B&A Wealth Consulting

Charts & Chat - April 12, 2026

Mon, 13 Apr 2026 16:25:57 GMT

This week, CEO Eric Boyce, CFA discusses:

1. final 4Q GDP revision reflects weaker year-end environment. First quarter estimates are trending down, reflecting pressure from geopolitics

2. personal income trending lower, although credit outstanding remains flat

3. PCE prices are elevated, primarily from goods prices - housing continuing to drop

4. energy market impacts from Iran conflict - disproportionate impact on lower income, Asia energy markets

5. forward looking equity returns look to be more limited, following three years of above average returns - private investments will likely play a greater role going forward

6. still a considerable gap on individuals with retirement plans, even at the higher income levels

7. earnings estimates moving higher, especially for tech firms; accordingly, tech P/E multiples back down to overall index average

Charts & Chat - April 5, 2026

Mon, 06 Apr 2026 15:35:56 GMT

This week, CEO Eric Boyce, CFA discusses:

1. economic forecasts coming down for the first quarter of 2026, yet probability of recession remains around 30%

2. inflation perking up; manufacturing looking stable; retail sales remain strong

3. sentiment eroding for all income groups, as well as expectations

4. labor market is weak and tight at the same time; trend remains mixed and unidentifiable; software industry job losses pale in comparison to broader economy

5. brent crude prices spike; off circumstance where oil is in backwardation and natural gas is in contango; expect airfare inflation due to higher jet fuel costs

6. housing - affordability concerns persist, credit availability an issue; weak market for builders and existing home sales

7. overall credit metrics are improving, except for subprime borrowers; yields on software firms blowing out because of AI displacement fears. this is causing a major disconnect on prices for private credit and direct lending relative to their net asset values

8. equity earnings and margins continue to expand; however, tech P/E multiples coming in line with broader index

9. discussion of the things which make the S&P 500 a tough index from a benchmarking and diversification standpoint

10. There are 25% more exchange traded funds (ETFs) than listed equities on the US exchanges - implications for future markets

Tax Planning in the Long Term, Not the Immediate Term

Wed, 01 Apr 2026 11:00:06 GMT

As tax season approaches, many families focus on filing accurately and on time, but fewer step back to consider what their tax return is really revealing about their broader financial picture. Tax planning is not a one-year exercise; it requires understanding where you’ve been, where you are today, and where you expect your income and wealth to go in the future. While there is no single “perfect” strategy, there are several commonly overlooked planning opportunities that can meaningfully reduce a family’s long-term tax burden.

What stage of earnings am I in?

Determining how much you are earning and what bracket you are currently in compared to where you see yourself being in the future can dictate an abundance of decisions. One of the most common items is whether to utilize a traditional or Roth IRA or 401k. Based on your tax bracket today, is it smarter to deduct the income now and worry about taxes when you are potentially in a lower bracket or is it smart to get the taxes out of the way now? Do you have low basis funds in a brokerage account or real estate you are thinking of selling? How will these capital gains affect your AGI and tax bracket? These are crucial items to consider in your long-term tax plan.

Are you maximizing your deductions?

A family who has a combination of high property or state income tax, mortgage interest, and giving a significant amount to charity could potentially benefit from itemizing their deductions. This is especially prominent with the cap on property tax being increased to $40k for the upcoming years. If a family is itemizing for a particular year, loading charitable giving into this particular year is one consideration among the ways to take advantage of the deductions while the opportunity is there.

**Should I utilize Roth Conversions*?**

Roth conversions are becoming much more commonly requested topic recently, and there is a good reason for that. If the timing is done correctly, they are incredibly beneficial to the long-term tax plan. While the process of Roth conversions is beyond the scope of this article, there are a few important items to look out for. The first is determining whether this decision would push you into a higher tax bracket. If a Roth conversion pushes your marginal rate from 24% to 32%, this can be a detriment to your plan. The other item is looking at how this affects your IRMAA bracket if you are approaching Medicare age. This has a two-year lookback and is incredibly important to pay attention to in order to avoid paying more than necessary for Medicare part B.

*Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.

Boyce & Associates Wealth Consulting, Inc. does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

Be vigilant of timing for selling stock options or low basis consolidated holdings.

It is a common joke in the financial planning world that the home renovation industry would not be in business without stock options. This happens very frequently, when a family will exercise and immediately sell stock options to pay one-time large expenses. When a stock option holder exercises and immediately sells their position within the same year, not only does this forfeit the tax benefits of utilizing the long-term holding period, but this can also often greatly increase AGI, putting a family in a much higher tax rate for the year. Families should consider all the buckets of money and determine if this is the smartest choice.

Consider the tax equivalent yield of investment income.

Of course, nobody likes paying taxes. However, sometimes the benefit of high investment income yields outweighs the challenge of paying more in taxes. The tax equivalent yield is simply equating the yield of an income investment to the after-tax payment. You then compare that to tax free treasury rates. These yields can often be stronger than a tax-free investment, so you are still better off by using taxable income investments. However, it is important to make this decision with every investment.

While these are only a few of the countless items to look out for, these are a good start into minimizing the tax you pay over the long term. As a reminder, these items are purely educational, and you should consult with a tax professional before implementing these into your tax return. Our advisors at B&A would be happy to help analyze these strategies.

This newsletter contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this newsletter will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting, Inc. does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

April 2026: Geopolitical Risk Rises, Markets Adjust

Wed, 01 Apr 2026 11:00:06 GMT

Dear Clients and Friends,

As we move into the second quarter of 2026, many of you are understandably focused on the evolving conflict in the Middle East and Iran, and what it may mean for markets, the economy, and your own financial situation. The headlines are serious and, at times, unsettling. Our goal in this note is to put recent developments into perspective, review where markets and the economy stand today, and share how we are positioning portfolios in light of ongoing geopolitical risk.

Market overview

Equity markets spent much of March wrestling with two competing forces: resilient economic and earnings data on one hand, and rising geopolitical tension on the other. Periods of heightened stress around the Iran conflict led to bouts of risk-off trading, with investors temporarily rotating away from stocks and toward perceived safe-haven assets such as high-quality bonds, cash, and the U.S. dollar. At the same time, sectors tied to energy and defense tended to hold up better, reflecting concerns about potential supply disruptions and increased global security spending.

Despite this volatility, broad market indices remain within reach of recent highs, supported by steady corporate earnings and a still-growing, if slower, global economy. Under the surface, however, leadership has been rotating. Areas that had previously led the market—such as select growth and technology names—have seen more day-to-day swings, while more defensive and income-oriented sectors have provided ballast. This type of internal rotation is typical when markets are trying to digest both economic cross-currents and new geopolitical information.

Interest rates and inflation

Interest rates have continued to play a central role in market behavior. Yields moved up and down throughout March as investors weighed ongoing inflation data against expectations for central bank policy. Inflation has moderated from its peak levels of the last few years, but it remains an important consideration for policymakers and investors alike. Recent readings suggest a gradual cooling trend rather than a sharp break lower, which leaves central banks cautious about moving too quickly on rate cuts.

For bond investors, this environment has been a mixed bag. Higher yields mean more attractive income opportunities in high-quality fixed income than we have seen in much of the past decade. At the same time, shifting expectations around future rate decisions continue to create short-term price volatility. Our focus remains on maintaining a disciplined and diversified approach to fixed income—seeking to capture improved yields while managing risk across different maturities and issuers.

The broader economy

From a macroeconomic perspective, the picture remains one of slower but still positive growth. The labor market has cooled from its most overheated levels, with job gains normalizing and wage growth easing somewhat, but employment conditions overall remain relatively healthy. Consumer spending has moderated but continues to support economic activity, particularly in services, even as some interest-sensitive areas such as housing and big-ticket goods show more strain.

Businesses are navigating higher financing costs and ongoing cost pressures, but many companies have adapted by focusing on productivity, efficiency, and careful capital allocation. Corporate earnings, while more uneven across sectors, have generally been more resilient than many feared a year ago. This combination of moderate growth, still-positive earnings, and careful central bank communication has helped prevent the kind of sharp economic downturn that often accompanies major market pullbacks.

Of course, the economic outlook is not without risks. The path of inflation, the timing and magnitude of future interest-rate decisions, and the possibility of further exogenous shocks—including geopolitical events—are all factors we continue to watch closely. Rather than trying to predict each monthly data point, we focus on the underlying trends and what they imply for long-term investors.

Geopolitics and the Iran conflict

The conflict involving Iran and broader tensions in the Middle East have understandably raised concerns about global stability, energy supplies, and trade routes. Markets are highly attuned to developments in this region because of its strategic importance for oil production, shipping lanes, and regional security. News flow around military actions, diplomatic efforts, and potential escalation or de-escalation has contributed to short-term swings in both equity and commodity markets.

History can be a useful, though imperfect, guide. Over many decades, markets have weathered numerous geopolitical shocks, including regional wars, terrorist attacks, and periods of intense diplomatic tension. While initial reactions are often negative and volatility can spike, the longer-term impact on markets tends to be more limited when conflicts remain regional and do not fundamentally alter the global economic framework. That does not minimize the human or political significance of these events, but it does remind us that markets often move on more quickly than the news cycle.

Our approach is to respect the risks without overreacting to each headline. We are closely monitoring developments in the Middle East, including potential implications for energy prices, shipping, inflation, and global growth. We also recognize that geopolitical narratives can change quickly—sometimes for the better. Any meaningful escalation or, conversely, credible signs of de-escalation will factor into our ongoing assessment of risk and opportunity across asset classes.

Your personal financial condition

In periods like this, it is natural to worry about what global events might mean for your own financial security. While we cannot control headlines, central bank decisions, or geopolitical outcomes, we can control how we prepare and respond. The most effective way to navigate uncertainty is with a well-thought-out plan and a portfolio aligned with your goals, time horizon, and risk tolerance.

For many clients, the last few years have included meaningful changes—retirements, job transitions, business sales, major purchases, or health-related decisions. These changes, combined with a shifting economic landscape, make it a good time to revisit key aspects of your personal financial picture:

Are your cash reserves and emergency funds at appropriate levels given your current income and spending?
Does your portfolio risk level still match your time horizon and comfort with volatility?
Have upcoming needs—such as college funding, planned home projects, or retirement income—been factored into your investment and savings strategy?
Are you taking advantage of current interest-rate and tax environments in areas like debt management, savings vehicles, and retirement accounts?

Our role is to help connect the dots between the global and the personal—to translate market and economic developments into practical decisions for your financial life. That may mean fine-tuning your allocation, adjusting withdrawal rates, re-balancing to manage risk, or simply affirming that your current plan remains on track despite unsettling news.

How we are positioning and what to expect

Looking ahead, we expect markets to remain sensitive to both economic data and geopolitical headlines. It would not be surprising to see continued short-term volatility as investors digest new information about inflation, interest rates, earnings, and developments in the Middle East and elsewhere. Rather than attempt to time these moves, we remain focused on:

Maintaining diversified, goal-aligned portfolios across asset classes, sectors, and geographies
Emphasizing quality—strong balance sheets, durable cash flows, and prudent management—in both stocks and fixed income
Gradually rebalancing when markets move sharply, trimming areas that have run ahead and adding to those that offer more attractive long-term value
Monitoring risk exposures related to energy prices, interest-rate sensitivity, and geopolitical hot spots, and adjusting where appropriate

Importantly, we are not making abrupt, reactionary changes based solely on the latest headline. Your financial success depends far more on discipline, time in the market, and thoughtful planning than on any single month’s events. Our commitment is to stay vigilant, interpret new information through a long-term lens, and communicate with you when conditions warrant changes—or when staying the course is the better course.

If you have questions about how recent developments affect your portfolio or your broader financial plan, please reach out. We are here to discuss your situation, update your plan as needed, and help you stay focused on what you can control.

Thank you, as always, for your continued confidence and the opportunity to serve you.

Sincerely,

Eric Boyce, CFA

President & CEO

Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

Risks: All investments, including stocks, bonds, commodities, alternative investments and real assets, should be considered speculative in nature and could involve risk of loss. All investors are advised to fully understand all risks associated with any kind of investment they choose to make. Hypothetical or simulated performance is not indicative of future results.

Newsletter — April 2026

Charts & Chat - March 29, 2026

Mon, 30 Mar 2026 15:09:41 GMT

This week, CEO Eric Boyce, CFA discusses:

1. more data on the impact, duration and persistency of oil price shocks and their impacts on the investment markets and the economy

2. global geopolitical fragmentation increasing, coupled with declining share of fossil fuels as percent of total energy consumption

3. current forecast for first quarter 2026 economic growth is 2.0%

4. 33% of US government will mature this coming year ($10 trillion), which will need to be refinanced at higher rates; 20% of federal tax receipts go to interest on the federal debt

5. trade policy uncertainty declining, while economic policy uncertainty higher

6. seeing some inflationary pressure coming from producer prices in several Fed districts and in import prices

7. more soft sentiment data from consumers; however, retail and consumption data remain favorable amidst favorable financial conditions

8. stock sell off mitigated by strong earnings, increased liquidity

9. since 1949, average bull market lasts 5.3 years and returns 254%; meanwhile, average bear market lasts 1 year and declines 31%

10. private credit sell-off likely overdone, based on actual loss data

Annuities Explained: 5 Myths About Your Financial Future

Fri, 27 Mar 2026 18:58:47 GMT

If you search online for annuities explained, you will likely encounter a mix of strong opinions. Some articles present annuities as the ultimate retirement solution, while others describe them as complicated products to avoid entirely, but the truth is more balanced. This guide addresses several common annuity myths and explains what you need to consider before purchasing one.

Annuities Explained: What Are Annuities and How Do They Work?

An annuity is a financial contract between you and an insurance company. In exchange for a lump sum or a series of payments, the insurer agrees to provide income either immediately or at a future date. Its core purpose is to help create predictable income during retirement.

To keep annuities explained in simple terms, think of them as a way to convert savings into a structured income stream that can support your financial needs later in life.

There are several types of annuities, but most fall into three general categories:

Fixed annuities: Provide a guaranteed interest rate for a set period.
Variable annuities: Allow investments in market-based subaccounts, which means returns can fluctuate.
Indexed annuities: Offer returns linked to a market index while providing some downside protection.

Understanding fixed vs. variable annuities is essential because each type serves a different role in retirement planning. For readers looking for annuities explained in practical terms, the key difference lies in how returns are generated and how much market exposure each option carries.

Common features of annuities include:

Tax-deferred growth
Guaranteed income options
Death benefits for beneficiaries
Optional riders for additional protection

When structured properly, annuities can help address one of the biggest retirement concerns: outliving your savings. However, misconceptions about fees, returns, and flexibility often discourage people from learning how these tools actually work.

Debunking 5 Common Myths About Annuities

Myth 1: Annuities Are Only for People Who Are Bad at Investing

One of the most persistent annuity myths is that annuities are only for investors who do not understand the market. In reality, many financially sophisticated individuals include annuities as part of diversified retirement strategies. With annuities explained in the context of income planning, their role becomes much clearer.

Annuities solve a specific problem that traditional investments do not always address: guaranteed lifetime income.

Even a well diversified portfolio can face financial challenges such as:

Market volatility during retirement
Sequence of returns risk
Longevity risk

For example, if the market declines early in retirement while withdrawals continue, a portfolio may recover more slowly. Some retirees use annuities to secure a portion of their income so essential expenses remain covered regardless of market conditions.

Common expenses retirees may want to protect include:

Housing
Utilities
Food
Healthcare premiums

Myth 2: All Annuities Have High Fees

Another misconception is that every annuity carries excessive costs.

The reality is more nuanced. Annuity fees and costs vary depending on the type of annuity and the features included.

Here is a general comparison.

Fixed annuities:

Typically have low or no explicit annual fees
Insurance company earns revenue through the interest spread

Variable annuities:

May include investment management fees
Mortality and expense charges
Optional rider costs

Indexed annuities:

Often structured without explicit annual management fees
Insurance company limits gains through caps or participation rates

While some annuities do include higher fees, others are relatively cost efficient. The key is understanding what you are paying for.

Costs may support features such as:

Guaranteed lifetime withdrawal benefits
Principal protection
Inflation protection riders
Death benefit guarantees

Myth 3: Annuities Lock Up Your Money Forever

A common concern people express is that annuities permanently restrict access to their money. This belief is one of the more widespread annuity myths, but with annuities explained clearly, the flexibility within many contracts becomes easier to understand.

While annuities do have surrender periods, they rarely lock funds completely. Most contracts allow some level of annual withdrawal without penalties.

