In this month’s newsletter, learn about 7 financial facts and how they apply to your financial situation, and how to organize your financial spring cleaning to have it pay dividends throughout the year.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Upcoming dates:

April 15

– Individual income tax returns for 2025 are due
– First quarter 2026 estimated tax payments are due

Spring Cleaning That Pays You Back All Year

Spring cleaning isn’t really about dust or closets. It’s about deciding what earns space in your life.

Your money deserves the same treatment. Instead of rushing through financial tasks you may only do once per year, such as reviewing your credit report or insurance policies, treat them as a deliberate spring financial checkup.

Done thoughtfully, this annual reset can pay dividends all year by helping you cut unnecessary costs, uncover hidden money, and put smarter systems in place that keep working long after the cleaning is finished.

Here are some ideas to get you started.

1. Create a once-a-year money map.

Step back and take in the full landscape of your finances. Update your list of accounts, check that beneficiaries are correct, refresh important passwords, and review your credit report. This is also a good moment to scan your bill schedule so nothing slips through the cracks. Think of it as creating a clear financial map before making any changes.

2. Turn forgotten clutter into cash.

Your home and your accounts may be holding money you forgot about. Sell items you no longer use, redeem credit card rewards, and close old accounts quietly collecting dust. It’s also worth searching for unclaimed funds through your state’s database. Small discoveries add up quickly when you sweep through every corner.

3. Plug quiet money leaks.

Recurring expenses have a way of multiplying unnoticed. Review your subscriptions, streaming services, insurance policies, and monthly utilities. Cancel what you no longer use and call providers to ask about better rates. A quick round of comparison shopping can also reveal cheaper options. These small trims often lower your costs for the rest of the year.

4. Recalibrate the systems that grow your savings.

Revisit your emergency fund and any sinking funds for upcoming expenses. If your income has grown or bills have dropped, increase automatic transfers even slightly. Small adjustments here tend to compound quietly month after month. Once the system is updated, your savings can keep growing without extra effort.

5. Tighten the bolts on your debt reduction strategy.

Review your balances, interest rates, and current repayment strategy. You may find opportunities to refinance, consolidate, or shift extra payments toward the highest-interest debt. The goal isn’t to reinvent your entire plan. It’s simply to tighten the bolts so your payoff strategy stays efficient and moving forward.

6. Realign your goals with the life you’re living now.

Take time to revisit both short- and long-term financial goals. Some priorities may have shifted since last year, and timelines may need adjusting. This is your chance to make sure your money is still moving toward what matters most today. When your spending, saving, and investing reflect your current priorities, your financial plan becomes far easier to follow.

A deliberate spring financial reset can have a lasting impact throughout the upcoming year.

By reviewing key accounts, trimming waste, and realigning your goals, you can create a stronger system that supports your finances long after spring ends.

Tax Day Is Here!

Last-minute details, tips and freebies

It is good information to know, so if you have not already done so, ask yourself these questions: However, upon review, it makes sense to provide this information to everyone, whether you have filed or not.

What follows is information typically provided in our filling instructions to you when the tax return is completed. With the individual tax-filing deadline on Wednesday, April 15th, now is the time to complete all filing arrangements and payments.

1. Did you sign your e-file authorization form?

IRS Form 8879 needs to be signed by you before your taxes can be e-filed. If filing jointly, your spouse needs to sign as well. If you haven’t already, please return the signed form ASAP to ensure that your taxes can be e-filed on time. But don’t sign it before reviewing the tax return. Remember, this signature means you agree with the accuracy of the tax return.

2. Do you need more time to file?

If you are not ready to file your taxes before the initial April 15th deadline, you can file for a six-month extension. Be aware that it is only an extension of time to file – not an extension of time to pay taxes you owe. You still need to pay all taxes by April 15th!

3. Do you owe money?

If yes, make your tax payment now! The IRS has several payment options on their website. If mailing a payment, include Form 1040-V and ensure the mail is postmarked on or before April 15th. Sending the payment by certified mail will ensure you have proof of a timely payment. Late payments, even by one day, are subject to IRS penalties and interest.

4. Do you need to deposit funds in your IRA or HSA?

Did you claim an IRA or HSA contribution on your tax return? In order for the deduction to be valid for 2025, all deposits to those accounts need to be made by April 15th. Once completed, save proof of the contribution with your 2025 tax files.

5. Do you need to make an estimated tax payment?

The first quarter estimated tax payment for 2026 is also due by April 15th. If you owe taxes for 2025, making 2026 estimated payments might make sense for you. A quick way to calculate a first quarter payment is to divide the taxes you paid in 2025 by four, then adjust this number for any paycheck withholdings. Send your payment along with Form 1040-ES to the IRS by April 15th. Then schedule a tax-planning meeting to determine the best approach for the remainder of the year

If you do miss a deadline, file your return and pay the taxes as soon as you can to stop the accruing of interest and penalties.

Affordable Ways to Strengthen Your Business’s Brand

A strong brand helps customers remember and trust your business. The good news is that building a recognizable brand doesn’t require a large marketing budget.

With the right approach, even small steps can make a meaningful difference.

Here’s a look at several practical, low-cost methods for strengthening your business’s brand.

Clarify your brand identity before spending money.

Identify your mission, values, and what sets your business apart before investing in marketing tools or design. Consider who your ideal customers are and what they care about most. A clear brand identity helps guide decisions and ensures your messaging stays focused, consistent, and effective.

Create consistent visual branding.

Choose a simple color palette, a few fonts, and a logo that reflect your business’s personality. Use them consistently across your website, social media, emails, and marketing materials. Free or low-cost design tools can help you maintain a polished, professional appearance without overspending.

Use social media strategically.

Focus on platforms where your audience is most active and share content that informs, helps, or entertains them. Maintain a consistent voice and visual style in your posts. Responding to comments and messages also builds stronger relationships and reinforces brand trust.

Leverage customer experiences and reviews.

Encourage satisfied customers to leave reviews on platforms like Google or social media. Share positive testimonials on your website and marketing materials. Highlighting real experiences helps build trust, strengthens credibility, and shows potential customers the value your business provides.

Build authority through helpful content.

Create blog posts, short videos, or guides that answer common customer questions or solve everyday problems. Focus on providing useful information rather than direct promotion. Over time, sharing helpful content can position your business as a trusted resource.

Strengthen your brand through partnerships and community.

Look for opportunities to collaborate with complementary businesses or participate in local events and groups. These connections introduce your brand to new audiences while reinforcing your reputation as an active, trusted presence in the community.

Maintain consistency in customer interactions.

Keep your tone consistent across emails, social media responses, and customer service conversations. Clear, friendly communication reinforces professionalism and trust. When customers have a reliable experience at every touchpoint, your brand becomes more recognizable and dependable.

Be a storyteller.

Share why your business started, what motivates your work, and the problems you aim to solve for customers. Use this story across your website, social media, and marketing materials so your brand feels memorable and authentic. People connect with stories more easily than slogans.

Refresh existing marketing materials.

Strengthening your brand doesn’t always require creating something new. Review your current marketing materials to spot opportunities for refining, updating, or sharpening the message they convey about your business. Even small updates can make your brand appear more polished and professional.

7 Interesting Financial Facts

Money touches nearly every part of our lives, yet many people are surprised by how common certain financial behaviors actually are.
Here are 7 interesting financial facts that highlight real trends in personal finance, along with practical tips to help you make smarter decisions.

Fact #1: 46% of Americans with credit cards carry a balance from month-to-month. Nearly half of credit card users revolve a balance at some point during the year. Carrying a balance means paying interest, which can often exceed 20% annually.

Financial tip: Use credit cards like a debit card. Only charge what you can pay off in full each month. If you already carry a balance, consider the avalanche method – pay extra toward the card with the highest interest rate while making minimum payments on the others.

Fact #2: 73% of taxpayers receive a tax refund each year. While a refund can feel like a financial windfall to some, it actually represents an interest-free loan to the government.

Financial tip: Consider adjusting your tax withholding if your refund is very large. Take the extra money in your paychecks and redirect it into savings or investments.

Fact #3: Americans hold over $1.67 trillion in auto loan debt. With rising car prices, more buyers rely on financing, often stretching loan terms to keep monthly payments manageable.

Financial tip: When buying a car, focus on the total cost rather than just the monthly payment. Shorter loan terms and larger down payments can significantly reduce the interest you pay over time.

Fact #4: 40% of U.S. homeowners own their homes without a mortgage. A growing share of homeowners have fully paid off their homes.

Financial tip: Even if paying off your mortgage early is appealing, balance this goal with other priorities such as retirement savings and emergency funds.

