Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! What Should You Do with an IRA You Do Not Need? You worked hard, you saved faithfully, and now your pension and Social Security cover your lifestyle. The IRA sits there, rising and falling with the market, but not really providing any real value to your life. Is doing nothing the best move? Sometimes it can be fine but, often, it's not the most purposeful choice. What I would consider is simple: give that account a role that reflects your values, your family priorities, and your goals for the years you care most about. Why This Feels Hard for Smart Savers Most retirees spent decades cutting away parts of their income and devoting it to saving and investing. Shifting to a season of drawing from savings and investments can feel wrong. It can feel like a violation of what you've accumulated over your lifetime... it can even feel like failure. That's bullshit... I don't see it that way. The point of saving was always freedom, options, and impact. Letting an account sit untouched forever can be a choice, but it can also be inertia in disguise. What I would consider is replacing the fear of spending down with a plan for using well. Using well is not waste, in fact, planning for intentionally using well is called alignment. Begin With Some Grounding Questions Before tactics, I think we all need to consider three basic questions: What would make the next five to ten years meaningfully better for you and your family What do you want the money to accomplish after you are gone What would bring your life more meaning - using it with alignment or letting it continue to accumulate? Real answers, not perfect answers, will sort your IRA into buckets of purpose. Some of that purpose may be enjoyment, some may be family support, some may be generosity, or some may be legacy design. Once those buckets exist, the account is no longer just a number on a page. Instead, it becomes an engine that funds a life you'll recognize when looking at pictures, a life you'll be proud of, and create family memories that no one can ever take away. Joy Today, On Purpose If travel lights you up, focus on the parts that change the experience. A seat that lets you arrive rested. A room that gives you quiet and a view you will still talk about next year. One dinner, one show, or one excursion that turns a good trip into a favorite memory. If the outdoors is your lane, choose gear that gets used. A road bike that fits your body. A kayak that tracks well and keeps you on the water. Garden tools that make time outside feel like therapy, not work. The goal is not to buy toys that gather dust but, rather, to fund memories and energy. Start small so you can measure how it feels to spend that money. If a small upgrade added real value, repeat it with confidence. If it felt like fluff, skip it and redirect the dollars to a different purpose. Spending money can be a trial-and-error process that can lead to immeasurable value later. A Living Inheritance You Can See Many parents and grandparents prefer to help while they can witness the impact. I would consider small, steady gifts tied to real needs. Clearing a lingering high interest balance your adult child cannot seem to kill gives them oxygen and momentum Seeding a 529 for a grandchild and making the contribution part of a birthday tradition builds a story that the child will remember Covering a critical home repair reduces stress without undermining responsibility Funding a certification or licensure that boosts a career can change a decade The dollar amounts can be modest. The relief can be huge. The point is not to rescue capable adults from every hard thing. The point is to turn money into momentum and to do it in a way that respects work and accountability. If you pursue this path, document gifts cleanly, keep the pattern consistent, and set expectations early. Boundaries and generosity can live together. Charitable Impact That Is Simple to Run If generosity is central to your values, build a habit instead of writing a once in a decade check. Choose a short list of organizations that match your convictions. Set a yearly target and automate support so the habit does the heavy lifting. Share the "why" with your family and invite them into the story. Decide in advance what success looks like. You might want to see a certain number of local students attend a camp each summer, or a food pantry that never has to turn a family away, or a sanctuary that expands its work by one more acre each year. When you can see outcomes, you stay engaged, and the giving feels less like paperwork and more like purpose. If you like to roll up your sleeves, add a volunteer day each quarter. Money plus time is a powerful mix that builds meaning beyond the transfer itself. Future Flexibility and Clean Estate Design If you truly do not need the IRA for lifestyle, consider moves that simplify tomorrow. Review primary and contingent beneficiaries so the right people and charities inherit the right accounts. If you hold multiple accounts, decide which ones are best suited for heirs with different needs. Some heirs may need structure. Some may need flexibility. You can plan for both. In years when your income is lower, consider measured conversions to a Roth account. The goal is not to chase a perfect tax win. The goal is to reduce future tax friction, diversify your tax buckets, and give heirs cleaner options. Keep the steps moderate and matched to your broader plan, not one-off stunts that create surprise bills. Future you will appreciate the simplicity. Your executor will, too. Guardrails That Make This Comfortable A plan beats vibes. Create simple guardrails that keep the approach comfortable and repeatable. Set a legacy target for heirs or charities that feels right for your values and your balance sheet. Set a yearly budget for joy and giving that will be funded by the IRA. Make the budget real rather than aspirational so you can stick to it during quiet markets and noisy markets. Automate monthly or quarterly transfers from the IRA into a separate spending account that exists for these purposes only. Automation eliminates second guessing and reduces the chance that good ideas die in the inbox. Review once a year to confirm that spending stayed inside the lines, that gifts landed well, and that the legacy target still fits. Adjust for markets, health, and priorities. With guardrails in place, you can enjoy the money without guilt, and you will also know when to tap the brakes because the plan will tell you. Keeping Taxes Human Without Letting Taxes Be the Boss I have never seen a family regret matching withdrawals to goals. I have seen families regret letting the calendar dictate every decision. Coordinate gifts, charitable giving, and any conversions with your tax bracket and Medicare thresholds. Align timing so support arrives when it helps most. Stage family gifts so they build habits, not dependency. Fit any conversion into a year when the impact is manageable. Keep an eye on brackets and state rules, but do not let the tax tail wag the dog. The aim is fewer surprises and more control, not a gold star for squeezing every last dollar from the code. Clean execution with clear intent usually beats a complex maneuver that nobody wants to repeat. Required Minimums Still Matter Even if you do not need the cash flow now, required distributions will begin in your early seventies. Plan ahead so those dollars do not show up as an afterthought. Tie them to your purpose buckets in advance. Use them to fund the joy and giving budget. Use them to support a living inheritance rhythm. Use them to meet charitable goals in a way that feels clean and consistent. When distributions are part of the script, they stop feeling like a nuisance and start feeling like another tool that pushes your plan forward. If You Still Feel Stuck, Try a Pilot Some clients still feel a mental block even with buckets and guardrails. In that case, run a pilot. Move a modest amount from the IRA into checking this quarter and give the dollars a single job. Book a better flight that lets you arrive without back pain. Host a weekend with the grandkids and cover