Helping to Make Your Money Last a Lifetime

Contributed by: Kali Hassinger, CFP®, CSRIC™

If you’ve ever found yourself wondering, “Will I have enough to retire comfortably?” – you’re not alone. Many approaching retirement, even those with a sizable nest egg, can feel unsure about how to decide what is a safe and reasonable amount to live on in retirement. Although no two individual lives or retirements will look exactly the same, there are principles and help available that can help to provide much-needed clarity.

Start with a Plan, Not Just a Portfolio

Many people equate financial planning with investing, but that’s only part of the picture. Each client relationship begins with a financial plan. That plan requires a deep dive into your financial life – including your budget, retirement income sources, insurance coverages, estate plan, tax outlook, and, of course, your investment allocation.

Although the hard data is very important, we also need to better understand what is most important to you - your goals, lifestyle, and what you envision for yourself and your family. These deeply personal factors can help us determine what to prioritize within your financial plan.

Understand Your “Enough” Number

Shifting from savings mode to using your money for retirement can be a difficult adjustment. Ultimately, we want to know when you’ve accumulated enough to support your desired retirement. That amount can be found by running detailed retirement projections that factor in:

• Desired retirement age and lifestyle

• Inflation over time

• Rising costs of healthcare

• Social Security & Pension income

• Tax-efficient withdrawal strategies

• Possible portfolio returns and differing market scenarios

These highly technical (and jargony – sorry!) factors help us determine what a safe retirement spending rate and lifestyle should be based on your individual wants and needs. These numbers are just as deeply personal as your goals!

Invest for the Long Term

Making your money last doesn’t mean chasing high returns or even avoiding risk altogether. Building a retirement portfolio requires balancing several different varying factors. You want your allocation to be balanced and diversified, all while managing the risk based on your level of comfort and the level of return that your financial plan suggests is necessary.

Ongoing maintenance of the portfolio is also crucial. As asset classes and investment sectors provide different returns, your allocation can shift out of balance over time. Actively managing this breakdown, as well as your available cash, is an integral part of a well-planned retirement.

Plan for the Unexpected

Life is inherently filled with risks, such as medical events, market downturns, or family emergencies, to name a few. While we can’t protect ourselves from the unexpected happening, we can have a plan in place to address those unforeseen events. Emergency reserves, insurance coverage, an Estate Plan, and actively updating your financial plan throughout your life can help to ensure that you are in a good position to weather life’s ups and downs.

Stay Flexible and Review Regularly

As I just mentioned, updating your financial plan is just as important as the initial development process. Your life and needs will evolve, markets will shift, and tax laws will change. Having a long-term partner, such as a financial planner, who helps you stay aligned with your goals, encourages you to make adjustments when needed, and stays on top of changes that will affect your financial life can help you feel confident that your money will last. We recommend reviewing your plan at least annually, and, of course, whenever your life undergoes significant changes.

Confidence is the Objective

Financial Planning isn’t just about the numbers, although those are really important, too! Money is a necessity for all of us. We never want our clients to run out of money, but we also want them to live a happy and comfortable life. With a financial plan, you can strike the delicate balance between safely using your money to support your retirement, enjoying life now, and helping to make your money last a lifetime!

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Kali Hassinger, CFP®, CSRIC® is a Financial Planning Manager and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® She has more than a decade of financial planning and insurance industry experience.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Kali Hassinger, CFP®, CSRIC™ and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial adviser about your individual situation. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc®. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.

The Financial Starter Kit: Budgeting, Credit, and Investing for Young Professionals

Contributed by: Josh Golden

Edited by: Kelsey Arvai, CFP®, MBA

The Emerging Wealth Series 

Iris Hayes and Josh Golden join The Center for the summer. This series is a summer intern-led exploration of the values, behaviors, and trends shaping the future of wealth. 

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As a young professional (YP) emerging in the financial planning industry, this topic is top of mind for many, including myself and my peers. By being aware of your current finances, YPs have a tremendous opportunity to start investing in their future. It’s as simple as creating a budget for all sources of income and expenses. By acting early, you can build healthy money habits starting with an emergency fund (typically 3 to 6 months of liquid cash on hand). Before you can think about putting money aside to fund your financial future with investment vehicles, such as a Roth IRA, you first need to figure out your budget. Proper budgeting, forward-thinking, and starting to plan for retirement are all the main aspects that YPs should be thinking about.

When thinking of financial stability, a budget is the most efficient way to identify your sources of cash flow, money coming in, and money going out. This is crucial because the plan helps you accurately interpret your finances, enabling you to spend within your means. A trusted model to base your budget on is the 50/30/20 rule. This model is based on your total gross income. Ideally, 50% of the income would be earmarked for life expenses, 30% for lifestyle expenses, and 20% for savings (short-term and intermediate) and investments (intermediate and long-term). One thing that has worked wonders for me is thinking about the opportunity cost of the things I want to purchase. This means that I might ask myself, would I be better off in the long run with a new pair of jeans or $60 earning interest in my savings account? You could go further and equate $60 to three hours of work (assuming you make $19/hour). This puts into perspective the importance of intentional spending and weighing your options before buying those new pair of Abercrombie & Fitch Jeans.

