 basis points The 10-year U.S. Treasury – the benchmark used to decide mortgage rates and the most liquid and widely traded bond in the world – steadily declined for most of the quarter and has declined consistently since November 2018, when it stood at 3.24%, until it eventually came to rest at 2.41% to end the first quarter of 2019. #### Sectors #### 1Q2019 #### 1-Year Energy 15.42 % 0.34% Consumer Discretionary 15.32% 13.27% Information Technology 19.37% 16.27% Real Estate 16.64% 16.70% Utilities 9.88% 15.83% Healthcare 6.2%  13.57% Materials 9.68% -0.71% Consumer Staples 11.16% 7.79% Financials 7.90% -5.43% Industrials 16.64% 2.71% S&P 500 13.1% 9.40% ####   The Economy The latest reading on GDP was released toward the end of the quarter and the numbers from the U.S. Bureau of Economic Analysis showed that the U.S. economy expanded at a 2.2% pace in the final quarter of 2018, bringing U.S. GDP growth to 2.9% for all of 2018. While just short of that magical 3% number, it was the strongest growth since 2005 (technically tied with 2015). But glass-half-empty economists are quick to point out that GDP growth is slowing, as the second quarter of 2018 clocked in at 4.2% and third quarter 2018 came in at 3.4%.   #### The Price of Gas Kept Inflation in Check In March 2019, gasoline sold nationwide for $2.54 per gallon, which was 23 cents more expensive than the last month. But a year ago, the average price of gas was exactly the same. Partly because of this, the 12-month Consumer Price Index numbers only rose 1.5%. But dive into the numbers further and examine the 12-month numbers for the major categories of the Consumer Price Index and here is what you will see: • Overall, CPI is up 1.5% • Food is up 2% • Energy is down 5% • All categories, less food and energy, are up 2.1% #### The Bull Market Turned 10 The current bull market celebrated its 10 th birthday this quarter and equity investors got all the gifts: very hefty gains. With stocks rising to fresh 2019 highs, the markets now sit less than 3% below their all-time highs, with the S&P 500 delivering returns north of 400% over the past 10 years. ####   Here are some perspectives on the last decade: • After falling close to 60% during the financial crisis, the bull market rose 37% in the first two months and 69% in its first year. • Its best calendar year was 2013 when it gained 32.4%, followed by 2009 (+26.5%) and 2017 (+21.8%). • 2018 was its worst year when the markets lost 4.4%, breaking its streak of nine straight positive years. • This bull has grown by an average rate of 17.7% per year over the past decade, one of the best 10-year stretches ever. • For perspective, the long-term average annual return of the stock market has been roughly 10%. • This is the second-longest and third-strongest bull market since World War II. • The average bull market has lasted a little over 1,700 days. The current one is approaching 3,700 days, but is still almost 2 ½ years away from the 4,500-day bull market from 1987-2000. The first quarter of 2019 will be remembered as one investors would love to repeat. --- ## 2019 Q2 Market Commentary URL: https://www.patriotinvestment.com/blog/2019-q2-markets/ #### Markets Continue to Set Records in the Second Quarter of 2019 Stock markets in the U.S. and mostly around the globe turned in a good second quarter, which when combined with a good first quarter, created fantastic YTD returns for investors. In fact, the returns were historic, especially for the last month of the second quarter. Consider this: • The 30-stock DJIA and broad-based S&P 500 posted their best June in 81 and 64 years, respectively • The DJIA delivered its best first half of the year since 1999 • The S&P 500 delivered its best first half since 1997 • The technology-laden NASDAQ recorded its best June in nearly 20 years Markets had a lot to digest in the second quarter and there were two main themes that kept influencing the upward momentum: hopes of a trade truce between the U.S. and China and shifting Federal Reserve bank policies with respect to short-term rates. Throughout the quarter there were certainly lots of positive economic data points to digest, but there were plenty of not-so-positive data points too. Same thing with corporate earnings – earnings were generally positive, but there were some hiccups along the way. Index Returns Close YTD DJIA 26,600 14.0% S&P 500 2,942 17.3% NASDAQ 8,006 20.7% MSCI EAFE 1,914 11.3% Bond Index* 2,170 6.06% 10-Yr Treasury Yield 2.01% -0.68% *Source: Bonds represented by the Bloomberg Barclays US Aggregate Bond TR USD.This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results #### Sector Performance For the second quarter, 10 of the 11 S&P 500 sectors were painted green, with Energy being the only sector in the red. More impressive, however, is the fact that year-to-date, every single sector is in positive territory, ranging from the low of up 7%+ (Health Care) to a high of up 26%+ (Information Technology). Returns like that point to broad-based market growth. Sectors 2Q2019 YTD 1-Year Energy -3.50% 11.13% -15.63% Consumer Discretionary 6.08% 21.00% 9.67% Information Technology 7.08% 26.12% 13.85% Real Estate 2.20% 18.48% 14.04% Utilities 2.01% 12.82% 15.11% Healthcare 2.40% 7.12% 11.40% Communication Services 3.93% 18.34% 12.71% Materials 7.53% 15.96% 1.64% Consumer Staples 4.12% 14.46% 12.93% Financials 8.66% 15.92% 4.79% Industrials 4.89% 20.20% 8.62% This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results. Source: Standard and Poor’s #### The Fed Signaled No More 2019 Hikes Two days before the quarter ended, the Fed held the line on interest rates and formally suggested that no cuts were coming in 2019. The central bank suggested that one or two cuts might happen, but not until 2020. Despite the Fed’s stance, it didn’t stop Fed-guessers from thinking a rate cut was imminent. In fact, market traders started betting on Fed cuts as soon as the end of July due to Fed Chair Powell’s press conference where he said, “many participants now see the case for somewhat more accommodative policy has strengthened.” As such, according to the CME FedWatch tool, by the end of the quarter, the fed funds futures market pointed to a 100% chance of an easing of monetary policy next month. And traders started placing real bets on the CME exchange assuming that there was a 64% chance of one rate cut and a 36% probability of two cuts. Not to be outdone by traders, the press created headlines designed to sell newspapers when they wrote titles like: “Divided Federal Reserve holds the line on interest rates” (from CNBC) and “A Split Fed Decision” (from the Wall Street Journal). The fact is that the Federal Open Market Committee voted 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5% – hardly a split decision (St. Louis Fed President James Bullard voted to cut rates). News of the Fed’s decision pushed the 10-year yields to end the quarter at 2.00% and the 2-year to 1.74%.The 10-year U.S. Treasury – the benchmark used to decide mortgage rates and the most liquid and widely traded bond in the world – steadily declined for most of the quarter and has declined consistently since about November 2018, when it stood at 3.24%. #### The U.S. and China The investing world was tuned into tensions with China throughout the quarter, as it has been since the summer of 2018. Toward the end of the second quarter, however, attention turned to the annual meeting of leaders from the largest economies in the world – the G20, for short. It’s an important meeting that included leaders from 19 countries and the European Union and accounts for 85% of the world’s GDP and close to 70% of the world’s population. President Trump went to the G20 summit in Japan with a full agenda, including a resolution of trade disputes with China, building consensus to apply tougher sanctions against Iran and talks of denuclearization with North Korea. While all are important and will impact markets in the U.S. and around the world, the trade dispute with China and sanctions against Iran appear to be more economically driven. #### Mixed Economic Data The quarter’s economic data was generally positive, but there were some worrisome spots for markets too. • S&P 500 earnings dipped 0.4% in the first quarter from the same period a year ago and are projected to decline 2.6% and 0.3% in the second and third quarters, respectively, according to FactSet • Gauges of manufacturing activity in the Chicago, Kansas, and Dallas regions fell into contraction territory, and overall durable goods orders contracted more than anticipated • The Department of Commerce reported on the last day of the quarter that consumer spending remained solid, with personal spending and income registering solid gains • Weekly jobless claims rose a bit at the end of the quarter, but unemployment levels remain at a 50-year low • The Conference Board’s measure of consumer confidence fell at the end of the quarter, reaching its lowest level in two years. From the Conference Board’s release “After two consecutive months of improvement, Consumer Confidence declined in June to its lowest level since September 2017 (Index, 120.6),” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.” --- ## Global Market Commentary: Year End 2021 URL: https://www.patriotinvestment.com/blog/global-market-commentary-year-end-2021/ #### Year In Review 2021 was another year filled with concern, whether it was the COVID-19 pandemic, rising inflation, or the Federal Reserve and interest rates.  Even with that uncertainty, the US markets still had a very strong performance and by the end of the year: • The Dow Jones Industrial Average finished up 20.95% • The S&P 500 ended with a gain of 28.71% • The NASDAQ was up 22.18% At the beginning of 2021, few investors expected these types of returns.  However, markets and investors shrugged off any potential events that might have derailed the market and the S&P 500 notched 70 new all-time highs over the course of 2021 and had the third-largest gain of the past 20 years. #### Markets Turn in Very Good Fourth Quarter Global equity markets had a volatile fourth quarter, but by the time the year ended, global markets recorded very decent numbers, as good returns from the first and third month sandwiched a less than stellar second month. For the fourth quarter of 2021: • The Dow Jones Industrial Average finished with a gain of 5.9% • The S&P 500 ended with a gain of 9.4% • The NASDAQ closed with a gain of 7.4% The themes that helped drive market performance were like the ones that helped drive performance the prior quarter (and for most of this year). In December, these themes seemed to subside a little bit – especially inflation and supply chain issues. The other positive themes were helpful consumer confidence, rising housing prices, an active Federal Reserve, and earnings that came in better than expected. For the fourth quarter, there was one new area that certainly impacted market performance – and that is the emergence of a new COVID-19 variant that caused investors to seek shelter in safe-haven assets and caused a rotation from growth to value stocks in late November. As more data became known, Wall Street shrugged off those November worries and the quarter finished strong. #### Market Performance Around the World 32 of the 36 developed markets tracked by MSCI were positive for the fourth quarter of the year, with 13 posting returns more than 7%.  For the quarter, the World Index was up 7.49%. Again, the themes that helped drive market performance this quarter have been on Wall Street’s radar all year and did not magically appear when the fourth quarter kicked off – except for the new omicron variant. Other than that, the worries of rising inflation, the Federal Reserve’s schedule of remaining accommodative, declining consumer sentiment, red-hot housing prices, and supply chain issues have all been around for the whole year. The fourth quarter did see a few more topics added to that long list of events that could have an impact on the market.  Those are: • A highly debated Build Back Better bill that could carry a price tag of at least $1 trillion and up to $3.5 trillion • A COVID-19 variant sweeping the country and the world • A change in tone from the Federal Reserve indicating that inflation is no longer transitory; and • Skyrocketing shipping fees, empty shelves and rising inflation just about everywhere #### Inflation Keeps Rising Right before the Christmas holiday, the U.S. Bureau of Labor Statistics announced that the Producer Price Index for final demand increased 0.8% in November. • For the 12 months ended in November, prices for final demand less foods, energy, and trade services increased 6.9%, the largest advance since 12-month data were first calculated in August 2014. #### Housing Prices Skyrocket A few days before year-end, the Federal Housing Finance Agency announced that prices rose nationwide in October, up 1.1% from the previous month. House prices rose 17.4% from October 2020 to October 2021. The previously reported 0.9% price change for September 2021 remained unchanged. #### Moving Forward Over the course of 2021 and for the past several years most Patriot investors have seen annualized double-digit returns.  Moving forward, we do not know when a market decline will occur, but we do know that it will happen, at some point. Jason Zweig, a Wall Street Journal writer, recently said that the best investment in 2022 is likely to be “discipline”.  With the course of the coronavirus pandemic unclear, inflation expected to keep spiking, and the Federal Reserve poised to raise interest rates, anything can happen, and probably will. Since our inception 29 years ago, Patriot has always believed in discipline.  We will continue to focus on the things that we can control and not speculate or guess what may happen in the markets.   These factors are: asset allocation, costs, and investor behavior.  We believe that being properly diversified across asset classes, keeping your investment costs low, and not making large shifts in your portfolio unless something dramatic has changed in your life are some of the most important things that we can help our client’s control. If you have concerns about your portfolio or wish to speak with your advisor, contact us today. Sources: fhfa.gov ; dol.gov ; statestreet.com; bls.gov ; census.gov ; msci.com ; fidelity.com ; msci.com ; nasdaq.com ; wsj.com ; morningstar.com --- ## Global Market Commentary: First Quarter 2022 URL: https://www.patriotinvestment.com/blog/global-market-commentary-first-quarter-2022/ #### Markets Have Worst Quarter Since 1Q2020 Global equity markets had a volatile first quarter, ending down for the quarter, as March was not enough to make up for the poor returns from January and February. Additionally, the bond market suffered its worst quarter since 1980. For the first quarter of 2022: • The DJIA was down 5.2% • The S&P 500 was down 5.5% • NASDAQ was down 10.2% • The Russell 2000 was down 8.9% The themes that drove market performance in the first quarter were the same themes that drove markets toward the end of last year. However, in late February and throughout all of March, Wall Street dealt with the invasion of Ukraine by Russia and its impact on global markets. Volatility and oil prices spiked this quarter, driven by multiple issues, including Russia’s invasion, rising inflation, supply chain issues, and the Federal Reserve’s timing and size of rate hikes (we saw a 25 basis point hike in March). The other themes were volatile consumer confidence, continued red-hot housing prices, high GDP growth numbers, and corporate earnings that came in better than expected. Further, we saw that: • Volatility, as measured by the VIX, trended up most of the month, more than doubling to a high of 36 on March 7 th , before retreating to come to rest marginally higher than where it began the month. • West Texas Intermediate crude made a big move in the first quarter, starting at $75/barrel and ending the quarter at over $100. For perspective, WTI started 2021 at $48/barrel. #### Market Performance Around the World Investors were unhappy with the quarterly performance around the world, as 35 of the 36 developed markets tracked by MSCI were negative for the first quarter of 2022, with only MSCI Pacific ex-Japan having a positive return. For the 40 developing markets tracked by MSCI, 26 of them were negative, with many posting staggering losses, including MSCI Eastern Europe that dropped almost 60%. Index Returns 1Q2022 MSCI EAFE -6.61% MSCI EURO -11.34% MSCI NORTH AMERICA -5.11% MSCI WORLD -5.53% MSCI WORLD EX-USA -5.49% Source: MSCI. Past performance cannot guarantee future results #### March Could Not Lift the Entire Quarter U.S. equity markets rebounded and ended the month of March in positive territory. Yet, it was still not enough to overcome the biggest two-month drop (January and February) since March 2020. For the month of March: • The DJIA was up 4.2%; • The S&P 500 was up 5.2%; • NASDAQ was up 5.1%; and • The Russell 2000 was up 3.1%. #### The Fed Increases Rates The dominant theme this month (besides Russia/Ukraine) revolved around whether the Fed might need to raise short-term interest rates more quickly and more often, eating into future profits, especially within the high-flying tech names. Then, at the March meeting, the Federal Reserve moved its fed funds target rate from near zero to a range of 0.25% to 0.50%. It was the first rate hike since 2018. The Fed also released the so-called “dot plot,” which shows where individual Fed officials expect interest rates to be. Given the surge in inflation numbers, the majority of Fed officials now expect seven hikes in 2022, four in 2023, and none for 2024. (In other words, there could be a rate hike at every remaining Fed meeting this year and at half the meetings next year.) If this comes true, it would be higher than the Fed’s estimate of the long-run neutral rate, (which is 2%), and would suggest a more hawkish policy that could be more restrictive to growth. Interestingly, when the Fed raised rates 25 basis points and released its “dot plot,” stocks rallied, suggesting that Wall Street appreciates the path that has been outlined. #### Moving Forward The war in Ukraine continues to be an uncertain factor for markets. However, geopolitical issues have often led to sharp but short-term impacts on markets. Whether it’s inflation concerns or the war, it’s important to avoid the risk of panic selling and making an emotional decision that will ultimately hurt the long-term health of your portfolio and your financial situation. As always, the best approach is to remain well-diversified and maintain an appropriate long-term allocation given your goals. Sources : conference-board.org ; bea.gov; census.gov ; msci.com ; fidelity.com ; nasdaq.com ; wsj.com; morningstar.com ; bea.gov --- ## Global Market Commentary: Second Quarter 2022 URL: https://www.patriotinvestment.com/blog/global-market-commentary-second-quarter-2022/ #### Markets Stumble In The Second Quarter Global equity markets had a disappointing second quarter with all major global equity markets in the red, leading to overall market declines not seen in decades. To underscore how bleak it has been so far in 2022, consider that the S&P 500 recorded its worst first six months in 52 years and the Dow Jones Industrial Average recorded its worst first six months since 1962. For the second quarter of 2022: • The DJIA dropped 11.2%; • The S&P 500 lost 16.7%; • NASDAQ fell 22.7%; and • The Russell 2000 (small company stocks) declined 18.4%. The themes that drove market performance in the second quarter were the same worries that drove markets in the first quarter and towards the end of last year. The two most dominant themes continue to be inflation and the Fed – with the former rising to 40-year highs and the latter causing Wall Street to worry that the course of rising rates will lead to a recession. The other themes were plummeting consumer confidence, rising food and gas prices, negative GDP (Gross Domestic Product) numbers, declining manufacturing, a cooling-off of the housing market, not-so-wonderful corporate earnings, continued supply-chain bottlenecks, and social unrest here at home. #### Market Performance Around the World Investors were unhappy with the quarterly performance around the world as well. All 36 developed markets tracked by MSCI were negative for the second quarter of 2022 – and all of them saw negative returns in the double digits. For the 40 developing markets tracked by MSCI, 39 of them were negative, too, with many losing more than a quarter of their value. #### Bear Market Territory for the Year U.S. equity markets turned in a terrible second quarter to add to a not-so-great first quarter, pushing the major equity markets to levels not seen in a long time. While many are suggesting that there is more pain to come, there are also plenty of others suggesting that the worst is behind us. Are we at or near the bottom? At Patriot, we make no attempt to try and call market bottoms or tops, and the ‘gurus” on the financial news networks may be smart and convincing, but they do not have a crystal ball either. YTD through the end of June: • The DJIA is down 15.9%; • The S&P 500 is down 21.0%; • NASDAQ is down 30.3%; and • The Russell 2000 is down 24.8%. #### Positives Patriot is in its 29 th year helping clients achieve their financial goals and assisting them in the management of their portfolios. We have been through the Tech Bubble, 9/11, the Great Financial Crisis in 2008, and most recently, the turmoil caused by the Covid Pandemic. The good news is that these Bear Markets or challenging times always come to an end! This time will be no different. From a historical standpoint, one year following a bear market bottom, the market is up on average at least 8.7%. Three years later, it is up on average at least 29% (7.5% annualized). For five years later, the figure is 39% (6% annualized). There are no guarantees that these historical recoveries will look exactly like the next. However, we are sure that the markets will recover. At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. In the coming months, we will look for the opportunity to rebalance our client’s portfolios and take advantage of any tax-loss harvesting opportunities. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. Maintaining a disciplined asset allocation and a reasonable withdrawal rate helps one endure challenging times like this. We know the markets will recover, but it is still hard to endure these downturns. If you want to talk and review your allocation or your goals, we are a phone call or e-mail away . --- ## Global Market Commentary: Third Quarter 2022 URL: https://www.patriotinvestment.com/blog/global-market-commentary-third-quarter-2022/ #### Markets Have Challenging Third Quarter Global equity markets had a poor third quarter with all major markets in the red, leading to overall declines not seen in decades. Further, entering the fourth quarter of 2022, the DJIA and S&P 500 are both at their lowest since November 2020, while NASDAQ is at its lowest since the end of July 2020. For the third quarter of 2022: • The DJIA dropped 6.7%; • The S&P 500 fell 5.3%; • NASDAQ lost 4.1%; and • The Russell 2000 declined 3.6%. The worries that drove market performance in the third quarter were the same ones that drove markets in the first two quarters and towards the end of last year. The two most dominant issues continue to be inflation and the Fed – with the former rising to 40-year highs and the latter causing Wall Street to worry that the course of rising rates would lead to a recession. The other themes were at odds with one another at times: rising consumer and investor confidence; rising food and gas prices, negative GDP numbers, a cooling-off of the housing market, better than expected manufacturing data; not-so-great corporate earnings, continued supply-chain bottlenecks and more social unrest. #### Market Performance Around the World Investors were unhappy with the quarterly performance around the world, as all 36 developed markets tracked by MSCI were negative for the third quarter of 2022 – with most recording negative returns in the double digits. #### We’re Here for You At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. In the coming months, we will look for the opportunity to rebalance our client’s portfolios and take advantage of any tax-loss harvesting opportunities. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. Maintaining a disciplined asset allocation and a reasonable withdrawal rate helps one endure challenging times like this. We know the markets will recover, but it is still hard to endure these downturns. If you want to talk and review your allocation or your goals, we are a  phone call or e-mail away . Sources: bls.gov ; umich.edu ;  census.gov ;; msci.com ; fidelity.com; nasdaq.com ; wsj.com ; morningstar.com --- ## SECURE Act 2.0: An Overview URL: https://www.patriotinvestment.com/blog/secure-act-2-0-an-overview/ In the final days of 2022, Congress passed a new set of retirement rules designed to make it easier to contribute to retirement plans and access those funds earmarked for retirement. The law is called SECURE 2.0, and it's a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in 2019. The sweeping legislation has dozens of significant provisions, so to help you see what changes may affect you, we broke the major provisions of the new law into four sections. # New Distribution Rules RMD Age Will Rise to Age 73 By far, one of the most critical changes was increasing the age at which owners of retirement accounts must begin taking required minimum distributions (RMDs). Beginning in 2023, RMDs begin at age 73 and in 2033, RMDs begin at age 75. If you have already turned 72, you must continue taking distributions. However, if you are turning 72 this year and have already scheduled your withdrawal, we may want to revisit your approach.1 Access To Funds Plan participants can use retirement funds in an emergency without penalty or fees. For example, starting in 2024, an employee can get up to $1,000 from a retirement account for personal or family emergencies. Other emergency provisions exist for terminal illnesses and survivors of domestic abuse.2 Reduced Penalty Also, starting in 2023, if you miss an RMD for some reason, the penalty tax drops from 50% to 25%. If you fix the mistake promptly, the penalty may drop to 10%.3 # New Accumulation Rules Catch Up Contributions Starting January 1, 2025, investors aged 60 through 63 can make catch-up contributions of up to $10,000 annually to workplace retirement plans. The catch-up amount for people aged 50 and older in 2023 is $7,500. However, the law applies certain stipulations to individuals earning more than $145,000 annually.4 Automatic Enrollment Beginning in 2025, the Act requires employers to enroll employees into workplace plans automatically. However, employees can choose to opt-out.5 Student Loan Matching In 2024, companies can match employee student loan payments with retirement contributions. The rule change offers workers an extra incentive to save for retirement while paying off student loans.6 # Revised Roth Rules 529 To Roth Starting in 2024, pending certain conditions, employers can roll a 529 education savings plan into a Roth IRA. So, if your child gets a scholarship, goes to a less expensive school, or doesn't go to school, the money can get re-positioned into a retirement account. However, rollovers are subject to the annual Roth IRA contribution limit. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.7 SIMPLE & SEP From 2023 onward, employers can make Roth contributions to Savings Incentive Match Plans for Employees or Simplified Employee Pensions.8 Roth 401(k)s and Roth 403(b)s The new legislation aligns the rules for Roth 401(k)s and Roth 403(b)s with Roth Individual Retirement Account (IRA) rules. From 2024, the legislation no longer requires minimum distributions from Roth Accounts in employer retirement plans.9 # More Highlights Support for Small Businesses In 2023, the new law will increase the credit to help with the administrative costs of setting up a retirement plan. The credit increases to 100% from 50% for businesses with less than 50 employees. By boosting the credit, lawmakers hope to remove one of the most significant barriers for small businesses offering a workplace plan.10 Qualified Charitable Contributions From 2023 onward, QCD donations will adjust for inflation. The limit applies on an individual basis, so for a married couple, each person who is 70½ years old and older can make a QCD as long as it remains under the limit.11 Remember that just because retirement rules have changed does not mean that adjusting your current strategy is appropriate. Each of your retirement assets plays a specific role in your overall financial strategy, so a change to one may require changing another. Also, retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same. This article intends to give you a broad overview of SECURE 2.0. It's not intended as a substitute for real-life advice. Please contact your Patriot advisor for more information about SECURE 2.0. 1. com, December 23, 2022 2. com, December 22, 2022 3. com, December 22, 2022 4. com, December 22, 2022 5. com, December 30, 2022 6. com, December 27, 2022 7. com, December 23, 2022 8. com, January 5, 2023 9. com, January 5, 2023 10. com, December 30, 2022 11. org, December 29, 2022 --- ## Fourth Quarter 2022 Market Commentary URL: https://www.patriotinvestment.com/blog/fourth-quarter-2022-market-commentary/ Quarterly Market Insights – Fourth Quarter 2022 U.S. Markets Stocks ended a volatile fourth quarter with a slight gain, which helped repair some of the damage since the beginning of the year. For much of the quarter, sentiment was boosted by stronger than expected earnings, a deceleration in inflation, and a growing belief that the Fed may start to scale back on the pace of interest rate hikes.  However, the upbeat mood soured in December as recession fears were rekindled by ongoing Fed rate hikes. The Dow Jones Industrial Average (DJIA) gained 15% for the quarter, while the S&P 500 added 7 percent.  The tech-heavy Nasdaq lagged, falling 1 percent. For the year, the S&P 500 fell 18.11%, the NASDAQ sank 33.10%, and the Dow Jones Industrial declined 8.78%. This was the seventh worst stock market downturn in history and the worst bond market ever. An October Rally The quarter opened on a volatile note as stocks reacted to both international news and domestic economic updates.  An above consensus inflation report sent stocks to levels not seen since 2020 before mounting an impressive turnaround that by day’s end had witnessed the DJIA climbing 1,500 points from its midday low. The market stabilized as third quarter earnings started rolling in.  Early earnings reports calmed some fears of deteriorating profits and pushed Fed policy concerns into the background. November Follow Through Stocks added to their gains in November based on growing investor optimism for a slowdown in future rate hikes.  After the Federal Open Market Committee (FOMC) announced a 75 basis point (0.75%) rate hike at the start of the month, stocks retreated on hawkish comments by Fed Chair Jerome Powell in his post-meeting press conference.  Markets staged a quick recovery, though, following a cooler than expected inflation number that ignited a powerful rally that lifted stocks to their biggest one day gain in two years. December Blues Stocks opened in December by surrendering some of the October and November gains as recession fears and concerns over higher rates once again dragged on investor sentiment.  The Fed announced another rate hike of 50 basis points, but it was the increase in the terminal rate (i.e., the rate at which the Fed stops further rate hikes) that elevated recession worries and closed the quarter and the year on a muted note. In his press conference following the news, Fed Chair Jerome Powell suggested that the next hike may be a quarter percentage point increment.  FOMC members lifted the terminal rate to between 5%-5.5%, up from their projection of 4.6% in September. Quarterly Sector Scorecard Sector Gain/Loss Communication Services 0.21% Consumer Discretionary -9.33% Consumer Staples 11.72% Energy 21.45% Financials 12.65% Health Care 12.17% Industrials 18.55% Materials 14.22% Real Estate 2.55% Technology 4.96% Utilities 7.62% What Investors May Be Talking About In January In the month ahead, expect the market spotlight to fall on three key dates. The first will come on January 12 th with the December Consumer Price Index report.  A continued slowdown in inflation may help lift some pressure on the Fed to raise interest rates. The second will be on January 26 th with the initial reading of the fourth-quarter gross domestic product.  A healthy number may be a relief to those worried about an imminent recession, or it could be viewed as a reason for the Fed to maintain its aggressive rate hike path. Finally, the FOMC will open its two-day meeting on January 31 st .  The forward-looking markets tend to focus on what Fed Chair Jerome Powell says about the direction of the economy in the post-meeting press conference. We Are Here For You At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one's financial plan. We know the markets will recover, but it is still hard to endure these downturns. If you want to talk and review your allocation or your goals, we are a  phone call or e-mail away . WSJ.com, December, 31 2022 CNBC.com, October, 12 2022 BLS.gov, November 10, 2022 SectorSPDR.com, December 31, 202 WSJ.com, December 14, 2022 Finance.Yahoo.com, January 2, 2023 Finance.Yahoo.com, January 2, 2023 Finance.Yahoo.com, January 2, 2023 --- ## January Is National Financial Wellness Month URL: https://www.patriotinvestment.com/blog/january-is-national-financial-wellness-month/ January is Financial Wellness Month, which means it’s a good time to remind people to plan and update their financial strategy. Now is a great time to connect with your Patriot advisor to discuss your financial situation and aspirations for the future. You should also assess if your financial strategy needs any adjustments or changes based on your lifestyle. Defining Financial Wellness The first thing to do is define what “financial wellness” means for you. This varies drastically from person to person. It is informed by who you are, where you come from, and what your experiences with money are. A person who has had serious financial troubles in their life might have different expectations than a person who has enjoyed relative financial stability. How, then, is “financial wellness” defined? First, ask yourself what you need to feel secure, financially speaking. Here are some questions to consider: • How much should you have saved? • How much income should you be bringing in each month? • Where are you at with your debt? • Would things be simpler if you carried less debt? • How fluid is your cash flow when it comes to expenses that are not urgent (taking your family out to dinner or on a small trip) versus larger financial goals (such as buying a new kitchen appliance)? • Finally, and perhaps most importantly, will you be able to retire at your target age? Financial Wellness Goals Thinking about financial wellness is often a matter of setting goals for what you can accomplish now and what you can work on to make it a part of your larger financial strategy. For now, consider taking these actions: • Have a values-based conversation with the decision makers in your household, meaning any tax-paying adult who contributes income and shares responsibility for the bills. This could be your spouse or a family member. Make sure that the non-essential things you are spending money on line up with your commitments to meeting your financial needs. This is not a “stop getting lattes” conversation; it is a “are we spending money on the things that matter?” conversation. • Consider automating payments, especially for regular items, including student loans, credit cards, and other installment payments. • Create an emergency fund reflecting 3–6 months of household expenses to establish a stable foundation going forward. If that seems too ambitious, build the fund a month at a time until you reach your goal. • Make regular contributions to your retirement accounts. Take advantage of any matching contributions you might get from your employer. • Make long-term financial goals. If you are thinking in terms of buying a house, for instance, let that guide your overall financial strategy. • Is becoming debt free an achievable goal? It can be if you make it a priority. That said, being totally debt free can be a difficult task for most households. For that reason, it may be better for you to focus on your other goals first and make debt freedom a target for a later date: for example, being debt free by retirement. These are, of course, not hard and fast rules. As mentioned above, every individual has their own specific definition of financial wellness. Some of these examples might feel like a long reach. Others, you might already be practicing. The good news is that with careful practice many people can gain a feeling of satisfaction and even pleasure from maintaining financial wellness. Having your financial strategy in place can mean not only a great deal to you in the long term but may also provide you with some comfort in the short term. Schedule a time to discuss this with your trusted Patriot financial advisor today. ###### This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 5 Tips Before Completing Your 2022 Tax Return URL: https://www.patriotinvestment.com/blog/5-tips-before-completing-your-2022-tax-return/ While doing your taxes always feels a bit tedious, these five tips can help you stay the course for filing your 2022 tax return. Tip #1: Leverage Technology If you are filing without the help of an accountant or advisor, you may find it beneficial to use tax preparation software. You can input the information, and the software can populate the numbers for you. Utilizing software can help you meet compliance requirements and help streamline the process, which in turn can potentially speed up the time it takes to receive your tax returns. Tip #2: Accuracy Over Speed Getting an early start on the filing process can allow you the time needed to go through your returns several times before mailing or e-filing. When you are claiming deductions, make sure you’re eligible under the current IRS rules, as some rules change year to year. Have a paper trail ready and simply read from what you have in front of you. Take advantage of automated systems that can funnel reported income, interest or dividends directly into your tax preparation software. Guessing is fine if you want to estimate your refund amount, but not when you report to the IRS. Tip #3: Report Everything You may have made several charitable contributions last year or had several income streams. Perhaps you had a few investments that didn’t yield much. Whatever it may be, you should report all of this on your return. When using tax software, it will recognize when you’ve given enough or earned enough to affect the amount of taxes you owe. Remember, it’s better to over report than to leave things off your returns. The IRS is likely to discover how much you’ve earned or received via reporting requirements and will know if you haven’t reported income. If this is the case, then you may have to pay a little more next year. Tip #4: Choose Between Standard Deduction & Itemizing The IRS allows a standard deduction amount for those who wish to simplify filing. For the 2022 tax year, the standard deduction amount is $12,950 for single filers, $25,900 for married couples, and $19,400 for head of household. 1 You can reduce the taxable amount on your return using the standard deduction. However, itemizing them may enable you to reduce your taxable amount even more. Some commonly used deductions include: • State and local taxes • Charitable contributions • Casualty loss • Business expenses for which you weren’t reimbursed • Medical expenses • Mortgage interest If you already itemize, you should be sure to note how the most recent changes in the tax code may have (or may not have) affected certain deductions. Tip #5: Understand Tax Credits Tax credits act as reductions on the amount of tax owed. It’s important to note that they do not reduce your taxable income or change your tax bracket as a deduction might. An example is the Earned Income Tax Credit, which helps low- to moderate-income workers and their families receive tax relief. If you qualify, you can use the credit to reduce the taxes you owe, which can potentially increase your return. 2 According to a report by the Treasury Inspector General for Tax Administration, approximately 5 million potentially eligible taxpayers do not claim the credit each year, which results in about $7 billion in unclaimed benefits annually. 3 To ensure you are not missing out on this opportunity, you should check for this and other tax credits for which you may be eligible. If you have any questions this year, be sure to speak with a CPA or other trusted tax professional regarding your situation. An experienced professional can answer your questions and empower you to start the tax season off with confidence. 1. https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022 2. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc 3. https://www.taxpolicycenter.org/briefing-book/do-all-people-eligible-eitc-participate This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Student Loan Forgiveness: A Timeline Of Events URL: https://www.patriotinvestment.com/blog/student-loan-forgiveness-a-timeline-of-events/ A lot has happened with student loan forgiveness in the US. In fact, the movement surrounding the topic started over a decade ago! Here, we provide a brief timeline of events that have happened over the past year or so regarding student loan forgiveness. January 2021 President Joe Biden was inaugurated into office on January 20, 2021. According to Politifact, a website by the Poynter Institute, one of Biden's promises was to forgive student loan debt from public colleges and universities. His exact promise when running was to "forgive all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities and private HBCUs and MSIs for debt-holders earning up to $125,000." 1 August 2022 In August 2022, President Joe Biden announced that he would cancel $10,000 per borrower and $20,000 for Pell Grant recipients. The loan forgiveness was limited to Americans earning under $125,000 per year, or $250,000 for married couples. The relief was also capped at the amount of a borrower's outstanding eligible debt. 2,3,4 September 2022 After this announcement, six states (Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Caroline) sued President Biden and the Department of Education, claiming that Congress had never approved massive student loan cancellation and that the Biden Administration and the US Education Department misused their emergency authority. They argued that the administration improperly used the HEROES Act, a 2003 law that "vests the Secretary of Education with expansive authority to alleviate the hardship that federal student loan recipients may suffer as a result of national emergencies." 5,6 For the next month or so, various other parties sued the Department of Education and President Biden, including the Brown County Taxpayers Association in Wisconsin, college graduates Myra Brown and Alexander Taylor, and the Cato Institute. October 2022 On October 17, 2022, student loan forgiveness applications opened, despite rising legal challenges. In October, the Supreme Court dismissed the six states' lawsuit, saying it lacked standing. Shortly after, the 8th Circuit Court of Appeals in St. Louis gave an emergency order temporarily blocking the forgiveness plan after the six states appealed the decision. 7,8 November 2022 Throughout October and November, there were various appeals and dismissals from both sides and on November 11, the Department of Education stopped accepting student loan forgiveness applications. As of December 2022, the message on StudentAid.gov currently reads "Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders." 9 On November 22, the student loan repayment pause was extended to June 2023, or until the debt relief program is implemented or the litigation is resolved. There's no telling what will happen with student loan forgiveness in 2023, but we can be sure that most Americans will continue to stay updated on the developments in the coming months. 1. https://www.politifact.com/truth-o-meter/promises/biden-promise-tracker/promise/1595/forgive-student-loan-debt-public-colleges-and-univ/ 2. https://www.cnbc.com/2022/08/24/biden-expected-to-cancel-10000-in-federal-student-loan-debt-for-most-borrowers.html 3. https://www.cnbc.com/2022/08/24/who-qualifies-for-biden-student-loan-forgiveness.html 4. https://studentaid.gov/debt-relief-announcement/ 5. https://nebraskaexaminer.com/2022/09/29/nebraska-ag-joins-five-others-in-suing-the-biden-administration-to-stop-student-debt-cancellation/ 6. https://www.justice.gov/olc/file/1528451/download#:~:text=%C2%A7%C2%A7%201098aa%E2%80%931098ee 7. https://storage.courtlistener.com/recap/gov.uscourts.moed.198213/gov.uscourts.moed.198213.44.0_2.pdf 8. https://www.foxbusiness.com/personal-finance/biden-student-loan-forgiveness-blocked-appeals-court 9. https://studentaid.gov/ ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## How March Madness Is Like Investing URL: https://www.patriotinvestment.com/blog/how-march-madness-is-like-investing/ March Madness is almost here, and as many of us know, the season highlight for college basketball fans is often full of upsets, underdogs, and blowouts. Like investing, filling out a bracket involves balancing risk, reward, and expectations, and winning a pool requires a bit of luck along the way. Here are a few lessons from March Madness that we can apply to the world of investing. Lesson #1: Forget Perfection, Position Yourself Strategically The odds of filling out the perfect bracket are almost impossible - so are the odds of consistently selecting prime investments within the market. This can make the process of approaching March Madness, and investing, daunting. Successful investing stems from focusing on what you can control. That can mean building a portfolio that is positioned to maintain return premiums, such as size, value, or profitability that can improve risk-adjusted returns. Additional areas that are also within your control include asset allocation, keeping investment costs low, and minimizing taxes. Lesson #2: Don’t Let Past Performance Dictate Future Decisions  Like allowing a past team’s success to influence your bracket picks, investing based on previous performances will generally lead to disappointment. As an investor, you should never assume that your “best pick” from the past will act similarly in the future. It’s also important to keep in mind that luck can often play a role in the success of one’s season. While your bracket pool, or asset managers, might be skilled, it may be hard to tell if it’s that skill or luck that helped them do so well. It’s common to see funds that have outperformed in a certain amount of time proceed to under perform in the following period. Lesson #3: The More You Watch, the More Drama You Can Expect Just like watching a clock tick slowly as you wait for a profound moment or event to take place, the more you watch March Madness, the more attached and emotional you may become about the outcomes. While highly entertaining, the drama associated with the NCAA tournament is undeniable. Keeping a close eye on the market is rarely helpful or entertaining. In fact, the more you watch the markets, the more susceptible you may become to making poor investment decisions. Great investors detach themselves as much as possible from regular stock fluctuations. Lesson #4: Leave Emotions out of the Decision-Making Process As humans, we see patterns in everyday life and our tendency to maintain memories of the times they “work” only enhances that pattern-seeking behavior. 1 A great example is choosing your alma mater or a nearby school to advance in the season further than what evidence and probability suggest. When it comes to making investment decisions, it’s wise to emphasize evidence-based investment theory and research as opposed to basing your judgments on minor indicators, patterns, or gut feelings. Quality decision-making processes should protect us from our internal hardwiring that causes us to misinterpret probabilities, discover patterns where none exist and exhibit emotional responses. Lesson #5: Keep in Mind the Importance of a Great Coach  There’s no denying that a great coach contributes greatly to the success or failure of a team, sports-related or otherwise. Coaches can act as key motivators and can also be calming in times when emotions run high. In terms of financial well-being, working with a trusted, educated financial professional can be beneficial. Having a good behavioral coach is crucial to maintaining emotional stability and clarity as you make financial decisions. Financial advisors often act as emotional barriers between individuals chasing returns and running from emotionally charged markets. Without proper guidance, you may lack the understanding and discipline to approach investments wisely. While we can certainly compare the two, creating a March Madness bracket doesn’t have the same high stakes as developing an investment portfolio. Be sure to contact your Patriot advisor before jumping into the season. ###### 1. https://en.wikipedia.org/wiki/Pattern_recognition_(psychology) ###### This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 7 Ways To Spring Clean Your Finances URL: https://www.patriotinvestment.com/blog/7-ways-to-spring-clean-your-finances/ Spring is an ideal time to clean up your finances, clear out the clutter, and get a fresh start. Maybe you have extra money left over at the end of the month and could use a budget tweak. Perhaps you have too many automatic expenses, or it’s time to apply the brakes to your credit card spending. Whatever the reason may be, consider the following seven suggestions to get a better handle on your finances this spring season. 1. Clean Up Your Spending Whether you call it a budget or a spending plan, you only need to look in the rear view mirror over the past few months and write down your repeating bills and expenses. When you inventory those expenses, assign a priority number from one to three, with one being expenses you must meet to avoid being evicted from your home and three being rather nice to have, but you could live without. Clear out or reduce your level three expenses. For example, that $70 cable bill is a great candidate for your first cut. Try less expensive streaming services. 1. Clear the Decks and Put Your Savings on Autopilot That 70 bucks a month you recouped by disconnecting your cable service can now be redirected automatically to your emergency fund. If you don’t have an emergency fund to cover at least six months' expenses, you could literally be one or two paychecks away from disaster. 1. Review Your Tax Withholding You’re looking forward to that big tax refund this year. However, what you have done is given the U.S. Government a 12-month interest-free loan. Give it to yourself as a monthly upfront paycheck increase. Adjust your withholding for a better balance and slide that extra money into savings or another investment plan. 1. Inventory Your Material Wealth Dedicate an hour or two to photographing and cataloging your household possessions. Concentrate on big-ticket items like your furniture and expensive electronics. Write out the approximate amount you paid and when you purchased the piece. As you bring new items into your home, save the receipts, and update your inventory. 1. Check into Your Renter or Home-Owner Insurance Your spring cleaning should include a complete insurance check-up. Go to your insurance files and this time really read the fine print. Is your coverage adequate to replace everything you inventoried after you followed suggestion #4 above? If you own your home, you know that replacement costs have risen everywhere. Make sure you are covered. Also, it wouldn’t hurt to check and upgrade your life insurance, especially if your family has grown or your income has gone up. 1. Plug into Technology Let the free and secure technology of your online banking platform keep you on the straight and narrow. Most banking sites have settings available to send notifications. Want to receive a warning when your account balance gets too low, or your credit card spending is over a set amount? Your bank can do that via email or text message. 1. Get Your Paper Files in Order Devise an orderly filing system for the financial papers you must keep. If you are after a more simplistic method, head to your office supply store and buy an expandable folder with month separator tabs. Stash the papers you usually throw away each month in the appropriate month of the folder. Finally, remember that bad financial habits come from neglect and passive spending decisions. Spring is the ideal time to get back in the driver’s seat and reacquire the big picture. Clear out the clutter and do away with what is not working for you.  If you have any questions about going through this process, please contact your Patriot advisor today! ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## It's Financial Literacy Month: Brush Up On Your Financial Skills URL: https://www.patriotinvestment.com/blog/its-financial-literacy-month-brush-up-on-your-financial-skills/ Did you know that April is Financial Literacy Month? Financial Literacy Month is a national campaign designed to bring more financial education to both children and adults. Whether you're a financial wiz or just learning the ropes, there are many ways to improve your financial literacy. Here are four to get you started. Make a Monthly Budget One of the most important steps in ensuring financial success is creating a monthly budget. This may sound simple, but a budget is your financial strategy's foundation. Creating a monthly budget doesn't have to be complicated. Here's how to ensure you're setting yourself up for financial success: 1. First, calculate your gross monthly income. This could include your salary, investment income, Social Security, child support/alimony, freelance work, or other income sources. Remember to calculate your net income as well, which is how much is left after taxes and other deductions. 2. Speaking of priorities, consider your financial priorities and allocate your budget accordingly. In addition to your regular monthly expenses, you might decide to increase your general savings or earmark money toward a large purchase such as a home or car. The important point is to decide what's important and to make sure your budget reflects those values. 3. Finally, create expense categories for where your money is spent and track each expense. It's important to differentiate between wants and needs. You need to pay your rent or mortgage payment, but you want a new pair of shoes or a nice dinner out. By tracking your spending, you can determine whether your budget is aligned with your priorities, or if you need to adjust to meet your goals. Check Your Credit Score If it's been a while since you checked your credit score, now is a great time to see where you stand. Your credit score is an important metric when considering your financial health and will play a larger role when you apply for loans, especially mortgages and car loans. If you have a higher credit score, you may qualify for lower-interest debt, which will save you money. The Federal Trade Commission provides information on how to request your free annual credit report. Reviewing your credit report is important to ensure there aren't any mistakes or incorrect accounts assigned to you. If you notice something on your credit report that doesn't look accurate, such as a loan or credit card you don't remember opening, contact your financial institutions immediately. You can also file a dispute with the credit reporting agencies to report any false information you find. Understand Your Investment Options As you become more financially literate and feel comfortable talking about finances, you may consider looking into investments that are aligned with your goals. There are so many different types of investments, and working with your Patriot Investment financial advisor can help you understand your options. You should also educate yourself on some of the most common investment types, including: • Stocks • Bonds • Mutual Funds • ETFs Don't Be Afraid to Ask Questions Talking about finances can be intimidating, but we all must start somewhere. This Financial Literacy Month, make it a goal to learn one or two new facts about finance. Financial literacy doesn't come from making big leaps but rather from taking one step at a time. Pick one of the options above and start yourself on the path to becoming financially savvy.  Ask your Patriot advisor if you have questions. ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Q1 2023 Market Commentary URL: https://www.patriotinvestment.com/blog/q1-2023-market-commentary/ U.S. Markets Stocks posted solid gains in the first quarter as investors navigated corporate earnings, shifting monetary policy, and troubles in the banking sector. The first quarter of 2023 saw the Dow Jones Industrial Average rise 0.38%, the Standard & Poor’s 500 Index gained 7.50%, and the Nasdaq Composite picked up 16.77%. A January Rally Stocks rallied in January, driven by cooling inflation, a better-than-expected start to earnings season, and healthy economic data. Where investor sentiment had been weighed down by concerns over interest rates, a new, more upbeat mood surfaced. Stocks Stumble in February However, strong economic data released over the course of February diminished investor hopes of a pause in rate hikes, which dragged stocks lower. Fourth quarter earnings were a bit underwhelming, though they generally met the market’s low expectations. While 68% of the companies comprising the S&P 500 exceeded Wall Street’s earnings estimates, this was below the five-year average of 77%. Moreover, despite the number of positive earnings surprises, earnings declined for the first time since 3Q 2020, falling by 4.9%. March Twists & Turns Stocks entered March holding onto modest year-to-date gains, but the final month of the first quarter would prove to be its most dramatic. Interest rate fears flared up once again, ignited by congressional testimony by Fed Chair Powell, who suggested that rates may need to be hiked higher and faster than the Fed had anticipated. Banking Sector Selling pressure accelerated after regulators took over two U.S. banks. Fears rose that the banking sector issues were widening after a Swiss bank was taken over by a competitor. The difficulties within the banking system also changed market sentiment regarding future rate hikes. While the Fed raised rates 25 basis points in March, Fed Chair Powell hinted that the end of the rate-hike cycle was nearing. Stocks steadied as banking fears eased, notching gains at the close of the month and leaving stocks higher for the quarter. Quarterly Sector Scorecard For the quarter, big gains were posted in Communications Services (+20.80%), Consumer Discretionary (+15.78%), and Technology (+21.35%), while Industrials (+3.02%), Materials (+3.84%), Real Estate (+1.22%), and Consumer Staples (+0.21%) saw modest increases. Energy (-5.30%), Financials (-5.99%), Health Care (-4.70%), and Utilities (-3.99%) all experienced losses. World Markets Investor optimism grew overseas as well, as Europe emerged from winter in far better shape than feared, and China continued its reopening progress. For the quarter, the MSCI-EAFE (Developed International) Index jumped 8.47%.  In addition, Developed International markets outperformed the U.S. for 2022 and thus far in 2023. The Fed The Fed implemented two rate hikes of 0.25%, one each in February and March, in its year-long effort to combat inflation. The March increase came after regulators took control of two regional banks, which raised some fears about the banking sector. The official announcement accompanying March’s rate hike decision hinted that the Fed may be done raising rates soon. The statement also reiterated the Fed’s belief in the banking system’s soundness, while acknowledging that it was too early to determine how banking issues may impact the economy. Fed Chair Powell, in his post-meeting press conference, said that consideration had been given to stop hiking rates, but that the Federal Open Market Committee believed that elevated inflation and solid economic activity were reasons to raise rates despite concerns about the banking sector. What Investors May Be Talking About in April Companies have started reporting first quarter earnings, but actual financial results may be of only secondary importance. The market’s earnings expectations are quite low as Wall Street analysts’ earnings estimates have come down by 5.7% between the end of December and February. While first quarter estimates tend to be lowered, the average cut in earnings estimates over the past five years was a much more modest 2.3%. Markets may be more interested to hear what corporate leaders have to say about the future, particularly in light of an uncertain economic landscape created by recent banking issues. One potential concern is whether a tighter lending environment will emerge as banks look to manage risk. Fed Chair Powell referred to this possibility in his post-Federal Open Market Committee meeting press conference when he suggested that financial conditions may have tightened more than traditional signs are reflecting. Over the last three quarters, the number of S&P 500 companies citing “recession” on their earnings calls fell from 241 to 148. Investors may look to see whether these diminishing concerns over recession reverse in the weeks ahead. ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Does The 4% Rule Hold Up? URL: https://www.patriotinvestment.com/blog/does-the-4-rule-hold-up/ One of the biggest challenges of planning for retirement is figuring out how much you can spend during your golden years. Retirement income planning requires careful preparation, and budgeting. A popular retirement income planning guideline is the 4% rule, which suggests that you live off 4% of your total investments during the first year of retirement. Then, you readjust every year in retirement based on your changing needs and inflation. But does this rule hold up? Is the 4% rule a good strategy for you as you plan for living in retirement? Let's dive into this rule a little deeper and consider whether it's right for you. What Is the 4% Rule? The 4% rule is a guideline for managing your retirement income and suggests only withdrawing up to 4% of your savings each year of retirement. For example, if you have $1,000,000 saved for retirement, you will withdraw $40,000 the first year. The idea behind this rule is that it's easy to calculate and provides a benchmark for how much you should spend in retirement. The goal of retirement income planning is to make your money last as long as you do, and the 4% rule is designed to help retirees do that. Economists calculated 4% by considering both average returns on investments and potential market corrections. They also considered the average life expectancy of retirees. In 1990, when the rule was established, the average American man was expected to live 15 years after age 65, and the average woman just under 20 years. Using the 4% rule, retirees could expect to have about 35 years of living expenses. So, the question remains: Does the famed 4% rule hold up today? Let's take a look. Does the 4% Rule Hold Up Today? Because the 4% rule is so popular among economists, it's fair to wonder whether or not it's still relevant today. The short answer: maybe. Every retirement is different, so it's impossible to have one “rule” that works for everyone. While the 4% rule offers good insight into retirement income planning, it's more helpful to look at it as a guideline than a rule. Today's retirees face so many factors that everyone can't subscribe to a concrete “rule,” even if it is popular. When planning out your retirement income, some things to consider include your investments, expenses, health, longevity, and goals. Your Investment Portfolio The 4% rule assumes that “you have about 60% of your investments in equities and 40% in fixed income assets,” and it's based on a tax-deferred portfolio like a traditional IRA or 401(k) and “assumes that you'll owe tax on withdrawals.” If you're spending from a Roth, where withdrawals aren't taxed if you meet essential criteria, “your calculations may be different.” Your Expenses Everyone's expenses will look a little different in retirement, depending on where you live, how much money you have saved for retirement, your health care expenses, your hobbies, and whether you work part-time. Your Healthcare Expenses It's no surprise that healthcare costs have gotten more expensive since the 4% rule was established in the 1990s. Today, the average 65-year-old couple can expect to spend over $300,000 on doctor's appointments and medical bills in retirement. Healthcare expenses are a significant part of your retirement income planning. Your Life Expectancy In addition to having increased healthcare expenses, today's retirees live longer than they did 30 years ago. The average life expectancy in 1990 was 75.19 years; in 2022, it was 79.05 years. As you can see, many factors go into your retirement income planning, and properly preparing for retirement requires much more consideration than just sticking to a blanket guideline like the 4% rule. Every retirement is going to look a bit different.  That is why Patriot encourages all its clients to go through a comprehensive financial plan.  Your Patriot Advisor can provide more clarity and context to your specific situation!  If you have any questions or would like to go through a financial plan please let us know. --- ## May Is Military Appreciation Month: 5 Financial Tips For Every Military Family URL: https://www.patriotinvestment.com/blog/may-is-military-appreciation-month-5-financial-tips-for-every-military-family/ In honor of Military Appreciation Month, we recognize those in the military and their families. Military members and their families face one-of-a-kind challenges, such as deployment to conflict zones, overseas assignments, and the constancy of change - all of which make dedicating time to personal finance a challenge. Luckily, there are special tax breaks and other benefits unique to service members. Follow these five tips to take advantage of potential benefits and simplify your military family’s personal finances. Tip #1: Focus on Retirement Savings The Thrift Savings Plan is one way to save for retirement that is specific for military members. You may also have access to a Roth TSP, which acts similarly to a Roth IRA but without income restrictions. Contributing to a Roth TSP does not lower your taxable income now, but you will be able to withdraw the money tax-free when you enter retirement. Tip #2: Save with High Interest The Savings Deposit Program allows eligible personnel serving in designated combat zones to deposit up to $10,000 and earn up to 10 percent in annual interest. 1 This can be an effective way to boost your savings for the future. By comparison, savings accounts at various banking institutions frequently offer less than one percent in annual interest rates. Tip #3: Tax-Free In, Tax-Free Out Saving in a Roth IRA may be a good idea if you receive tax-free combat-zone pay. This allows you to deposit tax-free income and take tax-free qualified withdrawals in retirement. You can also withdraw contributions to a Roth IRA at any time, without income taxes or penalties. Tip #4: Take Advantage of Your Education Benefits The Post-9/11 GI Bill covers the full cost of in-state tuition, up to 36 months, plus housing fees and $1,000 a year to use for books and supplies. 2 You can even transfer these benefits to your spouse or children if you do not plan to use them yourself. Tip #5: Low-Cost Life Insurance Backed by the Department of Veterans Affairs, the Servicemembers’ Group Life Insurance protects your family with low-cost term life insurance coverage. If you are an eligible service member, you may be automatically enrolled in this program. 3 Depending on your status or branch, you may have other life insurance options available to you as well. If you have not already, you will want to review your options and determine whether your coverage is up to date. More Ways to Maximize Your Money Aside from specialized programs and offerings, there are a few things every military family can do to help get or keep their financial standings in order. Set Goals Like any mission, success begins with articulating the goals you want to pursue. Make sure they are measurable, attainable, and timely. Establish a Budget A budget can serve as the foundation of financial discipline. Having a weekly or monthly budget set in place can help you control spending impulses that lead to greater debt levels. Pay Yourself First Determine how much money you need to set aside to reach your savings goal, deduct this amount from your paycheck and budget yourself to live within the limits of what remains. Establish an Emergency Fund Uncertainty marks the lives of military families, so be sure you have an emergency fund that allows you to be as prepared as possible for these changes. Control Your Debt Debt is one of the enemies of financial independence. Focus your efforts on paying down high-interest debt, like credit cards or personal loans. As you think through your financial goals, remember that acting today is your first and most important step. Take advantage of all your unique benefits and opportunities so that you and your family can live your best financial life. Please contact your Patriot Advisor if you have any questions! 1. https://www.investopedia.com/special-savings-plans-for-military-5193105 2. https://www.investopedia.com/terms/p/post911-gi-bill.asp 3. https://www.va.gov/life-insurance/options-eligibility/sgli/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## The Triple Tax Benefits of HSAs URL: https://www.patriotinvestment.com/blog/the-triple-tax-benefits-of-hsas/ Why do clients inquire about Health Savings Accounts? They have heard about what an HSA can potentially offer them: a pool of tax-exempt dollars for health care, a path to tax savings, even a possible source of retirement income after age 65. You must enroll in a high-deductible health plan (HDHP) to have an HSA, a health insurance option that is not ideal for everybody. You fund an HSA with pre-tax contributions. Some employers will even provide a matching contribution on your behalf. HSAs offer you three potential opportunities for tax savings. Your account contributions are pre-tax (that is, tax deductible), the earnings in your account grow tax free, and you can withdraw funds from your HSA, tax free, so long as they are used to pay for qualified health care expenses, such as deductibles, co-payments, and hospitalization costs. (HSA funds may not be used to pay health insurance premiums.) HSA Tax Benefits A large draw for many are the tax benefits inherent to HSAs: • Contributions through an employer are always pretax • You can invest the funds after your account balance reaches a certain level • Distributions for qualified health expenses aren't taxable At age 65, you can even turn to your HSA for retirement income. Current federal tax law allows an HSA owner 65 and older to withdraw HSA funds for any purpose, penalty free. You can use the HSA to pay Medicare premiums (other than premiums for a Medicare supplemental policy, such as Medigap) or extended-care insurance premiums. No Required Minimum Distributions (RMDs) are ever required of HSA owners. Keep in mind, however, if you take a distribution that is not used for a qualified medical expense, the money may be taxable and a penalty could apply, depending on your age. Why is an HSA less attractive for some people? Well, the first thing to mention is the related high-deductible health plan. When you enroll in one of these plans, you agree to pay all (or nearly all) of the cost of medicines, hospital stays, and doctor and dentist visits out of your pocket until that high insurance deductible is reached. The other hurdle is just saving the money. If you pay for your own health insurance, just meeting the monthly premiums can be a challenge, especially if your household contends with other significant financial pressures. There may not be enough money left over to fund an HSA. Also, if you are a senior (or a younger adult) with a chronic condition or illnesses, you may end up spending all your annual HSA contribution and reducing your HSA balance to zero year after year. That works against one of the objectives of the HSA – the goal of accumulation, of growing a tax-advantaged health care fund over time. Additionally, unlike a Flexible Spending Account (FSA), which is funded with pretax dollars but must be used by a specific deadline, HSA contributions can remain in your account to be used for future medical bills at any time. In short, this means there is no "use it or lose it" penalty. Keep in mind that if you spend your HSA funds for non-qualified expenses before age 65, you may be required to pay ordinary income tax as well as a 20% penalty. After age 65, you may be required to pay ordinary income taxes on HSA funds used for non-qualified expenses. HSA contributions are exempt from federal income tax; however, they are not exempt from state taxes in certain states. How to use your HSA The Internal Revenue Service (IRS) or your HSA provider are great sources when getting started. The IRS offers an interactive assessment tool that can take the guesswork out of what qualifies as an HSA-friendly expense. If you would like to explore opening an HSA, your first step is to consult an insurance professional to see if you can enroll in a qualified HDHP, unless your employer already sponsors such a plan. Finding an HSA provider is next.  If you have an HSA and would like to learn more, please contact your Patriot advisor today! ###### --- ## Upsizing vs. Downsizing In Retirement URL: https://www.patriotinvestment.com/blog/upsizing-vs-downsizing-in-retirement/ When the kids leave the nest and the family home seems too big and requires too much work to maintain, many retirees opt for new living arrangements. For many, the dream is to relocate to a warmer climate and a small patio home. Others decide to stay put and rent out a portion of a large house to help with finances. Many others choose to remain in their current living conditions throughout their golden years. No matter what living situation you choose, the key is to plan early and plan carefully. Weigh all your options, consider the financial costs, and research new locations carefully. Let us look at the pros and cons of downsizing and upsizing in retirement to help you make the best choice. ### The Benefits of Downsizing According to TD Ameritrade, 42% of Americans plan to downsize in retirement. Whether that choice is because they want to move to a warmer climate, want to be closer to family, or want to limit their housing expenses, downsizing has many benefits. 1 Financial Freedom Having financial freedom is a top concern for most seniors. Selling big and buying small may free up capital to purchase a new home or condominium and invest the proceeds for extra income or pay off outstanding debt. Less Maintenance Maintaining and cleaning a smaller home is a lot easier and requires less upkeep. Townhomes and condominiums in retirement communities often include yard care and other services for seniors. Most communities have homeowners’ association fees, so it is important to understand these costs and what they cover. Lower Monthly Costs Monthly fixed expenses, such as utility bills, property taxes, and upkeep, are less expensive for most small homes. In addition, scaling back to one car will save you money on insurance and auto maintenance. A Simpler Life Living simply means that you now have time to enjoy the things you love. Maybe, it is picking up an old hobby, attending special interest classes, traveling, or simply good old-fashioned relaxing. Having fewer housing costs and maintenance means more time to spend on other things. ### The Considerations of Downsizing Of course, downsizing does have some drawbacks. Here are some to consider: The Stress of Selling Your Home Selling your home and moving is stressful. There are no two ways about it! Decluttering, repairs, and staging to get a home ready to sell can be time consuming and costly. It also takes organization and the will to part with what you no longer need or that will not fit into a smaller home. Parting with lifelong treasures can be an emotional ride. Less Privacy Less privacy is often the tradeoff of moving into smaller living quarters. There is less room to spread out in the house, and close neighbors are usually one patio or porch away in retirement communities. Less Space and Storage Space is at a premium in small homes. Cramped quarters and less space are things to consider if you love to entertain and have family and friends over. Storage unit facilities are located near many retirement areas and are an option for those needing extra storage space that a smaller place just does not have (but that is one more expense to add to your retirement budget). Expensive It's expensive to move. Consider moving costs, real estate transaction fees, and tax liabilities when planning to downsize. ### The Benefits of Upsizing in Retirement One thing that's not often talked about in retirement is seniors choosing to upsize in their retirement, rather than downsize. There are many benefits to buying a bigger and newer home. 2 Less Stress Newer homes typically need less maintenance and renovations, which may become more difficult with aging. Buying a newer home can take the stress out of worrying about making much needed upgrades to your home. More Space Upsizing makes sense if family and friends visit often, or if extended family shares the home. Option to Earn Extra Income Earning income from a larger home often makes financial sense for retirees. Upsizing offers an opportunity to rent out additional living space in unused rooms, basement apartments, or a backyard accessory dwelling unit. Considerations of Upsizing Of course, while there are some benefits to upsizing, there are also some considerations. The main consideration is how much it will cost to keep your large home. Retirement income planning is the key to living a comfortable retirement, so it is important to run the numbers or work with a financial advisor to determine whether staying in your home is the right decision for you. No matter whether you choose to downsize or upsize, the strategies for transitioning are the same. Research all financial aspects of a move, consider tax obligations, visit areas, or even rent for a while where you might relocate, and lastly, have all your financial ducks in a row, so no unforeseen problems arise.  If you have any questions or want to talk through your options, please contact your Patriot advisor today! 1. https://www.annuity.org/retirement/lifestyle/downsize-for-retirement/# 2. https://blog.massmutual.com/post/upsize-retirement --- ## Teaching Children Financial Literacy URL: https://www.patriotinvestment.com/blog/teaching-children-financial-literacy/ Parents share a lot of private things with their children in the hope that the information will help them grow into successful adults. However, there is one topic most parents try to avoid talking about at all costs. And no, it is not what you are thinking. For many parents, the idea of having the "money talk" with their kids is a terrifying thought. The biggest reason parents avoid the topic is they don't believe they know enough about money themselves and fear they will give their children the wrong information. Although discussing the topic of money with your kids can be uncomfortable, it is a necessary step in their development. Few schools teach courses on how to handle money the right way. Without learning money management skills at home, your kids are going to be in for a few nasty surprises when they get older. Are you worried about your children's money skills? Start with the following four tips for teaching financial literacy to your kids. 1. Let Kids Experiment One effective way to help kids learn how to make budgets is to give them a chance to make mistakes on their own. A small allowance each week is the perfect incentive for children to learn how to budget. Do they want to blow this week's money on candy and a cheap toy or save up a few weeks to get something they really want? Of course, some children will still be impulsive and want to spend their funds right away, but better they learn to make mistakes with $10 than $10,000. 1. Include Children in Household Budgeting Do you have a shopping or entertainment budget each month? Try including an older child in budget planning for the next month. Kids learn quickly when they must stay home bored for two weeks because they blew the entertainment fund during the first half of the month. Another great idea is to set a grocery budget for an upcoming trip, make your week's list, and then take your child to the grocery store with you. As you place items in your cart, have your child add up the cost of each item until you hit your limit. This is another great exercise in making choices based on limited funds. 1. Gameify It Turn budgeting and saving money into a game. Give your shopping lists to your younger kids and let them search online or in the newspaper for coupons and sales. Maybe you could promise to put a percentage of the money they save into a bank account for them to purchase something special down the road. You could even encourage older children to learn lifelong investment skills by participating in a stock trading simulator such as The Stock Market Game . 1. Make Them Earn It Knowing how to save, invest, and spend money is important, but one of the best things you can do for your children is to instill a good work ethic in them by letting them earn money on their own. Whether your teen works part-time at the movie theater or you help your little ones start a lemonade stand, the willingness to work hard and be rewarded is one of the best financial lessons you can pass on to them. These tips are only the start. Use the opportunity of teaching your kids about financial literacy to learn more about it yourself! --- ## Retirement Strategy: When And How To Update Your Retirement Plan URL: https://www.patriotinvestment.com/blog/retirement-strategy-when-and-how-to-update-your-retirement-plan/ While you and your Patriot Advisor will work to create an overall retirement strategy, this does not mean that you will not need to make changes along the way. So, the question remains: When should you revisit your retirement strategy? First, when you have had a major change in your career, that is a good time to talk about your strategy. That change can be getting a new job, quitting, or being laid off. It can also be a promotion or a raise. Starting or selling a business enterprise is another cause for conversation. Situations in which there has been a major change in your or your family's lives are good times to reconnect with your Patriot Advisor, as well. The following events are situations in which your beneficiaries might change: marriages, divorces, births, and deaths. Another reason to contact your Adviser could also be as simple (or complicated) as moving to another state, country, or even just up the street. If one of your family members has become a caregiver, this could be an important conversation starter. While some conversations will happen at set times, such as when you or your spouse turn the key ages of 59, 65, and 73. Another time to notify your trusted financial professional is if your health has deteriorated; this includes both mental and physical health. Many of these conversation-worthy situations are financial in nature. For example, if your risk capacity has changed. What does that mean? It means a change in your ability to weather a financial risk, such as needing more cash or wealth at your disposal through some sort of windfall. This can also go in the other direction if you experience a considerable loss. Another consideration is whether the value of your assets has changed, altering your wealth profile for good or for ill. How about gifting, whether within your family or to a charity? A significant gift, such as a philanthropic endeavor, would be a reason to look at your strategy. Have you purchased or sold a major asset on the level of a house or business? How about a major change to your debt profile, whether it is an increase or a decrease? It can even be as simple as having a major change of mind about your estate strategy, including changing beneficiaries or altering gifts you intend for charities and other entities. There are other reasons to take another look at your financial strategy that may have nothing to do with your financial situation directly but instead relate to outside factors. A major change in tax policy or law is one example. Another example would be if you have made some changes to your legal and financial team or plan to name a different executor to your will. You have had a change in your household that has upsized or downsized your lifestyle. Lastly, you have had a major mishap, like misplacing or losing important documents. Finally, there is always the possibility that it has been a year or two and it is just time to look over your strategy and see if there is anything that needs your attention. Whatever the reason, big or small, your trusted Patriot Advisor will be more than happy to help you through whatever concern or transition you are facing --- ## Q2 2023 Market Commentary URL: https://www.patriotinvestment.com/blog/q2-2023-market-commentary/ U.S. Markets   Stocks extended their rally in the second quarter, boosted by cooling inflation, the prospect of a shift in monetary policy, and enthusiasm over artificial intelligence.   For the three months ending June 30, the Dow Jones Industrial Average added 3.41%, while the Standard & Poor’s 500 Index picked up 8.74%. The Nasdaq Composite, which led in the first quarter, led again, gaining 12.81%.   Inflation Breaks   The stock market’s climb over the second quarter did not come without occasional bumps, including a drawn-out political battle over raising the debt ceiling.   One important driver that helped overcome these headwinds was the continued progress in the fight against inflation. Year-over-year inflation broke decisively lower in both April and May reports. The June report was released on July 12 and showed continued easing of inflation.  In fact, consumer prices rose 3%, which was the slowest annual pace in over two years. Support from Corporate Reports   Another driver was corporate reports. With 99% of the companies comprising the S&P 500 reporting, 78% reported a positive earnings surprise, while 75% reported a revenue surprise. The earnings beat percentage was the best performance relative to Wall Street estimates since the fourth quarter of 2021.   Spotlight on Artificial Intelligence   These past corporate earning seasons also saw a dramatic development—a heightened focus on artificial intelligence (AI), with 110 companies mentioning AI on conference calls. This was a 41% increase from the previous quarter.   The excitement over AI centers on its potential economic opportunities. One investment bank says AI may increase economic productivity by 1.5% annually for the next ten years.   More Names Join Rally   As welcome as this AI enthusiasm may have been, it exacerbated concerns that stock market returns have been concentrated in a handful of mega-cap stocks and just a couple of industry sectors.   Encouragingly, market breadth steadily improved during the quarter. Despite the undeniable leadership of just seven mega-cap stocks, an increasing number of stocks are seeing better price momentum. For example, as of June 14, 61.8% of S&P 500 stocks were trading above their 50-day moving average.   Sector Scorecard for Q2   The strong quarter performance lifted most sectors with gains in Communications Services (+13.89%), Consumer Discretionary (+15.36%), Financials (+5.19%), Health Care (+2.65%), Industrials (+6.58%), Materials (+3.98%), Real Estate (+2.91%), and Technology (+16.23%). Losses were sustained in Consumer Staples (-1.06%), Utilities (-3.87%), and Energy (-1.54%).   World Markets   The MSCI-EAFE Index gained 1.87% in the second quarter as overseas markets were hobbled by persistently elevated inflation in multiple major markets and economic softness, exemplified by Germany entering a recession and a faltering China reopening.   European markets were mixed in Q2, with gains in France (+1.06%), Italy (+4.12%), Spain (+3.90%), and Germany (+3.32%). The UK lagged, falling 1.31%.   Pacific Rim markets were also mixed, with Hong Kong down 7.27% while Japan rose 18.36%.   What Investors May Be Talking About in July   In July, companies will start to report their Q2 results, which will provide fresh insights into the economy’s health. Corporate results may go a long way in signaling to investors whether the first-half rally in stock prices was warranted or premature and deserving of some valuation adjustment.   Additionally, the two-day Fed meeting ends on July 26. Investors will learn whether the Fed plans to increase rates or hold steady. Much may depend on the update on consumer prices, set for release on July 12.   At the June meeting, the Fed elected to pause on rate hikes, deciding to assess the economic impact of the cumulative interest rate increases that started last year. The Fed will also give its outlook for inflation in the second half. ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## 8 Step Summer Financial Checkup URL: https://www.patriotinvestment.com/blog/8-step-summer-financial-checkup-2/ It seems like when summertime hits, time slows down. The hustle and bustle of the holiday season are over, taxes are complete, and vacation days are scheduled. If you find yourself with some extra time on your hands in the upcoming months, you may want to use this opportunity to check in on your family’s finances. While conducting a thorough analysis of your wealth may sound intimidating, we have broken the process down into eight simple steps to keep you focused and on track.   Step 1: Analyze Your Budget   In early 2023, the Bureau of Economic Analysis reported that the average personal savings rate was only 4.7%. An effective way to avoid spending more than you’re earning is to step back and take stock of your monthly and annual budgets. If you do not have a budget at all, use this time to make one. 1   Many credit cards or banks will offer categorical breakdowns of your spending, which can be a wonderful way to find out what you are spending the most money on and to determine if there’s room to cut back. To get the best look at your spending habits, you may want to evaluate your savings and spending record over the past 6–12 months.   Step 2: Seek Out Tax Savings   Do you scramble to pull your paperwork together every March and April? This year, try taking a different approach to the tax season by evaluating your tax-saving strategies early. You may want to work with your financial planner or tax professional to create a mock tax return, as this can help you understand your withholding options and tax-saving opportunities, such as 401(k) or 403(b) options, IRAs, and HSA contributions.   Focus on filing any time-sensitive deductions and brush up on changes in tax laws. Reaching out to your tax professional could mean that you have more time to prepare and strategize together for next year’s returns.   Step 3: Tackle Your Debt   An alarming 35% of adults carry credit card debt from month to month. If you are guilty of putting off managing your expenses, now’s the time to start planning to pay them off. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it is the bad debt (credit card debt, student loans, etc.) that you will likely want to focus on managing and eliminating. 2   While you could be tempted to simply pay off what shows up on the bills each month, you may want to create a debt summary to get a better idea of your total debt’s big picture. By creating an annual debt summary, you and your financial advisor can better understand whether you are gradually working down your amount of debt or falling farther into the hole.   Step 4: Revisit Short and Long-Term Goals   A lot can change in a year—marriage, death, divorce, growing your family, and experiencing a major career change. Even seemingly small adjustments, such as a job promotion or sending a kid off to college, can have a significant impact on your financial status. This is why it is important to regularly review your long-term goals and progress toward them while revisiting and evaluating your shorter-term goals.    Step 5: Evaluate Coverage and Providers   As you are reviewing your budget and expenses, take the extra time to evaluate your current providers and coverage options thoroughly. This includes your internet, cable, and wireless service providers, in addition to your insurance coverage options. If you tend to set up auto payments and forget about your monthly bills, this could be an opportune time to revisit what it is you are paying for.   Step 6: Reassess and Rebalance Your Portfolio   It is important to visit your portfolio and risk tolerance regularly to help keep it in line with your tolerance, goals, and market conditions. While most managed portfolios are rebalanced automatically, it is important to take stock of your investments’ big picture, as doing so can help you determine if you need to diversify differently or reassess your risk tolerance.   Step 7: Review Your Retirement Savings   Whether your retirement is decades down the line or within the upcoming year, reviewing your retirement savings annually is a great habit. Take the time to assess whether you are maxing out your retirement contribution options and how the savings you are making today will translate into retirement income later down the line.   Step 8: Assess Your Estate Plan   It is not fun to plan for the worst-case scenario, but leaving your family with an outdated will, trust, or estate plan can lead to serious issues down the line. As you assess your legacy plan annually, make sure you are accounting for any newly acquired assets (houses, cars, pets, etc.) while checking that your designated beneficiaries are still willing and able to assist in the event of your passing.   While you are likely daydreaming of reading books, going to beaches, and barbecuing in your backyard this summer, do not forget to do yourself a favor and squeeze in some financial assessment as well.  If you have any questions, please do not hesitate to contact your Patriot Advisor!   1. https://www.bea.gov/data/income-saving/personal-saving-rate   2. https://www.bankrate.com/finance/credit-cards/more-americans-carrying-debt-and-many-dont-know-apr/#young   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Why Many Americans Retire Earlier Than Planned URL: https://www.patriotinvestment.com/blog/why-many-americans-retire-earlier-than-planned/ The traditional retirement age in the United States is 65, the age at which most people are eligible to begin receiving full Social Security benefits. However, many people feel the allure of leaving the workforce much sooner. Many Americans are deciding to retire earlier than planned, whether by choice or because of other circumstances. According to the 2023 Retirement Confidence Study, workers report retiring at a median age of 62 years. 1 Let’s examine why many Americans retire earlier than planned and explain some of the benefits (and considerations) of retiring early. Why Do People Retire Early? The decision to retire early is often made through a mix of personal choices and external factors. Let’s dive into why some people may retire sooner than anticipated. Health Reasons A significant reason for people to opt for early retirement is that they experience health-related issues. If health conditions make it challenging to continue working, or a person desires more time to focus on their health, early retirement may be a viable option. Job Loss or Job Dissatisfaction Sometimes, the decision to retire early is a result of the job. Job loss, particularly later in life, can lead to early retirement, especially when finding new employment becomes challenging. Similarly, feelings of burnout, stress, or dissatisfaction with a job can make early retirement more appealing. Family Care Many people choose (or are forced) to retire early to care for loved ones. They may need to care for an aging parent, spouse, or family member with health issues. The desire to invest more time in family life can also be a strong pull toward early retirement. Financial Security For some, diligent saving and wise investments may provide the financial security to retire early. People who have saved enough to support themselves without needing to work may have the luxury of retiring on their own terms. Pursuit of Passions Lastly, many retire early to pursue passions, hobbies, or personal projects they couldn't focus on during their working years. This could range from traveling around the world to starting a business, returning to school, or simply enjoying a leisurely lifestyle. The Benefits of Retiring Early Retiring early brings with it a wealth of benefits. The most obvious is giving people more time to do the things they love. These extra years of freedom can lead to a rich, fulfilling life that might not be possible when a full-time job dominates their days. In addition, retiring early can be good for people’s health. Retirement means less stress, more time for physical activity, and the ability to focus on a healthy diet. Numerous studies have shown that retirement can lead to improvements in both mental and physical health. 2 Considerations of Retiring Early As enticing as early retirement sounds, it is not without its drawbacks. One significant consideration is the financial aspect. When people retire before the full retirement age, they may not be able to receive full Social Security benefits. 3  This means a potential reduction in monthly income, which can impact retirement income planning. Health care is another crucial consideration. Most Americans become eligible for Medicare at age 65. People who retire before this age will need to consider how to cover their healthcare costs. This can be an additional burden on their retirement savings, if not appropriately planned. Early retirement can be possible with diligent saving and planning, but it also comes with several considerations like living expenses, potential income in retirement, and retirement savings.  If you have any questions about retiring early, please contact your Patriot advisor. 1. https://www.nytimes.com/2023/04/03/well/live/retirement-age-health.html 2. https://www.ssa.gov/oact/quickcalc/early_late.html 3. https://money.usnews.com/money/retirement/aging/articles/what-is-the-average-retirement-age This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What Documents Should I Keep vs. Shred? URL: https://www.patriotinvestment.com/blog/what-documents-should-i-keep-vs-shred/ It’s easy to throw up your hands in exasperation when it comes to filing papers and documents at home, and you’re likely tempted to shred everything to be done with it. Still, keeping good records will reduce clutter, prevent identity theft, and reduce stress. No more searching for needed paperwork! The principles of good record management for businesses also pertain to personal recordkeeping. They are accountability, transparency, integrity, protection, compliance, and accessibility. Consider the following principles (and time frames) when deciding what to keep or shred for your document management plan. Documents to Shred Immediately The following are documents that you should shred immediately to protect your personal information: • ATM receipts and reconciled paper bank statements • Old credit card bills (after charges have been verified) • Paid utility bills • Expired warranties • Canceled and voided checks • Junk mail • Store receipts (after the return period is over) • Any statement with your credit card number, social security number, phone number, or other personal information Documents to Shred After 7 Years While you should shred some documents immediately, some should be kept for about seven years to refer to their information. 1 Here’s a list of what to shred after seven years: • Paperwork related to an estate settlement or a loved one’s death • IRS tax returns (the IRS has three years for an audit, which can be extended to six years if an investigation is warranted) 2 • Tax-related receipts • Other tax forms and tax records • W-2s and 1099s • Investment records (shred them seven years after you’ve sold the securities or closed the investment accounts) Documents to Shred After 10 Years You should keep some documents for reference for up to ten years, including: • Medical records, such as hospital discharge papers, prescriptions, and medical tests • Receipts for home repairs (kept receipts until you sell your home and need them to calculate potential capital gains taxes) • Purchases with a warranty (i.e., major appliances) Documents You Should Never Shred Of course, there are some important documents you should never shred and have been recommended by Federal Emergency Management Agency (FEMA) as an Emergency Financial First Aid Kit for paper documents to have handy in an emergency. 3  Storing these documents in a loose-leaf binder with plastic sleeves is an excellent way to keep them safe and easily accessible: • Legal records • Birth certificates • Social security cards • Divorce decrees • Death certificates • Wills or living wills • Powers of attorney • Marriage licenses or prenup agreements • Passports • Insurance documents • Mortgage documents • Vehicle purchase or lease documents (until you sell the vehicle) • Stock and bond purchase documents (as long as you own them) Once you know what documents to shred and systematically file the rest, you’ll be ready to file taxes, manage your budget, and easily locate the required papers in case of legal actions or audits. You can rest easy, knowing your paperwork is all in order—safe and secure.  If you have any questions about what to keep or shred please contact your Patriot advisor. 1. https://www.identityguard.com/news/to-shred-or-not-to-shred-tax-season-preparation 2. https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits# 3. https://www.fema.gov/sites/default/files/documents/fema_effak-toolkit.pdf This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## September Is National College Savings Month URL: https://www.patriotinvestment.com/blog/september-is-national-college-savings-month/ The leaves are changing, the weather is cooling down, and football is finally back. There is always a lot happening in fall and after a pause of more than three years, interest on federal student loans resumed last Friday and, in October, more than 43 million Americans will need to start making payments again. But wait, there’s more! September is also National College Savings Month, a time to celebrate the power of investing in education and securing a brighter future for our children and grandchildren. What is National College Savings Month? National College Savings Month is an annual observance designed to raise awareness about the importance of saving for higher education. It’s a chance to shine a spotlight on the potential of college savings plans and their impact on shaping students’ lives. In today’s world, with the growing cost of higher education, saving for college can seem a challenging task. However, with a bit of planning and thoughtful decision-making, we can create a brighter future for our children. In honor of National College Savings Month, let’s explore tips for saving for college and information about some of the most popular college savings plans. Tips for Saving for College According to the Education Data Initiative, the average cost of attending college (i.e., taking a four-year undergraduate degree program at a postsecondary institution) is $26,436 per student per year. 1  With this figure in mind, it’s clear why saving for college is a major financial goal for many parents. Here are some tips to help save for college: Start Early Early planning is key to successfully saving for college. By starting to save as soon as possible, you can take advantage of the power of compounding interest, allowing your funds to grow over time. Time is a valuable ally in building a substantial college fund. Budget Wisely Creating a carefully planned budget is essential. Knowing your income, expenses, and how much you can allocate to your college fund each month will help you stay on track and meet your goals. Even modest contributions can make a significant difference over time—remember, consistency is key. Choose the Right Investment Option Selecting the appropriate investment option is critical to optimizing your college savings strategy. Options such as a 529 plan, a Coverdell Education Savings Account (ESA), or a custodial account have unique features and benefits. Research and compare these options to find the one that aligns best with your college savings goals. How to Save for College There are many different college savings plans and accounts available, and it is important to choose the one that best suits your financial goals and needs. Here are three of the most common college savings vehicles: 529 Plan A 529 plan is a tax-advantaged savings plan designed to help families save for future education expenses. Contributions to a 529 plan are made with after-tax dollars, and the earnings grow tax-free. 2  When withdrawals are used for qualified education expenses, they are exempt from federal taxes. Each state typically offers its own 529 plan, and you may have the flexibility to choose any state’s plan that suits your preferences. Some states may also provide additional tax incentives to residents. Coverdell Education Savings Account (ESA) A Coverdell ESA is another tax-advantaged option for college savings. Like a 529 plan, earnings in a Coverdell ESA grow tax-free. Contributions are limited to $2,000 per year per beneficiary, and the funds can be used for qualified elementary, secondary, and higher education expenses. 3 Eligibility for a Coverdell ESA is subject to an income test, so this type of savings vehicle may not be available to everyone. Nevertheless, it can be a valuable educational savings tool for those who qualify. Custodial Account Opening a custodial account, such as a UTMA or UGMA account, is a straightforward way to save for a child’s education. 4  With this type of account, an adult custodian manages the funds on behalf of the child until they reach the age of majority. There are no restrictions on how the funds can be used, which provides considerable flexibility. It’s important to note that custodial accounts lack the tax advantages of 529 plans and Coverdell ESAs; however, they can still be a viable option for some investors. National College Savings Month is an excellent opportunity to take proactive steps toward securing a solid educational foundation for your loved ones. While the journey may seem challenging, remember that every contribution counts. Contact your Patriot Advisor today to learn more about the different options available for college savings! 1. https://educationdata.org/average-cost-of-college 2. https://www.savingforcollege.com/intro-to-529s/what-is-a-529-plan 3. https://www.irs.gov/taxtopics/tc310 4. https://investor.vanguard.com/accounts-plans/ugma-utma# This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What is the Fed, and What Do They Do? URL: https://www.patriotinvestment.com/blog/what-is-the-fed-and-what-do-they-do/ If you’ve ever turned the tv to a financial news channel, you’ve probably heard the term “the Fed.” But who, or what, exactly is the Fed? And why does it matter to you.  Here, we explain the Federal Reserve System, or the Fed, and explore how its decisions can affect your everyday life. What is the Fed? “The Fed” stands for the Federal Reserve System, the USA’s central banking system. It was established by Congress in 1913 and is an independent entity that was designed to bring stability and integrity to the country’s monetary and financial system. 1 The Fed has five general functions, including: • Conducting the nation’s monetary policy. • Promoting the stability of the financial system. • Promoting the safety and soundness of individual financial institutions. • Fostering a safe and efficient payment and settlement system. • Promoting consumer protection and community development. The Fed also has dual objectives, which are often referred to as the dual mandate. 2  The first objective is to promote maximum sustainable employment, which translates to as many Americans having jobs as possible while keeping inflation steady. The second objective is to maintain stable prices for the goods and services we purchase. In doing so, the Fed aims to foster a healthy economic environment in which businesses can grow and people can build wealth. How Often Does the Fed Meet? The Federal Open Market Committee (FOMC) is the branch of the Fed that is responsible for making decisions about the money supply and interest rates and meets regularly to evaluate the economic conditions and adjust its policies accordingly. 3  The FOMC meets eight times a year, or about every six weeks. It consists of twelve members: seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four rotating Reserve Bank presidents. The FOMC’s discussions and decisions significantly impact the nation’s economy. In the FOMC meetings, the Fed makes crucial decisions about monetary policy, especially around the federal funds rate, which is the interest rate at which banks lend to each other. This rate indirectly affects other interest rates, such as those for mortgages, car loans, and credit cards, as well as the rates paid on savings accounts and money market funds. The Fed also makes decisions about quantitative easing measures, which involve the Fed buying government securities or other securities from the market to lower interest rates and increase the money supply, encouraging lending, and investment. 4 How the Fed Impacts You Decisions made by the Fed have a direct impact on the average investor. When the Fed raises or lowers interest rates, the cost of borrowing and the return on savings and investments are impacted. When the Fed lowers interest rates, borrowing becomes cheaper, which can lead to increased spending by consumers and businesses. This surge in demand can boost the economy and potentially lead to higher stock prices. However, lower interest rates mean savers and investors earn less on their money, which can push them to look for higher returns for their investments. Conversely, when the Fed raises interest rates, borrowing becomes more expensive, which can slow economic activity. This can lead to lower stock prices, as businesses might see their revenue decrease, and consumers may cut back on spending. However, savers and bond investors can benefit from higher interest rates as they earn more from their investments. The Fed plays an instrumental role in steering the economic course of the nation. Its decisions affect not only big businesses and banks but also the average American and their financial future. By understanding the workings of the Fed and its influence on the economy, individual investors can make more informed decisions about their investments. 1. https://www.federalreserve.gov/aboutthefed.htm 2. https://www.investopedia.com/articles/investing/100715/breaking-down-federal-reserves-dual-mandate.asp 3. https://www.investopedia.com/terms/f/fomc.asp 4. https://www.forbes.com/advisor/investing/quantitative-easing-qe/ This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Medicare Open Enrollment Begins October 15th. What Does That Mean For Me? URL: https://www.patriotinvestment.com/blog/medicare-open-enrollment-begins-october-15th-what-does-that-mean-for-me/ Medicare’s open enrollment period happens once a year between October 15 and December 7. During this time, current Medicare beneficiaries have the option to adjust their coverage for the coming year. This can be a useful option for those who may have recently changed medication, underutilized their current coverage or found they could use additional benefits. 1 How to Search for Medicare Plan Options It shouldn’t take a ton of research to determine what your current coverage is and what options are available for you during this coming enrollment period. You should receive information from the government regarding your current Medicare coverage each year. Even if your coverage hasn’t changed within the last few years, it’s important to still take time to review your current coverage and identify any areas for improvement. There are tools available online or by phone to learn more about other plans if you’re thinking about switching or changing coverage. Medicare offers a  Plan Finder tool  online or you can call 1-800-MEDICARE to find out about new Advantage plans in your area. Or check out the  State Health Insurance Assistance Program  site to find help in your state. Can Anyone Make Changes During the Open Enrollment Period? Medicare’s Open Enrollment Period is only for those who are already existing Medicare beneficiaries. If you have yet to sign up for Medicare, your period to do so runs between the three months before and three months after you turn sixty-five. If you miss this initial enrollment period, you cannot sign up for Medicare during the open enrollment period beginning in October. Instead, you must wait until Medicare’s general enrollment period, which runs from January 1 through March 31. 2 Are Changes Made During Open-Enrollment Effective Immediately? No, the changes you elect to make during Medicare’s open enrollment period will not go into effect until January 1, 2024. What Changes Can Be Made During Medicare’s Open Enrollment? During the open enrollment period, you are eligible to change your Medicare coverage, and you also have the option to switch between different Medicare plans. Below are a few coverage options you can choose to add, drop, or adjust depending on your needs for the new year. Medigap Coverage Medigap is a supplemental insurance policy designed to help cover the costs of certain medical expenses that Medicare doesn’t cover. Your Medigap policy may cover expenses such as: • Copayments • Coinsurance • Deductibles • Medical care when traveling abroad 3 Whether you’ve had Medigap coverage in the past or you’d find it beneficial moving forward, you can adjust, add, or drop your Medigap coverage during open enrollment. Medicare Advantage Medicare Advantage (or Part C) is a type of healthcare plan offered by private companies contracted through Medicare. It’s designed to combine Part A (hospital insurance) and Part B (medical insurance) as well as, in some instances, offer a prescription drug plan or other additional coverage. 4 During open enrollment, you can choose to switch back to an original Medicare plan if you find that Medicare Advantage does not fit your needs. Alternatively, you are also free to switch to a Medicare Advantage plan from an original Medicare plan during this period. Be sure to shop around for different options, as you’ll have several choices from various providers when it comes to choosing a Medicare Advantage plan. 1 Medicare Part D (Prescription Drug Plan) If you are utilizing a Medicare Advantage plan, this may not apply to you. But for those who have an original Medicare plan, it’s important to check for changes to your Part D coverage every year. Coverage through your plan can change yearly, and your prescription needs may change as well. Make sure your current plan has your needs covered through the next year. If not, now’s the time to look around for new coverage. Medical expenses can add up quickly, especially if your current coverage isn’t tailored to address your needs. Use this time to shop around for any changes that could be beneficial for the upcoming year. Contact your Patriot advisor today for more information and resources regarding Medicare! 