At Whitaker-Myers Wealth Managers , we are proud to recognize Associate Financial Advisor Clay Reynolds for earning the prestigious Enrolled Agent (EA) designation  from the IRS. This milestone represents Clay’s continued dedication to serving clients with excellence and integrity and expands the depth of tax expertise available to those we serve. As an Enrolled Agent , Clay is now federally authorized to represent taxpayers before the Internal Revenue Service—an accomplishment that requires passing a rigorous three-part examination covering individual and business tax returns, ethics, and IRS procedures. This designation enhances Clay’s already well-rounded skill set, allowing him to help clients navigate increasingly complex financial landscapes with even greater confidence and clarity. Clay understands that truly effective financial planning requires more than just investment recommendations—it requires a tax-smart strategy that helps clients keep more of what they earn. Whether working on Roth conversion strategies, retirement withdrawal planning, or tax-efficient portfolio construction, Clay’s expanded capabilities will allow him to deliver even more value to the families he serves. As an Associate Advisor  and integral member of one of our Dave Ramsey-endorsed SmartVestor Pro teams, Clay brings a heart for service and a passion for teaching. A graduate of Mount Vernon Nazarene University , Clay studied Financial Planning and Business Administration through a CFP® Board-Registered Program. His time at MVNU, where he also competed in cross country and track, helped shape his disciplined, others-first approach to both life and advising. His commitment to ongoing professional development and his growing role at Whitaker-Myers Wealth Managers is a testament to the culture of excellence we strive to foster throughout our firm. Please join us in congratulating Clay on this significant professional achievement. We’re excited for the many ways this new designation will allow him to serve clients at an even higher level—because at Whitaker-Myers Wealth Managers, we believe in growing with purpose, so we can help others live with purpose.

Concerns that a trade war could lead to a recession have rippled across global markets. Investors have been watching closely as China responded to recent U.S. trade actions with retaliatory tariffs, increasing the perceived risk of a full-scale economic standoff. As a result, markets in Asia and Europe declined alongside U.S. equities, and we’ve seen a familiar “flight to safety,” with bond prices rising and yields falling. However, on April 9th, 2025, the landscape shifted dramatically. In a surprise move, President Trump announced a pause on all tariffs except those targeting China—a decision that immediately changed the tone of the markets. I was on the phone with a client at that very moment, reassuring her that, in my view, an inflection point could come at any time, and when it did, we could see a sharp, unexpected rally. As our call wrapped up, I paused and said, “Something just happened—and it’s big.” The market had erupted into a massive rally right around 1 p.m., validating the very scenario we had just discussed. This moment serves as a powerful reminder: markets don’t wait for clarity—they respond to it in real time. Investors who remain disciplined and long-term focused are often the ones best positioned to benefit when sentiment and policy shift unexpectedly. Despite the rally, we don't know what tomorrow holds. My favorite verse I quote is from Ecclesiastes 11:2 - "Divide your portion to seven, yes even to eight, for you do not know what calamity may come upon the earth." So in light of the NCAA tournament that saw UCONN win a national championship on the women's side and Florida take home the prize on the men's side - let's talk about why your portfolio, much like these two impressive basketball teams, needs to be excellent in both it's offense and it's defense. Portfolio balance and financial planning are even more important today In sports, as well as investing, a winning strategy requires a combination of both offense and defense. Defense involves maintaining a portfolio that can withstand different phases of the market cycle. Stock market uncertainty and unexpected life events are inevitable, so always being ready to play defense is important. Going back to Feb 19th, while the stock market cratered, the bond market's return (using the Vanguard Total Bond Fund ETF "BND" ) was +0.83%. Comparatively, the S&P 500 returned -18.76%, the Nasdaq Composite Returned -23.77%, and the Russell 2000 returned -22.62% over that same period. That is the definition of lockdown defense. Offense, on the other hand, involves taking advantage of market opportunities that emerge from changing conditions. The irony is that while periods of market uncertainty may be unpleasant, they also represent times when asset prices and valuations are the most attractive. Ultimately, portfolios that are tailored toward financial goals need both offense and defense. How can investors position in today’s market environment to both protect from risk and take advantage of opportunities? Two of the key principles of long-term investing are diversification and maintaining a long time horizon. This is showcased in the accompanying chart which depicts the range of historical outcomes across stocks, bonds, and diversified portfolios. It also shows how these ranges change when time horizons are increased. For instance, it’s easy to see that over just one-year periods, the stock market can vary significantly, from gaining 60% in 1983 when the market recovered from stagflation fears, to -41% during the global financial crisis. Moving beyond just one-year periods and a stock-only portfolio underscores why these are powerful ways to think about investing and financial planning. Diversifying might reduce the maximum returns an investor can experience, but it also reduces risk. This is evident in the balanced portfolio consisting of 60% stocks and 40% bonds. So far this year, the S&P 500 is 13% lower, but a 60/40 mix of these indices has declined only 4.6%. After all, the goal is not simply to grow a portfolio at the fastest but most volatile rate, but to have the highest possible probability of achieving your financial goals. A diversified portfolio historically has a much narrower range of outcomes, allowing investors to better plan toward their goals. Similarly, extending your time horizon by even a few years can have a significant impact on the range of outcomes. History shows that, since World War II, there has not been a 20-year period in which any of these assets and portfolios have experienced annual declines, on average. The same is true over 10-year periods for many diversified asset allocations. While this is only illustrative and is no guarantee of future performance, it clearly shows the importance of thinking long-term. Volatility can create opportunities What about market opportunities? The accompanying chart shows that the VIX index, often known as the stock market’s “fear gauge,” can spike on a