Another important topic to discuss is credit. Credit is the ability to pay for things without having the money immediately and with the promise of repayment in the future. Credit scores are used by landlords, employers, and loan companies to assess your credit health. Therefore, it is essential that you systematically monitor your score to optimize your opportunities. The primary consideration when managing credit cards and credit scores is making timely payments, maintaining a zero balance, and keeping your spending at or below 30% of your credit limit. Keeping all of these in mind is what can trouble people the most. This goes with what has been discussed so far in the importance of creating a budget. That plan will ensure everything in your financial life goes as smoothly as possible. A great way to maintain a good credit score is to use less of your available credit limit. A good rule of thumb is 30% or less of your total credit limit. In an ideal world, you carry a $0 balance and completely pay off your card each month. By doing this, you never run the risk of spending more than you can afford. Another strategy for credit building is putting your gas and phone bills on your credit card. This system helps build positive saving behavior, a good payment history, and a good credit record.

For young investors, I believe a Brokerage Account, Roth IRA, or IRA is a great place to start your investment journey. Before doing so, it’s important to establish emergency savings. Emergency savings are often overlooked due to the pressure to keep up with the narrative that investing early, and often, is the most important. Yes, this is true, but there is a balance between taking care of your current self and future self.

The younger you expose yourself to the market, the higher the investments will compound and help you fund your current needs, future goals, and overall financial independence (retirement). Think of investing like planting a tree; you start with a seed, which represents your initial investment, and you monitor it over time and see how it grows. The growth over time from the tree is like your investments compounding. I feel it is best to be exposed in the market as early as possible because it is all about your time in the market, not timing the market. Better returns, consistency, and less worry are all factors of long-term investing. When comparing this to short-term speculation, you deal with heavy fee and tax ramifications as well as the highest form of volatility. The “get rich quick” mentality is flawed and often results in investors being burned by trying to time the market perfectly. Results and studies prove that investing for the long term is the most effective way to let your money work for you.  

Overall, YPs have a lot to think about when it comes to their financial future. Allocating current expenses, building prominent credit, and starting to save for retirement. By spending time on each of these aspects, they will have a healthy financial future. Your future self will thank you for starting your investment journey now because making informed decisions that consider both your current and future needs helps you live your dream life, not just in retirement. Think of yourself when you turn 70 years old; what do you want to think back on when you look back on your life? You have the chance now to set your future self up for success; what are you waiting for?

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the author and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Why Your Money Story Matters: Connecting Childhood, Identity, and Financial Goals

Contributed by: Iris Hayes

Edited by: Kelsey Arvai, CFP®, MBA

The Emerging Wealth Series

Iris Hayes and Josh Golden join The Center for the summer. This series is a summer intern-led exploration of the values, behaviors, and trends shaping the future of wealth.

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Think back to your earliest memories of money. Were you the kind of child who let your piggy bank grow heavy, or did you tend to unplug it at the melody of the ice cream truck? How did you go about spending money gifted from birthdays? Holidays? Early behaviors such as these laid the foundation for how you spend your money now. Recounting these experiences is important, because they give you a better understanding of your relationship with money. By challenging yourself to find patterns in the past, you will be able to make emotionally intelligent decisions with your money in the future.

Defining Your Story

What is my money story? A money story is a collection of memories, experiences, traumas, and events that shape the connection you feel toward money. It is generational, going back to the relationship your parents and their parents had with money. You may remember coming home to your dad sitting at the kitchen table. Head in hand, leaning over a pile of unpaid bills. Perhaps your mom stood by his side consoling him, "It'll be okay'" or maybe it caused tension in their marriage. In the household next door, funds were abundant but also hushed, never equipping your friend with the financial skills they need now.

These different upbringings influence the way individuals perceive their self-worth and their place in society. Those who grew up facing financial hardship had an awareness that success won't come easily. Whereas children brought up in wealth might take privilege for granted and be overconfident to a fault. Personally, coming from a very average working-class family, I recall blowing my allowance on $20 Lululemon headbands to establish status in middle school. These splurges would continue into high school and college, allowing me to keep up with my friends. As silly as it might seem, the things we do with money have a significant impact on our identity and how we wish to be perceived.

Whatever your money story is… whatever promises you made to yourself about how you will handle money as an adult, all have an influence on your financial wellness.

Re-Framing

Take, for instance, the 2008 recession—many struggled with the economic impact on their retirement accounts. This experience may have altered their view of money and sense of safety, leading to changes in their behaviors with money (such as keeping more cash than necessary). This exemplifies the connection between money-related stress and our habits.

The goal is not to completely avoid stress or hardship; the goal is to have a plan in place to help ease your mind during times of uncertainty. Let's face it: life is full of uncertainty. We do not know what will happen, but what we can do is plan for the worst-case scenario. This doesn't disregard your wants and needs but rather recognizes unfavorable reactions you might have towards money. These reactions can look and feel intense, feelings such as fear, anxiety, and guilt. By proactively planning and identifying these reactions, you can maintain your financial trajectory. Life will feel easier when you can refer to your plan to help guide you, even considering unforeseen economic and financial hardships.

Circling back to the Lululemon headbands, I've found that I've grown to reach greater satisfaction by building my savings to spend on experiences rather than spending frivolously on retail. I still enjoy shopping; however, now, I do it more consciously. I suggest buying with intention. For me, that looks like a mix of new, high-quality basics and filling out the rest of my wardrobe with fun pieces from second-hand or vintage stores. That is what works for me and my budget.