1. https://www.medicare.gov/basics/get-started-with-medicare/get-more-coverage/joining-a-plan 2. https://www.medicare.gov/basics/get-started-with-medicare/sign-up/when-does-medicare-coverage-start 3. https://www.medicare.gov/health-drug-plans/medigap/basics/coverage 4. https://www.medicare.gov/sign-upchange-plans/types-of-medicare-health-plans/medicare-advantage-plans This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 2023 Q3 Market Insights URL: https://www.patriotinvestment.com/blog/2023-q3-market-insights/ U.S. Markets Stocks lost a portion of their first-half gains in the third quarter as a continued tight monetary bias from the Federal Reserve sent bond yields higher, unsettling stock investors throughout August and September. For the three months ending September 30, the Dow Jones Industrial Average declined 2.62%, while the Standard & Poor’s 500 Index lost 3.65%. The Nasdaq Composite fell 4.12%. A July Rally Faded The strong price momentum during the first half of the year continued into the start of the third quarter as stocks rose in July. Cooling inflation, a better-than-anticipated kick-off to second-quarter earnings reports, and a growing belief that the U.S. economy may avoid falling into a recession helped fuel the gains. However, in August, sentiment turned. Multiple headwinds—including rising bond yields, credit rating downgrades (both U.S. government debt and corporate debt) and continued economic weakness in China—dampened enthusiasm. A late-month rally trimmed losses, although it wasn't enough to keep August from ending in the red. Headwinds in August August’s stock slide continued into September. An early-month rally faded, beginning with the start of a labor strike at the major automakers and a drop in consumer confidence. Rising oil prices further darkened investor mood as it fueled fears that the Fed might need to raise rates again to combat inflation caused by higher energy prices. Earnings Outlook Brightens The second-quarter earnings season, which largely ended in August, helped support stocks with better-than-expected results. As of August 25th, with 485 of the companies in the S&P 500 reporting, 79% posted earnings above market estimates. Perhaps more importantly, Wall Street’s outlook for third-quarter earnings improved during the quarter. Consensus analysts’ forecasts are estimating a 0.2% growth in earnings for the S&P 500 companies. Although this forecast appears slightly underwhelming, it would mark the first quarter of year-over-year earnings growth since the third quarter of 2022. Q3 Sector Scorecard Most industry sectors experienced declines in the third quarter, including Consumer Discretionary (-5.20%), Consumer Staples (-7.23%), Health Care (-3.01%), Industrials  (-5.53%), Materials (-5.21%), Real Estate (-9.60%), Technology (-5.71%), Financials (-1.60%), and Utilities (-9.95%). Both Communications Services (+0.75%) and Energy (+11.36%) rose over the last three months. World Markets For Q3 2023, the MSCI-EAFE Index fell 4.71%. European markets were mixed, with quarterly losses in France (-3.84%), Germany (-4.71%), and Spain (-1.72%). The U.K. tacked on 1.02% and Italy was flat (+0.04%). Pacific Rim markets were down for the quarter, with China’s Hang Seng falling 5.85% and Japan’s Nikkei dropping 4.01%. The Fed After raising interest rates by a quarter of a percentage point in July, the FOMC elected to keep interest rates unchanged following their September 19–20 meeting. They did, however, signal that another rate hike was likely before the end of the year. In his post-announcement press conference, Fed Chair Jerome Powell emphasized that the inflation battle was not finished, and future rate hike decisions would be based on the economic data. With the government shutdown averted in late September, the Fed will have current data when the FOMC meets Oct. 31–Nov. 1. What Investors May Be Talking About in October The Fed elected to keep interest rates unchanged following the September meeting of the Federal Open Market Committee (FOMC), despite some hotter-than-expected inflation data. The Fed has not signaled what it may do with regards to rates at its upcoming two-day meeting, ending on November 1st, indicating that its decision will be data dependent. With the government shutdown averted in late September, the Fed will have current data when the FOMC meets. Expect investors to be especially sensitive to September inflation data, which is scheduled to be released in mid-October. Should consumer prices and producer prices be higher than anticipated, the prospect of a rate hike may potentially jump. However, if the report data comes in lower than expected it may take some pressure off the Fed. WSJ.com, September 30, 2023 LipperAlpha.Refinitiv.com, August 25, 2023 FactSet.com, September 15, 2023 SectorSPDR.com, September 30, 2023 FederalReserve.gov, 2023 MSCI.com, September 30, 2023 MSCI.com, September 30, 2023 MSCI.com, September 30, 2023 MarketWatch.com, September 28, 2023 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## October Is Financial Planning Month URL: https://www.patriotinvestment.com/blog/october-is-financial-planning-month-2/ As the holiday season draws near, most people are thinking about their finances over the next few months and budgeting for how they can celebrate the most wonderful time of the year. Which is perfect timing because October is National Financial Planning Month! Let’s use this month to celebrate the importance of proper financial planning and share some tips and tricks on how to get your financial planning in order. Create a Budget The first step in understanding and taking control of your finances is creating a budget and sticking to it. Everyone’s budget will look a little bit different, but the 50/30/20 rule is a good place to start. 1 The 50/30/20 rule states that 50% of your budget should go to essentials, such as rent, food, and utilities; 30% should go to wants, such as entertainment or travel; and 20% should go to savings and paying off debt. There are also several helpful apps to help you stick to your budget, such as Mint, You Need a Budget (YNAB), and Honeydue for budgeting with a partner. Be Smart with Your Debt Not all debt is created equal, meaning debt isn’t always a “bad” thing if you are smart with it. For example, taking on a car loan and making all the payments on time can help you afford a car if you don’t have enough money to pay cash and can help you build up your credit score. However, be wary of high-interest debt because that can get you into problems quickly. Understand Interest Rates Speaking of interest rates, it’s important to understand how they impact your finances and debt. Depending on the current market and your credit score, mortgage rates generally hover between 3% and 6%. In contrast, the average credit card interest rate as of March 2022 was nearly 20%. With that high of a rate, you can see how getting into credit card debt can quickly pile up and make it hard to take control of your finances. 2,3 In addition, understanding interest rates can help you make strategic financial planning decisions. Rather than paying all cash for an asset (e.g., a car or a house), if you can get a low-interest loan, you can consider investing the cash you would have spent on an investment vehicle that could generate a higher return than you are paying in interest. For example, if you have $10,000, you might consider putting $2,000 toward a car and financing the rest at a 2% interest rate while investing the other $8,000 in the S&P 500, which has delivered a compound average annual growth rate of 10.7% per year over the past 30 years. 4 Get Covered by Insurance Lastly, another thing you can do to celebrate Financial Planning Month is to ensure that you are properly covered with the right insurance. If you have dependents or people relying on your income, life insurance is a must-have. Life insurance can ensure that the people you love will be taken care of if something were to happen to you. In addition, you should consider renters or homeowners insurance, car insurance, disability insurance, and health insurance. There are many things you can do to take control of your finances for National Financial Planning Month, and these are just a few. Kick off the holiday season by strengthening your financial fitness.  If you have any questions about your financial plan, please contact your Patriot Advisor! 1. https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp 2. https://www.bankrate.com/mortgages/historical-mortgage-rates/#tens 3. https://www.forbes.com/advisor/credit-cards/average-credit-card-interest-rate/ 4. https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Tips For Choosing A Health Insurance Plan URL: https://www.patriotinvestment.com/blog/tips-for-choosing-a-health-insurance-plan/ Open enrollment (the annual period when you can enroll in major medical health insurance plans), begins November 1, 2023, and will remain open until January 15, 2024. You will need to enroll by December 15, 2023 for coverage that begins January 1, 2024. 1 For someone looking to change or add coverage, this offers a short window of time to decide on and select your health insurance plan. To avoid a hasty decision to meet this deadline, take some time now to review and prepare. Below we’ve rounded up our top tips for choosing the right health insurance plan for you and your family’s needs. Who Should Utilize Open Enrollment? The Open Enrollment Period (or OEP) is for anyone looking to make a change to their health insurance coverage, whether through their workplace or the federal market. This could include looking for a cheaper plan with similar coverage, gaining coverage if you previously had none, or changing your coverage altogether to better meet your needs. Tip #1: Assess Your Current Costs  When thinking about changing your health insurance plan, it’s important to reassess your healthcare-related expenses. Look at how much you’re currently paying per month for your plan as well as what out-of-pocket expenses you paid over the past 12 months. These could include: • Routine doctor’s visits • Specialist visits • Prescriptions • Emergency room or urgent care visits Unless you foresee any major changes in the coming year (such as pregnancy), this could be a helpful indicator when it comes to determining what type of coverage will be cost-effective and appropriate for you. If you find that your out-of-pocket expenses are too high, now’s your opportunity to search for a plan with lower deductibles (although your monthly premiums will likely rise). Tip #2: Choose Your Marketplace You may be able to gain coverage through several marketplaces, including: • Your or your spouse’s workplace • Federal marketplace • Local or state marketplace • Private exchange • Directly through insurance providers If you have the option to gain coverage through your employer, this will likely provide you with the lowest premiums. That’s because your employer pays a portion of the premium, which tends to be lower anyway. If your employer does not provide healthcare coverage (or you wish to look elsewhere for it), you can gain coverage through the federal or state marketplace. You’ll start at Healthcare.gov, which will then direct you to your state’s marketplace (if applicable). While premiums are likely to be higher, you may be eligible for premium tax credits to help offset the monthly cost. Tip #3: Decipher Your Available Plan Types There are four common types of health insurance plans you’ll come across when selecting coverage: HMO, PPO, POS, and EPO. Health Maintenance Organization (HMO) Pros: HMOs tend to have lower monthly premium costs and out-of-pocket costs as compared to other plan types. Cons: You’re typically limited to seeing providers only in your network, and these must be coordinated by your primary care provider (unless it’s an emergency). This gives you less overall flexibility. Preferred Provider Organization (PPO) Pros: PPOs offer the user more freedom when it comes to choosing healthcare providers and specialists. You can see people outside of your coverage network, although this will typically result in higher out-of-pocket costs. Additionally, you typically will not need a referral from your primary care provider to make appointments with specialists. Cons: Out-of-pocket costs and premiums tend to be higher for PPO plans, especially when compared to an HMO. Point of Service Plan (POS) Pros: With a POS plan, you have the flexibility to visit out-of-network healthcare providers, but typically at a high out-of-pocket cost. Cons: Like an HMO, you will likely need a referral from your primary care provider to see a specialist or have a medical procedure done. Additionally, your primary doctor will coordinate your care for you. Exclusive Provider Organization (EPO) Pros: An EPO will typically offer you lower out-of-pocket costs, and a referral is not needed to see specialists or have medical procedures done. Cons: You will be required to visit specialists within your network unless it is an emergency. An EPO will typically provide less flexibility and freedom when it comes to choosing care providers. Tip #4: Account For Your Current Providers As shown above, every plan type either requires you to visit in-network providers or offers lower out-of-pocket costs for visiting an in-network specialist. If you already have preferred providers on your current plan, switching plans could jeopardize your ability to visit them in the future (or cost you more to do so). When comparing plans, make sure to check whether your current healthcare providers are in-network. If they are, you should have no problem continuing to see them as you did before. If they’re out-of-network, you’ll either need to find a new provider or prepare to pay more for every visit. Picking the right health insurance plan for you and your family can feel daunting, confusing, and rushed. Prepare now by determining what type of plan may be right for you, what coverage you know you’ll need and what marketplace you’ll be buying from. When November hits, you’ll be more than ready to decide what’s right for your healthcare needs. 1. https://www.healthcare.gov/apply-and-enroll/get-ready-to-apply/ This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## November Is National Family Caregiver Month URL: https://www.patriotinvestment.com/blog/november-is-national-family-caregiver-month/ November is National Family Caregiver Month, an opportunity to honor the physical, mental, and emotional effort caregivers put into their role every day. When looking after a loved one, it’s important to understand the financial challenges this life milestone can create.    Whether by choice or necessity, many caregivers may find themselves retiring early. If you’re exiting the workforce, there are a few things to consider making sure you and your family are supported.    How to Plan for Becoming a Caregiver   As part of the “sandwich” generation, you have a lot on your plate. You may be raising children, taking care of aging parents and managing your other personal responsibilities. For many people, juggling these tasks might include retiring early to become a full-time caregiver. Here are a few things to consider if you find yourself leaving the workforce to care for a loved one.    1. Understand Your Resources When faced with the responsibility of becoming a full-time caregiver, you might think that your only option is to leave the workforce. However, there are a few other resources available that may be useful in your situation.    The Family Medical Leave Act allows for “eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons.” 1 Check with your company if they offer this coverage.    You may also be eligible to receive Medicaid, which can allow qualified individuals to manage their own home-care services. Medicaid differs by state, so contact your state’s Medicaid program to see if you or your loved one qualify. 2   1. Have an Income Plan Planning for retirement takes careful strategizing and becoming a caregiver adds a new wrinkle. By retiring early, you may miss out on ongoing contributions to an employer-sponsored retirement plan. In addition, you may not have access to Social Security, Medicare, or pensions yet. You may also be hit with withdrawal penalties if you want to access your retirement funds early.    However, even with these additional complications, it’s still possible to prepare ahead for any income gaps. Working with a qualified retirement planning financial professional is key to making this transition a smooth one.    1. Consider Your Future Every caregiving situation is different and it’s important to consider both your short-term and long-term goals. Do you plan to take on a part-time job if you have the time and capacity? Do you want to re-enter the workforce? Are there other options available so you can still work while your loved one is taken care of? Having a clear sense of what you want for yourself can help you plan for your financial situation in the coming years.    1. Plan for the Emotional Changes, Too While it’s important to plan for the financial changes of becoming a caregiver, it’s important to consider the emotional changes as well. Being a caregiver can be hugely rewarding but can also take a toll on your mental health.    Consider ways to maintain your connections to your community while being out of the workforce. This could include joining a support group with other caregivers, picking up a new hobby, or making time to connect with friends and family more often. There are also mental health professionals who specialize in working with caregivers. You don’t need to trade your own mental health for the health of your loved one. A healthy, happy caregiver is a confident caregiver.   You’ve Got This and We’ve Got You    There’s a lot to consider when becoming a caregiver, especially if you plan to retire early to focus on your new role. Be sure to consider all your available resources to help close any income gaps and account for the financial and emotional changes you’ll likely undergo, from income planning to finding a support system.    Remember, your financial professional is here to help with life’s big transitions. If there’s anything we can do to support you, please reach out to your Patriot advisor.    1. https://www.dol.gov/agencies/whd/fmla   1. https://www.medicaid.gov/about-us/contact-us/contact-state-page.html   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What You Should Know About Giving Tuesday URL: https://www.patriotinvestment.com/blog/what-you-should-know-about-giving-tuesday/ Giving Tuesday is celebrated on the first Tuesday of December each year. It is a day dedicated to the selfless act of giving and has rapidly gained prominence as a global movement that encourages generosity, charity, and community involvement.    Here, we'll unwrap the history, significance, and impact of Giving Tuesday and share some ways you can give back this season.    A History of Giving Tuesday   The story of Giving Tuesday begins with 92nd Street Y (92Y), a cultural and community center in New York City. In 1874, this institution was founded to promote the well-being of the city's Jewish population. 1 Fast-forward to 2012, a team of visionaries, including Henry Timms, 92Y's Executive Director, and the Belfer Center for Innovation & Social Impact came together to create a day that would harness the power of social media and online connectivity for charitable causes. 2   On November 27, 2012, the first Giving Tuesday took place. This day was strategically celebrated between the commercial frenzy of Black Friday and Cyber Monday as an attempt to focus the holiday season on giving rather than receiving. 2 The idea was to channel the excitement and energy of holiday shopping into a day of giving back to the community.   Since its inception, Giving Tuesday has grown exponentially. It has transcended its New York origins to become a global movement, inspiring countless individuals, organizations, and communities to come together and make a difference.    How to Give Back This Giving Tuesday   The beauty of Giving Tuesday lies in its flexibility. It's a day that welcomes all forms of generosity, from financial contributions to acts of kindness that don't cost anything.   Here are some meaningful ways you can give back on Giving Tuesday:   Donate to Charitable Organizations   One of the most direct ways to participate in Giving Tuesday is by making a financial donation to a charitable organization of your choice. Whether it's a local nonprofit, a global humanitarian organization, or a cause that's close to your heart, your contribution can make a significant impact.   Start a Giving Circle   Gather a group of friends or colleagues and form a giving circle. Pool your resources to make a larger impact on a chosen cause or organization. Discuss the impact you want to make together and decide where to direct your collective donations.   Volunteer Your Time   Your time and skills can be just as valuable as your financial resources. Consider volunteering at a local shelter, food bank, or community center.    Fundraise for a Cause   Become a fundraiser for a nonprofit you're passionate about. Use social media and online platforms to reach out to friends and family, sharing your dedication to the cause and encouraging them to contribute.    Support Local Businesses   Giving back doesn't always involve traditional charity. Support your local economy by shopping at small businesses on Giving Tuesday (and on Small Business Saturday, the Saturday after Black Friday). Many businesses also run promotions these days, allowing you to give back and save money.   Do a Random Act of Kindness   Small acts of kindness can have a substantial impact. Pay for a stranger's coffee, leave an uplifting note in a public place, or offer to help a neighbor with their groceries. These acts spread positivity and remind us that giving isn't limited to financial transactions.   Donate Goods   Clean out your closets, and consider donating gently used clothing, toys, or household items to local shelters or thrift stores. Your unwanted items can provide much-needed assistance to individuals and families in need, especially during the holiday season.   Share Your Skills   Share your knowledge and skills with others. Offer to mentor a young person in your community, teach a workshop, or provide free services to nonprofits. Your expertise can be a valuable resource.   Giving Tuesday is more than just a day on the calendar; it's a reminder of the difference we can make. Its history, growth, and significance show how a simple idea can evolve into a global movement, inspiring countless acts of kindness and creating a better world. Contact your Patriot Advisor today for more ways to give.     1. https://www.92ny.org/about/timeline    1. https://www.givingtuesday.org/about/    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## It's Time To Revisit Your Annual Financial Goals. How Did You Do? URL: https://www.patriotinvestment.com/blog/its-time-to-revisit-your-annual-financial-goals-how-did-you-do/ As the year comes to a close, it’s time to look back on your 2023 financial journey. Did you achieve the goals you set out to accomplish at the beginning of the year? Did you experience unexpected financial challenges? Were there areas where you excelled and others where you fell short? This blog will guide you through the process of checking in on your annual financial goals, evaluating your performance over the past year, and setting meaningful goals for 2024. How to Revisit Your Annual Financial Goals Let’s go over some steps to take as you evaluate your 2023 financial goals. Review Your Initial Goals Start by revisiting the financial goals you set for yourself at the beginning of 2023. These goals could include paying off debt, paying for a child or grandchild’s education, investing for retirement, or achieving any other financial aspirations you had in mind. Assess Your Progress Then evaluate how much progress you made toward each goal. Did you achieve them, partially achieve them, or fall short? Be honest with yourself, as this assessment will form the basis for your financial reflections and goal setting for the upcoming year. Consider Unexpected Financial Events Consider any unexpected financial events that may have occurred during the year. These could be positive, such as unexpected windfalls or promotions, or negative—for example, medical expenses or interest rate hikes on mortgages and car payments. These events can have a significant impact on your financial journey and should be factored into your assessment. Analyze Your Budget Review your budget for 2023. Did you stick to it? Identifying areas where you overspent or underspent can help you make more informed decisions for the future. Evaluate Your Financial Performance Now that we’ve gone over how to revisit what happened in 2023, let’s look at how to judge your financial performance. Ask Yourself the Tough Questions To effectively evaluate your financial performance over the past year, ask yourself these important questions: • Did I increase my net worth this year? • Did I reduce my debt, if applicable? • Did I save and invest according to my financial plan? • Did I achieve my short-term and long-term financial goals? • Did I maintain an emergency fund? • Did I contribute to my retirement accounts? • Did I manage to stay within my budget and control my spending? • Did I make progress toward achieving financial independence? Quantify Your Achievements Use measurable metrics to quantify your financial achievements. For instance, calculate your net worth, total debt reduction, savings rate, and investment returns. Having concrete numbers will give you a clear picture of how well you performed in 2023. Reflect on Non-Monetary Achievements Don’t forget to reflect on non-monetary achievements as well. Did you learn more about personal finance? Did you develop better financial habits? Did you make strides in improving your financial literacy? These non-monetary gains are crucial for long-term financial success. Setting Goals for 2024 Lastly, let’s set goals for 2024 so you can kick the new year off right! Identify Your Priorities Begin by identifying your financial priorities for 2024. Are there any outstanding goals from 2023 that you want to roll over into the new year? Additionally, consider new objectives that may have emerged throughout the year. Make SMART Goals SMART goals are Specific, Measurable, Achievable, Relevant, and Timely. 1 Ensure that your goals for 2024 adhere to these criteria. For example, instead of saying “I want to save more,” you could say, ‘I will save $10,000 for a down payment on a house by December 31, 2024.” Create a Detailed Plan Develop a detailed plan for each of your financial goals. Break them down into smaller, actionable steps that you can track throughout the year. This will help you stay motivated. Adjust Your Budget If your financial goals for 2024 require adjustments to your budget, make those changes early on. Allocate resources strategically to ensure you’re on track to meet your objectives. Monitor and Adapt Regularly monitor your progress throughout the year. Adjust as needed, and don’t be discouraged by setbacks. Financial journeys are rarely linear, and adaptability is key to success. Reflecting on your financial journey in 2023 and setting goals for 2024 is a valuable exercise in personal finance. It allows you to take control of your financial destiny, learn from past experiences, and make informed decisions for the future. If you would like to create a financial plan, contact your Patriot advisor today! 1. https://www.atlassian.com/blog/productivity/how-to-write-smart-goals This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 5 Financial Goals For The New Year URL: https://www.patriotinvestment.com/blog/5-financial-goals-for-the-new-year/ The new year is almost here, and now is the time to create financial goals to help you set yourself up for a more financially stable future. Sometimes, getting your finances organized can be a daunting task, but setting a few yearly goals can be easier than you think. Start the year off right by getting started on the five financial goals listed below.   1. Draft a Monthly Budget Even though this may seem like an obvious goal, many people find it hard to draft a budget each month and stick to it. A monthly budget is the beginning of gaining better control over your finances, and the more detailed it is, the better. When creating your budget, make sure that every penny is accounted for, including savings, investments, clothing, food, and entertainment. It will not only help you realize how much you spend each month, but it will also help direct your focus to areas where you can improve and help you decide where to allocate the extra money you get from sticking to your budget.   1. Take Control of Your Debt Debt can be one of the primary factors that can hold you back from financial success. Make a reasonable plan to reduce your debt and stick to it. You can start by determining a reasonable amount of debt that you would like to pay off for the year, making sure that the goal is attainable. Next, determine how much you will need to pay each month to reduce your debt by the goal amount. Finally, you will need to look at your budget and find a way to fit in this amount each month, even if it means cutting back on other areas. It is also important to make sure that you do not add any more debt throughout the year.   1. Make an Emergency Fund a Priority Medical costs, major vehicle repairs, job layoffs, and house maintenance can quickly derail a budget. Make sure that you have a fund set up specifically to handle these unforeseen expenses so that you don’t have to alter your monthly budget to accommodate. A good rule of thumb for an emergency fund is to start with a month’s income plus $1,000. Once this goal is achieved, you should keep saving until you have about six months of expenses. Budget an amount each month for your emergency fund. If an emergency were to require the funds sometime during the year, you will need to regrow it.     1. Prioritize Retirement Savings Saving for retirement is something often put on the back burner until it is too late. The sooner you begin saving for retirement, the more time these savings will have to grow and the better return you will have on your investment. Work with your financial advisor to determine which retirement savings vehicles may be best for you.   1. Create a Long-Term Financial Plan Goals can be more difficult to set if you have difficulty envisioning the rewards that come with financial stability. Consider any long-term financial goals you may have, such as buying a house or retirement. Draft out a plan that includes saving, investing, and other ways to build the wealth you need to achieve these goals. You can start with smaller goals so that they seem less daunting. Having a plan in place will help you stay on track and guide your financial decisions.    Make this the year that you take control of your finances and get on the right track to achieve your goals. Contact your Patriot Advisor to get started on creating a long-term financial plan.    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Fourth Quarter 2023 Market Commentary URL: https://www.patriotinvestment.com/blog/fourth-quarter-2023-market-commentary/ U.S. Markets   Stocks moved higher in the final three months of the year as bond yields trended lower in growing anticipation of a potential Fed easing.   For the three months ending on December 31, the Dow Jones Industrial Average gained 12.5% while the Standard & Poor’s 500 Index picked up more than 11%. The Nasdaq Composite, which led throughout 2023, led again, tacking on nearly 14%. 1   A Shaky Start   As satisfying as the fourth quarter’s results were, the quarter began in a discouraging fashion.   Strong economic data released in October stoked investors’ fears that the Fed would be unable to ease its tight monetary policies, sending bond yields to heights not seen in more than a decade. Concerns over Treasury funding and higher-than-expected consumer price inflation added to the gloom that gripped stocks during the first month of the fourth quarter.   November Turning Point   However, markets turned in November, rallying on fresh data that showed renewed inflation progress and constructive comments from Fed Chair Jerome Powell. These positive developments sparked a retreat in bond yields and the stock market began to move higher.   In a month’s time, pessimism over conditions potentially holding back the Fed from easing its restrictive policies faded, replaced by optimism that the rate hike cycle may be finished, and interest rate cuts may be in the offing in 2024.   Encouraging Earnings   Throughout the first two months, companies were reporting their third-quarter earnings. Coming into the quarter, investors had hoped that good earnings reports might serve as a catalyst to lift stocks from the sluggish previous months. Corporate earnings, it turns out, were not spectacular, but they offered signs of encouragement to investors.   For the third quarter, earnings grew 2.7% year-over-year, which was the second straight quarter of earnings growth—a welcome development after suffering an “earnings recession” (i.e., two consecutive quarters of earnings declines) before this. Wall Street analysts are forecasting an 11.8% increase in corporate profits in 2024, despite concerns about a potential recession in 2024. 2   Powell’s Pivot   The momentum continued to build in December when the Federal Open Market Committee (FOMC) announced that it was leaving interest rates unchanged, and a survey of its members indicated that up to three interest rate cuts would be possible sometime in 2024. The announcement, coupled with dovish post-meeting comments from Powell, helped drive bond yields sharply lower and stocks higher.   What Investors May Be Talking About in January   One of the catalysts of last year’s market rally was excitement about the rise of artificial intelligence and its effect on corporate earnings.   Though tech companies may be the first to benefit from AI adoption, the broader promise lies in what it can do for workers and non-tech companies. Like electricity and computers, AI is beneficial to more than just utility companies and computer manufacturers.   Investors may pay close attention to how non-technology companies invest in AI as 2024 progresses. Companies making commitments might signal to investors that they have potential productivity advances and future competitiveness. The risk for investors is that the hype races ahead of reality, and the enthusiasm fades.   We Are Here for You    At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan.   We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one’s financial plan.  If you want to review your allocation or your goals, we are a  phone call or e-mail away .   1. WSJ.com, December 31, 2023 2. Advantage.Factset.com, December 8, 2023 3. SectorSPDR.com, December 31, 2023 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, ad should not be considered a solicitation for the purchase or sale of any security. --- ## January Is National Financial Planning Month URL: https://www.patriotinvestment.com/blog/january-is-national-financial-planning-month/ January is Financial Wellness Month, which means it’s a good time to remind people to plan and update their financial strategy.   Now is a great time to connect with your financial professional to discuss your financial situation and aspirations for the future. You should also assess if your financial strategy needs any adjustments or changes based on your lifestyle.   Defining Financial Wellness   The first thing to do is define what “financial wellness” means for you. This varies drastically from person to person. It is informed by who you are, where you come from, and what your experiences with money are. A person who has had serious financial troubles in their life might have different expectations than a person who has enjoyed relative financial stability.   How, then, is “financial wellness” defined? First, ask yourself what you need to feel secure, financially speaking. Here are some questions to consider:   • How much should you have saved?    • How much income should you be bringing in each month?    • Where are you at with your debt?    • Would things be simpler if you carried less debt?    • How fluid is your cash flow when it comes to expenses that are not urgent (taking your family out to dinner or on a short trip) versus larger financial goals (such as buying a new kitchen appliance)?    • Finally, and perhaps most importantly, will you be able to retire at your target age?   Financial Wellness Goals   Thinking about financial wellness is often a matter of setting goals for what you can accomplish now and what you can work on to make it a part of your larger financial strategy. For now, consider taking these actions:   • Have a values-based conversation with the decision-makers in your household, meaning any tax-paying adult who contributes income and shares responsibility for the bills. This could be your spouse or a family member. Make sure that the non-essential things you are spending money on line up with your commitments to meeting your financial needs. This is not a “stop getting lattes” conversation; it is a “Are we spending money on the things that matter?” conversation.   • Consider automating payments, especially for regular items, including student loans, credit cards, and other installment payments.   • Create an emergency fund reflecting 3–6 months of household expenses to establish a stable foundation going forward. If that seems too ambitious, build the fund a month at a time until you reach your goal.   • Make regular contributions to your retirement accounts. Take advantage of any matching contributions you might get from your employer.    • Make long-term financial goals. If you are thinking in terms of buying a house, for instance, let that guide your overall financial strategy.     • Is becoming debt-free an achievable goal? It can be if you make it a priority. That said, being totally debt-free can be a difficult task for most households. For that reason, it may be better for you to focus on your other goals first and make debt freedom a target for a later date: for example, being debt-free by retirement.   These are, of course, not hard and fast rules. As mentioned above, every individual has their own specific definition of financial wellness. Some of these examples might feel like a long reach. Others, you might already be practicing. The good news is that with careful practice and judicious scrutiny, many people can gain a feeling of satisfaction and even pleasure from maintaining financial wellness.   Having your financial strategy in place can mean not only a great deal to you in the long term but may also provide you with some comfort in the short term. Schedule a time to discuss this with your Patriot Advisor today.   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security . --- ## 5 Ways To Find Your Financial Independence URL: https://www.patriotinvestment.com/blog/5-ways-to-find-your-financial-independence/ Achieving financial independence is a goal that almost everyone has. It brings you the personal freedom to do what you want. For most people, however, debt is a significant roadblock. In fact, the average adult has around $103,358 in debt. 1  This includes all types of consumer debt, such as credit cards, personal loans, student loans, mortgages and auto loans. The good news is that there are strategies to pay down debt and work toward financial independence. How can you do this? Here are five actionable ways to start working towards more financial freedom this year. Way #1: Make a Budget and Stick to It If you want to be certain that your bills will be paid and your savings goals are on track, then you need to set a monthly budget and do your best to stick to it. If you’re used to spending and saving as you please, sticking to a strict budget will feel hard at first. However, over time, consistency with your spending habits will make following a budget easy and natural. Holding yourself accountable can help deter impulse buys and make your savings goals a bigger priority. Way #2: Pay off Your Credit Cards in Full Credit cards have high-interest rates that can grow your debt every month they aren’t paid off. If you’re able, pay off your credit card balance in full each month. Additionally, pay them on time to help you build good credit. If possible, it’s best to treat your credit card like a debit card, meaning you don’t spend more than you have. Once you have high-interest debt like this paid down, you can focus on low-interest debts like mortgages, auto loans, and student debt. Way #3: Opt for Automatic Savings One of the most effective ways to save more money is to automate the process. Determine how much you’re able to contribute to your savings account each month and set up an automatic transfer with your bank. Soon, you’ll forget this is even happening. If your company offers a retirement savings plan, you may have the option to automatically defer funds from your paycheck to the account. Again, this is something that will happen without action from you, making it an easy and convenient way to build retirement savings. Way #4: Look For Opportunities to Increase Your Income Increasing your income is easier said than done, but it’s not impossible. If you’ve been at your job for a while and taken on added responsibilities, now may be an opportune time to speak to your boss about a pay adjustment. Also, searching for opportunities elsewhere could result in a bump in salary. If you have a hobby that you’re passionate about, look for opportunities to make some money with it. Put your art up for sale online, offer classes (cooking, dancing, gardening, etc.) through your local rec center or find odd jobs you can do on the weekend. If you do find yourself able to increase your income, be sure to revisit your budget and determine how that additional money should be used. If it’s being spent frivolously, it’s not helping you work toward greater independence. Way #5: Begin Building Your Portfolio Once you have control over your debt, you’ll want to focus on building passive income - which can be done through investments. Start off simply by contributing to a retirement account. Even small contributions can now grow significantly toward retirement through the power of compound interest. If you’re looking to expand, consider working with an investment advisor who can provide tailored, complex investment strategies. Achieving financial independence isn’t something that happens overnight. If you plan and save, however, it really can pay off for you in the long run. Not only does it help you to build savings, but it starts strong habits for the future. If you're unsure where to start, your Patriot Advisor can help address your concerns and develop tailored strategies going forward. 1. https://www.experian.com/blogs/ask-experian/consumer-credit-review/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security --- ## Protecting Yourself From Credit Card Fraud URL: https://www.patriotinvestment.com/blog/protecting-yourself-from-credit-card-fraud/ Credit cards have revolutionized the way we manage our finances. However, this convenience comes with its own set of risks, including credit card fraud. As technology advances, so do the tactics employed by cybercriminals to steal sensitive financial information. According to Bankrate, in 2021, the FTC dealt with nearly 390,000 reports of credit card fraud, with US losses projected to reach $165.1 billion in the next decade. 1 Protecting yourself from credit card fraud is vital for financial security and peace of mind. Here, we’ll explore the various forms of credit card fraud and provide actionable tips to help protect your finances. What is Credit Card Fraud? Credit card fraud encompasses a range of illicit activities aimed at unauthorized access to your credit card information. 2 This includes unauthorized transactions, identity theft, account takeover, card-not-present fraud, and more. Cybercriminals use tactics like phishing, skimming, data breaches, and malware attacks to access your sensitive information. Credit Card Fraud vs. Identity Theft While closely related, credit card fraud and identity theft target different aspects of your financial life. Credit card fraud involves unauthorized use of your credit card for purchases or withdrawals. Identity theft, on the other hand, is a broader crime whereby a criminal assumes your identity to open new accounts, apply for loans, or commit other fraudulent activities in your name. Both can have devastating consequences, including financial loss and damaged credit. How to Protect Yourself from Credit Card Fraud Here are some important tips for protecting yourself from credit card fraud: Regularly Monitor Your Accounts Routinely review your credit card statements and online banking activities, and immediately report any suspicious or unauthorized transactions to your card issuer. Enable Account Alerts Most financial institutions offer email, text, or push notifications. Set up alerts for large transactions, account logins, and balance changes to stay informed about your financial activity. Secure Personal Information Never share sensitive information, such as your social security number, PINs, or passwords, through email, phone calls, or text messages. Legitimate organizations will never ask for such information through these channels. Use Strong Passwords Create complex passwords for your online accounts, including a mix of uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessable information, such as birthdays or names. Embrace Two-Factor Authentication (2FA) Enable two-factor authentication (2FA) for your online accounts. This adds an extra layer of security by requiring a secondary form of verification, such as a text message or separate login, in addition to your password. Be Wary of Phishing Attempts Cybercriminals often use phishing emails to trick you into revealing sensitive information or installing malware. Avoid clicking on links or downloading attachments from unfamiliar sources. Double-check the sender’s email address for authenticity. Protect Your Devices Keep your devices updated with the latest security updates and use reputable antivirus and anti-malware software. Be cautious when connecting to public Wi-Fi networks, as they can be vulnerable to hacking. Check for Secure Websites Before entering credit card information online, ensure the website’s URL begins with “https://” and displays a padlock symbol, indicating a secure and encrypted connection. Use Virtual Credit Cards Some credit card issuers or web browsers offer virtual credit cards with temporary numbers for online transactions, which adds an extra layer of protection by hiding your actual card number. Regularly Check Your Credit Reports Obtain and review your credit reports from major credit bureaus at least annually to spot any suspicious or unauthorized activity that may indicate identity theft. By understanding the tactics employed by cybercriminals and following these tips, you can significantly reduce the risk of falling victim to credit card fraud. For more tips and information, contact your Patriot Advisor today. 1. https://www.bankrate.com/finance/credit-cards/credit-card-fraud-statistics/ 2. https://www.law.cornell.edu/wex/credit_card_fraud This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Which Financial Documents Should You Back Up? URL: https://www.patriotinvestment.com/blog/which-financial-documents-should-you-back-up/ In the digital age, where technology has revolutionized the way we manage our lives, safeguarding our financial documents has never been more critical. From tax returns and bank statements to investment portfolios and insurance policies, our financial well-being relies on organized and secure documentation. Here, we share a comprehensive guide on what financial documents you should back up and why these backups are crucial for your financial future. Personal Identification Documents Passport and Driver's License Copies of your passport and driver’s license are essential for various financial transactions, including opening bank accounts and applying for loans. In case these physical documents are lost or stolen, having digital copies can expedite the recovery process. Social Security Card Your Social Security card is a crucial piece of identification. A digital copy can help you quickly prove your identity in various situations, from job applications to financial transactions. Income and Employment Documents Tax Returns Backing up your tax returns is essential for future reference, especially when applying for loans, mortgages, or financial accounts. Digital copies make it easy to retrieve specific information when needed. When it comes to taxes, it’s best to keep any tax records for at least seven years and tax returns for one year. 1 Pay Stubs Keep digital copies of your pay stubs to track your income, deductions, and contributions to retirement accounts. These documents also serve as proof of income for loans and rental applications. Employment Contracts Save copies of your employment contracts to reference terms, conditions, and benefits. This can be crucial for legal matters or negotiations if needed. Banking and Financial Statements Investment Statements Maintain digital records of investment portfolios, including statements from brokerage accounts and retirement funds. These documents are vital for assessing your financial growth and planning for the future. Loan Agreements Save digital copies of loan agreements, including mortgages, car loans, and personal loans. 2  This ensures easy access to terms, interest rates, and payment schedules. Insurance Documents Health Insurance Back up health insurance policies, benefit summaries, and coverage details. This is crucial for medical emergencies and filing insurance claims. Life Insurance Save digital copies of life insurance policies, ensuring beneficiaries have easy access to the information in the event of the policyholder’s passing. Property and Auto Insurance Keep digital records of insurance policies for your home, car, or any other valuable assets. This aids in the swift processing of claims in case of accidents or disasters. Wills and Trusts Back up your will and any trust documents to ensure that your wishes are carried out. This is crucial for the distribution of assets and the well-being of your loved ones. Power of Attorney Save digital copies of documents granting power of attorney to a trusted individual. This ensures that someone you trust can manage your financial affairs in case of emergency. Safeguarding your financial documents is not just a matter of convenience but a fundamental aspect of securing your financial future. By backing up personal identification documents, income and employment records, banking and financial statements, insurance policies, and estate planning documents, you are taking proactive steps to protect yourself and your loved ones in various life situations. 1. https://www.nasdaq.com/articles/how-long-should-you-keep-your-bank-statements 2. https://www.consumerreports.org/money/taxes/how-long-to-keep-tax-documents-a5302825423/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## How To Freeze Your Credit Report URL: https://www.patriotinvestment.com/blog/how-to-freeze-your-credit-report/ In an era dominated by digital transactions and online financial activities, protecting your personal information is more crucial than ever. If you suspect that your personal information or identity was stolen, freezing your credit is one way to protect yourself, as it restricts access to your credit report.   Here, we will delve into the reasons for freezing your credit, how to freeze your credit, and the benefits of this powerful financial safeguard.   Understanding Credit Freezes   A credit freeze is a precautionary measure that restricts access to your credit report. 1 This means that potential lenders or creditors cannot view your credit history, making it significantly harder for identity thieves to open new accounts in your name.   Reasons to Freeze Your Credit   A credit freeze is not something people do all the time, so you may be wondering when you might consider it. Here are the top reasons people freeze their credit:   Preventing Identity Theft Identity theft is a pervasive issue in the digital age. Freezing your credit provides an additional layer of protection, making it difficult for criminals to open new accounts or lines of credit using your personal information.   Data Breach Response If you have been a victim of a data breach, where your personal information may have been compromised, freezing your credit is a proactive measure to mitigate potential damage. It ensures that even if your data falls into the wrong hands, unauthorized individuals will not be able to exploit these to obtain credit in your name.   Protecting Your Children's Credit Children are increasingly becoming targets for identity theft. 2 By freezing their credit until they are old enough to use it responsibly, you can prevent criminals from exploiting your children’s clean credit history.   Peace of Mind During Financial Hardships During times of financial strain, such as job loss or economic downturns, freezing your credit can be a preemptive measure. It ensures that even if your financial situation is compromised, your credit remains secure.   How to Freeze Your Credit   To initiate a credit freeze, you must contact each of the three major credit bureaus—Equifax, Experian, and TransUnion. You can request a credit freeze online, by phone, or by mail. Provide your personal information, including your full name, address, Social Security number, and date of birth.   Here is the information for each credit bureau: 3   • Equifax: Call 800-349-9960 or go online.   • Experian: Go online to initiate, or for information call 888-397-3742.   • TransUnion: Call 888-909-8872 or go online.   Benefits of Freezing Your Credit   The primary benefit of freezing your credit is the heightened security it provides. It acts as a powerful deterrent against identity theft and unauthorized access to your financial information.   With a credit freeze in place, you have greater control over who can access your credit report. This can be particularly beneficial during times when you are not actively seeking new credit. In addition, knowing that your credit is secure can provide peace of mind.   Who Can Access Frozen Credit Reports?   When you freeze your credit, access to your credit report is restricted, but certain entities can still access your credit report.   First, you, as the consumer, can access your own credit report even when it is frozen. In addition, creditors with whom you maintain existing relationships, such as credit card issuers or lenders, retain the ability to access your credit report.   Debt collectors pursuing outstanding debts may also access your frozen credit report for collection purposes.   Government agencies—under specific circumstances such as court-ordered judgments, tax-related matters, or investigations—are authorized to view your frozen credit report.   Furthermore, insurance companies reviewing your risk profile for insurance applications as well as employers in states where it is permissible, may have access to your credit report with your explicit consent.   Freezing your credit is a robust and effective method to protect yourself from identity theft and financial fraud. By understanding its process and benefits, you empower yourself to make informed decisions about the security of your credit information. For more tips and information about preventing identity theft, contact your Patriot Advisor.    1. https://www.usa.gov/credit-freeze   1. https://www.identityforce.com/personal/child-identity-theft#   1. https://www.nerdwallet.com/article/finance/how-to-freeze-credit    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## America Saves Week URL: https://www.patriotinvestment.com/blog/america-saves-week/ Successfully saving for short-term and long-term goals is an important part of any financial strategy. Since 2007, every April, we have celebrated America Saves Week, which is dedicated to helping people save.   Let’s learn more about what America Saves Week is and its themes for this year. We’ll also share tips and tricks to help you save for what matters most.   What is America Saves Week?   America Saves Week is an annual celebration that encourages Americans to take charge of their financial futures by promoting the value of saving. Launched in 2007 by America Saves and the American Savings Education Council, the event is supported by various government agencies, nonprofit organizations, and businesses. 1 This year, America Saves Week will be observed from April 8 to 12. 1   America Saves Week 2024   This year’s theme for America Saves Week is “Saving for What Matters Most.” Whether it’s building an emergency fund, planning for retirement, or achieving short-term financial goals, the act of saving provides a safety net and peace of mind. America Saves Week serves as a reminder that saving is not just a sound financial choice; it’s a key to enjoying and protecting what matters most.   Each day of America Saves Week has a focus:   • Monday, April 8, 2024: Saving Automatically   • Tuesday, April 9, 2024: Saving for the Unexpected   • Wednesday, April 10, 2024: Saving for Major Milestones   • Thursday, April 11, 2024: Paying Down Debt is Saving   • Friday, April 12, 2024: Saving at Any Age   Tips and Tricks for Successful Saving   In 2020, the Federal Reserve reported that only 64% of Americans had enough money on hand to cover a $400 emergency. 2 In conjunction with the theme of saving for what matters most, we wanted to share some tips to help more Americans build their savings.   Set Clear Goals   Before you start saving, it’s crucial to define your financial goals. Whether it’s buying a home, paying off debt, or taking a dream vacation, establishing clear goals provides a roadmap for your savings journey.   Create a Budget   A well-constructed budget is the foundation of successful saving. Track your income, categorize your expenses, and identify areas where you can cut back. Allocating a specific portion of your income to savings ensures consistency in your savings habits.   Automate Your Savings   Take advantage of technology by setting up automatic transfers to your savings account. This ensures that a portion of your income is consistently earmarked for savings before you have a chance to spend it.   