Typical provisions include:

Free withdrawal amounts, often 10 percent per year
Income riders that allow scheduled withdrawals
Full access after the surrender period ends

Surrender periods usually range from five to ten years depending on the contract.

These structures exist because insurance companies invest funds to support long term guarantees. However, they do not necessarily eliminate flexibility.

For example, many annuities allow penalty-free withdrawals for:

Required minimum distributions
Long term care events
Terminal illness situations

Myth 4: Annuities Guarantee High Returns

Annuities are sometimes marketed as vehicles that provide market-like returns with no risk. This is another misunderstanding. Most annuities focus on income stability and principal protection, not maximum growth.

Here is how returns generally compare.

Fixed annuities: Prioritize stability with predictable interest rates
Indexed annuities: Provide partial exposure to market indexes with limits
Variable annuities: Offer higher potential returns but involve market risk

Annuities should not replace growth oriented investments entirely. Instead, they often function as a risk management tool within a diversified retirement strategy.

Think of annuities as one piece of a larger financial plan that might also include:

Stocks and ETFs for growth
Bonds for income and stability
Cash reserves for liquidity
Insurance for risk protection

With annuities explained to you within the context of a full financial strategy, their role becomes clearer as a tool for income stability rather than aggressive growth. Balancing these components can help create both security and long term growth.

Myth 5: Annuities Replace a Comprehensive Retirement Plan

Perhaps the most important myth to address is the idea that annuities alone can solve retirement planning challenges.

But having annuities explained within the context of broader financial planning shows us that they are only one component of a well structured strategy.

Annuities can support retirement income, but they should not replace a full financial strategy.

A comprehensive plan typically includes:

Investment portfolio management
Tax planning
Social Security strategies
Healthcare planning
Estate considerations

How Annuities Fit Into an Integrated Financial Plan

When used appropriately, annuities can complement other financial assets. Some investors allocate a portion of retirement savings to annuities to help stabilize income streams.

Potential benefits include:

Predictable lifetime income: Certain annuities can provide income that continues as long as you live.
Protection from market volatility: Fixed and indexed annuities help shield part of your retirement income from market downturns.
Tax deferred growth: Earnings inside an annuity grow tax deferred until withdrawals begin.
Longevity protection: Annuities can help ensure income continues even if you live longer than expected.

However, these benefits must be balanced with considerations such as liquidity needs, investment goals , and tax implications. A fiduciary advisor can help determine how much, if any, of your portfolio should be allocated to annuities.

When Should You Consider an Annuity?

Annuities are not appropriate for everyone, but they may be worth exploring in certain situations.

You might consider an annuity if you:

Want predictable retirement income
Are concerned about outliving your savings
Prefer lower exposure to market volatility
Have already built a diversified investment portfolio

Business owners may also evaluate annuities as part of tax efficient retirement strategies. For example, some entrepreneurs explore annuities within deferred compensation plans or supplemental retirement accounts.

Questions to Ask Before Buying an Annuity

Before purchasing any annuity, it is important to ask thoughtful questions. Understanding the details can prevent surprises later.

Consider discussing these topics with your advisor:

What type of annuity is this?

Clarify whether the contract is fixed, indexed, or variable.

What are the total annuity fees and costs?

Ask for a clear explanation of annual fees and optional rider charges.

How long is the surrender period?

Understand how long penalties may apply to withdrawals.

What income options are available?

Some annuities offer lifetime income, while others allow flexible withdrawals.

How does this fit into my overall retirement plan?

Every investment decision should align with broader financial goals.

Annuities Explained: Helping You Strategize Your Retirement Income Planning Strategies

To keep annuities explained in understandable terms first requires separating facts from common misconceptions. While annuities are not a universal solution, they can play a meaningful role in retirement income planning when used thoughtfully.

By addressing common annuity myths, evaluating annuity fees and costs, and comparing fixed vs. variable annuities, investors can make more informed decisions about whether these products align with their long term financial goals.

Work With a Fiduciary Financial Advisor in Cedar Park

Financial decisions about retirement income deserve careful planning and professional guidance. For many investors seeking to have annuities explained, the goal is not just to understand the product itself but to see how it fits into a broader financial strategy.

Working with a fiduciary financial advisor in Cedar Park ensures recommendations prioritize your best interests rather than product sales.

Boyce & Associates Wealth Consulting Inc. is a fiduciary financial planning firm serving individuals, families, and business owners seeking thoughtful retirement strategies. With years of experience helping clients navigate investment planning, tax considerations, and income strategies, the firm focuses on transparency, long term planning, and client education.

Rather than promoting one solution, a fiduciary advisor evaluates how different tools, including annuities, may fit into a well balanced financial plan.

Reach out to us today .

FAQs

1. Are annuities a good investment for retirement?

Annuities can support retirement income planning by providing predictable payments. For many people researching annuities explained, the key takeaway is that these products are designed to create reliable income rather than maximize investment growth. They typically work best when integrated into a diversified financial plan rather than used as a standalone investment.

2. What are the hidden fees in annuities?

Some annuities include charges such as mortality and expense fees, administrative costs, wealth management fees, and optional rider fees. Reviewing the full fee schedule helps clarify total annuity fees and costs so investors understand exactly what they are paying for.

3. Are annuities safe?

Annuities are issued by insurance companies, so their reliability depends on the financial strength of the insurer. State guaranty associations may provide limited protection if an insurer encounters financial trouble. With annuities explained alongside insurer ratings and contract details, investors can better assess the level of risk involved.

4. What is the difference between fixed and variable annuities?

The main difference between fixed vs. variable annuities is how returns are generated. Fixed annuities provide predictable interest rates, while variable annuities allow investments in market based accounts with fluctuating returns.

5. Do annuities lock up your money?

Most annuities include surrender periods that limit withdrawals for several years. However, many contracts allow partial withdrawals annually and provide full access once the surrender period ends.

Key Takeaways

Many annuity myths come from misunderstanding how these products work.
Annuities are designed primarily to support predictable retirement income.
Fees, flexibility, and features vary depending on the type of annuity.
Understanding fixed vs.variable annuities is essential before investing.

Disclaimer:

Risks: All investments, including stocks, bonds, commodities, alternative investments and real assets involve a risk of loss. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

Fixes Annuities Disclosure:

Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Withdrawals prior to age 59-1/2 may result in a 10% IRS tax penalty, in addition to any ordinary income tax. Any guarantees of the annuity are backed by the financial strength of the underlying insurance company.

Indexed Annuities Disclosure:

Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated

Variable Annuities Disclosure:

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.

Riders and rider benefits have specific limitations and costs and may not be available in all jurisdictions. Review any life insurance policy you are considering for complete details, including the terms and conditions of riders and exact coverage provided.

Diversification Disclosure: Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

ETF Disclosure:

Exchange Traded Funds (ETF’s) are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. An investment in the Fund involves risk, including possible loss of principal.

Charts & Chat - March 22, 2026

Mon, 23 Mar 2026 14:04:51 GMT

This week, CEO Eric Boyce, CFA discusses:

1. economic growth estimates are being adjusted in light of the Iran conflict; meanwhile, earnings estimates for public companies continue to rise

2. rates on hold in latest Fed FOMC meeting, rate cuts off the table for now, replaced by increasing risk of increase (following global central banks)

3. Philly Fed data remains expansionary; wholesale inventories down, factory orders up

4. Producer prices blow through expectations, powered by good prices

5. no significant sign of "sell America" in the markets; continued foreign investment

6. global volatility higher, especially foreign markets; some US markets in correction, S&P 500 below 200 day moving average

7. valuations off peaks; stocks historically trough 2-3 weeks after geopolitical event...will this one follow trend?

8. energy, commodity prices higher, although gold/silver well off highs

9. bond market pricing much higher 12 month inflation than is predicted by Fed/Wall Street; meanwhile, yield curve is flattening

Charts & Chat - March 15, 2026

Mon, 16 Mar 2026 17:09:51 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Potential near and longer term impacts of the energy shock, understanding that sentiment tends to overstate the eventual impact and that most energy shocks are transitory

2. headline and core inflation in line, driven by continued decline in core services and rents

3. consumer spending remains resilient, but

4. tariff-impacted goods and price increases risk inflation - estimates moving higher as we watch costs in the food chain in apparel increase

5. probability of recession moved up a little in the prediction markets and the likelihood of interest rate cuts in 2026 are largely off the table for the time being.

6. equity markets are in sell off mode, especially in consumer discretionary; S&P 500 index not nearly as useful as a diversification vehicle as it used to be due to increasing concentrations

7. interest rates continue to tweak higher, increasing mortgage rates at a time when affordability is tempered. Bond market volatility picking up a little

8. Deep dive into the topic of Retirement Savings - aging populations, use of social security versus pensions; growth of 401k's, yet meaningful percent of workers do not have retirement accounts

Top 5 Side Hustles That Can Help Boost Retirement Savings

Thu, 12 Mar 2026 18:49:49 GMT

Planning for retirement today often requires more than relying solely on employer-sponsored plans or long-term market growth. Many professionals are turning to flexible income streams and strategic side ventures to boost retirement savings and strengthen financial security over time. From consulting work to digital businesses, the right side hustle can create meaningful opportunities to grow retirement funds while building additional sources of income.

Why Side Hustles Can Support Long-Term Retirement Planning

Many professionals and business owners eventually ask the same question: How can I boost my retirement savings quickly without relying solely on a primary salary? Rising living costs, longer life expectancy, and market volatility have made traditional retirement planning more complex than it was decades ago.

Side income can play a meaningful role in helping individuals boost retirement savings while maintaining flexibility. Rather than depending entirely on employer retirement plans or investment growth , additional income streams can accelerate savings and diversify long-term financial strategies.

Side hustles often allow individuals to:

Increase retirement contributions beyond employer plan limits
Create flexible income streams during semi-retirement
Diversify financial risk through multiple sources of earnings
Support long-term retirement income strategies

For professionals with established careers, side income opportunities often build on existing expertise, networks, or investments. When managed strategically, these supplemental earnings can become an important way to boost retirement savings while strengthening a comprehensive retirement strategy.

5 Proven and Tested Side Hustles To Boost Retirement Savings

Side Hustle 1: Consulting or Freelance Services in Your Field

One of the most accessible side hustles for retirement involves consulting or freelancing within your current professional field.

Professionals who have spent years developing expertise often have valuable knowledge that organizations are willing to pay for. Consulting work allows individuals to monetize their experience without committing to a full-time second job, creating an additional income stream that can help boost retirement savings over time.

Common consulting opportunities include:

Strategic advisory work
Industry-specific project consulting
Professional coaching or mentoring
Contract-based freelance work

Consulting income can be particularly effective for retirement planning because it typically requires minimal startup costs and can scale up or down depending on availability.

For example, an engineer, healthcare executive, or marketing professional may earn additional income by advising startups or small businesses within their industry.

This type of supplemental income can then be directed into retirement vehicles such as:

Solo 401(k) plans
SEP IRA accounts
Traditional or Roth IRAs

Side Hustle 2: Rental Income or Short-Term Property Leasing

Real estate remains one of the most widely used retirement income strategies for individuals seeking long-term financial growth . For many investors, rental properties can also serve as a practical way to boost retirement savings by generating additional income streams that continue well into retirement. While real estate requires initial capital and management responsibilities, it can offer several long-term advantages.

Benefits of rental income as a retirement strategy include:

Predictable monthly income streams
Potential property appreciation over time
Tax advantages related to property ownership
Portfolio diversification outside traditional investments

Some investors explore short-term leasing options through vacation rental platforms, while others focus on long-term residential tenants. However, real estate investments should be carefully evaluated. Property management costs, market fluctuations, and maintenance responsibilities can impact overall returns.

Side Hustle 3: Online Businesses and Digital Products

The digital economy has created numerous opportunities for generating scalable side income. Online businesses can be particularly appealing because many require relatively low startup costs compared to traditional brick-and-mortar ventures. When managed strategically, these ventures can also help boost retirement savings by creating flexible income streams that can be directed toward long-term investments and retirement accounts.

Examples of digital supplemental income ideas include:

Selling educational courses or professional training
Creating subscription-based newsletters or content platforms
Selling digital products such as templates or guides
Affiliate marketing or niche ecommerce stores

These ventures can become long-term passive income streams once systems and content are established.

For professionals nearing retirement, online businesses may provide both short-term income and a flexible long-term revenue source.

The key advantage is scalability. Unlike hourly consulting work, digital products can generate income repeatedly with less time investment.

When structured properly, online income can contribute to retirement accounts and help individuals increase retirement contributions each year.

Side Hustle 4: Part-Time Advisory or Board Roles

Experienced executives and business leaders often transition into advisory or board roles later in their careers. These positions allow professionals to leverage decades of expertise while maintaining flexible schedules.

Serving on advisory boards or corporate boards may provide:

Annual stipends or consulting fees
Equity participation in growing companies
Strategic networking opportunities
Continued professional engagement

These roles can also support long-term retirement income strategies by creating income during the transition from full-time employment to retirement.

Many organizations actively seek advisors who bring operational, financial, or leadership expertise. Professionals with strong industry reputations may find opportunities through professional networks, industry associations, or venture capital firms.

Income earned through advisory roles can also be allocated toward retirement accounts, helping to boost retirement savings during the final working years.

Side Hustle 5: Investing in a Small Scalable Business

Entrepreneurial investments represent another potential path for building retirement wealth. While not every small business becomes highly profitable, some investments can generate significant long-term returns and provide additional opportunities to boost retirement savings through equity growth and supplemental income.

Examples of scalable small business opportunities include:

Purchasing an existing local business
Investing in franchise opportunities
Partnering with entrepreneurs in early-stage ventures
Funding niche service businesses

Unlike traditional employment-based side hustles, business ownership can create equity that appreciates over time.

However, business investments carry risk and should be evaluated carefully. Factors such as operational management, market demand, and financial sustainability all influence potential returns.

Many investors consult experienced advisors before making these decisions. Reviewing long-term financial strategies with professionals through fiduciary financial planning services can help ensure that entrepreneurial ventures align with overall retirement goals.

How to Direct Side Hustle Income Into Retirement Accounts

Earning extra income is only the first step. To effectively boost retirement savings, individuals should consider directing a portion of their side income toward tax-advantaged retirement vehicles .

Common options include:

Solo 401(k): Designed for self-employed individuals or small business owners without employees. These plans offer higher contribution limits than traditional IRAs .
SEP IRA: Often used by freelancers or consultants. SEP IRAs allow contributions based on a percentage of self-employment income.
Traditional or Roth IRA: These accounts remain valuable tools for individuals earning additional income outside employer plans.
Taxable investment accounts: While not retirement-specific, these accounts offer flexibility for long-term investing.

Tax Considerations Before Starting a Side Hustle

Before launching a side business or freelance venture, it is important to understand potential tax implications.

Side income is typically treated as self-employment income, which may trigger additional tax obligations.

Key considerations include:

Self-employment tax obligations
Quarterly estimated tax payments
Deductible business expenses
Retirement contribution limits based on income

Proper tax planning can help ensure side income contributes positively to overall financial goals rather than creating unexpected liabilities.

Many professionals work with both financial advisors and tax specialists to develop efficient retirement income strategies that account for business earnings.

Building a Retirement Strategy With a Fiduciary Advisor

Side hustles can be a powerful tool for strengthening retirement readiness, but they work best when integrated into a broader financial strategy.

A fiduciary advisor can help evaluate:

How much additional income should be saved versus reinvested
Which retirement accounts offer the greatest tax benefits
Whether certain side income streams align with long-term financial goals
Risk management and diversification strategies

Boyce & Associates Wealth Consulting Inc. provides personalized investment management and retirement planning support for individuals and business owners seeking long-term financial stability. With decades of experience guiding clients through complex financial decisions, the firm focuses on transparent advice and fiduciary responsibility.

Professionals exploring ways to boost retirement savings may benefit from discussing long-term strategies with a qualified advisor who can help align supplemental income opportunities with retirement planning goals.

Strategic Ways to Boost Retirement Savings for the Future

Creating additional income streams can be a practical and effective way to strengthen financial security later in life. Whether through consulting, real estate investments, digital businesses, or advisory roles, strategic side income can play an important role in modern retirement planning.

When structured thoughtfully, these opportunities not only generate income but also help individuals build diversified financial strategies designed for long term stability.

Build Your Retirement Strategy With a Trusted Retirement Planning Advisor in Cedar Park

If you are exploring ways to boost retirement savings and develop reliable long-term income strategies, working with a trusted advisor can provide clarity and direction. Boyce & Associates Wealth Consulting offers personalized financial guidance designed to help individuals and business owners build sustainable retirement plans aligned with their goals.

