The Tax Cuts and Jobs Act went into effect on January 1 2018 Since then there has been significant discussion about these tax changes and how they will affect individuals and families Below we revisit some of the key aspects of the new tax law, Federal income tax brackets, While the tax rates changed there still are seven federal income tax brackets As Federal income taxes are calculated on a marginal basis (where a different rate is applied to each bracket of income many families may have a lower tax liability For others changes in the tax law may increase their tax liability  In addition to changes in tax rates many changes were made to both the standard…, Standard deduction and personal exemptions, When calculating their income taxes individuals and families can use the standard deduction (a flat dollar amount available to all taxpayers or they can itemize their deductions (where specific expenses are deducted up to certain limits The new tax law nearly doubles the standard deduction to $12000 for single filers and $24000 for filers who are married and file jointly In addition all personal…, Itemized deductions, Deduction of interest paid on a new mortgage is limited to $750000 of debt down from $1000000 No deduction is allowed for interest paid on home equity debt if obtained for debt consolidation The deduction for state and local taxes is limited to $10000 per year This includes property taxes state income taxes and sales taxes, Child tax credit, The child tax credit increased from $1000 to $2000, Alimony, Alimony is no longer deductible for the payor and is no longer taxable income for the recipient, W-4 tax withholding, Given these tax law changes you may want to review your W-4 so that you may avoid unanticipated tax obligations You should especially consider reviewing your W-4 if you are someone who previously itemized their deductions or if you prefer a smaller tax refund – these changes will likely affect you the most (A quick reminder on W-4 forms the higher the number of allowances you claim on your W-4…, Next steps, We understand that many of our clients’ financial plans are closely integrated with their tax planning Based on the significant changes that went into effect this year now might be a good time to meet with your wealth advisor and your tax professional so that we can all work together to discuss how these tax changes may impact your financial and tax planning strategy going forward

Asset allocation is one of the most critical decisions in building and preserving wealth particularly as it relates to retirement and estate planning The way investments are allocated across different asset classes not only determines the growth and security of retirement savings but also impacts how your wealth can be transferred to future generations Importantly asset allocation is not a static…, The role of asset allocation in retirement planning, Retirement planning requires a careful balance between growth and preservation In the early stages of wealth accumulation investors generally favor growth-oriented equities that may be volatile over the short term but have a stronger return potential over the long run However as retirement approaches the focus shifts toward preserving capital and generating income A well-structured asset…, Early career (20s–40s Growth phase, In your 20s and 30s retirement can seem like a distant concern But the decisions you make now — how much risk to take how aggressively to invest — will shape your future financial security During this phase individuals have the advantage of a long investment horizon allowing for a higher tolerance for volatility A growth-focused portfolio may include a high equity allocation (80–90% diversified…, Mid-career to pre-retirement (50s–60s Transition phase, As individuals approach retirement asset allocation often shifts toward a more balanced structure to mitigate volatility A gradual increase in fixed income holdings such as investment-grade bonds or municipal bonds can help stabilize returns Additionally exposure to income-generating assets like dividend-paying stocks and real estate investment trusts (REITs can provide diversification and steady…, Retirement (65+ Preservation and income phase, At this stage capital preservation and predictable income become paramount as you enter retirement A well-diversified portfolio might include treasuries laddered bond portfolios and structured income vehicles Income-generating assets such as blue chip dividend-paying stocks and real estate can add further income with the potential to provide some appreciation Maintaining a cash reserve covering…, Tax and estate planning considerations, While an appropriate asset allocation plan is imperative for achieving financial success in retirement using tax-efficient accounts can lower your tax bill by meaningfully impacting the ending value of your investments For example a Roth IRA allows your investments to grow tax free as any income or capital gains received from investments in a Roth IRA account will not be taxed by the Federal…, Summary, Managing the allocation of your assets is a dynamic and sophisticated strategy essential for retirement security and estate planning By thoughtfully adjusting investments over time individuals can optimize returns manage risks and ensure a steady income throughout retirement A well-crafted allocation strategy is not just about accumulating assets — it is about sustaining financial independence…

