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For many retirees, Social Security is a key piece of the income puzzle. But when and how you claim your benefits can affect the amount you receive over time. A little strategy and planning can help you make the most of what you’ve earned.

• Know How Your Benefits Are Calculated

Your benefit amount is based on your 35 highest-earning years. If you haven’t worked that long, each missing year counts as zero—and that can drag down your average. Working additional years could increase your benefit amount, especially if you’re earning more now than you did earlier in your career. Those additional years can replace lower-earning ones and increase your overall payout.

• Understand Your Full Retirement Age

Your Full Retirement Age (FRA) is when you can collect 100% of your earned benefit. Depending on when you were born, it falls somewhere between 65 and 67. If you claim benefits before reaching FRA, you’ll receive a smaller monthly check—but wait a little longer, and your payments will grow.

• Time It Right

You can start collecting benefits at age 62, but you’ll only get about 70% of what you’re eligible for. Waiting until your FRA gets you the full amount, and if you hold off until age 70, you could receive as much as 132% of your benefit. Simply put: the longer you wait (up to age 70), the bigger your monthly check.

• Make the Most of Spousal Benefits

Married couples may be eligible for spousal benefits, which can be up to 50% of the higher earner’s benefit. Typically, the lower-earning spouse can start collecting earlier while the higher-earning spouse delays, allowing their future benefit amount to increase through delayed claiming. Once the higher earner hits 70, the couple can switch to filing against that person’s earnings history.

• Check Your Social Security Statements

Each year, the Social Security Administration (SSA) sends out statements showing your estimated benefits and your earnings history. It’s easy to toss it aside—but don’t! Reviewing your earnings record is important. Mistakes happen, and an error in reported income could reduce your benefit. If you spot something off, contact the SSA to get it corrected.

• Increase Your Earnings

If your projected benefits aren’t quite where you’d like them to be, consider finding ways to boost your income. A raise, a side job, or even working part-time for a few more years may increase your 35-year earnings average—and your future benefit.

• Be Careful If You Work in Retirement

You can work and collect Social Security at the same time, but there are income limits before you reach full retirement age. In 2025, if you earn more than $23,400, the SSA will deduct $1 in benefits for every $2 you earn over that limit. Once you hit full retirement age, the limit rises, and the reduction drops to $1 for every $3 earned over $62,160.

• Don’t Forget About Taxes

Up to 85% of your benefits may be taxable, depending on your income and filing status. Remember, Social Security counts alongside other income sources like wages, pensions, and investments. It may be a good idea to work with a tax or financial advisor to plan ahead and avoid surprises at tax time.

Social Security isn’t one-size-fits-all. The right claiming approach depends on your age, health, income, and long-term goals. Taking the time to understand your options—and making a plan that fits your situation—can help you make the most of your benefits and enjoy a more confident retirement.¹ God bless your Social Security maximization efforts!

Shaun

“Be wise as serpents and innocent as doves.” ~Matthew 10:16

1 Smart Asset, “10 Strategies to Maximize Social Security Benefits”, August 12, 2025

Disclosures

This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, or financial advice. The information contained herein is based on sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Social Security rules, tax laws, and benefit amounts are subject to change.

Old Forge Wealth Management, LLC is a registered investment advisor.  Registration does not imply a certain level of skill or training.

For personalized advice regarding your situation, please consult a financial, tax, or legal professional.

Mountaineers who fail to identify and effectively mitigate specific risks often become valuable examples for more studious climbers. Just as hypothermia, personal injuries, white-outs, slip-and-falls, avalanches, and crevasse falls threaten the mountaineering expedition, the following hazards endanger an equally challenging endeavor, the Retirement Income Plan. Identify and mitigate the following risks to help improve the sustainability of your retirement income and lifestyle:

1. Market Risk

Market fluctuations can significantly impact retirement portfolios, especially for those relying on investments to generate income. A major downturn can erode account balances just as retirees begin withdrawing funds. Diversification across asset classes and maintaining an appropriate mix of growth and defensive investments may help mitigate this risk.