Build An Emergency Fund   Establishing an emergency fund is a critical savings goal. Aim to save the equivalent of three to six months of living expenses to safeguard against unexpected financial shocks.   Take Advantage of Employer Benefits   If your employer offers a retirement savings plan, such as a 401(k), make the most of it. Contribute enough to maximize any employer match, which is essentially free money that can significantly boost your long-term savings.   America Saves Week is an important reminder that saving should be the cornerstone of any robust financial strategy. Whether you're just starting your savings journey or looking to improve your existing strategy, the resources and support available during America Saves Week can ignite positive change in your financial life. Contact your Patriot Advisor today to discuss more ways to save.    1. https://americasavesweek.org/    1. https://www.federalreserve.gov/publications/2021-economic-well-being-of-us-households-in-2020-dealing-with-unexpected-expenses.htm   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 2024 Q1 Market Commentary URL: https://www.patriotinvestment.com/blog/2024-q1-market-commentary/ U.S. Markets Stocks posted solid gains in the first quarter as enthusiasm about artificial intelligence, signs of a soft landing, and dovish talk from the Fed buoyed investor confidence. For the quarter, the Dow Jones Industrial Average rose 5.62%, the Standard & Poor’s 500 Index gained 10.16%, and the Nasdaq Composite picked up 9.11%. 1 Rocky Start in January Stocks saw modest gains in January as positive economic data (retail sales, gross domestic product report) and upbeat Q4 corporate reports helped offset a mixed inflation update. As expected, the Fed kept rates unchanged at its January meeting. The more neutral language used by the Fed led some to believe the Fed was concerned about inflation and might be slow to adjust rates. That news took the wind out of stocks’ sails, curtailing gains for the month. 2 Building Momentum In February, stocks regained some momentum as investor enthusiasm surrounding artificial intelligence overshadowed the Fed’s next move with interest rates. By mid-month, investors' attention shifted to any company offering an artificial intelligence update in its quarterly report. Marching Onward Mostly positive economic news in March—including strong but moderating GDP growth, steady unemployment, and decelerating inflation—propelled stocks. All three major averages set record highs during the month. 3 At its March meeting, the Fed left rates unchanged and signaled its inclination to cut interest rates three times this year—each time by a quarter of a percentage point. Markets rallied to new highs following the news, which led to the S&P having its best first-quarter performance in five years. 4 What Investors May Be Talking About in April The Fed opens its two-day meeting on April 30, and investors can expect the Fed to look closely at the drivers of inflation. The Fed will examine each component of the Consumer Price Index, which measures the prices of consumer goods and services across more than 200 categories. 5 In January, more than two-thirds of the CPI’s 3.1% was driven by the category called shelter, which includes rent prices. Shelter was sticky again in February and has been one of the most stubborn areas for some time. 6 The Fed will be watching shelter and other key categories to see what’s driving inflation as it evaluates whether to adjust short-term rates at some point this year. We Are Here for You At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one’s financial plan.  If you want to review your allocation or your goals, we are a  phone call or e-mail away . 1. WSJ.com, March 31, 2024 2. WSJ.com, January 31, 2024 3. CNBC.com, March 28, 2024 4. CNBC.com, March 28, 2024 5. BureauofLaborStatistics.gov, 2024 6. CNBC.com, February 13, 2024 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## The Latest From The Silver Tsunami: Boomer Retirement Stats URL: https://www.patriotinvestment.com/blog/the-latest-from-the-silver-tsunami-boomer-retirement-stats/ As the baby boomer generation moves into retirement, society is undergoing a significant transformation. Termed the “Silver Tsunami,” this demographic shift has far-reaching implications for both retirees and the economy as a whole. 1 In this blog post, we delve into the latest retirement statistics for the baby boomer generation, exploring the trends, challenges, and opportunities that accompany this seismic demographic change. The Baby Boomer Generation: A Demographic Overview The baby boomer generation, born between 1946 and 1964, represents a substantial portion of the global population (more than 20%). 2 Understanding the sheer size and influence of this generation allows us to comprehend the impact of their retirement on society. Retirement Age Going against traditional retirement norms, many baby boomers are choosing to extend their working years. Factors such as increased life expectancy, improved health, and a desire for continued engagement contribute to this trend. The average retirement age in the United States is 61, according to a 2022 Gallup survey. In 1991, the average retirement age in the U.S. was 57. In 2002, it was 59. According to the poll, people still working in 2022 expect to retire at age 66 on average. 3 Geographic Patterns There is a shift in desired retirement destinations as baby boomers explore new places to spend their golden years. Florida, Arizona, Nevada, and other states across the US are seeing an influx of baby boomer residents. Baby boomers account for almost three out of every 10 people in Cape Coral, FL (29.9%), Scottsdale, AZ (28.1%), and Clearwater, FL (27.0%). 4 Challenges Faced by Retiring Baby Boomers Next, let’s look at some statistics that illustrate the retirement-related challenges many baby boomers are facing. Healthcare Concerns With aging comes an increased reliance on healthcare services and the increased cost of healthcare. According to Access One, today’s healthcare infrastructure is ill-equipped to handle the millions of adults who will need day-to-day care. 5 About 70% of people over age 65 are expected to need some form of long-term care before they die, and with 10,000 baby boomers retiring every year, this is going to change our current healthcare landscape. 6 Financial Preparedness One of the critical aspects of retirement planning is financial readiness. But are baby boomers financially ready to retire? According to the National Institute on Retirement Security, 62% of working households with those aged 55–64 have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement. 7 Opportunities Arising from the Silver Tsunami There are also some plus sides for baby boomers retiring soon and others who interact with them. Silver Economy The burgeoning senior demographic presents a unique economic opportunity, often referred to as the “silver economy.” The effects of this may include improved healthcare technology, more job opportunities for those working in healthcare, and an expanded travel and leisure industry. Dr. Damien Ng, a research analyst at Julius Baer, says, “For those with the foresight to embrace the Silver Economy’s potential, it represents more than just a chance for financial gain. It’s an opportunity to be at the forefront of a societal shift towards a more inclusive, compassionate, and age-friendly world.” Intergenerational Collaboration The baby boomer generation possesses a wealth of knowledge and experience that other generations can learn from. Boomers are more active and tech-savvy than previous aging generations. Approximately 75% of adults 65 years of age and older are online. 8 Because of this, younger generations can easily continue to work with and communicate with baby boomers. The Silver Tsunami is not merely a demographic shift; it is also a complex and multifaceted phenomenon with wide-ranging implications. Developing a sound financial plan can help address these concerns. For more information or to review your financial plan, please contact your Patriot advisor today! 1. https://www.forbes.com/sites/deborahwince-smith/2022/02/25/bracing-for-the-silver-tsunami/?sh=5f6041d233e4 2. https://www.statista.com/statistics/296974/us-population-share-by-generation/ 3. https://www.nerdwallet.com/article/investing/social-security/average-retirement-age-us# 4. https://smartasset.com/data-studies/where-boomers-moved-2023 5. https://accessonepay.com/articles/baby-boomers-and-healthcare-challenges/ 6. https://www.morningstar.com/personal-finance/100-must-know-statistics-about-long-term-care-2023-edition 7. https://news.yahoo.com/boomers-moving-cities-golden-years-212544297.html 8. https://www.usnews.com/360-reviews/services/senior-tech-aging-in-place-survey This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Can AI Help Me Plan My Retirement? URL: https://www.patriotinvestment.com/blog/can-ai-help-me-plan-my-retirement/ AI has become increasingly popular in recent years, and with the advent of ChatGPT, it seems like it can do almost anything! But can AI help you plan your retirement? The answer is that while AI can be a powerful tool for research, it doesn’t replace the need for a human financial professional who understands your unique goals. Let’s look at how AI can be a helpful tool in some ways and also examine its limitations. Understanding the Limitations of AI Retirement planning is a deeply personal endeavor, shaped by individual goals, risk tolerance, financial resources, and lifestyle aspirations. AI, despite its impressive capabilities, can’t understand the intricacies that make each person’s financial journey unique. It operates based on patterns and historical data, which might not always capture the full scope of an individual’s needs. In addition, even the most cutting-edge AI tools still “hallucinate” or “create outputs that are nonsensical or altogether inaccurate.” 1 As you can imagine, putting something as important as retirement planning into the hands of a tool that can provide completely inaccurate information is risky and not advised. The Human Element in Financial Decision-Making One of the primary reasons AI can’t replace human involvement in retirement planning is the inherently emotional and subjective nature of financial decision-making. Personal goals, family dynamics, and lifestyle preferences are subjective variables that can significantly impact the retirement planning process. A machine, no matter how sophisticated, can’t understand the emotional nuances of financial planning. Furthermore, retirement planning often involves considering life events and uncertainties that AI struggles to predict accurately. Personal health, family emergencies, or changes in market conditions are dynamic variables that require human intuition and adaptability. While AI can process historical data and identify trends, it can’t anticipate unforeseen events that may alter the course of one’s financial journey. The Importance of Human Professional Financial professionals are indispensable when it comes to financial planning. They can tackle complex topics like tax efficiency, asset allocation, portfolio rebalancing, and more. 2 Financial professionals may leverage the insights provided by AI tools, but they also incorporate qualitative information from clients and consider their unique circumstances and preferences. Human professionals are skilled in interpreting the emotional aspects of financial decision-making, providing a level of guidance and understanding that AI simply can’t replicate. For more information or to review your financial plan, please contact your Patriot advisor today! 1. https://ibm.com/topics/ai-hallucinations 2. https://www.forbes.com/advisor/retirement/financial-advisors-retirement-savings/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Your Summer International Travel Checklist URL: https://www.patriotinvestment.com/blog/your-summer-international-travel-checklist/ Summer is just around the corner and for many, that means it's time to embark on exciting international adventures. Whether you're planning to explore the historic streets of Europe, relax on tropical beaches in Southeast Asia, or immerse yourself in the vibrant cultures of South America, one thing is for sure: proper preparation is vital to a smooth and stress-free journey.   Here, we'll walk you through everything you need to consider before jetting off on your next international trip.   Inform Your Bank and Credit Card Companies   One of the first steps you should take before traveling internationally is to inform your bank and credit card companies about your upcoming trip. This helps prevent your transactions from being flagged as fraudulent when using your cards in a foreign country.   Provide your bank and credit card companies with your travel dates and destinations to ensure uninterrupted access to your funds. Additionally, ask about any foreign transaction fees or currency conversion charges that may apply to your accounts.   Arrange Travel Insurance   Travel insurance can help protect yourself against unforeseen circumstances that may arise during your trip, such as medical emergencies, trip cancelations, or lost luggage.   Before purchasing a policy, carefully review the coverage options to ensure they meet your needs. Consider factors such as medical coverage limits, evacuation services, and coverage for pre-existing conditions. Consider purchasing insurance when you book your trip to maximize coverage benefits.   Obtain Necessary Vaccinations and Medications   Depending on your destination, you may need specific vaccinations or medications to protect yourself against local diseases or health risks. Research your destination's vaccination requirements well before your departure date and schedule an appointment with your healthcare provider or a travel clinic to receive any necessary immunizations.   Additionally, ensure you have an ample supply of any prescription medications you'll need during your trip, along with copies of your prescriptions in case you need to refill them abroad.   Prepare Your Medical ID and Documents   In case of a medical emergency while traveling abroad, having access to your medical information can be crucial.   Create a medical ID card with vital details such as your blood type, allergies, pre-existing conditions, and emergency contact information. Always carry this card with you, along with copies of your health insurance card, passport, and any relevant medical documents. Some smartphones offer a medical ID option that can be set up to make sharing this information easier. 1   Review Cell Phone Service Options   Before traveling internationally, it's important to consider your cell phone service options to stay connected while abroad. Contact your mobile carrier to inquire about international roaming plans, data packages, and fees for calls and texts.   Alternatively, you can purchase a local SIM card when you get to your destination for affordable data and calling rates. If you plan to use your phone to navigate or access the internet while traveling, consider downloading offline maps or using Wi-Fi hotspots to avoid excessive data charges.   Secure Your Passport and Travel Documents   Your passport is the most important document you’ll need when traveling internationally, so it’s essential to ensure its valid and up to date well before your departure date. Check the expiration date and renew your passport if necessary, as many countries require your passport to be valid for at least six months after your departure date.   Additionally, make copies of your passport, visa, and other travel documents and store them separately from the originals in case of loss or theft. 2   Traveling internationally can be an enriching and unforgettable experience but requires careful planning and preparation to ensure a smooth and enjoyable journey. By following this comprehensive checklist, you'll be ready to travel abroad. So, pack your bags, double-check your travel documents, and prepare to embark on the adventure of a lifetime! For more information, contact your Patriot advisor today.   1. https://acadianambulance.com/medical-id-smartphone/    1. https://www.progressive.com/lifelanes/adventure/travel-document-checklist/    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What You Need To Know About The Tax Cuts & Jobs Act URL: https://www.patriotinvestment.com/blog/what-you-need-to-know-about-the-tax-cuts-jobs-act/ The Tax Cuts and Jobs Act (TCJA) was an amendment to the Internal Revenue Code rolled out in 2018. It had implications for businesses and individuals. However, most TCJA provisions are set to expire at the end of 2025. What does this mean for filers?   Let’s look at the TCJA, how it impacts individuals and businesses, and what to expect when some provisions are sunsetted.   What was the Tax Cuts and Jobs Act?   The TCJA was an amendment that “changed deductions, depreciation, expensing, tax credits and other tax items that affect businesses.” 1 They also add that some provisions affecting individual taxpayers can also affect business taxes.   Major elements of the change included reductions in tax rates for businesses and individuals, increases in the standard deduction and family tax credits, and efforts to limit deductions for state and local income taxes and property taxes. 2 The TCJA was the largest tax code overhaul in three decades. 2   How the TCJA Impacted Filers   The TCJA impacted both personal and business taxes. Let’s look at a few of the most notable changes.   Personal Taxes   • Lower Tax Rates –The TCJA reduced tax rates for most individuals and families. 3 It maintained seven tax brackets but lowered the rates within those brackets.   • Increased Standard Deduction —The standard deduction was nearly doubled for all filing statuses. This change meant fewer taxpayers needed to itemize deductions, simplifying the tax filing process for many. 4   • Changes to Itemized Deductions —While the standard deduction increased, several itemized deductions were either reduced or eliminated. This includes a cap on the state and local tax (SALT) deduction and limitations on the mortgage interest deduction. 5   • Child Tax Credit —The TCJA increased the Child Tax Credit from $1,000 to $2,000 per qualifying child. 6   Business Taxes   • Corporate Tax Rate Reduction —One of the most notable changes was a reduction in the corporate tax rate from a maximum of 35% to a flat rate of 21%. 7   • Pass-Through Business Deduction —The TCJA introduced a new deduction for certain pass-through businesses, such as partnerships, S corporations, and sole proprietorships. This deduction allows eligible taxpayers to deduct up to 20% of their qualified business income, subject to certain limitations and thresholds. 8   Because this was such a substantial change, we haven’t listed all the updates here, but they can be found on the IRS website.   What to Expect When the TCJA is Sunsetted in 2025   Now that we understand some of the changes the TCJA included let’s look at what may change if the bill runs out in 2025, as projected.   • The SALT deduction would no longer be capped at $10,000 annually but would be subject to phaseouts at higher income levels. 9   • The deduction allowed for mortgage interest would increase from $750k of debt to $1M plus $100k in home equity debt.   • Miscellaneous deductions could return.   • The standard deduction would be cut in half to the level it was before the TCJA. 10   • The AMT would apply again to many more taxpayers. 9   • The unified lifetime exclusion for estates and gifts would be reduced roughly in half. 11   • The TCJA expiration would result in passthrough business income being taxed according to ordinary individual income tax rates without a deduction for qualified business income. 12   Overall, the TCJA’s changes to business taxes aimed to promote economic growth, incentivize investment, and make the United States more competitive in the global marketplace. The impact varied depending on the business’s size, structure, and industry. Now, the rollback of these changes will impact many taxpayers. How they will affect you depends on your personal financial situation. Be sure to contact your Patriot advisor for more information.   1. https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses    1. https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/    1. https://www.law.cornell.edu/wex/tax_cuts_and_jobs_act_of_2017_(tcja)#    1. https://taxfoundation.org/research/all/federal/the-tax-cuts-and-jobs-act-simplified-the-tax-filing-process-for-millions-of-americans/    1. https://www.investopedia.com/tax-deductions-that-are-going-away-4582165    1. https://www.taxpolicycenter.org/briefing-book/how-did-tcja-change-taxes-families-children#    1. https://www.taxpolicycenter.org/briefing-book/how-did-tax-cuts-and-jobs-act-change-business-taxes    1. https://taxfoundation.org/taxedu/glossary/pass-through-business-deduction-sec-199a/#   1. https://www.thetaxadviser.com/issues/2023/dec/tax-planning-for-the-tcjas-sunset.html    1. https://www.elliottdavis.com/preparing-for-the-tax-cuts-and-jobs-act-sunset/    1. https://www.wipfli.com/insights/articles/wam-prepare-for-the-sunset-of-the-current-gift-and-estate-exemption    1. https://crsreports.congress.gov/product/pdf/R/R47846    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## How To Talk To Aging Parents About Their Finances URL: https://www.patriotinvestment.com/blog/how-to-talk-to-aging-parents-about-their-finances/ As our parents age, we often find ourselves stepping into new roles. One of the most challenging and sensitive discussions to have is about their finances. While uncomfortable, this conversation is crucial for ensuring their well-being and making informed decisions. Here, we’ll explore why this conversation is important and how you can approach it with empathy and respect. We will also provide tips for a productive dialogue.   Why You Should Talk to Your Parents About Their Finances   Many aging parents might be hesitant to discuss their finances. They might feel it’s a private matter, fear losing their independence, or simply find it overwhelming. However, there are compelling reasons to initiate this conversation:   • Planning for the Future: Understanding their financial status allows you to plan effectively for their future needs, such as healthcare expenses, assisted living, or estate planning.   • Preventing Financial Abuse: Seniors are often targets of financial scams or abuse. Being aware of their financial activities can help protect them from potential exploitation.   • Avoiding Surprises: Unexpected financial issues can arise, such as debts, inadequate retirement savings, or lack of insurance. Knowing early allows time to address these challenges.   • Peace of Mind: Knowing their wishes regarding inheritance, end-of-life care, and funeral arrangements can ease stress during difficult times.   How to Talk to Your Parents About Their Finances   Broaching the subject of finances requires sensitivity and empathy. Here are some tips on how to have that conversation: 1   1. Choose the Right Time and Place Find a quiet, comfortable setting where you can have a private conversation without interruptions. This should be done at a time when everyone is relaxed and not rushed. 2. Start with Open-Ended Questions Begin the conversation with open-ended questions to encourage sharing. For example, “I’ve been thinking about our family’s future, and I’m curious about how you’ve planned for retirement. Can we talk about it?” 3. Express Concern, Not Control Frame the conversation around your concern for their well-being. Avoid sounding accusatory or authoritative. Use phrases like, “I want to make sure you’re taken care of,” rather than, “You need to show me your finances.” 4. Be an Active Listener Give them space to express their feelings and concerns. Active listening shows respect and helps build trust. Repeat what you’ve heard back to them to ensure understanding. 5. Share Your Situation Sometimes, sharing your financial plans or challenges can make them feel more comfortable sharing theirs because it creates a sense of mutual understanding. Tips for a Productive Conversation   Once you’ve initiated the conversation, here are some tips for keeping it on track and productive:   Gather Necessary Documents If possible, have them gather financial documents, such as bank statements, investment accounts, insurance policies, wills, and any debts they might have. These can help provide a clear picture of their financial standing.   Focus on Specific Topics Rather than overwhelming them with a broad discussion, focus on specific areas, such as retirement savings, healthcare costs, or estate planning. This makes the conversation more manageable.   Be Patient and Respectful Remember that this conversation may be difficult for them. Be patient with their responses and avoid pressuring them for immediate answers.   Involve Trusted Professionals If needed, you may suggest involving a financial advisor, accountant, or lawyer. These professionals can provide expertise and an objective viewpoint.   Follow Up This conversation is likely not a one-time event. Follow up regularly to review and update their financial plans, especially as circumstances change.   Despite your best efforts, your parents might still resist discussing finances. If they’re uncomfortable sharing specific details, respect their boundaries and focus on the importance of having a plan in place rather than the specific numbers. Alternately, consider including siblings or other family members. Sometimes, a group discussion with siblings can make the conversation less intimidating.   Talking to aging parents about their finances is crucial in ensuring their future well-being. While it can be a sensitive and challenging conversation, approaching it with empathy, respect, and patience can lead to a productive dialogue. By initiating this conversation, you demonstrate care and commitment to their happiness and security as they navigate their golden years. For more information, contact your Patriot advisor.    1. https://www.guardianlife.com/retirement/aging-parents-finances   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Tips For Safeguarding Your Personal Information URL: https://www.patriotinvestment.com/blog/tips-for-safeguarding-your-personal-information/ When it comes to information-stealing scams, there’s good news and bad news. The good news is that we are getting scammed less. According to Motley Fool, there were 1.036 million reports of identity theft in 2023, down from 1.107 million in 2022 and 1.4 million in 2021. 1 The bad news is that scammers are becoming more sophisticated, so we must stay diligent about protecting our personal information.   In this article, let’s look at some of the most common information-stealing scams so that you can be aware of them and protect yourself.   Text Message Scams   Text message scams, also known as SMS phishing or “smishing,” have surged in popularity among scammers due to the widespread use of smartphones. These messages often appear to be from legitimate sources, such as banks or financial institutions and aim to trick recipients into revealing personal information or clicking on malicious links.   Example: Fake Account Alerts One prevalent text message scam involves fake account alerts. Scammers send texts claiming suspicious activity on your bank account and urge you to click on a link to verify your information. The link, however, leads to a fraudulent website designed to steal login credentials.   Apart from pretending to be your bank, scammers can also pretend to be other financial apps, such as Venmo or PayPal.   To avoid falling victim to these scams, remember the following:   • Verify the Sender: Legitimate financial institutions typically use recognizable phone numbers or official shortcodes for their messages. If the sender’s number seems unfamiliar or suspicious, it’s likely a scam.   • Think Before Clicking: Avoid clicking on links in unsolicited messages, especially if they claim urgent action is required. Instead, independently verify the information by visiting the involved institution’s official website or calling its customer service department.   Robocalls   Robocalls, which are automated phone calls that deliver prerecorded messages, have been a long-standing nuisance. However, scammers have increasingly used them to target individuals’ banking and investment accounts.   Example: Investment Scams In one example of a prevalent scheme, scammers use robocalls to offer fake investment opportunities with promises of high returns. 2 These calls often claim to be from reputable financial firms or offer exclusive deals, luring unsuspecting individuals into providing their personal and financial information.   Follow these tips to protect yourself from investment-related robocall scams:   • Be Skeptical: Approach unsolicited investment opportunities with caution. Remember, if an investment sounds too good to be true, it probably is.   • Verify Credentials: Do thorough research on a company before sharing any information or making investments. Legitimate investment firms will have a verifiable track record and proper licensing.   Phishing Emails   Phishing emails remain a favorite tool for scammers seeking to steal sensitive information. These emails are designed to appear legitimate, often mimicking official correspondence from banks or investment firms.   Example: Account Verification Requests A typical phishing email tactic involves requests for account verification. The email typically states that your account needs immediate attention due to suspicious activity or an expiring security certificate. It then prompts you to click on a link or download an attachment, which leads to a fake login page designed to capture your credentials.   What to do to avoid falling for phishing emails:   • Inspect URLs: Hover your mouse over email links to see the URL. If it looks suspicious or doesn’t match the sender’s website, don’t click on it. Instead, report the email to your email provider.   • Check for Red Flags: Watch out for spelling errors, generic greetings (e.g., “Dear Customer”), and urgent language designed to evoke a quick response.   • Use Two-Factor Authentication: Enable two-factor authentication (2FA) on your accounts whenever possible. Even if scammers obtain your login credentials, 2FA provides an additional layer of security.   Protect Your Personal Information   As scammers continue to evolve and use more sophisticated tactics, staying informed and vigilant is crucial to safeguarding your financial information. Here are some additional tips to help protect yourself and secure your personal information:   Regularly Monitor Your Accounts Routinely check your bank and investment account statements for any unauthorized transactions. Report any suspicious activity to your financial institution immediately.   Keep Software Updated Ensure that your devices, including smartphones and computers, have the latest security updates and antivirus software.   Educate Yourself and Others Share information about these scams with friends and family, especially those who may be more vulnerable to such schemes.   By staying informed and adopting best practices, you can minimize the risk of falling victim to these information-stealing scams. Stay safe, stay vigilant, and safeguard your finances in the digital age. For more information, contact your Patriot advisor today!   1. https://www.fool.com/the-ascent/research/identity-theft-credit-card-fraud-statistics   1. https://www.scmagazine.com/news/new-online-investment-scams-powered-by-bots-to-simulate-fake-experts   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## 2024 Q2 Market Insights URL: https://www.patriotinvestment.com/blog/2024-q2-market-insights/ U.S. Markets Following a rocky start, stocks finished the second quarter higher as investors remained optimistic the Fed will manage interest rates with inflation trending lower. For the quarter, the Standard & Poor’s 500 Index rose 3.92%, and the Nasdaq Composite picked up 8.26%. By contrast, the Dow Jones Industrial Average fell 1.73%. 1 Rocky Start in Q2 Stocks lost ground in April as investors struggled with mixed economic news and mixed signals from the Fed. Fresh Consumer Price Index data showed that March inflation was hotter than expected, However, retail sales for March suggested consumers were spending despite rising inflation. Fed Chair Jerome Powell possibly unsettled investors when his tone appeared to shift from confident to cagey about interest rate cuts. Also, tensions in the Middle East continued to rattle the markets. 2,3,4 Goldilocks Economy Markets turned in May, however, rallying around upbeat Q1 corporate reports and signs that the economy remained strong. Some market watchers called it a “Goldilocks” economy, which is defined by economic activity that is neither too hot nor too cold. For example, the 175,000 jobs created in April was less than the 240,000 economists expected but still considered a solid showing. 5,6 The Fed Remains in Focus This momentum, along with news that inflation rose less than expected in May, bolstered investor sentiment. Enthusiasm was tempered, however, following the Fed's policy meeting in which only one rate cut for the year was penciled in, versus the three previously communicated in March. 7,8 The Fed The Fed left interest rates unchanged at both Federal Open Market Committee (FOMC) meetings held in the second quarter. 13 Minutes from the April/May meeting stated that some Fed officials worried about the lack of progress on inflation. After the June 11-12 meeting, some investors were unsettled after learning Fed officials had shifted their outlook based on continued stubborn inflation data, and now only penciled in a single rate cut for the rest of the year. Back in March, most Fed officials had indicated as many as three cuts were possible this year. The next FOMC meeting will be July 30-31. What Investors May Be Talking About in July Early in the month, Companies will begin to give updates on business conditions in Q2 with some sharing their outlooks for Q3 and beyond. As these companies enter what is referred to as “earnings season,” FactSet research is estimating an (year-over-year) earnings growth rate for the S&P 500 at 8.8%. That would be the highest year-over-year growth rate since Q1 2022 (9.4%). 9 Remember, forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize. Along with business conditions, investors will be looking for updates on companies’ efforts with artificial intelligence. Of the S&P 500 companies, 199 cited the term “AI” during their earnings calls in Q1 2024. Will that number increase or decrease in Q2? By comparison, 219 companies mentioned the phrase “inflation” when discussing business conditions with shareholders in Q1, which was down from 303 a year earlier. 10,11 The Fed meets once more before the fall season, July 30–31. At the conclusion of the June meeting, Fed Chair Powell said, “Inflation has eased over the past year but remains elevated.” Fed officials adjusted their outlook and said they anticipate cutting short-term interest rates just once this year. Just a few months earlier, the Fed seemed prepared to cut rates three times in 2024. Investors are expected to react if the Fed adjusts its outlook for short-term rates again in July. 12 We Are Here for You At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one’s financial plan.  If you want to review your allocation or your goals, we are a  phone call or e-mail away . 1. WSJ, June 28, 2024 2. WSJ.com, April 4, 2024 3. WSJ.com, April 16, 2024 4. CNBC.com, April 15, 2024 5. CNBC.com, May 15, 2024 6. CNBC.com, May 3, 2024 7. WSJ.com, June 12, 2024 8. APNews.com, June 27, 2024 9. Insight.FactSet.com, June 21, 2024 10. Insight.FactSet.com, May 24, 2024 11. Insight.FactSet.com, May 17, 2024 12. CNBC.com, June 12, 2024 13. WSJ.com, June 12. 2024 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Retirement Planning For Freelancers URL: https://www.patriotinvestment.com/blog/retirement-planning-for-freelancers/ Freelancing offers unparalleled freedom and flexibility, allowing individuals to craft their careers on their terms. In 2022, Fiverr, a leading freelance marketplace, predicted that 78% of companies would rely on freelancing rather than hire staff in 2023. 1 Freelancing has undoubtedly increased since 2020, when many companies and employees learned that much work can be done remotely.   While it does offer more flexibility, freelancing also comes with considerations. One obstacle for freelancers is retirement planning. Unlike traditional employees with access to employer-sponsored plans, freelancers must proactively build their retirement nest eggs.   Let's explore retirement planning for freelancers and provide some practical steps and strategies to help them plan for secure financial futures.   Retirement Planning Challenges for Freelancers   Freelancers face unique retirement planning concerns for a few reasons.   First, freelancers often experience fluctuating income, making it challenging to set aside consistent savings for retirement.   Also, many freelancers need access to 401(k)s or pensions, requiring them to navigate individual retirement options. Unlike employees who benefit from employer-matched contributions, freelancers are solely responsible for funding their retirements.   Retirement Planning Options for Freelancers   Despite these challenges, freelancers have several practical tools and strategies. Here are a few options:   Individual Retirement Accounts (IRAs) Freelancers can save for retirement using traditional or Roth IRAs.   With a traditional IRA, contributions are tax-deductible, growing tax deferred until withdrawal during retirement.   With a Roth IRA, after-tax contributions grow tax-free, and withdrawals in retirement are tax-free.   Solo 401(k) The solo 401(k) is designed for self-employed individuals, allowing employer and employee contributions with higher contribution limits than IRAs. According to the IRS, a one-participant 401(k) is “a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse.” 2   In 2024, the annual contribution limit for a one-participant 401(k) plan is $23,000. 2   SEP-IRA (Simplified Employee Pension) A SEP-IRA offers a straightforward way for freelancers to save for retirement, allowing contributions as a percentage of income. A business of any size, even self-employed business owners, can establish a SEP. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25% of each employee's pay. 3   With a SEP, you can contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $69,000 annually. 4   Health Savings Account (HSA) While primarily for healthcare, an HSA can also serve as a retirement tool. Contributions are tax-deductible, and qualified withdrawals are tax-free, even in retirement.   If you set up an HSA and contribute to it as a sole proprietor, you can deduct some of your contributions on your personal income tax return. For 2024, individuals under a high-deductible health plan (HDHP) will have an HSA contribution limit of $4,150. The HSA contribution limit for family coverage will be $8,300. These amounts are about 7% higher than in 2023. 5   Tips for Saving for Retirement as a Freelancer   Setting aside funds for your retirement income can be difficult when working for yourself. Here are some tips to consider to help you prioritize retirement planning:   • Set clear goals, whether a specific age to retire or a desired retirement lifestyle. This clarity will guide your savings strategy.   • Pay yourself first. Treat retirement savings as a priority expense. Set up automatic transfers from your business account to your retirement account to make it easier.   • Budget wisely and create a budget that includes retirement savings. Calculate a baseline budget using your lowest-earning months, then allocate more to retirement savings during high-earning months.   • Diversify your investments to help mitigate risk.   • Educate yourself on your retirement options.   • Plan for healthcare expenses in retirement.   • Understand tax implications of retirement accounts and contributions. Consult a tax professional to optimize tax benefits.   • Regularly review and adjust your plan to stay on track.   By choosing the proper retirement accounts and educating themselves on their options, freelancers can confidently navigate the complexities of retirement planning. Your future self will thank you for your foresight and diligence in creating a financial foundation that supports your retirement dreams. Contact your Patriot advisor today for more information on retirement planning.   1. https://www.forbes.com/sites/jonyounger/2022/12/22/the-trends-shaping-the-freelance-revolution-in-2023/?sh=7b7ef1422a30    2. https://www.irs.gov/retirement-plans/one-participant-401k-plans    3. https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep    4. https://www.irs.gov/retirement-plans/retirement-plans-for-self-employed-people    5. https://www.kiplinger.com/taxes/hsa-contribution-limit-2024    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What To Do When Your Retirement Goals Change URL: https://www.patriotinvestment.com/blog/what-to-do-when-your-retirement-goals-change/ Retirement strategy is a bit like setting sail on a journey. You can plot your course, prepare your route, and set off with a clear destination in mind, but things can always change, no matter how well-prepared you are.   Maybe you envisioned a quiet life in the countryside but now find yourself drawn to the vibrancy of city living. Maybe health concerns have prompted a reassessment of how you want to spend your golden years. Perhaps you decide that you want to continue working (after all, 57% of Americans expect to work after retirement). 1   Whatever the reason, changing retirement goals is not uncommon, and the key lies in how we adapt to and navigate these new waters.   How to Embrace Change in Retirement   It's essential to remember that changing your retirement goals doesn’t mean you’ve failed. It means that you’re willing to adapt and create a retirement that works for you. So, if you find yourself in a situation where the retirement you once imagined no longer aligns with your current desires, here are some steps to consider:   Reflect on Your New Priorities Before making any drastic changes, take some time to reflect. What has prompted this shift in your retirement goals? Is it a newfound passion, a change in health, a desire to be closer to family, or something else entirely? Understanding the root cause will help you make more informed decisions moving forward.   Review Your Finances Changing retirement strategy can have financial implications. If your new goals involve a different lifestyle, location, or activities, reassess your financial situation. Consider consulting with a financial professional to understand how these changes might impact your savings, investments, and retirement income.   Adjust Your Retirement Strategy Once you clearly understand your new priorities and financial situation, it's time to adjust your retirement strategy accordingly. This might involve updating your retirement budget, reallocating investments, or exploring new income streams. Be flexible and open to making changes that align with your revised goals.   Stay Flexible As you navigate these changes, remember to remain flexible. Life is unpredictable, and strategies may need to be adjusted along the way. Embrace the journey and be open to new opportunities that may arise.   Prioritize Your Health and Wellness Regardless of your retirement goals, prioritizing your health and wellness is crucial. Make sure to include healthcare costs and considerations in your revised retirement strategy. Stay active, eat well, and attend regular check-ups to ensure you can fully enjoy your retirement years.   Communicate with Loved Ones If your new retirement goals involve significant lifestyle changes, it's important to communicate openly with loved ones. Discuss your goals with your spouse, family, or close friends. Their support and understanding can make the transition smoother.   In the end, retirement is not just about reaching a destination; it's about embracing the journey. Life is full of twists and turns, and our goals and aspirations will naturally evolve over time. By staying adaptable, proactive, and true to your passions, you can create a retirement that reflects the life you want to live. Contact your Patriot Advisor today to review your retirement plan.    1. https://www.retireguide.com/retirement-planning/statistics/    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security --- ## Why Retirement Planning Is Different For Business Owners URL: https://www.patriotinvestment.com/blog/why-retirement-planning-is-different-for-business-owners/ Running a business presents unique challenges and opportunities that can significantly impact retirement planning. Here, we’ll share some reasons why retirement planning differs for business owners and explore some key considerations they should consider.   Business Owners Are Both Plan Sponsor and Contributor   One of the primary distinctions for business owners is the dual role they often play as both business operators and retirement planners. Unlike employees who contribute to employer-sponsored retirement plans, business owners must establish and manage their own retirement accounts. This includes deciding on retirement account types, contribution amounts, and investment strategies.   Business Owners Often Have Variable Income Streams   Business income can be variable, which adds complexity to retirement planning. Unlike employees who receive a consistent paycheck, business owners' income can fluctuate based on business performance. This variability impacts the ability to predict future retirement savings and requires flexibility.   Retirement Planning for Business Owners May Include an Exit Strategy   For many business owners, their business represents a significant portion of their retirement nest egg. Determining the value of the business and planning for its eventual sale or transfer is a critical aspect of retirement planning. This process involves understanding market trends, conducting business valuations, and developing a strategic exit plan.   Business Owners Should Diversify Their Investments   While a business is often a significant asset, retirement planning for business owners should also focus on diversification. Solely relying on the business for retirement income can be risky, particularly if market conditions or industry changes affect business performance.   Diversifying retirement savings into other assets such as stocks, bonds, real estate, or alternative investments can provide additional security and stability. This diversified approach hedges against the risks of business ownership and market volatility.   Business Owners Have Different Tax Considerations   Taxes play a substantial role in retirement planning for business owners. Understanding the tax implications of various retirement accounts, contributions, and withdrawals is essential for optimizing retirement income.   Business owners have access to unique retirement account options, such as SEP-IRAs, Solo 401(k)s, and SIMPLE IRAs, each with its own tax advantages and contribution limits. 1   Additionally, the sale of a business can have significant tax implications. 2 Proper tax planning can help minimize tax liabilities and preserve more retirement funds. Working with a financial advisor who specializes in business owners' needs can provide valuable insights into tax-efficient retirement strategies.   Retirement planning for business owners requires careful planning and unique strategies that are different than those for employees. From the dual role of managing the business and retirement accounts to navigating variable income streams and tax implications, business owners face a distinct set of retirement planning challenges and opportunities. To review your financial plan, contact your Patriot advisor today!   1. https://www.investopedia.com/articles/personal-finance/120314/top-retirement-strategies-small-business-owners.asp    1. https://www.irs.gov/businesses/small-businesses-self-employed/sale-of-a-business    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Financial Planning For Fall Home Maintenance And Renovations URL: https://www.patriotinvestment.com/blog/financial-planning-for-fall-home-maintenance-and-renovations/ Fall is the perfect time to consider your home's maintenance and renovation needs and is an ideal season to tackle these projects before the winter chill sets in. However, it's crucial to approach them with a solid financial strategy in mind.   Let's explore how you can prepare financially for fall home maintenance and renovations.   Assess Your Home's Needs   Before diving into planning, assess what your home requires. Take a walk around your property, noting any areas that need attention. This could include:   • Roof Inspection: Check for loose or damaged shingles.   • Gutter Cleaning: Clear out leaves and debris to prevent clogging.   • HVAC System: Schedule a maintenance check to ensure it's ready for winter.   • Exterior Painting: Look for chipped or peeling paint.   • Window and Door Seals: Check for drafts and reseal as needed.   • Landscaping: Trim trees and shrubs and prepare flower beds for winter.   Create a Budget   Once you've identified the projects you want to tackle, it's time to create a budget. Start by researching the costs associated with each task. Get quotes from contractors if needed, and factor in materials and labor. You may also want to set aside a contingency fund of around 10% to 20% of your total budget for unexpected expenses.    Prioritize Projects   Not all home maintenance and renovation tasks need to be done at once. Prioritize based on urgency and budget. Critical repairs, such as fixing a leaking roof, should be a higher priority over cosmetic upgrades. Make a list and rank items from “essential” to “nice-to-have.”    Explore Financing Options   If your fall home projects exceed your current budget, there are several financing options to consider:   Home Equity Line of Credit (HELOC) A HELOC allows you to borrow against the equity in your home, often with lower interest rates than other loans. 1   Personal loans Depending on your credit, personal loans can provide a lump sum with fixed interest rates.   Credit cards For smaller projects, using a credit card with a 0% introductory APR offer can be an option, but be cautious of high interest rates after the introductory period.   Government programs Some local governments offer grants or loans for specific home improvement projects, especially those focused on energy efficiency. 2     Decide between DIY and Hiring Professionals   While DIY projects can save money, be realistic about your skills and the time required. Some tasks, like electrical work or major roof repairs, are best left to professionals to ensure safety and quality. If you choose the DIY route, factor in the cost of tools and equipment.   Save for Future Renovations   Fall is also an excellent time to start saving for larger renovations down the road. Consider setting up a dedicated savings account for home improvements. Even small monthly contributions can add up over time, giving you a financial cushion for future projects.   Stay Flexible   Lastly, stay flexible with your plans. Unexpected issues may arise during renovations that may require adjustments to your budget. Having a financial buffer and a willingness to adapt will help reduce stress and keep the project on track.   Fall is a beautiful season of change, and it's the perfect time to prepare your home for the colder months ahead. By approaching your fall maintenance and renovations with a solid financial strategy, you can ensure your home remains safe, comfortable, and aesthetically pleasing. Call your Patriot advisor today to visit about your financial plan.   1. https://www.bankofamerica.com/mortgage/learn/what-is-a-home-equity-line-of-credit/   1. https://www.usa.gov/home-repair-programs   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## How Often Should I Update My Estate Strategy? URL: https://www.patriotinvestment.com/blog/how-often-should-i-update-my-estate-strategy/ Estate strategies for the future may be essential, especially when it comes to securing the well-being of your loved ones after you're gone. Your strategy is not a one-time task but a process that should evolve with you and your family's needs. Let's explore why regularly examining your estate strategy and updating it when necessary is key to generational financial well-being.   How Often Should I Update My Estate Strategy?   Many people wonder, "How often should I update my estate strategy?" The general rule of thumb is at least every 3-5 years, if not more often. Many financial planners recommend reviewing your estate strategy when you review your entire financial plan, which could be annually, semi-annually, or quarterly. 1   More importantly, you should review your estate strategy whenever you have a major life change.   Your estate strategy is a comprehensive set of legal documents that outline your wishes regarding your assets, property distribution, healthcare preferences, and more. However, life is unpredictable, and circumstances can change. Without regular updates, your estate strategy may not reflect your current situation or wishes.   Major Life Events That Signal an Estate Strategy Review   While everyone may review their estate strategy regularly at different intervals, certain life events should prompt an immediate review of your estate strategy. Here are some key events to consider: 2   Marriage or Divorce When you get married, you'll likely want to update your estate strategy to include your spouse as a beneficiary. Conversely, divorce may necessitate removing an ex-spouse from your strategy.   Birth or Adoption of a Child Welcoming a new child into your family means updating your strategy to include them as a beneficiary. You'll also want to appoint guardians if something were to happen to you and your partner.   Death of a Loved One The passing of a spouse, child, or another beneficiary should prompt a review of your estate strategy to ensure assets are distributed according to your new wishes.   Change in Financial Status Significant changes in your assets, whether through inheritance, investments, or property acquisitions, should trigger a review of your estate strategy.   Relocation to Another State or Country Laws regarding estates vary by jurisdiction. If you move, it's essential to review your strategy to ensure it complies with local laws.   Changes in Health If you're diagnosed with a serious illness or experience a decline in health, you should review and update your healthcare directives and powers of attorney.   The question of "How often should I update my estate strategy?" comes down to a balance between regular reviews and responding to major life events. While a general timeline of every 3-5 years is a good rule of thumb, life changes should always prompt a review of your estate strategy. Your strategy should reflect your current circumstances, wishes, and the legal landscape. By staying proactive and updating your estate strategy accordingly, you can ensure that your loved ones are taken care of, and your legacy is protected. Call your Patriot Advisor today to review your estate strategy.    1. https://www.fidelity.com/life-events/estate-planning/update-estate-plan   1. https://www.edwardjones.com/us-en/market-news-insights/guidance-perspective/events-impacting-estate-plan    This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## October Is Financial Planning Month URL: https://www.patriotinvestment.com/blog/october-is-financial-planning-month-3/ As the holiday season draws near, most people are thinking about their finances over the next few months and budgeting for how they can celebrate the most wonderful time of the year. Which is perfect timing because October is National Financial Planning Month! Let’s use this month to celebrate the importance of proper financial planning and share some tips and tricks on how to get your financial planning in order. Create a Budget The first step in understanding and taking control of your finances is creating a budget and sticking to it. Everyone’s budget will look a little bit different, but the 50/30/20 rule is a good place to start. 1 The 50/30/20 rule states that 50% of your budget should go to essentials, such as rent, food, and utilities; 30% should go to wants, such as entertainment or travel; and 20% should go to savings and paying off debt. There are also a lot of helpful apps to help you stick to your budget, such You Need a Budget (YNAB) and Honeydue for budgeting with a partner. Be Smart With Your Debt Not all debt is created equal, meaning debt isn’t always a “bad” thing if you are smart with it. For example, taking on a car loan and making all the payments on time can help you afford a car if you don’t have enough money to pay cash and can help you build up your credit score. However, be wary of high-interest debt like credit cards because that can get you into problems quickly. Understand Interest Rates Speaking of interest rates, it’s important to understand how they impact your finances and debt. Depending on the current market and your credit score, mortgage rates generally hover between 3% and 6%, although more recently, average interest rates are closer to 7%. In contrast, the average credit card interest rate as of May 2024 was nearly 23%. With that high of a rate, you can see how getting into credit card debt can quickly pile up and make it hard to take control of your finances. 2,3 In addition, understanding interest rates can help you make strategic financial planning decisions. Rather than paying all cash for an asset (e.g., a car or a house), if you can get a low-interest loan, you can consider investing the cash you would have spent on an investment vehicle that could generate a higher return than you are paying in interest. For example, if you have $10,000, you might consider putting $2,000 toward a car and financing the rest at a 2% interest rate while investing the other $8,000 in the S&P 500, which has delivered a compound average annual growth rate of 10.2% per year over the past 20 years. 