Take a moment to set financial goals and evaluate how they align with your spending habits. Is online shopping for a quick boost of serotonin getting in the way of saving for something that will bring more happiness in the long run? Do you feel yourself caving into excessive spending that leaves you in shambles come Sunday morning (AKA Sunday Scaries)?

The time that you put aside to set value for these spending habits and their relation to your end goals will be vital for your success. Pairing these strategies with professional guidance can make the transition from reactive spending to intentional financial planning even more impactful.

What are some financial habits you want to rework? We would love to hear from you! Reach out to us at CFPIntern@CenterFinPlan.com or call us at (248)-948-7900.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the author and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

What To Understand About The One Big Beautiful Bill

Contributed by: Michael Brocavich, CFP®, MBA

On July 4th, 2025, President Trump signed into law ‘The One Big Beautiful Bill’. The massive 940 page bill has a lot of provisions that will affect taxes for both individual filers as well as business filers.  As we study the provisions of the bill and see how our clients will be affected, we wanted to send out an overview of the provisions that we feel will be the most important to our clients.  As this list is thorough it is by no means a comprehensive overview of the entire bill.  As we continue to review the bill and understand the provisions within it, we will pass along those updates to you.  Please remember that some of the tax provisions will still need some guidance from the IRS on how they will be implemented so some provisions could face delay or require additional clarification before they can go into effect.

• Made permanent tax brackets from the Tax Cut and Jobs Act of 2017 which were set to expire in 2026.  The bill also includes additional inflation increases for the lower tax brackets 10%, 12% and 22%.

• Increased standard deduction – for the 2025 tax year, the standard deduction will be $15,750 for single filers and $31,500 for joint filers.

• Senior Bonus Deduction – Taxpayers age 65 and older can claim an extra standard deduction ($2,000 foe single filers, $1,600 per qualifying spouse in a couple) on top of the standard deduction.  In addition, from 2025 through the 2028 tax year seniors will also be able to deduct a bonus deduction of $6,000 per qualifying spouse. (Phase out of bonus deduction beginning at $75,000 / $150,000 for single/joint filers) This means that a couple both 65 or older with income of $120,000 can take the standard deduction of $31,500 for a joint filer, plus the existing age-related bonus of $3,200, PLUS the new bonus of $6,000 each for a standard deduction of $46,700.

• Increase in SALT Deduction - Temporarily raised to $40,000 in 2025, $40,400 in 2026 and then 1% annual increases over the prior year for 2027, 2028 and 2029. Reverts to $10,000 in 2030. Phases down (but not below $10,000) for those with modified adjusted gross income (AGI) over $500,000 in 2025 and $505,000 in 2026, and then increased 1% annually in each of the three following years.

• Charitable contributions for non-itemizers – Taxpayers who do not itemize their deductions can take an above-the-line deduction of $1,000/$2000 for single/joint filers for charitable contributions made in that tax year.

• Charitable contribution for tax filers who itemize their deductions – The bill also adds a new floor for charitable giving of 0.50% of income for individuals and 1% for corporations.  For example, an individual with $100,000 of income that is itemizing deductions and has a Charitable deduction of $10,000 will only be able to deduction $9,500. ($100,000 X 0.50% = $500 for the floor).

• Estate & Gift tax exclusion – Individual lifetime exemption increased to $15,000,000 per person and $30,000,000 for married couples.

• Tax on Tips – Up to $25,000 of qualified tip income is deductible.  Must be cash or credit card tips from an occupation that customarily received tips on or before December 31st, 2024.  Phases out for income over $150,000/$300,000 single /joint. Sunsets after 2028.

• Tax on Overtime – Up to $12,500/$25,000 single/joint of qualified overtime income can be deducted.  Phase out for income $150,000/$300,000 single /joint. Sunsets after 2028.

• Car Loan Interest Deduction – Taxpayers can deduct up to $10,000 of interest on new car loans.  To qualify, the final assembly of the vehicle must have been completed in the US and the deduction phases out for income of $100,000/$200,000 single/joint.

• Electric vehicle tax credits – Individuals will no longer be able to claim an EV tax credit for new car purchases after September 30th, 2025.  Home energy efficiency projects must be completed by December 31st 2025.

• ACA Eligibility Verification – For taxpayers that are receiving premium credits for health insurance under the ACA will face changes after December 31st, 2025.  Enhanced premium tax credits will expire at the end of 2025.  For those that will still qualify for tax credits, they will now have to go through re-verification annually rather than being automatically enrolled.  Lastly, the cap to recapture any excess tax credit has been removed and taxpayers will be required to pay 100% of any recaptured tax credit.

Higher Income Individuals

For the higher income earners, there are a few important provisions that you should be aware of.

• SALT Deduction - Phases down (but not below $10,000) for those with modified adjusted gross income (AGI) over $500,000 in 2025 and $505,000 in 2026, and then increased 1% annually in each of the three following years.

• Limits on Itemized Deductions – New limit reduces all itemized deductions, including SALT, by 2/37 of the lesser of total itemized deductions or amount of taxable income in excess of 37% bracket threshold. Essentially all deduction in the 37% tax bracket will only receive a 35% deduction.

• AMT tax – Permanently extends TCJA’s individual AMT exemption amounts in 2026, as inflation-indexed. Thresholds for phaseout of the exemption revert to 2018 levels ($500,000 – single filers; $1 million – joint filers), inflation-indexed thereafter. Phaseout is increased from 25% to 50% of amount by which taxpayer’s AMT income exceeds the applicable exemption phaseout threshold.