2. Interest Rate Risk

Interest rate movements affect both bond values and the income retirees can earn from fixed-income investments. Rising rates can reduce the market value of existing bonds, while prolonged low rates can make it difficult to generate sufficient income safely. A laddered bond strategy or a mix of short- and intermediate-term instruments can provide balance and flexibility.

3. Sequence of Returns Risk

The order in which investment returns occur matters greatly in retirement. Experiencing negative returns early—while taking withdrawals—can permanently damage a portfolio’s longevity. Managing withdrawals strategically, holding a cash reserve, and using income “buckets” or guaranteed income sources can help offset this timing risk.

4. Inflation Risk

Even modest inflation erodes purchasing power over time. A dollar today won’t buy as much 20 years from now. Including assets that tend to outpace inflation—such as equities, real estate, or inflation-protected securities—coupled with a delay in Social Security benefits can help maintain the real value of income over time.

5. Long-Term Care Risk

The potential cost of extended care late in life poses one of the most significant threats to retirement security. Whether provided in-home or in a facility, long-term care expenses can quickly deplete savings. Options like long-term care insurance, hybrid life/LTC policies, or setting aside dedicated assets can provide protection.

6. Income Tax Risk

Future tax policy is uncertain. Rising federal or state taxes could reduce net retirement income, particularly from taxable accounts or required distributions. Proactive tax diversification—using a mix of taxable, tax-deferred, and tax-free accounts—offers flexibility to manage withdrawals efficiently under changing tax regimes.

The Bottom Line

A successful retirement plan isn’t just about growth—it’s about managing financial risks, much the way an accomplished climber manages mountain perils. By addressing these key threats with thoughtful diversification, flexible withdrawal strategies, and prudent contingency planning, retirees may increase their confidence that their income will endure as long as they do. Think about it and may God bless your planning efforts, Shaun.

“The prudent sees danger and hides himself, but the simple go on and suffer for it”. ~Proverbs 22:3

“Where there’s no guidance a person falls, but in an abundance of counselors there is safety”. ~Proverbs 11:14

Disclosure(s)

The information provided herein is for education purposes only and should not be construed as personalized investment, tax, or legal advice.  Investing involves risk, including the potential loss of principal.  Past performance is not indicative of future results.  Any strategies discussed may not be suitable for all investors and should be considered in the context of an individual’s financial circumstances and objectives.

Old Forge Wealth Management, LLC (“OFWM”) is a registered investment adviser located in Rhode Island.  Registration does not imply a certain level of skill or training.

Examples and opinions expressed are full illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any security.  All information is believe to be accurate at the time of publication but may change without notice.

Building wealth is less about luck and more about disciplined principles applied consistently over time. Below are ten foundational principles, each with practical examples to help guide your financial journey.

1. Increase Earning Power

Invest in yourself through ongoing education and specialization in your field.
Example: An engineer who earns additional certifications may qualify for higher-paying roles, increasing long-term income.

2. Carry Some Cash

Maintain an emergency fund of 6–12 months of household expenses. Keep cash in your portfolio to hedge downturns, seize opportunities, and stay disciplined.
Example: During a market dip, an investor with available cash can buy quality stocks at discounted prices.

3. Keep Debt Low

Strive for a low debt-to-equity ratio and aim to retire debt-free.
Example: A family that pays off their mortgage early frees up thousands in monthly cash flow for savings and investments.

4. Avoid Consumer Debt

Say no to impulse spending and ensure your household maintains a positive cash flow.
Example: Avoid financing a new car unnecessarily—opt for a reliable used vehicle and save the difference.

5. Invest 15–20% of Earnings

Regularly invest a portion of income using Dollar Cost Averaging in both equity and debt of capital-efficient businesses.
Example: Contributing monthly to an index fund smooths market volatility and builds long-term wealth.