Take the next step in your financial journey and reach out to us today .

Frequently Asked Questions

1. How can I boost retirement savings quickly?

You can boost retirement savings by increasing contributions to tax-advantaged retirement accounts, directing side income into long term investments, and reviewing your overall financial plan with a qualified advisor.

2. Are side hustles good for retirement planning?

Yes. Side hustles for retirement can provide additional income streams that support higher savings rates, diversify income sources, and strengthen long term financial security.

3. What is the best side income for long-term savings?

Consulting work, rental income, online businesses, and advisory roles are commonly used supplemental income ideas that can support retirement savings when structured strategically.

4. Should I invest side hustle income for retirement?

Investing side income in retirement accounts such as IRAs or Solo 401(k) plans can help maximize long term growth while also providing tax advantages.

5. Can business owners use side income to fund retirement plans?

Yes. Business owners and freelancers can often contribute to retirement accounts such as SEP IRAs or Solo 401(k) plans, allowing them to increase retirement contributions beyond standard employee limits.

Key Takeaways

Side hustles can play an important role in helping individuals boost retirement savings.
Consulting, real estate, online businesses, advisory roles, and small business investments are common income strategies.
Directing side income into retirement accounts can significantly increase retirement contributions over time.
Tax planning is essential when earning self-employment income.

Disclaimer:
Investment advisory services offered through Boyce & Associates Wealth Consulting, Inc., a registered investment adviser. Boyce & Associates Wealth Consulting, Inc. has Representatives Licensed to sell Life Insurance in TX and other states. Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

Diversification Disclosure: Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Charts & Chat - March 8, 2026

Mon, 09 Mar 2026 15:14:56 GMT

This week, CEO Eric Boyce, CFA discusses:

1. surprising weak job report; weaker healthcare employment, lower participation, manufacturing employment, productivity higher, unit labor costs in check

2. ISM services sector looking better - orders, employment, order backlog - although Fed's survey of conditions remains sluggish

3. metals prices higher - possible rotation from resources consuming areas of the market (tech) to resources producing (energy, materials)

4. energy price impact of Iran conflict - supply constraints from Strait of Hormuz, shipping prices, higher gasoline prices and low strategic oil reserves

5. potential oil price shocks on inflation and economic growth

6. yield curve shifts up last week, decreased probabilities of short term rate changes - conundrum of lower employment coupled with higher possible inflation

Charts & Chat - March 1, 2026

Mon, 02 Mar 2026 17:34:56 GMT

This week, CEO Eric Boyce, CFA discusses:

1. immediate read throughs from the Iranian bombings

2. gold disconnect from commodities and 10 year yields

3. produce prices ahead of expectations

4. correlations between payrolls and economic growth

5. impacts of AI on job losses and productivity growth

6. CEO confidence high, individual and institutional investor sentiment weaker, although estimated stock price gains on tap for the next 20-60 days...likely due to increased concentration of stock ownership at the top of the wealth spectrum

7. Mag 7 companies coming back in line with more value-looking stock areas

March 2026: Inflation Sticky, Rates Steady, Leadership Broadens

Sun, 01 Mar 2026 12:00:02 GMT

Dear Clients and Friends,

After a strong start to the year, February reminded investors that markets don’t move in straight lines. The month brought a mix of optimism and caution — solid economic growth remained intact, but investors continued to wrestle with what comes next for inflation and interest rates. Even with those cross-currents, the backdrop remains much more stable than just a couple of years ago, and that’s progress worth noting.

Inflation continued to move in the right direction, though at a slower pace. We’re well past the high-inflation days of the early 2020s, but the final leg down toward the Fed’s 2% target is proving sticky. Prices in key categories like energy, housing, and healthcare have kept upward pressure on the data, even as many goods and services have stabilized. The Federal Reserve has stayed cautious, signaling that interest rates will likely remain steady for a bit longer before any cuts are considered. While that may sound restrictive, today’s environment also allows savers and bond investors to finally earn attractive yields again — an uncommon advantage compared to most of the past decade.

Stocks spent much of February consolidating recent gains. The major indexes held near record territory, but leadership broadened. The large technology companies that fueled much of last year’s rally remained influential, though with wider swings in price. Meanwhile, sectors tied to real-world economic growth — such as industrials, energy, and financials — showed steady footing as investors looked for value and resilience. Small-cap and cyclical names had some catching up to do, reflecting investors’ gradual shift toward a more balanced view of risk.

The bond market experienced mild ups and downs as investors debated the timing of future Fed moves. Yields edged higher, putting some short-term pressure on prices, but the overall story remains constructive. Bonds now provide genuine income and diversification potential — something long absent from balanced portfolios during the era of near-zero rates.

As we move into March, markets will continue to focus on three main themes: inflation trends, interest rate expectations, and corporate earnings momentum. Each of these plays a role in shaping the path ahead, but none should overshadow the importance of staying disciplined amid short-term noise.

That’s where our ongoing philosophy comes in. At Boyce & Associates, we remain focused on what we can control — building well-diversified portfolios, matching investments to each client’s goals and time horizons, and emphasizing prudent asset allocation in line with long-term financial plans. Markets will always have moments of uncertainty, but history continues to show that patience and balance tend to reward investors who stick to their strategy rather than chase every headline.

Whether through equities, fixed income, or select alternative strategies, our aim is the same: to keep you positioned for progress toward your goals, regardless of the market backdrop. Staying the course, with thoughtful adjustments where needed, remains the surest path through changing conditions.

As always, thank you for your continued confidence and partnership. If you’d like to review your current allocation or discuss how these market trends may affect your personal plan, please don’t hesitate to reach out — we’re here to help you stay on track and comfortable with your financial direction.

Sincerely,

Eric Boyce, CFA

President & CEO

Disclaimer:

Newsletter — March 2026

Are you On Track For Retirement?

Sun, 01 Mar 2026 12:00:02 GMT

Elon Musk, founder of SpaceX among other companies, recently stated on a podcast that saving for retirement will soon be pointless due to the abundance AI and robotics will bring. An interesting perspective, to be sure, from the world’s wealthiest individual and someone heavily invested in the future of Artificial Intelligence. But before you decide to follow advice based on dreams of a utopian future, let’s consider what goes into prudent retirement planning…just in case.

Our first step is a complete review of where you stand today, financially. Together, we’ll look at each aspect of your personal balance sheet to determine a snapshot of your net worth (assets you own less liabilities). We’ll look at income sources and expenses to determine cash flow needed to support your lifestyle now versus what can be set aside for the future. Once we have a clear picture of your current finances we can move on to shaping your future goals and priorities. Going to Mars, anyone?

In retirement planning, one of the things I like to communicate is that long-term planning creates a framework of trade-offs. For example, if you want to target an earlier retirement date it often involves trade-offs such as saving more now or planning to spend less in retirement. This is where online retirement calculators or generic advice like “save 15% of your salary” fall short. Each household has different priorities and unique situations; therefore, it’s only logical that goals planning should involve unique solutions and recommendations. Understanding which trade-offs are acceptable and which are not is crucial for developing a plan that can be carried out to the end. Think of it as an “All roads lead to Rome” approach (with Rome being retirement).

The biggest takeaway here is that it’s not helpful to compare the progress of your track to retirement with Mr. Roboto next door or anyone else for that matter. Your individual goals, priorities and situation will help map out the right path for you. So whether your retirement goals include going to Mars or Rome, let’s build a retirement plan designed for you…just in case.

Ultimate Guide to Financial Planning for Kids and Grandkids

Thu, 26 Feb 2026 18:01:50 GMT

Times are challenging, making thoughtful financial planning for children and grandchildren more crucial than ever. But with the right strategies in place, families can support education, opportunity, and long-term wealth while maintaining flexibility and stability.

Why Financial Planning for Children and Grandkids Is Essential

With families today facing rising education costs, longer lifespans, shifting tax laws, and evolving economic conditions, financial planning for children and grandchildren has become non-negotiable. Parents and grandparents share a common goal: helping the next generation succeed financially. Yet without a structured plan, even well-intended support can create unintended strain, either on retirement resources or on family relationships.

Financial planning for your children is not about predicting the future with certainty. Instead, it is about preparing for a range of possibilities. A thoughtful plan helps families make informed decisions rather than reactive ones. It clarifies a realistic level of support, when to provide it, and how it fits within the broader financial picture.

For grandparents, financial planning for kids and grandkids often carries an emotional dimension. There is a desire to leave a meaningful legacy while also ensuring independence and financial confidence for younger generations. Planning helps align those intentions with practical realities.

Ultimately, this type of planning offers reassurance. It allows families to move forward knowing that resources are being managed thoughtfully, priorities are aligned, and future opportunities are being protected.

Key Family Financial Planning Strategies to Secure Your Kids’ Future

Thoughtful planning starts with structure. The most effective family financial planning strategies focus on clarity, timing, and sustainability to support meaningful decisions over time.

Establish a clear framework: Effective family financial planning emphasizes sustainability, open communication, and intentional decision-making over one-time gestures.
Clarify priorities early: Identifying what matters most, such as education funding, housing assistance, long-term investments, or emergency support, allows resources to be allocated more thoughtfully.
Consider timing carefully: Support provided at key life stages, like education or early career development, can often have a greater long-term impact than larger gifts later in life.
Be mindful of tax efficiency: Education accounts, structured gifting, and trusts can help preserve value over time when used appropriately and aligned with broader family goals.

A practical overview of foundational approaches to family financial planning can help families better align goals, resources, and long-term priorities.

When these strategies are coordinated thoughtfully, families are better positioned to support the next generation while maintaining flexibility and control. Ultimately, financial planning for kids and grandkids becomes much easier.

How to Create a Legacy Plan for Your Grandchildren’s Future

Legacy planning is about more than passing down assets; at its core, it’s about creating understanding and continuity. A well-designed approach helps families align long-term intentions with practical financial decisions.

Look beyond asset transfer: Legacy planning reflects values, priorities, and long-term intentions, providing clarity and continuity for families focused on financial planning for children and grandchildren.
Establish a strong foundation: A thoughtful legacy plan includes updated estate documents, clearly defined beneficiaries, and a clear understanding of how assets will be distributed.
Consider timing and structure: How and when assets are received can be just as important as the amount, particularly for younger generations.
Support the purposeful use of assets: Structured distributions for education, housing, or long-term savings help ensure resources are used constructively, support wealth planning for your family's future, and reduce misalignment with family goals.

Legacy planning also provides an opportunity to communicate values. Some families choose to include guidance, letters, or family governance structures that explain the purpose behind financial decisions. These conversations help younger generations understand not just what they are receiving, but why.

When legacy planning is proactive rather than reactive, families gain greater confidence that their intentions will be respected. It transforms planning from a legal obligation into a meaningful expression of care and foresight.

Effective Multigenerational Financial Planning for Family Success

Today’s families are increasingly multigenerational. Adult children may rely on parental support, grandparents may contribute to education expenses, and multiple generations may share financial responsibilities. This reality makes multigenerational financial planning essential.

Recognize generational differences: Effective multigenerational planning acknowledges that each generation faces unique challenges, from career development and debt management to retirement income and long-term security .
Prioritize alignment over uniformity: The goal is not identical solutions for everyone, but coordinated decisions that respect each generation’s needs while avoiding unintended consequences.
Plan for life transitions: Thoughtful multigenerational financial planning helps families anticipate changes, including caregiving responsibilities, inheritance considerations, and shared living arrangements.
Encourage open communication: Clear conversations around expectations and responsibilities help families understand how shared resources and long-term goals intersect across generations, reducing the risk of misunderstandings.

Additional perspective on multigenerational financial planning can help families better understand how shared resources, differing life stages, and long-term responsibilities intersect across generations.

When done well, financial planning for kids and grandkids becomes a shared framework rather than a source of uncertainty.

Managing Retirement and Legacy Planning Simultaneously

Balancing support for family with personal financial security is a common challenge. With a coordinated approach, retirement and legacy planning can work together to support future generations without compromising long-term stability.

Acknowledge common concerns: Many families worry that helping children or grandchildren could affect retirement security, a concern that can be addressed through thoughtful retirement and legacy financial planning.
Build on a strong retirement foundation: Ensuring income needs are met, risks are managed, and lifestyle goals are realistic allows families to approach legacy decisions with confidence rather than hesitation.
Coordinate retirement and legacy goals: Legacy planning works best when it builds on retirement planning, identifying available resources for the next generation and how they should be structured.
Use flexible support strategies: Structured gifting during retirement can provide meaningful assistance without jeopardizing long-term income, while estate planning tools help transfer assets efficiently and maintain flexibility.
Maintain balance and sustainability: Aligning generosity with long-term security is central to responsible financial planning for kids and grandkids, ensuring support remains intentional and sustainable over time.

A thoughtful approach to retirement and legacy financial planning for kids and grandkids helps ensure that long-term income needs and future family goals remain aligned without unnecessary tradeoffs.

Why Working with a Financial Planner Is Crucial for Family Wealth

Family financial planning for kids and grandkids involves more than numbers. It requires coordination, foresight, and an understanding of how decisions affect multiple generations. This is where professional guidance becomes especially valuable.

A financial planner helps families:

Translate goals into structured strategies
Identify risks that may not be immediately obvious
Coordinate investments, tax planning, and estate considerations

For families focused on wealth planning, professional support provides clarity and accountability. It helps ensure financial planning for kids and grandkids is grounded in realistic assumptions rather than emotional decisions alone.

Importantly, working with a planner does not remove control. Instead, it enhances decision-making by providing context, education, and structure. Families remain in charge while benefiting from an informed perspective.

Over time, this collaborative approach helps plans evolve as family needs change, ensuring relevance and continuity.

A Practical Approach to Wealth Planning for Family Future

Financial planning for kids and grandkids does not require complexity. It requires consistency, review, and adaptability. A practical approach to wealth planning for family's future focuses on ongoing engagement rather than one-time decisions.

Key elements often include:

Periodic plan reviews to reflect life changes
Adjustments for new family members, career shifts, or health considerations
Continued education for younger generations

As children grow older, involving them gradually in financial conversations can foster understanding and responsibility. This educational component supports children's financial planning by building their confidence and financial literacy.

When plans are revisited regularly, financial planning for kids and grandkids remains aligned with real-world circumstances rather than outdated assumptions. This flexibility allows families to respond thoughtfully to change rather than react under pressure.

Financial Planning for Kids and Grandkids: Building Confidence Across Generations

Financial planning for kids and grandkids is most effective when it balances long-term security with thoughtful support. By approaching planning with clarity, coordination, and flexibility, families can create financial strategies that evolve with changing needs while supporting future generations with confidence and purpose.

When approached thoughtfully, financial planning for kids and grandkids becomes less about predicting outcomes and more about preparing for them, helping families move forward with clarity, balance, and peace of mind.

Begin a Thoughtful Financial Conversation for Your Family

Planning for the next generation does not need to feel overwhelming. With thoughtful guidance, financial planning for kids and grandkids becomes a structured, empowering process rather than a source of uncertainty.

With Boyce and Associates Wealth Consulting , a well-informed conversation today can help clarify priorities, align expectations, and support long-term confidence for your entire family.

Frequently Asked Questions

1. What should I consider in financial planning for kids and grandkids?

Financial planning for kids and grandkids starts with understanding your own financial foundation first. Consider your long-term income needs, risk tolerance, and goals before deciding how to support education, savings , or early-life expenses. Clear priorities and realistic expectations help ensure support is sustainable over time.

2. How do I start planning for grandkids’ financial future?

Planning for grandchildren often begins with defining how you want to help, whether through education funding, structured gifts, or long-term savings. Thoughtful planning focuses on timing, flexibility, and alignment with your broader financial and estate plans .

3. Why does multigenerational financial planning matter?

Multigenerational financial planning for kids and grandkids helps families coordinate financial decisions across different life stages. By considering the needs of parents , children, and grandchildren together, families can reduce uncertainty, avoid unintended consequences, and support long-term stability.

4. What financial strategies benefit both kids and grandkids?

Strategies that emphasize flexibility, tax awareness, and long-term sustainability often benefit multiple generations. Coordinated planning around education funding, gifting, and estate structures can help ensure resources are used effectively while preserving financial independence for all involved.

5. How often should I review my financial plan for my kids and grandkids?

Financial planning for kids and grandkids should be reviewed regularly and updated as family circumstances change. Major life events such as births, education milestones, career changes, or shifts in financial priorities are good opportunities to revisit plans and ensure they remain aligned with long-term goals.

