Month: April 2026

Many diligent wealth-builders fail to realize they have a permanent business partner—the IRS certainly does not. As nationally syndicated CPA Ed Slott wisely observes, “Your IRA is an IOU to the IRS.”

The primary goals of most wealth-builders are to a) maximize after-tax lifetime income and b) transfer remaining wealth to heirs as efficiently as possible. Inflation and taxes can make accomplishing these goals more challenging. Since we have limited ability to control inflation, thoughtful tax planning can play an important role in growing and retaining wealth in America.

Consider the following general tax strategies as you thoughtfully construct your own plan to help manage the impact of taxes on your hard-earned capital:

• In the early working years of life, when taxable income and tax brackets are often lower, individuals may benefit from prioritizing contributions to Roth accounts, which do not provide a current tax deduction but do offer tax-free withdrawals later in life. In the middle working years, when income and tax brackets are typically higher, a combination of Traditional accounts (which offer a tax deduction on contributions and tax-deferred growth) and Roth accounts may be appropriate. In the later working years, as income and tax brackets reach their peak and retirement approaches, some individuals may consider emphasizing Traditional contributions.

• In the early retirement years, when taxable income and tax brackets may be lower (but potentially higher in the future), some individuals consider taking distributions from Traditional accounts to “fill up” lower tax brackets. As Ed Slott also notes, “Never waste a low tax bracket with short-term thinking!” In the middle retirement years, as income and tax brackets evolve, withdrawals may be taken strategically from both non-retirement and Traditional accounts, with consideration given to projected future tax rates. In later retirement years, when taxable Social Security income and Required Minimum Distributions may be highest, accessing tax-advantaged income sources—such as Roth IRAs, HECM reverse mortgages, or cash value life insurance—can be effective tools for managing taxes in higher-bracket years, depending on individual circumstances.

Please watch for next week’s first issue of Old Forge Wealth’s new weekly campaign, Tuesday Tax Facts, which we hope will keep you well informed about new tax legislation, pertinent tax deadlines, and a range of advanced tax-planning strategies. As always, we welcome your feedback.

Think about it, and may God bless your tax management efforts, Shaun

“Tax preparation costs you money; tax planning makes you money” ~Ed Slott                                                                                                                                                                                 

“Render to Caesar the things that are Caesar’s, and to God the things that are God’s” ~Matthew 22:21

Disclosure(s)

Old Forge Wealth Management, LLC is a registered investment adviser. This material is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. The views expressed are general in nature and may not be appropriate for all individuals. Tax laws and regulations are subject to change and may impact the relevance or effectiveness of the strategies discussed. There is no guarantee that any strategy will achieve its intended results. You should consult with your financial advisor, tax professional, and/or legal advisor before implementing any strategy discussed herein.

While life is primarily about things far more important than wealth-building, financial freedom does provide mentionable liberties, like the opportunity to give to those in need, the means to see earth’s great natural wonders, the chance to travel and experience diverse cultures, the blessing of working voluntarily, the knowledge to teach financial principles to others, and the joy of leaving a meaningful legacy to heirs. Since financial literacy is not consistently taught in America’s schools, it is generally acquired in adulthood, long after our peak learning capacity has come and gone. Practice the following simple Money Rules that may help improve your wealth-building habits:

50/30/20 Budgeting Rule

• 50% of take-home pay covers essential expenses
• 15% is saved for retirement
• 5% is saved for short-term needs
• 30% is flexible spending

10% Debt Rule

• Maximum 10% of gross income is for debt payment

3-Day Large Purchase Rule

• Wait 3 days before big purchases
• Can help reduce impulse buying

30-Day Luxury Purchase Rule

• Wait 30 days before luxury buys
• Many discretionary purchases lose their appeal over time

20/4/10 Car Purchase Rule

• 20% Down, 4 year loan, 10% payment (keep total transportation costs (loan, insurance, gas) under 10% of gross monthly income))

9 Month Emergency Savings Rule

• Emergency fund equals 9 months’ total household spending

15% Savings Rule

• Invest 15% of gross income for retirement (or more) as early as feasible

Retirement Savings Rule of 25x

• Retirement savings equals 25 times total annual spending

4% Withdrawal Rule

• Seek to limit withdrawals from retirement savings to 4% of total value

Think about it, and may God bless your wealth-building efforts!