periodic basis. These peaks correspond to sharp drops in the market, such as in 2008 or 2020. These are times when markets are the most nervous and, in many cases, investors feel as if the situation will never stabilize. This chart, which is similar to a chart I showed on my recent YouTube Video , also shows the returns of the S&P 500 over the next year. As we discussed above, there is never any certainty about returns over any single year for the stock market. However, it’s clear that the greatest market opportunities often emerge when investors are the most worried. This is the heart of the famous Warren Buffett quote to “be fearful when others are greedy, and greedy when others are fearful.” This is especially true when markets face liquidity concerns rather than solvency issues. Liquidity problems arise when market downturns force leveraged investors—those using borrowed money—to sell off assets to cover their positions. This often leads to price declines even when the fundamentals of the asset remain solid. It’s a prime example of how short-term market moves can become disconnected from long-term realities, creating unique opportunities for patient, disciplined investors. As Dave Ramsey teaches, we should stay far away from debt—both personal debt and margin debt—because borrowing to invest adds unnecessary risk and can force investors into painful decisions during volatile markets. It's important to note that this is not an argument for market timing. Even when the VIX is high, there is no guarantee that markets will rebound quickly. Instead, investors should view this as additional support for taking a portfolio perspective. Market downturns often occur when valuations are the most attractive, and thus, it can make sense to shift toward – not away – from these assets. Of course, what makes sense for a given portfolio depends on the specific circumstances. Really, the most prudent scenario may be - just build a plan (baby step 4) and execute it. You'll probably execute it in good times and bad times, and that'll lead to some excellent entry points in your investment portfolio. Valuations are more attractive today So, which assets have helped this year, and which are more attractive today? Bonds have played an important role this year as interest rates have fallen, helping to balance portfolios and partially offset declines in other asset classes. Bonds are able to do this because they typically exhibit lower volatility than stocks and often move in the opposite direction. For this reason, investors often say that “bonds zig when stocks zag.” Holding the right balance of “uncorrelated” assets helps investors prepare for challenging times. Valuations, while potentially stretched for the S&P 500 (nearly 20X), which is why we recommend a more balanced and valuation-focused approach to your S&P 500 exposure, or growth and growth & income in Dave Ramsey's Vernacular , the valuations of the Russell 2000 (Aggressive Growth) are around 14X earnings, and the valuations of the MSCI EAFE (International) are around 14X, providing historically good ten-year forward-looking returns when you buy stocks at those (Russell & MSCI EAFE) valuation points. Indeed, they are more attractive today after this recent drawdown. While it is still unclear where earnings will settle after accounting for tariffs, we should get insight very soon as earnings season kicked off with Delta Airlines today, and Friday will include the big banks (JP Morgan, Citi, Wells Fargo). Some sectors, such as Information Technology, Communication Services, and Consumer Discretionary, have seen multiples decline more amid the broader pullback. Interestingly, assets such as gold, which often serve as safe havens, have struggled more recently. Gold prices rose to new all-time highs earlier this year, resulting in double-digit returns over the past year. Investors are typically drawn to this asset class for many of the same reasons they are interested in bonds – it can serve as a store of value in times of uncertainty. However, gold prices have also retreated as economic fears have weighed on all commodities. This highlights the importance of not focusing only on a single asset class, but viewing it from a holistic portfolio perspective. The bottom line? Offense and defense are both important in times of market uncertainty. They help investors manage risk and take advantage of attractive opportunities that may emerge

John-Mark Young , President & Co-Chief Investment Officer at Whitaker-Myers Wealth Managers, has been named to the prestigious Forbes  list of Top In-State Wealth Advisors  for 2025. This honor reflects John-Mark’s deep commitment to transforming the lives of his clients through principled financial planning and heartfelt service. The Forbes  ranking , developed in partnership with SHOOK Research, is known for its rigorous selection process. It emphasizes both quantitative excellence and the qualitative impact advisors have on their clients’ lives. Out of nearly 49,000 nominations nationwide, only a small percentage of advisors are selected after extensive telephone and in-person interviews, evaluation of compliance records, and thorough reviews of business practices and service models. With over a decade of experience and a growing list of credentials—including AIF®, ChFC®, CKA®, RICP®, RMA®, NSSA®, and an advanced certificate in blockchain and digital assets—John-Mark has earned a reputation for leadership, integrity, and excellence. His vision for financial planning goes beyond the balance sheet; it’s about helping families steward their resources in a way that aligns with their values, priorities, and purpose. In receiving this award, John-Mark is quick to shift the spotlight to others. “This is not a solo achievement,” he shared. “I’m incredibly grateful to the amazing team at Whitaker-Myers Wealth Managers   who share the same passion for client impact, integrity, and stewardship. They are the engine behind everything we do.” He also extended sincere appreciation to the team at Ramsey Solutions , noting, “Our missions align so closely—helping everyday families experience freedom, clarity, and peace with their finances. It’s an honor to serve alongside such a values-driven organization.” John-Mark also acknowledges the foundational support of his wife, Megan, who he calls “the cornerstone of our family.” Her encouragement and faith give him the strength to lead both at home and in the office. “Megan’s unwavering support and belief in me allows me to be the husband, father, and leader I’m called to be. I simply couldn’t do this without her.” This recognition from Forbes  is not just a professional milestone—it’s a reflection of a life and career built on purpose, service, and a desire to make a difference. John-Mark’s story is a reminder that great financial advice isn’t just about smart investing—it’s about building relationships, empowering families, and walking with clients through every stage of life. Congratulations, John-Mark, on this well-earned achievement and the lasting legacy you’re creating through Whitaker-Myers Wealth Managers.