the fun. Make a donation that buys something tangible your favorite nonprofit can point to with pride. Afterward, ask a simple question. Did that feel like waste, or did that feel like life. Your honest answer will point the way. If it felt like life, keep the pilot running for another quarter and then formalize it in next year’s plan. If it felt flat, redirect to a different bucket and test again until you find the mix that fits who you are. When Leaving It Alone Is the True Goal Some readers decide that they truly want the account untouched for life. That is a valid choice. If that is your goal, still be intentional. Confirm beneficiaries and contingents Keep records tidy and stored in a place a trusted person can access Make sure someone knows where the accounts are and how to reach your advisor Consider a short letter of wishes that gives heirs context for the gift, along with encouragement and any practical guidance you want to pass along. When you choose purposefully to preserve, you remove the quiet doubt that can creep in later. Common Traps to Avoid Do not turn every decision into a tax contest that drains your energy. Wise planning matters, but perfectionism creates stress and often backfires. Avoid one time splurges that do not match who you are the rest of the year. It is fine to do one grand trip if it fits your story. It is better when that trip reflects what you value most. Do not rely on silent gifting that later creates resentment among family members who discover it after the fact. If fairness matters, define fairness in your family, write it down, and follow it. Do not let the market alone determine your mood. Balance matters, but purpose matters more, and purpose is under your control. Bottom Line IRAs are not trophies. They are tools. If your account is just sitting there, I would consider giving it a clear role that serves your values. Spend with intent where it adds real life. Support the people you love in ways that build momentum. Strengthen the causes you believe in with habits, not one offs. Simplify the future so heirs inherit with fewer surprises. Start small, automate where you can, review yearly, and let the plan evolve as your life evolves. The win is not a perfect spreadsheet. The win is a life that looks like you, funded by the savings you worked hard to build. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! This is the first post to launch something I’ve been building toward for a long time. I’m Jose Alvarez, owner of Harvest Horizon Wealth Strategies in Amery, Wisconsin. If you’ve found your way here, thank you for taking the time to learn about me, my firm, and what makes us different from the other wealth management firms in the area. My Background: From the Army to Advisory I didn’t start my career in finance. For the first ten years of my professional life, I served in the U.S. Army as a paratrooper and infantryman. I led reconnaissance operations across the world. That experience shaped who I am, but it didn’t directly translate into financial planning. After leaving the military, I pursued my MBA and entered banking in 2018. From there, I built a path into financial advising and ultimately became a CERTIFIED FINANCIAL PLANNER® professional. Over the years, I’ve seen the good and the bad in our industry. Those lessons led me to start my own firm. Why I Started Harvest Horizon Wealth I began in credit unions and banks, where the focus was often on selling mutual funds and annuities for commissions. Financial planning was rarely mentioned in my early career. Profitability tended to overshadow client outcomes. I knew I wanted something different—something client-centered, not sales-driven. Though I loved the company I worked for, it changed hands, and I had to find my own path. That’s why in March 2025, I launched Harvest Horizon Wealth Strategies as a Registered Investment Advisor (RIA) . Unlike brokerages or hybrids, we are fee-only . That means no sales charges (commissions), no product sales, and no hidden incentives. Our work is built entirely on the fiduciary standard—always acting in your best interest, without exception. What We Do (and Don’t Do) At Harvest Horizon Wealth, our work goes beyond investment management. We focus on comprehensive wealth management , which includes: Investment strategy Tax planning Estate planning Business transition strategies Family governance and wealth transfer planning What we don’t do is just as important. We don’t sell insurance or annuities. While we help you think about those needs, we don’t take commissions. Our advice remains independent and as close to conflict-free as we can get. Why This Matters Plenty of advisors use the word “ fiduciary ,” but not all are fiduciaries all the time. In many brokerage or hybrid models, fiduciary duty only applies to certain accounts or situations. With us, it’s the standard for every client relationship. Every time we make a recommendation, regardless of the situation, we adhere to this standard. That means when you work with me, conversations aren’t limited by corporate risk controls or sales quotas. We talk about taxes, estate planning, family preparedness, and business succession. Your financial life is bigger than the market’s daily performance. Who We Serve For high-net-worth families, the focus is often on tax strategy, estate design, succession, and preparing heirs. For families still building wealth, the conversations may center on automating savings, protecting income with the right insurance, and ensuring estate planning is in place to protect children. The situations differ, but the principle is the same: aligning your wealth with the life you want for yourself, your family, and your future. Looking Ahead This blog—alongside the companion YouTube channel, The Vault & Forge —is where I’ll share insights on the markets, the economy, the Fed, and even some policy developments that affect investors. Some readers will prefer to watch, others to read, but the goal is the same: keeping you informed and equipped to make better financial decisions. This is just the beginning, and I look forward to the conversations we’ll build from here. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! Let’s start with a familiar name: Robert Kiyosaki. Recently, Kiyosaki made another bold claim, saying a "civil war has begun" and urging Americans to put their cash into gold, silver, and Bitcoin. The problem with these “doomsday callers” is that they live on repeat. They make a dramatic call once, it gets attention, and then they spend the rest of their careers chasing that same lightning strike. The thing is... if you keep screaming about a storm coming, eventually you’ll be right. Markets are cyclical they'll ebb and flow. Good days come and are followed by bad days. But most of the time, these claims are wrong. We know that because markets, historically, have gone up about 75% of the time. At some point that won't be the case... fine... but I don't know that it'll happen any time soon. But if you ask people like this, they'll tell you it's right around the corner and I can’t help but wonder how they don’t get tired of being wrong. Five-Year and Ten-Year Performance I pulled up five-year charts for Bitcoin, Gold, Silver, and the S&P 500. Why five years? Because it was the easiest click. No cherry picking here... just good ol' fashioned laziness. Bitcoin:  up nearly 1,000% Gold:  up 75% Silver:  up 44% S&P 500:  up 82% Looking back over ten years, annualized returns stack up like this: Bitcoin:  84.5% S&P 500:  14.5% Gold:  11% Silver:  10% Those are strong numbers all around. Historically, the S&P 500 has averaged 9–10% annually over the last 60–70 years, so seeing the past decade hit 14.5% should be encouraging to investors in itself - regardless of its comparison to Bitcoin. The Missing Piece: Risk Returns only tell half the story. What really matters is the risk you take to get them. Ten-year annualized volatility: Bitcoin:  67% S&P 500:  18% Gold:  14.5% Silver:  26% For most people, it’s not realistic to master both your own profession and the nuances of investment risk analysis. It's too complicated. It's too convoluted. Frankly, it's