Key Takeaways

Financial planning for kids and grandkids supports stability and opportunity across generations.
Multigenerational financial planning aligns goals across life stages.
Retirement and legacy financial planning work best when integrated.
Professional guidance brings structure and confidence to complex family decisions.
Clear financial planning for kids and grandkids reduces uncertainty and improves coordination.

Blog Disclosure

Charts & Chat - February 22, 2026

Mon, 23 Feb 2026 17:29:05 GMT

This week, CEO Eric Boyce, CFA discusses:

1. the changes inherent in the Supreme Count ruling on the IEEPA tariffs of the Trump Administration

2. GDP for the 4th quarter lighter than expected, driven in part by the government shutdown. Real final sales to domestic purchasers remains strong, suggesting that consumption remains robust enough to keep the economy going

3. Trade deficits higher, leading economic indicators remain negative; regional Fed surveys remain very positive, however. Leading indicators remain weak

4. One third of the federal debt is going to have to be refinanced in 2026 at a much higher interest cost.

5. government balance sheet not nearly as in good of shape as the consumer and commercial sector. Increased activity may result in additional capital spending next few years

6. equities in high demand; recent sell off has reduce valuation multiples, but US is still overvalued relative to the rest of the world. Earnings growth expected to be stronger in emerging markets than in the US

7. Hyperscaler spending set to ramp in 2026 - investors beginning to price in some skepticism

8. private investment stocks under pressure due to credit concerns

Charts & Chat - February 15, 2026

Mon, 16 Feb 2026 20:29:42 GMT

This week, CEO Eric Boyce, CFA discusses:

1. retail sales off for the month, breaking a trend; consumer prices +2.5% year-over-year, but much higher in some important categories

2. wages stable, but higher charge card delinquencies keep our focus in check. Household debt to GDP still very low, however

3. profit margins for S&P 500 driven by large tech; earnings estimates still favorable overall, but AI benefit will likely be measured in years, not months

4. trends in economic surprises suggest higher long term bond yields...

5. with recent sell off, some changes in both institutional and retail investor sentiment, although trade volumes remain high

6. increased capital spending but public companies, offset by lower stock buyback and debt paydown

7. job market slowdown continues at slow pace; job growth negative outside of healthcare since beginning of 2004

8. Gold disconnect with interest rates, but increased demand from foreign central banks, including China, driving some of that

Top Financial Moves Young Professionals Need To Make

Fri, 13 Feb 2026 17:55:32 GMT

Strategic financial planning sets the foundation for long-term career success, helping early-career earners turn rising income into sustainable wealth through compound interest. By defining clear goals, automating investments, and executing the right financial moves young professionals prioritize, like reducing debt and building diversified portfolios, you can stay resilient through market shifts while protecting your future security.

Why Campus to Career Financial Planning Is Crucial for Young Professionals

Mastering your capital early allows you to fully leverage time , the most powerful tool in finance, to accelerate your long-term growth. It transforms your paycheck from a monthly survival fund into a long-term engine for wealth.

With strategic objectives, you can move beyond reactive spending and begin to shape the trajectory of your professional and personal life through intentional campus-to-career financial planning. This transition from a student mindset to a strategic earner ensures every dollar serves your long-term vision.

The Impact of Early Strategy

Harnessing Compound Interest: Starting early maximizes the "snowball effect," which is the cornerstone of effective campus to career financial planning. Even modest contributions to retirement accounts now can outperform much larger sums invested a decade later, as the exponential power of compounding has more time to multiply your initial principal.
Risk Management: Building an emergency fund also ensures that any sudden job market shift or health issue doesn't derail your progress.
Debt Management: Meanwhile, active planning helps you navigate student loans and credit efficiently, preventing interest from eroding your net worth.
Lifestyle Flexibility: Proper financial moves young professionals make today, such as automating savings and diversifying investments, create the freedom to pivot careers, pursue further education, or enter homeownership sooner rather than later.

Building the Foundation

A proactive financial roadmap serves as a GPS for your career, guiding the essential steps to build a solid economic foundation. It also ensures that your money works for you at every milestone.

Budgeting Tips for Young Professionals: How to Spend Your Money Wisely

Entering the workforce requires a shift from managing student stipends to overseeing a professional salary. To bridge this transition successfully, adopting intentional money habits early on can turn your first paycheck into a powerful tool for long-term stability and growth.

Below is a rundown of essential budgeting tips for young professionals to help you manage your cash flow and ensure your hard-earned income supports both your current lifestyle and future ambitions.

Master the 50/30/20 Budgeting Framework

One common affliction among new employees is “lifestyle creep,” or the tendency to spend more as income rises. To avoid it, start by categorizing your expenses with precision, using the popular 50/30/20 Rule. This is one of the core financial moves young professionals rely on to balance present needs with future growth. By allocating 50% to necessities, 30% to wants, and 20% to savings, you establish a sustainable path toward long-term financial stability.

Allocate 50% to Needs: Prioritize essential obligations, including rent, utilities, groceries, and minimum debt payments.
Dedicate 30% to Wants: Maintaining a sustainable lifestyle is one of the most crucial financial moves young professionals can make, as setting aside funds for dining, hobbies, and entertainment helps prevent "frugal burnout."
Commit 20% to Financial Goals: Direct this portion toward high-interest debt repayment, emergency savings, and retirement contributions.

Build a "Credit Score Foundation"

Another crucial step is to establish a strong credit history . By maintaining a low credit utilization ratio and ensuring on-time payments, you position yourself for lower interest rates on future milestones such as home mortgages or auto loans.

Invest in "Human Capital" and Upskilling

Investing in professional certifications, higher education, and advanced training is among the highest-yield financial moves young professionals can make, as it strengthens expertise, credibility, and long-term earning potential. These often accelerate career advancement, unlock higher-paying opportunities, and deliver compounding returns that extend far beyond the initial cost.

Debt Management Strategies Young Adults Need To Know

Early-career professionals often view debt as an insurmountable obstacle. However, with the right strategy, you can transform these liabilities into manageable components of a broader financial portfolio.

Execute the Avalanche Method: A debt-repayment strategy in which you pay off debts with the highest interest rates first while making minimum payments on all other balances.
Establish a "Buffer" Fund: Accumulate a modest emergency fund before aggressively overpaying debt. This liquidity allows you to avoid relying on high-interest credit cards when unexpected professional or personal expenses arise.
Optimize via Refinancing: Monitor your credit score as it improves and pursue refinancing opportunities for student or auto loans. Ultimately, your goal is to get a lower interest rate by even a few percentage points to save thousands of dollars over the life of a loan.
Leverage Windfalls Judiciously: Applying "found money" to debt accelerates your freedom without impacting your established monthly standard of living.
Distinguish Between Debt Types: Distinguishing between "low-interest/appreciating" debt, such as certain student loans, and "high-interest/depreciating" debt, such as consumer credit, is one of the most critical financial moves young professionals must make to prioritize their repayments effectively.

The Importance of Building an Emergency Fund and Saving Early

Securing a three- to six-month safety net is one of the foundational financial moves young professionals should prioritize. This liquid reserve prevents temporary setbacks, such as unexpected medical costs or sudden job transitions, from evolving into long-term, high-interest debt.

How an Emergency Fund Can Help You Long-Term:

Establishes a financial safety net by covering three to six months of essential living expenses
Protects against unexpected events like medical bills, job loss, or urgent repairs
Prevents reliance on high-interest debt during financial emergencies
Encourages saving early, allowing consistency and confidence to grow over time

Starting to Invest: Early Career Financial Success Tips

Taking full advantage of secondary benefits, such as tuition reimbursement, discounted life insurance, and wellness stipends, is one of the smartest financial moves young professionals can use to reduce out-of-pocket expenses and maximize total compensation.

Once you’ve optimized your benefits and reduced unnecessary expenses, the next step is to put those savings to work. Below, we’ve outlined what young professionals like you need to do:

Harness the Power of Compounding: By prioritizing early investing, you allow your earnings to generate returns of their own.
Neutralize "Lifestyle Creep" : Directing a portion of your entry-level salary into diversified assets, such as index funds or 401(k) plans, is one of the financial moves young professionals prioritize to shield future wealth from the tendency to increase spending as salaries rise.
Manage Market Volatility: A longer time horizon provides the flexibility to weather short-term market fluctuations. Young professionals can afford to adopt more aggressive growth strategies, as they have decades to recover from temporary downturns before needing to access their funds.
Minimize Future Financial Stress: Time is your greatest financial advantage. Investing early lets your money work longer, easing the need for stressful catch-up contributions later and giving you greater flexibility and confidence throughout your career.

How Employer Benefits Can Maximize Your Financial Growth

Securing the full employer 401(k) match is one of the most powerful financial moves young professionals can make early in their careers. Doing so delivers an instant, guaranteed return that feels like a risk-free raise.

Capture Employer Matching

Contributing enough to your retirement account to earn the full company match is like getting a guaranteed bonus on every paycheck, free money added to your savings. Skipping it means leaving part of your compensation on the table, while capturing it boosts your long-term wealth with no additional risk.

Optimize Tax-Advantaged Accounts

Funding your Health Savings Account (HSA) or Flexible Spending Account (FSA) can help young professionals cover essential healthcare costs with pre-tax dollars. This strategy effectively reduces your annual tax liability while ensuring you have dedicated funds for medical expenses.

Utilize Ancillary Perks

Taking full advantage of secondary benefits such as tuition reimbursement, discounted life insurance, and wellness stipends is one of the smartest financial moves young professionals can make to reduce out-of-pocket expenses.

Strategic Financial Moves Young Professionals Should Master

Mastering strategic financial decisions early in your career sets the tone for long-term wealth, stability, and flexibility. By taking action now, whether through smart saving, intentional investing, or fully leveraging employer benefits, you transform today’s income into lasting financial confidence and greater control over your future.

Take Command of Your Financial Future Today

At Boyce & Associates Wealth Consulting , we approach alternative investments through a disciplined, planning-first framework—one of the strategic financial moves young professionals can utilize—that prioritizes portfolio alignment, careful manager evaluation, liquidity considerations, and risk awareness.

Schedule a Consultation

Frequently Asked Questions

What financial moves should young professionals make after college?

After securing an emergency fund, your next essential financial moves young professionals should prioritize include capturing the full employer match for a guaranteed return and simultaneously executing an aggressive strategy to eliminate high-interest debt.

How do I budget effectively as a new graduate?

Start by listing your fixed obligations, such as rent and student loans, against your net take-home pay to identify your actual discretionary surplus. Prioritizing a "pay-yourself-first" model stands as one of the essential financial moves young professionals execute to automate transfers to emergency funds and retirement accounts.

What debt management strategies help early career success?
To achieve early career success, you must transition from reactive debt repayment to a strategic offensive that prioritizes interest savings and credit health. By implementing the debt avalanche method, you execute one of the most effective financial moves young professionals can utilize: directing surplus funds toward the account with the highest interest rate.

How can young professionals start investing?
You should contribute at least enough to secure the full company match, as this provides an immediate 100% return on your investment . Implementing index funds is among the smartest financial moves young professionals can make, as these vehicles offer instant diversification and lower fees than actively managed funds.

How can employer benefits improve long-term financial security?

Benefits like retirement matches, tuition reimbursement, and health or wellness stipends reduce expenses and accelerate savings when fully utilized.

What is the biggest financial mistake young professionals should avoid?

Delaying action. Waiting too long to save or invest often leads to higher financial pressure later, while early planning creates flexibility and confidence.

Key Takeaways

Starting early with intentional saving and investing allows time and compound growth to turn modest income into long-term wealth.
Building a three- to six-month emergency fund protects young professionals from unexpected setbacks and prevents reliance on high-interest debt.
Following a structured budget, such as the 50/30/20 rule, helps control lifestyle creep while balancing present enjoyment with future goals.
Aggressively paying down high-interest debt using strategies like the avalanche method accelerates financial freedom and improves credit health.

Blog Disclosure

Charts & Chat - February 8, 2026

Mon, 09 Feb 2026 15:19:06 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Risks to inflation from weak dollar, rising industrial prices and wages

2. ISM Services index remains positive, labor weak (job openings)

3. Strong response in energy prices, stocks - rhetoric on geopolitical developments

4. concentration of wealth and the pending wealth transfer

5. increased stock market breadth; tech stocks in correction; net profit margin and earnings per share growth remains strong across the S&P 500 equal weight index

6. international stock diversification benefit remains even if US earnings growth has far outpaced global earnings ex-US

7. yield curve as steep as its been in more than 2 years

8. lots of dry powder at private market funds ready to deploy

9. Bitcoin/crypto showing its volatile head

10. As a percent of the total economy, capital spending by the AI hyperscalers likely to exceed the US interstate highway system in the 1950-60's and the railroad build out before the civil war

Charts & Chat - February 1, 2026

Mon, 02 Feb 2026 15:09:07 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Economic growth estimates for the 4th quarter lower, but numbers still expected to be good.

2. Leading indicators, port container volume down; factory orders slightly higher; retail sales slight uptick

3. comments on housing supply, significant shifts in the rental market, prices likely to continue to show slower growth

4. productivity higher likely due to AI; still risks of inflation, though, due to prices paid by producers

5. dollar remains weak, metals sell-off Friday in part due to new Fed chair nominee; money market inflows still robust despite interest rate decreases

6. quarterly earnings surprises lower; description of what to expect when earnings and economic growth are both positive

7. credit issuance going to be high, followed by refinancing of 1/3rd of all Treasury paper outstanding this coming year.

February 2026: Rotation Broadens as Policy Noise Rises

Sun, 01 Feb 2026 12:00:02 GMT

Dear Clients and Friends,

As we enter February 2026, the global economy is navigating a unique "multidimensional polarization." The exuberant AI-driven rallies of the past two years are meeting a cooling labor market and a shifting geopolitical landscape. While the "Santa Claus Rally" extended into the first weeks of January, pushing the Dow Jones Industrial Average above the 49,000 mark for the first time—investors are now grappling with a more complex set of variables. At this point, there is much better overall visibility for the first half of the year than the end of the year.

The current investment backdrop is one of slowing but still resilient growth, sticky inflation, and renewed geopolitical and tariff uncertainty that has already jolted markets in January. Equity and bond markets are oscillating between optimism about earnings, rate cuts, a potential “AI bubble” and concern that policy shocks and higher-for-longer inflation could compress valuations from elevated starting points.

1. The Economy: Resilient Growth, Cooling Labor

The U.S. economy continues to defy the "hard landing" skeptics, though the pace of expansion is moderating.

GDP & Productivity: Most forecasts project 2026 growth between 2.2% and 2.5%. Interestingly, this growth is being driven more by productivity gains—likely the first real "AI dividend"—than by labor expansion.
The Labor Market: This remains the most uncertain piece of the puzzle. December’s jobs report showed a modest gain of only 50,000 jobs, significantly lower than the 2024 average. With federal job cuts and a decline in immigration, the economy is entering a period of "jobless growth."
Inflation: Core PCE (the Fed’s preferred gauge) remains sticky around 2.8%. While tariff-related costs contributed roughly 0.5 percentage points to this figure, underlying inflation is showing signs of stabilizing toward the 2% target as supply chain pressures ease.

2. Monetary Policy: A "Data-Dependent" Pause

The Federal Reserve, led by Chair Jerome Powell (whose term expires this May), appears to be shifting into a "wait-and-see" mode. The Fed cut rates three times in late 2025 but is widely expected to be more cautious in 2026 given sticky core inflation and still-resilient spending data. Central-bank surveys and private-sector research suggest that while additional easing is likely over the next few years, the pace of cuts should slow meaningfully in 2026

Interest Rates: After a 25-basis-point cut in December to 3.50%–3.75%, the Fed is expected to hold steady in the near term. Markets are currently pricing in only one or two additional cuts for the entirety of 2026.
The Independence Debate: Recent political investigations into the Fed have raised eyebrows, yet market reaction remains muted. Investors seem to have "priced in" the political noise, focusing instead on the Fed’s pivot from fighting inflation to supporting the cooling labor market.

3. Market Performance: Rotation is the Theme

January saw a notable shift in leadership. While the "Magnificent Seven" dominated 2024 and 2025, we are now seeing a broadening of the rally. This is a very healthy development, in my opinion.

Sector Winners: Health Care and Financials led the charge in the most recent quarter. Lower short-term rates have improved bank profitability, while the "AI trade" is rotating into second-order beneficiaries—industries like defense and utilities that provide the infrastructure and security for the tech boom.
International Resilience: International and Emerging Markets outperformed U.S. large-caps in late 2025/early 2026. A weaker U.S. dollar and attractive valuations in Europe and Japan are drawing capital away from the concentrated U.S. tech sector.
Real Assets: Gold and Silver have "shined" recently, driven by central bank purchases and a flight to safety amid geopolitical tensions in South America and the Middle East.