4 Get Covered by Insurance Lastly, another thing you can do to celebrate Financial Planning Month is to ensure that you are properly covered with the right insurance. If you have dependents or people relying on your income, life insurance is a must-have. Life insurance can ensure that the people you love will be taken care of if something were to happen to you. In addition, you should consider renters or homeowners insurance, car insurance, disability insurance, and health insurance. There are lots of things you can do to take control of your finances for National Financial Planning Month, and these are just a few. Kick off the holiday season by strengthening your financial fitness.  If you have any questions about your financial plan, please contact your Patriot Advisor today! 1. https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp 2. https://www.bankrate.com/mortgages/historical-mortgage-rates/#tens 3. https://www.forbes.com/advisor/credit-cards/average-credit-card-interest-rate/ 4. https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## 2024 Q3 Market Insights URL: https://www.patriotinvestment.com/blog/2024-q3-market-insights/ U.S. Markets Investors welcomed the Fed’s decision regarding short-term interest rates, causing stocks to post solid gains in the third quarter. The Dow Jones Industrial Average, which dipped in Q2, picked up 8.21% for the third quarter. The S&P 500 Index rose 5.53% while the tech-heavy Nasdaq Composite gained 2.57% as investors rotated away from technology names in favor of other groups (See Sector Scorecard). 1 Small Caps Shine in July Stocks were mixed in July despite economic data that marked a turning point in the Fed’s view on interest rates. Investors eventually became more confident that inflation was slowing as anticipation built around a potential rate adjustment. 2 The improving inflation outlook sparked a rally in the Russell 2000, which gained more than 10% in July. Investors anticipated small caps might benefit if the Fed adjusted rates. 3,4 Twin Inflation Reports in August August began with a disappointing employment report showing that job growth in July slowed more than expected, and unemployment increased to 4.3%—the highest rate since October 2021. On the same day, Japan's Nikkei dropped on concerns about a trading strategy called a “carry trade,” which briefly pressured global financial markets. 5,6 But stocks rebounded mid-month as fresh economic data also bolstered confidence. The Producer Price Index (PPI) and the Consumer Price Index (CPI) rose less than expected in July, reinforcing the “cooling inflation” narrative. The July retail sales report was stronger than expected, which also helped boost sentiment. 7 Later in the month, Fed Chair Jerome Powell, in his Jackson Hole symposium speech, indicated the time had come to adjust monetary policy, which was considered welcome news by investors. 8 The Fed’s Bold Move in September In September, markets were volatile as investors waited for an update on interest rates following the Fed’s two-day meeting. Early in the month, weak manufacturing data and mixed jobs data reawakened recessionary fears, which put pressure on stocks and led to the S&P 500 posting its worst week since March 2023. 9,10,11 Stocks initially fell when the Fed announced it was cutting interest rates by 0.5%—the first reduction in four years—but then rallied. The Dow topped 42,000 for the first time, while the S&P crossed the 5,700 mark. The 0.5% cut surprised some, who anticipated the Fed would be more cautious during an election year. 12,13 The Fed The Federal Reserve cut interest rates by a half percentage point at its September 17–18 Federal Open Market Committee (FOMC) meeting, bringing the Fed Funds target range to 4.75%  to 5.0%. It was the first change in the Fed Funds in 14 months and the first cut in short-term rates in 4½ years. A majority of FOMC voting members also indicated that rates may adjust at the two remaining Committee meetings in 2024. Still, Fed Chair Powell, following the meeting, told the National Association for Business Economics that “we are not on any preset course." 16 The Fed’s September decision reflected “greater confidence that inflation is moving sustainably toward 2%" and that the "risks to achieving its employment and inflation goals are roughly in balance." 17 What Investors May Be Talking About in October In the month ahead, expect some attention to start shifting to the housing market now that Fed Chair Powell has confirmed that “the time has come for (monetary) policy to adjust.” Mortgage rates have been trending lower since hitting a peak in October 2023. Loan rates may continue to move lower since Powell said that “the direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” 15 There is a group of existing homeowners who may have delayed mortgage decisions in recent years because they don’t want to leave a low-interest rate home loan. If mortgage rates trend lower, some homeowners may reach a higher level of comfort making a move. We Are Here for You At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one’s financial plan.  If you want to review your allocation or your goals, we are a phone call or e-mail away. 1. WSJ.com, September 30, 2024 2. WSJ.com, July 31, 2024 3. WSJ.com, July 31, 2024 4. WSJ.com, July 31, 2024 5. NBCNew.com, August 2, 2024 6. CNBC.com, August 5, 2024 7. WSJ.com, August 14, 2024 8. Reuters.com, August 23, 2024 9. WSJ.com, September 3, 2024 10. WSJ.com, September 6, 2024 11. WSJ.com, September 11, 2024 12. WSJ.com, September 19, 2024 13. CNN.com, September 20, 2024 14. SectorSPDRS.com, September 30, 2024 15. Forbes.com, September 30, 2024 16. CNBC.com, September 30, 2024 17. WSJ.com, September 18, 2024 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Social Security Cost Of Living Adjustment Throughout The Years URL: https://www.patriotinvestment.com/blog/social-security-cost-of-living-adjustment-throughout-the-years/ Social Security is a cornerstone of financial security for millions of Americans. One of the essential features of Social Security benefits is the annual Cost of Living Adjustment (COLA), which ensures that the purchasing power of benefits keeps up with inflation. Let’s look at how COLA has evolved over the years. The Origins of Social Security COLA Social Security was introduced during the Great Depression, with the Social Security Act signed into law by President Franklin D. Roosevelt in 1935. 1 Initially, the benefits were fixed and did not account for inflation. However, as the cost of living increased over time, the purchasing power of fixed benefits diminished, leading to the need for adjustments. The first automatic COLA was implemented in 1975. 2 Before this, Congress had to enact special legislation to increase benefits, which led to irregular and often inadequate adjustments. The introduction of automatic COLA was a significant reform designed to provide beneficiaries with predictable and regular benefit increases to match inflation. How COLA is Calculated The COLA is determined by the Social Security Administration (SSA) based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 2 The CPI-W measures the average price change over time for a basket of goods and services consumed by urban wage earners and clerical workers. The COLA calculation process involves comparing the average CPI-W for the current year's third quarter (July, August, September) with the average CPI-W for the same quarter of the previous year. 3 If there is an increase, the percentage increase is applied to Social Security benefits for the following year. If there is no increase or a decrease, benefits remain unchanged, ensuring that beneficiaries do not experience a reduction in nominal benefits even if deflation occurs. Historical Trends in COLA Over the years, COLA adjustments have varied significantly, reflecting different periods' economic conditions and inflation rates. Let's explore some key periods in the history of Social Security COLA: 1970s The late 1970s saw some of the highest COLA increases in history due to rampant inflation. The annual inflation rate doubled to more than 12% from 1969 to 1974. 4 In 1980, the COLA was a staggering 14.3%, reflecting these high inflation rates. 5 1980s to 1990s The 1980s and 1990s witnessed more moderate and stable COLA increases. The economic policies implemented during these decades helped control inflation, resulting in more predictable and minor adjustments. For example, the COLA in 1985 was 3.1%, and in 1995 it was 2.6%. 6 These adjustments mirrored the period's lower and more stable inflation rates. 2000s Significant economic events, including the dot-com bubble burst, the housing market collapse, and the Great Recession, marked the 2000s. These events influenced inflation and, consequently, COLA adjustments. In 2009 and 2010, there was no COLA increase due to negative inflation rates during the recession, reflecting the economic downturn. 6 2010s to Present In the post-recession era, the economy gradually recovered, but inflation rates remained relatively low. This period saw modest COLA increases, often around 1-2%. For example, in 2017, the COLA was 2%, and in 2020, it was 1.3%. 6 Recently, COLA has been higher than in the late-2010s. In 2022, the COLA was 8.7%; in 2023, it was 3.2%. 6 The Social Security Cost of Living Adjustment ensures that benefits keep pace with inflation, safeguarding the purchasing power of millions of Americans. COLA has evolved from the mid-1970s to today to reflect changing economic conditions and inflation rates. 1. https://www.ssa.gov/history/50ed.html 2. https://www.ssa.gov/cola/ 3. https://www.ssa.gov/oact/cola/latestCOLA.html 4. https://www.aarp.org/retirement/social-security/info-2020/colas-history.html 5. https://en.as.com/latest_news/what-was-the-biggest-annual-social-security-cost-of-living-cola-adjustment-n/ 6. https://www.ssa.gov/oact/cola/colaseries.html This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Is It Too Late To Save For College? URL: https://www.patriotinvestment.com/blog/is-it-too-late-to-save-for-college/ For many families and individuals, saving for college can be daunting. With the rising costs of tuition, books, and living expenses, it’s no wonder that the prospect of funding higher education can feel overwhelming. However, the belief that it's too late to start saving is a common misconception. In fact, it's never too late to begin planning and saving for college, and there are numerous strategies and resources available to help make this goal a reality. The Rising Costs of Higher Education According to the College Board, the average cost of tuition and fees for the 2021–2022 school year was $10,740 for in-state public colleges, $27,560 for out-of-state public colleges, and $38,070 for private colleges. 1 These figures represent a significant financial burden for many families, but they also underscore the importance of starting to plan as soon as possible. Is it Too Late to Save for College? One of the most common misconceptions about saving for college is that if you don't start early, it's too late to make a meaningful impact. This simply isn't true. While starting early certainly has its advantages, there are still plenty of steps you can take to prepare for college, no matter where you are in your financial journey. Tips for Saving for College Whether you’re saving to go to college yourself or saving for a child or grandchild, it’s never too late to start. Here are some tips to help you save for this financial goal: Assess Your Current Financial Situation The first step in any financial planning is understanding where you stand. Take stock of your income, your expenses, and any existing savings or investments. This will give you a clearer picture of how much you can contribute to a college fund. Create a Realistic Savings Plan Based on your financial assessment, set a realistic savings goal. Even small, consistent contributions can add up over time. Automate your savings if possible so a portion of your income goes directly into your college fund. Explore Financial Aid and Scholarships Even if you haven't been saving for college, there are still opportunities to lessen the financial burden. Fill out the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal grants, loans, and work-study programs. 2 In addition, research scholarships and grants are offered by colleges, organizations, and foundations. Research Work-Study Programs For those already in college or planning to attend soon, work-study programs can provide valuable experience while helping to cover educational expenses. Consider Tax-Advantaged Accounts There are several types of accounts specifically designed for education savings, such as 529 plans and Coverdell education savings accounts. These accounts offer tax advantages and can help your savings grow faster. The Power of Compound Interest One of the key advantages of starting to save early is the power of compound interest. However, even if you're starting later, compound interest can still work in your favor. Every dollar you save now can grow over time, earning interest on top of interest. By contributing regularly and letting your money work for you, you can make significant strides toward your college savings goals. It's never too late to start saving for college. While starting early has its advantages, there are still plenty of ways to make meaningful progress toward funding higher education. You can take proactive steps toward achieving your educational goals by assessing your finances, exploring financial aid options, utilizing tax-advantaged accounts, and creating a realistic savings plan. Contact your Patriot advisor today for more information. 1. https://www.businessinsider.com/personal-finance/average-college-tuition 2. https://studentaid.gov/h/apply-for-aid/fafsa This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What To Do If You Are The Victim Of A Cybersecurity Breach URL: https://www.patriotinvestment.com/blog/what-to-do-if-you-are-the-victim-of-a-cybersecurity-breach/ In today's digitally connected world, cybersecurity breaches are an ever-present threat. Whether you're an individual, a small business owner, or part of a large corporation, the impact of a breach can be devastating. Knowing what to do if you become a victim of a cybersecurity breach can help mitigate damage and secure your digital environment. Let’s outline what to do if you fall victim to a cybersecurity breach. Assess the Situation As soon as you suspect a breach, assess the situation to understand its scope. Identify which systems or data have been compromised. Check for signs of unauthorized access, unusual activities, or alerts from your security software. The faster you determine the breach's extent, the quicker you can take appropriate action. Disconnect Affected Devices Disconnect any affected devices from the internet to prevent further unauthorized access and data leakage. This includes turning off Wi-Fi and unplugging network cables. Isolating compromised devices can help contain the breach. Change Your Passwords Changing your passwords immediately is crucial. Start with the most sensitive accounts, such as email, banking, and social media. When you update your password, choose strong, unique passwords for each account, and don’t use any common identifying information, such as a pet’s name or birth date. Around 96% of the most common passwords can be cracked by hacking tools in less than one second.1 Consider using a password manager to generate and store complex passwords securely. Enable Two-Factor Authentication (2FA) Enable two-factor authentication (2FA) on all accounts that support it. It adds an extra layer of security by requiring a second form of verification, such as a text message or authentication app, in addition to your password. A 2019 report showed that 2FA can block 99.9% of automated attacks.2 Report the Breach Report the breach to the appropriate authorities and institutions. For individuals, this might include your bank, credit card companies, and email providers. Businesses should notify their IT department, legal team, and any affected partners or clients. Reporting helps initiate official investigations and alerts others to potential threats. Hire a Cybersecurity Professional Consider hiring a cybersecurity professional to conduct a thorough investigation and help with the recovery process. They can identify vulnerabilities, remove malware, and implement more robust security measures to prevent future breaches. Secure Your Devices Run a complete antivirus and antimalware scan on all your devices. Ensure that your security software is up-to-date and capable of detecting the latest threats. Remove any identified malware and patch vulnerabilities. Backup and Restore Restore your systems from a recent backup that you know is clean and free of malware. If you do not have a recent backup, start creating one regularly. Secure backups are essential for recovering from future breaches without significant data loss. Educate Yourself If you run an organization, educate yourself and your team about cybersecurity best practices. Regular training can help everyone recognize threats like phishing emails or suspicious links. Staying informed about the latest cybersecurity trends and threats can significantly reduce your risk of future breaches. Implement Strong Security Policies Develop and enforce robust security policies. This includes regular password changes, restricted access to sensitive data, and routine security audits. For businesses, an incident response plan is crucial. Monitor Your Accounts Keep a close eye on your financial and online accounts for any signs of unauthorized activity. Set up alerts for unusual transactions and review your account statements regularly. Prompt detection can minimize damage from any future breaches. Use Encryption Encrypt sensitive data both in transit and at rest. Encryption ensures that even if data is intercepted, unauthorized parties cannot easily read or use them. Being the victim of a cybersecurity breach can be a stressful and overwhelming experience. However, by taking immediate action to assess and contain the breach, seeking professional assistance, and implementing long-term preventive measures, you can significantly reduce the impact and prevent future incidents. Contact your Patriot advisor for more tips on how to protect yourself from cybersecurity attacks. 1. https://www.reliaquest.com/platform/digital-risk-protection/ 2. https://eftsure.com/statistics/two-factor-authentication-statistics/ This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## November Is National Family Caregiver Month URL: https://www.patriotinvestment.com/blog/november-is-national-family-caregiver-month-2/ November is National Family Caregiver Month, an opportunity to honor the physical, mental and emotional effort caregivers put into their role every day. When looking after a loved one, it’s important to understand the financial challenges this life milestone can create. Whether by choice or necessity, many caregivers may find themselves retiring early. If you’re exiting the workforce, there are a few things to consider making sure you and your family are supported. How to Plan for Becoming a Caregiver As part of the “sandwich” generation, you have a lot on your plate. You may be raising children, taking care of aging parents and managing your other personal responsibilities. For many people, juggling all these tasks might include retiring early to become a full-time caregiver. Here are a few things to consider if you find yourself leaving the workforce to care for a loved one. 1. Understand Your Resources When faced with the responsibility of becoming a full-time caregiver, you might think that your only option is to leave the workforce. However, there are a few other resources available that may be useful in your situation. The Family Medical Leave Act allows for “eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons.”1 Check with your company if they offer this coverage. You may also be eligible to receive Medicaid, which can allow qualified individuals to manage their own home-care services. Medicaid differs by state, so contact your state’s Medicaid program to see if you or your loved one qualify.2 2. Have an Income Plan Planning for retirement takes careful strategizing and becoming a caregiver adds a new wrinkle. By retiring early, you may miss out on ongoing contributions to an employer-sponsored retirement plan. In addition, you may not have access to Social Security, Medicare or pensions yet. You may also be hit with withdrawal penalties if you want to access your retirement funds early. However, even with these additional complications, it’s still possible to prepare ahead for any income gaps. Working with a qualified retirement planning financial professional is key to making this transition a smooth one. 3. Consider Your Future Every caregiving situation is different, and it’s important to consider both your short-term and long-term goals. Do you plan to take on a part-time job if you have the time and capacity? Do you want to re-enter the workforce? Are there other options available so you can still work while your loved one is taken care of? Having a clear sense of what you want for yourself can help you plan for your financial situation in the coming years. 4. Plan for the Emotional Changes, Too While it’s important to plan for the financial changes of becoming a caregiver, it’s important to consider the emotional changes as well. Being a caregiver can be hugely rewarding but can also take a toll on your mental health. Consider ways to maintain your connections to your community while being out of the workforce. This could include joining a support group with other caregivers, picking up a new hobby or making time to connect with friends and family more often. There are also mental health professionals who specialize in working with caregivers. You don’t need to trade your own mental health for the health of your loved one. A healthy, happy caregiver is a confident caregiver. You’ve Got This, and We’ve Got You There’s a lot to consider when becoming a caregiver, especially if you plan to retire early to focus on your new role. Be sure to consider all your available resources to help close any income gaps and account for the financial and emotional changes you’ll likely undergo, from income planning to finding a support system.  And remember, your Patriot Advisor is here to help with life’s big transitions. If there’s anything we can do to support you, please reach out. 1. https://www.dol.gov/agencies/whd/fmla 2. https://www.medicaid.gov/about-us/contact-us/contact-state-page.html This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Is It Too Late To Start A Retirement Fund? URL: https://www.patriotinvestment.com/blog/is-it-too-late-to-start-a-retirement-fund/ We’ve all heard the recommendation that when it comes to retirement savings, the earlier you start, the better because of the power of compound interest. What if you’re in your 40s, 50s, or even 60s and haven’t started saving for retirement yet? Is it too late to start a retirement fund?   The short answer is no. It’s never too late to start saving for retirement. However, starting later in life may require a different approach. Let’s dive in.   What is Compound Interest?   Before we talk about saving for retirement later in life, let’s talk about compound interest. Compound interest is one of the best reasons to start saving for retirement as early as possible.   When you invest money, you earn interest on the initial amount (the principal); over time, you also earn interest on the already earned interest. This snowball effect can lead to significant investment growth over the years. 1   For example, if you start saving $200 a month at age 25 with an average annual return of 7%, by the time you reach 65, you could have more than $500,000. 2 However, if you start at age 45, with the same monthly contribution and return rate, you might only accumulate around $100,000 by 65.   While this difference highlights the benefits of starting early, it doesn’t mean starting a retirement fund is too late.   How to Save for Retirement Later in Life   If you’re starting your retirement fund later in life, you may have to approach retirement planning a little differently. Here are some tips to help:   Increase Your Savings Rate One of the best ways to build your retirement fund quickly is by increasing the amount you save each month. While younger people might contribute 10–15% of their income, those starting later might want to aim for 20–30% or more, depending on their goals.   Delay Retirement If possible, consider retiring later. Delaying retirement, even for a few years, allows you to save more and reduces the number of years you'll rely on your retirement savings. In addition, delaying Social Security benefits can increase your monthly payout, increasing your retirement income potential. 3   Maximize Retirement Accounts Ensure you take full advantage of tax-advantaged retirement accounts like a 401(k) or IRA. For those over 50, "catch-up contributions" allow you to contribute more than the standard limit, giving you a chance to boost your savings. As of 2024, annual catch-up contributions can be up to $7,500 annually. 4   Invest Aggressively (But Wisely) With less time to save, your investment strategy may need to be more aggressive to achieve higher returns. This doesn’t mean taking unnecessary risks, but you might consider choosing investments with a higher potential for growth, such as stocks or real estate. Remember, diversification is key to managing risk.   Reduce Expenses and Debt As you approach retirement, reducing your living expenses and paying off high-interest debt can free up more money to invest in your retirement fund. This also helps reduce the income you’ll need in retirement, making your savings stretch further.   The Benefits of Starting Now   Even if you’re starting late, building a retirement fund can offer several benefits:   • Peace of mind knowing that you have some financial security for your later years   • An improved lifestyle in retirement, even if you don’t accumulate millions   • A retirement fund that not only supports you but can also help provide for loved ones or leave a legacy   Remember, every dollar saved is closer to a more secure and enjoyable retirement. So, no matter where you are on your financial journey, it's never too late to start building the future you deserve. Contact your Patriot Advisor today for more information.    1. https://www.investopedia.com/terms/c/compoundinterest.asp   1. https://www.nerdwallet.com/calculator/compound-interest-calculator   1. https://www.ssa.gov/benefits/retirement/planner/delayret.html   1. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Most Common Financial New Year's Resolutions URL: https://www.patriotinvestment.com/blog/most-common-financial-new-years-resolutions/ As the New Year rolls around, now is the perfect time to take stock of your current financial health and set goals for the upcoming year. Financial New Year’s resolutions are a great way to take control of your finances, build wealth, and develop healthier money habits.   Here are the most common financial New Year's resolutions and tips to help you achieve them.   1. Save More Money One of the most common financial resolutions is to save more money. Whether it’s building an emergency fund, saving for a home, or setting aside money for future vacations, saving is often at the top of people's lists. However, daily expenses can quickly sideline this resolution without a clear plan.   Here’s how to set yourself up for success if your goal is to save more money:   • Set Specific Goals: Determine exactly how much you want to save and by when. For example, instead of saying, "I want to save more money," say, "I want to save $5,000 by the end of the year."   • Automate Your Savings: Set up automatic transfers from your checking account to your savings account. This makes saving a habit and removes the temptation to spend that money elsewhere. There are also apps you can download that automatically take money from your checking account and put it in your savings account as a true “set it and forget it” solution.   • Cut Back on Unnecessary Expenses: Review your monthly expenses to identify areas for savings. Cutting back on your expenses means you’ll have more cash flow to save.   1. Pay Off Debt Debt reduction is another top financial resolution. There are two main strategies for paying off debt. Choose the one that works for you and your situation.   Debt Avalanche Method   The debt avalanche method involves paying off the debt with the highest interest rate first (such as credit card debt). 1 This will save you money in the long run, as you’ll pay less interest.   Debt Snowball Method   The Debt snowball method involves paying off your smallest debts first while making minimum payments on larger ones. 2 As each small debt is paid off, the money can be applied to the next debt.   In addition to choosing a debt repayment method, set realistic monthly repayment goals and stick to them. Even small additional payments can make a big difference over time.   1. Create and Stick to a Budget Many people set a goal to create and stick to a budget to gain better control over their finances. Budgeting helps you track where your money is going and ensures you’re living within your means. However, sticking to a budget can be tricky, especially if unexpected expenses arise. Here are some specific tips to help:   • Use Budgeting Tools: Plenty of apps,  or even simple spreadsheets, can help you track your income and expenses. These tools make it easier to manage your budget and stay on top of your spending.   • Set Realistic Limits: Be realistic about your expenses. Allocate funds for fun and entertainment to avoid burnout, but don’t let those expenses derail your budget.   • Review Your Budget Regularly: Life circumstances change, and so should your budget. Revisit your budget at least every quarter to ensure it’s still working for you and adjust it as necessary.   1. Invest for the Future Another popular resolution is investing for long-term financial goals, such as retirement. However, many people don’t know where to start. But even starting small and gradually building an investment portfolio is a step in the right direction. Here are some tips to help:   • Start Small: You don’t need much money to start investing. Many brokerage accounts allow you to start with as little as $100.   • Contribute to Retirement Accounts: Maximize contributions to retirement accounts like a 401(k) or an IRA. If your employer offers a 401(k) match, take full advantage of it (their match is pretty much free money!).   • Diversify Your Investments: Don’t put all your eggs in one basket to reduce risk. Spread your investments across different asset classes, such as stocks, bonds, and mutual funds.   1. Build an Emergency Fund Building an emergency fund is a tremendous financial New Year’s resolution. Most financial experts recommend saving 3-6 months of expenses, depending on your lifestyle. 3 This emergency fund can be used for unforeseen expenses, such as a sudden illness or accident, an unexpected job loss, or a surprise home or car repair.   Here are some tips to help you get specific and achieve your goal of building an emergency fund:   • Start Small and Build Over Time: If you can’t save three to six months’ expenses immediately, start by aiming for one month’s worth. Gradually increase your savings over time.   • Open a Separate Account: Keep your emergency fund separate from your regular checking or savings account to avoid dipping into it for non-emergencies.   • Direct Part of Your Income to the Fund: Set up automatic transfers so a portion of your paycheck goes directly into your emergency fund. Treat it like a regular bill.   Setting financial resolutions is a great way to start the year, but sticking to them is the real challenge. With a clear, specific plan, you can achieve your financial New Year’s resolutions. Whether it’s paying off debt, saving more, or investing for the future, your 2025 financial goals are within reach! Contact your Patriot Advisor for more ways to help reach your financial goals.    1. https://www.investopedia.com/terms/d/debt-avalanche.asp   1. https://www.nerdwallet.com/article/finance/what-is-a-debt-snowball   1. https://www.wellsfargo.com/financial-education/basic-finances/manage-money/cashflow-savings/emergencies/   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Q4 2024 Market Insights URL: https://www.patriotinvestment.com/blog/q4-2024-market-insights/ U.S. Markets   Stocks posted solid gains in Q4 as investors navigated the presidential election, overseas unrest, and Fed rate cuts.   The Standard & Poor’s 500 Index rose 2.41%, while the Nasdaq Composite surged 6.17%. By contrast, the Dow Jones Industrial Average edged up only 0.51% .1   Back and Forth in October   Stocks slipped in October as pre-election jitters hung over trading while solid but not spectacular Q3 corporate reports failed to lift spirits. 2   Middle East tensions unsettled investors early in the month. However, as the month progressed, investors took a wait-and-see approach. That bumpy beginning gave way to an upbeat jobs report from the Department of Labor, which boosted stocks. The Fed previously told investors that it’s focused on the jobs market as well as inflation, which elevated the importance of the monthly jobs report. 3   Fed, Inflation Grab Headlines in November   Despite a jittery start to November, stocks rallied following Election Day results and gained momentum following the Federal Reserve's second consecutive interest rate cut. The S&P 500 crossed the 6,000 mark for the first time, while the Dow breached 44,000. 4,5   The markets took a breather as investors anxiously awaited fresh inflation data. News that retail and wholesale prices ticked up slightly in October sent markets down, even though both numbers were in line with economists’ expectations. Stocks remained under pressure after unexpected comments from Fed Chair Powell, who said the Fed wasn’t “in a hurry” to cut rates. 6   Back-to-Back Gains for S&P 500   Markets were a mixed bag in the final month as the Dow Industrials and S&P 500 fell, while the Nasdaq posted a modest gain. The Dow was down 12 of the first 13 trading days of the month, including 10 consecutive sessions that marked its longest losing streak since 1974. 7   The Fed’s quarter-point cut on December 18 was widely expected. Less expected was Fed Chair Jerome Powell’s signaling of fewer rate reductions next year. Markets fell in response and came under pressure again as a government spending bill appeared to stall in Congress. However, a lower-than-expected inflation update boosted the market and helped erase some earlier losses. 8,9   Despite the sluggish finish, the S&P 500 ended the year up 25%—its second consecutive gain of more than 20%. 10   The Fed   As expected, the Federal Reserve lowered interest rates by a half percentage point in Q4. The Fed Funds Rate target range ended the year at 4.25–4.50%.   Fed Chair Jerome Powell took the opportunity at both Q4 FOMC meetings to signal less certainty on the pace and timing of rate adjustments in 2025. Following the December meeting, the Fed Chair said, “From here, it’s a new phase, and we’re going to be cautious about further cuts.” 11,12   The FOMC’s next meeting is scheduled for January 28–29.   What Investors May Be Talking About in January   Expect attention to shift to Inauguration Day. Wall Street will be watching to see what policies the White House exacts through executive order and what policies will follow a legislative process.   Updated and stricter tariffs may be implemented quickly by the next administration. Some economists have speculated that the new programs may be inflationary, but others are less concerned, reminding investors that many tariffs have remained in place for the past four years. 13   However, overseas trading partners appear to be bracing for fresh tariffs. In mid-December, the European Central Bank—anticipating possible U.S. trade tariffs on goods from Europe—cut interest rates for the third time in as many months. And China has toughened its talk around economic stimulus, promising a more proactive fiscal policy and looser monetary policy in anticipation of trade tensions with the incoming U.S. administration. 14,15   We Are Here for You   At Patriot, we will continue to focus on what we can control – asset allocation, costs, and having a plan. We consistently communicate the importance of diversification through low-cost index funds, reasonable withdrawal rates, and not trying to time the market. These three variables are critical in the success of one’s financial plan.  If you want to review your allocation or your goals, we are a phone call or e-mail away.   1. WSJ.com, December 31, 2024 2. Insight.FactSet.com, November 1, 2024 3. WSJ.com, October 4, 2024 4. WSJ.com, November 6, 2024 5. WSJ.com, November 7, 2024 6. Reuters.com, November 14, 2024 7. CNBC.com, December 17, 2024 8. WSJ.com, December 18, 2024 9. APNews.com, December 21, 2024 10. CNBC.com, December 31, 2024 11. 11. The Wall Street Journal, November 7, 2024 12. 12. The Wall Street Journal, December 18, 2024 13. 13. TaxFoundation.org, June 26, 2024 14. 14. APNews.com, December 12, 2024 15. 15. WSJ.com, December 9, 2024 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 401(k) Hardship Withdrawals And Loans: What To Consider Before Accessing Your Funds Early URL: https://www.patriotinvestment.com/blog/401k-hardship-withdrawals-and-loans-what-to-consider-before-accessing-your-funds-early/ A 401(k) is designed as a retirement planning tool, but investors sometimes face unexpected financial situations that lead them to consider withdrawing funds from their 401(k) early. While a 401(k) is designed for long-term savings, you can access the funds early through hardship withdrawals and loans. However, there are consequences to this decision.   Here, we break down 401(k) hardship withdrawals and note what you should consider before accessing your retirement funds early.   What Are 401(k) Hardship Withdrawals?   A 401(k) hardship withdrawal allows you to access your retirement savings early (before the age of 59 ½), but only under specific conditions. 1 The IRS defines hardship as "an immediate and heavy financial need" and limits withdrawals to the amount necessary to satisfy that need.   Common reasons for a hardship withdrawal include:   • Medical expenses for you, your spouse, or dependents   • Preventing foreclosure or eviction from your primary residence   • Funeral expenses for a family member   • Tuition and related educational fees   • Repairs for damage to your principal residence   Key Considerations for Hardship Withdrawals   If you have a significant nest egg saved in your 401(k) account, it may be tempting to want to access those funds to cover an immediate and heavy financial need. Still, there are some serious factors you should consider before doing so.   While hardship withdrawals are permitted in some instances, they still come with penalties. You will owe both federal and state income tax on the amount withdrawn, and if you are under the age of 59½, you'll also face a 10% early withdrawal penalty in most cases. 2   In addition to the penalties and taxes, taking a hardship withdrawal reduces the amount of tax-deferred money growing in your account, which could severely impact your future retirement security.   Lastly, unlike a 401(k) loan, a hardship withdrawal cannot be repaid. Thus, the funds are permanently removed from your retirement savings. This consideration is critical because once those funds are withdrawn, you lose the principal and the potential for future earnings.   What Are 401(k) Loans?   A 401(k) loan is another option for accessing your retirement funds, but it works differently from a hardship withdrawal. With a loan, you borrow money from your 401(k) and agree to repay it, typically with interest, over a set period. 3   With 401(k) loans, you’re required to repay the loan, usually through payroll deductions. If you leave your job, the loan must typically be repaid in full within a short time frame, or it will be treated as an early withdrawal subject to taxes and penalties.   When you take a 401(k) loan, you’re also required to pay interest on the loan. The good news is that this interest is paid back into your account, so you’re essentially paying yourself. However, the opportunity cost of having that money out of the market could outweigh the benefits.   Lastly, you can only borrow up to 50% of your vested account balance or $50,000, whichever is less. If you have a small balance, this might limit the amount you can access, making a loan less helpful in a major financial emergency. 4   Alternatives to Consider Before Accessing 401(k) Funds   Before turning to a 401(k) loan or hardship withdrawal, it’s important to explore other financial options. Here are a few alternatives to consider:   Emergency Savings   Ideally, you should have an emergency savings account to cover unexpected expenses. Accessing these funds instead of your 401(k) preserves your retirement savings.   Personal Loans   Sometimes, a personal loan or home equity line of credit (HELOC) might be a better option. While these loans have interest, they don’t impact your retirement savings.   Credit Counseling   Life happens, which sometimes means you must pay for a large expense you didn’t see coming. While withdrawing the amount from your 401(k) is one option, there are a few considerations that investors should remember before taking out the funds. If you're experiencing financial hardship, working with a credit counselor or your Patriot advisor can help you develop a plan that doesn't involve dipping into your retirement funds.   1. https://www.irs.gov/retirement-plans/hardships-early-withdrawals-and-loans   1. https://www.empower.com/the-currency/money/can-withdraw-401k-ira-penalty-free   1. https://www.fidelity.com/viewpoints/financial-basics/taking-money-from-401k   1. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-loans   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## If Your Insurance Rates Went Up, You're Not Alone URL: https://www.patriotinvestment.com/blog/insurancerates/ If you’ve recently received notice that your insurance rates are increasing, you’re far from alone. The average cost of car insurance has jumped more than 20% in the last year. 1 The average homeowner's insurance premium rose 7.6% in 2021 from 2020. 2 The countrywide average auto insurance expenditure increased 1.4%. 3   Let’s look at why rates are increasing and what you can do to help mitigate these rising rates.   Why Are Insurance Rates Rising?   Insurance rates are influenced by various factors, most of which are beyond your control. Here are just some of the reasons why your premiums might be going up:   • Inflation   • Rising costs of living   • Increased frequency and severity of natural disasters   • Supply chain disruptions   • Global unrest   • Increase in claims   • Medical advancements   What Can You Do About Rising Insurance Rates?   While it may seem like rising insurance rates are out of your hands, there are steps you can take to ensure that you're still getting the best value for your money.   Shop Around for Better Rates   One of the best ways to combat rising premiums is to shop around. Don’t assume that your current provider is offering the most competitive rates. Get quotes from multiple companies and compare coverage options. In some cases, you may find a better deal by switching insurers.   Bundle Your Insurance Policies   Many insurance companies offer discounts when you bundle multiple policies, such as auto and home insurance, with the same provider. Bundling can save you significant premiums and make managing your policies easier.   Increase Your Deductible   If you can handle a higher out-of-pocket cost in the event of a claim, consider raising your deductible. This can lower your premium, as insurers often offer lower rates for customers willing to take on more risk.   Ask About Discounts   Many insurers offer discounts for various reasons, such as having a clean driving record, installing safety devices in your home, or being a long-term customer. It never hurts to ask your provider about any discounts you may qualify for.   Review Your Coverage   Regularly review your insurance policies to ensure that you're not over-insured. For example, if you drive to the office less than you used to, you may no longer need as much coverage for the reduction in miles. Adjusting your coverage levels can reduce your premiums without sacrificing protection.   Paying for insurance is just one of the many financial pieces of the puzzle that individuals must consider. While increasing premiums might seem like a lost cause and out of your control, you can do a few things to ensure you’re still getting the best rate.   Remember, your Patriot advisor is here to help with life’s big transitions. Contact us today to review your financial plan.    1. https://www.bls.gov/news.release/cpi.nr0.htm   1. https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance   1. https://www.iii.org/fact-statistic/facts-statistics-auto-insurance/   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Is "Temporary Retirement" The Newest Trend? URL: https://www.patriotinvestment.com/blog/is-temporary-retirement-the-newest-trend/ It’s fascinating to see how the world of work has evolved so drastically over the past few years. With the rise of remote work, the gig economy, and technological advancements, the traditional career path—working from your early twenties until you hit retirement in your sixties—may be a thing of the past. A new trend is emerging in its place: "temporary retirement."   But what exactly does “temporary retirement” mean, and why are more people embracing it?   What is Temporary Retirement?   Temporary retirement, also known as a "career break" or "mini-retirement," is when individuals take extended periods off from work—anywhere from a few months to several years—before returning to their careers. 1 According to a LinkedIn survey of 23,000 workers in 2022, nearly two-thirds (62%) of employees have taken a career break at some point — and 35% would be interested in one in the future. 2   Unlike traditional retirement, in which people stop working permanently, temporary retirement is a more flexible approach. It allows individuals to take multiple breaks throughout their careers without waiting for their golden years to rest, travel, or pursue their passions. Those who return from temporary retirement may choose to return to their same career or try something completely new.   Why Are More People Choosing Temporary Retirement?   There are a few reasons why people might be drawn to temporary retirement, including changing work expectations, burnout, wanting to pursue personal passions, and more.   Historically, work has been viewed as a lifelong obligation, often prioritized above personal interests. People worked hard for decades with the promise of a stable retirement in their senior years. However, this model is becoming less appealing (and less achievable) for younger generations. According to CNBC, only 55% of millennials were eligible to participate in an employer-sponsored retirement plan, compared to 77% of Gen X-ers and 80% of Baby Boomers. 3   Since many workplaces no longer offer pension plans or employer-sponsored retirement plans, younger generations are less willing to spend most of their lives working in careers they don’t find fulfilling. Instead, they want to take a step back, recharge, and reassess their priorities with temporary retirement.   Related to that, the pressures of demanding careers, especially in competitive industries, often leave people feeling exhausted and overwhelmed. Taking temporary retirement can help prevent burnout by allowing people to rest and reset, ultimately returning to work with renewed energy and perspective.   Lastly, many people see temporary retirement as an opportunity to pursue passions or dreams that don’t necessarily fit into their working life. Whether it’s traveling the world, writing a book, starting a side project, or dedicating time to family, taking time off work allows individuals to devote themselves fully to their personal goals.   How Do People Fund Temporary Retirement?   “How do people fund their temporary retirement?” is the million-dollar question (literally).   Believe it or not, taking years off work doesn’t necessarily require extreme wealth. Many people who take a career break plan and save for it by setting aside funds specifically for this purpose.   Some strategies for funding temporary retirement include:   • Saving in advance   • Working remotely or part-time   • Downsizing expenses   Others may use investment strategies, passive income streams, or even rent out properties to fund their work break. The key is careful planning and a clear understanding of one’s financial situation before embarking on temporary retirement.   The Benefits of Temporary Retirement   There are many potential benefits to taking temporary retirement, including:   • Improved physical health   • Time for reflection   • Quality time with loved ones   • Preventing career burnout   • Time for creative exploration   • Providing a new perspective on work   • Skill development   • Time management   • Cultural enrichment   • Financial awareness and discipline   • Work-life balance   Is Temporary Retirement Right for You?   While the idea of temporary retirement sounds appealing, it’s not a one-size-fits-all solution. It requires careful financial planning and may not be feasible for everyone, particularly in industries where long absences could affect career prospects. Additionally, some may struggle with the uncertainty of re-entering the workforce after a long break. However, for those who prioritize life experiences over continuous career advancement, temporary retirement offers an exciting alternative to the conventional path.   The rise of trends like temporary retirement shows that we are changing how we think about things like work, time, and life. Embarking on temporary retirement is about much more than quitting your job for months or years. It’s about being more intentional with your time, money, and life and focusing on what’s important outside the office. If you are thinking about a temporary retirement, contact your Patriot advisor to review your financial plan.    1. https://smartasset.com/retirement/types-of-retirement   1. https://www.cnbc.com/select/millennials-behind-other-generations-retirement-savings/   1. https://www.cnbc.com/2023/11/07/career-breaks-are-common-so-why-are-we-still-hiding-them-on-resumes.html   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Retirement Planning Tips For Women Entrepreneurs URL: https://www.patriotinvestment.com/blog/retirement-planning-tips-for-women-entrepreneurs/ When you’re running your own business, retirement planning may be the last thing on your mind. However, it’s a major financial milestone that everyone should plan for. Women already face unique considerations in retirement, such as longer lifespans. This means that a well-planned retirement strategy is even more important for female entrepreneurs.  In this article, we will share some tips to help female entrepreneurs build secure and independent financial futures. Establish a Retirement Goal Early On The first step in retirement planning is to define your goals. Think about the lifestyle you want during your retirement years and estimate the expenses that will come with it. Consider factors such as housing, healthcare, travel, inflation, and your target retirement age.  The earlier you start, the more time you have to let your investments grow, thus making it easier to afford the retirement of your dreams. Diversify Your Investments As an entrepreneur, it’s quite common to rely heavily on your business as your primary financial asset. However, this approach can leave you vulnerable to market or industry fluctuations. Diversifying your investments helps you avoid putting all your eggs in one basket. Retirement accounts such as IRAs, SEP IRAs, and solo 401(k)s are excellent options for entrepreneurs. These accounts offer significant tax advantages and long-term growth opportunities. As of 2024, the SEP contribution limit was $69,000.1  In addition to retirement accounts, consider a mix of stocks, bonds, and mutual funds to balance risks and returns. Not only does diversification protect your wealth, but it also helps your investments grow steadily over time, thus providing greater financial stability. Build an Emergency Fund Before focusing on long-term financial goals, it’s crucial to establish an emergency fund. This fund provides a cushion for unexpected expenses like medical emergencies, business setbacks, or economic downturns.  To handle unforeseen situations without dipping into your retirement savings, it is advisable to have three to six months’ worth of living expenses saved in an easily accessible account. This fund is essential for entrepreneurs, as their income can sometimes be unpredictable. Protect Yourself and Your Business Your business is likely one of your most valuable assets, which is why it’s crucial to prepare for uncertainties that could impact its value or continuity. Protecting yourself and your business means securing adequate insurance coverage, including life insurance, disability insurance, and business insurance. These policies ensure that you and your business are protected during unexpected events. Leverage Tax-Advantaged Accounts Tax-advantaged accounts can play a significant role in growing your retirement savings. Options like health savings accounts (HSAs) and defined benefit plans allow you to reduce your taxable income while building a retirement fund. Furthermore, HSAs offer triple tax benefits, as contributions reduce your taxable income, funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free.2  Understanding these accounts can significantly enhance your savings potential, making these accounts an essential tool for female entrepreneurs. Automate and Prioritize Your Savings One of the best ways to consistently save for retirement is to automate your contributions. Set up automatic transfers to your retirement accounts so that you’re putting money away regularly, even during busy or lean periods. Treat these contributions as a non-negotiable part of your budget—pay yourself first before addressing other expenses. Work With a Retirement Planning Professional Retirement planning can be complex, especially for female entrepreneurs who are juggling business priorities and personal finances. A financial advisor who has experience working with small business owners can provide valuable insights that are tailored to your unique situation. They can help you to navigate tax laws, choose the best retirement plan for your needs, and balance reinvestments in your business with retirement savings. Stay Informed and Adjust Your Plan Retirement planning isn’t a set-it-and-forget-it process. Markets fluctuate, tax laws change, and personal circumstances evolve. All these factors can impact your plan. Regularly reviewing your retirement strategy ensures that it remains aligned with your goals. For female entrepreneurs, retirement planning requires a proactive and tailored approach that considers the unique challenges and opportunities of running a business. By setting clear goals, diversifying your investments, building an emergency fund, and seeking expert advice, you can create a robust retirement plan that supports both your business and your retirement goals. Schedule an annual checkup with your Patriot advisor to assess your investments, update your goals, and make any necessary adjustments. 1. https://www.irs.gov/retirement-plans/plan-participant-employee/sep-contribution-limits-including-grandfathered-sarseps 2. https://www.investopedia.com/articles/personal-finance/120715/why-hsas-appeal-more-highincome-earners.asp This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Last-Minute Tax Prep Tips URL: https://www.patriotinvestment.com/blog/lastminutetaxpreptips/ With Tax Day right around the corner on April 15, it’s easy to feel overwhelmed. Even if you’re short on time, you can still file your taxes accurately and on time with focus and preparation. These last-minute tips will help you navigate the process efficiently and avoid unnecessary stress. 1. Gather Your Documents Quickly The main task to focus on with Tax Day looming is to collect all your documents. They could include your W-2s or 1099s to report income, receipts for deductible expenses, and any relevant tax forms. Keeping them in one place helps avoid delays and errors as you prepare your return. 2. Don’t Overlook Deductions and Credits In the rush to meet the deadline, many people miss out on valuable deductions and credits. Even if you’re short on time, it’s worth pausing to check whether you qualify for tax breaks, such as the earned income tax credit, the child tax credit, or education-related credits. 3. File for an Extension If Needed If time is running out, filing for an extension can save you from late filing penalties. Submitting IRS Form 4868 gives you until October 15 to file your return.1 However, an extension only delays the filing, not the payment. If you owe taxes, estimate the amount as accurately as possible and make a payment to avoid penalties or interest. 4. Review Your Return Carefully Even under a time crunch, make sure to review your return before submitting it. Common errors, such as incorrect Social Security numbers, math mistakes, or forgotten signatures (for paper filers), can lead to delays or penalties. 5. File Electronically for Faster Processing Filing your return electronically (e-filing) is quicker and more reliable than mailing a paper return. The IRS processes e-filed returns faster and choosing direct deposit for refunds ensures you get your money sooner. According to the IRS, e-filers will typically see their refunds in less than 21 days.2 If you’re in a hurry, e-filing is the best way to ensure everything is submitted on time without complications. 6. Set up a Payment Plan if You Can’t Pay in Full If you discover you owe taxes but can’t pay the full amount immediately, don’t panic. The IRS offers payment plans and answers many frequently asked questions about payment plans on their website.3 While interest may apply, these plans often cost less than high-interest loans or credit card debt.  Filing taxes at the last minute is never ideal, but it doesn’t have to be chaotic. By staying focused, you can meet the deadline with confidence. 