boring a.f. to someone who might just be doing this to play around. If you're a nurse, teacher, engineer, construction worker, parent , etc... you have enough on your plate. You don't need to try to be an investment analyst, too. But for those of you who DIY investments, volatility (called standard deviation) is one of those concepts that’s critical but often overlooked. Standard Deviation in Plain English If you think back to high school statistics, you might remember the bell curve. One standard deviation (the dark blue middle of the curve) captures about 68% of outcomes. Two standard deviations (the light blue section) cover about 95% of outcomes. For the S&P 500 over the last decade (14.5% average return ± 17.7% standard deviation): One standard deviation range:  –3.2% to +32.2% Two standard deviation range:  –21% to +50% For Bitcoin (84.6% average return ± 67.1% standard deviation): One standard deviation range:  –17.5% to +151.7% Two standard deviation range:  –50% to +219% Many of the client I work with would have a hard time stomaching the volatility that comes from simply owning the S&P 500. Imagine having an investment make up the majority of your investment and carries a volatility window that is 5x that of the S&P 500... that’s a massive window. When you invest, you have to remember: It’s not just about potential upside. It’s about whether or not you can stomach the downside. Why I Don’t Own Bitcoin Here’s where I stand: I don’t own Bitcoin, and I don’t plan to. People assume non-owners fall into three camps: They’re bitter against it and everyone who's benefitted from it because they didn't invest and “missed the boat." It’s a generational divide (younger investors own it, older ones don’t) - I can agree with this stance. They don’t want to look foolish buying at $100k in 2025 when it used to be like $30k in 2019. I’m mid-30s, and I still don’t buy it. For me, the issue is intrinsic value. Bitcoin absolutely has a price , which is north of $100,000 per coin today. But price and value aren’t the same thing. I don’t believe the intrinsic value supports the price. When Bitcoin first came out, the fairytale was that it would replace global currencies. As far as I'm concerned, that was never realistic. It wasn't in 2009 and it's still not in 2025. I don't see a scenario where countries give up a major part of their sovereign strength and pride by giving up their currency for Bitcoin. Bitcoin itself doesn't have anything special. It's just the brand name of crypto. Blockchain, which Bitcoin operates on, is an immediate settlement system with very high levels of security and anonymity. Useful, sure, but not revolutionary enough to justify its current valuation. To me, at its core, Bitcoin is nothing more than a highly sophisticated payments processor. Because I believe this, I ran an exercise: if Bitcoin’s growth had mirrored other payment processors like Visa, MasterCard, PayPal, and Venmo (with a premium for sophistication), what would it be worth today? I asked ChatGPT to run the simulation and give me the potential outcomes. According to ChatGPT's simulations and given the inputs I gave it, Bitcoin should be worth about $2,400 per coin today . That’s a far cry from $100,000+ and only further solidifies why I don't own it. I don't care that people really want it... I don't believe it has the value reflected in the price. I don't feel a need to follow the herd - even if it costs me money. Final Thoughts Bitcoin has been an incredible performer in terms of returns, volatility, and even risk-adjusted measures like the Sharpe ratio. But I don’t own it because I view it as speculation, not investment. For me, the fundamentals don’t support the story. Could I be wrong? Maybe. But even if Bitcoin hits $10 million per coin, I’ll still sleep at night knowing I made my decision based on risk, value, and discipline. I don't lose sleep over not winning the Powerball drawing and I won't lose sleep over not holding Bitcoin. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! What Just Happened and Why It Matters A bipartisan group of 18 state attorneys general is asking a federal judge to reject Capital One’s proposed $425 million class-action settlement over allegedly shortchanging its customers. The states say existing 360 Savings customers were left at about 0.30% while new 360 Performance Savings customers saw 4%+, and that the deal would let the bank keep the unfair playbook. The settlement is structured as $300 million to class members plus $125 million in “additional interest” credits; Capital One denies wrongdoing. The AGs estimate the average loss was about $717, with typical payouts around $54, and argue the bank could retain $2.5+ billion in avoided interest. Reuters My opinion: this just reinforces - kind of publicly - what many of us already feel a lot of times... that it's profitable for mega-corporations to take advantage of customers because all they ever get is a slap on the wrist. They know the profit they'll make will outweigh the punishment the government will hand down when caught. Again... Capital One denies wrongdoing. Don’t Be Shocked... Here’s Why “Old vs New” Pricing Happens Speaking as someone who’s been on the inside: banks segment customers. Legacy products get sunset, new products launch with teaser economics, and marketing budgets flow to acquisition. Not to mention that when a bank set up these "specials," they often require you make them your primary bank - set up direct deposit, auto-pay, debit cards...etc. Is it fair? Some disagree. Is it common? Yes. And crucially, banks and credit unions are not fiduciaries to your idle cash ; they’re custodians of deposits and they optimize for their own spread - not yours. That’s not moral judgment, it’s business reality. What Savings Accounts Are (and Aren’t) Savings accounts exist to hold money safely and keep it liquid. They are not a growth engine. As of mid-September 2025, the FDIC national average savings rate is ~0.40% - a number of large banks can anchor to - while “high-yield” offers are materially higher for new money and new customers. FDIC So yes, you can earn more, if you’re willing to move. But constantly rate-chasing is a part-time job. The better fix is a cash policy. Cash Policy Example - Simple, Rules-Based Define the number. Target 3-9 months of fixed expenses - maybe more for someone within a year of retirement - plus any known lump costs due in the next year (taxes, tuition, a roof). That is your cash line. Automate the refill. Monthly or quarterly, drop cash back to target using interest, dividends, and small trims from appreciated positions. Above the line, cash is excess. Give excess a job. Stability (1–5 years): Short/intermediate, high-quality bonds, T-bills, or a ladder that matches upcoming needs. Growth (5+ years): Broad, low-cost equities and other long-horizon assets. Accept volatility, hedge with time. Use rules, not vibes. Rebalance on a schedule or with bands (for example, ±20% of target weights). Fund withdrawals from cash and Stability during equity drawdowns. Insurance > Teaser APYs When you keep meaningful balances, know which backstop you’re relying on: FDIC (banks): $250,000 per depositor, per bank, per ownership category. Joint accounts allow each co-owner a separate $250,000. IRAs are a separate category. FDIC+1 NCUA (credit unions): Mirrored limits - $250,000 per member-owner, per ownership category; joint and certain trust structures can increase coverage. NCUA+1 SIPC (brokerage): Protection if a broker fails, up to $500,000, including $250,000 cash - not protection against market losses. Many custodians carry excess SIPC on top that can cover up to hundreds of millions. SIPC Takeaway: Spread large balances thoughtfully across institutions and ownership types, and don’t confuse FDIC/NCUA with market guarantees - or SIPC with FDIC. Banks vs. Credit Unions: No Halos Credit unions market themselves as “member-owned,” and many offer great service. But in practice both banks and credit unions run the same product playbook when rates move: attractive new money offers, legacy tiers lagging. Neither structure makes an institution a fiduciary. What matters