Fact #5: U.S. households owe about $18.8 trillion in total debt. Mortgage debt accounts for the majority of this amount, followed by auto loans, student loans, and credit cards. Debt can help people achieve major life goals like homeownership or education, but too much can limit financial flexibility.

Financial tip: Track your debt-to-income ratio. While having no debt is the ideal situation, keeping monthly debt payments below about one third of your income can help maintain some financial stability.

Fact #6: 67% of Americans have little to no savings after each paycheck. Rising housing costs, inflation, and everyday expenses have made it difficult for many households to build savings.

Financial tip: Start with small, automatic savings. Even setting aside a small amount from each paycheck can build meaningful financial security over time.

Fact #7: 54% of working-age Americans have some form of post-secondary education. More than half of U.S. adults have continued their education beyond high school through a variety of paths – including four-year colleges, community colleges, trade schools, technical programs, and professional certifications.

Financial tip: If you’re considering additional education or training, evaluate the return on investment before committing. Sometimes shorter programs, certifications, or trade schools can provide strong earning potential with significantly lower costs than a traditional four-year degree.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

March is all about momentum, especially when it comes to planning ahead for 2026. In this month’s newsletter, we explore why your tax planning cycle begins now and share practical steps to help you get started in the right direction.

A key part of this strategy is understanding the difference between tax credits and tax deductions. While both can reduce what you owe, one often delivers significantly greater impact. We break down how each works and why the distinction matters. We also zoom out to take a broader financial view, offering practical retirement planning insights tailored to every stage of life.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Filing your 2025 tax return may feel like crossing a finish line. In reality, this moment is the starting point for smart tax planning during 2026.

Here are several ideas to kick start your own tax planning cycle.

If you get a big refund, adjust your withholdings. A large refund may feel rewarding, but it often means you gave the government an interest-free loan all year. This money could have supported debt reduction, savings, or investments, instead. After filing, revisit your Form W-4 and run a projection for 2026. Fine-tuning your withholding improves monthly cash flow and reduces the likelihood of over-correcting later in the year.

If you have a big tax bill, review estimated tax payments. A significant balance due is more than an inconvenience. It may signal under-withholding or insufficient quarterly estimates. Early in the year is the ideal time to correct course. Review income sources, especially self-employment, investment, or bonus income, and adjust estimated payments accordingly.

Plan now to take advantage of the $1,000 above-the-line charitable donation deduction. With an above-the-line charitable deduction available ($2,000 for married couples), thoughtful giving becomes even more strategic. Consider your cash flow to optimize the timing of donations. Spreading contributions across the year may make budgeting easier, while ensuring you fully utilize the deduction.

Review retirement contribution limits for 2026. Confirm contribution limits for IRAs, 401(k)s, and other qualified plans for 2026, and evaluate whether you can increase deferrals. Even modest monthly adjustments can significantly reduce taxable income over the course of a year. Starting early also makes it easier to reach maximum contribution thresholds without straining year-end cash flow.

Plan HSA contributions and medical expenses. Health Savings Accounts offer a rare triple tax benefit – deductible contributions, tax-free growth, and tax-free qualified withdrawals. Review eligibility, contribution limits, and anticipated medical expenses for 2026. Coordinating planned procedures, prescriptions, or ongoing care with your funding strategy can enhance the tax benefit while keeping healthcare spending organized and predictable.

Take into account life events. Major life changes often reshape your tax profile. Marriage can alter filing status and bracket exposure. Divorce may affect dependency claims and support payments. A new child can unlock credits and deductions. Anticipating these shifts allows you to update withholding, adjust estimated payments, and plan eligibility for credits before the year unfolds.

Pay attention to no tax on tips and overtime. Accurate tracking becomes essential if you receive tip and/or overtime income. Confirm how your employer reports this income and ensure payroll systems reflect proper treatment. Employers and business owners must also review compliance procedures. Understanding how these earnings are classified early in the year helps prevent reporting errors and maximizes any available benefit.

The most effective tax strategies are built early. Use your filed 2025 tax return as a starting point, make adjustments now, and give your 2026 plan room to work in your favor.

From Tension to Teamwork – A Smarter Way for Couples to Manage Money

Couples often name money as a major source of tension – but it can also become one of your greatest tools for building trust and momentum together.

When approached intentionally, money stops being a stressor and starts becoming a strategy.

Here are some ideas for creating financial harmony with your long-term partner or spouse.

– Be radically transparent. Honesty about money should start early. Both partners should understand the full financial picture including income, debts, savings, investments, and credit history, says everydayhealth.com. Major obligations such as student loans, credit card balances, or family financial responsibilities should never come as a surprise years into the relationship. Secrecy around money erodes trust quickly.

Transparency also extends beyond numbers. Spending habits, avoidance tendencies, and emotional triggers around money matter just as much as account balances.

– Have recurring future-focused conversations. Make space for proactive conversations about where you are headed financially. Children, career moves, business ventures, caregiving, travel, and retirement all carry financial implications. If your long-term visions drift apart, put them back on a common course.
According to Mutual of Omaha, consider revisiting these discussions periodically.

Goals and priorities evolve, and staying aligned requires ongoing communication.

– Understand each other’s financial comfort zones. Two people can earn the same income yet feel very different levels of security, says the financial tech company Beem.com. One may view a mortgage or low-interest loan as practical, while the other prefers minimal debt and maximum stability.
Talk through specific scenarios, for example how much savings feels safe, what level of debt is acceptable, and what qualifies as a splurge.

These conversations reveal deeper beliefs about risk and security. The objective is not to win the argument, but to understand each other’s reasoning.

– Divide responsibilities, but build shared competence. One partner may enjoy the details while the other prefers strategy. Divide responsibilities accordingly, but avoid letting one person disengage completely, suggests The Gottman Institute.

Whether it is paying bills, managing investments, or meeting with advisors, both partners need to understand the accounts, obligations, and key documents. This includes access to the accounts in case of an unforeseen health event.

– Turn conflict into collaboration. Disagreements are inevitable. One partner may prioritize experiences, while the other focuses on saving or upgrading practical needs. Rather than turning these moments into battles, the website theknot.com says to approach them as shared design challenges.

Look for solutions that respect both security and enjoyment – perhaps adjusting the scale of a purchase or setting aside personal spending allowances.

When couples approach money as a shared strategy rather than a recurring argument, something powerful happens.

Financial discussions stop feeling like threats and start feeling like planning sessions for a future you are intentionally building together.

Fraud and embezzlement don’t just happen at large companies. In fact, theft may be more common in small businesses because many lack internal controls that are typically in place at larger organizations.

But the good news is that effective internal controls don’t have to be complicated or expensive.

The best way for your business to battle fraud is to create a segregation of duties framework. With segregation of duties, you split the responsibilities for each of three different areas: authorization of cash expenditures, physical custody of cash and reconciliation of cash expenditures to different individuals.

Here’s what you need to know:

Segregate cash disbursements. Payment responsibilities should never rest with a single individual. One employee should review and approve vendor bills, while another processes the payment. The person preparing checks should not have authority to sign them. Electronic payments and fund transfers require similar separation – one person initiates the transaction, another reviews the details, and a separate, authorized manager gives final approval. The same layered approach applies to purchase orders: one team member issues or requests the order, another approves it, and payment is released only after proper review. Dividing these duties ensures management has visibility into how funds are spent and significantly reduces the risk of error or misappropriation.

Segregate control of cash. Have an owner or manager occasionally spot check incoming electronic transactions and tie them to the company bank account. If you receive physical checks, have an owner or manager open the mail before passing it on to accounting. That’s one way to detect unusual transactions before they’re recorded in the company books. Alternatively, you might ask someone separate from accounting to open the mail and prepare a deposit slip, or prepare a daily reconciliation of all transactions.

Pay special attention to ACH receipts. Unlike physical checks which leave a paper trail and involve multiple handling steps, ACH payments post directly to a bank account without anyone physically touching the money. This convenience reduces natural oversight points. If the same person has access to online banking and records receipts in the accounting system, errors or intentional misstatements may go undetected.

Segregate reconciliations. For companies with limited resources, a periodic review of bank reconciliations by someone outside of accounting can provide a mitigating control. Non-accounting personnel performing these reviews will need to be trained. They’ll need to understand the risks involved and the types of unusual or unsupported transactions needing further investigation. Cross training staff also helps to ensure continuity of operations when accounting employees take vacations or leave the company. Or better yet, bring in an outside accounting expert to conduct periodic audits of key functions.