STRS announced an early retirement incentive  for members with the defined benefit (also known as the BD Plan, which is the pension plan) of any age and with 33 years of service, or those aged 60 and with at least 5 years of service between June 1, 2025, and July 1, 2027.    There are also options to take a reduced benefit, which I’m generally not a fan of, but can be evaluated if you have an estimate for a reduced age or amount to compare to an unreduced one.   Below is a table indicating the eligibility requirements: So, the question is, should I take STRS up on this offer? What you’d like to do may differ from what you can afford financially.  To determine what you should do depends on the rest of your financial situation.   If you’d like to see which option is best for you, here’s what you’ll want to do. Run your STRS pension (retirement benefit) estimate for: 1)     the earliest age at which you’re eligible (when you have 33.0 years of service) or the end of the school year 2)     when you hit 34.0 years of service (the normal years of service requirement) or the end of the school year after you hit 3)     If you’d like to consider a third option for comparison, feel free to run that as well.   (It’s very easy to run different estimates)   STRS has instructions on how to run an estimate here .   If your district has negotiated salary increases for the next several years, make sure to include those salary increases when running your retirement benefit estimate.  If you’re not aware of what those are, you can contact your district’s treasurer’s office.   Next Steps for Retirement Planning If you’d like help with running this estimate or have exceptional circumstances (eligible to buy back time), we recommend scheduling a meeting with an STRS counselor to discuss this further.   Once you have your estimates, you should reach out to your financial advisor at Whitaker-Myers Wealth Managers to discuss the best option for you.

We understand the markets when they are moving around in big swings can be exhilarating when they go up and painful when they go down. Please enjoy these verses that I memorized and used when going through my Certified Kingdom Advisors designation. The Certified Kingdom Advisor® (CKA®) designation equipped me with the tools and training to provide financial advice that aligns with Biblical principles. It’s not just about managing money—it’s about stewardship, contentment, and honoring God with every financial decision. This designation has deepened my understanding of Scripture as it relates to personal finance and enables me to integrate faith and wisdom in a way that brings eternal perspective to everyday planning. As a CKA®, I help clients make choices that are not only financially sound but also spiritually grounded, ensuring their plans reflect both Biblical truth and practical strategy, incluidng during a 10-20-30% tariff market meltdown. Isaiah 41:10-13 (ESV) 10   Fear not, for I am with you;be not dismayed, for I am your God;I will strengthen you, I will help you,I will uphold you with my righteous right hand. 11   Behold, all who are incensed against youshall be put to shame and confounded;those who strive against youshall be as nothing and shall perish. 12   You shall seek those who contend with you,but you shall not find them;those who war against youshall be as nothing at all. 13   For I, the Lord your God,hold your right hand;it is I who say to you, “Fear not,I am the one who helps you.” Philippians 4:6-7 (ESV) 6   Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. 7   And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus. Psalm 55:22 (ESV) Cast your burden on the Lord, and he will sustain you;he will never permit the righteous to be moved. Matthew 6:25–34 (ESV) 25   “Therefore I tell you, do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing? 26   Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? 27   And which of you by being anxious can add a single hour to his span of life? 28   And why are you anxious about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin, 29   yet I tell you, even Solomon in all his glory was not arrayed like one of these. 30   But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O you of little faith? 31   Therefore do not be anxious, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32   For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. 33   But seek first the kingdom of God and his righteousness, and all these things will be added to you. 34   Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble. 1 Peter 5:6-7 (ESV) 6   Humble yourselves, therefore, under the mighty hand of God so that at the proper time he may exalt you, 7   casting all your anxieties on him, because he cares for you. Psalm 94:17–19 (ESV) 17   If the Lord had not been my help,my soul would soon have lived in the land of silence. 18   When I thought, “My foot slips,”your steadfast love, O Lord, held me up. 19   When the cares of my heart are many,your consolations cheer my soul. Matthew 11:28–30 (ESV) 28   Come to me, all who labor and are heavy laden, and I will give you rest. 29   Take my yoke upon you, and learn from me, for I am gentle and lowly in heart, and you will find rest for your souls. 30   For my yoke is easy, and my burden is light.” Proverbs 3:5–6 (ESV) 5   Trust in the Lord with all your heart,and do not lean on your own understanding. 6   In all your ways acknowledge him,and he will make straight your paths. 2 Corinthians 12:9–10 (ESV) 9   But he said to me, “My grace is sufficient for you, for my power is made perfect in weakness.” Therefore I will boast all the more gladly of my weaknesses, so that the power of Christ may rest upon me. 10   For the sake of Christ, then, I am content with weaknesses, insults, hardships, persecutions, and calamities. For when I am weak, then I am strong. Romans 8:38–39 (ESV) 38   For I am sure that neither death nor life, nor angels nor rulers, nor things present nor things to come, nor powers, 39   nor height nor depth, nor anything else in all creation, will be able to separate us from the love of God in Christ Jesus our Lord. Psalm 23:1–6 (ESV) 1   The Lord is my shepherd; I shall not want. 2   He makes me lie down in green pastures. He leads me beside still waters. 3   He restores my soul. He leads me in paths of righteousness for his name's sake. 4   Even though I walk through the valley of the shadow of death, I will fear no evil, for you are with me; your rod and your staff, they comfort me. 5   You prepare a table before me in the presence of my enemies; you anoint my head with oil; my cup overflows. 6   Surely goodness and mercy shall follow me all the days of my life, and I shall dwell in the house of the Lord forever. Romans 15:13 (ESV) May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope. Jeremiah 17:7–8 (ESV) 7   Blessed is the man who trusts in the Lord, whose trust is the Lord. 8   He is like a tree planted by water, that sends out its roots by the stream, and does not fear when heat comes, for its leaves remain green, and is not anxious in the year of drought, for it does not cease to bear fruit.