4. Key Risks to Watch

As we move into the second month of the year, keep a close eye on:

1. Geopolitical Friction: The U.S. pivot toward the "Monroe Doctrine" and operations in Venezuela have introduced new volatility, though energy markets have remained surprisingly stable due to robust global supply.

2. The "AI Bubble" Debate: As companies shift from "investing" in AI to "monetizing" it, the market will demand proof of earnings. Any disappointment in the Q1 earnings season could trigger a revaluation of tech premiums.

3. Fiscal Cliff: The temporary spending bill is set to expire soon. Any disruption in government funding could impact the recent momentum in defense and infrastructure sectors.

Bottom Line: While "easy money" of the broad index rally may be behind us. 2026 is shaping up to be a year for active management, where success is found in diversification across value stocks, mid-caps, and international markets.

As always, this environment favors disciplined risk management, thoughtful diversification, and a long-term focus—recognizing that volatility around headlines and policy decisions is a feature of the current regime rather than an exception.

We appreciate your trust and we are always here to answer your questions and discuss our outlook and its impact on your specific plan. Please do not hesitate to reach out if we can be of assistance!

Wishing you and your families a very healthy and prosperous 2026.

Sincerely,

Eric Boyce, CFA

President & CEO

Disclaimer:

Newsletter — February 2026

Why Naming Beneficiaries Matters in Your Financial Plan

Sun, 01 Feb 2026 12:00:02 GMT

Naming beneficiaries is one of the most important steps in financial and estate planning. It ensures that the assets you’ve worked hard to build are passed on according to your wishes, while also providing clarity, protection, and financial support for the people you care about most. Clear beneficiary designations not only honor your intentions but also help your loved ones avoid unnecessary stress during an already emotional time.

Ensuring Your Wishes Are Carried Out

When you name beneficiaries, you decide exactly who receives specific assets—whether it’s your spouse, children, other family members, or even a favorite charity. This clarity makes your intentions unmistakable and keeps your legacy aligned with your goals.

Avoiding Probate and Delays

Certain assets, such as life insurance policies, retirement accounts (like 401(k)s and IRAs), and accounts with Transfer-on-Death or Payable-on-Death instructions, pass directly to the named beneficiaries. Because these assets bypass probate, they can be transferred quickly and privately. This avoids court delays, reduces legal expenses, and prevents your financial affairs from becoming part of the public record.

Providing Stability During a Difficult Time

The fast transfer of funds can be incredibly helpful for loved ones handling immediate expenses such as funeral costs, daily living needs, or settling parts of your estate. Receiving assets directly—without months of waiting—can ease financial stress during an already challenging time.

Reducing Conflicts Among Family Members

Clear beneficiary designations help prevent confusion, conflict, and potential arguments among surviving family members. When expectations are clearly spelled out, there’s less room for misunderstandings or disputes.

Beneficiary Designations Override Your Will

Many people are surprised to learn that beneficiary designations typically supersede what’s written in a will. This means that if an old retirement account still lists an ex-spouse as the beneficiary, that person will legally receive the funds—even if your will says otherwise.

The Importance of Reviewing Regularly Life changes, and your beneficiary designations should reflect those changes. Marriage, divorce, births, deaths, or shifts in your financial goals all warrant an update. It’s also wise to name both primary and contingent beneficiaries, ensuring your assets transfer smoothly even if the first choice cannot receive them.

Keeping your beneficiary designations current is a simple yet powerful way to protect your legacy and the people you care about.

Charts & Chat - January 25, 2026

Mon, 26 Jan 2026 16:59:58 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Decision dilemma with FOMC rate meeting coming up - sticky inflation offset by weaker labor market

2. discussion of inflation components and influences

3. discussion of wages and income

4. residential housing, rental market, home improvement spending

5. exports, gold market and gold versus treasury holdings at foreign central banks

6. institutional and individual sentiment remains strong for risk assets

7. important market rotation underway - favoring value, equal weight, small cap and lower quality

8. balance of earnings growth shifting away from the Mag 7

6 Ways to Help Preserve Your Family Finances in a Recession

Fri, 23 Jan 2026 16:05:44 GMT

When the economy shifts and headlines turn sour, your priority naturally shifts toward security. You don’t have to wait for a crisis to strike before taking control of your family finances. By taking proactive measures today, you can build a resilient strategy that helps shield your household budget from market volatility. These six actionable steps will help you cut unnecessary costs, strengthen your savings, and ensure your loved ones remain financially stable through any economic downturn.

Understanding Types of Family Financial Status

Every household operates on a different economic plane. Understanding how to manage family finances today is the first step toward building a wealthier tomorrow. Instead of viewing money as a source of stress, use these categories to identify your current position and map out a path to the next level.

How to Manage Family Finances During Economic Uncertainty

Economic shifts often trigger anxiety, but clarity is the best antidote to fear. When you take an active role in managing your money, you preserve your lifestyle. Follow these types of family status strategies to fortify your budget against market volatility.

Step 1: Build or Strengthen Your Emergency Fund

Financial stability starts with a proactive plan. Instead of waiting for a crisis to strike, you can take control of your future by prioritizing an emergency fund today. Whether you are starting from zero or bolstering an existing balance, every dollar you set aside creates a vital safety net between you and life’s unexpected expenses.

Bolster your emergency fund through:

Leverage AI for budgeting to automate your savings, ensuring a portion of every paycheck flows directly into your fund without any manual effort.
Targeting a specific milestone , such as three to six months of essential living expenses, provides clarity to your goal.
Separating your funds by using a high-yield savings account to keep emergency cash accessible but distinct from daily spending.
Auditing your monthly expenses to identify small leaks that you can redirect toward your financial safety net.
Replenishing the balance immediately after an emergency use is to maintain your long-term security.

Step 2: Cut Non-Essential Spending

Start with a critical look at where your money goes each day. By identifying family's finances examples and eliminating non-essential expenses, you instantly boost your monthly cash flow and create space for the goals that truly matter. Small, recurring costs often act as invisible leaks in your budget; plugging them allows you to redirect those resources toward building wealth, paying off debt, or investing in your future.

Strategic Action Steps

Audit your subscriptions by canceling any streaming services, apps, or memberships you haven't used in the last thirty days.
Implement a 24-hour rule for all unplanned purchases to verify whether an item is a genuine need or a fleeting impulse.
Prepare meals at home to drastically reduce the high markup associated with dining out and food delivery services.
Switch to generic brands for household staples and groceries to save immediately without sacrificing quality.
Negotiate your recurring bills , such as internet or insurance premiums, to ensure you are paying the lowest possible market rate.

Step 3: Manage and Reduce High-Interest Debt

High-interest debt often acts as a barrier to your long-term prosperity, but you can break the cycle by taking decisive action today. Effective family finance management requires a focused strategy to aggressively target high-rate balances, such as credit cards or payday loans , which drain your monthly income through interest charges.

Financial Recovery Milestones

List all outstanding balances and their corresponding interest rates to identify precisely which debts cost your family the most each month.
Utilize the debt avalanche method by directing extra payments toward the balance with the highest interest rate while maintaining minimums on others.
Consolidate high-interest balances into a lower-rate personal loan or a 0% APR balance transfer card to save on interest and simplify your tracking.
Negotiate with creditors to request lower interest rates or hardship programs that make your monthly obligations more manageable.
Redirect saved interest back into principal to accelerate your repayment timeline and achieve debt-free status faster.

Step 4: Diversify Income Sources

Relying on a single paycheck creates a point of failure in your financial security that you can eliminate through strategic diversification . By building multiple streams of income, you insulate your household from market volatility and unexpected job loss.

Income Expansion Strategies

Identify marketable skills such as consulting, freelance writing, or graphic design to turn your professional expertise into a secondary revenue stream.
Invest in dividend-paying stocks or real estate investment trusts (REITs) to generate passive cash flow that grows independently of your labor.
Create digital products , such as e-books or online courses, which allow you to earn money repeatedly from a one-time investment of effort.
Rent out underutilized assets , such as a spare room or a vehicle, to transform existing overhead into a consistent monthly profit.
Allocate specific hours each week to your side ventures to ensure consistent growth without burning out from your primary career.

Step 5: Monitor Credit and Account Health

Maintaining a high level of financial awareness helps shield you from identity theft and ensures you remain eligible for the best interest rates. Proactive oversight transforms your financial data from a source of mystery into a powerful tool for building long-term credibility with lenders.

Essential Monitoring Habits

Review your credit reports annually from all three major bureaus to verify that every listed account and inquiry belongs to you.
Enable real-time transaction alerts on your banking and credit card apps to flag unauthorized or suspicious spending instantly.
Track your credit score monthly through your bank or a free monitoring service to observe how your financial habits influence your rating.
Audit your account statements for hidden fees, double-charges, or "zombie" subscriptions that may have slipped through previous reviews.
Freeze your credit files when you are not actively applying for new loans to provide an extra layer of defense against fraudulent applications.

Step 6: Involve the Entire Family

Transforming your household’s economic outlook is most effective when it becomes a shared mission rather than a solo burden. By prioritizing family finance management, you ensure that every member understands the value of a dollar and the importance of long-term goals. Open communication demystifies money, reduces friction over spending, and empowers even the youngest members to contribute to the family’s collective success.

Collaborative Financial Strategies

Host regular family money meetings to review upcoming expenses, celebrate savings wins, and keep everyone aligned with the monthly budget.
Define "Needs vs. Wants" together by reviewing recent purchases as a group, which helps children and partners develop a critical eye for discretionary spending.
Assign age-appropriate financial roles , such as letting children track a specific "vacation fund" or help compare prices during grocery trips.
Set collective savings milestones for shared rewards, like a family outing or a new piece of equipment, to build a sense of teamwork and delayed gratification.
Model transparent financial habits by sharing the "why" behind your decisions, turning daily transactions into real-world lessons in responsibility.

Strengthen Your Family’s Financial Management

Strengthening your family’s financial management requires a proactive shift from simply tracking expenses to strategically building long-term resilience. In an era where the economic well-being of U.S. households often depends on navigating "stagflation-lite" and rising housing costs, taking decisive control of your budget is essential.

Strategic Financial Milestones

Conduct a comprehensive asset audit to identify every source of income and investment, ensuring your family's portfolio remains resilient against inflation.
Establish a tiered emergency fund that targets an immediate $2,000 safety net before scaling up to cover six months of essential living expenses.
Leverage tax-advantaged accounts by maximizing 401(k) or IRA contributions to lower your current taxable income while securing your family's future retirement.
Implement a "family first" budget using the 50/30/20 rule to balance mandatory expenses with savings for education and homeownership.
Review estate and insurance plans annually to ensure your beneficiaries, will, and coverage levels reflect your family's current needs and the latest tax law changes.

Securing Your Family's Financial Future

Achieving lasting financial readiness is not a one-time event, but a continuous journey of intentional choices and open communication. While many families report that their finances worsened in 2025 due to persistent economic pressures, you can break that cycle by integrating these proactive strategies into your daily life. Prioritizing your family’s financial health today secures more than just a bank balance; it fosters a legacy of stability, confidence, and freedom.

Frequently Asked Questions About Family’s Finances

To build a solid foundation, you must first understand the various types of family financial status, ranging from those living paycheck-to-paycheck to those enjoying true generational wealth. This FAQ guide provides direct, actionable insights to help you identify your current position and implement the strategies needed to preserve your family's finances.

What is the meaning of family finances?

Family finances involve the strategic management of all household financial resources to support current needs and future goals. This process involves more than just tracking bank balances; it encompasses how a family earns, spends, saves, and invests its collective income. By actively coordinating these elements, families ensure they can cover daily living costs while simultaneously preparing for long-term milestones such as homeownership, education, and retirement.

Why is family finance necessary?

Active family finance management serves as the cornerstone of household stability and long-term psychological peace. Sound management ensures that your family can navigate systemic economic shifts without compromising your core quality of life. Ultimately, prioritizing these finances allows you to fund your children’s education, secure a comfortable retirement, and provide a reliable safety net that protects your loved ones during life’s inevitable transitions.

What is the 50/30/20 rule for family?

The 50/30/20 rule provides a straightforward blueprint for family budgeting by dividing your after-tax income into three categories: 50% for essentials, 30% for wants, and 20% for savings. You allocate 50% of your budget to needs, covering essential expenses like housing, groceries, utilities, and transportation.

You then dedicate 30% to wants, allowing for discretionary spending on family entertainment, dining out, and hobbies. Finally, you commit the remaining 20% to savings and debt repayment, which ensures you consistently build an emergency fund, invest for retirement, or pay down high-interest credit cards.

Take Control of Your Family’s Finances

Stop reacting to economic shifts and start driving your household toward a better future. By implementing these strategies today, you build the resilience necessary to protect your loved ones and grow your wealth regardless of market conditions. Your journey begins with a single, intentional step toward organization and discipline.

Schedule a Financial Strategy Session Today!

AA/Diversification Disclosure

Neither Asset Allocation nor Diversification guarantees a profit or protects against a loss in a declining market. They are methods used to help manage investment risk.

Blog Disclosure

Charts & Chat - January 18, 2026

Tue, 20 Jan 2026 17:06:24 GMT

This week, CEO Eric Boyce, CFA discusses:

1. inflation trends heading into 2026 are favorable, pending risks from policy shocks or politicized Fed. Money supply growth also bears watching

2. Producer prices remain elevated; potential supply chain issues on the margin

3. recession probability falling, strong 4th quarter economic growth expected. First half 2026 visibility much better than the end of 2026 visibility

4. retail sales, NY/Philly Fed survey's positive; capital spending trending higher

5. labor market slowing; increased joblessness amongst younger worker and those with degrees

6. update on residential housing; oil production

7. Investor sentiment remains high, volatility low in both equity and fixed income; increased breadth in the equity markets - all sectors above moving averages

8. Lower 2 year rates steepening the yield curve; meanwhile, credit spreads remain very low - implying low risk of recession

Charts & Chat - January 11, 2026

Mon, 12 Jan 2026 16:49:03 GMT

This week, CEO Eric Boyce, CFA discusses:

1. no significant predictive investment trends from geopolitical events, especially over the medium to long erm.

2. bank lending recovering, defaults higher but not yet a problem; new business applications on the rise

3. Housing - confidence and affordability still main drivers; average monthly payments and mortgage interest rates remain sticky

4. Job market remains sluggish; job sentiment weak

5. manufacturing remains weak; service economy remains in expansion

6. Big divergence still exists for hard versus soft data; soft data is weak, while much of the observable data is more positive.

7. Atlanta Fed predicting 5% annualized GDP growth for the 4th quarter of 2025

8. Equity market concentrations and valuation bear watching; fixed income poised for better performance

5 Key Questions to Ask Before Investing in Alternative Assets

Fri, 09 Jan 2026 15:51:35 GMT

Five Quick Takeaways

Alternative assets can diversify a portfolio but require careful due diligence and patience.
Know your true time horizon; many alternatives are illiquid and slow to return capital.
Understand costs, complexity, and the obscure nature of these investments.
Fit alternatives into a clear allocation plan; don’t let them crowd out emergency cash or core equity/bond exposures.
Work with trusted advisors and use conservative estimates for return and liquidity when modeling outcomes.

What Are Alternative Assets?

Alternative Assets are investments that sit outside the familiar world of public stocks, government bonds, and cash. They include real estate, private equity, hedge funds, venture capital, commodities, collectibles (like art or classic cars), infrastructure, and certain structured products. Many investors pursue alternatives to chase higher returns, reduce correlation with public markets, or gain access to niche economic opportunities that public markets don’t capture.

Alternative investments come in various forms, some of which are accessible to everyday investors. Private equity and private credit funds typically remain limited to accredited investors, while real estate funds, interval funds, and publicly traded REITs provide more accessible entry points.

Difference between Alternative Assets and Traditional Assets

At a glance, the difference between alternative assets and traditional assets comes down to liquidity, transparency, and correlation :

Liquidity: Traditional assets (stocks, bonds, cash) trade daily on public markets. Many alternatives don’t. You may need months or years to exit a private equity stake or sell a private real estate holding.
Transparency & Pricing: Public assets have continuous price discovery. Alternatives often use periodic valuations and rely on appraisals or model-based pricing.
Correlation: Alternatives can have low correlation to public markets, which helps diversification. But low correlation is not a guarantee; in stressed market conditions, correlations can converge.
Access & Minimums: Many alternatives demand higher minimum investments, require accredited investor status, or come packaged through closed-end funds or institutional vehicles.
Complexity & Fees: Alternatives often involve more complex governance, structures, and fee models (management fees, performance fees, transaction costs).