Management by wondering around. As an owner, periodically review your bank accounts and the activity in them. Ask questions about transactions that are large. Even if you already know the answer, your team will know you are looking. The same goes with your general ledger. Get access to the ledger and periodically look at the details behind an account or two. You may be surprised what you find. Again, your questions will show your engagement and the randomness of this activity will serve as a simple audit technique.

Segregation of duties can help your company keep track of cash and help prevent theft by an employee before it happens.

Upcoming dates:

March 16
– Due date for partnership and S corporation tax returns (Forms 1065, 1120S)

Reminders
– Organize filing records (1099s, 1098s, W-2s, etc.)
– Begin tax planning for 2026

Understanding Tax Credits vs. Deductions

Tax credits are some of the most valuable tools around to help cut your tax bill. But figuring out how to use these credits on your tax return can get complicated very quickly.

Here’s what you need to know.

Understanding the difference

To help illustrate the difference between a credit and a deduction, here is an example of a single taxpayer making $50,000 in 2025.

Tax Deduction Example: Gee I. Johe earns $50,000 and owes $5,000 in taxes. If you add a $1,000 tax deduction, he’ll decrease his $50,000 income to $49,000, and owe about $4,800 in taxes.

Result: A $1,000 tax deduction decreases Gee’s tax bill by $200, from $5,000 to $4,800.

Tax Credit Example: Now let’s assume Gee has a $1,000 tax credit versus a deduction. Gee’s tax bill decreases from $5,000 to $4,000, while his $50,000 income stays the same.

Result: A $1,000 tax credit decreases your tax bill from $5,000 to $4,000.

In this example, your tax credit is five times as valuable as a tax deduction.

Credits are usually worth more

Credits are generally worth much more than deductions. However there are several hurdles you have to clear before being able to take advantage of a credit.
To illustrate, consider the popular child tax credit.

Hurdle #1: Meet basic qualifications
You can claim a $2,200 tax credit for each qualifying child you have on your 2025 tax return. The good news is that the IRS’s definition of a qualifying child is fairly broad, but there are enough nuances to the definition that Hurdle #1 could get complicated. And then to make matters more complicated…

Hurdle #2: Meet income qualifications
If you make too much money, you can’t claim the credit. If you’re single, head of household or married filing separately, the child tax credit completely goes away if you exceed $240,000 of taxable income. If you’re married filing jointly, the credit disappears above $440,000 of income.

Hurdle #3: Meet income tax qualifications
To claim the entire $2,200 child tax credit, you must owe at least $2,200 of income tax. For example, if you owe $3,000 in taxes and have one child that qualifies for the credit, you can claim the entire $2,200 credit. But if you only owe $1,000 in taxes, the maximum amount of the child tax credit you can claim is $1,700.

Take the tax credit…but get help!

The bottom line is that tax credits are usually more valuable than tax deductions. But tax credits also come with lots of rules that can be confusing.

Please call to schedule a tax planning session to make sure you make the most of the available tax credits for your situation.

Retirement Tips for Every Age

Saving for retirement is not a one size fits all journey, as each stage of life comes with different priorities, pressures, and opportunities.

No matter where you are in your journey, here are savings tips from established financial publications and organizations to consider for every age.

In Your Twenties – Building Early Habits

For many people, this decade is less about large balances and more about establishing patterns. Financial education outlets frequently emphasize the long runway available to younger savers.

Investopedia.com discusses the long term impact of starting early and allowing time to work in your favor.

Common themes during this stage include:

• Developing a regular saving habit, even in small amounts
• Exploring employer sponsored retirement plans, when available
• Learning basic investment concepts over time
• Treating retirement contributions as part of monthly expenses
• Expanding skills and experience that may increase earning potential

In Your Thirties – Adding Structure

As careers and family responsibilities grow, retirement planning often becomes more deliberate.

For example, Charles Schwab provides a decade-by-decade overview of how retirement priorities may shift during this phase of life.

Conversations during this decade often revolve around:

• Reviewing contribution levels as income changes
• Understanding how employer matching programs work
• Paying attention to debt and interest costs
• Considering how lifestyle decisions shape long term finances
• Evaluating career growth or additional income opportunities

In Your Forties – Taking Inventory

Mid-career can be a natural time to assess progress and revisit long term projections. Many financial institutions have programs that address these topics.

Topics frequently discussed include:

• Reviewing current balances alongside projected needs
• Understanding how high interest debt may affect cash flow
• Identifying gaps between current savings and future income goals
• Revisiting contribution levels and investment allocations
• Checking Social Security earnings records for accuracy
• Considering whether new income streams may strengthen retirement readiness

In Your Fifties and Sixties – Focus on the Finish Line

As retirement moves closer, planning conversations often shift toward income timing and lifestyle expectations.

AARP maintains a retirement resource center that covers considerations commonly discussed in the years leading up to retirement.

Areas that frequently come into focus include:

• Continuing to save where possible
• Eliminating or reducing outstanding debt
• Thinking through retirement timelines and income sources
• Factoring healthcare and lifestyle preferences into cost expectations
• Clarifying what retirement may look like day to day

Timeless Principles That Apply at Any Age

No matter where you fall on the timeline, a few core ideas always support progress.

• Automate savings to remove decision fatigue
• Avoid comparing your progress to others with different circumstances
• Revisit your plan occasionally rather than ignoring it entirely
• Focus on what you can control today

The Bottom Line – Start Where You Are

Retirement planning is not about catching up to someone else’s path. It is about making the best decisions you can with the resources you have right now.

Wherever you are starting from, taking action today creates options for tomorrow.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

A little preparation can change the entire tax return experience. In this month’s newsletter, read about how getting organized early with a clear checklist can help you gather the right information and avoid last-minute pressure.

You’ll also learn how spotting easy-to-miss income sources can help you avoid a long and frustrating cleanup later, and how to find and stop paying hidden costs that are all around us.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Reminders

– Organize filing records (1099s, 1098s, W-2s, etc.)
– Begin tax planning for 2026

Your Ultimate Tax Filing Checklist

A smooth tax filing experience starts before your return is prepared. When your information is organized and easy to follow, everything moves faster and feels far less stressful.

This checklist gives you a simple, practical way to gather all your tax information.

• Use last year as your cheat sheet. Start with your most recent tax return. Skim it to remind yourself what showed up last year and what’s likely to appear again. This keeps you from forgetting income sources or hunting for documents you never needed in the first place.
• Lock down the basics first. Confirm names, addresses, Social Security numbers, and bank details. Small errors here can cause outsized delays later, so handle this upfront before you touch anything else.
• Create one home for everything. Pick a single folder, digital or paper. Give every tax-related document one clear landing spot so nothing drifts off and disappears.
• Sort documents by income or expense type. Group forms by what they represent, not who sent them. Keep job income together, side income together, and investment income together. This mirrors how a return is built and makes patterns obvious.
• Capture income that doesn’t come with a form. Write down cash, side gigs, resale activity, or digital payments that didn’t generate official paperwork. If money came in, assume you need to report it on your tax return.
• Pull records that support deductions and credits. Gather mortgage interest, property taxes, charitable donations, medical costs, education expenses, and childcare records. When in doubt, include it with your tax documents.
• Flag big life changes in plain language. Make a short list of what changed last year – new job, move, marriage, divorce, baby, home purchase or sale. These details often drive tax outcomes more than numbers alone.
• Summarize business or side income cleanly. Provide totals instead of a shoebox full of receipts. List income, categorize expenses, include mileage and home office details, and note any estimated payments you made. Clarity here saves real time.
• Label files like a stranger will read them. Name documents so someone else instantly understands them. Include the year and a brief description. Clear labels prevent follow-up questions and missing pieces. Note what’s missing instead of guessing. If a document hasn’t arrived yet, say so. Don’t estimate, round, or substitute last year’s numbers. Accuracy beats speed every time.
• Write down questions outside the documents. Collect your questions in one place rather than scattering comments throughout your files. This keeps the review process clean and focused.
• Do one final scan before. Does everything make sense? If yes, you’re ready to hand it off with confidence.

A little preparation goes a long way. When you organize your information clearly, your tax return can be prepared more efficiently, reviewed more thoroughly, and filed with greater confidence.

The Hidden Costs All Around Us – and How to Stop Paying Them

It’s tough out there. The cost of everything is going up, from healthcare to groceries. Plus the practice of companies using monthly fees as annuity income has become overwhelming.

In an effort to give you ideas and tips to cut costs, here are some common areas that are ripe for saving money.