6. Reinvest Dividends

Compound returns by reinvesting dividends from industry leaders over decades.
Example: A $10,000 investment in dividend-paying companies can multiply many times over if dividends are reinvested rather than withdrawn.

7. Protect Against Catastrophic Loss

Do thorough due diligence, diversify holdings, and maintain exit strategies for risky assets.
Example: A balanced portfolio of stocks, bonds, and real estate reduces the chance of a single market event wiping out wealth.

8. Manage Taxes Smartly

Plan to minimize lifetime taxes—pay more when in low brackets, and less when in high ones.
Example: Contributing to a Roth IRA while in a lower tax bracket can provide tax-free income in retirement.

9. Own the Right Insurance

Ensure you have the right type and amount of life insurance at the right price—avoid being “insurance-poor.”
Example: A young parent with term life insurance ensures family protection without overpaying for costly permanent policies.

10. Stay Disciplined Over Time

Wealth is built over years, not months. Commit to consistency, patience, and adaptability as circumstances change.
Example: A disciplined saver who invests steadily for 30 years often achieves financial independence regardless of market cycles.

These principles are not shortcuts—they are timeless guidelines. Applied consistently, they help individuals and families create resilience, seize opportunities, and ultimately achieve financial independence. Hold it loosely and God bless your efforts, Shaun.

“Give a portion to seven, or even eight, for you know not what disaster may happen on earth.”  ~Ecclesiastes 11:2

Disclosures:

The information provided in this blog is for educational purposes only and should not be construed as investment, legal, or tax advice. Investing involves risk, including the potential loss of principal, and past performance is not indicative of future results. Examples provided are hypothetical and for illustrative purposes only; they do not represent actual results and should not be relied upon for making financial decisions.

Old Forge Wealth Management, LLC is a registered investment adviser located in Rhode Island. Registration does not imply any level of skill or training. For advice specific to your personal circumstances, please consult a qualified financial professional.

A mountain guide can attempt to lead an expedition up a dangerous ascent but cannot force climbers to follow; that requires competence and trust. When the Federal Reserve begins to lower interest rates during a period of persistent inflationary pressure, it risks reviving a specter long thought consigned to the 1970s: stagflation. This toxic mix of stagnant growth, high unemployment, and elevated inflation is particularly dangerous because traditional monetary tools lose effectiveness—the very act of fighting one problem can worsen the other. Bond investors understand these things and are not following the Fed’s lead of an interest rate cut on Wednesday of this week, and are rather demanding more interest for the risk of holding U.S. Treasury debt. What gives?

Sticky Inflation Meets Monetary Easing

Inflation that proves “sticky” tends to come from services, wages, or supply-side constraints rather than one-time shocks like energy prices. These underlying pressures are less sensitive to changes in interest rates. If the Fed eases too early, cheaper credit can reignite demand without resolving supply bottlenecks. The result: inflation plateaus or re-accelerates, rather than falling back to target.

Growth at Risk

Rate cuts are typically intended to cushion slowing growth or avert recession. But if inflation expectations remain elevated, households and businesses may demand higher wages and prices to protect purchasing power. This undermines real growth, erodes consumer confidence, and can deter investment. Instead of stimulating activity, lower rates may trap the economy in a cycle of weak output and sticky price gains.

Lessons from History

The 1970s illustrate how premature monetary easing deepened stagflationary dynamics. Policymakers oscillated between fighting inflation and supporting growth, eroding credibility. It took years of painful tightening under Paul Volcker to reset expectations. Today, while the structure of the economy is different, credibility and expectations remain central. A Fed perceived as too willing to tolerate inflation risks losing its anchor, making policy less effective over time.

Navigating the Trade-Off

The Fed faces a delicate balancing act. Cutting rates too soon could entrench inflation above target, forcing sharper hikes later and increasing recession risk. Waiting too long, however, could exacerbate financial stress and unemployment. Clear communication, credible inflation targeting, and close monitoring of wage and service-price dynamics are essential to avoid repeating the mistakes of the past.