1. https://www.irs.gov/pub/irs-pdf/f4868.pdf 2. https://www.irs.gov/newsroom/direct-deposit-fastest-way-to-receive-federal-tax-refund 3. https://www.irs.gov/payments/payment-plans-installment-agreements This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What's My 2025 Tax Bracket? URL: https://www.patriotinvestment.com/blog/whats-my-2025-tax-bracket/ Understanding your tax bracket is crucial for effective financial planning in 2025 and beyond. Tax brackets are adjusted annually due to inflation and policy changes. Here, we outline the tax brackets for 2025 and some ways to reduce your taxable income. 2025 Federal Income Tax Brackets The IRS adjusts tax brackets annually based on inflation, and for 2025, here are the tax rates for different income levels:1 Single Filers: • 37% for incomes over $626,250 • 35% for incomes over $250,525 • 32% for incomes over $197,300 • 24% for incomes over $103,350 • 22% for incomes over $48,475 • 12% for incomes over $11,925 • 10% for incomes $11,925 or less Married Filing Jointly: • 37% for incomes over $751,600 • 35% for incomes over $501,050 • 32% for incomes over $394,600 • 24% for incomes over $206,700 • 22% for incomes over $96,950 • 12% for incomes over $23,850 • 10% for incomes $23,850 or less How Tax Brackets Work You may think that if your income falls into a certain tax bracket, your entire income is taxed at that rate. However, the U.S. uses a marginal tax system, which means that only the income within each bracket is taxed at that rate. For example, if you’re a single filer earning $50,000, only the portion of your income above $48,475 is taxed at 22%, while the lower portions are taxed at the corresponding lower rates. Standard Deductions for 2025 The standard deduction reduces your taxable income, which can significantly impact the tax you owe. For 2025, the standard deductions are:1 • Single: $15,000 • Married Filing Jointly: $30,000 • Head of Household: $22,500 If your itemized deductions exceed the standard deduction, it may be beneficial to itemize, especially if you own a home, have high medical expenses, or make significant charitable contributions. How to Reduce Your Tax Burden While tax brackets determine how much you owe, several strategies can reduce your taxable income and keep more money in your pocket. Here are just a few strategies to consider: Contribute to Retirement Accounts Contributions to tax-advantaged retirement accounts, such as a 401(k) or an individual retirement account (IRA), lower your taxable income. In 2025, you can contribute up to $23,500 to a 401(k) and up to $7,000 ($8,000 if 50 or older) to a traditional IRA.2 Use a Health Savings Account (HSA) If you have a high-deductible health plan, contributing to an HSA offers tax advantages. The 2025 contribution limits are $4,300 for individuals and $8,550 for families.3 Take Advantage of Tax Credits Tax credits directly reduce your tax bill rather than just your taxable income. Popular credits include: • Child Tax Credit: Provides up to $2,000 per qualifying child under age 17.4 • Earned Income Tax Credit (EITC): For qualifying taxpayers who have three or more qualifying children, the tax year 2025 maximum Earned Income Tax Credit amount is $8,046.1 • American Opportunity Tax Credit: This tax credit helps students and parents with education costs, offering up to $2,500 per eligible student for tuition, fees, and course materials.5 Consider Tax-Loss Harvesting If you have investment losses, you can use them to offset capital gains and reduce your tax burden. Up to $3,000 of excess losses can be deducted against ordinary income per year.6 When you understand your tax bracket and utilize tax-saving strategies, you can make informed financial decisions and keep more of your hard-earned money. Be sure to consult with your Patriot Advisor for additional strategies to maximize your tax savings. 1. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025 2. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000 3. https://thedaily.case.edu/irs-announces-2025-contribution-and-benefit-limits/ 4. https://www.hrblock.com/tax-center/filing/credits/child-tax-credit/ 5. https://www.irs.gov/credits-deductions/individuals/aotc 6. https://www.irs.gov/taxtopics/tc409 This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Q1 2025 Newsletter URL: https://www.patriotinvestment.com/blog/q1-2025-newsletter/ U.S. Markets Stocks fell in the first quarter as investors contended with economic uncertainty, inflationary concerns, and evolving tariff talks. The Standard & Poor’s 500 Index slid 4.59%, while the tech-heavy Nasdaq Composite dropped 10.42%. The Dow Jones Industrial Average fared best, sliding only 1.28%.1 January’s Black Swan Stocks rallied in January on upbeat business and economic messaging from the White House. However, tech stocks pulled markets lower later in the month on news that a Chinese start-up had developed a competitive artificial intelligence (AI) model that performed as well as its Western counterparts at a fraction of the cost.2  As the month came to a close, investors evaluated whether it was indeed a “black swan” event or just another development in the fast-moving world of AI.2 February's New High Stocks hit new highs following February’s Presidents' Day holiday. But stubborn inflation, mixed economic signals, and an evolving trade policy tempered enthusiasm. As the month came to a close, an upbeat inflation report led to a powerful rally, which helped limit losses.3,4 Ongoing Trade Talks in March March was a different story, however. Stocks trended lower throughout the month as fast-moving trade policy updates unnerved investors. Things improved slightly by mid-month as a choppy rally attempt tried to take shape. But sellers gained the upper hand in the final full week of trading on a mixed inflation report and souring consumer sentiment.5 The Fed The Federal Open Market Committee (FOMC) held rates steady at both of its meetings in Q1. Testifying before the Senate Banking Committee on February 10, Chair Powell told lawmakers the Fed doesn’t “need to be in a hurry” to lower interest rates further, given the economy was currently “strong overall.”10 At its March meeting, Fed Chair Jerome Powell acknowledged that progress toward their 2% inflation target is “probably delayed for the time being.” He said that the Fed maintains its wait-and-see stance toward tariffs and their longer-term impact on inflation.11 The FOMC’s next meeting is scheduled for May 6-7.11 What Investors May Be Talking About in April In the month ahead, investors will stay focused on the global impact of President Trump’s new tariffs, viewing it as a pivotal moment that could reshape trade dynamics. While markets have experienced sharp movements, many see volatility as an opportunity to reposition portfolios for long-term growth.  Amid these shifts, caution remains high as investors weigh risks against opportunities in an uncertain economic landscape. On another note, companies will start to release their Q1 corporate reports, which may provide some insights into what will drive the economy in the future. One of the best ways to understand chief executive officers' thoughts is to analyze the words or terms they use during their conference calls with shareholders. In Q4 2024, 241 of the S&P 500 companies cited the term “AI” during their calls. By contrast, only 13 mentioned the word “recession,” the lowest level since Q1 2018. 7,8 Two hundred and thirty CEOs cited the term in Q4, which is down from more than 400 in Q1 2022. 9 We Are Here for You At Patriot, we remain committed to focusing on the factors within our control – asset allocation, costs, and strategic planning. We emphasize the importance of diversification through low-cost index funds, maintaining reasonable withdrawal rates, and avoiding attempts to time the market. These three elements are vital to the success of your financial plan. If you'd like to review your allocation or goals, we're just a phone call or email away. 1. WSJ.com, March 31, 2025 2. CNBC.com, January 27, 2025 3. CNBC.com, February 19, 2025 4. WSJ.com, February 28, 2025 5. WSJ.com, March 28, 2025 6. Sectorspdrs.com, March 31, 2025 7. Insight.FactSet.com, March 14, 2025 8. Insight.FactSet.com, March 10, 2025 9. Insight.FactSet.com, March 17, 2025 10. CNBC.com, February 11, 2025 11. WSJ.com, March 19, 2025 This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## The Psychology Of An Inheritance Windfall URL: https://www.patriotinvestment.com/blog/the-psychology-of-an-inheritance-windfall/ According to Federal Reserve data, American households inherit an average of $46,200.1 These inheritance windfalls can bring a complex mix of emotions, psychological challenges, and financial decisions. While the prospect of a sudden financial gain might seem like a dream, the reality often involves navigating grief, guilt, and new responsibilities. Understanding the psychological impact of inheritance can help beneficiaries make sound financial and emotional decisions. Let’s learn more. The Emotional Rollercoaster of Inheritance When someone receives an inheritance, grief often impacts their initial reaction. The money, property, or assets come as a result of losing a loved one, and this connection can evoke deep emotions. Some heirs might experience guilt or a sense of obligation, believing they must use the inheritance in a way that would honor the deceased. On the other hand, some people feel excitement or relief, especially if they have struggled financially. However, sudden wealth—whether large or small—can disrupt a person’s financial mindset and long-term goals. The Psychological Pitfalls of Sudden Wealth Receiving a financial windfall, even through inheritance, can trigger behaviors similar to those seen in lottery winners. Psychologists call the adjustment issues, including the crisis of identity, depression, and anxiety, that come from unexpectedly acquiring significant wealth “sudden wealth syndrome.”2 Common psychological pitfalls of sudden wealth may include: Sudden Lifestyle Inflation Many people upgrade their lifestyle quickly, making expensive purchases without considering the long-term impact on their finances. Guilt-Induced Generosity Some heirs feel compelled to share their inheritance with family members or donate excessively to charity, sometimes depleting their funds faster than anticipated. Fear and Decision Paralysis Some individuals become overwhelmed by the responsibility of managing a large sum of money and delay making important financial decisions, leading to missed opportunities. Family Conflicts Inheritances can lead to disputes among relatives, creating emotional stress and sometimes lasting divisions. Risky Investments Some recipients may invest impulsively in get-rich-quick schemes or volatile assets without financial literacy, leading to losses. Strategies for Managing an Inheritance Wisely To navigate an inheritance’s psychological and financial considerations, recipients should take time to evaluate both their emotional state and how to invest the money for long-term gains. Allow Time for Emotional Processing There is no denying that an inheritance comes with emotional weight. Taking time to grieve and reflect before making major financial decisions can prevent rash, emotionally driven choices. Consult Financial and Legal Experts Working with a financial planner or estate attorney can help beneficiaries understand tax implications, investment options, and wealth preservation strategies. Seeking professional advice can help heirs manage their inheritance wisely. Establish Clear Financial Goals Defining short- and long-term financial goals helps prevent impulsive spending. Whether it’s paying off debt, investing for the future, or funding education, having a plan ensures the money serves a meaningful purpose. Create a Budget and Investment Strategy Beneficiaries should treat their inheritance as part of a structured financial plan rather than spending it freely. Creating a budget and diversifying investments can help sustain wealth over time. Address Emotional Attachments Some people hesitate to use inherited money because they feel it belongs to the deceased. Understanding that inheritance is a gift intended to support their future can help individuals use it wisely rather than hold onto it indefinitely out of sentimentality. While receiving an inheritance can be emotionally and financially overwhelming, it also presents an opportunity to create long-term stability and fulfillment. With careful planning and understanding of the psychology behind an inheritance windfall, recipients can honor their loved one’s legacy while securing their financial well-being. During this time of transition, your Patriot Advisor is here to help you thoughtfully navigate the gift your loved one left behind. 1. https://www.investopedia.com/what-is-the-average-inheritance-8697757 2. https://caldaclinic.com/sudden-wealth-syndrome-impact-of-money-on-mental-health/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Safeguard Your Digital Estate URL: https://www.patriotinvestment.com/blog/safeguard-your-digital-assets/ In today's digital age, our online presence has become as vital as our physical belongings. Our digital footprint is extensive, spanning social media profiles to online banking, email accounts, and even cryptocurrency wallets. However, what happens to all these assets when we can no longer manage them? Enter the concept of a digital estate. Just as you would safeguard your home, car, and financial accounts, securing your digital assets is crucial. Here’s how you can take proactive steps to protect your digital estate. What is a Digital Estate? Your digital estate encompasses all the online accounts, digital files, and assets you’ve accumulated over the years.1 This can include social media profiles, online banking and investment accounts, email, cloud storage, digital photos and videos, blogs, websites, and any other virtual property you own. The value of these assets isn’t always monetary—often, they hold significant sentimental or operational value, such as family photos or business documents. Neglecting to safeguard these assets can lead to complications for your loved ones in the event of your death or incapacitation. They might struggle to access essential accounts, face challenges with social media companies, or even lose access to valuable digital assets. By taking steps now to secure your digital estate, you can ensure your wishes are respected and make the transition smoother for those you leave behind. The Importance of Digital Estate Planning Digital estate planning includes organizing your digital assets and specifying how they should be handled after your death. Here’s why it’s essential: • Without proper planning, your loved ones may lack the credentials or legal authority to access your accounts. This can result in locked accounts, lost data, and unresolved financial matters. • Your digital estate may contain sensitive information that should not fall into the wrong hands. Planning helps ensure that your personal data remains secure and is only accessed by those you trust. • Digital estate planning allows you to ensure that sentimental items, such as photos, videos, and personal messages, are preserved and passed on according to your wishes. • If you own a business or have digital assets contributing to your income, planning ensures these assets can be managed or transferred without disruption. How to Safeguard Your Digital Estate Now that you understand the importance of digital estate planning, here’s how to get started: 1. Take Inventory of Your Digital Assets Begin by listing all your digital accounts, including social media profiles, email accounts, cloud storage, financial accounts, and any other online services you use. Don’t forget about subscriptions, digital currencies, and intellectual property like blogs or websites. 2. Organize Your Digital Assets Record important information such as usernames, passwords, security questions, and two-factor authentication details for each account. Consider using a secure password manager to keep track of this information safely. 3. Designate a Digital Executor As you would appoint an executor for your physical estate, choose a trusted individual to manage your digital assets. This person should be tech-savvy and aware of your wishes. Ensure they have the legal authority to act on your behalf, which may require specific legal documentation. 4. Create a Digital Estate Plan Work with an attorney to incorporate your digital assets into your will or trust.2 Your plan should specify how you want each asset handled, including whether it should be transferred to someone else, archived, or deleted. Ensure that your digital executor is aware of this plan and knows where to find it. 5. Regularly Update Your Plan Digital assets and passwords change over time, so it's important to review and update your digital estate plan regularly. Ensure that your inventory is current and that any new assets are included. 6. Communicate Your Wishes Have a conversation with your loved ones about your digital estate plan. While this might be uncomfortable, they must understand your wishes and know where to find the necessary information. By organizing your digital assets, designating a trusted individual to manage them, and creating a comprehensive digital estate plan, you can ensure that your online legacy is handled according to your wishes. For more tips on safeguarding your digital estate, contact your Patriot advisor today. 1. https://www.experian.com/blogs/ask-experian/what-is-digital-estate-plan/ 2. https://smartasset.com/estate-planning/what-is-digital-estate-planning This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Planning A Debt-Free Vacation URL: https://www.patriotinvestment.com/blog/planning-a-debt-free-vacation/ A vacation should be a time to relax, explore, and create lasting memories, not a financial burden that follows you home. Yet, according to a Bankrate survey, more than one in three (36%) are willing to go into debt to pay for it. 1 The good news is that you can enjoy a fantastic trip without going into debt. Here are some tips for planning a debt-free vacation. Set a Realistic Budget Before choosing a destination, determine how much you can realistically afford to spend without going into debt. Consider all possible expenses, including the following: • Transportation • Lodging • Food • Activities • Extras (souvenirs, tips, emergency costs, etc.) Some people suggest spending no more than 5% of your annual income on vacations. Once you set a budget, commit to sticking to it. Start a Vacation Fund If you don’t have the money for a trip right now, start saving in advance. A dedicated vacation fund will help you stay on track and avoid dipping into your emergency savings. Here are some tips to help you save for your next vacation: • Open a separate savings account and contribute a set amount each month via automatic transfer. • Cut unnecessary expenses. Small sacrifices, such as skipping a few takeout meals or canceling unused subscriptions, can add up to hundreds of dollars over time. Even saving $50 a month means you’ll have $600 a year—enough for a weekend getaway! Choose an Affordable Destination You don’t have to travel to expensive tourist hotspots for a great vacation. Many hidden gems offer incredible experiences for a fraction of the price. Check out national parks, smaller cities, and more affordable international destinations. Researching lesser-known locations can lead to a more unique and cost-effective trip. Travel During the Off-Season Timing can make a huge difference in travel costs. Flights, accommodations, and attractions are significantly cheaper during shoulder seasons (between peak and off-seasons). For example, traveling to Europe in May or September instead of July can save you 30–50% on flights and hotels. 2 The same applies to tropical locations; for example, visiting the Caribbean in the fall instead of the winter can save you hundreds of dollars. Look for Deals and Discounts Travel costs can add up quickly, but there are plenty of ways to save: • Sign up for airline alerts. Airlines and travel sites often send promotions to subscribers. • If you have a credit card with travel awards, redeem points for flights or hotels. • Use discount sites such as Groupon, TravelZoo, and Secret Escapes to find deals on accommodations and activities. By spending a little time researching, you can easily save hundreds—if not thousands—of dollars on your trip. Consider Alternative Accommodations Hotels can be expensive, but there are plenty of budget-friendly alternatives, such as these: • Vacation rentals, such as Airbnb (especially helpful for families or larger groups) • Hostels • House-sitting or home exchanges • Staying with friends or family Accommodation is often the biggest expense after airfare, so being flexible about where you stay can save you a lot of money. Cut Unnecessary Expenses Of course, you want to have a great time while on vacation, but small expenses can add up quickly. Here are some tips to keep your spending in check: • If your accommodation has a kitchen, cook some meals to save money. A simple breakfast and lunch at home can save you $20–$50 a day. • Instead of renting a car or relying on Uber or taxis, use local buses, subways, or bikes. • Find free or low-cost attractions: Many cities offer free walking tours, parks, beaches, and museums with free admission days. Use Credit Cards Wisely Credit cards can be helpful if used responsibly, but they can also lead to vacation debt if not managed properly. Charge only what you can afford to pay off immediately. Use travel rewards cards to earn cash back, airline miles, or hotel points. Look for cards with travel perks, such as no foreign transaction fees, free checked bags, or trip insurance. If you’re worried about overspending, consider a prepaid travel card instead. Plan and Prepay Where Possible One of the best ways to stay on budget is to book and pay for major expenses in advance. Booking hotels and flights early can often lock in lower rates. The same is true for excursions, activities, and car rentals. Paying in advance means fewer surprises and less temptation to overspend while on vacation. Avoid Impulse Spending Souvenirs, last-minute excursions, and unplanned meals can quickly derail your budget. Stay in control: • Set a spending limit for extras. • Instead of pricey trinkets, collect meaningful but inexpensive items, such as postcards or local crafts. • Say no to unnecessary upgrades. A dream vacation doesn’t have to be a financial nightmare. By planning ahead, budgeting, and making smart choices, you can enjoy an unforgettable trip without coming home to a pile of debt. Connect with your Patriot Advisor today to build a sound financial plan that supports your travel goals—so you can enjoy your next vacation without the burden of debt. 1. https://www.bankrate.com/credit-cards/news/survey-summer-vacation/ 2. https://www.travelandleisure.com/travel-tips/when-to-book-flights-for-cheapest-airfare This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## The Benefits Of Financial Literacy For Teens And Young Adults URL: https://www.patriotinvestment.com/blog/the-benefits-of-financial-literacy-for-teens-and-young-adults/ Financial literacy is more than just a valuable skill—it is a necessity. Many young people enter adulthood without a solid understanding of money management, which can lead to long-term financial struggles. According to one study, nearly three out of four teens (74 percent) are not financially literate. 1   Teaching financial literacy to teens and young adults equips them with the knowledge and tools they need to make informed financial decisions. Here are some of the key benefits of financial literacy for young people.   1. Encourages Smart Budgeting Habits Understanding how to budget helps teens and young adults control their spending, prioritize expenses, and avoid unnecessary debt. Learning to track income and expenses at a young age lays the foundation for financial stability later in life. By practicing budgeting skills early, young people can develop habits that lead to long-term financial security.   1. Helps Avoid Debt and Credit Pitfalls Credit cards and student loans become financial traps if not handled appropriately. Many young adults accumulate significant debt because they don’t understand interest rates, minimum payments, or the consequences of missing payments. Financial literacy enables them to make informed choices about borrowing money, using credit responsibly, and understanding how debt affects their financial future.   1. Builds Strong Saving and Investing Habits The earlier you start saving, the more financial security you can build. For example, if a 16-year-old invests an initial $500 and contributes $100 per month, they could have saved nearly $50,000 by the time they’re 40, based on a 4 percent interest rate. 2   Teaching young people about emergency funds, compound interest, and investment strategies helps them grow their wealth over time. Understanding how to save and invest allows them to take advantage of financial opportunities and avoid living paycheck to paycheck.   1. Improves Decision-Making and Financial Independence When teens and young adults understand financial concepts, they become more confident in making financial decisions. This confidence can extend to everything from housing and transportation to major purchases.   1. Prepares for Long-Term Financial Goals Whether buying a home, starting a business, or strategizing for retirement, financial literacy helps young people set and achieve long-term financial goals. Knowing how to budget, save, and invest ensures they can build a solid financial foundation for future success.   Financial literacy is more than learning how to handle money; it’s about taking control of your financial future. By equipping teens and young adults with essential financial knowledge, we can help them avoid common financial pitfalls and set them up for lifelong success. Investing in financial education early on is one of the best ways to create a financially responsible and empowered generation. Contact your Patriot advisor today to learn how you can support financial literacy for the young people in your life. Together, we can build a foundation for their long-term financial success.   1. https://www.choosefifoundation.org/blog/scary%20financial%20literacy%20statistics   1. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## How To Recover From A Financial Setback: Strategies For Rebuilding URL: https://www.patriotinvestment.com/blog/how-to-recover-from-a-financial-setback-strategies-for-rebuilding/ Financial setbacks happen to everyone at some point. Job losses, unexpected medical expenses, or poor financial decisions can strain your finances. While setbacks can feel overwhelming, recovery is possible.   Here are some tips on rebuilding and regaining control of your financial future after a setback.   Assess the Damage   The first step to recovery is to determine where you stand. Dig deep into your finances, listing all your debts, expenses, and income sources, and then identify the root cause of the setback and address it as needed. This could be looking for a new job, calling your medical provider to set up a payment plan, or talking to a financial advisor to determine whether you can move assets around to pay off any high-priority debt.   Once you know the situation, you can develop a realistic plan.   Create a New Budget   Adjusting your budget is crucial to accommodating your current financial situation. Prioritize essentials such as housing, utilities, and food. Cut unnecessary expenses and look for ways to save. Small changes, like cooking at home or pausing subscriptions, can make a big difference.   Tackle Debt Strategically   If debt is part of your financial setback, create a repayment plan. Here are a few options:   Snowball Method Pay off the smallest debt first while making minimum payments on others. This method builds motivation, as you can observe quick progress, giving you a psychological boost. 1   Avalanche Method Focus on paying off high-interest debts first while making minimum payments on other balances. This approach saves you more money in the long run by reducing interest payments. 2   Debt Consolidation If you have multiple debts with high interest rates, consolidating them into a single loan with a lower interest rate can simplify payments and reduce costs.   Debt Management Plan (DMP) Working with a credit counseling agency to create a structured repayment plan can help negotiate lower interest rates and waive specific fees.   Negotiation and Settlement Some creditors may be willing to negotiate a lower payoff amount or adjust repayment terms if you’re struggling to keep up. Contact them directly to explore options.   Balance Transfer If you have high-interest credit card debt, transferring balances to a card with a lower interest rate (often with an introductory 0 percent APR) can help you pay down the principal faster.   Build an Emergency Fund   An emergency fund can prevent future setbacks even if you can set aside only a small amount each month. Aim for at least three to six months’ worth of essential expenses. Start with a small, achievable goal and increase contributions as your finances improve.   Increase Your Income   Finding ways to boost your income can accelerate financial recovery, especially if you’re in a tough spot. Consider:   • Taking on a side gig or freelancing   • Selling unused items   • Asking for a raise or looking for higher-paying job opportunities   Every extra dollar can go toward savings or debt repayment.   Maintain a Positive Mindset   Financial recovery takes time, and setbacks can be discouraging. Stay focused on your progress and celebrate small wins. Surround yourself with supportive people, and remind yourself that financial hardships are temporary.   A financial setback can be challenging, but it can also be an opportunity to build more vigorous financial habits. You can rebuild and secure a better financial future by assessing your situation, adjusting your budget, tackling debt, and finding ways to increase your income.   Seek Professional Guidance   If your situation feels unmanageable, a financial advisor or credit counselor can provide guidance. They can help create a structured plan, negotiate with creditors, and offer strategies tailored to your specific situation. Don’t wait—reach out to your Patriot Advisor today and take the first step toward financial stability and peace of mind.   1. https://www.nerdwallet.com/article/finance/what-is-a-debt-snowball   1. https://www.nerdwallet.com/article/finance/what-is-a-debt-avalanche   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## How Big Should My Emergency Fund Be? URL: https://www.patriotinvestment.com/blog/how-big-should-my-emergency-fund-be/ Life is unpredictable. One day, everything is running smoothly, and the next, you’re hit with a medical emergency, job loss, or unexpected home repair. That’s why having an emergency fund is crucial. But how much should you save? The answer depends on your financial situation, lifestyle, and risk tolerance. Let’s dive in. The General Rule: 3 to 6 Months of Expenses Financial experts commonly suggest setting aside three to six months’ worth of essential living expenses. This range offers a buffer against unforeseen events such as medical emergencies, job loss, and major home repairs. To determine your target amount: • Calculate your essential monthly expenses: Add up costs for housing (rent or mortgage), utilities, groceries, insurance premiums, transportation, and minimum debt payments. • Set your savings goal: Multiply your total monthly essential expenses by three to six, depending on your comfort level and job security. For example, if your essential expenses total $3,000 monthly, aim for an emergency fund between $9,000 and $18,000. When to Save More While the three- to six-month guideline is a good starting point, individual circumstances may warrant saving more. Here are a few times when that might make sense: Job Stability If you’re in a volatile industry or role, consider saving more. Recent data indicates that the average duration of unemployment is 23.7 weeks (approximately 5.5 months), with some industries experiencing even more extended periods. This is the longest average since April 2022. 1 Income Variability Freelancers, contractors, or those with irregular income should aim for a larger cushion, possibly up to 12 months of expenses. Dependents and Obligations Having dependents or significant financial commitments may require a more substantial emergency fund. Health Considerations Additional savings can provide peace of mind if you or a family member have ongoing medical needs. The Reality of Emergency Savings Among Americans Despite recommendations, many Americans are unprepared for financial emergencies: • Approximately 37 percent of Americans can’t afford an unexpected expense over $400. 2 • The median emergency savings for Americans is $600. 3 • In 2022, 54 percent of adults had set aside money for three months of expenses in an emergency savings or “rainy day” fund, down from previous years. 2 How to Build Your Emergency Fund If you don’t have an emergency fund yet, here are some tips to help: Start Small and Be Consistent Begin by setting aside manageable amounts regularly. Consistency is key. Automate Savings Set up automatic transfers to your emergency fund to ensure regular contributions. Reduce Unnecessary Expenses Identify and cut discretionary spending, redirecting those funds to your savings. Utilize Windfalls Wisely Allocate bonuses, tax refunds, or monetary gifts to bolster your emergency fund. Choose the Right Savings Vehicle Keep your emergency fund in a liquid, easily accessible account, such as a high-yield savings account or money market account. This ensures you can access funds quickly without penalties. The right emergency fund size depends on your unique situation. A solid savings cushion provides peace of mind and financial stability. Start where you can and build overtime; your future self will thank you. Contact your Patriot Advisor today to get more personalized strategies for building your emergency fund – no matter where you’re starting from. 1. https://www.cnbc.com/2025/01/10/jobs-report-december-2024.html 2. https://www.federalreserve.gov/publications/2023-economic-well-being-of-us-households-in-2022-expenses.htm 3. https://www.benefitspro.com/2024/07/17/now-more-than-ever-employees-need-an-emergency-savings-account/?slreturn=20250311-14240 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 8 Step Summer Financial Checkup URL: https://www.patriotinvestment.com/blog/8-step-summer-financial-checkup/ It seems like when summertime hits, time slows down. The hustle and bustle of the holiday season is over, taxes are complete, and vacation days are scheduled. If you find yourself with some extra time on your hands in the upcoming months, you may want to use this opportunity to check in on your family’s finances. While conducting a thorough analysis of your wealth may sound intimidating, we’ve broken the process down into eight simple steps to keep you focused and on track.   Step 1: Analyze Your Budget   In May 2025, the Bureau of Economic Analysis reported that the average personal savings rate was only 4.5%. An effective way to avoid spending more than you’re earning is to step back and take stock of your monthly and annual budgets. If you don’t have a budget at all, use this time to make one. 1   Many credit cards or banks will offer categorical breakdowns of your spending, which can be a great way to find out what you’re spending the most money on and to determine if there’s room to cut back. To get the best look at your spending habits, you may want to evaluate your savings and spending record over the past 6–12 months.   Step 2: Seek Out Tax Savings   Do you scramble to pull your paperwork together every March and April? This year, try taking a different approach to the tax season by evaluating your tax strategies early. You may want to work with your financial planner or tax professional to create a mock tax return, as this can help you understand your withholding options and tax-saving opportunities, such as 401(k) or 403(b) options, IRAs, and HSA contributions.   Focus on filing any time-sensitive deductions and brush up on changes in tax laws. Reaching out to your tax professional could mean that you have more time to prepare and strategize together for next year’s returns.   Step 3: Tackle Your Debt   An alarming 48% of cardholders carry credit card debt from month to month. If you’re guilty of putting off managing your expenses, now’s the time to start planning to pay them off. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it’s the bad debt (credit card debt, student loans, etc.) that you’ll likely want to focus on managing and eliminating. 2   While you could be tempted to simply pay off what shows up on the bills each month, you may want to create a debt summary to get a better idea of your total debt’s big picture. By creating an annual debt summary, you and your financial advisor can better understand whether you’re gradually working down your amount of debt or falling further into the hole.   Step 4: Revisit Short and Long-Term Goals   A lot can change in a year—marriage, death, divorce, growing your family, and experiencing a major career change. Even seemingly small adjustments, such as a job promotion or sending a kid off to college, can have a significant impact on your financial status. This is why it’s important to regularly review your long-term goals and progress toward them while revisiting and evaluating your shorter-term goals.    Step 5: Evaluate Coverage and Providers   As you’re reviewing your budget and expenses, take the extra time to evaluate your current providers and coverage options thoroughly. This includes your internet, cable, and wireless service providers, in addition to your insurance coverage options. If you tend to set up auto payments and forget about your monthly bills, this could be an opportune time to revisit what it is you’re actually paying for.   Step 6: Reassess and Rebalance Your Portfolio   It’s important to visit your portfolio and risk tolerance regularly to help keep it in line with your tolerance, goals, and market conditions. While most managed portfolios are rebalanced automatically, it’s important to take stock of your investments’ big picture, as doing so can help you determine if you need to diversify differently or reassess your risk tolerance.   Step 7: Review Your Retirement Savings   Whether your retirement is decades down the line or within the upcoming year, reviewing your retirement savings on an annual basis is a great habit. Take the time to assess whether you’re maxing out your retirement contribution options and how the savings you’re making today will translate into retirement income later down the line.   Step 8: Assess Your Estate Plan   It’s not fun to plan for the worst-case scenario, but leaving your family with an outdated will, trust, or estate plan can lead to major issues down the line. As you assess your legacy plan annually, make sure you’re accounting for any newly acquired assets (houses, cars, pets, etc.) while checking that your designated beneficiaries are still willing and able to assist in the event of your passing.   While you’re likely daydreaming of reading books, going to beaches, and barbecuing your backyard this summer, don’t forget to do yourself a favor and squeeze in some financial planning, as well.   1. https://www.bea.gov/data/income-saving/personal-saving-rate   1. https://www.bankrate.com/credit-cards/news/credit-card-debt-report/   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Q2 2025 Market Insights URL: https://www.patriotinvestment.com/blog/q2-2025-market-insights/ U.S. Markets   Markets rose in the second quarter as investors witnessed the new U.S. trade policy's impacts unfold, while tensions continued in the Middle East.   The Standard & Poor’s 500 Index rose 10.57%, while the Nasdaq Composite climbed 17.75%. The Dow Jones Industrial Average gained 4.98%. 1   April Showers   Soon after the closing bell rang on April 2, investors were caught off guard by a tariff update from the White House. Global markets reacted to the news overnight. Stocks declined over several sessions. 2   However, on April 9, after the White House announced a 90-day pause on specific tariffs, markets pushed higher. The S&P 500 gained 9.5%—its largest one-day increase in 17 years. Stocks rallied late in the month on news that the administration intended to de-escalate tariff tensions with China. 3,4   May Flowers   Stocks rebounded strongly in May as certainty around trade increased and investor anxiety lessened. Soft inflation data also helped push stock prices higher. By the end of May’s second full week, the S&P 500 had erased its year-to-date losses. 5   After a well-received quarterly corporate report from a mega-cap AI chipmaker, a trade update unsettled investors. The S&P 500 finished the strongest May in 30 years. 6,7   June Shoots   For June, international matters took the spotlight, with continued tariff talk between the U.S. and China, and conflict in the Middle East resulting in a ceasefire. Solid corporate earnings, a still-strong labor market, and a recovery in artificial intelligence-related stocks provided some underlying strength to the rally, with the S&P 500 and Nasdaq hitting all-time highs. 8,9,10,11,12   The Fed   The Federal Open Market Committee (FOMC) held rates steady at its June meeting. Fed Chair Powell said policymakers are “well positioned to wait” before moving on short-term rates. He added that while the labor market is in balance, the Committee expects “a meaningful amount of inflation in the coming months…. We have to take that into account.” When testifying before Congress on June 24, Powell stayed on point with essentially the same message despite pressure from the White House to cut rates. Policymakers still have penciled in two rate cuts between now and year-end. 13,14   The FOMC scheduled the next meeting for July 29-30.   What Investors May Be Talking About in July   The White House's trade policy began in earnest on April 2, right at the start of the second quarter. It’s unclear how upcoming reports might reflect trade policy.   The Bureau of Labor Statistics scheduled its import and export report mid-month, expecting to provide some early insights into trade policy.   The Bureau of Economic Analysis will give investors its first glimpse at second-quarter economic activity at the end of the month. The Atlanta Fed's GDP Now model, which provides a running estimate based on available economic data, has been trending higher since April. 15   We Are Here for You   At Patriot, we remain committed to focusing on the factors within our control – asset allocation, costs, and strategic planning. We emphasize the importance of diversification through low-cost index funds, maintaining reasonable withdrawal rates, and avoiding attempts to time the market. These three elements are vital to the success of your financial plan. If you’d like to review your allocation or goals, we’re just a phone call or email away.   1. WSJ.com, June 30, 2025 2. WSJ.com, April 4, 2025 3. WSJ.com, April 9, 2025 4. CNBC.com, April 22, 2025 5. CNBC.com, May 12, 2025 6. CNBC.com, May 13, 2025 7. Finance.Yahoo.com, May 30, 2025 8. MarketWatch.com, June 5, 2025 9. CNBC.com, June 24, 2025 10. WSJ.com, June 6, 2025 11. CNBC.com, June 12, 2025 12. WSJ.com, June 27, 2025 13. 13. WSJ.com, June 18, 2025 14. 14. WSJ.com, June 24, 2025 15. 15. GDPNow.com, June 17, 2025 This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Making Sense Of HSAs And FSAs URL: https://www.patriotinvestment.com/blog/making-sense-of-hsas-and-fsas/ With family health insurance premiums rising 297 percent since 2000, averaging over $25,000 annually, some employees feel the squeeze. Deductibles, too, have jumped nearly 50 percent over the last decade, further increasing out-of-pocket expenses. In this environment, understanding and using Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can help families take more control of their healthcare finances. 1 What Are HSAs and FSAs? HSAs and FSAs are special accounts designed to help manage medical expenses. If you have an HSA, you must also be enrolled in a high-deductible health plan (HDHP). You contribute to the account, and your employer can also choose to contribute. Funds roll over from year to year. FSAs are usually employer-sponsored accounts. You contribute pretax dollars through payroll deductions. However, the funds must typically be used within the plan year unless your employer offers a grace period or limited rollover. Both accounts allow you to use pretax dollars to pay for qualified medical expenses, such as copays, prescriptions, or over-the-counter medications. The one that may be best for you can depend on many factors. Key Differences Between HSAs and FSAs Feature HSA FSA Who owns the account? You Your employer Contributions You and/or your employer You (via paycheck deductions) Funds roll over? Yes Sometimes (depends on employer rules) Investment options Yes No Portability (can you take it with you?) Yes No Contribution Limits: For 2025, the IRS allows individuals to contribute up to $4,300 and families up to $8,550 to an HSA. People over 55 can contribute an extra $1,000 annually. The FSA has a contribution limit of $3,300 ($6,600 for households). 2,3 Why These Accounts Matter More Than Ever Rising premiums and deductibles mean Americans are shouldering more health care costs than ever. Since 2000, workers’ out-of-pocket costs for health insurance have nearly quadrupled. Today, it takes over five weeks of full-time work to pay the employee share of premiums, and this is before a single doctor's visit. Moreover, deductibles for families can exceed $3,700. 1 Employers are also increasingly shifting healthcare costs to workers through narrower provider networks, more prior authorizations, and tiered drug pricing systems. That’s where HSAs and FSAs come in. By allowing workers to set aside pretax money, these accounts help manage healthcare costs and create a strategy for expected and unexpected expenses. Remember that if you spend your HSA funds for non-qualified expenses before age 65, you may be required to pay ordinary income tax and a 20 percent penalty. After age 65, non-qualified expenses are taxed as ordinary income taxes on HSA funds, and no penalty applies. HSA contributions are exempt from federal income tax but not from state taxes in certain states. Real-Life Scenarios Where HSAs and FSAs Help • Having a Baby:  New parents can face an increase in health-related costs, ranging from prenatal care and delivery to postnatal checkups and baby essentials. An FSA can help cover many of these expenses with pretax funds, whereas an HSA can carry over unused funds for future pediatric visits. • Job Change:  Moving to a high-deductible plan may make you eligible for and your HSA funds remain yours even if you switch employers or retire, making it a flexible long-term tool. • Chronic Illness Diagnosis:  Copays, prescriptions, and specialist visits add up quickly. An HSA or FSA can manage the blow, and an HSA with investment options that are available with some plans. • Caring for Aging Parents:  From prescriptions to home health aides, caregiving costs can be significant. FSAs can help cover some expenses, and for those with HDHPs, an HSA provides a long-term strategy for health-related caregiving costs. Other HSA/FSA Tips • Use online calculators to see what might work for you. • Prepare for known medical expenses to use funds strategically. • Monitor your balances online and review your list of eligible expenses. • If you have an HSA, see if there is an investment option associated with the account. Remember: during any qualifying life event, like marriage, a new child, or a job change, review your options because these events may allow you to enroll in or adjust your benefits outside Open Enrollment. Final Thoughts Understanding how HSAs and FSAs work and using them effectively can make a meaningful difference during life’s most important transitions. If you haven’t explored these options, now may be the time to start.  If you have questions, please contact your Patriot Advisor today! 1. https://www.moneygeek.com/resources/rising-cost-of-health-insurance/ 2. https://healthy.kaiserpermanente.org/shop-plans/deductible-plans/using-fsa-hsa-hra-account 3. https://www.irs.gov/newsroom/irs-healthcare-fsa-reminder-employees-can-contribute-up-to-3300-in-2025-must-elect-every-year This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## August In National "Make A Will" Month URL: https://www.patriotinvestment.com/blog/august-in-national-make-a-will-month/ August is National “Make a Will” Month, and it’s a great annual reminder to update your will if needed and create a will if you don’t have one already. A will is an important estate-planning document that can help you transfer your assets with ease. Having a proper will can make the difference between a smooth transfer of assets and a probate nightmare.   Let’s learn more about what wills are, why you need one, and some tips on how to create or update your will during National “Make a Will” Month.   What Is a Will?   A will, or a Last Will and Testament, is a legal document that outlines your intention for the distribution of your assets after your death. It is an integral part of a comprehensive estate plan and helps your loved ones avoid legal and financial loopholes and know what to do with your assets. These explicit instructions are essential and can help everyone avoid a lot of headaches.   Wills vs. Trusts   When you’re researching estate planning documents, you have likely come across both wills and trusts. While both documents can help dictate what you want to do with your assets when you’re gone, there is one main difference.   The primary difference between a will and a trust is that a trust takes effect as soon as it’s created and signed, while a will does so only after you pass away. 1 There are also two different types of trusts to consider: irrevocable and revocable.   • Irrevocable trusts are trusts that can’t be changed or canceled after they have been signed.   • Revocable trusts can be changed, and the grantor has the right to change the terms or even end the trust.   Some other differences between wills and trusts are that a will requires probate to transfer items to beneficiaries, but trusts can avoid probate. In addition, wills are public record and trusts can remain private. Because a trust takes effect right when it’s created, it can be used if you become incapacitated and unable to make decisions independently.   Do You Need a Will?   We face so many financial obligations every day, so should creating a will be at the top of your list? Most financial experts say yes, you need a will. Even if you don’t have substantial assets to transfer, a will can still help your family feel more confident about your wishes. In addition to making the transfer of assets easier, here are a few benefits of having a will: 2   • It allows you to distribute your property and protect your loved ones after you pass away.   • It can provide peace of mind for you and your family.   • You can plan for those in your care (e.g. naming a legal guardian for your children or pets).   • It may prevent family conflict.   • It can eliminate confusion over assets.   • It can help ensure that your assets go to the people you want to have them.   • It can help you build a lasting legacy.   • You can use your will to benefit charitable causes.   These are just a few of the many benefits of having a will. To celebrate National “Make a Will” Month, let’s look at how to create a will.   How to Create a Will   Creating a will can be a straightforward process, or it can involve the help of attorneys and financial advisors. Also, the process will depend on where you live because every state has different requirements for creating a will.   Generally, the first step in creating a will is to determine what you want to include. You should include instructions for passing along your assets after your death, including ownership and other instructions. You may consider working with an attorney to ensure that your will contains everything it needs.   Next, you will likely sign your will in front of two witnesses, and these two witnesses will also sign your will. Some states require a self-proving affidavit that you sign in front of a notary, other states require your will to be notarized, and some states don’t require any special self-proving documentation as long as you sign and witness your will correctly. 2   Whether you have $10 worth of assets or $10 million, creating a will is a good idea to give your family more guidance after you pass. A will can help make the transfer of assets easier and give you and your family more peace of mind. If you need help coordinating with an estate attorney or have questions about integrating your will with your broader financial plan, your Patriot Advisor is here to guide you every step of the way.   1. https://trustandwill.com/learn/what-is-a-will   1. https://www.investopedia.com/articles/pf/08/what-is-a-will.asp   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Retirement Strategy: Money & Longevity URL: https://www.patriotinvestment.com/blog/retirement-strategy-money-longevity/ When considering your retirement strategy, how much thought do you give to how long you might live? It can be an uncomfortable reality to consider, but this shouldn't dissuade you from giving it some serious thought.   For many people preparing for retirement, one of the biggest fears is running out of money. If you've lived to 65 years, you will probably live to at least 84 years if you're male and 87 years if you're female, according to Social Security tables. These are only estimates, but it's important to keep in mind that you might live much longer than you expect, and some household members could outlive others by many years. 1   You might, in fact, live to 100 years and beyond: the National Institute on Aging anticipates that the number of centenarians will grow by a factor of 10 during the first half of this century, representing a host of challenges for anyone attempting to devise a retirement strategy. 1   For example, healthcare costs must be incorporated. As you age, your healthcare needs will likely grow from simple doctor's visits to potentially living in an extended care facility. These costs naturally increase over time, whether through inflation, market volatility, or other factors. So, while you can look at today's prices as a guide, you will likely need much more money to cover your healthcare. Medicare will help, but it doesn't cover everything, including a lengthy stay in extended care. 2   Your retirement strategy might include a spending plan that considers the likelihood that you will want to travel, pursue your interests, and spend time with family, as well as, allowing for a long life and covering the associated financial expenditures. Unless you are working beyond retirement age, it can be difficult to make up for a market dip, emergency expense, or heavy spending, so your strategy should cover many circumstances.   How much will you need to withdraw per year without diminishing your account too quickly, while still accounting for inflation and other factors? Calculating this as part of your retirement strategy may be essential. While some financial professionals have downplayed the 4% rule in recent years—the amount of your investments used in the first year of retirement—and have revised it upward or downward as needed, the theory is that you may be able to live on your retirement funds for upwards of 30 years or more. 3   Other factors to consider include focusing on tax-efficient withdrawals from your retirement accounts. You might also decide that working longer or taking Social Security later (allowing larger payouts per month) could extend your retirement strategy further. Your Patriot advisor can help you develop your comprehensive financial plan that supports your retirement goals. Together, we'll address important topics like income planning, investment strategy, and risk management, translating your retirement vision into a clear, actionable path.   1. https://www.rbcwealthmanagement.com/en-us/insights/will-you-outlive-your-money-in-retirement-3-risks-to-plan-for-now   2. https://www.npr.org/2022/02/19/1081875948/inflation-has-many-retirees-worried-about-outliving-their-savings   3. https://www.cnbc.com/select/what-is-the-4-percent-retirement-savings-rule/   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## 5 Things to Consider When Thinking About Paying Off Your Child's Student Loans URL: https://www.patriotinvestment.com/blog/5-things-to-consider-when-thinking-about-paying-off-your-childs-student-loans/ College tuition is at an all-time high. As of 2025, the average student loan debt is $38,375 per student, and the average monthly student loan payment was $536. 1,2  It's no wonder parents want to help their children pay off their student loans as quickly as possible. Paying off this debt could help set your child up for success as they make important financial choices, such as applying for a mortgage.   However, is paying off your child's student loans early always the best option? Here are five things to consider when deciding whether to help your child pay off their student loans.   Consider Any High-Interest Debt First   Before helping your child pay off their student loans, you should consider whether you have any high-interest debt yourself. Generally, student loans feature a moderately low interest rate (around 4%–7%, depending on the loan).   If you have debt at a higher interest rate, such as credit card debt or a personal loan, you may want to consider paying off that debt before helping your kid. Prioritizing debt repayment by interest rate can help you decide whether you should help pay off student loans or other debts first.   Your Payments May Qualify as Tax-Free Gifts   Some parents may want to pay off their child's student loans but are afraid of triggering a gift tax. Luckily, there are a few ways around this tax.   