Hidden cost #1: The habit of convenience spending

• What it looks like. Convenience spending is the quick delivered meal, the delivery fee, and the upgrade that costs you more money.
• The hidden cost. The real cost comes from repetition. Convenience stops being a treat and becomes the default, turning small extras into a steady drain over time.
• What to do about it. First identify when and what you are spending it on. Then decide: Want to save a lot? Stop the practice of convenience spending. Increase savings but still leave room for spending? Keep the convenience, but be aware and selective.

Hidden cost #2: Interest expense

• What it looks like. Not paying your credit card bill in its entirety. Stretching the term of an auto loan or student loan to lower the monthly payment. Only paying the regular mortgage payment or paying too high an interest rate. Each example feels normal, but the common thread is paying extra interest over time.
• The hidden cost. Banks win. You lose. Interest quietly increases the price of everything you buy. Don’t believe it? Look at your statements. Credit cards are now legally required to tell you how much you will spend in interest if you only make the minimum payments. Mortgage statements show you how much each payment is used for interest and how much actually reduces your loan balance.
• What to do about it. Shorten the timeline. NEVER carry a balance on a credit card from month to month. Keep paying extra principal on your loans with the goal of always paying more principal each month than interest.

Hidden cost #3: Cheap now, expensive later

• What it looks like. Buying the cheaper option because it gets the job done today.
• The hidden cost. The money isn’t lost all at once. It leaks out through repeat purchases, repairs, and frustration. Over time, the cheap option often costs more than buying something solid once.
• What to do about it. Ask how long you expect to own the item and how often you’ll use it. Fewer purchases, chosen carefully, usually cost less than replacing the same thing again and again.

Hidden cost #4: Buying new or poorly rated vehicle

• What is looks like. Needing to own a new car, when used will do. Taking out a car loan that exceeds 75% of the vehicle trade-in value (after you drive it off the lot.) Not checking the vehicle repair rating or the purchased car’s repair history before you buy. Falling for high-tech items, that have high repair costs.
• The hidden cost. If you get in an accident with your car, you could find yourself trapped. Your car loan could easily surpass the value of the vehicle. Poor repair history vehicles will lose their value much more quickly than others. High tech repairs may only be available at a dealership with high markups.
• What to do about it. When possible, buy targeted vehicles with a great repair record, both as a brand and the specific vehicle you buy. Favor models with a reputation for repairability. Just as important, find a mechanic who understands these constraints and is willing to look for alternatives, and advocate for the least expensive repair that actually solves the problem.

Easy-to-Miss Income Sources That Can Cause Tax Headaches Later

The IRS is getting pretty good at comparing your income reports against what you claim on your tax return. The result is a notice in the mail called a correspondence audit.If you get one, it unfortunately takes a long time to straighten it out.

In an effort to help you avoid this hassle, here are several easy-to-miss income sources and some ideas to help capture this IRS reported income when filing your tax return. Easy-to-overlook income sources.

• Side gigs and freelance work. Extra projects and informal work sometimes feel more like favors than income. The IRS, though, still generally views any paid work as taxable. The upside is that these activities often come with deductible expenses, which can help offset the income when they are tracked from the start.
• Selling items online. Online selling frequently starts as a hobby or decluttering your living space. But pay attention when your sales turn profitable or more regular. Knowing where this line is can help you decide when you need to step up your recordkeeping.
• Small amounts from accounts and apps. Taking a moment to notice interest, bonuses, or app payments helps ensure these amounts are accounted for before tax time, when they are more likely to be flagged through automated reporting by the IRS and other tax authorities.
• Refunds and reimbursements. Money coming back to you often feels like a non-event. Keeping brief notes about refunds and reimbursements makes it easier to confirm whether they’re taxable and ensures they’re treated correctly if questions arise later.
• Insurance payouts and settlements. Insurance payments usually need a review. Understanding what the payment covers – replacement costs, lost income, or another purpose – helps determine how it should be reported, if at all.
• Unemployment compensation. Keep all records. This one is often confusing because during COVID, the federal government temporarily made this income tax-free. It is no longer the case.

What you can do

To reduce the chances of missing these types of income, the following simple habits can make a meaningful difference:

• Keep a running list of income sources. When money comes from outside a regular paycheck, make a quick note of it. A short entry on your phone or a simple spreadsheet creates a reliable reference later and reduces the chance of last-minute guesswork.
• Save documents as you receive them. Tax forms, payout summaries, and transaction statements often arrive at different times. Placing them in a single digital or physical folder keeps everything in one place, so nothing is missed when you are ready to file.
• Look at spam and junk email folders. Many vendors are now sending 1099s digitally via email. If they get tagged as spam email you may never see it. So keep a list and if you are missing a form, check these folders.
• Review accounts before preparing. Before your tax return is prepared, scan your bank accounts, payment apps, and online platforms for deposits that may not feel like income. A quick review can catch items that didn’t generate an official tax form but still need to be reported.

Don’t Overlook Renters Insurance

Do you rent an apartment or condo? If so, do you have renters insurance to protect your belongings and to cover you against liability claims?

A surprising number of renters don’t bother with insurance. Some assume they’re covered by their landlord’s policy. Wrong! Usually that covers only damage to the building and liability claims against the landlord. Others say their belongings aren’t worth enough to justify the cost. But add up how much it would cost you to replace everything you might lose in a fire and you’ll be surprised.

In most cases, the cost of insurance is a small price to pay for the protection you’ll receive

Typical protection

Renters insurance, sometimes called a tenant policy, typically protects against three things:

1. Loss or damage to your personal belongings from fire, theft, etc.
2. Liability claims from someone injured in your apartment
3. The cost of temporary living expenses if your apartment is made uninhabitable by some catastrophe

When you buy renters insurance, you’ll have to decide the amount and type of coverage. Your agent can help you estimate the value of your belongings.

You can either choose actual cash value coverage or replacement value coverage.

The first pays you the estimated value of items at the time of loss, based on their age and condition. The second pays the cost of replacing items with equivalent new items, up to the maximum value of coverage.

The second method will pay you more, but obviously the premium will be higher. Try to identify anything of special value, such as expensive jewelry or electronic equipment. You may need a policy rider to cover the full amount of these items.

A few tips:

• Bundle for discounts. You may receive a discount if you buy your renters insurance and car insurance from the same company.
• Save with roommates. If you have a long-term roommate, ask if you can take out a joint policy instead of two separate ones.
• Know when and where kids are covered. If you have children living away at college, check whether they’re covered under your homeowners policy. Once they leave college, though, they’ll need their own insurance.
• Take inventory. Create a thorough inventory of your belongings, recording the model and serial number of any equipment and take plenty of photos. This could be invaluable to support your claim if you ever have a loss.

Simple Ideas to Help Your Small Business

Here are several ideas to help your business grow and thrive.

• Understand your cash flow. One of the biggest causes of business failure is lack of understanding cash flow. At the end of the day, you need enough cash to pay your vendors and your employees. If you run a seasonal business you understand this challenge. The high season sales harvest needs to be ample enough to support you during the slow non-seasonal periods.
  Recommendation: Create a 12-month rolling forecast of revenue and expenses to help understand your cash needs.
• Know your pressure points. When looking at your business, there are a few big items that drive your business success. Do you know the top four drivers of your financial success or failure? By staying focused on the key drivers of your business, success will be easier to come by.
  Recommendation: Look at last year’s tax return and identify the key financial drivers of your business. Do the same thing with your day-to-day operations and staffing.
• Inventory matters. If your business sells physical product, you need a good inventory management system. This system doesn’t have to be complex, it just needs to help you keep control of your inventory. Cash turned into inventory that becomes stuck as inventory can create a major cash flow problem.
  Recommendation: Develop an inventory system with periodic counts to ensure you do not have shrink or theft issues, and that can help identify when you need to take action to liquidate old inventory.
• Know your customers. Who are your current customers? Are there enough of them? Where can you get more of them? How loyal are they? Are they happy? Several large customers can drive your company’s growth or create tremendous risk should they take their business to a competitor.
  Recommendation: Know who your target audience is and then cater your business toward them and what they are looking for in your offerings.
• Know your point of difference. Once you know who your target customer is, understand why they buy your product or service. What makes you different from other businesses selling a similar item?
  Recommendation: If you don’t know what makes your business better than others, ask your key customers. They will tell you. Then take advantage of this information to generate new customers.
• Develop a great support team. Successful small business owners know they cannot do it all themselves. Do you have a good group of support professionals helping you? You need accounting, tax, legal, insurance, and employment help along with your traditional suppliers.
  Recommendation: Conduct an annual review of your resources. Be prepared to review your suppliers and make improvements where necessary.

Sometimes focusing on a few basic ideas can help improve your business’s outlook.

Please call if you wish to discuss your situation.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

Happy New Year!