Bottom line: If the Fed eases policy in the face of sticky inflation, it risks trading a short-term growth boost for the longer-term pain of stagflation—a scenario far more damaging and difficult to escape.¹

Following the 25-basis point cut in the fed funds rate on Wednesday, Treasury rates rose noticeably across the yield curve.² These are market rates driven by bond investors, collectively known to be the best economists in the world. This contrary move indicates that bond investors are calling the Fed’s bluff and warning of the risk of stagflation. Stay nimble and may God bless your wealth-building efforts! Shaun

“For the LORD gives wisdom; from his mouth comes knowledge and understanding” ~Proverbs 2:6

1 ChatGPT, September 19, 2025, “The risk of stagflation if the Fed cuts rates while inflation remains sticky”

2 U.S. Department of the Treasury, September 19, 2025, “Daily Treasury Par Yield Curve Rates”

This commentary is provided for informational and educational purposes only and reflects the views of the author as of the date indicated. These views may change at any time and without notice. Nothing contained herein should be construed as investment, legal, or tax advice, nor as a recommendation to buy or sell any security, index, or investment strategy. Certain statements may constitute forward-looking opinions, which are based on current expectations and assumptions; actual results may differ materially due to changes in economic conditions, interest rates, or market dynamics. The information used has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Past performance is not indicative of future results, and all investing involves risk, including the possible loss of principal.

Old Forge Wealth Management, LLC is a registered investment adviser located in Rhode Island. Registration as an investment adviser does not imply any particular level of skill or training. Additional information about our services can be found in our Form ADV, which is available upon request.

A fascinating and slightly unnerving aspect of technological advancement (TA) is the fact that everything ever learned is harnessed for further learning, causing the rate of advancement to accelerate continuously towards eventual parabolic growth. The chart resembles that of long-term compounding returns, and both resemble the bottom right quarter of a circle. A less understood phenomenon in the case of ‘TA’ is the inversion which occurs when a particular product or function approaches perfection. Product perfection doesn’t supersede additional learning; it invigorates a more useful process to displace itself! Consider the examples:

• The 2007 BlackBerry, with its seamless keyboard, instant e-mail syncing, and 3-Day battery life, was dubbed a “CrackBerry” by Wall Street due to executive addiction yet was displaced by the iPhone in 24 months, rendering the stock near worthless; today BlackBerry’s are no longer made.
• $50 AI-tutors, which package employable outcomes, are actively displacing $50,000 universities, which package credentialed knowledge.
• The farmer’s milk bucket became a portable, direct feed dumping station, then a direct line to the tank; today robots milk happier cows non-stop for wealthier dairy farmers who have more time and better knees.
• One needs but a short drive on either U.S. coast today to see the coming inversion of personal transportation. I’m excited to see the far more productive uses transportees will engage during ‘travel time’ as we grow accustomed to self-driving cars.

Josh Baylin, a senior analyst at Stansberry Research, astutely recognizes the greatest danger to a tech company in this redundant process isn’t early on when a company strives to gain market share, but later when “it gets so good at solving the wrong problem that it makes itself irrelevant”. Baylin suggests that in this accelerating, AI-driven tech world it is crucial for investors to identify companies refining nearly perfected processes and allocate less capital to them, and those introducing new processes which eliminate problems and steps and allocate more capital to them.¹ Might AI’s voice-first interface alter the human/computer discourse and displace Apple’s nearly perfected iPhone? Is this why Berkshire is reducing its Apple position in noticeable proportions? To what extent are you exposed to the same displacement risk? Can you identify emerging processes that are capable of inverting existing systems and displacing present leaders?

This is an important topic to consider in an age in which parabolic ‘TA’ causes more frequent process inversions and company displacements. Think about it, and may God bless your wealth-building efforts!