Important Provisions for Small Business Owners

• Business SALT no limits

• QBI Deductions – The bill made QBI deduction permanent at 20%. Expands deduction limit phase-ins from $50,000 to $75,000 (single filers) and from $100,000 to $150,000 (joint filers), including for specified service trades or businesses and pass-through entities subject to wage and investment limitations.

• 100% Bonus depreciation – qualifying assets will now be able to be expensed in the year that they were purchased.

• Immediate Expensing for Domestic R&D.

Reminder of Provisions That Are Set to Expire

If these are provisions that you qualify for, you will want to understand when they would expire so you can make sure to take full advantage of them while they are in effect.

• Senior Bonus deduction – Through 2028 tax year

• Tax on Tips – Ends December 31st, 2028

• Tax on overtime – Ends December 31st, 2028

• Car Loan Interest Deduction – Ends December 31st 2028

• SALT deduction – Ends December 31st, 2029

• Credits for EV/Energy Efficient home projects – EV credits expire after September 30th 2025 and home efficiency projects must be completed by December 31st, 2025.

The "One Big Beautiful Bill" brings substantial changes to the tax landscape, impacting individuals, businesses, and higher-income earners. While some provisions offer immediate benefits, others require careful planning to maximize their advantages. As we navigate these changes, our commitment is to keep you informed and help you make the most of the new opportunities. Stay tuned for more updates and feel free to reach out with any questions or concerns.

Michael Brocavich, CFP®, MBA is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He has an extensive background in both personal and corporate finance.

The information contained in this letter does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Michael Brocavich, CFP®, MBA, and not necessarily those of Raymond James. Expression of opinion are as of this date and are subject to change without notice. There is no guarantee that these statement, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Individual investor’s results will vary. Past performance does not guarantee future results. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability.

Q2 Investment Commentary - Diversification Delivers Results

Contributed by: Angela Palacios, CFP®, AIF®

Key Highlights This Quarter:

• Diversification Outperforms
  A balanced portfolio returned +6.69%, outpacing the S&P 500’s +6.2%, while also reducing risk amid market swings.

• Market Volatility Persists
  The S&P 500 hit new highs, dropped into correction, and rebounded—all within the quarter—highlighting the value of a balanced approach.

• Tariff Tensions Resurface
  Trade negotiations remain uncertain as the U.S. approaches key deadlines. Tariff revenue is rising, largely funded by U.S. consumers and businesses.

• “Sell America” Fears Overblown
  Despite April’s rare simultaneous drop in stocks, bonds, and the dollar, foreign demand for U.S. assets remains strong. Bond yields fell, and U.S. equities hit new highs by quarter-end.

• Credit Rating Downgrade
  Moody’s downgraded the U.S. from AAA to AA1—still strong, but a signal worth monitoring.

• Consumer Resilience Holds
  TSA screenings, hotel occupancy, and restaurant reservations remain robust, signaling continued consumer strength (Source: Raymond James Up and Adam).

• Geopolitical Risks Rise
  Escalation in the Middle East caused short-term volatility and a modest rise in gold and oil prices. Historically, such events have limited long-term market impact.

• GDP Impacted by Imports
  A surge in imports ahead of tariffs dragged Q1 GDP, but underlying consumer demand and inventory growth remain solid.

The first six months of 2025 have been anything but calm—changing government leadership, trade negotiations, global conflicts, and volatile markets have kept headlines spinning. Even the Federal Reserve, after pausing rate hikes, cited 'uncertainty' caused by tariffs. We have watched the S&P 500 hit new all-time highs, fall into correction territory, and then back to new all-time highs in a very short period. A diversified portfolio has provided some welcome risk reduction this year while also outpacing the returns of the S&P 500.

Tariffs

It is likely that we will continue to see volatility as the trade war escalates again, given the approaching expiration of the 90-day negotiation deadlines with various countries. There were numerous headlines surrounding the on-again, off-again tariff situation throughout the quarter. In the second half of the quarter, the legality of certain tariffs has been called into question, but there has been little traction on this issue, and it is a lengthy process to progress through the court system. The Big, Beautiful Bill is counting on about $2.5 Trillion in tariff revenue to offset costs. It is too soon to say if this will materialize, but for now, the worst-case Tariff scenarios seem to be off the table, and with that, consumer sentiment has improved. The very early data below show that in April and May, the government is earning more in tariff revenue than it did the year before. Where is that coming from? Mostly American consumers and businesses.

Best offers from trading partners were due on June 4th. As information becomes available regarding the parameters of certain deals, it is essential to remember that it will be unrealistic to negotiate a deal with every trading partner by July 8th (the 90-day deadline). However, don't get caught up in noise from small trading partners. We should focus most closely on our top 10 trading partners, as they account for 80% of our trade volume. The EU, Mexico, China, and Canada are our top trading partners, collectively accounting for 60% of our trade.

3 possible outcomes after July 9th (most likely a mixture of all 3 as the month continues): 

1. It could be a nonevent for certain countries with additional deadline extensions ;

2. It might be a time of celebration of long-promised trade deals;

3. Or it could be a day for other countries when the hammer comes down, and tariffs are simply dictated again.

Sell America!?