is your selection and your process. About That “Savings Rates Used to Be 11% in the 80s” Point True. Headline savings yields were double-digit in parts of the early 1980s. But so were mortgages and auto loans. Rate regimes are an ecosystem, not a gift. Comparing your 2025 savings APY to a 1981 outlier without the rest of the system (inflation, borrowing costs) misses the forest for the trees. What matters is your after-tax, after-inflation outcome across cash, bonds, and equities - organized by time horizon. Practical Workflow Example Inventory cash across banks and credit unions Map FDIC/NCUA categories and identify uninsured balances. Set the cash line Automate refills and move surplus to a T-bill ladder or high-quality bond sleeve inside the right account for taxes. Consolidate “high yield” accounts Reduce busywork while keeping rates competitive. Document a withdrawal order (taxable → tax-deferred → Roth, or a tailored version) Coordinate with required withdrawals and Social Security timing. Keep the Growth sleeve broad, low-cost, and globally diversified Rebalance on rules. Focus on being rational, not emotional Corrections and Clarifications from the Early Headlines Average loss vs. payout: The states peg the average consumer loss at ~$717, not $117. Typical payouts modeled around $54 are why they’re urging rejection. Reuters Settlement composition: The proposed $425M is $300M in cash plus $125M in additional interest credits; Capital One denies wrongdoing. Reuters Why this keeps happening: Product segmentation and acquisition economics - not a special “bank vs. credit union” moral divide - drive legacy-vs-new rate gaps. Rate backdrop today: The FDIC national average is about 0.40%, while competitive accounts still show ~4%+ despite a recent Fed cut. FDIC+1 Bottom line Don’t let outrage drive the plan. Define your cash number, place surplus with intention, protect it with the right insurance framework, and invest the rest according to time horizon. Banks and credit unions will keep optimizing for their P&L. You should optimize for your balance sheet. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! Why This Question Comes Up So Often I hear versions of this question all the time from folks who are working hard, building careers, and trying to make smart money decisions in real life, not in a textbook. Recently I came across a social media post were the author said they make about 78,000 dollars a year in base pay, up to 85,000 dollars with bonuses. They contribute 8 percent to their 401(k), and someone advised them to go to 10 percent. Their company matches up to 7 percent. They wondered if the extra dollars might be “better” in other investments. I get it. I have wrestled with the same trade-offs in my own life. I have set my own contributions to auto-increase over time, and I have intentionally split my savings between retirement accounts and a taxable brokerage account. I want my future to be funded, and I also want money that I can deploy for opportunities and experiences while I am still young enough to enjoy them. If you've asked yourself a similar question, you are not alone. The real issue is not 401(k) versus “other stuff.” The real issue is sequence and purpose. First, you lock in the free returns. Second, you push your savings rate higher in a way you barely notice. Third, you decide how much flexibility you need in your life and aim part of your savings at that goal. Start With the Highest-Return, Lowest-Risk Move: The Match The employer match is part of your compensation. Treat it that way, and do not leave it on the table. If your plan matches up to 7 percent, step one is to contribute at least 7 percent. I know that sounds basic, but many people miss pieces of the match because they change jobs, forget to set a percentage on day one, or let a raise come and go without adjusting their deferrals. The match is as close to a guaranteed return as you will find in personal finance. Capture every penny, every paycheck, every year. If you are already contributing 8 percent, and the match is 7 percent, you're clearing the first hurdle. Nice work. The Automation Trick That Quietly Raises Your Savings Rate Behavior beats tactics. If you automate good behavior, you'll win by default. I am a big fan of auto-escalation. At one of my past employers, the plan auto-increased contributions by 1% each year until you hit 10%. You could also set it to continue climbing beyond 105. It was incredibly effective, because a 1% change is barely noticeable in take-home pay, yet over time it adds up in a meaningful way. If you are at 8 percent today, setting your plan to increase by 1% per year could lead to some pretty dramatic benefits over time. In a few years you will be at 12%, and you will not have felt much pain getting there. I have used this approach personally, and I still use it with clients, because it respects human nature. Nobody wakes up excited to manually update payroll deferrals. Automation does it for you, quietly and consistently. What 401(k) Menus Usually Look Like, and Why That Matters Simpler menus are common. Participation and oversight drive those decisions more than anything else. Most 401(k) menus are short. You will see a handful of target date funds, a broad U.S. equity fund, an international fund, a bond fund, and a cash or money market option. Plans keep menus tight for several practical reasons. Simpler menus can lead to higher participation, lower confusion, and a cleaner fiduciary process for the plan sponsor. If too many employees disengage or fail discrimination tests, the plan risks top-heavy problems, which is a headache for the employer and, indirectly, for you. Target date funds are like one-size-fits-all shirt. They start aggressive when you are young, then they gradually get more conservative as you approach retirement. Will they work? Sure. Will they make you look good? Tough call. If a target date fund gets you invested and keeps you invested, I am okay with that. If you want more control, you can build with the core funds but as a DIY-er, it might be beneficial to keep it simple or under the advisement of your advisor. Where “Better” Might Be True: Outside Accounts and Customization Once the match is secured, extra dollars can flow to places that offer either better tax positioning or more flexibility for your life. Traditional IRA and Roth IRA If you want more investment choice than your 401(k) offers, an IRA gives you a much wider universe. You can build a low-cost, diversified portfolio with broad market funds, factor funds, sector funds, or individual stocks if you want to. The big choice here is tax treatment. Traditional IRA contributions, if deductible for you, lower your taxable income now and grow tax deferred. Roth IRA contributions are after-tax, but they grow tax free, and you do not owe tax on qualified withdrawals in retirement. Eligibility rules apply, so you need to make sure you qualify or consider legal routes like the backdoor Roth if appropriate. I like the Roth for younger savers who expect higher income later and value tax-free growth. I also like the simplicity. What you see is what you own. No future tax surprise if rates change. That said, every situation is unique, and a traditional IRA can still make sense for certain taxpayers who benefit from the deduction today. Taxable Brokerage Account If you hear me talk long enough, you will hear me say this. I love the flexibility of a taxable brokerage account. There is no early withdrawal penalty. You can invest in almost anything that fits your plan. You can harvest losses in bad markets to offset gains or income elsewhere, then reinvest and keep compounding. You do not get the clean tax treatment of a Roth, and you do have to plan around capital gains, interest, and dividends. Still, the liquidity and optionality are huge. This is the account that lets you do real life. Want to take your spouse and kids to Greece for two weeks next summer and pay cash without guilt? That can come from the brokerage account. Want seed money to start a business when the right opportunity shows up? That can come from the brokerage account. Want to help a child with a first car or an education expense without dealing with 529 restrictions? Again, brokerage. It gives you choices, and choices have value. A Simple Sequence I Like to Follow There is no perfect formula for everyone, but there is a sensible order of operations that works in most cases. Capture the full 401(k) match.  