With the holiday’s behind us, it’s time to summarize last year’s activities and prepare to file your 2025 tax return. So as you wait to receive the needed documentation, why not consider squeezing in an income tax-savings New Year’s resolution? This month’s newsletter outlines three to consider.

You’ll also find guidance on staying organized to get ready for filing your 2025 tax return. This is even more important with recent tax law changes including the tax-free tips and overtime benefits. There are also articles outlining five practical money ideas anyone can use plus a look at technology changes that are beginning to show up in everyday life.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Upcoming Dates & Reminders

Upcoming dates:

January 15
– 4th quarter installment of 2025 estimated income tax is due for individuals

January 19
– Martin Luther King Jr. Day

Begin tax filing for 2025

– Organize tax documents (W-2s, 1099s, 1098s and other records)
– Schedule tax appointment for document drop off or meeting

Begin tax planning for 2026

– Create a budget
– Adjust your withholdings
– Rebalance investment portfolios

Happy New Year…Consider These Tax Resolution Ideas

Every January brings a familiar ritual. We promise to eat better, exercise more, and finally organize the garage.

These are fine goals, but if you want a resolution that delivers real, measurable value, fewer taxes paid over your lifetime is about as concrete as it gets. Here are three possible resolutions to consider:

Resolution #1: Maximize use of your retirement accounts

One of the simplest ways to lower your current tax bill is by maximizing contributions to 401(k)s, IRAs and similar accounts. You can also defer taxes by maximizing contributions into 401(k)s and Traditional IRAs or reduce your taxes in the future by considering Roth accounts. Some other great tips:

• Ensure you are taking advantage of catch-up contributions.
• Always contribute to take advantage of any employer matching programs.
• Take full advantage of SEP IRAs as a small business owner.
• Look to create additional accounts when possible through spousal retirement accounts or youth accounts when children have earned income.

This resolution can be rich with tax saving ideas.

Resolution #2: I will keep my tax records organized.

If tax season feels like a scavenger hunt through old emails and crumpled receipts, organization should be high on your list. Remember, if you can’t support a deduction, you can’t take it. This is especially true if you run a small business, if you want to take advantage of things like the new $1,000 ($2,000 joint) charitable contribution deduction, or claim the teacher out-of-pocket expense deduction. The same is true with educational expenses.

Resolution #3: Commit to paying health costs tax efficiently

A health savings account (HSA) is one of the most powerful tax saving tools in the tax code. Contributions are often deductible, with earnings on funds in the account usually tax-free. Plus qualified medical withdrawals are also tax-free. So try to maximize your eligible donation into your HSA each year, including catch-up contributions. Then invest your unused funds to grow tax-free. Leaving the HSA untouched allows it to function like a stealth retirement account. Years down the road, those funds can be used for healthcare costs that almost everyone faces, often with significant tax advantages.

Making taxes a year-round conversation

Taxes are not a once-a-year event. Life changes like income shifts, business activity, investments, or family milestones can all affect your strategy.
This year, choose a resolution that quietly compounds, rewards consistency, and pays you back every April.

It’s Tax Time! Ideas to Get Organized

With tax season officially underway, here are several ideas to make filing your return as stress-free as possible:

• Gather your tax information for filing.
  Items you’ll need include K-1s, W-2s, 1099s and other forms you receive from your business, employers, brokers, banks, and others. If you find any errors, contact the issuer immediately to request a corrected copy. And if you have tip or overtime income, be prepared to break this income out to take advantage of tax-free savings as this will not necessarily be broken out on your W-2.
• Organize your records.
  Once you’ve started gathering your information, find a place in your house and put all the documents there as you receive them, or consider scanning documents to store on your computer. You can also take pictures of the documents with your phone as backup. Missing information is one of the biggest reasons filing a tax return becomes delayed.
• Create an April 15th reminder.
  This is the deadline for filing your 2025 individual income tax return, completing gift tax returns, making contributions to a Roth or traditional IRA for 2025, and for paying the first installment of 2026 individual estimated taxes.
• Know the deadlines for business returns.
  If you are a member in a partnership or a shareholder in an S corporation, the deadline for filing business returns for these two entities is March 16th. Calendar-year C corporation tax returns are due by April 15th.
• Review your child’s income.
  Your child may be required to file a 2025 income tax return. A 2025 return is generally required if your child has earned more than $15,750, or has investment income such as dividends, interest, or capital gains that total more than $1,350.
• Contribute to your IRA and HSA.
  You can still make 2025 IRA and HSA contributions through either April 15th or when you file your tax return, whichever date is earlier. The maximum IRA contribution for 2025 is $7,000 ($8,000 if age 50 or older). The maximum HSA contribution is $4,300 for single taxpayers and $8,550 for families.
• Calculate your estimated tax if you need to extend.
  If you file an extension, you’ll want to do a quick calculation to estimate your 2025 tax liability. If you owe Uncle Sam any money, you’ll need to write a check by April 15th even if you do extend.

Raising a Financially Savvy Child

If you have children or grandchildren, you have an opportunity to give them a jump-start on their journey to becoming financially responsible adults.
While teaching your child about money and finances is easier when you start early, it’s never too late to impart your wisdom. Here are some age-relevant suggestions to help develop a financially savvy young adult:

Preschool – Start by using dollar bills and coins to teach them what the value of each is worth.

Even if you don’t get into the exact values, explain that a quarter is worth more than a dime and a dollar is worth more than a quarter. From there, explain that buying things at the store comes down to a choice based on how much money you have (you can’t buy every toy you see!). Also, get them a piggy bank to start saving coins and small bills.

Grade school – Consider starting an allowance and developing a simple spending plan.

Teach them how to read price tags and do comparison shopping. Open a savings account to replace the piggy bank and teach them about interest and the importance of regular saving. Have them participate in family financial discussions about major purchases, vacations and other simple money decisions.

Middle school – Start connecting work with earning money.

Start with activities such as babysitting, mowing lawns or walking dogs. Open a checking account and transition the simple spending plan into a budget to save funds for larger purchases. If you have not already done so, now is a good time to introduce the importance of donating money to a charitable organization or church.

High school – Introduce the concept of net worth.

Help them build their own by identifying their assets along with their current and potential liabilities. Work with them to get a part-time job to start building work experience, or to continue growing a business by marketing for more clients. Add additional expense responsibility by transferring direct accountability for things like gas, lunches and the cost of going out with friends. Introduce investing by explaining stocks, mutual funds, CDs, and IRAs. Talk about financial mistakes and how to deal with them when they happen by using some of your real-life examples. If college is the goal after high school, include them in the financial planning decisions. Tie each of these discussions into how it impacts their net worth.

College – Teach them about borrowing money and all its future implications.

Explain how credit cards can be a good companion to a budget, but warn them about the dangers of mismanagement or not paying the bill in full each month. Discuss the importance of their credit score and how it affects future plans like renting or buying a house. Talk about retirement savings and the importance of building their retirement account.

Knowing about money – how to earn it, use it, invest it, and share it – is a valuable life skill.

Simply talking with your children about its importance is often not enough.

Find simple, age-specific ways to build their financial IQ. A financially savvy child will hopefully lead to a financially wise adult.

Improving the Usefulness of Your Bookkeeping

If you are just starting a business or have been in one for a while, you quickly understand the importance of keeping good records. And as a financial person, having an owner that understands the basics of great bookkeeping makes it so much easier to help that owner understand what those books are telling him or her.
So on that front, presented here are four keystone bookkeeping concepts that are worthy of discussion.

Selecting the proper accounting method.

There are two different methods for recording transactions: cash-basis and accrual-basis. In general, the cash-basis method records a transaction when a payment is made or cash is received, while the accrual-basis method records the transaction upon delivery of the good or service, either as a sale or as a cost. Small businesses often use cash-basis as it is easier to track. Larger businesses who buy from vendors on account (accounts payable) generally use accrual-basis accounting.The key is to understand what method your business uses and whether it uses the same method for your books as it does on your tax return. The IRS allows the cash basis method for tax purposes for the majority of small business, but once a choice is made, it can only be changed with proper reporting to the IRS.

Things to consider: How important is the matching principal to your business? This aligns revenue with related costs to get a clean picture of interim profitability. If this is important, accrual might be best. What about the importance of cash flow? If high, using cash basis will get you answers more quickly.

Create an account structure that fits the company.

The main types of accounts in a business are assets, liabilities, equity, income, cost of goods sold, and other expenses. Each group will often have numerous accounts and sub-accounts associated with them. Having the right mix of accounts, created and grouped in an organized fashion, will help you properly classify transactions and prepare usable financial statements.