Whitaker-Myers Wealth Managers is excited to announce the promotion of Summit Puri  to Co-Chief Investment Officer . In this new role, Summit will work alongside President and Chief Investment Officer John-Mark Young , helping guide the firm’s portfolio construction, monitoring, and research initiatives as the company continues its mission to deliver world-class financial planning and investment management solutions. This promotion is the culmination of a long-term vision that began in early 2024. Over the past year, Summit immersed himself in the firm’s investment philosophy, took on internal research projects, and launched the popular “ Summit’s Investment Corner ”—a recurring internal and external insight series designed to deepen understanding of current market dynamics. To further validate his growing expertise, Summit recently completed the Certified Investment Management Analyst® (CIMA®)  designation through the Investment & Wealth Institute , taught by Yale University faculty . Widely regarded as one of the most prestigious designations in the industry, the CIMA® equips professionals to blend theory and practice at the highest level of investment consulting. In the coming years, Summit plans to continue his investment education by pursuing the Chartered Financial Analyst (CFA®)  designation. In his new role, Summit will take a lead in overseeing and enhancing the firm’s core equity models. He is already spearheading initiatives focused on reducing investment costs, increasing portfolio diversification , and maintaining risk-adjusted return objectives . Beginning in April , clients and advisors will also benefit from quarterly portfolio summaries  authored by Summit, which will include: Executive summaries of portfolio performance Highlights of key contributors and detractors Comparative returns over 1, 3, 5, and 10-year periods versus the firm’s benchmark (aligned with Dave Ramsey’s philosophy ) As part of this enhanced investment process, Summit also leads the Whitaker-Myers’ internal Investment Committee , which now meets monthly to review portfolio allocations and discuss market trends. Advisors and team members will receive monthly summaries  of these meetings, creating a new layer of transparency and ensuring that every investment decision is grounded in conviction—even during periods of underperformance. “Summit’s growth and leadership in our investment process have been outstanding,” said John-Mark Young, President and CIO of Whitaker-Myers. “This promotion reflects both his hard work and our firm’s long-term strategy to build a research-driven, advisor-supported, and client-focused investment platform. We’re excited for the impact he will continue to make.” Please join us in congratulating Summit Puri on this well-earned promotion!

Introduction One topic that comes up very often during initial meetings with clients is whether or not they have a will or trust set up. We believe estate planning is essential to creating a holistic financial plan. We want to ensure that our clients know where their assets will be going after they pass and their options for how the assets will be distributed. In this article, we will define “trust” and paint an overview of the different types of trusts and how they compare to a will and one another.    What is a trust? Before explaining what a trust is, a few terms are important to know when describing a trust. The first is the grantor or settlor  – this is the person who creates the trust and sets its specifications. Next, the trustee , which can either be an individual or an institution, oversees the grantor’s assets and makes sure they are handled and or distributed according to the trust.   A trust is a legal contract in which a third party holds and manages the grantor's assets on behalf of their beneficiaries . Depending on the type, trusts can be set up during the grantor’s lifetime or after their death and can be customized to help meet the grantor's goals.   How a Trust Differs from a Will Although both a will and a trust are used to distribute assets, there are several significant differences between the two.    The first and probably most significant difference is that most wills go through the probate process, in which a court validates the will. Trusts generally avoid the probate process, making them quicker to administer and more private. It also allows trusts to avoid any legal fees that would come up from probate.    The second difference is when each one goes into effect. A will only takes effect after the person passes away. Depending on which type of trust is created, it can either go into effect immediately after creation or at a specified time. The third difference is the management of assets. A will can only control how assets are distributed, which is then executed by an executor after the person passes. However, a trust allows for ongoing management of assets, both while the grantor is alive and after their passing. The trustee can manage the estate during the grantor’s lifetime or distribute assets according to specific instructions after the grantor passes away. The last main difference between a will and a trust is that a trust can specify what happens should the grantor become incapacitated before death. A will does not address this possibility, which means that a couple’s affair would have to be managed by a court-appointed guardian if they were incapacitated.   Types of Trust There are several different types of trusts, each with a specific purpose. The following are the most common types and what distinguishes them.   Revocable Living Trust This is one of the most flexible types of trusts. It allows the grantor to alter or revoke the trust at any point during their lifetime. The grantor maintains control of the assets while they are living, and upon their death, the trust distributes assets accordingly while avoiding probate. One drawback of this type is that, since it is revocable, the assets are still considered a part of the grantor’s estate and may be subject to estate taxes.   Irrevocable Trust As the name would suggest, in an irrevocable trust, once the assets are transferred to the trust, the grantor no longer owns them, and the trust is managed according to its terms. This provides asset protection from creditors and may reduce estate taxes since the assets would not be considered a part of the grantor’s estate. Any changes to the trust would have to be approved by the trust's beneficiaries.   Testamentary Trust This type of trust is created through a will and does not come into effect until the person’s death, much like an irrevocable trust. The will outlines the terms of the trust. The downside of this type is that since it is created using a will, the assets must go through probate.   Special Needs Trust These are designed to provide for the financial needs of a person with disabilities while maintaining their government benefits, such as Social Security and Medicaid. Charitable Trust Charitable trusts are established to benefit a specific charity or the public in general. There are two main types of charitable trusts: Charitable Remainder Trusts (CRT) and Charitable Lead Trusts (CLT). In a CRT, the grantor places assets into the trusts, which then pays the beneficiaries for a set period of time, which can be either their lifetime or a set number of years. The remaining assets are then given to the charity. A CLT is the opposite, in which the trust pays income to a charity for a set amount of time, and after that, the remainder is given to the beneficiaries. Spendthrift Trust This type of trust is designed to help the beneficiaries from squandering their inheritance. It is capable of protecting assets from creditors and ensures the beneficiaries receive the money gradually.    Conclusion Whether you choose a will or a trust depends on your specific situation, goals, and needs. If your financial situation is straightforward and you do not mind your assets going through probate, then a will may suffice. If you prefer privacy, avoiding probate, and want to protect your assets from creditors, you may want to consider setting up a trust.   Whitaker-Myers Wealth Managers  has partnered with EncorEstate Planning, a national estate planner, to help clients get their estate planning  in order. If you have any questions about what would be more beneficial to you, reach out to a financial advisor  on our team.