Shaun

“For the LORD gives wisdom; from his mouth comes knowledge and understanding” ~Proverbs 2:6

1 Stansberry Research, Daily Wealth, “Don’t Get Caught in the Perfection Trap”, by Josh Baylin, April 21, 2025

Disclosure(s):

This material is for informational and educational purposes only and should not be construed as investment, tax, or legal advice. References to specific companies or securities are for illustrative purposes only and do not constitute a recommendation or solicitation to buy, sell, or hold any security.

Old Forge Wealth Management, LLC and/or its clients may hold positions in securities discussed. Such positions are subject to change at any time without notice. Information from third-party sources is believed to be reliable; however, we cannot guarantee its accuracy or completeness, and the views expressed by third-party sources are their own and do not necessarily reflect the views of Old Forge Wealth Management, LLC.

Forward-looking statements reflect our current views and assumptions and involve risks and uncertainties; actual outcomes may differ materially. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results.

Old Forge Wealth Management, LLC is a registered investment adviser located in Rhode Island. Registration as an investment adviser does not imply a certain level of skill or training. Please consult your tax or legal professional regarding your specific situation.

It’s unlikely that a battle can be won against a misunderstood enemy. What will swiftly defeat one opponent will be taken and used against you by another. In mid-2021, Jerome Powell proclaimed that surging inflation-the arch enemy of America’s middle class-was transitory.  Several regional banks that believed him made large bets on long-dated Treasury bonds and no longer exist as a result. I have friends who are highly skilled in their professions, working full time, and yet slowly losing ground financially as inflation devours their saved capital year after year. Investing successfully in an inflationary environment requires doing so with the expectation that the dollar will lose purchasing power and asset prices will asymmetrically rise over time. Emergency savings serve several critical purposes.  But positioning the bulk of one’s long-term capital in cash savings today, even at 4% interest, is to invest with the expectation of declining prices, not rising prices. Building real (after-inflation) wealth while investing primarily in cash is impossible, and retaining it over the long term is equally unlikely. Let’s consider the issue that places Jerome Powell in a pickle as he prepares to speak for perhaps the last time today, and what we can learn and apply from it as investors.

The Fed is split on whether to lower interest rates in response to a weakening labor market, especially given recent upticks in inflation reports. A rate reduction may fuel inflation while leaving rates alone in a weakening labor market might usher in a recession. While trade tariffs are the present impetus bolstering price increases, the truth is America needs constant inflation because the debt load can never be repaid on honest terms and the only resolutions are an honest default, which swiftly delivers the consequences but also forces immediate reformation, or dishonest inflation, which multiplies the consequences exponentially but maximizes a deferral of them. U.S. central planners have clearly selected the inflation option, making it difficult for the Fed to help the economy when it needs it and more challenging for investors to accumulate real wealth. Millions of hard-working Americans are emboldened as their nominal wealth grows, even as they become poorer in real terms! The following practices may prove effective as you strive for good financial stewardship and ‘real’ wealth building:

• Control spending. Every dollar not spent will help you fight inflation on both sides of the balance sheet.
• Mitigate catastrophic risks with the right amount of the right type of insurance and with the smallest possible premiums. Battling two formidable foes simultaneously is unnecessary and unwise. We must fight inflation.
• Always carry an adequate emergency fund and maintain a cash position in your investment accounts. Cash will minimize disruptions in your financial plan and enable you to capitalize on attractive investment opportunities as they arise.
• Diversify your investment holdings and maintain an exit plan on risky assets from the time of purchase to mitigate market risk. Warren Buffett says avoiding a catastrophic loss is the most important rule in investing, and he’s right. Manage risk the way a Great Pyrenees dog guards a herd of sheep, never removing its eye from the flock.
• Have a tax plan and follow it. It’s not gross income, but net income that influences wealth-building. Like reduced spending, a lower tax bill fights inflation on both sides of the balance sheet. Strive to minimize lifetime taxes, not necessarily taxes each and every year.
• Maintain a low debt/equity ratio and manage debt as you would a pet scorpion: cage it, starve it, and if it hisses at you exterminate it! Leverage only makes financial sense when the borrowed money is invested productively after taxes and inflation-a task that is not easy.
• Work hard, improve specialization in your field, and trade-up when you can to earn a competitive income. Never stop learning.
• Invest with the goal of building a portfolio that generates more income than your earned wages. Inflation says a dollar today (a dividend) is worth more than the promise of a dollar tomorrow (growth). Both are important, but behavioral studies have concluded that spending income is more comforting than selling assets to spend growth.