According to the IRS, the tuition you pay for someone may qualify as a non-taxable gift. 3  However, this is applicable only when the payment is made directly to the school or university. With that in mind, if your child has any student loans that were issued by the university, payments toward these expenses may be tax-free. Talk to your CPA or a tax professional to be sure.   Another way to avoid the gift tax is to stay within the gift tax exclusion for the year. In 2025, the gift tax exclusion is $19,000. 3  This means that each parent can give up to $19,000 a year ($38,000 total). If your gift stays within these parameters, you shouldn't have to pay a gift tax.   Discuss a Repayment Plan   If you are worried about your child's ability to make their student loan payments on time and want to help, it might be worth having a conversation with them, as well as their lenders, to see if there are any repayment plans available. Most loans, especially federal student loans, offer repayment plans that can be stepped up or down depending on your child's income. 4   Don't Forget Retirement   As important as it is to take care of your children, it's also important to take care of yourself. As you get closer to retirement age, it might make more sense to contribute the money you would have used for your child's student loans to your retirement savings. Your children have long careers ahead of them to make payments on their loans. As your earning years come to a close, it's important to prioritize retirement savings because you won't be able to work forever.   Paying off your child's student loans is a generous thing to do, and it might make sense for your financial situation, but before diving in completely, it's important to review your financial plan with your Patriot Advisor when considering possible repayment plans, loan forgiveness, tax implications, and other debt and savings goals.    1. https://www.credible.com/blog/statistics/average-student-loan-debt-statistics/   2. https://educationdata.org/average-student-loan-payment   3. https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes   4. https://studentaid.gov/manage-loans/repayment/plans   5. https://studentaid.gov/manage-loans/forgiveness-cancellation   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## The One Big Beautiful Bill And You URL: https://www.patriotinvestment.com/blog/the-one-big-beautiful-bill-and-you/ On July 4, the One Big Beautiful Bill was signed into law at a White House ceremony. This domestic policy bill extends the 2017 tax cuts set to expire this year, making some of those rules permanent. The bill also creates several new tax laws for individuals while addressing other tax issues for businesses. 1,2   It might be a good time to check with your tax, legal, or accounting professional about the changes in the law. Some will start this year, while other changes will kick in in 2026. Like previous tax laws, some new rules are scheduled to expire, while others are permanent. Here’s a look at changes expected to impact most tax filers shortly.   Taxes   One key feature of the One Big Beautiful Bill Act is the extension and revision of some of the tax laws that were part of the 2017 Tax Cuts and Jobs Act (TCJA). Here’s a quick summary of the three changes we found the most interesting:   Extension of Tax Rates   The bill extends the current tax rates of the 12%, 22%, 24%, 32%, and 37% brackets, respectively. Had the TCJA expired, the rates would have reverted to 15%, 25%, 28%, 33%, and 39.6%. The sixth tax bracket stayed the same at a 35% tax rate. 1,2   Standard Deduction   It also increased the standard deduction to $15,750 for single filers and $31,500 for those filing jointly for 2025. Both are slightly rising from the current rate. Note: The standard deduction will adjust for inflation starting next year. 1,2   State and Local Tax Deduction (SALT)   The SALT will increase to $40,000 in 2025 and will increase 1% annually until 2030. However, in 2030, it will revert to $10,000. Note: SALT has a $500,000 threshold for single and married filers. 1,2   The “Bonus” Deduction   The new “bonus” deduction for older Americans has received much attention since the One Big Beautiful Bill Act became law on July 4. Here’s what’s changing for seniors with the new bill: starting in 2025, the bill provides a $6,000 bonus deduction for filers 65 and up in addition to the standard deduction available to all taxpayers. The new rule will also affect unmarried/non-surviving spouses. The deduction begins to phase out for individuals with incomes starting at $75,000, or joint filers with an income of $150,000. It phases out completely for individuals earning more than $175,000 and couples earning $250,000. Note: The bonus deduction ends in 2028. 1,2   Child Tax Credit   Starting in 2025, the child tax credit of $2,000 will increase to $2,200. The credit also has a COLA (cost-of-living adjustment) attached. 1,2   Dependent Care   The bill, which will take effect in 2026, increases the dependent care flexible spending account limit from $5,000 to $7,500. It also raises the maximum percentage of qualified expenses for dependent care from 35% to 50%. 1,2   American Family Account   The government will make a one-time $1,000 payment into an account for babies born between 2025 and 2028. Note: Parents can add up to $5,000/year. No withdrawals are allowed before age 18. 1,2   529 Expansion   The bill extends the 529 umbrella to cover nontuition expenses related to elementary or secondary school attendance. In addition, starting in 2026, the cap for tuition-related expenses increases from $10,000 to $20,000. 1,2   New Car Loans   Between 2025 and 2028, a $10,000 deduction on new car loan interest will be available, but some limitations will apply (such as the car needing to be brand-new). First, the deduction will be reduced if your gross income exceeds $100,000, or $200,000 if you are married. The car’s final assembly must occur in the U.S. to qualify for the deduction. 1,2   Electric Vehicle (EV) Subsidies   Some home improvements (such as windows) and residential energy credits (adding solar) end after December 31, 2025. EV credits for new and used cars end after September 30, 2025. 1,2   Small Business Deductions   The new law permanently establishes a deduction of up to 20% of qualified business income for sole proprietorships, partnerships, and S-corps. 1,2   100% Expensing of Capital and Factory Investments   The bill restores the provision that allows businesses to expense 100% of capital investments made on or after January 19, 2025. However, some limitations may apply. 1,2   1099-K   The new law sets reporting limits at $20,000 and 200 transactions for transactions on cash apps. Note: The rule starts in 2025. It rolls back the $600 threshold set in previous legislation. 1,2   No Tax on Tips   A new $25,000 deduction for tips starting in 2025 and ending in 2028 is part of the new law. The deduction is reduced if your gross income exceeds $150,000, or $300,000 if you are married and filing jointly. Note: The tax on tips provision is allowed, even if you take the standard deduction. 1,2   No Tax on Overtime   New overtime deductions were created, starting in 2025 and ending in 2028. These comprise a $12,500 deduction (single filers) and a $25,000 deduction (married filing jointly). Note: Like no tax on tips, the deduction reduces if your gross income exceeds $150,000, or $300,000 if married filing jointly. 1,2   Charitable Contribution Recordkeeping   Charitable contributions of $1,000 for individual filers and $2,000 for married couples filing jointly are now deductible, even if you don’t itemize your deductions. 1,2   Estate and Gift Tax Exemption   The bill increases the estate and gift tax exemption starting in 2026. This year, it is capped at $13.99 million for single filers and $27.98 million for married filing jointly. In 2026, it will increase to $15 million for single filers and $30 million for married filing jointly. Note: The exemption will increase with inflation. 1,2   A Note on Estate Management   Ever since the Tax Cuts and Jobs Act of 2017, there has been an ongoing concern that the estate and gift tax exemption would revert to the 2017 level in 2025. Although the new bill extends the rule, it may change again sometime in the future. Often, the best approach to estate management is being proactive. 1,2   The new bill has added complexity to the tax code, so it is anticipated that the IRS will issue guidelines for interpreting the updated rules later this year. Individuals with questions are encouraged to reach out, and any relevant information received will be shared as it becomes available. Contact your Patriot Advisor today to discuss how these changes may impact you and to ensure you’re making informed decisions moving forward.   1. https://www.cnbc.com/2025/07/03/trump-big-beautiful-bill-tax-changes.html   2. https://www.congress.gov/bill/119th-congress/house-bill/1/text   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## The ABCs of Medicare: What Recent Retirees Need To Know About Their Coverage Options URL: https://www.patriotinvestment.com/blog/the-abcs-of-medicare-what-recent-retirees-need-to-know-about-their-coverage-options/ Whether you’ve officially retired or are still working full time, it’s possible your health insurance options are changing. Depending on your age or health status, you may soon be qualified for Medicare. While you’ve likely heard of it before, we’re breaking down what exactly it is, who Medicare benefits and what each Medicare part covers.   What Is Medicare?   Medicare is a government-funded national health insurance program that was established in 1966. It is designed to offer coverage to individuals including: 1      • Those who are 65 or older   • Individuals under 65 with qualifying disabilities   • Individuals with End-Stage Renal Disease (ESRD)   Medicare is broken down into several parts that cover specific services. While Part A and Part B are part of the “original” Medicare plan, Parts C and Part D offer optional additional coverage.   Part A: Hospital Insurance   Part A is considered hospital insurance.   As such, it covers hospital-related expenses such as: 2   • Inpatient hospital care   • Skilled nursing facility costs   • Hospice   • Lab tests   • Surgery   • Some home health care services   Most beneficiaries don’t pay Part A premiums out of pocket if they or their spouse paid Medicare taxes while working. 1  It’s important to note, however, that annually adjusted standard deductibles still apply.   Many pre-retirees are frequently warned that Medicare Part A will only cover a maximum of 100 days of nursing home care (provided certain conditions are met). Under the current Part A rules, you would pay $0 for days 1-20 of care in a skilled nursing facility (SNF). During days 21-100, a $209.50 daily coinsurance payment may be required of you. 3      Knowing the limitations of Part A, some people look for other choices when it comes to managing the costs of extended care.   Part B: Medical Insurance   Part B is considered the medical insurance portion of Medicare.   It covers expenses like: 2   • Physicians’ fees   • Outpatient hospital care   • Certain home health services   • Durable medical equipment   • Some offerings not covered by Medicare Part A   Part B does come with some costs, however, which are adjusted annually. The premiums vary, according to the Medicare recipient’s income level, but the standard monthly premium amount is $185 for 2025, with a yearly deductible of $257. 3   Part C: Medicare Advantage   Sometimes called “Medicare Part C,” Medicare Advantage (MA) plans are often viewed as an all-in-one alternative to Original Medicare.   MA plans are offered by private companies approved by the federal government. Although these plans come with standardized minimum coverage, the amount of additional protection offered can differ drastically from one person to the next. This is due to unique provider networks, premiums, copays, coinsurance and out-of-pocket spending limits.   If you’re interested in obtaining an MA plan, you may find it beneficial to compare prices and services offered by different vendors.   Part D: Prescription Drug Coverage   While MA plans often offer prescription drug coverage, insurers also sell federally standardized Medicare Part D plans as a standalone product to those with Medicare Part A and/or Part B.    Every Part D plan has its own list of covered medications. If you're interested in obtaining a Part D plan, Medicare’s website offers the formulary of approved drugs and prices, organized by tier.   Whether you're approaching retirement, newly eligible, or starting to explore your healthcare options, choosing the right Medicare coverage is an important step. Your Patriot Advisor is ready to guide you through the process and provide the resources and/or referrals you need to make confident, informed decisions.   1. https://www.medicare.gov/Pubs/pdf/11306-Medicare-Medicaid.pdf 2. https://www.medicare.gov/what-medicare-covers 3. https://www.medicare.gov/basics/costs/medicare-costs This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Q3 2025 Market Insights URL: https://www.patriotinvestment.com/blog/q3-2025-market-insights/ U.S. Markets Stocks powered ahead in the third quarter as solid economic data, strong corporate results, and a positive shift in Fed policy drove market momentum. The Standard & Poor’s 500 Index advanced 7.79% while the Dow Jones Industrial Average gained 5.22%. The tech-heavy Nasdaq Composite led the way, gaining 11.24%. 1 A Jumpstart in July Stocks rose steadily in July as investors viewed economic updates, trade development, and second-quarter corporate results in a positive light. The White House announced a trade agreement with Japan, which helped push the Nasdaq above 21,000 for the first time. 2,3 Investors largely yawned at the news of the trade agreement between the U.S. and the E.U. but were unsettled when the Fed decided to hold rates steady at the end of the month. 4 An August Advance In August, a sluggish jobs report, followed by upbeat inflation news, appeared to crack the door for the Fed to adjust short-term rates. 5 Stocks pushed higher after Fed Chair Powell, speaking at the Fed’s annual symposium in Jackson Hole, contended that the downside risk of employment is greater than the upside risk of inflation. To investors, that seemed to indicate that the Fed was ready to move. 6 A September Splash September’s markets slowly built momentum as tech stocks rallied, accelerating further following the Fed’s long-anticipated rate cut. Powell’s cautious comments about valuations rattled the markets for a day, but stocks ended the quarter on a powerful note despite the Congressional budget deliberations. 7 The Dow closed the quarter at an all-time high, while the S&P 500 and Nasdaq closed just below their all-time peaks. 8 The Fed The Fed convened two official meetings and its annual symposium in Q3. The Federal Open Market Committee (FOMC) held rates steady at its July meeting and hinted at growing concern for the labor market at its symposium in Jackson Hole, Wyoming. In his symposium speech, Powell highlighted the “curious” situation in an apparently stable U.S. labor market where the supply of and demand for workers were dropping and made the case that some softening in the labor market would act as a check against inflation. 9 At its September meeting, the FOMC not only lowered rates by a quarter percentage point but also telegraphed that more adjustments were being considered before year's end. The widely expected cut in September brought the Fed Funds Rate to a 4.0–4.25% target range. 10 The Federal Reserve has two more scheduled meetings this year: on October 28-29 and December 9-10. What Investors May Be Talking About in October By mid-October, companies will start to report their third-quarter corporate results. Two key drivers of stock prices are earnings and the value investors are willing to pay for those earnings. So, expect Wall Street to watch the corporate reports and look for any insights into 2026. 11 Later in the month, investors will get the advance estimate on third-quarter gross domestic product. Economists have been revising their GDP outlooks higher since August, with some estimates topping 3%. Wall Street will want to learn what’s driving growth as they start to make their 2026 outlooks. 12 1. wsj.com, September 30, 2025 2. cnbc.com, July 3, 2025 3. cnbc.com, July 23, 2025 4. cnbc.com, July 30, 2025 5. cnbc.com, August 13, 2025 6. cnbc.com, August 24, 2025 7. cnbc.com, September 18, 2025 8. cnbc.com, September 30, 2025 9. WSJ.com, August 23, 2025 10. WSJ.com, September 17, 2025 11. Bankrate.com, January 14, 2025 12. AtlantaFed.org, September 30, 2025 This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Open Enrollment Begins November 1st. Consider These 4 Tips for Choosing a Health Insurance Plan URL: https://www.patriotinvestment.com/blog/openenrollment/ Open enrollment (the annual period when you can enroll in major medical health insurance plans), begins November 1, 2025, and will remain open until January 15, 2026. You will need to enroll by December 15, 2025 for coverage that begins January 1, 2026. 1  For someone looking to change or add coverage, this offers a short window of time to decide on and select your health insurance plan. To avoid a hasty decision to meet this deadline, take some time now to review and prepare. Below we’ve rounded up our top tips for choosing the right health insurance plan for you and your family’s needs.    Who Should Utilize Open Enrollment?   The Open Enrollment Period (or OEP) is for anyone looking to make a change to their health insurance coverage, whether through their workplace or the federal market. This could include looking for a cheaper plan with similar coverage, gaining coverage if you previously had none or changing your coverage altogether to better meet your needs.   Tip #1: Assess Your Current Costs    When thinking about changing your health insurance plan, it’s important to reassess your healthcare-related expenses. Look at how much you’re currently paying per month for your plan as well as what sort of out-of-pocket expenses you paid over the past 12 months.    These could include:   • Routine doctor’s visits   • Specialist visits   • Prescriptions   • Emergency room or urgent care visits   Unless you foresee any major changes in the coming year (such as pregnancy), this could be a helpful indicator when it comes to determining what type of coverage will be cost-effective and appropriate for you.   If you find your out-of-pocket expenses to be too high, now’s your opportunity to search for a plan with lower deductibles (although your monthly premiums will likely rise).   Tip #2: Choose Your Marketplace   You may be able to gain coverage through several marketplaces, including:   • Your or your spouse’s workplace   • Federal marketplace   • Local or state marketplace   • Private exchange   • Directly through insurance providers   If you have the option to gain coverage through your employer, this will likely provide you with the lowest premiums. That’s because your employer pays a portion of the premium, which tends to be lower anyway.   If your employer does not provide healthcare coverage (or you wish to look elsewhere for it), you can gain coverage through the federal or state marketplace. You’ll start at Healthcare.gov, which will then direct you to your state’s marketplace (if applicable). While premiums are likely to be higher, you may be eligible for premium tax credits to help offset the monthly cost.   Tip #3: Decipher Your Available Plan Types   There are four common types of health insurance plans you’ll come across when selecting coverage: HMO, PPO, POS, and EPO.   Health Maintenance Organization (HMO)   Pros:  HMOs tend to have lower monthly premium costs and out-of-pocket costs as compared to other plan types.    Cons:  You’re typically limited to seeing providers only in your network, and these must be coordinated by your primary care provider (unless it’s an emergency). This gives you less overall flexibility.   Preferred Provider Organization (PPO)   Pros:  PPOs offer the user more freedom when it comes to choosing healthcare providers and specialists. You can see people outside of your coverage network, although this will typically result in higher out-of-pocket costs. Additionally, you typically will not need a referral from your primary care provider to make appointments with specialists.   Cons:  Out-of-pocket costs and premiums tend to be higher for PPO plans, especially when compared to an HMO.   Point of Service Plan (POS)   Pros:  With a POS plan, you have the flexibility to visit out-of-network healthcare providers, but typically at a high out-of-pocket cost.   Cons:  Similar to an HMO, you will likely need a referral from your primary care provider to see a specialist or have a medical procedure done. Additionally, your primary doctor will coordinate your care for you.   Exclusive Provider Organization (EPO)   Pros:  An EPO will typically offer you lower out-of-pocket costs, and a referral is not needed to see specialists or have medical procedures done.   Cons:  You will be required to visit specialists within your network unless it is an emergency. An EPO will typically provide less flexibility and freedom when it comes to choosing care providers.   Tip #4: Account For Your Current Providers   As shown above, every plan type either requires you to visit in-network providers or offers lower out-of-pocket costs for visiting an in-network specialist. If you already have preferred providers on your current plan, switching plans could jeopardize your ability to visit them in the future (or cost you more to do so).    When comparing plans, make sure to check whether your current healthcare providers are in-network. If they are, you should have no problem continuing to see them as you did before. If they’re out-of-network, you’ll either have to find a new provider or prepare to pay more for every visit.   Picking the right health insurance plan for you and your family can feel daunting, confusing and rushed. With some time left before open enrollment, do yourself a favor and create your plan of action now. Prepare now by determining what type of plan may be right for you, what coverage you know you’ll need and what marketplace you’ll be buying from. When November hits, you’ll be more than ready to decide what’s right for your healthcare needs.   1. https://www.healthcare.gov/apply-and-enroll/get-ready-to-apply/   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Risk Management: Understanding Diversification URL: https://www.patriotinvestment.com/blog/risk-management-understanding-diversification/ When you created your investment strategy, your asset allocation reflected your goals, time horizon, and tolerance for risk.   Over time, however, any of these three factors may have changed, and your portfolio may need adjustments to reflect your new investing priorities.   Diversification   The saying “don’t put all your eggs in one basket” has some application to investing. Over time, certain asset classes may perform better than others. If your assets are mostly held in one kind of investment, you could find yourself under a bit of pressure if that asset class experiences volatility.   Keep in mind, however, that diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if an investment sees a decline in price.   Asset allocation strategies are also used in portfolio management. When financial professionals ask you questions about your goals, time horizon, and tolerance for risk, they get a better idea of what asset classes may be appropriate for your situation. However, like diversification, asset allocation is an approach to help manage investment risk. It does not eliminate the risk of loss if an investment sees a decline in price.   Determining an Appropriate Mix   Appropriate asset allocation is determined by each individual's situation. Here are three broad factors to consider:   Time   Investors with longer timeframes may be comfortable with investments that offer higher potential returns but also carry a higher risk. A longer timeframe may allow individuals to ride out the market’s ups and downs. An investor with a shorter timeframe may need to consider market volatility when evaluating various investment choices.   Goals   They come in all shapes and sizes, and some are long-term, while others have a shorter time horizon. Knowing your investing goals can help you keep on target.   Risk Tolerance   An investor with higher risk tolerance may be more willing to accept greater market volatility in the pursuit of potential returns. An investor with a lower risk tolerance may be willing to forgo some potential return in favor of investments that attempt to limit price swings.   Have Your Investing Priorities Changed?   If so, this is all the more reason to review and possibly adjust the investment mix in your portfolio. Asset allocation is a critical building block of investment portfolio creation. Having a strong knowledge of the concept may help you when considering which investments are appropriate for your long-term strategy. Contact your Patriot Advisor today to ensure your financial plan still aligns with your current goals and priorities. A quick check-in now can help keep you on track for the future you’ve envisioned.   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Giving Season Has Arrived! Here's 5 Ways To Maximize Your Year-End Giving Strategy URL: https://www.patriotinvestment.com/blog/giving-season-has-arrived-heres-5-ways-to-maximize-your-year-end-giving-strategy/ Wondering if you’re prepared for the upcoming giving season?   The holidays are here, and to minimize stress and maximize your gifting abilities, it’s important to keep in mind a few ideas that you may or may not be aware of.    If you’re not sure how your finances match up with your upcoming year-end giving strategy, now is the time to prepare by making your lists and checking them twice. Organization is key to proper gifting this holiday season. Follow the five tips below to maximize your charitable giving strategy this year.   1. Do Your Research By using sites such as GuideStar or the Better Business Bureau’s Wise Giving Alliance, you can learn more about the groups you’re interested in donating to.    The organizations you’re involved with should also be able to provide registration information, including 501(c)(3) status and tax identification numbers. You may also use the tax-exempt organization search tool available on the IRS website to obtain more specific information about such organizations.    1. Bundle Your Donations As deductions have increased over the years, you may choose to save money over time and donate every few years as opposed to consecutively each year. By doing this, you may receive itemized deductions that go over the limit one year and take the standard deduction the next.    If you’re interested in accomplishing this, you might consider a donor-advised fund that allows you to make a charitable donation and immediately receive a tax break. Then, your preferred charities will receive grants from the fund over time. 1   1. Donate Appreciated Stock By donating stocks or other appreciated assets, such as artwork or antiques, you might reduce capital gains taxes on investments. 2    High-income earners specifically might consider a non-cash donation because of the tax advantages they may be awarded. Even those who have what they might consider small holdings could benefit by donating appreciated investments this holiday season.    1. Utilize Your IRA If you’re a retiree over the age of 70½, you might consider transferring money from your IRA to a qualifying charity. These distributions can be a tax-efficient way of meeting any required minimum distribution. Additionally, there’s no need to itemize your deductions to benefit.     Each taxpayer may distribute up to $108,000 for 2025. This increases to an acceptable $216,000 for married couples if they both have IRAs. 3  Although this strategy has existed for some time, it has only recently become a part of the permanent tax code.    1. Monitor and Evaluate Your Portfolio  No matter the size of your seasonal contributions, it’s always important to keep up-to-date knowledge on your portfolio to give properly and confidently. Staying informed through newsletters, annual reports, and CEO updates can be an important factor when it comes to understanding the operations of various organizations.    It’s important to set personal reminders, at least annually, to re-evaluate your financial and personal priorities and update them, if need be. Your interests and priorities are bound to change over time, and so will the causes you choose to support. Being aware of these fluctuations is key, and maintaining a thoughtful attitude is what makes the holidays meaningful. Be sure to reach out to your Patriot Advisor to discuss your gifting strategy.   1. https://www.investopedia.com/terms/d/donoradvisedfund.asp   2. https://www.irs.gov/publications/p526   3. https://www.irs.gov/newsroom/reminder-to-ira-owners-age-70-and-a-half-or-over-qualified-charitable-distributions-are-great-options-for-making-tax-free-gifts-to-charity   This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## What's My 2026 Tax Bracket? URL: https://www.patriotinvestment.com/blog/whats-my-2026-tax-bracket/ Understanding your tax bracket is crucial for effective financial planning in 2026 and beyond. Tax brackets are adjusted annually due to inflation and policy changes. Here, we outline the tax brackets for 2026 and some ways to reduce your taxable income.    2026 Federal Income Tax Brackets   The IRS adjusts tax brackets annually based on inflation, and for 2026, here are the tax rates for different income levels: 1   Single Filers:   • 37% for incomes over $640,600   • 35% for incomes over $256,225   • 32% for incomes over $201,775   • 24% for incomes over $105,700   • 22% for incomes over $50,400   • 12% for incomes over $12,400   • 10% for incomes $12,400 or less   Married Filing Jointly:   • 37% for incomes over $768,700   • 35% for incomes over $512,450   • 32% for incomes over $403,550   • 24% for incomes over $211,400   • 22% for incomes over $100,800   • 12% for incomes over $24,800   • 10% for incomes $24,800 or less   How Tax Brackets Work   You may think that if your income falls into a certain tax bracket, your entire income is taxed at that rate. However, the U.S. uses a marginal tax system, which means that only the income within each bracket is taxed at that rate. For example, if you’re a single filer earning $100,000, only the portion of your income above $50,400 is taxed at 22%, while the lower portions are taxed at the corresponding lower rates.   Standard Deductions for 2026   The standard deduction reduces your taxable income, which can significantly impact the tax you owe. For 2026, the standard deductions are: 1   • Single: $16,100   • Married Filing Jointly: $32,200   • Head of Household: $24,150   If your itemized deductions exceed the standard deduction, it may be beneficial to itemize, especially if you own a home, have high medical expenses, or make significant charitable contributions.   How to Reduce Your Tax Burden   While tax brackets determine how much you owe, several strategies can reduce your taxable income and keep more money in your pocket. Here are just a few strategies to consider:   Contribute to Retirement Accounts Contributions to tax-advantaged retirement accounts, such as a 401(k) or an individual retirement account (IRA), lower your taxable income. In 2026, you can contribute up to $24,500 to a 401(k) and up to $7,500 ($8,600 if 50 or older) to a traditional IRA. 2   Use a Health Savings Account (HSA) If you have a high-deductible health plan, contributing to an HSA offers tax advantages. The 2026 contribution limits are $4,400 for individuals and $8,750 for families. 3   Take Advantage of Tax Credits Tax credits directly reduce your tax bill rather than just your taxable income. Popular credits include:   • Child Tax Credit : Provides up to $2,200 per qualifying child under age 17. 4   • Earned Income Tax Credit (EITC) : For qualifying taxpayers who have three or more qualifying children, the tax year 2026 maximum Earned Income Tax Credit amount is $8,231. 1   • American Opportunity Tax Credit : This tax credit helps students and parents with education costs, offering up to $2,500 per eligible student for tuition, fees, and course materials. 5   Consider Tax-Loss Harvesting If you have investment losses, you can use them to offset capital gains and reduce your tax burden. Up to $3,000 of excess losses can be deducted against ordinary income per year. 6   When you understand your tax bracket and utilize tax-saving strategies, you can make informed financial decisions and keep more of your hard-earned money. As always, consult your tax professional to ensure you’re maximizing your deductions and credits while staying compliant with IRS regulations—and reach out to your Patriot advisor to explore how these strategies fit into your broader financial plan.   1. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill   2. hhttps://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500   3. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf   4. https://www.irs.gov/credits-deductions/individuals/child-tax-credit   5. https://www.irs.gov/credits-deductions/individuals/aotc   6. https://www.irs.gov/taxtopics/tc409   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Understanding Social Security Benefit Taxation URL: https://www.patriotinvestment.com/blog/understanding-social-security-benefit-taxation/ Receiving Social Security benefits is advantageous in retirement, but like almost every other form of income, these benefits are taxed by the government. To accurately predict your retirement income (and taxes), it’s important to understand how Social Security benefits are taxed.   Here, we explain everything you need to know about Social Security benefit taxation.   How are Social Security Benefits Taxed?   While Social Security benefits are a vital source of income for many retirees, a portion of these benefits may be subjected to federal income taxes. The Internal Revenue Service (IRS) uses a formula—known as the provisional income formula—to determine the taxable amount. 1   Provisional Income Formula   An individual’s provisional income is calculated by adding together their adjusted gross income (AGI), their nontaxable interest, and one-half of their Social Security benefits. The resulting amount is compared to specific thresholds to determine the portion of the benefits that will be subject to taxation.   Taxation Thresholds   The thresholds that determine whether Social Security benefits are taxable are as follows: 1   • Single filers with a provisional income between $25,000 and $34,000 may have up to 50% of their benefits subject to taxation.   • Single filers with a provisional income exceeding $34,000 may have up to 85% of their benefits subject to taxation.   • Married couples filing jointly with a provisional income between $32,000 and $44,000 may have up to 50% of their benefits subject to taxation.   • Married couples filing jointly with a provisional income exceeding $44,000 may have up to 85% of their benefits subject to taxation.   It’s important to note that these thresholds are not adjusted for inflation, which means that the benefits of more retirees may become subject to taxation over time.   State Taxes on Social Security Benefits   In addition to federal taxes, some states also impose taxes on Social Security benefits. However, the rules and exemptions vary from state to state. Currently, nine states tax Social Security benefits to some extent, while the remaining states do not impose state taxes on these benefits. West Virginia is ending taxation of benefits in 2026. 2   Strategies to Minimize Social Security Taxes   There are several strategies that you can implement to potentially reduce the taxes on your Social Security benefits. Here are a few:   Diversify Your Retirement Income   Diversify your sources of income during retirement. By relying on a combination of Social Security benefits, retirement savings, and other investments, you may be able to reduce your provisional income and lower your tax liability.   Consider Delaying Benefits   Delaying your Social Security benefits can increase the amount of your monthly payment. This strategy can also help you push back the taxation of your Social Security benefits if you anticipate being in a higher tax bracket in the future.   Create a Withdrawal Strategy   Strategically managing withdrawals from your retirement accounts can help optimize your tax situation. By taking distributions from taxable accounts instead of tax-deferred accounts, you can potentially minimize your provisional income and reduce the taxation of your Social Security benefits.   Understand State Tax Laws   If you live in a state that taxes Social Security benefits, familiarize yourself with the rules and exemptions that are specific to your state. Consulting with a tax professional can provide valuable insights into how to minimize your state tax obligations. You may also want to take the different state tax laws into account when you are deciding where you will live when you retire.   As the famous saying goes, there are only two guarantees in life: death and taxes. Reach out to your Patriot Advisor for help understanding how your benefits are taxed and for guidance in creating a dependable retirement income plan.   1. https://www.ssa.gov/benefits/retirement/planner/taxes.html   2. https://www.aarp.org/retirement/social-security/questions-answers/which-states-do-not-tax-social-security-benefits.html   ##### This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## Q4 2025 Market Insights URL: https://www.patriotinvestment.com/blog/q4-2025-market-commentary/ U.S. Markets   U.S. stocks notched a solid gain in the fourth quarter as investors cheered lower interest rates and solid corporate profits while navigating limited economic updates due to the U.S. government shutdown.   The Standard & Poor’s 500 Index gained 2.35%, while the Nasdaq Composite added 2.57%. The Dow Jones Industrial Average advanced 3.59%.  1   October Shutdown   U.S. stocks rose for the sixth consecutive month in October as AI- and tech-led advances pushed major averages. 2   Solid Q3 corporate results helped drive market momentum over a month that is notorious for declines. However, after the U.S. Senate failed to pass dueling funding bills that would have prevented the shutdown, sentiment began to shift negatively. 2   Late-Month November Rally   Stocks then turned mixed in November as a late-month rally clawed back some losses from earlier in the month. After the U.S. federal government's shutdown ended, investors' focus shifted to the Federal Reserve as they kept an eye on big consumer-related stocks for insights into the economy, with few official monthly economic reports being issued. 3,4   December Ends Quietly   U.S. stocks regained some momentum in December but faced pressure late in the month. A fresh CPI report showed inflation cooled in November, lifting stocks across the board. The Federal Reserve cut short-term rates, but the jobs market continued to give mixed signals, which created anxiety about how the Fed will guide rates in 2026. 5,6,7   The Federal Reserve   The Federal Reserve convened two official meetings in the fourth quarter, during which officials delivered numerous speeches over a three-month period.   The Federal Open Market Committee (FOMC) cut interest rates by a quarter percentage point at its October meeting, a move widely expected. Federal Reserve Chair Jerome Powell said in his post-meeting press conference that another rate adjustment in December was “not a foregone conclusion,” due in part to the government shutdown making up-to-date economic data reports scarce, and the challenge of setting monetary policy without them. 8   However, the FOMC ultimately cut rates by another quarter percentage point at its December meeting. At his post-meeting press conference, Fed Chair Powell said it would be a higher bar for further rate adjustments. 9   Minutes from the December meeting, released on December 30, confirmed themes consistent with those presented in Powell’s December press conference. Members remain concerned about a wobbly labor market but remain focused on the Fed and big consumer-related stocks. 10   The Federal Reserve’s first meeting of 2026 is January 27-28.     What Investors May Be Talking About in January   In the month ahead, federal workers will continue to work overtime to catch up on all the economic reports delayed by the shutdown.   While they have been making steady progress, five key reports remain delayed: Retail sales, industrial production, housing starts, new home sales, and durable goods. 11   Fed officials believe they will be caught up by the end of January. Ironically, that’s when the temporary spending bill passed in November 2025, which ended the 43-day shutdown, will run out of funds. 11   By month’s end, expect attention to focus on how Congress will structure a new spending bill.   1. Finance.yahoo.com, December 31, 2025 2. CNBC.com, October 31, 2025 3. CNBC.com, November 14, 2025 4. CNBC.com, November 28, 2025 5. WSJ.com, December 10, 2025 6. WSJ.com, December 18, 2025 7. CNBC.com, December 31, 2025 8. 8. WSJ.com, October 29, 2025 9. 9. WSJ.com, December 10, 2025 10. 10. CNBC.com, December 30, 2025 11. Investopedia.com, December 12, 2025 12. WSJ.com, December 23, 2025 This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security --- ## January Is National Financial Wellness Month URL: https://www.patriotinvestment.com/blog/january-is-national-financial-wellness-month-2/ January is Financial Wellness Month, which means it’s a good time to remind people to plan and update their financial strategy.   Now is a great time to connect with your Patriot advisor to discuss your financial situation and aspirations for the future. You should also assess if your financial strategy needs any adjustments based on your lifestyle.   Defining Financial Wellness   The first thing to do is define what “financial wellness” means for you. This varies drastically from person to person. It is informed by who you are, where you are coming from, and what your experiences with money are. A person with serious financial troubles might have different expectations than someone who has enjoyed relative financial stability.   How, then, is “financial wellness” defined? First, ask yourself what you need to feel secure, financially speaking. Here are some questions to consider:   • How much should you have saved?    • How much income should you be bringing in each month?    • Where are you at with your debt?    • Would things be simpler if you carried less debt?    • How fluid is your cash flow when it comes to expenses that are not urgent (taking your family out to dinner or on a short trip) versus larger financial goals (such as buying a new kitchen appliance)?    • Finally, and perhaps most importantly, will you be able to retire at your target age?   Financial Wellness Goals   Thinking about financial wellness is often a matter of setting goals for what you can accomplish now and what you can work on to make it a part of your larger financial strategy. For now, consider taking these actions:   • Have a values-based conversation with the decision-makers in your household, meaning any tax-paying adult who contributes income and shares responsibility for the bills. This could be your spouse or any other family member. Make sure that the non-essential things you are spending money on line up with your commitments to meeting your financial needs. This is not a “stop getting lattes” conversation; it is a “Are we spending money on the things that matter?” conversation.   • Consider automating payments, especially for regular items such as student loans, credit card bills, and other installment payments.   • To establish a stable foundation going forward, create an emergency fund that covers 3–6 months of household expenses. If that seems too ambitious, build the fund a month at a time until you reach your goal.   • Make regular contributions to your retirement accounts. Take advantage of any matching contributions you might get from your employer.    • Make long-term financial goals. If you are considering buying a house, for instance, let that guide your overall financial strategy.     • Is becoming debt-free an achievable goal? It can be if you make it a priority. That said, being totally debt-free can be a difficult task for most households. Therefore, it may be better for you to focus on your other goals first and make debt freedom a target later: for example, being debt-free by retirement.   Of course, these are not hard and fast rules. As mentioned above, every individual has a specific definition of financial wellness. Some of these examples might feel like a long reach, while others you might already be practicing. The good news is that with careful practice and judicious scrutiny, many people can gain a feeling of satisfaction and even pleasure from maintaining financial wellness.   Having a financial strategy in place can mean a great deal to you in the long term and may also provide you with some comfort in the short term. Schedule a time to discuss this with your trusted Patriot financial advisor today.   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Tax Prep Tips For Filing Your 2025 Taxes URL: https://www.patriotinvestment.com/blog/tax-prep-tips-for-filing-your-2025-taxes/ Tax season is officially here—and a little preparation now can save you time, stress, and potential headaches later. Whether you meet with a tax professional or prepare your taxes yourself, proper planning helps the processes go more smoothly and may reduce the risk of costly errors. Check out the tips below and prepare to tackle this tax season with confidence.   Tax Prep Tip #1: Gather All of Your Forms   In January, you likely started to receive the forms you need to properly complete your tax return. If you are expecting a large refund, you will want to make a list so you don’t forget anything that could affect it. Once you receive your documents, review them carefully for accuracy. Contact the sender right away if you notice any discrepancies. Remember, even a simple misspelling can cause a flag on your tax return. Inspect all your documents carefully.   Some of the forms you will need to look out for include the following:   • W-2s from your job   • SSA-1099 for Social Security benefits   • 1099s for additional income, interest, gains and losses   • 1095-A for government marketplace health coverage   • 1098s for reporting interest and tuition payments   • W-2Gs for any gambling winnings   • Schedule K-1s for company ownership   Tax Prep Tip #2: Round Up Your Receipts   If you have your own business or plan to itemize your deductions, you will need to record expenses so that you can take advantage of any available write-offs. Gather all the receipts for business expenses, medical expenses, and other expenses that can be listed on your Schedule A or Schedule C. Receipts can be physical receipts or bank and credit card statements that show payments for these items. Once you’ve gathered them, organize them by type so that they are easy to find when you begin filing.   Tax Prep Tip #3: Acquire Records of All Charitable Contributions   Throughout the year, you may have made donations to tax-exempt organizations. These donations can provide you with charitable contribution write-offs. Keep in mind that these deductions generally apply only if you itemize rather than take the standard deduction. Most organizations, from churches to fundraisers, can provide a record of your tax-deductible contributions.   Tax Prep Tip #4: Create a List of All Personal Information   While you likely know your Social Security number by heart, you will want to jot down the Social Security numbers of any dependents you wish to claim. This way, they are easy to access, and you can be sure they’re accurate. Also, make a list of addresses for any properties you own, as well as the dates on which they were bought or sold.   Tax Prep Tip #5: Get a Copy of Last Year’s Tax Return   If you are using the same tax preparer as the previous year, they should have a copy of your tax return. If not, find your old copy and have it ready with your other tax items. Being able to reference your previous return can help you see what you filed last year, so you don’t overlook something this year.   Tax Prep Tip #6: Determine How You Will Spend Your Refund    If you expect to get a refund this year, you might want to take some time to consider what you plan to do with your return once you receive it. You have the option to apply your payment toward your tax bill next year if you believe you will owe. This can be a good idea for those who pay estimated taxes throughout the year, as it can often put a chunk toward your first installment.   Alternatively, you can choose to send the money directly to a checking or savings account or contribute it to an IRA, health savings account, or education account. If you plan to split the funds between accounts, you will need to complete Form 8888.   Don’t let tax preparation leave you feeling overwhelmed. Enjoy less stress and a smoother process by preparing everything you need for filing this tax season—and by leaning on the right support when needed.   Not sure where to start or missing a document? Your Patriot Advisor can help you obtain copies of tax forms and provide referrals to qualified tax professionals. Don’t hesitate to reach out for guidance—having the right support can make all the difference during tax season.   This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. --- ## How Often Should You Update Your Estate Strategy? URL: https://www.patriotinvestment.com/blog/estatestrategy/ Once an estate strategy is in place, it should only require periodic reviews to check that it still reflects your wishes. However, life events such as marriage, divorce, births, deaths, relocations, health changes, business sales, and changes in tax law may prompt you to reconsider part of your overall strategy.   The world of estate strategies is changing, as covered in the Trust & Will 2025 Estate Planning Report. Did you know:   • While 83% of Americans acknowledge the importance of their estate, only 31% have established a will. 1   • Almost one in four Millennials and Gen Zers prefer trusted friends or professionals over family members, selecting them as executors and guardians. 1   • Financial anxiety, as 49% of Americans are more worried about their economic future than they were a year ago. 1   • Inflation, with 78% of Americans reporting that it has made pursuing their life goals more difficult. 1   These statistics underscore the need for everyone, regardless of their economic level, to maintain an estate strategy that reflects their current needs.   Here are some general guidelines, although everyone has unique financial circumstances. You might want to update your strategy in case of:   • Marriage or divorce within your family or heirs   • Births, adoptions, and deaths   • Any relocation, especially if you're contemplating a move to another state, as laws might have subtle differences   Here are some other reasons to update your estate strategy:   • You're experiencing a health change   • You are considering the sale of a business and want to update how the assets will be handled in your estate strategy   • Changes in federal tax law   • Changes in state tax law, including inheritance tax law   • You have decided to change your beneficiaries   If it’s been some time since you reviewed your estate strategy, consider whether it still anticipates potential challenges, captures new opportunities, and distributes your assets in line with your current intentions. Many people also choose to hold a family meeting to walk loved ones through the structure of their plan and the reasoning behind key decisions.   Estates can be complex, and while online tools are a convenient way to begin organizing your plans, they may not address every nuance of your situation. Partnering with an experienced estate planning professional can provide deeper insight, uncover considerations you may not have anticipated, and help ensure your strategy is thoughtfully structured, legally sound, and aligned with your long-term goals.   If you have questions or would like a second look, contact your Patriot advisor. We can help ensure your financial plan aligns with your estate strategy and, if appropriate, provide a referral to a trusted estate planning professional to help you take the next step.   1. https://trustandwill.com/learn/estate-planning-report-2025   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Do You Have These 5 Financial Basics Down? URL: https://www.patriotinvestment.com/blog/do-you-have-these-5-financial-basics-down/ Working with a trusted financial professional is important when it comes to strategizing and preparing to meet your financial goals. However, as most of us handle money daily, it’s important to have an in-depth understanding of the fundamentals of financial literacy. Below we’ve identified five financial basics everyone should know. Understanding these important concepts can serve as a basis for your financial standings.   Basics #1: Debt & Credit Scores   Understanding the ways in which credit or debt can work with or against you should serve as the foundation of your financial knowledge. First and foremost, it's not wise to avoid credit or debt altogether out of fear or intimidation. Instead, it’s important to have a firm grasp on your financial standings and a plan for tackling debt responsibly.   Debt   When used correctly, debt can be useful. When misused, it can spiral out of control fast. Missed payments can accrue interest or penalties and may impact your credit score in a negative way. Debt that is managed responsibly can help you reach important goals like buying a car, purchasing a home, going to college, starting a business and more.    Credit Score    Your credit score is one of the factors lenders use to judge your trustworthiness and qualification for mortgages, auto loans and other lending opportunities. Landlords and employers may also check your credit before renting to you or offering you a job. Your credit score is dependent on a few factors including previous credit history, current debts, history of payments and more.   Basics #2: Interest   There are two sides to interest that can make it a tricky concept to grasp - interest accrued on debt and interest accrued on savings.   When you take on debt (like credit card debt, an auto loan or mortgage), you’ll be responsible for paying back both the principal amount and the interest accrued on the loan. The interest is how a lender makes money on the loan and provides the borrower with an incentive to pay the loan back in full and on time.   When you have a savings account that accrues interest, the interest earned gets added to the principal. Then, interest is earned on the new, larger principal, and the cycle repeats. This is called compounding interest, and it can be an integral part in growing your retirement savings - the longer the interest has to compound, the greater the savings will grow.   Basics #3: The Value of Time   As a rule of thumb, it’s never too early to start saving - for retirement, homebuying, a child’s education or whatever could be coming down the line. The earlier you start saving, the more you’ll be able to tuck away over time - especially with the power of compounding interest. This leverages the value of time to your advantage.   Basics #4: Inflation   Inflation has the potential to eat away the purchasing power of your money. That means, with inflation, the dollar you earn today may not be worth a dollar in the future. Below are two important concepts to remember regarding inflation.   Cash in a Mattress   Keeping all your cash under a mattress is not only unsafe, but it also literally costs you money. Assuming the annual rate of inflation is a hypothetical 3%, every dollar you keep under your mattress and not earning interest would shrink in value to $.97 next year.   Rate of Return   Because inflation erodes the purchasing power of your money, any returns you earn on your accounts may not be the “real” rate of return. If your account earned a hypothetical 6% rate of return over the last year, but inflation was 1.5%, your real rate of return was 4.5%.   Basics #5: Identity Theft & Safety   Especially as the world shifts to doing everything virtually, identity theft remains one of the biggest threats to financial and personal security. A cracked password or misplaced Social Security number can have big consequences on your current and future finances.   The common wisdom is to use a unique password for each site or service you use. A password manager can make this easier by generating and storing strong passwords automatically.   In addition to using strong, unique passwords, it’s also important to enable two-factor authentication (2FA) wherever it’s available. 2FA adds an extra layer of protection by requiring a second form of verification—such as a temporary code sent to your phone or generated by an authentication app—before granting access to your account. Even if a password is compromised, 2FA can significantly reduce the risk of unauthorized access and help safeguard your financial and personal information.   Understanding the fundamentals of financial literacy—from managing debt and protecting your credit score to harnessing the power of compound interest, accounting for inflation, and safeguarding your personal information—can provide a strong foundation for long-term financial success. Each of these basics plays a critical role in helping you make informed decisions and move confidently toward your goals.   While building your knowledge is an important first step, putting these principles into action with a thoughtful strategy is just as essential. To learn how these financial basics apply to your unique situation, contact your Patriot advisor for personalized guidance and a plan designed to help you stay on track toward your goals. --- ## 5 Steps For Handing An Unexpected Tax Bill URL: https://www.patriotinvestment.com/blog/5-steps-for-handing-an-unexpected-tax-bill/ Have you just completed your taxes and discovered that you owe way more than you expected? Don't panic. There are several ways to bring that hefty tax bill down.   