Shaun

“Wealth gained hastily will dwindle, but whoever gathers little by little will increase it” ~Proverbs 13:11

“A good man leaves an inheritance to his children’s children” ~Proverbs 13:22

Disclosure(s)

Old Forge Wealth Management, LLC is a state-registered investment adviser. Registration does not imply a certain level of skill or training. This material is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or financial advice. The strategies and guidelines referenced are general in nature, may not be suitable for all individuals, and are not guarantees of future results. All investing involves risk, including the potential loss of principal. Advisory services are only offered to clients or prospective clients where Old Forge Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. Financial decisions should be made based on your individual circumstances and in consultation with appropriate professionals.

A mountaineer can increase both climbing success and safety by learning to discern what cloud formations reveal about impending mountain weather. Since the official mountain forecast is little more than an indication of the conditions which “might” prevail over a maximum period of 48 hours, the ability to discern the clouds becomes essential. A knowledge of how interest rates affect asset values is equally valuable for the investor, who can use that information to potentially get positioned in front of money flows. Consider the fundamentals of changing interest rates:

• Time Value of Money: every asset is essentially worth the present value of its future cash flows. This present value is calculated using a discount rate which is heavily influenced by interest rates, which have the following effects:

Higher interest rates → higher discount rate → lower present value

Lower interest rates → lower discount rate → higher present value

When rates rise, future cash flows become less valuable today, and asset prices historically tend to fall. Conversely, when rates fall, future cash flows become more valuable today, and asset prices historically tend to rise.

• Relative Yields: interest rates also determine the baseline return you can get from “safe” assets like government bonds, which creates the following comparison framework:

Higher rates → Treasury yields rise → risky assets less attractive

Lower rates → Treasury yields drop → risky assets more attractive¹

• Asset-Specific Effects: Bonds have an inverse relationship to interest rates; when rates rise bonds values drop because new bonds pay more. The future earnings of Stocks are discounted as interest rates rise because safe investments pay more (stocks forced to compete with bonds for investor capital); growth stocks are especially sensitive. Real Estate values historically tend to decline as interest rates rise due to higher mortgage rates, which decreases affordability.

Bond markets are often viewed as a key signal of economic expectations due to bond investors possessing a deep understanding of the effects interest rates have on the Time Value of Money, Relative Yields, and the values of Specific Assets. Strive to ingrain these relational principles into the foundation of your investment paradigm, and then extrapolate them further by understanding rates don’t need to change to impact asset values, they merely need to surprise expectations. Consider that recently the stock market was thought to have already “priced-in” two additional 2026 Fed rate cuts; what effect would zero additional 2026 rate cuts have on Treasuries? Bonds in general? Stocks? Real Estate? Commodities? Collectibles? Why?

God bless your wealth-building and financial planning efforts as you deepen your understanding of the effects interest rates have on every financial factor.

Shaun

“Interest rates are to asset prices like gravity is to the apple. They power everything in the economic universe” ~Warren Buffet

“You ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest.” ~Matthew 25:27

1 Stansberry Research, Daily Wealth, “One Thing That Powers Everything in Finance”, Doc Eifrig, April 9, 2026

Disclosure(s)

This material is provided by Old Forge Wealth Management, LLC (“Old Forge”) for informational and educational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. This commentary is general in nature and does not take into account the specific investment objectives, financial situation, or needs of any individual. The views expressed are those of the author as of the date of publication and are subject to change without notice. Any forward-looking statements or expectations are based on current assumptions and are subject to change. All investments involve risk, including the potential loss of principal. Past performance and historical relationships are not indicative of future results. Information contained herein is derived from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Old Forge Wealth Management, LLC is a registered investment adviser. Registration does not imply a certain level of skill or training. This content is not intended to create, and receipt of it does not constitute, an advisory relationship.