Let’s walk through five internal questions you should ask yourself before allocating money to alternatives. These are practical checkpoints that protect capital and expectations.

Before You Invest: 5 Internal Questions to Ask Yourself

1. What Is My True Investment Time Horizon?

Your investment time horizon is the most important single question when evaluating alternatives.

Many alternatives reward patient capital. Private equity takes years to source, grow, and exit companies; a real estate development can tie up capital through zoning, construction, and leasing cycles; a venture capital fund expects a multi-year maturation of startups.

Ask yourself:

When will I need this money? (Exact year or date range.)
Can I tolerate waiting multiple years before seeing returns or principal back?
Do I have shorter-term cash needs or liabilities that would force an early exit?

If you need capital in the next 1–3 years, alternatives are usually a poor fit. They can lock up capital and impose penalties or unfavorable exit terms if you try to leave early. If you have a longer horizon (5–10+ years), specific alternatives may make sense as part of a diversified strategy.

2. Can I Afford to Be Illiquid?

Many advisors and fund managers claim illiquidity delivers higher returns, but the tradeoff offers no guarantee in practice. Increased competition, evolving fund structures, and growing secondary markets have all contributed to narrowing the return advantage once associated with long lockups. Industry analysis on the erosion of the illiquidity premium highlights why investors should be cautious about assuming that illiquidity alone leads to better outcomes.

Practical checks:

Keep a liquid emergency fund equal to 6–12 months of living expenses (or more if you have dependents or volatile income).
Don’t use alternative allocations to fund expected short-term costs (tuition, home down payments, debt repayment).
Understand the fund’s lock-up, notice periods, redemption windows, and secondary market options.

If you can’t afford to be illiquid for a prolonged period, alternatives that restrict redemptions are not suitable.

3. How Does This Fit Within My Broader Portfolio?

Good alternative assets management starts with portfolio context . Alternatives should complement core exposures such as equities and bonds, unless you have a professionally managed total portfolio strategy.

Questions to consider:

What percentage of my portfolio will this alternative represent? (Many advisors suggest modest initial allocations, single-digit to low double-digit percentages, depending on risk tolerance and sophistication.)
Does this investment increase concentration in a sector, geography, or manager?
How do the expected return, risk, and correlation compare to my existing holdings?
Will fees and expected tax treatment materially change net returns?

Limit the use of complex, illiquid, or high-fee investments, especially if they share similar risk factors (like funds focused on late-stage tech startups), as they may not offer the expected diversification.

Alternatives work best when they complement traditional investments rather than replace them. Many professionals advocate for this balanced approach, especially during market changes. Research shows that durable investing ideas help illustrate how alternatives can support diversification, income generation, and resilience when thoughtfully integrated into a long-term plan.

4. Am I Comfortable With Less Transparency?

Unlike public stocks, alternatives often lack daily performance reporting, broad market pricing, and easy-to-compare benchmarks. You’ll typically rely on sponsor reports, appraisals, and periodic valuations.

Consider:

How frequently will the manager report performance and holdings?
Is the manager open to investor inquiries and due diligence?
Will valuations be conducted by independent third parties or internally?
Does the investment include transparent governance (e.g., investor advisory committees, audit rights)?

If you need the reassurance of daily pricing and full disclosure, alternatives may feel uncomfortable. But if you can accept periodic updates and focus on long-term outcomes, the tradeoff can be worthwhile. Insist on clarity around reporting cadence and valuation methodology before committing capital.

5. Do I Understand the Complexity and Costs Involved?

Costs matter. Alternatives frequently carry layers of fees: acquisition fees, management fees, performance (carry) fees, transaction costs, custody fees, appraisal fees, and sometimes multiple levels of fees if the asset sits within a fund-of-funds structure.

Steps to protect yourself:

Request a complete fee schedule and a plain-English explanation of each fee.
Request pro forma net-return scenarios that incorporate fees, taxes, and anticipated liquidity constraints.
Understand tax treatment. Alternatives can create complex tax consequences (e.g., unrelated business taxable income under specific partnership structures, depreciation recapture for real estate, or K-1 reporting complexities).
Clarify exit mechanics and any penalties or gates for redemptions.

Complexity doesn’t disqualify an investment, but it demands that you either have the expertise to evaluate it or that you work with advisors who do. Never rely solely on marketing materials; ask for sample investor reports, audited financials, and references.

Conclusion: Alternative Assets Management Begins with Self-Awareness

Alternative assets can add meaningful diversification, access to unique return streams, and a hedge against certain market risks, but they are not a one-size-fits-all solution. Effective alternative asset management starts with honest answers to the five questions above: your time horizon, liquidity needs, portfolio fit, transparency tolerance, andcost understandings.

Take time to model outcomes conservatively. Treat alternatives as a strategic allocation within a well-constructed plan, not a speculative bet. When you pair self-awareness with rigorous due diligence and patient capital, alternatives have the potential to enhance long-term portfolio outcomes, while keeping risk in the driver’s seat.

Frequently Asked Questions About Alternative Assets

What are alternative assets examples?

Common examples include:

Real estate: direct property ownership, private REITs, real-estate funds.
Private equity & venture capital: investments in private companies at various stages.
Hedge funds: strategies that use leverage, long/short, arbitrage, or event-driven approaches.
Commodities: physical assets like oil, natural gas, metals, or agricultural goods.
Infrastructure: assets such as toll roads, utilities, or airport concessions.
Collectibles: art, classic cars, wine, or rare coins.
Credit strategies: direct lending, distressed debt, or mezzanine financing.

Each example carries different liquidity profiles, return drivers, and operational demands. Real estate and infrastructure often provide steady cash flows; private equity targets capital appreciation over several years; collectibles depend on rarity and market demand.

What are the 7 types of investments?

A commonly used educational classification lists seven broad investment types:

Cash and cash equivalents (savings accounts, money market funds)
Bonds / fixed income (government, municipal, corporate bonds)
Stocks/equities (public company shares)
Real estate (both public and private)
Commodities (physical goods like gold, oil)
Alternative assets (private equity, hedge funds, collectibles)
Derivatives / structured products (options, futures, swaps)

This list overlaps categories. For instance, real estate can be both a traditional and alternative holding depending on how you access it, but it helps frame where alternatives sit within a broader investment universe.

Are alternative assets risky?

Yes, alternatives can be risky, but “risky” is a broad term. Risks include:

Illiquidity risk: inability to sell quickly at a fair price.
Manager risk: the investment’s success often depends heavily on the sponsor or manager.
Valuation risk: assets may be priced infrequently or via subjective appraisals.
Operational risk: underlying assets can be affected by poor operations, tenant vacancies, or regulatory changes.
Concentration risk: Some alternatives concentrate exposure to a single asset, sector, or geography.

Risk is not inherently bad; higher risk often corresponds to higher expected long-term return. The key is to align the risk with your capacity and willingness to bear it, and to diversify portfolios within and across asset classes where possible.

Is cash an alternative asset?

No. Cash is a traditional asset . Alternatives are defined by their difference from cash, public bonds, and equities, mainly in terms of liquidity, pricing frequency, and structure. Cash and cash equivalents serve a distinct role: capital preservation, liquidity, and short-term needs. You should maintain an appropriate cash allocation before committing meaningful capital to alternatives.

Looking for Guidance?

Five final takeaways

Start with questions, not products: confirm your horizon, liquidity needs, and portfolio fit before anything else.
Keep alternatives as a strategic slice of your portfolio; modest and intentional, not an all-in bet.
Prioritize transparency: insist on transparent reporting and valuation methodologies.
Be conservative in projections: account for fees, taxes, illiquidity, and the possibility of lower-than-expected returns.
Use advisors and reference materials; reliable research and experienced managers materially reduce execution risk.

If you’re considering how alternative assets may fit within your broader financial picture, thoughtful guidance can make a meaningful difference. At Boyce & Associates Wealth Consulting , we approach investments through a disciplined, planning-first framework that prioritizes portfolio alignment, careful manager evaluation, liquidity considerations, and risk awareness. A conversation with our team can help clarify how your time horizon, risk tolerance, and long-term objectives intersect with potential alternative strategies.

Schedule a Consultation

AA/Diversification Disclosure

Neither Asset Allocation nor Diversification guarantees a profit or protects against a loss in a declining market. They are methods used to help manage investment risk.

Accredited Investors (AI) Disclosure:

Interests are only being offered to institutional investors, as well as persons who qualify as Accredited Investors under the Securities Act, and a Qualified Purchaser as defined in Section 2(a)(51)(A) under the Company Act, or an eligible employee of the management company. This presentation does not constitute an offer to sell or a solicitation of an offer to buy Interests in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. There will not be any public market for the Interests.

These investments often behave differently from traditional stocks and bonds. They may be less liquid, valued less frequently, and evaluated using distinct metrics, necessitating a more informed approach. In wealth management, discussions around alternative strategies often highlight their impact on diversification, risk management , and long-term planning.

Alternative Investments Disclosure

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.

Blog Disclosure

Charts & Chat - January 4, 2026

Mon, 05 Jan 2026 16:35:14 GMT

This week, CEO Eric Boyce, CFA discusses:

1. breakdown of drivers behind the 3rd quarter economic growth data and what to possibly expect in 2026, including possible impact from lingering tariffs and the OBBBA

2. inflation and wage trends heading into the new year.

3. the impact of income levels on spending, consumer confidence and expectations, as well as impact of tariffs and OBBBA on consumers by income level.

4. home prices up, but rate of growth decelerating; median home price to income ratios increasing.

5. Manufacturing activity remains sluggish in the Dallas and Richmond Fed districts, but future order growth looks promising.

6. Net federal interest rate expense will become a significant conversation during the 2030's.

7. breakdown of 2025 equity market drivers, including by sector and by factor. What to expect at least for the first part of 2026.

8. discussion of concentration risk, valuation and volatility heading into the new year.

9. more normal treasury yield curve at beginning of year; discussion of potential for rate cuts.

10.breakdown of commodity performance in 2025 and implications for potential commodity supercycle based on potential weaker dollar expectations

11.state of alternative assets in portfolios, weak crypto markets at end of year, implications of declining Chinese fertility.

Start the Year Right: Financial Moves for 2026

Thu, 01 Jan 2026 12:00:01 GMT

The start of a new year is the perfect time to take control of your finances and set yourself up for success in 2026. Small, proactive steps now can make a big difference over the year. Always consult your CPA or financial advisor before making major financial moves.

1. Review 2025 and Set Goals

Reflect on last year’s successes and challenges. Use these insights to set clear goals for 2026—short-term goals like building an emergency fund or paying down debt, and long-term goals such as retirement, college savings, or homeownership.

2. Maximize Tax-Advantaged Accounts

Early contributions give your money more time to grow:

401(k)/403(b): Adjust contributions for 2026 limits. Contribute at least enough to receive your employer match.
IRA/Roth IRA: Make contributions early or set up monthly deposits for steady growth. Dollar-cost averaging helps maximize returns.
HSA: Fund your Health Savings Account if eligible. Invest appropriately—HSAs offer triple tax-free growth for those with a High-Deductible Health Plan.

3. Budget, Cash Flow & Debt Management

Review your monthly budget. Track income and expenses, prioritize high-interest debt, and consider refinancing if beneficial. Make sure your emergency fund covers 3–6 months of living expenses and prioritize replenishing this account before other savings.

4. Tax Planning & Charitable Giving

Project your 2026 taxable income and consider strategies to reduce taxes, such as Traditional 401(k) or IRA contributions and charitable donations. If you’re 70½+, a Qualified Charitable Distribution (QCD) or Donor-Advised Fund (DAF) can maximize giving while lowering taxable income.

5. Insurance, Estate & Investment Review

Ensure life, health, disability, and property coverage is adequate. Review wills and trusts at least every five years. Beneficiaries should be reviewed annually. Meet with your advisor to review investments.

Starting the year with a clear financial plan can reduce stress, maximize growth, and put you in control of your money. Boyce Wealth Consulting is here to answer questions and help you get on track!

2026 Market Outlook: Broadening Earnings & Selective Easing

Thu, 01 Jan 2026 12:00:01 GMT

Dear Clients and Friends,

We look ahead to 2026 with measured optimism. The U.S. economy continues to exhibit remarkable resilience amid an evolving policy landscapes, technological advancements, and global dynamics. While challenges persist, several structural tailwinds position U.S. investment markets—particularly the S&P 500—for potential continued appreciation in the coming year.

Positive Drivers: Robust Earnings Momentum and Broadening Growth for Equities

Consensus analyst estimates call for strong earnings growth for the S&P 500 in 2026, with forecasts centered around 14-15% year-over-year expansion. This would represent a third consecutive year of double-digit earnings growth, following solid gains in 2024 and 2025.

Key catalysts include (1) sustained capital expenditures in artificial intelligence infrastructure and related technologies, driving productivity enhancements across sectors; (2) broadening participation beyond the "Magnificent Seven" mega-cap tech stocks, with all 11 S&P 500 sectors expected to post positive earnings growth for the year; and (3) potential support from fiscal policies (i.e. the One Big Beautiful Bill), including tax incentives and deregulation, alongside corporate efficiency gains.

This earnings trajectory underpins bullish Wall Street price targets for the S&P 500 at year-end 2026, ranging from 7,100 on the cautious side to 8,100 at the high end, with many clustered around 7,500-8,000. From current levels, this implies potential upside of 4-18%, rewarding patient investors in quality investments.

Supporting this view is a steady U.S. economic backdrop. Consensus 2026 forecasts for real GDP growth hover around the 1.9-2.2% range, reflecting modest but resilient expansion driven by consumer spending, business investment, and anticipated Federal Reserve policy easing. While it doesn’t represent a “boom”, this above-trend pace—bolstered by healthy household and corporate balance sheets—does provide a solid foundation for corporate profits and equity valuations.

A Supportive Yet Cautious Backdrop for Fixed Income

After a strong performance in 2025 driven by Federal Reserve rate cuts and falling yields, the fixed income environment in 2026 is expected to shift toward more range-bound yields and a greater emphasis on coupon income rather than significant price appreciation.

The Federal Reserve has eased policy substantially in recent years, with the federal funds rate currently in the 3.50%-3.75% range following cumulative cuts of 175 basis points since late 2024. Consensus projections, including the Fed's own "dot plot," point to limited further

easing in 2026—potentially one to three 25-basis-point cuts—bringing the policy rate toward a neutral level around 3.0%-3.5%. This modest pace reflects resilient economic growth, a softening but stable labor market, and inflation that remains somewhat elevated above the 2% target.

U.S. Treasury yields are expected to remain in a relatively narrow range, with the 10-year Treasury likely trading between 3.75% and 4.5% by year-end, depending on the balance between growth, inflation pressures (including potential tariff effects), and fiscal dynamics.

A Growing Role for Alternatives in a Portfolio

Private equity, private credit, infrastructure, real estate, and other semi-liquid and illiquid strategies—continue to play a vital role in diversified portfolios. These assets offer potential for enhanced returns, income generation, and inflation hedging in an environment where traditional public equities and fixed income face elevated valuations and potential volatility in 2026. Alternatives provide exposure to structural trends like AI adoption, infrastructure modernization, and private market convergence (I.e. data centers, power generation).

Private equity enters 2026 with renewed optimism following a rebound in transaction activity, improved financing conditions, and recovering merger and acquisition activity. Meanwhile, private credit is now a mainstream “non-bank” financing source with assets exceeding $2.5 trillion globally, and it is poised for continued growth in 2026 due to strong borrower demand, business expansion and growth, as well as high yields.

Potential Risks and Headwinds: Consensus Fears and Hidden Vulnerabilities

No forward-looking assessment would be complete without acknowledging risks. The primary threat to market stability in 2026, is likely a sharp decline in technology valuations, triggered by fading enthusiasm around AI.

Other key concerns include (1) a new Federal Reserve chair pursuing overly aggressive rate cuts for political reasons, (2) stress emerging in private credit markets, (3) an unexpected rise in bond yields, and/or (4) central banks becoming forced to hike rates again due to stubbornly sticky inflation.

The consensus is also concerned with the AI concentration risk, given the market's heavy reliance on AI-related narratives and tech leadership. In the current environment, this "crowded consensus" on AI/technology could prove stabilizing short-term but simultaneously reduce the margin for error elsewhere.