Inflation is not a game; it’s bloody financial warfare. Have a tactical plan consisting of these and other measures, and may God bless your inflation-fighting, wealth-building efforts!

Shaun

“Inflation is taxation without representation” ~Milton Friedman

“You have sown much and harvested little…and he who earns wages does so to put them into a bag with holes.” ~Hagai 1:6

Disclosures:

Old Forge Wealth Management, LLC (“OFWM”) is a Registered Investment Adviser located in Rhode Island. Registration as an investment adviser does not imply a certain level of skill or training. OFWM may only transact business in states in which it is registered, or qualifies for an exemption or exclusion from registration.

This material is provided for informational and educational purposes only and should not be construed as personalized investment, legal, or tax advice. The information contained herein is derived from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Certain statements contained herein are forward-looking in nature and subject to change without notice; actual results may differ materially from those anticipated.

All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Nothing in this commentary should be construed as an offer to buy or sell any security. Clients should consult directly with Old Forge Wealth Management, LLC, and with their tax or legal advisors, before making investment decisions. Old Forge Wealth Management, LLC does not provide legal or tax advice.

Managing a productive vegetable garden for longevity is a far more complicated endeavor than most young gardeners understand. Since the four main crop types require different primary nutrients, annual plant rotation must be practiced to deter nutrient depletion. This necessitates an education in companion planting, or the proximate placement of ‘like’ species to save water and space while accessing primary nutrients towards maximum productivity. The nutrient base must still be replenished continually while controlling the PH balance, and a weed control program is required to ensure all fruit feeds the family, not bugs and critters. This is just the beginning of the program!

Building wealth during one’s lifetime, like tending a vegetable garden for a season, is an attainable goal for anyone willing to work hard, spend less than net earnings on subsistence, and invest the difference productively. Retaining wealth multi-generationally, however, like tending a productive garden for a lifetime, is a feat requiring higher levels of planning and is reserved exclusively for the very intentional wealth builder. Consider the four tiers of financial planning critical to multigenerational wealth retention:

• A Retirement Plan takes every factor into consideration to reveal the extent to which a future retirement is funded and provides specific solutions to resolve projected deficiencies. A sound retirement plan makes conservative assumptions with unknown factors, like future rates of return, tax rates, inflation rates, and increases in Social Security payments. It should be the first plan we construct because higher levels of planning for an estate that will be depleted trying to fund retirement may be a waste of precious resources.

• An Estate Plan seeks to maximize the efficiency and success with which wealth is distributed at the end of each generation’s earthly habitation. It also expresses the deepest convictions and purposes behind a person’s wealth-building efforts, and as such, once in place will become the guiding, or authoritative plan (read, “Estate Planning is a Vital Family Enterprise”, 7/10/2023). Work with an attorney who specializes in estate planning in your ultimate state of residence, and whom you trust and communicate well with.

• A Tax Plan, unlike tax preparation or tax management (read “Differentiating Tax Management and Tax Planning”, 5/16/2025), involves the use of special tools to minimize lifetime taxes, or even taxes over multiple generations to complement a family’s multigenerational wealth-building efforts. The thesis behind tax planning is to intentionally pay more taxes in low bracket years (and less taxes in high bracket years), with the goal of never missing a highly beneficial tax maneuver due to ignorance. Tax planning exceeds the habitual minimization of annual taxes in both purpose and effect.