That is the floor. I don't lose free pay. Auto-escalate my 401(k) savings rate by 1 percent a year  until I've reached my long-term target - often 12 to 15 percent of gross income, including the match. Decide how much flexibility I want in my life over the next 3 to 10 years.  If the answer is “a lot,” I'll channel extra dollars into a taxable brokerage account. If I'm more focused on retirement tax planning, push extra to a Roth IRA or, if available and appropriate, a Roth 401(k) source inside my plan. If my plan offers a good Roth 401(k) and I'm in a relatively low tax bracket right now,  defer to the Roth. Once I have the retirement and brokerage pillars in place,  add in purpose-built accounts as needed - like 529 plans for education, HSA if available for triple tax advantages, or a UTMA for a minor. This is not about choosing a single best account. It is about assembling the right mix for real life, taxes, and goals. What I Do Personally I practice what I preach, and I adjust as my life changes. I run my own contributions on autopilot. For a long stretch, I had 12 percent flowing to my 401(k) from every paycheck. On top of that, a fixed monthly dollar amount went to a taxable brokerage account. My wife’s retirement account received a set contribution, and my son’s UTMA received another. When you add it all up, our household savings rate sits around 25 percent of income. The exact mix has changed over time, but the rule is the same: automate the future, then live the present with less guilt, less friction, and more intention. I like knowing the boring stuff is handled so our mortgage, car, normal bills, retirement savings, and our kid’s bucket all happen on schedule. That frees me up to spend without second guessing every coffee or lunch. I have already taken care of later, so I can enjoy now. A Word on Guilt and Spending If you automate a serious savings plan, you earn the right to spend without shame. Too many people feel bad about normal life because money advice on the internet can be loud and rigid. I am not interested in shaming anyone. If you hit your savings targets, keep your plan in balance, and avoid debt traps, go have some experiences. Take your spouse on a trip. Play golf with a friend. Bring your kids to a game. Your memories are part of your return on investment, even if a spreadsheet cannot measure them. This is where the brokerage account shines. It is the pressure valve that lets you participate in life without beating yourself up. It is not a tax shelter, but it is a freedom tool. I would rather see a client saving at a strong rate and enjoying their life than deferring everything to an unknown retirement that might not look the way they imagine. When “Other Investments” Actually Make Sense Sometimes the best move is outside the 401(k), not because the 401(k) is bad, but because your goals require flexibility or specialization. Here are a few cases where I often direct extra dollars away from the 401(k), after the match and basic targets are handled. Entrepreneurial runway.  If someone plans to start a business in the next few years, they'll likely need accessible capital. Build the brokerage balance first. Big-ticket goals inside 5 years.  House down payment, adoption costs, a sabbatical, or extended travel. The timeline is too short for retirement accounts to be useful. Specialized investment approach.  If someone wants to own individual stocks, factor tilts, or niche funds that their 401(k) does not offer, an IRA or brokerage account is the right tool. Tax bracket management.  If someone's in a lower bracket today than they expect in the future, Roth contributions can be powerful. If they sit in a high bracket right now and benefit from deductions, a traditional 401(k) or IRA may help. The point is to use the right tool for the current season of life. None of this requires turning your back on the 401(k). It requires a plan that respects both today and tomorrow. Portfolio Simplicity Beats Constant Tweaks Most of the win comes from your savings rate, your time in the market, and your fees, not from chasing the perfect mix every quarter. Inside the 401(k), a target date fund or a simple three-fund mix can help get started. In an IRA or brokerage account, you can add personalization, goals and needs-based investing, nuance if you enjoy it. I care about costs, taxes, and behavior. Costs and taxes are math. Behavior is where most plans fail. Automate the behavior, and the math has a chance to work. The Age Access Rules, Without the Jargon Penalties are real, and they can be avoided with planning. Retirement accounts are designed for retirement. In general, withdrawals before age 59.5 trigger a 10% penalty, plus taxes if the money is pre-tax. There are exceptions, especially inside 401(k)s for certain circumstances, but those are exceptions, not a plan. This is one reason I highlight the brokerage account so often. If you know there is a strong chance you will need money before age 59.5, I'd think twice before locking every dollar inside retirement accounts. Final Thoughts: “Better” Is Personal The 401(k) is not your enemy. It is a reliable workhorse. The question is how to fit it into a larger life plan. I have seen people thrive with a very straightforward approach - capture the match, automate the climb to a double-digit savings rate, then split the extra between retirement and a taxable brokerage account in a way that matches their life. When you do that, you buy two things at once. You buy future freedom, and you buy present quality of life. I care about both - for my family and my clients. If you want help dialing this in for your exact situation, that is what I do every day. We look at your income, benefits, household goals, and tax picture, then build a plan that you can stick to. The right plan is the one that you will follow, and the best time to start is now. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Follow The Vault & Forge  on Spotify for a weekly markets, economy, and life podcast! The Feel of the Fourth Quarter Every fall the rhythm changes. The federal fiscal year resets on October 1, holiday plans start swallowing weekends, and companies button up budgets. Money moves with a little more purpose. If you have watched markets for a few seasons, you can feel it before you see it. What The Tape Has Shown Since 1928, the average quarter for the S&P 500 has landed a bit above 2%, while Q4 comes in closer to 3%. Zooming in on monthly data since 1950, September is the only month with a negative average, February, June, and August are typically sleepy, and November - with December close behind - does much of the year’s heavy lifting. When We Enter Q4 Already Up There is a quirk that surprises newer investors. If the index is up 10% or more by the September 30 close, the average Q4 since 1950 has been a bit above 5%. Without that head start, the long‑run Q4 sits nearer 3%. No signal light flashes green because of this, but the wind tends to shift in your favor. Averages Hide Weather History is lumpy. The best Q4 on record, 1954, added more than 11% but the worst, 1987, took more than -23%. Those outliers live inside every long‑term average so planning only for calm seas is not a plan, it's a surefire way to be surprised every time the market dips. How I Use Seasonality (Without Trading the Calendar) I treat it as posture, not prediction. If Q4 tends to help, I want clients positioned to benefit without needing to guess the week-to-week. That means staying invested, keeping contributions on schedule, and letting written rebalance rules do the boring work when allocations drift. Taxes get the same attention - loss harvesting, charitable gifts from appreciated stock, and measured Roth conversions build quiet value that does not depend on a year‑end rally. Liquidity matters too. Adequate cash and short‑term reserves keep life from forcing sales just because headlines spike. Reality Check Averages are not outcomes. Calendar patterns can fail for long stretches. The odds of seeing  a down market rise the longer you are invested because you live through more seasons; the odds of finishing  ahead rise with time because compounding gets more swings at the ball. Both statements can be true, and both inform a patient process. Where This Leaves Us Yes, Q4 often helps. The data supports a cautiously optimistic posture, especially if the year is already positive heading into October. But the driver is still discipline - your savings rate, your mix of assets, your willingness to rebalance when it feels inconvenient, and the choice to hold enough cash so markets do not dictate your life. If you want to pressure‑test that mix before year‑end, I am here for that work. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