Things to consider: If there is little activity in an account, consider summarizing it with other like items. Know why you need an account before you create it…to make business decisions? to compare to last year? for tax reasons?

Enter accurate and timely transactions.

The value your data provides is dependent on each transaction being recorded correctly and on time. Entering transactions in the wrong account can cause major issues down the road. Financial reporting that is delayed can hide problems that need immediate attention. Some transactions are relatively straightforward, and some are more complex (like payroll, accruals, and deferrals).

Things to consider: Conduct a flash report the first day of each month. This will get the ball rolling.

Establish financial statements for decision-making.

The purpose of your statements should be to help you run your business and make decisions. For the bank, it’s to see if you are a great risk to lend money. To the government, it’s to pay taxes. Or for the prospective buyer, to value your company’s worth.

Things to consider: Really understand the three key financial statements (income statement, balance sheet, and statement of cash flows). Know how they inter-relate and understand how to read them to make better decisions. What key accounts are the drivers of your business? What is the bank looking at?

If properly executed, your bookkeeping system will create accurate financial statements that can be used to make key financial decisions.

Feel free to call with any questions or to discuss bookkeeping solutions for your business.

Five Great Money Tips

Creating a sound financial foundation for you and your family is a great goal.

Here are five thoughts that may help.

Pay yourself first.

Treat saving money with the same care you pay your bills. Take a percentage of everything you earn and save it. Using this technique can help build your savings balance and keep you from living paycheck to paycheck.

Know and use the Rule of 72.

You can roughly calculate the number of years compound interest will take to double your money using the Rule of 72. Do this by dividing 72 by your rate of return to estimate how long it takes to double your money. For example, 10% interest will double an investment in 7.2 years; investments with an 8% return will double in nine years. Use this concept to understand the power of saving and investing.

Use savings versus debt for purchases.

Unpaid debt is like compound interest but in reverse. For instance, using a credit card with a 12% interest rate to pay $1,500 for home appliances costs over $2,000 if paid back over 5 years. The result is that you have to work harder and earn more to pay for the items you purchase. A better idea may be to save and then buy your dream item.

Understand amortization.

When a bank loans you money, it gives you a specific interest rate and a set number of years to pay it back. Each payment you make contains interest as well as a reduction of the amount owed, called principal. Most of the interest payments are front-loaded, while the last few payments are virtually all principal. Making additional principal payments at the beginning of the loan’s term will decrease the amount of interest you pay to the bank and help you pay off the loan more quickly.

Taxes are complex and require help.

Tax laws are complicated. They are made even more complex when the rules change, like this year!. Even worse, the IRS is not in the job of telling you when you forget to take a deduction. The best way to stay out of the IRS spotlight AND minimize your taxes is to ask for help.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

Plenty of new tax laws are set to land in 2026. This issue gives you an easy way to size them up, along with several practical moves to help make filing your 2025 tax return feel a whole lot easier.

Also read how year-end is a good time to handle a few financial tasks that can trim taxes and set you up for a steady start to the new year. And with prices still climbing across everyday items, we’ve included straightforward tips to help your budget stretch a bit further.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Upcoming Dates

Dec. 14 to Dec. 22
– Hanukkah

December 25
– Christmas Day

December 26
– Kwanzaa begins

January 15
– 4th Quarter Estimated Payments Due

Take final year-end actions

– Charitable contributions, other itemized deductions
– Capital gains/losses
– 401(k) contributions
– Dividend income

Getting Ready For Taxes

This year AND next!

Plenty of tax changes are lining up as the calendar turns toward 2026, and knowing what’s coming can help you stay a step ahead. Before then, there’s also several moves to make filing your 2025 tax return as easy as possible.

Preparing to file your 2025 tax return

• Gather records to support deductions for no tax on tips and no tax on overtime. Review the approved occupations for qualified tips and confirm the amount of this benefit you expect to claim in 2025. You will need proof of these claimed amounts. The same holds true for overtime pay. Employers are not required to issue W-2s or 1099s with this information in 2025, but they should provide you with the necessary confirmation of the dollar amounts. Compare these employer-provided amounts with your records to ensure they match prior to filing your tax return.
• Look for new Form 1099-DA. If you own cryptocurrency or other digital assets, you may see this new form. Starting with the 2025 tax year, exchanges and brokers must report certain cryptocurrency and digital asset transactions, so you should track cost basis, sale dates, and wallets used to avoid mismatches or questions from the IRS.
• 1099-Ks may still be issued. You shouldn’t see a Form 1099-K from a payment processor such as PayPal or Venmo unless you have 200 or more transactions amounting in more than $20,000 in payments from the processor. But because of the many tax law changes in this area you may still receive a Form 1099-K in error. If you receive one, don’t throw it away! Include it with your other tax documents for proper reporting on your 2025 tax return.
• Review IRA and HSA accounts. If you have an IRA or HSA account, you can make 2025 contributions up until either April 15, 2026 or the date you file your return, whichever is earlier.

What’s new in 2026

• Above-the-line charitable contributions. You can deduct $1,000 of charitable contributions if single or $2,000 if filing jointly. This is available to you whether you use the standard deduction or itemize your deductions. There’s also the introduction of a 0.5% floor for itemizing charitable contributions.
• Itemized deduction phaseout is back. If you’re in the top 37% tax bracket, your itemized deductions could be reduced. This phaseout of deductions is being re-introduced beginning in 2026.
• Gamblers take a loss. Losses from wagering transactions are now limited to 90% of such losses. Under the previous law you could claim deductions up to the amount of your winnings. For example, if you won $10,000 and incurred $15,000 in losses over the course of a tax year, you could deduct $10,000 using the previous law. Under the new law you can only deduct 90% of your losses, or $9,000 in this example.
• Mortgage insurance premiums can be reported as an itemized deduction.
• Elimination of many energy credits. This includes the credit for purchasing electric vehicles after September 30, 2025 and the elimination of many residential energy efficient purchase credits at the end of 2025. So plan accordingly.

Your Year-End Tax & Financial Checklist

Year-end is more than just wrapping gifts and planning celebrations – it’s the last chance to make smart money moves that can reduce taxes and set the stage for a confident start to the new year.

Use this checklist to help cover the essentials.

• Check tax withholdings. Do a quick check to see if your paycheck withholdings will match your tax liability. If you had a big refund or owed a large amount last year, you can anticipate the same will happen this year. So if you have not already done so, adjust your W-4 so you’re closer to even. Then after filing your 2025 tax return, revisit your withholdings and make any fine tune adjustments for the 2026 tax year.
• Max out tax-advantaged accounts. If you have a Health Savings Account, try to max out your annual contribution limits. This serves a dual purpose: paying for health expenses with pre-tax dollars PLUS any unspent contributions can be invested and used for future needs. Next take a look at retirement accounts like 401(k)s, 403(b)s, or IRAs before the year closes and contribute as much as possible up to the annual limits.
• Use up FSAs. Flexible Spending Accounts often have use-it-or-lose-it rules. So check your balance and submit reimbursements for eligible medical or dependent care expenses. Some plans offer a short grace period or a limited carryover, so know your deadlines to avoid forfeiting money.
• Plan for life changes. Marriage, divorce, a new child, or a change in employment can all alter your tax situation. Be prepared for any changes these life events may cause.
• Clarify dependency claims. If family members provide or receive support, coordinate who will claim dependents on tax returns. This helps prevent IRS mismatches and ensures valuable credits like the Child Tax Credit go to the right filer.
• Harvest investment losses (or gains). Review your portfolio to realize losses that can offset capital gains. If your income is low this year, you might even be able to harvest gains at a lower tax rate (maybe even 0%!). Be careful to avoid wash-sale rules.
• Review your budget and spending. Look back over your expenses for 2025 to spot trends. Did you meet your savings goals? Were there surprise costs that could be planned for next time? Adjust your budget now while memories are fresh.
• Check your emergency fund. Aim to keep three to six months of living expenses in a readily accessible account. If you’ve dipped into it this year, make a plan to replenish it, and review whether inflation or lifestyle changes mean you need a larger cushion.
• Review insurance coverage. Health, life, home, and auto policies all deserve a fresh look. Confirm coverage levels still fit your needs, compare premiums, and check that beneficiaries are current.
• Update beneficiaries and legal documents. Wills, trusts, and powers of attorney can become outdated quickly. Confirm that beneficiaries listed on retirement accounts and life insurance policies align with your estate plans.
• Talk as a family. Finally, gather around the table for an open conversation about finances. Discuss goals, responsibilities, and plans for the coming year. Shared understanding builds financial strength, which is the best gift you can give each other before the year ends.