Among the April drawdown post-liberation day, we saw this "sell America" theme emerge. The worry was that investors had collectively lost faith in all things America, which caused a rare occurrence where stocks, bonds, and the U.S. dollar all fell at the same time. While rare, this does not necessarily need to be a red flag. April was a bit of an anomaly compared to a "normal" market environment because President Trump shook up all global trade.

To add to the headlines, Moody's decided in May to move the U.S.A. down one notch on their credit rating system – from AAA to AA1. Still great, but not perfect. Also, it's a worrisome headline.

We are not going to ignore the headlines; they COULD be the start of larger themes, but maybe more importantly, we will track the data to see where money is ACTUALLY going. Despite the headlines, Bloomberg reported that foreign banks were still holding more U.S. treasuries than ever. Despite the "sell America" headline, it seems that everyone is still "buying America." Another confirmation of this fact is that bond yields are lower than they were when we started the year. If investors were selling U.S. bonds in mass, you would likely see higher yields. And this is without even mentioning U.S. stocks (while underperforming internationally) were hitting all-time highs at the end of June.

Here is how our new rating stacks up against the rest of the world’s largest economies.

GDP

The decline was driven by a significant surge in imports, which is a subtraction in the calculation of GDP. Imports increased at an annualized rate of 41.3% in the first quarter as companies packed in as many orders as they could ahead of anticipated tariffs from the Trump administration. The surge in imports was good for a -5% contribution to the GDP calculation in the first quarter. Final sales of goods to domestic purchasers, another sign of demand in the economy, grew at a 3% annualized rate in the first quarter, above the 2.9% seen in the fourth quarter of 2024. We saw a huge build in inventories. However, when you examine underlying demand and consumer spending growth, it was still relatively solid.

There are several interesting real-time economic indicators that help determine the health of the consumer, who accounts for 70% of our economy. TSA screenings, Hotel occupancy, and restaurant reservations are all still looking very strong throughout the quarter. People are still going out to travel and eat.

Geopolitical Events

The Middle East conflict between Iran and Israel escalated significantly in June when Israel targeted bombing Iran's nuclear capabilities and the U.S., followed by also striking their nuclear facilities later in June. As a result, we saw some initial volatility, and gold prices climbed modestly again. However, history tells us that events like these, although extremely concerning from a humanitarian perspective, often cause initial stock market volatility but have a minimal impact over the long term. Most of the time, the S&P 500 notches positive returns, with an average annual return of about 8.5% when fast-forwarded 12 months.

Oil prices also spike as Iran is responsible for supplying a portion of the world's oil. However, it is interesting to note that the U.S. has become far less dependent on importing oil. In fact, we are net EXPORTERS of oil. See the chart below:

As you enjoy these final beautiful summer months, don't hesitate to reach out to us with any questions you may have. We appreciate the trust you place with us; thank you!

Angela Palacios, CFP®, AIF®, is a partner and Director of Investments at Center for Financial Planning, Inc.® She chairs The Center Investment Committee and pens a quarterly Investment Commentary.

Any opinions are those of the Angela Palacios, CFP®, AIF® and Nick Boguth, CFA®, CFP® and not necessarily those of Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. The MSCI EAFE (Europe, Australasia, and Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States & Canada. The EAFE consists of the country indices of 22 developed nations. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Investing in oil involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors. Past performance does not guarantee future results. Diversification and asset allocation do not ensure a profit or protect against a loss. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance is not a guarantee or a predictor of future results. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Grandparents in Retirement: Balancing Caregiving and Financial Stability

Contributed by: Sandra Adams, CFP®

For many retirees, becoming a grandparent brings immense joy and a sense of purpose. But increasingly, grandparents are stepping into caregiving roles—whether helping raise grandchildren, providing financial support to adult children, or caring for aging spouses. While these roles are rewarding, they can also place unexpected pressure on your retirement plan.

According to the U.S. Census Bureau, over 2.5 million grandparents are the primary caregivers for their grandchildren. Many others offer regular babysitting, financial support, or even contribute to housing costs. While it’s natural to want to help, it’s important to remember that your financial well-being is essential not only for your peace of mind but also to remain a steady presence in your family’s life.

Start by clarifying your boundaries—both in terms of time and money. Create a spending plan that includes caregiving-related costs, and be honest with your loved ones about what you can sustainably offer. Consider tools like 529 college savings plans or gift tax exclusions if you’re assisting with education costs. And if caregiving demands are growing, we can explore how that impacts your cash flow, healthcare planning, and estate intentions.

The key to navigating this role successfully is proactive planning. It is possible to maintain your financial independence while still being the supportive and loving grandparent you want to be. You don’t have to choose between caring for your family and caring for your future—you just need a plan that honors both.

Let’s work together to create a retirement plan that supports your family role without sacrificing your financial stability.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Smart Tax Strategies to Protect Your Retirement Income

Contributed by: Matt Trujillo, CFP®

You've spent decades building your nest egg—now it's time to enjoy it. But without the right tax strategies, Uncle Sam could take a bigger bite out of your retirement income than you expected. The good news? With some thoughtful planning, you can minimize your tax burden and make your savings last longer. Below are key strategies to help protect your retirement income from unnecessary taxation.