However, history cautions against over-reliance on consensus views. When investors broadly agree on a specific risk and adjust positioning accordingly (e.g., through hedging or sector rotation), markets often deliver surprises from secondary vulnerabilities or overlooked areas, such as liquidity squeezes, rising balance sheet leverage, and policy reactions to trade tariffs, fiscal shifts, etc.

Additional headwinds which wea re monitoring heading into the new year include potential reacceleration in inflation from trade policies, a gradual softening in the labor market (with unemployment possibly ticking higher), and elevated valuations that offer limited buffer against disappointments. While our base case does not envision a recession, periods of heightened volatility remain possible if multiple risks converge.

Our Positioning: Disciplined, Diversified, and Vigilant

In this nuanced landscape, we continue to advocate for a straightforward, disciplined portfolio approach. This includes measured and diversified exposure to all major asset classes according to your investment policy, as well as active oversight to be alert to inflection points while participating in prevailing trends. We continue to stress diversification, risk management, and alignment with your individual time horizons and objectives.

We appreciate your trust and we are always here to answer your questions and discuss our outlook and its impact on your specific plan. Please do not hesitate to reach out if we can be of assistance!

Wishing you and your families a very healthy and prosperous 2026.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — January 2026

5 Things You Need To Know Before Hiring a Life Insurance Lawyer

Mon, 29 Dec 2025 18:31:04 GMT

Life insurance helps provide financial support to your loved ones, but claiming the benefit isn’t always simple. Delays, denials, and disputes often occur, especially when someone misses a payment, the policy is within the contestability period, or the beneficiary designation is unclear. These issues can complicate even well-planned insurance and risk management strategies.

In this article, we’ll cover five key things to know before hiring a life insurance lawyer, from when legal help is appropriate to how to evaluate the right attorney for your situation.

What to Know Before You Hire a Life Insurance Lawyer

Before hiring a life insurance lawyer, it's essential to understand when legal help is actually needed . The following are some of the most common scenarios where support may be worth considering.

1. When Do You Need a Lawyer for a Life Insurance Claim?

Whether or not you need a lawyer depends on the specific issue with the claim. In some cases, you can resolve the matter by contacting the insurance company directly. In others, especially those involving disputes or denied benefits, you may need a lawyer to review the situation. Below are four common scenarios where hiring a lawyer for a life insurance claim may be necessary.

Claim Denial

If the insurer denies a life insurance claim, it must provide a reason. Common reasons include alleged misrepresentation, incomplete documentation, or missed deadlines. These denials can be complex to challenge without legal experience. A life insurance lawyer can examine the denial letter, review the policy terms, and determine if there's a valid basis to appeal the decision.

Beneficiary Disputes

These disputes often occur in cases involving remarriage, estranged family members, or contested wills. A lawyer can help resolve conflicts by interpreting the policy, reviewing legal documents, and representing your position in negotiations or court if needed.

Contestability Period Issues

Most life insurance policies have a contestability period, typically the first two years after issuance. During this time, insurers can investigate claims for potential fraud or misstatements on the application. If the insurer contests a claim during this period, legal guidance may help you respond to their requests or defend against a denial based on alleged inaccuracies.

Lapsed Policy or Premium Disputes

A policy lapse due to missed premium payments can lead to a denied claim. However, lapses are not always clear-cut. The insurer must follow proper notice procedures, and some policies allow for reinstatement or grace periods. A life insurance policy lawyer can review how the insurer handled the lapse and determine whether you can still pursue the claim.

2. Understanding the Types of Life Insurance Policies

Not all life insurance policies are the same. The type of policy in place can influence how claims are processed and whether legal issues arise. Some policies are simple, while others involve cash value, investment components, or trust arrangements. Understanding the basics of each can help you or your lawyer identify potential challenges early on.

Term Life Insurance

Term life insurance covers a specific period, usually 10, 20, or 30 years. If the insured passes away during the term, the insurer pays the benefit to the listed beneficiary. These policies are typically simpler, but problems can arise if the claim is made after the term ends or during a policy lapse. You may need a lawyer for life insurance claims if the insurer denies your claim because the policy expired or wasn’t renewed, especially if the insurer failed to explain the term limits clearly.

Whole Life Insurance

Whole life insurance provides permanent coverage and includes a savings or “cash value” component. Many people use these policies as part of long-term estate planning and place them in a trust. Disputes involving life insurance trust lawyers often arise when beneficiaries don’t understand who manages the policy or who controls the proceeds. Legal issues can also come up when the insurer delays a claim due to questions about ownership or the trust’s structure.

Universal and Variable Life Insurance

Universal and variable life insurance policies offer flexible premiums and sometimes allow investment of the policy's cash value. These added features can also bring complications. Common issues include underfunded policies, unexpected changes in the death benefit, or confusion over policy value. Legal support can be helpful when policyholders or beneficiaries believe there’s been mismanagement or misinformation about how the policy works.

Life Insurance for Seniors

Life insurance purchased later in life often comes with more limitations. Policies for seniors may include graded death benefits, longer contestability periods, or strict exclusions for specific causes of death. Disputes can also arise when policies are sold through aggressive marketing or without clear disclosure. In these cases, a lawyer can help review the policy terms and determine if a claim denial is enforceable under state law.

3. What Questions Should You Ask a Life Insurance Lawyer?

Hiring the right life insurance lawyer starts with asking the right questions . A lawyer’s background, approach, and communication style can significantly affect how they handle your case. Below are key areas to focus on during a consultation.

Experience and Specialization

Not all lawyers handle life insurance cases regularly. Ask how much experience the attorney has with life insurance claim disputes, especially those similar to your situation. It's helpful to know:

How many life insurance claims have they worked on
If they’ve dealt with the same insurer you’re facing.
Whether they’ve handled cases involving trusts or complex beneficiaries

If your case involves a trust-owned policy, consider asking whether they have experience as a life insurance trust lawyer.

Claim Denial Strategy

If the insurer has denied your claim, ask how the lawyer approaches these cases. A strong strategy often involves reviewing the denial letter, policy documents, and relevant state laws. You might ask:

“How do you typically challenge a denial?”
“What steps do you take before filing a lawsuit?”
“Have you successfully reversed similar denials in the past?”

Their answers should give you a clear sense of what to expect and how thorough their process is.

Fee Structure

Understanding how lawyers charge is essential. Some work on a contingency basis (only getting paid if you win), while others charge hourly or flat fees. Ask:

“Do you offer an unlimited consultation?”
“Do you charge hourly, or work on contingency?”
“Are there any upfront costs or filing fees I should know about?”

Clarity here helps avoid surprises and ensures the arrangement fits your budget and confidence level.

Case Management

You should know who will handle your case and how they will communicate updates with you. In larger firms, the lawyer you speak with may not be the one managing your file day to day. Ask:

“Will you personally handle my case?”
“How often will I receive updates?”
“Who should I contact if I have questions?”

You want to feel confident that your case won’t be overlooked or lost in a queue.

4. Red Flags to Watch For When Hiring a Life Insurance Lawyer

Choosing the right lawyer is just as important as deciding to hire one at all. While many attorneys offer valuable guidance, not all are equally qualified or transparent. Below are several warning signs that may indicate the lawyer isn’t the right fit for your case.

Guarantees or Promises of Outcome

Be cautious of any lawyer who promises a specific outcome, such as “guaranteed approval” or “100% chance of winning.” No attorney can predict the exact result of a claim or legal dispute. Ethical professionals provide informed opinions based on experience, not guarantees. Look for those who offer realistic assessments, not sales pitches.

Lack of Transparency in the Fee Structure

If a lawyer is vague about how they charge or avoids giving a clear answer, that’s a red flag. Whether they charge a flat fee, an hourly rate, or a contingency fee, the lawyer should clearly explain how and when they will bill you. A trustworthy life insurance lawyer will also outline any potential additional costs, such as filing fees or expert reports, upfront.

Poor Communication or Unclear Responsibility

A lawyer should explain how they’ll manage your case and how you can expect to stay informed. If they avoid answering questions, take too long to respond, or don’t clarify who will handle your file, it may lead to frustration later. Good legal service includes clear points of contact and consistent updates.

No Experience with Life Insurance Cases

Life insurance law has its own rules and complexities. If the lawyer’s background is mostly in unrelated areas, such as general civil litigation or family law, they may not be familiar with the nuances of life insurance, trust-owned policies, or insurer tactics. Ask for examples of past work specifically related to life insurance disputes to ensure the lawyer has the experience needed to handle your situation.

5. Legal Processes a Life Insurance Lawyer Can Help With

When life insurance claims don’t go as planned, legal support can make a significant difference in how the process moves forward. A lawyer familiar with life insurance policies can step in at different stages, from initial filing to courtroom representation. Below are the main areas where they can help.

Filing and Appealing a Claim

While filing a claim may seem straightforward, even minor documentation errors can lead to delays or denials. A lawyer can ensure the initial claim includes all necessary information, is submitted on time, and complies with the policy terms.

If the insurer has already denied the claim, a life insurance claim lawyer can handle the appeal by reviewing the reason, collecting documents, and drafting a formal response.

Negotiating with Insurers

In some cases, insurers may delay processing a claim or offer a managed payout. A lawyer can communicate directly with the insurance company on your behalf, present evidence, and push back against unreasonable delays or settlement offers. This negotiation phase often helps resolve the issue without the need for formal litigation.

Litigation and Court Representation

If you and the insurer cannot resolve the dispute through appeal or negotiation, you may need to take the case to court. A lawyer for life insurance claims can file a lawsuit against the insurer, represent you in court, and present your case with supporting documentation and expert testimony.

How to Choose the Right Life Insurance Lawyer

Once you decide that legal help is necessary, the next step is finding a lawyer who is qualified, responsive, and the right fit for your case. Life insurance disputes can be time-sensitive and complex, so experience matters, but so does communication and transparency.

Look for Relevant Experience

Choose a lawyer who has direct experience with:

Denied life insurance claims
Contestability period disputes
Beneficiary or trust-related issues
Negotiating with major insurance companies
Representing clients in life insurance litigation, if needed.

Evaluate Communication Style

A good lawyer should explain:

How the legal team will manage your case
Who will be your main point of contact?
How often will you receive updates?

Make sure you feel confident with how they communicate. Clear, consistent updates are essential throughout a legal process.

Understand the Fee Structure

Ask for a detailed explanation of costs, including:
Whether they offer an unlimited consultation
If they charge hourly, flat rate, or work on contingency
Any potential out-of-pocket costs (e.g., court or filing fees)
Transparency up front is a good sign of a trustworthy professional.

Check Reviews and References

Before making a decision, look for:

Online reviews or testimonials from former clients
Any history of complaints or disciplinary action (check your state bar’s website)
A willingness to provide references, if appropriate

These insights can help you understand how the lawyer handles real-life cases and communicates with clients under pressure.

Conclusion: The Importance of Choosing the Right Lawyer

Life insurance claims can become complicated for many reasons: disputed beneficiaries, unclear policy terms, denied claims, or questions about policy lapses. In these situations, the proper legal guidance can help you understand your options and take the next appropriate step.

Not every claim requires a lawyer, but when legal questions or disputes arise, working with someone experienced in life insurance law can provide clarity. A qualified lawyer will review the details of your case, explain your rights, and guide you through appeals or legal action if necessary.

Taking the time to choose the right lawyer, one with experience, clear communication, and transparent fees, helps ensure they handle your case professionally.

Frequently Asked Questions About Life Insurance Lawyer

How do you tell a good lawyer?

A good lawyer is experienced, responsive, and transparent. They clearly explain your legal options, fee structure, and what to expect throughout the process. A lawyer may avoid answering questions, make unrealistic promises, or have little experience with life insurance cases. You can also check online reviews and your state bar’s website for complaints or disciplinary actions.

How do I fight a life insurance policy?

If your claim is denied or disputed, start by reviewing the denial letter and the policy terms. You can request an internal appeal from the insurance company. If the issue remains unresolved, a life insurance lawyer can help file a formal appeal or lawsuit. The lawyer will gather supporting documents, communicate with the insurer, and represent your position if legal action is needed.

Can life insurance be taken in a lawsuit?

In some cases, yes. Life insurance proceeds may be subject to claims by creditors, especially if the policy is part of the deceased person’s estate. However, if a named beneficiary is listed, those funds typically bypass the estate and may be preserved.

What is the 7-pay rule for life insurance?

The 7-pay rule is a tax regulation that applies to certain permanent life insurance policies. It limits the amount of money you can pay into a policy over seven years. If you exceed the limit, the IRS may classify the policy as a Modified Endowment Contract (MEC), which can affect its tax treatment.

How long do you have to contest a life insurance policy?

Most policies have a contestability period of two years from the date the policy was issued. During this time, the insurance company can investigate and deny claims based on misstatements or omissions on the application. After the contestability period ends, it’s much harder for an insurer to deny a claim unless there’s evidence of fraud.

Talk to a Life Insurance Lawyer Today

If you're dealing with a denied life insurance claim, a dispute over policy terms, or simply aren't sure what steps to take next, speaking with a qualified life insurance lawyer can provide clarity. Legal guidance can help you better understand the policy, your rights as a beneficiary, and the options available to you.

At Boyce & Associates Wealth Consulting , we support our clients with access to trusted professionals when legal and financial matters intersect. If your life insurance situation affects your broader financial plan, we can help you navigate the next steps with care and experience.

Schedule a Consultation

Tax/Legal Disclosure

Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

Blog Disclosure

VUL Disclosure

Please consider the investment objectives, risks, charges, expenses, and your need for death-benefit coverage carefully before investing. The prospectus, which contains this and other information about the variable life policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable life policy are not guaranteed. Variable life sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the policy is surrendered. Any guarantees offered are backed by the financial strength of the insurance company.

Charts & Chat - December 21, 2025

Mon, 22 Dec 2025 16:32:53 GMT

This week, CEO Eric Boyce, CFA discusses:

1. inflation lower than expected as government data releases get back to normal following shutdown

2. regional Fed districts report mixed manufacturing activity and new orders heading into the new year

3. demographic data and its impact on future economic trends, declining number of families with children under 18 and net immigration

4. data on the housing market, affordability etc.

5. power generation demand will drive investment in the next 5-10 years

6. commodity update - oil market soft, but potential upside; copper, food basket increases

7. investor sentiment remains high, cash balances low, risk appetite is "on".

8. important role and historical impact of dividends and dividend paying stocks on overall performance and risk

9. international investments outperforming domestic; gold prices correlated with increased uncertainty and high yield correlated to crypto

Charts & Chat - December 14, 2025

Mon, 15 Dec 2025 15:46:11 GMT

This week, CEO Eric Boyce, CFA discusses:

1. estimates heading into 2026 call for 8.7% stock growth off 12-14% earnings growth - estimates are a guide but a by no means an absolute

2. Fed cuts rates for the last time in 2025, what are the implications

3. the nuts and bolts behind the K-shaped economy for consumers, investors, businesses etc.

4. reasons behind recent improvement in trade; downtrend in employment costs

5. international equity outlook positive for 2026, risk appetite higher in all global markets

6. Mag 7 not uniformly beating the broader index; some improvements in breadth

7. yield curve positive, but longer term rates are higher than when the Fed began cutting short term rates. May see more volatility in bonds in 2026

8. commodity trends mixed; crude/distillate stocks lower, implying higher prices ahead

Charts & Chat - December 7, 2025

Wed, 10 Dec 2025 16:20:41 GMT

This week, CEO Eric Boyce, CFA discusses:

1. So-called "hard" economic data looking much better than "soft" data, fueling increased confidence, optimism, earnings estimate increases and market outlook for 2026

2. earnings and economic growth expected across global markets, as output remains mostly steady and public market valuations not too far from historical averages

3. US service sector remains in growth territory; production slightly positive, although capacity utilization remains depressed

4. apartment rents down, helping to hold inflation lower; multi-family vacancies rising. Single family transaction cancellations are on the rise.

5. labor market softness illustrated, highlighted by small business contraction

6. investor sentiment higher, leading to more of a "risk-on" environment

7. credit defaults looking better, leading to recompression of credit spreads in the market

8. treasury issuance spiking, which is helping to hold interest rates higher then they would otherwise likely be

Top 5 Financial Challenges Every Business Owner Faces and How to Avoid Them

Fri, 05 Dec 2025 18:18:37 GMT

Running a business means more than delivering a great product or service; it also involves managing money with consistency and precision. From payroll and vendor payments to taxes and long-term planning, financial responsibilities are a core part of daily operations. Without proper systems or support from financial planning services , even stable businesses can run into avoidable trouble.