Prep Now, Stress Less Later: Everyday Readiness for Any Storm

Blizzards aren’t the only storms on the menu as we head into the winter season.

Storms of all types often slip in small surprises, such as cancelled plans, brief power losses, or water issues that disrupt your day.

These moments can reveal where daily habits and budgets feel a bit thin. Here are some ideas to help keep your family prepared when these unwanted surprises take place.

Idea #1: Build a short-term cushion

An emergency fund offers to soften the blow of unexpected events from weather to home repairs. So create your three to six month emergency fund AND then if possible create a special emergency fund to address that surprise bill or event. Remember, these moments can create unusual expenses like takeout, extra childcare, or a rush for basic supplies.

Idea #2: Keep practical supplies on hand

A few shelf-stable meals, working batteries, candles, a backup charger, clean water, and comfortable layers can make a short power outage easier. Stock items you will actually use for a day or two at home, not specialized gear most people never touch. Those in hurricane prone areas know the drill, but the same preparedness can be used by everyone.

Idea #3: Think ahead: Power and water interruptions

When the lights go out or the water slows to a trickle, the real strain can show up in the costs that follow. A short outage can force a change in plans such as shifting work hours, rearranging childcare, or tossing out spoiled food. You may also need a Plan B if the air conditioning goes out during summer or the heat takes a lunch break during the winter. Even simple tasks like cooking, bathing, or keeping pets comfortable can turn into small, repeated expenses.

Idea #4: Tune up your insurance

Review whether your insurance covers common storm-related issues, such as water damage, roof damage, fallen branches, or personal liability if someone is hurt on property you are responsible for. Make sure your deductible still feels right and confirm whether your belongings would be protected if you needed to stay elsewhere for a night or two. Clear answers now can help you avoid surprise expenses later.

Turn storm prep into everyday resilience. General storm readiness can ease both worry and costs when your routine gets knocked off balance. Use these ideas to help you move through unexpected disruptions with a little more confidence.

Spend Less with These 5 Money Tips

Rising costs across nearly every kind of product and service have stretched everyone’s budgets, making each dollar feel a little tighter.

Here are some tips to spend less to help offset the effect from these higher prices.

• Pay down high-interest debt. You can start spending less money today by paying down high-interest debt. Data from the Federal Reserve shows people who don’t pay off their credit card balance each month pay an average interest rate of 22.83%. For a monthly credit card balance of $500, this interest expense costs you $9.51 a month, or just over $114 a year.
• Revisit your subscriptions. Write down how many monthly subscriptions you’re paying for, then add up the monthly cost. Then ask yourself the following questions: Can you do without some of these subscriptions? Can you cut the cost of some of these subscriptions? Are there some with overlapping benefits? Maybe you’ll discover a subscription you completely forgot about. You don’t have to cancel all of them, but getting rid of just a few can help you spend less each month.
• Shop around for insurance. Loyalty to an insurance company doesn’t always pay off. Consider shopping around and comparing rates for homeowners, auto, & umbrella insurance, along with other insurance coverage you may have.
• Eat at home. Limit how often you dine out or stop for take-out. Your wallet will thank you! According to data from the Bureau of Labor Statistics, overall food spending was up 6.9% in 2023 (the latest year data was available), partly driven by an 8.1% increase in food spending away from home.
• Start using a budget. Finally, spend less by creating a written monthly budget and sticking to it. Find a budgeting app that you like the look and feel of, then create a budget within that app to help you decide how much to spend each month in various categories. Once the budget has been created, be sure to keep it updated throughout the month, instead of waiting until the last week to get it up-to-date.

The cost of everything may have skyrocketed, but you still have at least some control over where your money goes each month.

Consider these steps to cut your spending, and you may be surprised at how much you save.

Ingredients of a Successful Business Partnership

Like a bundle of sticks, good business partners support each other and are less likely to crack under strain together than on their own. In fact, companies with multiple owners have a stronger chance of surviving their first five years than sole proprietorships, according to U.S. Small Business Administration data.

Yet sole proprietorships are more common than partnerships, making up more than 70 percent of all businesses. That’s because while good partnerships are strong, they can be a challenge to successfully get off the ground.

Here are some of the ingredients that good business partnerships require:

• A shared vision. Business partnerships need a shared vision. If there are differences in vision, make an honest effort to find common ground. If you want to start a restaurant, and your partner envisions a fine dining experience with French cuisine while you want an American bistro, you’re going to be disagreeing over everything from pricing and marketing to hiring and décor.
• Compatible strengths. Different people bring different skills and personalities to a business. There is no stronger glue to hold a business partnership together than when partners need and rely on each other’s abilities. Suppose one person is great at accounting and inventory management, and another is a natural at sales and marketing. Each is free to focus on what they are good at and can appreciate that their partner will pick up the slack in the areas where they are weak.
• Defined roles and limitations. Before going into business, outline who will have what responsibilities. Agree on which things need consensus and which do not. Having this understanding up front will help resolve future disagreements. Outlining the limits of each person’s role not only avoids conflict, it also identifies where you need to hire outside expertise to fill a skill gap in your partnership.
• A conflict resolution strategy. Conflict is bound to arise even if the fundamentals of your partnership are strong. Set up a routine for resolving conflicts. Start with a schedule for frequent communication between partners. Allow each person to discuss issues without judgment. If compromise is still difficult after a discussion, it helps to have someone who can be a neutral arbiter, such as a trusted employee or consultant.
• A goal-setting system. Create a system to set individual goals as well as business goals. Regularly meet together and set your goals, the steps needed to achieve them, who needs to take the next action step, and the expected date of completion.
• An exit strategy. It’s often easier to get into business with a partner than to exit when it isn’t working out. Create a buy-sell agreement at the start of your business relationship that outlines how you’ll exit the business and create a fair valuation system to pay the exiting owner. Neither the selling partner nor the buying partner want to feel taken advantage of during an ownership transition.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

As 2025 starts to wind down, now’s your chance to make some strategic moves that could pay off well into next year. In this month’s newsletter, we’re focusing on key actions that can sharpen your finances as we head into the final few months of the year.

First up: a final tax planning review checklist to help you spot any last-minute opportunities to reduce your 2025 tax bill. We also break down the latest Social Security cost-of-living adjustments and how they might impact your income. Also learn about five essential financial terms that can give you an edge with managing your money.

Finally, we take a look at the rise of the DIY economy and why more people are choosing to fix, make, and create instead of just buy, and how you can be part of this movement.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

Upcoming Dates

Reminder

– Conduct year-end tax and financial planning
– 2026 Social Security changes announced.

Still Time to Reduce Any Tax Surprises!

Consider conducting a final tax planning review now to see if you can still take actions to minimize your taxes this year.

Here are some ideas to get you started.

Review your income. Begin by determining how your income this year will compare to last year. Since tax rates are the same, this is a good initial indicator of your potential tax obligation. However, if your income is rising, more of your income could be subject to a higher tax rate. This higher income could also trigger phaseouts that will prevent you from taking advantage of certain deductions or tax credits formerly available to you.

Examine life changes. Review any key events over the past year that may have potential tax implications. Here are some common examples:

• Purchasing or selling a home
• Refinancing or adding a new mortgage
• Getting married or divorced
• Incurring large medical expenses
• Changing jobs
• Welcoming a baby

Identify what tax changes may impact you. There were lots of changes this year thanks to a new tax bill passed this summer. Here are some of the more important changes to be aware of:

• Up to $25,000 of tip income can be excluded from income
• Up to $12,500 of overtime income ($25,000 for married couples) can be excluded from income
• Increase in the standard deduction
• New $6,000 senior citizen deduction
• Child tax credit is increased to $2,200
• State and local tax deduction is increased to $40,000

Manage your retirement. One of the best ways to reduce your taxable income is to use tax beneficial retirement programs. So now is a good time to review your retirement account funding options. If you are not taking full advantage of the accounts available to you, there is still time to make adjustments.

Look into credits. There are a variety of tax credits available to most taxpayers. Spend some time reviewing the most common ones to ensure your tax plan takes advantage of them. Here are some worth reviewing:

• Child Tax Credit
• Earned Income Tax Credit
• Premium Tax Credit
• Adoption Credit
• Elderly and Disabled Credit
• Educational Credits (Lifetime Learning Credit and American Opportunity Tax Credit)

Avoid surprises. Your goal right now is to try and avoid any unwanted surprises when you file your tax return. It’s also better to identify the need for a review now versus at the end of the year when time is running out. And remember, you are not required to be a tax expert. Use the tips here to determine if a review of your situation is warranted and please call if you have any questions about your tax circumstances.