Step 1: Check for Errors   First, go through your return and make sure that you haven't made a mistake. If you used tax software, note that it checks the math based on what you entered, but it doesn't know if you entered the right numbers. Common errors include entering a wrong number, adding an extra zero, or entering the same income in two different places.   When looking for errors, the best place to start is a line-by-line check, comparing this year's return to last year's return. Of course, some numbers will be slightly different, but the differences should match your raise, reduction in hours, or other life changes. If anything doesn't match up, take a closer look.   Step 2: Max Out Your Retirement Accounts   If you have money in the bank and don't want to give it to the IRS, upping your retirement savings could be a solution. Don't forget that you can still open and contribute to an IRA account up until your filing deadline. The deduction you receive will reduce what you owe. If you have already filed your tax return without maxing out your retirement accounts, don't worry; you can still amend your return if you make your contributions in time.   Step 3: Check for Other Deductions and Credits   Go back and look for any deductions and credits you might have missed. These could include business expenses, energy efficiency upgrades, child credits, and more.   If you used tax software, you might have found that some questions were confusing or buried, so you might have accidentally skipped over a credit. The best thing to do is to research whether there are credits for any large expenses you had throughout the year that might come with tax incentives.   Step 4: File Your Tax Return Anyway   Don't neglect filing your tax return because you can't pay. There are separate and larger penalties for failing to file a return. These include automatic monetary penalties for late filing, as well as the possibility that the IRS thinks that you are trying to evade your taxes because you can't pay what you owe.   Step 5: Request a Payment Plan   If you can't pay your tax bill in full, pay what you can. Late payment penalties are based on your outstanding balance, not your original tax bill. Just like paying off a loan, the more and earlier you pay, the less you pay in interest and penalties.    If all else fails, you can request an installment agreement from the IRS. This is a payment plan whereby you make monthly payments and incur slightly lower penalties than those incurred if you don't pay. The other advantage is that if you make your payments on time, the IRS won't keep sending you threatening letters or file a tax lien.   Concerned about how this year’s tax bill fits into your bigger financial picture? Your financial advisor can work with you and your tax professional to help ensure your investment, retirement, and savings strategies stay aligned with your broader financial goals while being as tax efficient as possible. Reach out to your Patriot advisor today to start the conversation.   ###### This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Why You Should Plan Taxes 2 Years At A Time URL: https://www.patriotinvestment.com/blog/why-you-should-plan-taxes-2-years-at-a-time/ Let’s admit it: planning for taxes isn’t exactly enjoyable.  There are probably plenty of things you’d rather be doing. However, thoughtful tax planning plays a critical role in your overall financial health. Starting early can help you save money, reduce errors, and minimize stress when tax season rolls around.   So why should you consider planning your taxes two years at a time?   The Benefits of Planning Ahead   When it comes to taxes, it’s easy to procrastinate. But taking a forward-looking, two-year approach can make a meaningful difference. By planning across multiple years, you gain the opportunity to implement strategies that help maximize tax benefits and reduce your overall liability.   Here’s how:   Early Organization Means Fewer Errors   Mistakes on your tax return can lead to delays, penalties, or missed opportunities. Planning ahead gives you time to gather documents, verify details, and file with confidence.   Eliminate Deadline Stress   Getting organized well in advance helps you avoid the last-minute scramble. Instead of rushing to meet deadlines, you can approach tax season calmly and in control.   Capture All Eligible Deductions and Credits   Proactive planning ensures you don’t leave money on the table. By reviewing your current and projected income, you can better position yourself to take advantage of all available deductions and credits. Tools like the IRS Tax Withholding Estimator can also help you fine-tune your paycheck withholdings as part of your strategy.   Stay Ahead of Tax Law Changes   Tax laws evolve frequently. A multi-year approach gives you time to understand upcoming changes and adjust your strategy before they take effect.   Develop a Payment Strategy   If you anticipate owing taxes, early planning allows you to prepare. Whether you’re self-employed or earning investment income, you can estimate quarterly payments and incorporate them into your cash flow.   Be Strategic with Investments   A longer planning horizon allows you to make more tax-efficient investment decisions. You can evaluate capital gains, time the sale of assets, and estimate tax implications before making major financial moves.   Prepare for Life Transitions   Major life events—like marriage, divorce, retirement, or relocating—can significantly impact your tax situation. Planning ahead helps you adapt and avoid surprises.   Optimize Retirement Contributions   Tax planning and retirement planning go hand in hand. A two-year strategy allows you to align contributions with your broader financial goals while maximizing tax advantages.   Time Your Charitable Giving   Charitable contributions can be a powerful tax strategy when planned in advance. Timing your donations thoughtfully can help reduce your taxable income.   Find the Right Professional Support   Planning early gives you the flexibility to work with a trusted professional who can help coordinate your tax and financial strategy effectively.   A Smarter Way to Approach Tax Planning   Taking a two-year approach to tax planning allows you to be more strategic, proactive, and confident in your financial decisions. Instead of reacting to deadlines, you’re creating a plan that supports both your short-term needs and long-term goals.   Tax planning shouldn’t be a once-a-year task—it should be an ongoing, integrated part of your overall financial strategy. By looking ahead and coordinating your tax decisions with your investments, retirement planning, and life goals, you can uncover opportunities that may otherwise go unnoticed.   If you’d like help building a proactive, tax-efficient strategy tailored to your situation, now is a great time to start. Reach out today to schedule a conversation with your Patriot Advisor and take the first step toward a more confident, well-planned financial future. --- ## Q1 2026 Market Insights URL: https://www.patriotinvestment.com/blog/q1-2026-market-insights/ U.S. Markets   Stocks fell in the first quarter amid concerns that artificial intelligence (AI) could disrupt certain industries along with geopolitical issues that unsettled investors.   The Dow Jones Industrial Average lost 3.58%, while the Standard & Poor’s 500 Index fell 4.63% and the Nasdaq Composite declined 7.11%. 1,2   A Choppy January   Stocks trended higher in January as upbeat economic data offset geopolitical tensions. Investors responded positively to December’s inflation report, which was followed by a solid retail sales report. However, evolving geopolitical situations and mixed results from money center banks placed some pressure on stock prices. 3,4   The S&P 500 traded above the 7,000 level for the first time during the month. 5   February’s Focus on AI   Stock prices struggled in February amid investor concerns that AI could disrupt a wide swath of industries. Traders worried that AI might fundamentally reshape certain business models, prompting a reassessment of valuations in affected sectors.⁶   As the month came to a close, attention shifted once again to geopolitical events. While the Dow posted a modest gain, tech-led declines weighed the S&P 500 and Nasdaq. 7   A Volatile March Finishes Strong   Volatility increased in March as investors reacted to daily developments in the Middle East. Despite the uncertainty, stocks ended the month on a strong note. A powerful rally on the final day helped recover some quarterly losses, as fresh news raised hopes for a potential resolution to the conflict 8   The Federal Reserve   The Federal Open Market Committee (FOMC) voted 11-1 to keep interest rates steady at its March 18 meeting, maintaining the federal funds rate in a target range of 3.50% to 3.75%.   This marks the second consecutive meeting in which the FOMC held rates steady. 10   In late March, Fed Chair Powell said inflation expectations "appear to be well anchored beyond the short term," despite concerns about the potential inflationary impact of Middle East tensions. 11   The Federal Reserve’s next meeting is scheduled for April 28–29.   What Investors May Be Talking About in April   Looking ahead, investors could experience continued volatility as markets respond to ongoing geopolitical developments and new economic data.   For perspective, between 1980 and 2025—approximately 2,400 weeks—there were only 40 weeks in which the S&P 500 declined 5% or more. 9   During the remaining weeks, the S&P either held steady, gained ground, or declined less than 5%. Past performance is no guarantee of future results. 9   Keep in mind that no one can consistently predict market downturns, and it’s nearly impossible to distinguish between a short-term dip and a prolonged correction while it is happening.   Pullbacks are a natural and unavoidable part of investing—even though they are often uncomfortable for investors.   If recent market volatility has you thinking about your financial strategy, now is a great time to revisit your plan. Contact your Patriot advisor today to review your financial plan and ensure it remains aligned with your long-term goals.   1. WSJ.com, March 31, 2026 2. TMX.com, March 31, 2026 3. CNBC.com, January 13, 2026 4. CNBC.com, January 14, 2026 5. CNBC.com, January 28, 2026 6. CNBC.com, February 12, 2026 7. WSJ.com, February 27, 2026 8. WSJ.com, March 31, 2026 9. InstituteOfBusinessFinance.com, February 2026. For this study, a week was measured as a single calendar week. 10. WSJ.com, March 18, 2026 11.  CNBC.com, March 30, 2026 This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## First Year Of Retirement: What To Expect URL: https://www.patriotinvestment.com/blog/first-year-of-retirement-what-to-expect/ Some retirees describe the first few months after retirement as a “honeymoon phase,” during which they focus on travel, projects, and catching up on rest. After the honeymoon glow wears off, many begin asking deeper questions about how they want to spend their time and energy. 1   It's not only normal to ask those questions, but necessary. Our careers give us more than income. They provide structure, social interaction, and a sense of purpose. When that structure is no longer part of your daily routine, it can be difficult to fill the gap.   Over time, most retirees begin building new routines around things they find meaningful. That might mean volunteering, mentoring, traveling, learning something new, or simply spending more time with family. Research shows that adults age 65 and older spend more hours each day on leisure and personal activities than working-age adults. That’s not just “free time.” It’s an opportunity. 2   Income Feels Different in Retirement   One of the biggest adjustments in the first year is how income arrives. For decades, income likely showed up as a paycheck.   Many retirees don’t expect how spending feels emotionally in retirement. Even when income sources are stable, transferring money from savings can feel more eventful than it did during working years. After decades of being encouraged to save, the shift toward spending can take practice.   It can help to separate essential expenses from flexible ones. When you know your core needs are covered, the rest becomes a series of intentional choices rather than a source of worry. Over time, confidence often grows as retirees see that their financial approach is working as intended.   The good news? The first year gives you space to observe and adjust. Spending patterns often settle once retirees see what everyday life actually looks like.   It’s not about getting everything perfect immediately. It’s about building confidence over time.   What Do You Do With 40 Extra Hours?   Social connections can shift, too. Work friendships naturally evolve, which makes room for new communities through volunteering, clubs, travel groups, continuing education, or faith organizations.   Volunteering is especially common in retirement. In fact, more than one-quarter of adults age 65 and older report volunteering in a given year. For many retirees, it’s not just about giving back. It provides structure, social connection, and a sense of purpose. 3   Travel is another goal many retirees revisit. Some take multigenerational trips. Others explore slower travel or finally visit places they’ve postponed for years.   Sometimes, retirement isn’t about big ideas at all. It’s about simple things. Reading more. Gardening. Taking a class. Returning to an old hobby.   Another common experience in the first year is something few people talk about: decision fatigue.   When you’re working, much of your day is mapped out for you. In retirement, that structure disappears. Suddenly, it’s up to you to decide what today looks like. And tomorrow. And next month.   That freedom can feel overwhelming at first.   Some retirees find it helps to build a routine into the week. Maybe that’s volunteering every Tuesday. Meeting friends for lunch on Thursdays. Taking a class that gets you out of the house once a week or setting aside certain mornings for exercise or hobbies.   It's not about maintaining a rigid schedule, though; it's about creating something to look forward to. That excitement for the next day is what helps make retirement feel grounded.   The Practical Side of Year One   Along with emotional and lifestyle changes, the first year is a practical reset. Many retirees use this time to:   • Review estate documents   • Confirm beneficiary designations   • Revisit healthcare directives   • Evaluate insurance coverage   • Understand the pros and cons of various income sources   Financial professionals can help clients think through income coordination. Tax-specific questions should always be discussed with a tax, legal, or accounting professional, and legal updates should be addressed with an attorney.   Healthcare coverage is another area to review, especially when making decisions about extended care.   Giving Yourself Permission to Enjoy It   After years of saving and preparing, some retirees feel hesitant to spend. That’s understandable. Shifting from a saver’s mindset to spending intentionally can take time.   But retirement isn’t just about managing money. It’s about using it to support the life you want to live.   Life expectancy data suggests that many retirees can expect to live for decades in this next chapter, which means you'll need to take time to think carefully about your financial decisions. 4   If you’re in your first year or approaching it, consider asking yourself a few simple questions:   • What am I ready to let go of?   • Where do I want to feel useful?   • Where do I want to feel rested?   You don’t have to answer them all at once. Retirement unfolds in stages, and as spending and routines settle, uncertainty often fades.   The first year of retirement isn’t a test. It’s a transition. And it’s okay to take it one step at a time. As you navigate the transition into retirement, having a clear, adaptable financial plan can make all the difference. If you have questions about your income strategy, spending approach, or long-term goals, now is a good time to revisit your financial plan. Reach out to your Patriot Advisor to review your current strategy, ensure your plan continues to reflect your changing needs and priorities, and make any adjustments needed to support this next chapter with confidence.   1. AARP, May 28, 2025. 2. U.S. Bureau of Labor Statistics, 2024 Annual Averages 3. U.S. Bureau of Labor Statistics, 2024 Volunteering Data 4. OECD, N.D.   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Understanding 530A “Trump Accounts”: A New Savings Opportunity for Families URL: https://www.patriotinvestment.com/blog/understanding-530a-trump-accounts-a-new-savings-opportunity-for-families/ Beginning in 2026, families across the United States may gain access to a new financial planning tool designed to support children’s long-term financial futures: the 530A account, commonly referred to as a “Trump Account.” While much of the public attention has focused on the proposed $1,000 government contribution for newborns, the legislation includes broader opportunities that may benefit many families with children under age 18.¹ ˒ ²   What Is a 530A Account?   The 530A account was created under the  One Big Beautiful Bill Act  and is intended to encourage long-term saving and investing for children. Although the headline feature is the federal government’s proposed $1,000 seed contribution for eligible newborns, the accounts themselves are expected to be available to all qualifying American children under age 18.¹ ˒ ²   Under the pilot program, children born between January 1, 2025, and December 31, 2028, may receive the one-time $1,000 federal contribution.¹ ˒ ²   To qualify for a 530A account, the child must:   • Have a valid Social Security number    • Be under age 18 as of December 31 of the year the account is established    • Maintain only one 530A account per child    How to Open a 530A Account   A parent, legal guardian, grandparent, or adult sibling may establish a 530A account by submitting IRS Form 4547, which serves as the official election to create the account.¹ ˒ ²   Availability and Contribution Limits   530A accounts are expected to become available in 2026, with contributions beginning after July 4, 2026. Annual contributions are capped at $5,000 per child. This limit includes contributions from family members, as well as up to $2,500 from employers or other organizations.¹ ˒ ²   Investment and Distribution Rules   Investments within the account must meet guidelines established by the U.S. Treasury Department. The accounts are also expected to follow required minimum distribution (RMD) rules similar to those that apply to traditional IRAs, meaning distributions generally must begin at age 73.   Withdrawals are generally taxed as ordinary income. In addition, distributions taken before age 59½ may be subject to a 10% federal income tax penalty unless an exception applies.¹ ˒ ²   A Potential Tool for Long-Term Financial Planning   Beyond the initial government contribution, 530A accounts may provide families with an opportunity to teach children the fundamentals of saving, investing, and long-term financial planning. The ability to receive contributions from employers, charitable organizations, and other third parties could further enhance the account’s value over time.¹ ˒ ²   Can a 530A Account Be Converted to a Roth IRA?   Current guidance indicates that assets from a 530A account may be eligible for rollover into a Roth IRA beginning in the year the beneficiary turns 18. If implemented as proposed, this could allow the funds to continue growing tax-free for decades.   Unlike traditional IRAs, Roth IRA owners are generally not required to take minimum annual distributions during their lifetime. Qualified Roth IRA withdrawals are tax-free if the account satisfies the five-year holding requirement and the owner is at least age 59½. Certain exceptions may also permit tax-free and penalty-free withdrawals under specific circumstances, including after the account owner’s death.   While 530A “Trump Accounts” may not be appropriate for every family, they represent a new savings option worth evaluating as part of a broader financial strategy. Families interested in long-term, tax-advantaged savings for children may benefit from exploring how these accounts could fit into their future planning goals. If you would like to learn more about how a 530A account could support your family’s long-term financial goals, contact your Patriot advisor today. We can help you evaluate whether this new savings vehicle aligns with your overall financial strategy and identify opportunities to maximize its potential benefits.   1.  https://www.irs.gov/trumpaccounts   2.  https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A&num=0&edition=prelim   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## The Power Of Saving Early URL: https://www.patriotinvestment.com/blog/the-power-of-saving-early/ In 1964, The Rolling Stones released the hit single “Time Is on My Side.” Who knew they were talking about personal finance?   For The Rolling Stones, the song was about confidence and patience in love. For investors, it reflects something equally powerful: the confidence and patience required to pursue long-term financial goals like retirement.   As a young investor, you have one tremendous advantage on your side: time.   The earlier you begin saving and investing, the longer your money has to grow. Over time, investment earnings can begin generating earnings of their own—a process known as compounding. The result can be surprisingly powerful.   The Power of Compounding   Many people underestimate the impact of compound growth, which is why it’s worth illustrating with a simple example.   Imagine you start with $1,000 in an investment account earning a hypothetical 5% annual return. If you contribute an additional $1,000 each year, after 30 years your account could grow to approximately $69,671. Of that amount, only $30,000 came from your own contributions; more than $16,000 was generated through compound growth alone.¹   What makes compounding so powerful is that the growth continues building on itself year after year—even if contributions eventually stop.   The Power of Starting Early: Let Time Do the Heavy Lifting   When it comes to building wealth, most people focus on two variables:   • How much they save    • The rate of return they earn    Both matter. But there is a third factor that is often even more important: time.   Compound growth disproportionately rewards investors who start early. In fact, someone who begins investing sooner can potentially accumulate more wealth than someone who contributes far more money later in life.   Consider these two hypothetical investors:¹   The Early Starter   • Invests $10,000 per year for 10 years    • Stops contributing entirely after that    • Total contributions: $100,000    • Ending balance at age 62: $850,608    The Late Starter   • Waits 10 years before beginning to invest    • Contributes $10,000 per year for 30 years    • Total contributions: $300,000    • Ending balance at age 62: $888,298    The comparison highlights one of the most important lessons in investing: time can be more valuable than the amount invested.   The Early Starter contributed only one-third as much money as the Late Starter yet ended with nearly the same account balance. Why? Because the Early Starter gave compounding an additional decade to work.   Meanwhile, the Late Starter spent decades trying to catch up. Even after contributing three times more capital, the final outcome was only modestly higher.   The lesson is clear: in the world of investing, a smaller amount of money invested early can often outperform a larger amount invested later.   Time is not just helpful when investing—it may be your greatest financial asset.   1  This is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. --- ## When To Take Social Security: Understanding The Tradeoffs URL: https://www.patriotinvestment.com/blog/when-to-take-social-security-understanding-the-tradeoffs/ Many retirees understand that delaying Social Security benefits can result in a larger monthly payment. While that is generally true, there is an important tradeoff to consider: the longer you wait to begin receiving benefits, the fewer years you may have to collect them. Ultimately, the value of delaying benefits depends on factors such as your life expectancy, retirement income needs, tax situation, and overall financial strategy.   Because there is no one-size-fits-all answer, it is important to evaluate your options carefully and make a decision that aligns with your unique retirement goals.   Receiving Benefits Early   Some retirees believe it makes sense to begin collecting Social Security benefits as soon as they become eligible. After all, money received today can be used immediately, while future benefits depend on circumstances that may change over time.   Individuals can begin claiming Social Security benefits as early as age 62. However, claiming benefits before full retirement age results in a permanently reduced monthly benefit. Despite the reduction, some retirees choose to claim early and use the income to support their lifestyle, preserve other retirement assets, or invest the funds in hopes of generating additional growth.   For those with shorter life expectancies, immediate income needs, or concerns about market volatility, claiming benefits earlier may be an appropriate strategy.   Delaying Benefits   For retirees who can afford to wait, delaying Social Security benefits can significantly increase future monthly payments. Benefits grow each year they are delayed beyond full retirement age, up to age 70.   Once a person reaches age 70, delayed retirement credits stop accruing, meaning there is no additional benefit to waiting longer.   For individuals born in 1960 or later, claiming benefits at age 62 instead of full retirement age can reduce monthly benefits by approximately 30%. In practical terms, a retiree entitled to $1,000 per month at full retirement age would receive about $700 per month if benefits begin at age 62.¹ Conversely, delaying benefits can provide substantially higher monthly income later in retirement.   For retirees concerned about longevity, maximizing guaranteed lifetime income through delayed benefits can be an attractive option.   Important Considerations   As you prepare for retirement, several factors should influence your Social Security claiming strategy.   First, consider when you will be eligible to receive benefits and how you will fund your retirement expenses if you choose to delay claiming. Having sufficient savings, pension income, or other resources can make waiting more practical.   Another important consideration is taxation. Traditional retirement planning often assumed that individuals would stop working before claiming Social Security, resulting in lower taxable income during retirement. Today, however, many retirees continue working on a part-time or full-time basis.   As a result, employment income, Social Security benefits, and withdrawals from retirement accounts can combine to create a higher tax burden than expected. In some cases, it may make sense to rely on earned income or retirement savings first while delaying Social Security benefits to maximize future payments and potentially manage taxes more effectively.   Others may prefer to claim benefits earlier and preserve their personal savings for later years. The right strategy depends on your income sources, tax situation, health, and long-term financial objectives.   There Is No Universal Answer   When it comes to Social Security, there is no default strategy that works for everyone. Each retiree must evaluate their personal circumstances and determine the approach that best supports their retirement goals.   By taking the time to understand the available options and incorporating Social Security into a comprehensive retirement plan, retirees can make more informed decisions. Even among individuals with similar ages, incomes, and retirement dates, thoughtful planning can lead to significantly different outcomes.   Before making a decision, consider consulting with your Patriot Advisor who can help evaluate how Social Security fits into your broader financial plan.   1. https://www.ssa.gov/planners/retire/agereduction.html   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## How Is Inflation Calculated? URL: https://www.patriotinvestment.com/blog/how-is-inflation-calculated/ Inflation is a fundamental economic concept that affects the everyday lives of people around the world. It influences everything from the cost of groceries and housing to wages, savings, and investments. Understanding how inflation is calculated can help consumers make informed financial decisions and better understand changes in the economy.   What Is Inflation?   Inflation refers to the rate at which the prices of goods and services increase over time, reducing the purchasing power of money. In simple terms, when inflation occurs, the same amount of money buys fewer goods and services than it did before.   According to the International Monetary Fund (IMF), inflation measures how much more expensive a set of goods and services has become over a specific period, typically one year.¹   Measuring Inflation with the Consumer Price Index (CPI)   One of the most widely used measures of inflation is the Consumer Price Index (CPI). The CPI tracks changes in the prices paid by consumers for a representative basket of goods and services.²   This basket includes common household expenses such as:   • Food and beverages   • Housing and utilities   • Transportation   • Healthcare   • Clothing   • Education   • Recreation and entertainment   By monitoring how the cost of this basket changes over time, economists can estimate the overall rate of inflation.²   How Inflation Is Calculated   Step 1: Select a Basket of Goods and Services   The process begins by creating a representative basket of goods and services that reflects typical consumer spending patterns. The composition and weighting of the basket are periodically updated to reflect changes in consumer behavior and purchasing habits.² ³   Step 2: Collect Price Data   Next, price data is gathered for the items included in the basket. Government agencies, such as the U.S. Bureau of Labor Statistics (BLS), collect prices from a wide range of sources, including retail stores, service providers, and online marketplaces.² ⁴   These prices are used to estimate how the overall cost of the basket changes over time.²   Step 3: Calculate the Consumer Price Index   A reference period, known as the base period, is assigned a CPI value of 100. The CPI for any later period is calculated using the following formula:²   CPI = (Cost of Basket in Current Period ÷ Cost of Basket in Base Period) × 100   This calculation shows how much the cost of the basket has changed relative to the base period.   Step 4: Calculate the Inflation Rate   Once CPI values are available for two periods, the inflation rate can be calculated using the following formula:   Inflation Rate = [(Current CPI − Previous CPI) ÷ Previous CPI] × 100   This formula measures the percentage change in prices between two periods.²   Example: Calculating Inflation   Consider the following example:   • Cost of basket in Year 1: $100   • Cost of basket in Year 2: $110   Calculate the CPI   CPI in Year 2 = ($110 ÷ $100) × 100 = 110   Calculate the Inflation Rate   Assuming Year 1 has a CPI of 100:   Inflation Rate = [(110 − 100) ÷ 100] × 100   Inflation Rate = 10%   This means that the overall price level increased by 10% between Year 1 and Year 2.   Why Inflation Matters   Inflation affects consumers, businesses, investors, and policymakers. Moderate inflation is a normal part of a growing economy, but high inflation can reduce purchasing power and increase the cost of living.¹   By tracking inflation through measures such as the Consumer Price Index, economists and governments can better understand economic trends and make informed policy decisions.² ⁴   The Bottom Line   Inflation measures the rate at which prices rise over time. While several indicators are used to monitor inflation, the Consumer Price Index remains one of the most widely recognized and frequently cited measures.²   Understanding how CPI and inflation are calculated provides valuable insight into changes in the economy and helps explain why the prices of everyday goods and services rise over time.   While inflation can erode purchasing power over time, maintaining an appropriate asset allocation can help mitigate its effects. A well-diversified portfolio that aligns with your goals, time horizon, and risk tolerance may be better positioned to weather periods of rising prices and changing market conditions. If you have questions about how inflation may affect your financial goals, contact your Patriot advisor to review your financial plan. Regular portfolio reviews can help ensure your investment strategy remains aligned with your long-term objectives and current economic conditions. 1. https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation   2. https://www.bls.gov/cpi/questions-and-answers.htm   3. https://www.investopedia.com/terms/b/basket_of_goods.asp   4. https://www.brookings.edu/articles/how-does-the-government-measure-inflation/   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Retirement Planning Considerations For Couples With An Age Gap URL: https://www.patriotinvestment.com/blog/retirement-planning-considerations-for-couples-with-an-age-gap/ Decisions surrounding retirement are rarely simple. This further becomes the case when there is an age gap between couples, resulting in differences in retirement dates, life expectancy, health and more.    For couples of varying ages, traditional retirement advice may not always be fully applicable. Their retirement savings will need to support two individuals potentially navigating different life and career stages. If there is an age gap between you and your spouse, here are a few considerations to keep in mind.   Consideration #1: Your Retirement Date   One of the most critical factors to consider is the start of your retirement. If one spouse continues working while the other is retired, how will the dynamic shift? Alternatively, you may choose to retire at the same time.    Staggering retirement dates can also be beneficial. For example, if the younger partner continues to work, they may maintain employer-sponsored health coverage until both spouses are eligible for Medicare. Additionally, their earnings can help reduce withdrawals from the portfolio, potentially extending the life of retirement savings.   It’s also possible that one spouse retires early so the couple can transition into retirement together. Or perhaps the older spouse enjoys their work and chooses to continue working for several additional years. Ultimately, the decision depends on the couple’s preferences and financial circumstances. Regardless of the approach, it is important to recognize that the timing of retirement can significantly impact overall financial planning.   Consideration #2: Social Security   Another key decision is when to begin collecting Social Security benefits. Each spouse’s claiming age independently affects their benefit amount. If the younger spouse claims benefits as early as age 62, their monthly benefit will be permanently reduced compared to waiting until full retirement age, which can significantly reduce lifetime income.   If the older spouse makes more than their partner, it may make more sense for them to delay taking Social Security benefits for a few years. By waiting, the older spouse’s benefit will grow eight percent each year past their Full Retirement Age (FRA) up to age 70. 2   Couples often coordinate Social Security claiming strategies, as the timing of each spouse’s benefit can impact overall household retirement income.   Consideration #3: Your Investments   As retirement approaches, investment portfolios often shift from a more aggressive, growth-oriented allocation to a more conservative, income- and preservation-focused strategy. If there is a significant age gap between spouses, it may make sense to maintain a slightly more growth-oriented allocation than typical for same-age couples. This can help support long-term growth potential, particularly for the younger spouse in later retirement years.   While this approach may increase exposure to market volatility, the younger spouse’s continued earnings (if still working) may help offset short-term fluctuations through ongoing contributions   Consideration #4: Health Costs and Life Insurance   There is a key advantage to being in a partnership with an age-gap: the younger spouse will likely be able to care for the older spouse if needed. On the other hand, the younger spouse’s long-term care needs are then put into question.    Purchasing long-term care insurance that primarily covers the younger spouse may be a useful planning strategy.    No matter your circumstances, there are retirement strategies designed to support the unique needs of couples with age differences. With thoughtful planning and a clear understanding of your goals, you can create a retirement strategy that helps provide confidence for both spouses throughout the years ahead. If you and your spouse have an age gap, now may be the right time to review how your retirement timeline, Social Security decisions, investments, and long-term care considerations fit together. Contact your Patriot advisor today to review your financial plan and ensure your strategy is aligned with your vision for retirement.   1. https://www.ssa.gov/OACT/quickcalc/spouse.html   1. https://www.ssa.gov/benefits/retirement/planner/delayret.html   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Q2 2026 Market Insights URL: https://www.patriotinvestment.com/blog/q2-2026-market-insights/ U.S. Markets U.S. stocks posted strong gains during the second quarter, fueled by encouraging economic data, ongoing diplomatic efforts in the Middle East, and solid first-quarter corporate earnings. The Standard & Poor's 500 Index advanced 14.87%, while the Nasdaq Composite gained 21.41%. The Dow Jones Industrial Average rose 12.90%. April Set the Tone Stocks surged in April, posting their strongest monthly performance since 2021 as investors welcomed easing geopolitical tensions in the Middle East and renewed efforts to reopen the Strait of Hormuz. The Nasdaq's 13-day winning streak—its longest since 1992—highlighted the market's strong momentum.³ Large-cap technology stocks played an outsized role in the market's performance. The S&P 500 Information Technology sector gained more than twice as much as the broader index and significantly outperformed every other sector. ⁴ A Volatile May Stocks rallied early in May, with the major indexes reaching multiple intraday and closing records despite elevated market volatility. Investors were encouraged by falling oil prices and a stronger-than-expected jobs report, although a hotter-than-expected April inflation reading tempered some of the optimism. ⁶ Kevin Warsh was sworn in as the new Chair of the Federal Reserve late in the month, which appeared to bolster investor confidence, with all three major indexes hitting multiple record closes. 7 Dow 30 in June In contrast to April and May, the Dow Industrials led the three major averages in June as investors rotated out of tech and into old-economy names. During June, the largest-ever initial public offering and the Dow hitting 52,000 for the first time captured investors' attention. 8,9 By the end of the quarter, oil prices had fallen to their lowest levels since February. Lower energy prices helped support defensive sectors, including healthcare and financials, as investors continued rotating away from large technology companies.¹⁰ When the quarter closed, both the S&P 500 and Nasdaq had posted their strongest quarterly gains in six years, while the Dow recorded its best first-half performance in five years. The Russell 2000 Index of small-cap stocks also delivered its strongest first half in 35 years.¹⁰ The Federal Reserve As expected, the Federal Open Market Committee (FOMC) held rates steady at its June 17 meeting, maintaining the Fed Funds target range at 3.50% to 3.75%. Despite the seemingly status quo decision, there was a lot more going on at first glance. Most notably, this was newly appointed Chair Kevin Warsh's first FOMC meeting. During his post-meeting press conference, Chair Warsh emphasized the Federal Reserve's commitment to returning inflation to its 2% target. His remarks reinforced the importance of monitoring geopolitical developments in the Middle East and their potential impact on inflation.³⁶ The Federal Reserve meets four more times between now and year-end; the next FOMC meeting is July 28-29. What Investors May Be Talking About in Q3 Looking ahead, financial markets are likely to remain focused on diplomatic developments in the Middle East and their potential impact on global energy markets. Even though it will take time to restore oil and commerce flows through the Strait of Hormuz, investors anxiously await updates on ship traffic. Investors will also continue to monitor inflation trends to see how changes in oil prices are rippling through the broader economy. 20 Regardless, financial markets know that a return to “normal” global oil supply levels won’t happen quickly. Restarting capped wells is complex, and it may take additional time for refineries to rebuild depleted inventories. 21 Have Questions? We're Here to Help While headlines and market movements can create uncertainty, it's important to keep them in the context of your long-term financial goals. If you have questions about the current market environment, interest rates, or geopolitical developments—or if you'd like to discuss how these events may affect your financial plan—please don't hesitate to reach out to your Patriot advisor. We're here to help you stay informed, evaluate any changes that may be appropriate, and keep your financial plan aligned with your long-term objectives. 1. WSJ.com, June 30, 2026 2. TMX.com, June 30, 2026 3. Morningstar.com, April 17, 2026 4. SSGA.com, April 30, 2026 5. WSJ.com, May 8, 2026 6. WSJ.com, May 12, 2026 7. WSJ.com, May 22, 2026 8. CNBC.com, June 12, 2026 9. CNBC.com, June 16, 2026 10. CNBC.com, June 30, 2026 11. SSGA.com, July 1, 2026 12. Reuters.com, April 17, 2026 13. TradingEconomics.com, June 30, 2026 14. TMX.com, April 30, 2026 15. TradingEconomics.com, May 15, 2026 16. YahooFinance, May 29, 2026 17. TMX.com, May 29, 2026 18. TheGlobeandMail.com, June 30, 2026 19. TMX.com, June 30, 2026 20. BostonFed.org, June 4, 2026 21. SeekingAlpha.com, June 15, 2026 22. MSCI.com, June 30, 2026 23. BEA.gov, June 25, 2026 24. WSJ.com, June 5, 2026 25. WSJ.com, June 17, 2026 26. TradingEconomics.com, June 17, 2026 27. KPMG.com, June 15, 2026 28. National Association of Home Builders, June 16, 2026 29. TradingEconomics.com, June 16, 2026 30. WSJ.com, June 9, 2026 31. TradingEconomics.com, June 9, 2026 32. WSJ.com, June 24, 2026 33. TradingEconomics.com, June 24, 2026 34. WSJ.com, June 10, 2026 35. KPMG.com, June 25, 2026 36. WSJ.com, June 17, 2026 37. NAR.realtor, April 13, 2026 38. NAR.realtor, April 13, 2026 39. NAR.realtor, April 13, 2026 40. NAR.realtor, November 14, 2025 41. NAR.realtor, November 14, 2025 42. REIC.ca, January 6, 2026 43. NAHB, February 17, 2027 44. DailyHive.com via CREA, January 24, 2026 45. DailyHive.com via CREA, January 24, 2026 46. CMHC Spring 2026 Housing Supply Report, March 11, 2026 47. NAR.realtor, January 14, 2026 This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## Coordinating Your Retirement Strategy URL: https://www.patriotinvestment.com/blog/coordinating-your-retirement-strategy/ An orchestra is simply a collection of instruments, each producing its own unique sound. It is only when a conductor brings them together that they create the beautiful music envisioned by the composer.   The same can be said about your retirement strategy.   A well-designed retirement plan is often built on three primary savings vehicles: employer-sponsored retirement plans, IRAs, and taxable investment accounts. When these pieces work together, they can help support the retirement you've envisioned.¹   Hierarchy of Savings   Maximizing the effectiveness of your retirement strategy begins with understanding the hierarchy of retirement savings.   If you're like most Americans, the amount you can save for retirement is limited. As a result, it may make sense to prioritize your savings by directing contributions to the accounts that offer the greatest potential benefits. For many investors, that means contributing to an employer-sponsored retirement plan first, followed by an IRA. Once those opportunities have been maximized, additional savings can be directed to taxable investment accounts.   Once you've determined where to save, the next step is deciding how to invest those assets. That's where your Patriot advisor can help. We'll review your financial plan, coordinate your investments across your various accounts, and help ensure your portfolio aligns with your retirement goals, risk tolerance, and tax considerations. Just as a conductor brings individual instruments together to create a symphony, a coordinated investment strategy can help your retirement accounts work together toward your long-term goals.   Withdrawal Strategy   When it's time to begin living off your retirement savings, coordinating your withdrawals becomes just as important as coordinating your investments.   There is no one-size-fits-all approach. The right withdrawal strategy depends on your income needs, tax situation, and long-term financial goals.   Your retirement income strategy should also consider other sources of income, such as Social Security benefits and pension payments. These income sources can play an important role in determining how much you may need to withdraw from your investment accounts and when those withdrawals should occur. Coordinating these income streams with your overall financial plan can help create a more efficient and sustainable retirement strategy.   One approach may involve withdrawing from taxable accounts first, allowing tax-deferred retirement assets additional time to potentially grow.   If you have both Traditional and Roth IRA accounts, your expectations about future tax rates may influence your withdrawal strategy. For example, if you believe tax rates will be higher in the future, you may prefer to withdraw from Traditional IRA assets before tapping Roth IRA assets. If future tax rates are uncertain, another strategy is to withdraw enough from Traditional accounts each year to fill your current tax bracket, then use Roth assets for any additional income needs.⁴   Key Takeaways   Understanding the retirement savings hierarchy can help you make the most of your retirement dollars. Prioritizing contributions to employer-sponsored retirement plans, IRAs, and taxable investment accounts can help maximize long-term savings.   Coordinating investments across different account types may improve tax efficiency and help your portfolio better support your long-term financial goals.   Your withdrawal strategy can significantly impact your retirement income and taxes. The most effective approach should be tailored to your goals, income needs, and overall financial plan.   Ultimately, every investor's situation is unique. Building an effective retirement strategy isn't just about choosing the right investments—it’s about coordinating all aspects of your retirement plan, including how you save, invest, and withdraw your assets, along with other sources of retirement income such as Social Security and pensions. The best approach should reflect your personal goals, risk tolerance, investment time horizon, income needs, and tax circumstances.   If you have questions about your retirement strategy or would like to review your financial plan, contact your Patriot advisor. We're here to help ensure all the pieces of your financial plan are working together to support your long-term goals.   1. In most circumstances, you must begin taking required minimum distributions from your 401(k), Traditional IRA, or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k), Traditional IRA or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty. 401(k) plans and IRAs have exceptions to avoid the 10% withdrawal penalty, including death and disability. Contributions to a traditional IRA may be fully or partially deductible, depending on your individual circumstances.   2. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss.   3. The market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of existing bonds typically falls. If an investor sells a bond before maturity, it may be worth more or less than the initial purchase price. By holding a bond to maturity an investor will receive the interest payments due plus his or her original principal, barring default by the issuer. Investments seeking to achieve higher yields also involve a higher degree of risk. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.   4. Roth IRA contributions may be limited or unavailable for taxpayers whose income exceeds IRS limits. However, eligibility depends on factors such as filing status and modified adjusted gross income (MAGI). To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal can also be taken under certain other circumstances, such as a result of the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. --- ## 2026 Tax Law Changes URL: https://www.patriotinvestment.com/blog/2026-tax-law-changes/ On July 4, 2025, the One Big Beautiful Bill Act was signed into law. This sweeping piece of domestic legislation extends, revises, and in some cases permanently establishes a wide range of tax rules affecting individuals, families, and businesses. Some provisions took effect immediately, and many are set to expire in future years. 1   Because this law introduced new concepts and ideas, it's worth understanding which changes apply to you and when.   Some provisions may create planning opportunities before they expire. Throughout this article, you'll see labels noting whether a provision is permanent, temporary, or set to change on a specific date. As always, we encourage you to speak with your tax, legal, or accounting professional before making any adjustments based on these updates. The IRS is also expected to issue additional guidance on implementation as the year unfolds. 1   Individual Taxes   Tax Brackets.  The current income tax rates have been made permanent: 12%, 22%, 24%, 32%, 35%, and 37%. Without the new law, these rates were set to revert to higher levels (15%, 25%, 28%, 33%, and 39.6% in most brackets) when the 2017 Tax Cuts and Jobs Act (TCJA) expired. 1   Status: Permanent.   Standard Deduction.  Beginning in tax year 2026, the standard deduction increases to $16,100 for single filers and $32,200 for those filing jointly, a modest increase from prior levels. 1,2   Effective: 2026.   Additional Deduction for Seniors.  A $6,000 additional deduction is available to taxpayers age 65 and older. This is in addition to the standard deduction available to all filers. 1   A few important details:   • The deduction begins to phase out at $75,000 in income for individuals and $150,000 for joint filers. 1   • It phases out completely for individuals earning above $175,000 and couples earning above $250,000. 1   • This deduction is temporary; it expires after 2028. 1   State and Local Tax (SALT) Deduction.  The cap on deductible state and local taxes increases to $40,400 in 2026 and will rise by 1% annually through 2029. However, in 2030, the SALT cap reverts to $10,000, so this benefit has a built-in sunset. 1   Note: The cap applies regardless of filing status. The deduction begins to phase out for taxpayers with incomes above $505,000. 1   Charitable Contributions.  Taxpayers who take the standard deduction can now deduct up to $1,000 in cash charitable contributions (single filers) or $2,000 (married filing jointly) without needing to itemize. This is a meaningful change for the majority of filers who don't itemize their deductions. 1   Families & Children   Child Tax Credit.  In 2026, the child tax credit is $2,200 per qualifying child. The credit also includes a cost-of-living adjustment (COLA), so the amount will increase with inflation in future years. 1   Status: Permanent, with annual inflation adjustments.   Dependent Care.  Starting in 2026, the dependent care flexible spending account (FSA) limit increases from $5,000 to $7,500 per year. In addition, the maximum percentage of qualified expenses eligible for the child and dependent care credit increases from 35% to 50%. 1   Effective: 2026.   Trump Accounts.  A new savings vehicle provides a one-time $1,000 government contribution into an account for eligible children born between 2025 and 2028. Parents may contribute up to $5,000 per year. Withdrawals are not permitted before the child reaches age 18. 1   529 Expansion.  529 education savings accounts now cover a broader range of expenses. The law expanded qualified K–12 expenses beyond tuition to include certain expenses such as books, tutoring, curriculum, testing, and certain educational therapy expenses. 1   Beginning in 2026, the annual limit for tuition-related 529 expenses increases from $10,000 to $20,000. 1   Expanded coverage is immediate; increased cap takes effect in 2026. Remember, a 529 plan is a tax-advantaged education savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10% federal penalty tax.   New Deductions for Workers   Deduction for Qualified Tip Income.  Workers who receive tips may deduct up to $25,000 in tip income. This deduction is available even if you take the standard deduction rather than itemizing. 1   The deduction phases out for individuals earning above $150,000 (or $300,000 for married filing jointly). 1   Status: Temporary; expires after 2028.   Deduction for Qualified Overtime Pay.  Single filers may deduct up to $12,500 in overtime pay, and married filers filing jointly may deduct up to $25,000. Like the tips deduction, this is available alongside the standard deduction. 1   The deduction phases out above the same income thresholds: $150,000 for individuals and $300,000 for married joint filers. 1   Status: Temporary; expires after 2028.   New Car Loan Interest.  Between 2025 and 2028, taxpayers can deduct up to $10,000 in interest paid on a new car loan, but there are restrictions. The vehicle must be a new qualified passenger vehicle and assembled in the United States. The deduction phases out for individuals with gross income above $100,000 and married filers with income above $200,000. 1   Status: Temporary; expires after 2028.   Small Business & Investors   Qualified Business Income (QBI) Deduction.  The 20% deduction on qualified business income for sole proprietorships, partnerships, and S corporations, originally set to expire with the TCJA, has now been made permanent. This is a significant benefit for small business owners and self-employed individuals. 1   Status: Permanent.   Expensing of Capital Investments.  Businesses may expense 100% of qualifying capital investments (such as equipment and machinery) made on or after January 19, 2025. This restores a provision that had been phasing down under prior law and is particularly valuable for businesses thinking about factory upgrades or significant equipment purchases. 1   Some limitations may apply depending on the type of investment. 1   1099-K Reporting Thresholds.  The reporting threshold for third-party settlement organizations, including payment apps and online marketplaces, has been restored to payments exceeding $20,000 and more than 200 transactions. Taxpayers should remember that income from the sale of goods or services must still be reported, regardless of whether a Form 1099-K is issued. 1,3   Estate & Gift Taxes   Increased Exemptions.  For 2026, the estate and gift tax exemption increases to $15 million (individual) and $30 million (married), with inflation adjustments thereafter. 1   Status: Permanent, with annual inflation adjustments.   A Note on Proactive Strategy.  Since the 2017 Tax Cuts and Jobs Act, there has been ongoing concern that the estate and gift tax exemption would sunset to pre-2017 levels. The new law removes that uncertainty for now, but as with all tax legislation, future Congresses can revisit these rules. 1   A Few Things to Keep in Mind   Temporary provisions require attention.  Several key deductions, including the additional deduction for seniors, deduction for qualified tip income, deduction for qualified overtime pay, and the new car interest deduction, all are scheduled to expire after 2028. If you may benefit from one or more of these temporary provisions, it may be worthwhile to incorporate them into your tax planning before they expire. 1   Some provisions adjust annually for inflation. The standard deduction, child tax credit, and estate exemption are all indexed, so the exact dollar amounts will change year to year. 1   The IRS is still issuing guidance .  The agency is expected to release implementation guidance throughout the year as it works through the details of the new law. We'll keep you informed as that guidance becomes available. 1   Questions About How These Changes Affect You?   The One Big Beautiful Bill Act includes a number of changes that could affect your tax strategy, retirement planning, estate plan, or business planning. Your Patriot advisor can help you evaluate how these provisions fit into your overall financial plan and work alongside your tax and legal professionals to help you make informed decisions.   If you have questions about how these changes may impact your financial plan, contact your Patriot advisor.   Consider working with a tax or legal professional before making any changes to your tax strategy based on the One Big Beautiful Bill Act. While this article provides an overview of several key provisions, your individual circumstances should be evaluated by the appropriate professionals.   1. https://www.congress.gov/bill/119th-congress/house-bill/1/text 2. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill   3. https://www.irs.gov/businesses/understanding-your-form-1099-k   This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. ---