1. Understand Your Tax Bracket in Retirement

Most retirees assume their tax rate will drop, but that's not always the case. Required Minimum Distributions (RMDs), Social Security, pensions, and investment income can all push you into a higher bracket than you planned. Know your projected income sources and work with a tax professional to estimate your future tax brackets.

2. Use Tax Diversification in Your Accounts

Ideally, your retirement savings should be spread across three types of accounts:

• Tax-deferred (Traditional IRA, 401(k)): taxed when withdrawn.

• Tax-free (Roth IRA, Roth 401(k)): tax-free withdrawals if rules are followed.

• Taxable brokerage accounts: taxed annually on dividends and capital gains.

This mix gives you the flexibility to manage income and control tax exposure each year.

3. Delay Social Security (If You Can)

Delaying Social Security benefits until age 70 increases your monthly payout and can reduce the number of years your benefits are taxed. Since up to 85% of Social Security benefits can be taxable depending on other income, using withdrawals from tax-free or low-tax sources early on can help keep those benefits tax-efficient later.

4. Use Roth Conversions Strategically

A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA. You pay tax now at current rates, but future withdrawals are tax-free. This strategy is particularly powerful in years when your income is temporarily lower—such as early retirement before RMDs start at age 73 (for those turning 72 after 2022).

Tip: Be careful not to trigger a higher tax bracket or affect Medicare premiums (IRMAA surcharges) when doing a conversion.

5. Withdraw in a Tax-Efficient Order

Here's a general rule of thumb (though personal situations vary):

1. Withdraw from taxable accounts first (use capital gains rates if favorable).

2. Then tax-deferred accounts (IRA, 401(k), subject to ordinary income tax).

3. Save Roth accounts for last, allowing them to grow tax-free as long as possible.

This approach helps manage taxes today while preserving long-term tax-advantaged growth.

6. Manage RMDs Carefully

Once you hit RMD age, you must begin taking minimum distributions from your traditional retirement accounts, which are taxed as ordinary income. Failure to take RMDs results in severe penalties. Strategies to reduce future RMDs include:

• Roth conversions before RMD age.

• Qualified Charitable Distributions (QCDs), which let you donate up to $100,000 per year directly to charity tax-free.

7. Take Advantage of the Standard Deduction and Tax Credits

In retirement, many people itemize less and rely on the standard deduction, which increases with age (currently higher for taxpayers 65+). Smart timing of deductions or capital gains can help you stay under taxable thresholds. Also, check for available tax credits, such as the Credit for the Elderly or Disabled.

8. Be Aware of State Taxes

State taxes can significantly impact your retirement income. Some states tax Social Security, pensions, or IRA withdrawals, while others (like Florida, Texas, or Nevada) have no state income tax. If you're planning a move in retirement, consider the state's tax treatment of retirees as part of your decision.

Taxes don't stop when your paychecks do, but with the proper planning, you can keep more of your hard-earned retirement savings. Whether you're just starting retirement or already enjoying it, work with a financial advisor or tax professional to tailor a strategy that fits your goals, lifestyle, and income needs.

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Enjoyed this blog? Boost your financial confidence with our book, Finding Your Center: Achieving Confidence Through Financial Planning. Click HERE to learn more and get your copy.

If you're in the Metro Detroit area, join our book tour and receive a FREE copy!

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Matthew Trujillo, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® A frequent blog contributor on topics related to financial planning and investment, he has more than a decade of industry experience.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the author and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability. Conversions from IRA to Roth may be subject to its own five-year holding period. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals of contributions along with any earnings are permitted. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. Matching contributions from your employer may be subject to a vesting schedule. Please consult with your financial advisor for more information. 401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Contributions to a Roth 401(k) are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72.

Thinking About Retiring Early? Don’t Overlook the Rule of 55

Contributed by: Sandra Adams, CFP®

As a financial advisor, one of the most common questions I hear from clients considering early retirement is: "How can I access my retirement funds before age 59 ½ without penalty?" If you are asking that too, let's discuss an often-overlooked option: the Rule of 55.

The Rule of 55 allows you to withdraw money from your 401(k) or 403(b) without the usual 10% early withdrawal penalty if you leave your job in the year you turn 55 or later. This can be a helpful tool if you are retiring early and need income before other sources like Social Security, pensions, or IRAs kick in.

Here is the key: this rule applies only to the retirement account with your most recent employer. It does not work with old 401(k)s you have rolled into an IRA, so timing and account structure matter. That is why reviewing your plan before making any moves is important.

I have worked with clients who successfully used the Rule of 55 to bridge the income gap during early retirement—while keeping their long-term investments on track. With the right strategy, it can be part of a broader plan that balances your ability to draw income now with the freedom to draw from other sources of income later. And even if you don't ultimately need to draw on the funds, but you might, keeping at least a portion of your 401(k) balance in-tact to allow you the ability to draw on it "in case" could be a smart move until you reach that magic age 59 ½ if you haven't built up significant reserve savings or after-tax investment account balances to draw on.

If you are thinking about retiring before 59 ½ and may need access to your retirement savings, it is best to map out the best path for your unique situation. There's no one-size-fits-all solution, but with careful planning, you can avoid surprises and make the most of your hard-earned savings.