As we near the conclusion of this tax season, I have been reflecting on how confusing the tax process can be.  For those who don’t live in the financial world on a daily basis, taxes can be an even more confusing topic. Some financial advisors partner with CPAs to help interpret and implement various tax codes, working closely with their clients during tax season.   The Importance of a CPA According to the National Association of the State Board of Accountancy, as of August 29, 2024, there are approximately 671,855  certified public accountants (CPAs) in the United States.  For the fiscal year 2023, Forbes reports  that the IRS processed more than 162 Federal individual tax returns and supplemental documents.  Easy math tells us that, from the individual filing perspective, each CPA is responsible for approximately 241 filers.  This does not include the various other responsibilities CPAs attend to, such as taxes for businesses, partnerships, and trusts.   A key question people often ask is: “When is the best time to find a CPA?”  When asked, Kage Rush of Whitaker-Myers Tax Advisors shared that the best time to look for a CPA is before tax season begins. By already being scheduled and on their calendar, you can avoid the late rush of trying to get in at the last minute and the potential for needing to file for an extension.   Now that you are on your CPA’s schedule, what information and paperwork do you need to gather before your meeting?   Tax forms to bring In addition to bringing a copy of last year's tax return, having the correct paperwork that shows your income and employment status is necessary. Additionally, if you invest, having the proper forms is needed to file your taxes correctly.   Below are some simplified overviews for each tax form you may be required to bring, which inform the IRS of your income and how your employment status should be reported.    Work Forms W-2 This form informs the IRS that a company employs you and is only responsible for half of the Social Security and Medicare tax. Which, if you did not know, for each individual, the Social Security, and Medicare tax  is 15.3%. The employer pays half of this amount (6.2% for Social Security and 1.45% for Medicare). The W-2 shows the IRS your Gross income, how much you paid towards State, Local, and Federal taxes, including Medicare and Social Security, and if you contributed to an employer's retirement plan.   1099 – NEC The 1099 NEC indicates to the IRS that you are filing as an Independent Contractor.  As a contractor, you are now responsible for paying the entire 15.3% of Social Security and Medicare taxes. This allows the IRS to determine the starting point for your base taxes.  Then, as an independent contractor, you can include your business deductions on your 1099 to lower your income and reduce your tax burden.  An important side note for 1099 contractors: It is recommended that you file quarterly estimates to avoid significant penalties from the IRS.     Investment Forms After your work tax forms, if you invest in IRAs or Brokerage accounts, you will also need tax forms from these different accounts.    5498 If you saved money in a Roth IRA or a pretax IRA, your custodian (the company that holds your IRA, such as Fidelity or Charles Schwab) will send you this tax form in You might ask, “If I have to have all my tax information completed by April 15th, why do custodians wait until May to send me this form?” The simple answer to this question is that individuals have till April 15 to make contributions for the prior tax year.  One reason an individual might use this contribution strategy is to determine their tax liability and then make a contribution to reduce that tax burden, or ensure they fall within the income range to make contributions for their Roth IRA.    However, if you want to file your taxes before April 15, you can request the amount you contributed for the prior year from your financial advisor and then report it on your tax return. Once your Form 5498 comes in May, you should keep it with your other records.    1099 If you are investing money in a non-retirement brokerage account, you will receive a 1099-Composite tax form.  This informs the IRS of realized gains within your Brokerage account.  It will categorize the gains as either Short-Term or Long-Term gains .  Short-term gains are taxed at ordinary income rates. Short-term gains occurs when an investment is sold within one year of purchase for a gain. Individuals that day trade with single stocks  will see this type of gain. Long-term gains occur when a person buys a position and holds it for longer than 365 days.  At this point, you benefit from potentially lower Capital Gains  tax rates.    1099–R This is a significant tax document for clients who are now retired and are collecting income from a Pension, an Annuity, Retirement/profit-sharing plans, IRAs, and Insurance Contracts. This informs the IRS of the total amount of money you received from these various income sources and the federal taxes that were withheld.    1099 – SSA This tax form is one document that makes little sense to me since a person that is receiving Social Security Benefits is only collecting a benefit for which they paid FICA taxes their entire working lives! And now that they are collecting a benefit, a portion of the benefit may be taxable. Regardless, this form provides the IRS with the total amount of benefits you received in the prior tax year. The helping hand As shared, taxes can be confusing. Knowing which tax forms you need and the reasons for each one is beneficial to know ahead of time. However, if you have questions, always feel free to reach out to your financial advisor . If you’d like help filing your 2025 taxes or tax preparation assistance for 2025, schedule a meeting with Whitaker-Myers Tax Advisors  to guide you through the process.