For More Content Like This, Visit The Vault & Forge Podcast on Spotify That MarketWatch “open letter” telling Jerome Powell not  to cut rates? It doesn’t land the way the author thinks it does. It's written well, makes an argument that I believe the writer believes, and makes a fair point about Fed independence. There's no doubt there. But then the article veers into a flawed, condescending take on those calling for a rate cut. Let’s dig into both sides of this. The Independence of the Fed Must Be Protected And yes, Trump is undermining that. I think we should all agree: The Federal Reserve should never be an extension of the White House. When President Trump openly, and nastily, attacks Powell, both personally and professionally, he's not just being critical, he's setting a dangerous precedent. The strength of our financial system depends on an independent central bank. It’s one of the reasons: The U.S. dollar is still the world’s reserve currency, Inflation hasn’t run out of control (despite post-COVID volatility), and Americans still have faith in the numbers they see in their retirement accounts. If the Fed bends to political pressure now, what happens when this administration is over? Do we just swap in a new Fed Chair every time a new President wants their own economic agenda rubber-stamped? That’s not monetary policy. That’s bullshit. So yes, I agree with the author: protecting the Fed’s independence matters. But… Where the Author Goes Completely Off Track This is where it gets messy. The writer claims people calling for rate cuts are showing “their own ignorance.” That’s not just wrong, it’s economically shallow. Let’s clear up what the Fed actually  controls: The Fed sets the federal funds rate That’s the overnight  interest rate banks charge each other. It does not  directly set Mortgage Rates 10-year Treasury Yields Corporate Bond Spreads Those long-term rates are set by market forces Supply and Demand Inflation Expectation Investor Confidence in Economic Growth In fact, markets have already priced in lower rates but not because Powell pulled a lever, because inflation is cooling, growth is slowing, and investors expect the Fed to act soon . That’s why mortgage rates, bond yields, and credit spreads have come down in recent months. So when long-term borrowing costs fall despite  no change in the fed funds rate, that’s not “the Fed cutting rates.” That’s the market anticipating  rate cuts. Here's a good metaphor explaining how the author's understanding is off target: The Fed is holding the thermostat steady. The market saw cooler weather and opened the windows. The author is giving credit to the thermostat for the breeze. Let’s Talk Inflation Moving on from the "open letter," we’re fighting the wrong fight. The Fed’s target inflation rate is 2.0%. A good, sensible target. But let’s put things in perspective. I pulled inflation data going back to 1991 (that's the year I was born so no fancy reason, just personal relevance). And you know what? We’ve never hit 2.0%. The historical average since 1991 is 2.65% . Where are we year-to-date in 2025? 2.7%. You read that right. We’re arguing over 0.05% . That's less than the rounding error on a gas station receipt. Inflation isn’t a precise dial you turn. It’s a messy process driven by consumer behavior, supply chains, global energy markets, and more. The idea that Powell must see 2.00% on the dot before making a move is nonsense. It's dogmatic and dangerous. The Labor Market Just Gave Us a Massive Wake-Up Call Now that we've gotten these numbers, this is probably the most compelling reason. The latest jobs data shows the U.S. lost 911,000 jobs  over the 12 months ending in March 2025. That’s a massive downward revision from what we thought we knew. And this isn’t just a blip. It’s a flashing red sign that the labor market is weakening. If we wait for that to hit the unemployment rate, it'll be too late. The Fed Is Waiting for... What, Exactly? This isn’t strength. It’s stubbornness. Powell’s defenders say he’s holding out to show the world that the Fed is “independent.” But here’s the thing: Delaying a rate cut just to make a point isn't independence. It’s pride masquerading as policy. It's politics covered up as diligence. And if Jerome Powell continues to ignore softening job data, the cooling economy, and the fact that we’re sitting almost exactly  at our 30-year average inflation rate, he’s not being prudent anymore... he’s letting his own politics get in the way. That’s not strength. That’s weakness. It’s Time to Cut Though the argument can be made for a 50bp cut, I expect just a quarter point. The most important thing is to just start. The Fed has signaled it might cut in September. Good. They should. A 25-basis-point move would acknowledge where we are economically, without overcommitting. It would show responsiveness without appearing reactive. It would help stabilize credit markets, boost business confidence, and avoid deeper damage to a labor market that is clearly starting to unravel. This isn’t about “doing what Wall Street wants.” It’s about doing what’s right for where we are economically and not letting the last few basis points of inflation obsession derail a healthy economy. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

A client of mine asked me this one and it's surprised me. Not because I hadn’t heard it before, but because it’s one of those things nobody ever really teaches you and it hadn't come up before: “How the hell do I pay myself? And how do I know if it’s the right amount?” He owns a very specialized agricultural operation and keeping my client's privacy is important... But the story? It’s not uncommon. Like many in agriculture, he inherited the operation from his parents a few years back and has absolutely poured himself into it since - reinvesting millions of dollars in personal assets and business earnings. He’s grown the business, upgraded the equipment, improved the facilities, hired more workers, expanded product lines, and increased production. It’s thriving. And yet… this was still the question: "How do I pay myself?" Most Entrepreneurs Just Guess—Until They Can’t Anymore Up until that point, he’d been taking an annual draw - more of an educated guess than a strategy. There was no real structure to it. No benchmark. Just, “I hope this is right.” I get it. I’ve lived it. When you’re self-employed, everything flows through you and sometimes it feels like you’re both the bull and the farmer. Here’s how I approach it in my own firm: Gross Revenue × 50% = Owner’s Income Then: Gross Revenue - Taxes – Rent – Marketing – Professional Associations – Insurance – Utilities – Software – Office Supplies – Misc = Profit or Loss Gross Revenue – Owner’s Income – Taxes – Rent – Marketing – Professional Associations – Insurance – Utilities – Software – Office Supplies – Misc = Retained Earnings From there, I check in quarterly: Can I take more without wrecking my 3- or 5-year goals? If yes, I take a little extra. If no, I wait. Simple, but it works. Is That Formula Right for You? Maybe. Maybe Not. My income is quarterly and consistent because of how financial advisory fees are structured. But you might have uneven cash flows from retail sales, milk checks, project or construction