Early retirement is possible—just make sure you are stepping into it with a plan that supports your lifestyle and your future. If you or anyone you know is considering early retirement and might need to think through their options, do not hesitate to reach out. We are always happy to help! Sandy.Adams@CenterFinPlan.com.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Giving Back Without Giving Away Too Much: Tax-Smart Strategies for Charitable Donations

Contributed by: Lauren Adams, CFA®, CFP®

We all have an interest in making the world a better place for our families and the generations to come. That’s why many of us give money, time, and resources to help support charities we believe in to make a difference for others in need, the towns and cities we live in, and the planet. But what if you could donate to organizations to support their efforts and get a tax deduction while doing it? Well, you can, and the tax code even incentivizes it!

At The Center, one of our favorite ways to improve lives is by helping our clients make a positive impact on the world through what we call “tax-savvy charitable giving.” While many people give charitably by writing a check, digging into their wallets for cash, or putting a donation on their credit cards, we’re here to tell you there’s a better way! We can deploy several key strategies to help our client’s charitable dollars stretch even further while lowering their tax burden.

Strategy #1: Gifting Securities Instead of Cash

Our first strategy deals with taxable assets like the ones in brokerage accounts. Instead of donating cash, donating securities that have appreciated in value—like stocks, ETFs, or mutual funds—could be a better way.

If you’ve been investing for a long time, you likely have shares that have increased in value. Normally, whenever you sell those shares, you pay taxes on the capital gains associated with that growth. But if you give those appreciated shares to charity, you can deduct the fair market value of those shares without paying capital gains taxes. You can even decide to buy those shares right back after you donate them, which raises the cost basis of your holdings and, ultimately, helps lower your future tax bill if and when you decide to sell (lowering your tax burden in retirement when you start drawing on your portfolio).

In addition to being a tax-advantaged way to donate to charity, this strategy can also help if you have a large concentrated stock position—where a considerable percentage of your portfolio is composed of one or a few stocks—to trim that concentration risk without triggering a hefty tax bill.

Again, there are caveats: You need to make sure you’ve held the security for more than a year, and there are IRS limits on how much you can deduct in a given year as a percentage of your overall income. And if the stocks depreciate in value, the tax benefits don’t apply. And make sure to keep your tax preparer in the loop along the way.

Strategy #2:  Donating Directly From Your IRA

This strategy involves a concept called the Qualified Charitable Distribution (QCD). How does it work? Instead of taking a distribution from your IRA, paying taxes on the amount withdrawn, and sending that money to your checking account, QCDs allow you to send money directly from your IRA to the charity of your choice. In essence, it’s a transfer of assets from your IRA to one or more qualified nonprofits.

However, there are some caveats: You need to be at least 70.5 years old, and the charity has to be a 501(c)(3), meaning a tax-exempt nonprofit whose earnings support the advancement of its charitable cause. Also, there are limits on how much you can give each year—but that number is relatively high. In case you’re wondering, in 2025, it’s up to $108,000 per person per year.

Usually, distributions from your IRA are taxed when they’re received. But with a QCD, they become tax-free as long as they’re transferred to an eligible nonprofit organization. Giving directly from your IRA results in those dollar amounts not being included in your gross income for that year, which results in a lower tax bill for you. It can also lower the amount you may pay for Medicare premiums and the portion of Social Security taxable to you, depending on your situation and income level.

For those of you who have reached the milestone age, a QCD also counts toward satisfying the distributions you must take each year for your Required Minimum Distribution, the amount the government makes you withdraw from your IRA each year once you hit a certain age (generally, 73-75). This is especially useful if you don’t need your full RMD to live on or plan to give charitably (now you’re doing so in a more tax-efficient manner!).

Strategy #3:  Exploring Donor Advised Funds

Let’s start with a quick history lesson. The 2017 Tax Cuts and Jobs Act significantly raised the standard deduction many now enjoy on their tax returns. This means you have to give a lot more to charity than you did in the past to push you above the standard deduction amount to see a reduction in your tax bill for the charitable dollars you donate.

For this reason, we often recommend clients lump or bunch several years of charitable gifts to help push them over that standard deduction amount in one year. This works to a client’s advantage if they’ve had an exceptionally high-income year due to something like selling a business before retirement. That’s when we suggest a Donor Advised Fund or Family Foundation, which is like a charitable investment account where you can donate, get the tax benefit now and then give a gift to the charities you care about later. And guess what? These strategies can be combined, meaning you can decide to gift appreciated securities to one of these special accounts, allowing you to avoid capital gains tax and lump together your gifts to maximize the overall deductions you’re able to recognize over time. For instance, a client in one of their highest income years may decide to bunch 5-10 years of future gifting into a charitable account AND use appreciated securities to do so!

Strategy #4 (and Beyond): Estate Planning Techniques

To further increase our clients’ charitable tax planning, we often collaborate with their estate planning attorneys to shift the beneficiaries of their pre-tax retirement accounts to the charities they would like to support upon their death. That leaves their investment accounts and other after-tax assets to friends and family. Because charities (unlike people) don’t pay income taxes when they are beneficiaries, this strategy could end up saving our clients’ heirs thousands of dollars in future income taxes when they eventually inherit retirement account money.

These are just a few of the strategies we recommend for our clients. But regardless of the strategy employed, one thing is always true for us at The Center: Helping our clients get the most bang for their charitable buck is one of the many reasons why we love what we do!

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Enjoyed this blog? Boost your financial confidence with our book, Finding Your Center: Achieving Confidence Through Financial Planning. Click HERE to learn more and get your copy.

If you're in the Metro Detroit area, join our book tour and receive a FREE copy!