Last week, we took a look at tax loss harvesting  and reviewed how to avoid capital gains, but we also saw examples of how this could benefit you in a specific scenario.   This week, we will look at the investment strategy of tax loss harvesting.   Look at the big picture of your investment strategy Remembering tax rules and strategies, such as tax loss harvesting, can be a hassle. Thankfully, these rules are irrelevant in tax-favored accounts such as traditional IRAs, Roth IRAs, and similar retirement accounts.   Most people should be more aggressive and active inside a retirement account to minimize trading that triggers capital gains. Emergency funds should be composed of guaranteed investments like CDs, money markets, or Treasury Bonds. Taxable brokerage accounts should be set up to buy and hold to minimize realizing gains that could be taxable.   Those with workplace retirements, like 401(k)s, may notice their investment options are limited. If you’d like to be more active in a retirement account, we’d recommend first contributing enough to your retirement plan to get the full match from your employer. Then, additional investments can be shifted to a traditional IRA or Roth IRA. The IRAs will have more investment options, allowing you to be more active with your trading. Remember, Dave Ramsey and his team at Ramsey Solutions  recommends always saving at least 15% of your income into retirement accounts such as 401(k)s and IRAs.   For those who have maxed out their retirement accounts and still haven’t hit their 15% savings rate, we recommend adding funds to a brokerage account . We all hope each of our investments gains value each year, but the market does not go up in a straight line. If you have a brokerage account, you may find yourself with holdings that have lost value. Tax loss harvesting refers to selling these holdings in order to realize losses, which can help offset other gains and save you on taxes.   Seek professional guidance We recommend consulting with financial advisors  and accountants to help navigate the tax loss harvesting minefield. Even if you feel like you have a good grasp of the tax laws, having a second set of eyes and ears to look through and help evaluate and affirm various moves can be very helpful in giving you confidence that you are making both legal (in tax reporting) and fundamentally sound moves. Striking a balance of making good decisions on entering and exiting which positions and minimizing the tax impact of those moves simultaneously can be challenging to get right without the proper understanding, insight, and experience.   Even if you are the rare investor who feels comfortable navigating the tax implications of buying and selling stocks efficiently in a brokerage account, hiring a fee-only advisor would be well worth the small investment to ensure you make the best possible moves in tax loss harvesting each calendar year. A good advisor will keep you from being so hyper-focused on tax loss harvesting that you either make moves that do not make sense or fail to make moves that do make sense within your securities portfolio.   If you have questions and don’t have an advisor, reach out to our team of financial advisors  today!

Two weeks ago, Summit Puri and I had the opportunity to spend several days at PIMCO’s headquarters in Newport Beach, California. As the largest fixed-income manager in the United States, PIMCO is a crucial partner to Whitaker-Myers Wealth Managers, especially in our fixed-income analysis and investment strategies. During my time there, Summit and I gained invaluable insights into U.S. economic policies, global trade dynamics, inflation trends, labor markets, fiscal deficits, and their implications for investment strategies. Below is a summary of the key takeaways from my discussions with PIMCO’s esteemed experts. Economic Policies and Global Trade: Insights from Tiffany Wilding Tiffany Wilding , an economist at PIMCO, provided a comprehensive overview of the current economic landscape. She noted that the pandemic’s economic impact is largely behind us, with inflation in developed markets nearing target levels. However, recent U.S. policy shifts are more aggressive than anticipated, particularly in trade, fiscal management, and labor policies. Trade Deficit and Global Competitiveness Wilding highlighted how countries with trade surpluses, such as China, Germany, and Korea, contribute to U.S. trade imbalances. Policies aimed at rebalancing trade should boost domestic consumption but may face resistance from surplus economies that maintain high savings rates. U.S. Labor Market and Policy Solutions A major topic was the decline of the U.S. labor share post-China’s WTO entry. The resulting wealth transfer toward capital holders at the expense of the middle class has led to structural challenges. Potential solutions include reducing fiscal deficits, promoting structural reforms in other countries, and adjusting the U.S. dollar’s valuation. However, each solution faces political and economic constraints. Fiscal Deficits and Social Programs With the U.S. grappling with high fiscal deficits, reforms in Social Security and Medicare remain politically sensitive. Medicaid adjustments also face strong opposition, making deficit reduction a complex issue. As we know, this is roughly half of the US budget, so something must be done. Tariffs, NAFTA, and Economic Disruptions The discussion extended to the impact of tariffs on inflation and economic growth, particularly in relation to supply chain disruptions between the U.S., Mexico, and Canada under NAFTA. Investment Implications from Mark Kiesel Mark Kiesel , PIMCO’s CIO of Global Credit, presented an out-of-consensus perspective on economic growth, predicting a sharper slowdown than commonly expected. His insights, drawn from direct CEO conversations, indicate that many business leaders are privately concerned about economic headwinds. We'll see if this plays out, but it was probably an easier (less out-of-consensus) argument to make as the market hit a 10% correction right around the time of this meeting. Bond Market Opportunities Kiesel emphasized that bonds present one of the best investment opportunities in years. Reflecting on past forecasts, he recalled correctly predicting the 2006 housing market collapse. Today, he sees parallels in underappreciated risks and mispriced opportunities in fixed income. Commodities and Inflation Trends: Insights from Andrew DeWitt Andrew Dewitt, Portfolio Manager at PIMCO, delved into the role of commodities in the inflation landscape. While commodity inflation