When it comes to meeting goals and staying on budget and on track to attain your financial objectives financial planning is critical Everyone has unique circumstances that must be considered when creating a comprehensive plan and members of the LGBTQ community may have additional factors to consider when it comes to planning , Although the 2015 Supreme Court ruling that legalized marriage for same-sex couples eased planning in some ways challenges remain An Experian survey found that 62 percent of LGBTQ respondents said their gender identity or sexual orientation caused them to experience financial challenges 1 Some of those financial challenges may include income disparity high cost of living family planning and…, Cash flow planning, Cash flow planning is a crucial component of a financial plan and there are numerous challenges faced for our LGBTQ clientele   , Income disparity, —Members of the LGBTQ community are more likely to be earning less than their heterosexual peers Two-female-headed households for instance are on average less likely to generate as much income as different-sex households or two-male-headed households according to Statista 2, Cost of living, —LGBTQ individuals and their families want to live in areas where they are supported and surrounded by other members of their community and allies As a result they tend to live in urban high-cost areas  Potentially less income and a higher cost of living dictates a well-thought-out budget and savings plan, Family planning and health care, —Same-sex couples and LGBTQ individuals who want to have children need to prepare for the various costs associated with their family planning options The costs of surrogacy fertility treatments adoption and other family planning alternatives can cost upwards of $100000 3  An advisor can help coordinate with a tax advisor to strategize on tax benefits that may be available  In addition to family…, Retirement, —While planning for the short-term (housing family planning health care etc it is also necessary to keep longer-term goals and objectives in mind while continuing to save and prepare for retirement  Regardless of orientation couples should continually coordinate with their advisors to understand how to best allocate funds to continue to save for retirement while ensuring they can create the…, Investments that align with your values, Aside from cash flow and budgeting considerations LGBTQ members may want to create an investment plan that focuses on investing in companies that closely align with their values Alternatively they may want to stay away from investments in companies that are not supportive of their community This is a key consideration for advisors and their clients to incorporate into the financial plan and…, Estate planning, The 2015 Supreme Court ruling provided immense progress on the financial and legal rights to same-sex couples Legal documents drafted prior to 2015 may need to be revisited and new legal documents such as trusts need to reflect the wishes of the individuals Protecting partners and children requires couples update their estate plans to ensure that there is a plan in place in the event of death or…, Finding the right advisor, Most people who partner with a wealth advisor have come to the realization that wealth planning is rarely a DIY endeavor and that the partnership with a professional can make all the difference in the quality of their lives Planning and preparation are key to creating a well-thought financial plan that can address your concerns and help set you and your family on a trajectory to meet both short-…, Published January 2025, 1 https//wwwinvestopediacom/how-to-find-an-lgbtq-friendly-financial-planner-5186139 2 https//financeyahoocom/news/choose-lgbtq-inclusive-financial-professional-211957060html 3  https//wwwforbescom/sites/brianthompson1/2019/06/16/5-ways-lgbtq-financial-planning-is-different/sh=5e719f437a39 https//wwwbarronscom/advisor/articles/gay-families-financial-planning-challenges-51626990118tesla=y  

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP, ®, FRM, ®, ChFC, ®, Executive summary, Financial assets in general perform very poorly in high inflation environments with negative inflation-adjusted (real returns being the norm  Among fixed income assets Treasury Inflation Protected Securities (TIPS do a decent job of mitigating the negative effects of inflation which may or may not translate into positive real returns In terms of fixed income the optimal inflation-hedging strategy…