bids, employees to pay, uneven seasonal fruit sales, government contracts, or cull cow runs. Your income rhythm likely looks totally different from mine, so this isn't a one-size-fits-all approach. Remember that the 50% rule I currently go by may not be universally appropriate. Industry Norms Differ:  In some industries, especially those with high overhead (think medical practices, manufacturing, or firms with multiple employees), paying the owner 50% of gross revenue could be unsustainable. Growth Phase Risk:  If your company is in a growth or reinvestment phase, taking 50% off the top can starve your business of the cash needed for hiring, technology, or expansion. Feast-or-Famine Risk:  For businesses with irregular or seasonal revenue, taking 50% every month could leave you short during lean periods. Trying to figure out how to manage and scale the thing you've built is tough and managing the business is something easily avoided. Because that’s where the anxiety creeps in. And if you’re being honest, that’s the part you probably avoid the most. You Work the Business. But Do You Work ON It? I run a wealth management firm and a small cattle ranch. And I know exactly what feels good in both. Working the  business means meeting with families, building financial plans, solving real-world problems. It’s also walking my pasture and fence line, hauling feed with my son, or heading to the auction to buy the next steer. But working on  the business? That’s reconciling books, tracking mileage, managing profit and loss, figuring out pricing, and paying vendors. The shit no one really likes to do when it comes to managing the business but are crucial to its success. Nobody becomes an entrepreneur because they love bookkeeping or tax planning. They do it because they’ve got something they love to do or make, and it just happens to be a viable business. So, You’ve Got Two Choices Carve away the time needed to figure these things out yourself instead of doing the thing you love. OR Hire someone to do it for you, so you can double down on the stuff that fulfills you. Whether it’s retirement planning, managing your investments, organizing your tax strategy, cleaning up your books, or just deciding what to pay yourself… the point is this: You don’t have to do all of it yourself. A good professional doesn’t take control away from you. They give you back your time so you can live the life you actually built the business to support. That’s the whole point, right? To maximize your life in the ways that matter most. Whatever that means to you. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies  Me The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

There Are Two Kinds of Greed Most people think of someone who's greedy as someone constantly chasing more - more money, more power, more shit they don’t need but want. The people who want it to show off their success, their income, their lifestyle. To make others envious of them. The people who will never have enough . But I’ve seen another version that’s just as harmful, maybe worse. It doesn’t always show up as excess. Sometimes, it shows up as fear . And here’s the thing nobody really says out loud: Obsessing over the fear of losing money can be just as much a reflection of greed as obsessing over getting more of it. When Money Starts to Own You I’ve seen people hoard their money the same way some people hoard junk in their house or garage. They don’t think of it like that, of course. They’ll say they’re being smart, staying conservative, protecting what they’ve built. Hoarding money is more respectable right? Absolutely not. The truth? It’s not strategy. It’s an obsession based in fear. People who hoard money shove it into accounts that promise safety - CDs, annuities, savings accounts... anything with a guarantee. Not because they have a goal, but because they’re terrified to see that number dip, even for a second. Even when it goes up, they won’t touch it. They avoid giving it to their kids. They avoid investing it. They avoid using it. They’re afraid to donate it away. Afraid to support causes they care about. Afraid to spend it on something they’ve always wanted. Like shackles, the value of their accounts binds them and, frankly, makes them afraid to live. Because if they do, the value of their accounts will go down. And just like people who hoard physical stuff end up buried by it, people who hoard money end up trapped by it and can’t enjoy their life. What Fear Really Costs People who hoard money can miss out on the most important parts of life. They lose time - sometimes decades - waiting for a moment that feels “safe enough” to do something they actually want to do. They lose sleep stressing over every bump in the market. And the worst part? They lose real chances to show up for their family - not just financially, but relationally . The trips they don’t take. The dinners they don't have. The memories they don’t make. The generosity they keep putting off for "someday.” And for what... A number on a screen? A false sense of control? It's all bullshit. That’s fear wrapped in virtue. Not stewardship. That’s greed wrapped in humility. Not conservatism. Money, at its base level, is a tool. A tool to further drive the relationships you have and want to see flourish. Money Was Never Meant to Sit Still Like a gun used to protect your family, your livestock, your business, or your country - money is a tool. A damn good one. But, like a gun, only if you use it the right way. True stewardship isn’t about hoarding. It’s about direction. Purpose. Movement. It means you’ve got a plan. You invest with intention and spend with joy. You give with open hands and trust that your money will serve  your life - not the other way around. It’s not greedy to enjoy what you’ve earned. It’s not reckless to invest it. It’s not irresponsible to give some away now while you’re here to watch it make an impact - in fact, watching its impact is one of the best parts of being intentional with your money during your life. But hoarding it all just to feel “safe?” That’s a slow, quiet kind of greed. And it doesn’t make anyone’s life better - not yours and not your family’s. It's time to talk about using the wealth you've built with someone who understands and has helped others feel that fulfillment. Someone who will help you use it in a way that honors the relationships and things you value most - your family, faith, friends, and fun. Let’s build a plan that honors what you’ve built without  being afraid to use it. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies  Me The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

The promise of technology has always been to make people more productive and make products cheaper. If you can produce faster, you should be able to reduce costs. You can create or achieve the same results in a fraction of the time. Or, in the same amount of time, you should be able to achieve higher-quality results. I recently spoke with a business owner (not a client) who told me he bought a new machine for packaging his products. With the old machine, it took about three hours to package a certain amount. The new machine packages the same amount in just 45 minutes. Fantastic, right? Absolutely. The business owner has dramatically increased his efficiency. This will help him continue to grow and increase his margins. The Problem No One Wants to Talk About But here’s the catch: prices for his products have nearly doubled over the past 3 to 4 years. Now, the business not only benefits from much faster production but also from higher prices. This boosts profits even further. While the cost of the new machine needs to be recouped, that’s what the improved efficiency—and the margin it creates—should achieve. Yet prices remain elevated, and consumers are left holding the bag. Why Does This Matter? Because young people, especially Gen Z, are bearing the brunt of these realities. It’s easy for those of us with strong incomes or significant assets to dismiss what they’re experiencing. We often act like they need to "earn their stripes" because we did. But let’s pause to consider what’s happened to them in the past few years: COVID-19 