has softened, especially in energy, potential geopolitical shocks could disrupt this trend. Tariffs, Trade Wars, and Commodity Markets Trade tensions with Canada and Mexico have contributed to inefficiencies in the U.S. energy market, particularly in gasoline production. Potential policy shifts regarding Venezuela may alleviate some of these issues. Investment Strategies in Commodities Dewitt highlighted that commodities act as strong inflation hedges, with a 1% surprise in inflation historically leading to an average 7% gain in commodity prices. He introduced various investment vehicles, including the Commodity Real Return Fund and newly launched ETFs. AI’s Impact on Energy Demand The discussion also covered how AI-driven power consumption will increase demand for natural gas, reinforcing its importance in long-term energy strategies. Fixed Income Strategies: Insights from Dan Ivascyn Dan Ivascyn , CIO of PIMCO and leader of the renowned PIMCO Income Fund, shared his approach to navigating today’s fixed-income markets. The PIMCO Income Fund has outperformed 99% of its peers over 15 years, demonstrating its strategic prowess. Fixed Income Outlook and Interest Rate Strategies Dan emphasized the predictability of fixed-income yields over a five-year horizon, citing a strong correlation between starting yields and subsequent returns. Current bond yields present attractive opportunities, often exceeding the 2% inflation target, with some reaching 6-7%. Corporate Credit and Risk Management While corporate credit markets remain tight, PIMCO’s strategy focuses on high-quality investments to preserve yield and mitigate downside risks. Diversification into global bond markets, particularly in Australia, the UK, Canada, and select emerging markets, was recommended and is being executed by the PIMCO Income Team. Private Credit and Interval Funds Ivanscyn also discussed the growing role of private credit markets and interval funds in today’s investment landscape. While private credit provides additional yield, investors must be aware of associated risks, particularly in distressed sectors. Final Thoughts Summit & I's visit to PIMCO reinforced the importance of data-driven, forward-thinking investment strategies. The insights shared by PIMCO’s top experts provided a nuanced understanding of today’s economic complexities and investment opportunities. As Whitaker-Myers Wealth Managers continues to partner with PIMCO, these perspectives will play a crucial role in shaping our fixed-income strategies and broader investment approach for our clients. As always, we remain committed to helping our clients navigate market uncertainty with well-researched, high-quality investment strategies.

March is supposed to bring college acceptance letters and financial aid offers, but instead, we’ve got a bit of a hot mess. First, there was the not-so-smooth rollout of the new Better FAFSA,  and now Congress is talking about cutting more areas of student aid packages. If you’re a parent of a college-bound student, be sure to read this article, as it could help save your hard-earned dollars in your wallet.   So, what’s going on?   If Congress follows through on these cuts, Federal Pell Grants could shrink, and programs like Federal Work-Study and Public Service Loan Forgiveness might be on the chopping block. That means fewer opportunities for students to earn aid and more families forced to take on debt.   Student Loan Changes on the Table Here are just a few of the ways Washington is thinking about “fixing” student loans: Public Service Loan Forgiveness Reform Congress wants to limit who qualifies for this program, making it even harder for borrowers to get relief. Repealing Borrower Defense to Repayment Repeal a Biden administration rule that made it easier for a borrower to discharge loans as a result of a school's misconduct, etc. Eliminating Grad and Parent PLUS Loans by 2028 Not that we encourage taking out loans to cover college, but if you were counting on these loans to cover costs, that may not be the case.   Understanding Your College’s Offer March is when most financial aid packages arrive, and that’s when reality hits parents in the face. “Wait, this is what we have to pay?!” Yep. And to be honest, that letter can be complicated if you’re not familiar with knowing what to look for.   Here’s what to look for: Total Cost of Attendance This should include tuition, room & board, books, and personal expenses. Scholarships & Grants Free money. Take it and run. Loans Most schools automatically offer federal loans, but remember, loans are not aid. Work-Study If offered, great! But it’s not guaranteed, and you’ll have to work for it. Parent PLUS Loans If they list this as “aid,” don’t fall for it—it’s just another way for you to go into debt. Can You Negotiate a Better Deal? Yes, you can! But you need to know who negotiates and who doesn’t. State schools?  Nope. What you see is what you get. Private colleges?  Many will negotiate—especially if they really want your student.   Think of it like buying a car. Savvy shoppers get multiple offers, compare prices, and use one deal to push for a better one. Colleges don’t like the word “negotiate,” but they absolutely do it—they just call it “re-evaluating financial aid.”   If you’ve got a better offer from another school, show them. If your financial situation has changed (job loss, medical bills, etc.), tell them. The worst they can say is no.   Don’t Let College Wreck Your Retirement Here’s the truth: You can borrow for college, but you can’t borrow for retirement. Yet every year, parents wreck their financial future by taking on massive student loan debt.   Before you sign on the dotted line for a Parent PLUS Loan or take out a second mortgage, ask yourself: Can I actually afford this? If the answer is no, it’s time to consider different options. Community college for two years Save a ton of money and transfer later. State schools over private schools It's less fancy but a whole lot cheaper. Scholarships, scholarships, scholarships Your kid should be applying like it’s their part-time job. Get them started on these today.   Final Thoughts Every year, I hear parents say the same thing: “I wish I had known this sooner.” Don’t wait until it’s too late to make a wise decision. The goal isn’t just to get your kid into college—it’s to get them through it without burying yourself in debt.   If you have questions about saving for your kid’s college future and need help with college planning, reach out to your financial advisor to discuss options and hear suggestions during the planning time.