What yesterday’s currency crisis reveals about tomorrow’s digital collapse, In the trillion-dollars-a-day world of currencies few events rival the drama of a speculative attack These moments — when traders bet against a currency with such force that central banks are forced to surrender — reveal the fragility of monetary regimes and the power of perception George Soros’s legendary bet against the British pound remains one of the most iconic examples Today governments are…, How to spot a peg in trouble, Pegged at an overvalued rate, Rising interest rates to defend the currency, Shrinking foreign reserves, Diverging economic fundamentals from anchor currency, Political uncertainty or lack of central bank credibility,   Soros vs the British pound In September 1992 George Soros and his Quantum Fund famously shorted the British pound earning an estimated $1 billion in a single day The backdrop was the enormous political economic and social upheaval that followed the devastation of World War II Out of that turbulence came efforts to unite European nations into a single entity to foster prosperity and ensure peace…, Reflexivity in action, Soros’s investment philosophy holds that markets are shaped by participants’ perceptions which in turn influence reality In foreign exchange this means belief in a peg can sustain it — until doubt spreads and the peg collapses from the lack of confidence , The episode reshaped UK monetary policy The pound floated freely inflation fell and the economy rebounded Ironically the forced exit from the ERM may have helped Britain more than staying in New money new targets The fragility of stablecoins If Soros’s attack on the pound exposed the political fault lines of a Europe in transition today’s speculative threats target a different kind of…, Fiat-backed stablecoins, (eg USDC USDT rely on centralized issuers maintaining 11 reserves If those reserves are mismanaged misrepresented or inaccessible during a crisis confidence evaporates, Algorithmic stablecoins, (eg the now-defunct TerraUSD use smart contracts — self-executing code — to balance supply and demand But when sentiment turns these mechanisms can spiral into collapse as seen in Terra’s $40 billion implosion in 2022   Anatomy of a modern speculative attack Unlike Soros’s high-profile currency short today’s attacks are decentralized fast-moving and often anonymous, Smart contract exploits, Hackers have drained millions by exploiting vulnerabilities in DeFi protocols that issue or support stablecoins One 2025 attack on @0xinfini — a DeFi stablecoin neobank — led to a $495M USDC theft triggering a brief depeg, Liquidity stress tests, Speculators can target thinly collateralized stablecoins by triggering mass redemptions forcing issuers to liquidate reserves or halt withdrawals — akin to a digital bank run, Cross-chain arbitrage and flash loans, (short-term uncollateralized loans used to assist with arbitrage liquidation and collateral swaps Sophisticated actors use automated strategies to exploit price discrepancies across platforms draining liquidity and destabilizing pegs in minutes   Regulatory armor or Achilles heel Governments are racing to impose guardrails Legislation like the US GENIUS Act EU’s MiCA framework and Hong Kong’s…, Centralization, Regulatory compliance often requires stablecoin issuers to operate like banks concentrating risk and undermining cryptocurrency’s decentralized ethos, Jurisdictional arbitrage, Issuers may shift operations to less regulated regions creating blind spots for enforcement and systemic risk   The New Soros Todays speculator isn’t a lone financier — it’s a constellation of actors hedge funds probing DeFi vulnerabilities anonymous coders launching flash loan attacks and malicious cyber criminals exploiting a nation’s digital infrastructure The battlefield has shifted from…, Could Stablecoins Trigger the Next Attack, Pegged to fiat but backed by reserves that may be opaque, Vulnerable to redemption runs if confidence falters, Could pressure emerging market currencies if widely adopted,   Confidence Is currency Speculative attacks are tests of belief When investors lose confidence in a currency regime even the strongest central bank can falter As Soros proved markets move not just on fundamentals but on perception In currencies trust is everything And once it’s broken recovery is never easy  , Explore more currency insights, Local Extrema Predictor (LEAP, Mesirow Currency’s Local Extrema Predictor (LEAP is a technical strategy designed to identify mean reversion in financial time series with a focus on FX spot rates READ ARTICLE, Managing risk with FX futures, Hedging and speculation with currency futures - understanding the basics READ ARTICLE

The power of “compound interest” is a concept that has been around for a long time and its benefits can be applied to a number of strategies designed to help accumulate wealth over time The secret is to start early and let time work its magic In this article we share some ideas that leverage the power of uninterrupted compounding to help our clients accumulate wealth at an early age Readiness…, Example of compound interest, Let’s review the basics of compound interest by looking at two 25-year-old investors who make different decisions about contributing to their 401(k Investor A contributes $19000 to his 401k for the next 15 years and then stops contributing Investor B decides she can’t afford to contribute to her 401k right now and waits until she is 35 before contributing She then contributes $19000 for 30 years…, Ideas to leverage uninterrupted compounding, Listed below are three ideas designed to leverage the power of uninterrupted compounding to help build wealth at an early age 1 | Fund a Roth IRA for your children and/or grandchildren Many of our clients – regardless of their income level – use Roth IRAs or Roth 401(ks as part of their wealth accumulation plan In these accounts after-tax money is contributed growth is tax-free there is no…, Age, Year, Childs Income, Contribute, Return, Dollar Amount, 12 2 $500 $500 500% $1051 14 4 $1500 $1500 500% $3709 16 6 $3000 $3000 500% $9189 18 8 $5000 $5000 500% $19331 20 10 $15000 $6000 500% $33088 22 12 $70000 $6000 500% $48779 24 14 $80000 $6000 500% $66079 26 16 $90000 $6000 500% $85152 28 18 $100000 $6000 500% $106180 30 20 $110000 $6000 500% $129363, Assumptions, 5% straight-line annual returns $7000 maximum contribution to Roth IRA if you’re under age 50 $8000 if 50 or older (Tax Year 2024 IRS Law Child begins full-time work at age 22 earning a salary grown by $6000 annually Assumes Modified AGI falls within income limitation for Roth Contribution   2 | Be strategic about college funding With the average cost of a private university being upwards of $…, In summary, The power of uninterrupted compounding is not a new concept but it is a proven one Applying this concept as part of a strategic wealth management plan allows our clients to help achieve the goals they wish to accomplish We gave just three examples above We recommend you speak with your Mesirow wealth advisor about how you can leverage these ideas as port of your financial plan, Published March 2025, Sources https//wwwirsgov/retirement-plans/roth-iras https//wwwsavingforcollegecom/article/how-much-can-you-contribute-to-a-529-plan https//wwwsavingforcollegecom/calculators/college-savings-calculator https//mydimensionalcom/insight/special_postings/234992/