• A Logistical Income Plan (read, “Planning the Intelligent Income Stream”, 9/20/2024) creatively identifies the right mix of the right income sources at the right time to source retirement income needs most efficiently, and in a manner consistent with one’s retirement, estate, and tax plans; now that is an exciting puzzle to solve!

May we remember to be generous with those in need as we strive to be good stewards with that which Adonai has entrusted to us, Shaun.

“I want to give my children enough money to do something, but not enough to do nothing” ~George Clooney in “The Descendants”

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

The opinions voiced in this material are general and are not intended to provide specific recommendations.

While mingling at Ed Slott’s Elite IRA Advisor Conference this week, an intrigued gentleman asked me to explain the difference between hiking and climbing. He seemed satisfied with the simple truth that hiking becomes climbing when special tools are required to give the mountaineer a technical advantage to safely ascend otherwise dangerous terrain. This seems to me a good analogy to express the vast difference between tax management, or the rote minimization of taxes every year, which resembles hiking, and tax planning, which involves the use of special tools to minimize lifetime taxes, or even taxes over multiple generations to complement a family’s multigenerational wealth-building efforts, which better resembles climbing. I’d like to peel a layer or two from this onion in an attempt to convince you that tax planning far exceeds tax management in both purpose and effect.

Tax preparation is the simple task of preparing a tax return to be filed, and in our analogy equates to packing the kit for a hike (but does not actually involve hiking or climbing). Many of you have expressed frustration in how seldom your CPA goes beyond preparing your return to offer useful tax counsel. I believe the issue is sufficient to warrant offering such a professional the ultimatum due to the excessive hidden cost of their non-participation. That said, mere tax management may actually be a costly copout masquerading as thinking or wisdom. The vast majority of the financial plans I construct indicate future RMDs will alone push the IRA holder into a higher tax bracket by mid-retirement, which doesn’t even account for the possibility of a future income tax hike! Do you think tax rates might increase when the printing press is removed from the central bank, an event history suggests may be a certainty? How about our unfunded social programs, interest on the national debt and yearly deficits, might these present a need for higher government revenues in your lifetime, or if you are a multigenerational wealth-builder, the lifetimes of your children?

There are important reasons why families that are successful at building and retaining wealth multi-generationally appropriate significant energy and investment towards advanced tax planning, and here are some of the beneficial strategies they utilize:

• Health Savings Accounts offer the most beneficial tax treatment in the U.S., providing the money is used to cover eligible future medical expenses, combining the tax deductibility of contributions offered by the Traditional IRA with the tax-deferred growth and tax free withdrawals of the Roth IRA.

• Roth IRAs funded by after-tax contributions, conversions from non-deductible Traditional IRAs (Back Door Roth), or Strategic Roth Conversions during low-bracket years, which offer tax deferred growth and tax-free withdrawals for the lifetime of the account owner (once the 5-year rule is satisfied) AND for 10 additional years for non-eligible designated beneficiaries.

• Qualified Charitable Distributions (starting at age 701/2) allow for tax-free withdrawals from Traditional IRAs when paid directly to a 501(c)(3) charitable organization, reducing future RMDs which can otherwise push an account holder into a higher bracket and increase both Medicare surcharges and taxes on Social Security payments.

• Net Unrealized Appreciation (NUA) allows the highly appreciated company stock held in a 401(k) to be taxed as a capital gain instead of as income. Speak with a professional and do not attempt to process this yourself.

• Section 327 allows surviving spouses to elect to be treated as the deceased employee for the purpose of RMDs, which can meaningfully reduce mandatory taxable distributions.

• Timing the downsizing of a primary residence around appreciation approaching the capital gain exemption limit ($250,000 for individuals and $500,000 for married couples who co-own and cohabit a home) resets the clock on capital gain exemptions.