When it comes to financial planning, it's important to recognize what we can and cannot control. We can control our own behavior, make thoughtful financial plans, and adjust our strategies as needed. However, we don't control the economic cycle, market movements, or policy decisions that impact the broader financial landscape. Recognizing this distinction allows us to focus on the aspects of our financial lives where our decisions truly matter.    With some investors now worried about a possible recession and the stock market facing heightened uncertainty, we believe it’s a good time to review the fundamentals of business cycles and how they affect financial planning.  It is also important to note that market corrections are normal and necessary.  Check out this video  by our Chief Financial Planning Officer and CFP, Tim Hilterman,   about navigating choppy markets.   What is the business cycle? Business cycles represent the broader economy’s movement through periods of growth and recession, measured by metrics like GDP, employment, industrial production, and more. While the duration of a business cycle can vary significantly, they tend to occur over long periods, lasting 5-10 years on average.   According to the National Bureau of Economic Research, there have been twelve recessions since World War II. In the last 25 years, we have experienced three: the 2020 pandemic recession, the 2008 global financial crisis, and the 2001 dot-com bust. Of course, there have been many more cases when investors and economists feared there might be a recession.   Business cycles have also grown longer since the “stagflationary” period of the 1970s and early 1980s. The steady growth period until 2008 is often known as “The Great Moderation” - a period when the economy was strong, inflation was moderate, unemployment remained low, and the average cycle length was nearly nine years.   Phases of the business cycle While each business cycle is unique, some patterns have emerged over time. In general, business cycles can be characterized by four distinct phases:   Expansion  - During this phase, the economy grows, unemployment falls, consumer confidence rises, and business activity increases. GDP growth is positive, and companies often invest in new capacity. Peak  - This is the point where growth reaches its maximum. The economy is operating at or near full capacity, inflation may begin to rise, and signs of overheating might appear. Contraction  - During this phase, economic activity slows, companies may reduce hiring or lay off workers, and GDP growth slows or becomes negative. Consumer spending typically decreases during this phase. Trough  - This is the lowest point of the cycle, where economic decline bottoms out before beginning to recover. Unemployment is typically at its highest, and business confidence is low.   Each phase may not be equal in length, and there are both situations where business cycles last longer than some expect and cases where cycles end abruptly.   For example, during the 1990s business cycle, the economy slowed sharply in 1995 without falling into a recession. The Fed was able to achieve a so-called “ soft landing ” by lowering inflation without negatively impacting economic growth.   In contrast, the 2008 global financial crisis resulted in a swift economic decline due to a rapid collapse in the financial sector. The same is true in 2020, when the nationwide shutdown resulted in a sharp decline in economic activity.   Trying to precisely time business cycles is notoriously difficult. This is one reason economics is often referred to as “the dismal science” - it has a poor track record of predicting recessions and often predicts ones that never occur. However, recognizing where we generally are in these cycles can help us make better financial decisions nonetheless.   Distinguishing between business and market cycles Market cycles can be more volatile and occur more frequently than business cycles. The stock market can experience multiple corrections within a single business cycle, including several short-term pullbacks each year, due to investor sentiment, liquidity conditions, and other factors beyond the economy.   This is because the market is anticipating the future, while economic data is often backward-looking. Economic data certainly influences markets, but investors also take news headlines, sentiment, and many other data points into consideration. This means that markets can often overreact to short-term events.   Financial planning through cycles Rather than attempting to time markets, the following approaches can help. The key is to ensure you stay on track with your financial goals throughout business and market cycles:   Maintain a long-term perspective  - Short-term market movements often appear as mere blips when viewed over decades. They can sometimes be inaccurate indicators of the business cycle. For example, the 2022 stock market correction did not accurately predict an economic decline. Portfolio rebalancing  - Regular portfolio rebalancing enforces the discipline to “buy low and sell high” by reducing positions that have appreciated and adding to those that have underperformed. When appropriate, this systematic approach can help navigate market cycles without succumbing to emotional decision-making.  Adjust expectations by cycle phase  - During late-cycle periods when valuations are stretched, future returns may be lower. Consider moderating return expectations during these phases rather than chasing higher yields through excessive risk-taking. Have an emergency fund  - Financial plans should take into account the fact that downturns are inevitable. Emergency funds  covering 6-12 months of expenses provide crucial flexibility during contractionary periods, particularly if job security becomes a concern.  Dave Ramsey has helped millions of people by giving this very advice.  He calls it ‘ Baby Step 3. ’   Portfolio resiliency across all phases of the business cycle Constructing an appropriate portfolio remains the cornerstone of investing across business cycles. Different asset classes  can respond in unique ways to changing economic conditions. For example, stocks typically benefit from economic expansions but struggle during contractions. In contrast, bonds can generate income during expansions and provide portfolio balance during contractions.   The right portfolio differs for each person, balancing these asset classes according to your time horizon, risk tolerance, and financial goals. A well-diversified portfolio might underperform the hottest asset class during any given cycle, but it also avoids the most severe drawdowns that can derail financial plans.   The bottom line? Market and business cycles are natural parts of the investing experience. Rather than trying to predict each turning point, history shows that it’s better to maintain a well-constructed portfolio that can weather all parts of the cycle. As our good friend, Dave Ramsey , always says, “The only people who get hurt are the ones who jump off the roller coaster in the middle of the ride.”   If you have questions about your investments during this choppy market time or want to know more about the market, reach out to your financial advisor . With the heart of a teacher, they are happy to help explain so you feel comfortable and confident with your investments.