disrupted two or more years of schooling for many, affecting high school, college, and early careers. Inflation ran above 4% annually for over 30 months straight—peaking at more than 9% year-over-year in 2022. While it has cooled, prices for essentials like housing, food, and energy remain well above pre-pandemic levels. The Federal Reserve raised interest rates at the fastest pace since the 1980s. This pushed mortgage rates to highs not seen in over two decades and drove loan costs through the roof. Entry-level job markets tightened. There are fewer roles offering growth opportunities or stability right out of school. AI has begun reshaping industries, threatening many entry-level positions and adding uncertainty to career planning. Home prices surged more than 40% in many markets since 2019. With inventory still limited, first-time homeownership is further out of reach. Technology was supposed to make our lives faster, easier, and cheaper. But despite all the innovation, these economic realities show it hasn’t translated into more affordable living or greater security for younger generations. Why Passing on Wealth Early Makes a Difference This is one reason I believe in passing on wealth during your life, instead of keeping it until it's passed on as an inheritance. I’d be surprised if anyone said they’d rather inherit $1 million when they’re 60 than receive $100,000 when they’re 30. Even though $1 million is a lot more, the power of $100,000 at 30 is exponentially greater. Early financial support can help younger family members buy a home, pay off student loans, start a business, or invest in their future. This gives them a foundation to build on when they need it most. By the time someone inherits later in life, after they’ve already built their own foundation, that money moves the needle only slightly. But when you give while you’re still here, you don’t just transfer dollars—you transfer opportunity, confidence, and stability. Most importantly, the feelings of happiness, fulfillment, and profound purpose that come with strengthening your family tree or building your community are unmatched. There’s no better way to create a living legacy than to see the impact your gifts have today. The Ripple Effect of Generosity When you pass on wealth early, you create a ripple effect. Your generosity can inspire others to do the same. Imagine a community where everyone supports each other. It’s a beautiful thought, isn’t it? We often underestimate the power of small acts of kindness. A little help can go a long way. It can change lives. It can change communities. And it can create a legacy that lasts for generations. So, let’s not wait until it’s too late. Let’s act now. If you’re ready to start passing on your wealth responsibly, in a way that brings your family together, aligns with your values, and helps you build a stronger community, let’s talk. Jose Alvarez, CFP ® , MBA Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

After the recent election, investor confidence rose sharply - this was reflected in stock prices. The markets were excited about fewer regulations, reduced government spending, and promises of renewed economic growth. However, in recent weeks, the stock market has experienced significant volatility, dropping near correction levels (-10%). So, what's behind this sudden instability? Markets typically react to two main factors: corporate earnings and surprises. Interestingly, the president's campaign clearly outlined his plans, including significant cuts to government spending, increased deportations, and tariffs of up to 60% on trade partners. Despite these promises being well-known, they seem to be at the root of the current market turbulence. I believe the core issue causing today's market uncertainty is the president’s shifting stance on tariffs that could subside with a clear message. This week tariffs are active, suspended the next, only to return again soon after. Although the tariffs actually implemented were less than half of those initially proposed, this inconsistency creates uncertainty and surprise. Given the speed of information and digital access to our investments, that uncertainty and surprise are reflected instantly in market prices. Leading up to the election, many investors and business leaders probably focused too much on positive expectations, like reduced regulations and promises of economic growth. They overlooked the very real negatives associated with the president’s promises. Those negative factors are now becoming clear, and investors aren't thrilled with the outcome, despite the president’s promise of this being an economy "in transition" and economic prosperity just over the horizon. It seems that many who were initially thrilled with the election outcome are now experiencing some buyer’s remorse. Whether or not you agree with the president's actions, this isn't meant as praise or condemnation. What's clear, however, is that he's delivering on the promises the American people voted for in November. Ultimately, four years will come and go, and I firmly believe presidential action tend to have temporary impacts. However, if current market fluctuations make you anxious, it might be time to review your financial plan. Sometimes an adjustment can help; other times, staying the course is wiser. Either way, let's talk about it. Don't let market volatility rob you of your peace. Jose Alvarez Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.

Social Security is often misunderstood, especially when it comes to taxes. Let’s break it down simply: Your Social Security can be taxable at 0%, 50%, or up to 85%. But hold on—this doesn't mean you're actually paying a tax rate of 85%. It means that portion of your benefit could be subject to taxation at your ordinary income tax rate. When Social Security began, it was never meant to fully cover retirement costs. Instead, it was created as a safety net, supplementing your personal savings and investments accumulated during your working years and co-care provided by family members. Yet today, about 40% of American retirees rely entirely on Social Security for their retirement income [1]. We've all seen the quotes highlighting why investing on your own matters: "Someone who consistently invested even a modest portion of their paycheck privately throughout their career could retire with significantly more wealth—and financial security—than relying on Social Security alone." There's some truth to that, although these quotes typically overestimate returns and assume perfect consistency and contribution levels. But even so, should Social Security be taxed? I don't really believe so. The most a retiree can earn at full retirement age is about $4,000 per month. That's an investment equivalent value of roughly $1,500,000*. To me, that seems achievable since you need to make about $176,000 per year to reach the highest Social Security payout level [2]. Given this significant level of discount, it doesn't necessarily sit well with me that we tax Social Security benefits—but hey, here we are. Ultimately, as we come to the end of tax season, don't forget: While Wisconsin doesn't tax your Social Security payments, the federal government certainly does, and the thresholds are fairly low. Combining this income with retirement account income, earnings on savings/CDs, and other income like farmland rent can add up quickly. If you feel you're paying too much in tax, this time of year is the perfect time to review your tax returns and optimize your tax strategy. Jose Alvarez Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin. * Assumption based on a 4% annual distribution rate, "The 4% Rule" Bond, Tyler, Joelle Saad-Lessler, and Christian E. Weller. "New Report: 40% of Older Americans Rely Solely on Social Security for Retirement Income." National Institute on Retirement Security. January 14, 2020. https://www.nirsonline.org/2020/01/new-report-40-of-older-americans-rely-solely-on-social-security-for-retirement-income/. Social Security Administration. "What are the maximum Social Security retirement benefits payable?" Accessed March 17, 2025. https://www.ssa.gov/faqs/en/questions/KA-01897.html.