• 1031 and 721 tax-free real estate exchanges defer capital gains taxes on highly appreciated real estate investment properties, and in cases where the account holder dies still owning the UP-REIT, can eradicate them to the next generation due to the step-up in basis.

These are but some of the ways savvy tax planning can reduce the burden of taxes on a family, yet sufficient evidence suggesting the benefits of tax planning far exceed mere tax management. God bless your efforts towards stewardship, Shaun.

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

The opinions voiced in this material are general and are not intended to provide specific recommendations. The economic forecasts set forth in this commentary may not develop as predicted. Diversification of portfolio holdings does not necessarily protect against loss or guarantee returns.

President Trump’s tariffs are a ploy to reduce the U.S. trade imbalance and restore domestic manufacturing, but initiative goals indicate the replacement of tens of millions of foreign production jobs,¹ by a U.S. economy with only 7 million working-age unemployed, and only 2 million receiving benefits.² The extent to which the President will achieve his “re-shoring” goals in four years’ time is still in question, but whether man or machine will perform the vast majority of all new manufacturing jobs in America, is not. Add expensive labor costs and a lack of trade skills to America’s worker shortage problem, and we may have the recipe for a robotics explosion in America.

I know a successful third generation dairy farmer whose boys didn’t want to destroy their knees milking cows just because their ancestors did. Two milking robots later the boys are on the farm with healthy knees, the quality of life seems to be improved for everyone on the farm, the cows are noticeably happier and produce better, and the farm is a more profitable enterprise with a sturdier future, even considering the cost of two robots and a new barn.  This farmer made a wise decision, and his may be a textbook case study for what is about to play out across the U.S. manufacturing sector. Since, as investors, we deal in probabilities not certainties, let’s consider the set-up for this potential opportunity and the associated risks in the hope we can formulate an educated opinion on the matter, and later adopt an investment strategy with it.

The Set-Up

• The extent to which the Trump Administration can displace foreign manufacturing jobs with American jobs a strong demand will exist for functional automation.

• Artificial Intelligence (AI) is in place to drive and manage a surge in U.S. manufacturing with greater proficiency than ever.

• Highly functional and reliable robotic technology is in place and continues to develop.

• U.S. investors are sitting on $7 Trillion in cash today, a sum capable of fueling a surge in functional automation.³

The Risks for Derailment

• The Trump administration may fall short of securing anticipated trade deals, reducing the U.S. trade deficit, and reshoring tens of millions of manufacturing jobs, in which case anticipated demand for robots would fall short.

• Tariff uncertainties may introduce a near-term global recession/bear market that could stifle demand, reduce investment and delay a surge in U.S. robotics manufacturing.

• AI is in the development stage and lacks the energy infrastructure and energy production necessary to drive and manage an explosion in functional automation.

As you consider what actions this information should invigorate, I suggest:

• “Think, don’t act” as you do your due diligence, especially since the robotics sector and machinery industry are in bearish mode.⁴

• Start building a “Watch List” of businesses which dominate robotics production and implementation in America.

• Remember as you search for industry dominators that capital efficiency and free cash flow matter, especially in a developing industry with a potential recession on the horizon.

• Follow the tariff story and maintain a thoughtful assessment of the evolving probability Trump can achieve his U.S. manufacturing objectives.

• Think about how you will raise the necessary cash to capitalize on this investment opportunity, should it fully develop, when the Robotic sector turn bullish.

Think about it, and may the good Lord bless your efforts towards excellence in investing.

Shaun.

“Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.” ~Proverbs 22: 29

1,3 TradeSmith Daily, “Made in the USA, But Not by Humans”, April 30, 2025

2 AI Overview, Bureau of Labor Statistics, “US Unemployed”, May 2, 2025

4 Chaikin Analytics, Power Gauge, “BOTZ”, May 2, 2025

The opinions voiced in this material are general and are not intended to provide specific recommendations. The economic forecasts set forth in this commentary may not develop as predicted. Diversification of portfolio holdings does not necessarily protect against loss or guarantee returns.