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Lauren Adams, CFA®, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

What is an “In-Service” Rollover?

Contributed by: Nick Defenthaler, CFP®, RICP®

When you hear "rollover," you typically think of retirement or changing jobs. For the vast majority of clients, these two situations will really be the only time they will complete a 401k rollover. However, you might not know about another type of situation in which you can move funds from your company retirement plan to your IRA. This is what's known as the "in-service" rollover and is an often-overlooked planning opportunity. 

Rollover Refresher

A rollover is a pretty simple concept. It is the process of moving your employer retirement account (401k, 403b, 457, etc.) over to an IRA that you have complete control over and is entirely separate from your employer plan. Most people do this when they retire or switch jobs. If completed properly, rolling over funds from your company retirement plan to your IRA (and vice versa) is a tax and penalty-free transaction because the tax characteristics of a 401k and IRA are generally the same.

What is an "In-Service" Rollover?

Unlike the "traditional" rollover, an "in-service" rollover is probably something you've never heard of, and for good reason. First, not all company retirement plans allow for it, and second, even for those that do, the details can be confusing to employees. The bottom line: An in-service rollover allows an employee (often at a specified age such as 55 or 59 ½) to be able to roll their 401k to an IRA while still employed with the company. The employee can also still contribute to the plan, even after the rollover is complete. Most plans allow this type of rollover once per year, but depending on the plan, you could potentially complete the rollover more often for different contribution types (ex., 'after-tax' contributions that you could possibly roll over to a Roth IRA for future tax-free growth).

Why Complete an "In-Service" Rollover?

More investment options: With any company retirement plan, you will be limited to the plan's investment options. By having the funds in an IRA, you can invest in just about any mutual fund, ETF, stock, bond, etc. Having access to more options can potentially improve investment performance, reduce volatility, and make your overall portfolio allocation more efficient. In my experience, most employer plans have decent options for stock funds but are very limited when it comes to bond options. This can become problematic as one gets closer to retirement and needs to position their portfolio more conservatively.

Coordination with your other assets: If you're working with a financial planner, they can coordinate an IRA into your overall plan far more efficiently than a 401k. How many times has your planner recommended changes in your 401k that simply don't get completed? (Tisk, tisk!) If your planner is managing the IRA for you, those recommended changes are going to get completed instead of falling off your personal "to-do" list.   

Additional flexibility: IRAs allow certain penalty-free withdrawals that aren't available in a 401k or other company retirement plans (certain medical expenses, higher education expenses, first-time homebuyer allowance, etc.). Although using an IRA for these expenses should be a last resort, it's nice to have the flexibility if needed.

Exploring "In-Service" Rollovers

So what now? The first thing is to always keep your financial planner in the loop when you retire or switch jobs to see if a rollover makes sense for your situation. In many cases, it might make more sense to keep your employer retirement plan as is. Factors such as cost of professional management, flexibility on distributions (ex., special age 55 penalty-free distribution rules), and possible increase of creditor protection should all be considered when determining if a rollover could be right for you and your long-term financial plan. Just like most things in financial planning, there is almost never a 'black and white' answer when it comes to rollovers. Ideally, you may want to consider working with a Certified Financial Planner when making this determination for you. CFPs must typically adhere to the ethics and standards conduct of the CFP® board by acting in your best interests.

Nick Defenthaler, CFP®, RICP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® Nick specializes in tax-efficient retirement income and distribution planning for clients and serves as a trusted source for local and national media publications, including WXYZ, PBS, CNBC, MSN Money, Financial Planning Magazine and OnWallStreet.com.

Article written by Nick Defenthaler, Partner, Financial Planner with Center for financial Planning, Inc. 24800 Denso Drive, Suite 300, Southfield, MI 48033, 248-948-7900. If you've changed jobs or are retiring, rolling over your retirement assets to an IRA can be an excellent solution. It is a non-taxable event when done properly - and gives you access to a wide range of investments and the convenience of having consolidated your savings in a single location. In addition, flexible beneficiary designations may allow for the continued tax-deferred investing of inherited IRA assets. In addition to rolling over your 401(k) to an IRA, there are other options. Here is a brief look at all your options. For additional information and what is suitable for your particular situation, please consult us. Leave money in your former employer's plan, if permitted. Pro: May like the investments offered in the plan and may not have a fee for leaving it in the plan. Not a taxable event. Roll over the assets to your new employer's plan, if one is available and it is permitted Pro: Keeping it all together and larger sum of money working for you, not a taxable event. Not all employer plans accept rollovers. Rollover to an IRA Pro: Likely more investment options, not a taxable event, consolidating accounts and locations: usually fee involved, potential termination fees. Cash out the account: Con: A taxable event, loss of investing potential. Costly for young individuals under 59 ½; there is a penalty of 10% in addition to income taxes. Be sure to consider all of your available options and the applicable fees and features of each option before moving your retirement assets. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Center for Financial Planning, Inc.®, is not a registered broker/dealer and is independent of Raymond James Financial Services. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Prior to making any investment decision, you should consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Earnings withdrawn prior to 59 1/2 would be subject to income taxes. Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Like Traditional IRAs, contribution limits apply to Roth IRAs. In addition, with a Roth IRA, your allowable contribution may be reduced or eliminated if your annual income exceeds certain limits. Contributions to a Roth IRA are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.