Frugality vs. Free-Spending: Finding Your Financial Sweet Spot

Money has a way of testing balance. Lean too far toward penny-pinching and life feels tight and restricted. Tip the other way into carefree spending and it’s easy to lose financial footing.

Here are some practical tips to help find a healthy balance.

Two lenses for seeing money

Most of us have a mix of both frugality and spendthrift habits, but knowing what each one looks like makes it easier to spot where they show up in spending habits.

• Frugality is about being intentional with your money. A frugal person budgets, prioritizes spending on what matters, and looks for ways to stretch a dollar without sacrificing value.
• A spendthrift, on the other hand, tends to spend freely, often without a plan. This can lead to splurging or buying on impulse, or prioritizing short-term enjoyment over long-term financial stability.

Counterpoint to frugality: Why it’s ok to spend money

Being frugal doesn’t mean you never spend. In fact, spending wisely within a budget is part of living well. It keeps life balanced, enjoyable, and sustainable. Here’s why:

• Budgeting allows for enjoyment. A budget isn’t just about bills and savings. It should also include money to freely spend, whether it’s for dining out, hobbies, or travel. Planning for enjoyment makes it guilt-free.
• Quality can save money in the long run. Sometimes spending more upfront, such as on a durable appliance, a reliable car, or quality shoes, is actually more frugal than constantly replacing cheaper alternatives.
• Experiences enrich your life. Memories with family and friends, or investments in self-growth like education, often outweigh the temporary satisfaction of holding onto every dollar.

Signs you’re leaning too spendthrift

Overspending can creep up without you realizing it. Here are a few signs that you might be too spendthrift:

• You catch yourself making spur-of-the-moment purchases instead of following a spending plan.
• You carry a credit card balance from month to month.
• Your checking account feels like a mystery ride, swinging from full to empty and leaving you wondering where the money went.
• You tend to chase the fun stuff first, wants over needs, splurges over basics.
• You make a good income, yet your savings account never seems to grow.

Finding the sweet spot

It is possible to find a balance. Here’s some ideas to keep your financial footing.

• Create a values-based budget. Identify what matters most to you (travel, fitness, education, family time) and allocate money toward those things without letting extras derail your goals.
• Use the 50/30/20 rule. Spend 50% of your income on needs, 30% on wants, and 20% on savings & investing. This helps control overspending while leaving room for fun.
• Think before spending. Before making a major purchase wait at least 48 hours. Ask yourself Does this align with my priorities, or Is it just impulse?
• Think in seasons, not seconds. Frugality is planting seeds for tomorrow, while spendthrift habits can leave the soil barren.

Remember, at the end of the day, money is just a tool. Use it wisely, and it can help you build a life that feels secure and rewarding.

5 Financial Terms Everyone Should Know

Money impacts nearly every part of life. Whether you’re just starting your career, running a household, or trying to grow your savings, understanding a few key terms can give you a real advantage.

Here are 5 financial terms that you should understand to help better manage your money

1) Net Worth = Assets – Liabilities

What it is: Net worth is the bottom line of your financial life. It’s what you own (assets) minus what you owe others (liabilities). The result of this math is your net worth.

Why it matters: Forget income for a second. Net worth is the real measure of how well you’re doing financially speaking. You can make six figures and still be broke if you’re drowning in debt. Tracking net worth shows whether you’re moving forward, stuck in place, or sliding backwards.

Planning tip: Watch your net worth like a financial GPS. Check in regularly. If it’s not growing, it’s time to rethink how you’re spending, saving, or investing. Consider creating this calculation at the beginning of each year, then compare it over time.

2) Compound Interest

What it is: Compound interest is like a money snowball. You earn interest not just on your original cash, but also on the interest on the interest that was made in previous time periods. It’s growth feeding on growth.

Why it matters: This is how small savings turn into serious wealth. Compound interest doesn’t just add, it multiplies. It’s the silent force behind retirement accounts, savings plans, and long-term investments. The sooner you start, the harder it works.

Planning tip: Start understanding and applying compounding NOW! It works in a bank’s favor with mortgages and credit card debt. It works in your favor with savings and retirement accounts. Actively manage it. Search bank accounts that pay reasonable interest (most don’t!). Maximize your retirement contributions. Make extra payments on credit card debt and loans like your mortgage. Even a few dollars invested early can outpace thousands invested later. Time isn’t just money, it’s compounding!

3) Liquidity

What it is: Liquidity is all about access. It’s how quickly you can turn an asset into spendable cash. A $100 bill? Instantly liquid. A house? Not so much. It takes time and effort to sell and turn a home into cash.

Why it matters: When life throws a curveball, you want money as soon as possible, not stuck in a slow-moving investment. Liquid assets give you financial agility, which is essential during emergencies or unexpected expenses.

Planning tip: Keep an emergency fund in something ultra-liquid like a savings account. That way, when things get rough, you’re not forced to sell stocks or real estate at the worst possible time.

4) Debt-to-Equity Ratio (DTE) = Total Personal Debt / Personal Net Worth

What it is: DTE compares how much debt you have to how much you own outright. Your equity is your net worth (see above), which is what’s left after subtracting your debts from your assets.

Why it matters: This number tells you if you’re living on solid ground or skating on financial thin ice. A high DTE means debt is doing the heavy lifting in your life, which is typically risky. A low DTE means you actually own most of what you have.

Planning tip: Track your DTE like a financial vital sign. Aim to lower it over time by paying down debt and building assets.

5) Loan-to-Value Ratio (LTV) = Loan Balance / Current Value of the Asset

What it is: LTV is how much you owe on a loan compared to what the asset (usually a home or a vehicle) is currently worth.

Why it matters: Lenders look at LTV to size up their risk. A low LTV means more equity and less risk for the lender – you’re likely to get better interest rates. A high LTV means you’ve borrowed most of the asset’s value, which can mean higher rates, extra fees, or even being denied a loan

But LTV isn’t just a bank’s problem. It’s yours, too. A high LTV means you’ve got little skin in the game. If prices drop or something goes wrong (like a vehicle getting totaled), you could owe more than the asset is worth. That’s called being underwater, and no one wants to drown in debt.

Planning tip: ALWAYS keep your LTV under 80%. 50% is a safer target. The more equity you build, the more control and options you have, whether you’re refinancing, selling, or just sleeping better at night.

Financial literacy isn’t about knowing everything. It’s about understanding the basics well enough to make smart decisions.

These five terms are your starting blocks. Get familiar with them and you’ll be able to build a stronger financial future.

Year-End Tax Planning Tips for Your Business

As 2025 winds down, here are some ideas to help you prepare for filing your upcoming tax return:

Informational returns. Identify all vendors who require a 1099-MISC and a 1099-NEC. Obtain tax identification numbers (TINs) for each of these vendors if you have not already done so.

Form 1099-K planning. Consider labeling business and personal accounts separately on platforms like Venmo and PayPal. Mixing funds could cause reporting errors, especially as platforms enhance their 1099-K tracking capabilities.

Be prepared for overtime and tip headaches. While 2025 is a transition year before the tax-free tip and overtime income must be reported on reformatted W-2s and 1099s, your employees still need to prove their deduction! So be prepared to track both tips and overtime pay from your payroll system.

Shifting income and expenses. Consider accelerating income, or deferring earnings, based on profit projections.

Separation of expenses. Review business accounts to ensure personal expenses are not present. Reimburse the business for any expenses discovered during this review.

Create expense reports. Having expense reports with supporting invoices and business credit card statements with corresponding invoices will help substantiate your deductions in the event of an audit.

Fixed asset planning. Section 179 or bonus depreciation expensing versus traditional depreciation is a great planning tool. If using Section 179, the qualified assets must be placed in service prior to year-end.

Leveraging business meals. Business meals with clients or customers are 50% deductible. Retain the necessary receipts and documentation that note when the meal took place, who attended and the business purpose on each receipt.

Charitable opportunities. Consider any last-minute deductible charitable giving including long-term capital gain stocks.

Cell phone record review. Review your telephone records for qualified business use. While expensing a single landline out of a home office can be difficult to deduct, cell phone use can be documented and deducted for business purposes.

Inventory review. Review your inventory for proper counts and remove obsolete or worthless products. Keep track of the obsolete and worthless amounts for a potential deduction.

Review your receivables. Focus on collection activities and review your uncollectible accounts for possible write-offs.

Review your estimated tax payments. Recap your year-to-date estimated tax payments and compare them to your forecast of full year earnings. Then make your 2025 4th quarter estimated tax payment by January 15, 2026.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.