In this article, we’ll break down five of the most common financial challenges business owners face today and share straightforward, practical ways to address and avoid them.

The Most Common Financial Challenges of Business Owners

Even when revenue looks strong on the surface, financial issues often build quietly in the background. Below are five of the most common challenges business owners face, regardless of how long the business has been operating or how profitable it may seem.

1. Inconsistent Cash Flow

Cash flow refers to the movement of money into and out of your business. When cash flow is unpredictable, it becomes difficult to cover essential operating expenses such as payroll, rent, supplier payments, and utilities. These inconsistencies often occur when customers delay their payments or when a business experiences seasonal highs and lows without adequate financial planning.

Even if the business is generating revenue, delayed payments can create a gap between when it expects to receive money and when it actually becomes available. This timing mismatch can disrupt operations by making it harder to meet immediate obligations, such as paying staff or restocking inventory, thereby affecting service quality or slowing productivity.

2. Poor Budget Planning

Many businesses either operate without a proper budget or use outdated ones that no longer reflect their current reality. Some simply copy last year’s numbers without adjusting for market changes or shifts in operating costs, while others estimate their figures based on intuition rather than actual data.

Without a clear, up-to-date budget, business owners may struggle to plan for slower revenue periods or unexpected expenses.

A realistic budget helps identify how much the business spends on areas such as marketing, labor, inventory, and debt repayment, and whether those expenses align with revenue goals and business priorities.

3. Difficulty Accessing Capital

Securing funding is a common hurdle for business owners, whether they aim to invest in new equipment, open a second location, or cover short-term cash flow gaps. Traditional lenders often require a solid credit history, up-to-date financial statements, or collateral, which not all businesses have readily available.

When funding isn’t accessible at the right time, business owners may have to delay growth plans, manage operations, or rely on personal savings and high-interest credit cards. In many cases, the issue isn’t a lack of capital in the market; it’s that the business isn’t in a position to meet lending requirements when the opportunity arises.

4. Underpricing Products or Services

In an effort to stay competitive or win new customers, some businesses set prices too low, sometimes without fully understanding their own cost structure. While lower prices might bring in sales initially, they can hurt the bottom line if they don’t account for labor, materials, overhead, and a reasonable profit margin.

Over time, this leads to a situation where the business is doing more work without seeing a meaningful return. In addition, customers may begin to associate the lower price with lower value, making it harder to raise prices later. Effective pricing should reflect both the value provided and the actual costs involved in delivering that value.

5. Lack of Financial Literacy

Not every business owner has a background in finance, and that’s completely understandable. But a lack of basic financial knowledge can lead to decisions that don’t support the long-term health of the business. For example, misinterpreting cash flow timing, failing to review profit-and-loss statements, or failing to track key financial metrics can lead to missed warning signs.

Improving financial literacy doesn’t mean learning to do everything yourself. It simply means becoming familiar with how your business earns, spends, and retains money and knowing when to seek outside advice.

How to Overcome Financial Challenges as a Business Owner

Financial problems don’t always show up suddenly; many build up over time. The good news is that business owners can manage challenges early on with a few consistent habits, especially when they include risk management in their financial planning .

Here’s a simple approach any business owner can follow to stay financially on track.

1. Check your numbers regularly

Set aside time each month to review your income, expenses, and cash flow. Keep an eye on what you’re earning, what you’re spending, and whether anything looks off. Doing this often helps you catch issues before they grow.

2. Use simple tools to track performance

Use basic financial tools or software to monitor your business's performance. Look for key numbers such as profit, expenses, and cash on hand. These help you understand where your money is going and what needs attention.

3. Ask for advice when needed

Build a relationship with a trusted accountant or financial advisor. They can help explain things, point out risks, and guide you through decisions. You don’t need to talk to them every day, just know who to call when you have questions.

4. Keep learning the basics

Take time to learn more about business finances when you can. Short courses or videos can teach you how to read reports, manage a budget, or understand taxes. The more you know, the easier it gets.

5. Have a simple backup plan

Set aside some savings or plan how to handle a slow month. You don’t need a complex emergency strategy; just a small cushion or access to a line of credit can make a big difference when something unexpected happens.

Financial Challenges Across Sectors and Contexts

Financial challenges don’t look the same for every business. Depending on the sector, the organization's structure, or even the community it serves, the economic pressure points can shift. Below are three common contexts in which financial challenges manifest.

Nonprofit Organizations

Nonprofits are mission-driven, but that doesn’t mean they’re immune to financial strain. In fact, many nonprofits work with tight budgets and face unique funding challenges.

Common financial issues in nonprofits include:

Delayed funding from grants or donors, which can interrupt programs or payroll
Restrictions on funds that limit how business owners can use money
Lack of emergency reserves , since most donors allocate their contributions to specific initiatives.
Overdependence on one or two funding sources , increasing risk if those disappear

Nonprofits often rely on careful budgeting, financial transparency, and diversified income streams, such as launching recurring donation programs or applying for different types of grants.

Small Businesses

Small business owners juggle many roles, and finances are often among the toughest to manage. Cash is usually tight, and there’s less room for error.

Typical financial challenges for small businesses :

Cash flow issues , especially when customers delay their payments
Limited access to credit or funding for growth or emergency use
Tight margins make it difficult to absorb unexpected expenses
Difficulty managing taxes, payroll, or inventory without formal systems

Simple tools like regular cash flow check-ins, clearer payment terms with clients, and basic bookkeeping practices can help small businesses stay financially steady, even with limited resources.

Financial Inclusion

Not every business owner has equal access to financial tools and support. Some face added challenges simply because of where they live, their background, or their financial history.

Barriers to financial inclusion often include:

Lack of access to traditional banks or credit
Limited credit history or low financial literacy
Geographic barriers , especially in rural or underserved areas
Cultural or language gaps in financial services

Without access to affordable loans, banking, or financial education, some entrepreneurs fall behind, even if their business ideas are strong. Improving financial inclusion helps level the playing field for more people to succeed.

Final Thoughts: Preventing Financial Problems Before They Start

Financial challenges are often easier to manage when you catch them early, or better yet, before they happen at all. The reality is that many financial issues don’t appear overnight. They tend to build up slowly through minor oversights, decisions, or habits.

The best approach is to stay consistent with the basics:

Keep track of your numbers. Even a quick monthly review of cash flow, expenses, and outstanding invoices can go a long way.
Plan for slower periods or unexpected costs. A small financial buffer can make a big difference during a downturn.
Ask for help when needed. A second opinion from a trusted advisor or accountant can bring clarity when things feel uncertain.
Make time to learn. Improving your financial knowledge, even a little at a time, gives you more confidence in your decision-making.

Financial problems aren’t always avoidable, but they are easier to handle when your business has good habits in place. Staying informed, being proactive, and asking the right questions early can help manage stress and keep things on track.

Frequently Asked Questions About Financial Challenges

What is a financial challenge?

A financial challenge refers to any situation that makes it difficult to manage money in a business. Examples include not having enough cash to pay bills, exceeding the budget, falling behind on taxes, or having trouble securing funding. These challenges can affect daily operations, long-term plans, or both.

What are the four types of financial crisis?

The four main types of financial crisis are:

Banking Crisis – When banks face major losses or fail, it affects the economy and lending systems.
Currency Crisis – When a country’s currency loses value quickly, it causes instability.
Sovereign Debt Crisis – When a government cannot repay its debts, it leads to financial trouble.
Systemic Crisis – When multiple financial sectors fail at the same time, causing a broader economic breakdown.

While these are large-scale issues, small businesses can feel the impact through tighter credit, higher costs, or reduced consumer spending.

What is another word for financial challenges?

Other terms that mean the same or are similar include:

Financial difficulties
Money problems
Cash flow issues
Economic hardship
Budget constraints
Financial pressure

These phrases are often used depending on the severity or context of the issue.

What is the biggest challenge in finance?

A major financial challenge for many small business owners is maintaining steady cash flow. A business might show a paper profit, but if income and expenses don’t align in real time, it can be difficult to cover bills, reinvest in the business, or respond to unexpected costs.

Need Financial Guidance for Your Business?

Every business has financial ups and downs; it comes with the territory. But you don’t have to handle it all on your own. Whether you’re trying to smooth out your cash flow, plan more effectively, or simply get a clearer picture of where things stand, having someone to walk through the numbers with you can make a big difference.

At Boyce & Associates Wealth Consulting , we help business owners take a more practical, steady approach to their finances. No pressure. No complicated talk. Just thoughtful guidance tailored to where you are and where you’re heading.

Schedule a consultation

AA/Diversification Disclosure

Neither Asset Allocation nor Diversification guarantees a profit or protects against a loss in a declining market. They are methods used to help manage investment risk.

Blog Disclosure

Charts & Chat - November 30, 2025

Mon, 01 Dec 2025 19:28:54 GMT

This week, CEO Eric Boyce, CFA discusses:

1. 3rd quarter GDP looking close to 4% annualized; retails sales setting up positive 4th quarter 2025 growth scenario

2. probability of rate cut this next month increased based on recent Fed speakers and weaker labor data; regional data is mixed, but overall data has a positive bias

3. sentiment lower overall, and dragged down by lower incomes; creates some ambiguity over first quarter 2026 economic growth prospects

4. house price growth stalling; pending home sales showing some signs of life

5. market breadth discussion - Mag 7 versus the rest of the index; growth versus value, large versus small could be at an inflection point(?)

6. Potential signals from increased insider selling; however, increased foreign investment in US markets

7. yield curve discussion; some of the reason behind gold's rise

8. commodity markets settling down; crude oil futures lower

Year-End 2025: Resilience, Fed Easing, and a 2026 Outlook

Mon, 01 Dec 2025 12:00:40 GMT

Dear Clients and Friends,

As we close the books on 2025 and look ahead to the holiday season and a new year, we want to provide a thoughtful review of recent market developments, the economic landscape, and the evolving policy environment in Washington. Despite periods of heightened volatility, patient investors have been rewarded this year, and we continue to believe that high-quality, diversified portfolios remain well-positioned for the opportunities and challenges that lie ahead.

2025 in Review: Resilience Amid Uncertainty

U.S. equities delivered solid gains through most of 2025, driven by continued corporate earnings growth, productivity gains from artificial intelligence adoption, and a resilient consumer.

November brought a sharp pullback, however, as concerns over elevated valuations in technology shares, lingering inflation pressures, and policy uncertainty triggered a 4–6% correction across major indexes. The “Magnificent Seven” mega-cap technology names – which had powered much of the year’s advance – were particularly hard hit, declining more than 6% in the month. Value-oriented and smaller-cap segments held up relatively better, highlighting the benefits of broad diversification.

Fixed-income markets reflected a more cautious tone. The 10-year U.S. Treasury yield hovered around 4.1–4.3% through much of the fall, ending November near 4.13%. Intermediate-term, high-quality bonds provided ballast during the equity sell-off, while high-yield credit benefited from still-solid corporate fundamentals.

Economic Backdrop: Growth Persists, Inflation Remains Sticky

The U.S. economy has continued to expand at a moderate pace despite headwinds from higher interest rates and policy disruptions. Third-quarter GDP growth came in near 4% annualized (per available nowcasts), supported by healthy consumer spending and business investment – particularly in AI-related infrastructure.

Labor markets have cooled gradually but remain resilient, with private payroll indicators showing steady (if slower) job creation. Unfortunately, the prolonged government shutdown that began in October delayed critical official data releases – including October employment and CPI figures – leaving policymakers and investors relying on private surveys and alternative metrics. Available indicators suggest core inflation remains in the 2.8–3.0% range, above the Federal Reserve’s 2% target but trending lower over time.

The Federal Reserve cut the federal funds rate by 25 basis points in both September and October, bringing the target range to 3.75–4.00%. Minutes from the October meeting revealed a divided committee, with some members concerned that further easing could rekindle inflation, while others prioritized labor-market risks. Market expectations for a December cut have fallen below 50%, and we anticipate the Fed will proceed cautiously into 2026, likely delivering only one or two additional reductions if inflation continues to moderate.

Policy Developments in Washington

Tariff policy remains the largest wildcard. While sweeping new tariffs announced earlier in the year contributed to market volatility, many of the most aggressive proposals have been paused or moderated during negotiations with trading partners. We expect a pragmatic approach in 2026: targeted tariffs to address specific trade imbalances, paired with incentives for domestic manufacturing and energy production. History from the first Trump term shows that tariff threats are often used as negotiating leverage rather than fully implemented policy.

Overall, the combination of lower corporate taxes, deregulation, and fiscal stimulus from the One Big Beautiful Bill Act could provide a modest tailwind to economic growth and corporate earnings in 2026 and beyond.

Outlook for 2026: Cautious Optimism

Looking ahead, we expect U.S. economic growth to remain above-trend at 2–2.5%, supported by AI-driven productivity gains, easier financial conditions, and pro-growth policies. Corporate earnings are forecast to rise 7–11%, with broader participation beyond the largest technology names.

We anticipate:

Equities: Continued leadership from U.S. stocks, particularly in sectors benefiting from deregulation (financials, energy, industrials) and AI infrastructure. International equities may face headwinds from a stronger dollar and selective tariffs.
Fixed Income: Modestly lower Treasury yields (10-year potentially in the 3.75–4.25% range) as the Fed eases gradually. High-quality credit and intermediate-duration bonds remain attractive for income and ballast.
Key Risks: Renewed inflation from tariffs or fiscal stimulus, geopolitical flare-ups, or an overly restrictive Fed policy. We monitor these closely and stand ready to adjust allocations.

Our core conviction remains unchanged: long-term investors are best served by staying invested in a disciplined, diversified portfolio aligned with individual goals and risk tolerance. Short-term volatility – while uncomfortable – has historically created opportunities for those who maintain perspective.

We are grateful for your continued trust and partnership. Please don’t hesitate to reach out to discuss your portfolio or any questions you may have as we enter the new year.

Wishing you and your family a joyful holiday season and a prosperous 2026.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — December 2025

2025 Year-End Money Tips

Mon, 01 Dec 2025 12:00:40 GMT

As 2025 winds down, it’s a great time to review your financial strategy. Many tax-advantaged opportunities expire on December 31, so acting now can put you in a stronger position for 2025. Always consult your CPA or financial advisor before making any changes.

1. Max Out IRA Contributions (Including Backdoor Roths)

For 2025, the IRA contribution limit is $7,000 (under 50) or $8,000 (50+). Roth contributions phase out for singles with MAGI $150,000–$165,000 and joint filers $236,000–$246,000.

If your income exceeds these limits, a backdoor Roth contribution may be an option. Pre-tax IRA balances can trigger partial taxation under the pro-rata rule.

2. Roth Conversions

Move money from a Traditional IRA or pre-tax retirement account into a Roth IRA. Taxes are paid now, but future growth and withdrawals are tax-free. Year-end is ideal if your income is lower, you experienced job changes, or you want to reduce taxes for heirs.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IR A.

3. Required Minimum Distributions (RMDs)

If you are 73 or older, you must take RMDs from most retirement accounts, including Traditional IRAs and 401(k)s. Failing to take an RMD in 2025 results in a 25% excise tax.

RMDs are calculated using your prior year-end balance, age, and IRS Life Expectancy Factor. Inherited IRAs also require RMDs, which can be complex—consult an advisor.

4. Tax-Loss Harvesting

Selling investments at a loss in taxable accounts can offset gains and reduce taxable income, with up to $3,000 deductible against ordinary income. Current clients: We routinely implement tax-loss harvesting at year-end.

Tax-loss harvesting is a strategy of selling securities at a loss to offset a capital gains tax liability. It is typically used to limit the recognition of short-term capital gains, which are normally taxed at higher federal income tax rates than long-term capital gains, though it is also used for long-term capital gains.

5. Charitable Giving, QCDs & DAFs

Donations made by December 31 may be deductible if you itemize. If you’re 70½+, a Qualified Charitable Distribution (QCD) can satisfy all or part of an RMD and reduce taxable income.

A Donor-Advised Fund (DAF) allows contributions this year with an immediate tax deduction, while you recommend grants over time. Funds grow in the account, offering flexibility for strategic giving.

With thoughtful planning, year-end is a chance to reduce taxes, meet retirement obligations, and start 2026 financially prepared. We are available to answer any questions. Happy holidays from all of us at Boyce & Associates Wealth Consulting!

Charts & Chat - November 23, 2025

Mon, 24 Nov 2025 16:31:45 GMT

This week, CEO Eric Boyce, CFA discusses:

1. sales growth heading into holiday shopping season; economic indicators looking at +4% annual economic growth coming out of the 3rd quarter

2. factory orders positive but not "strong"; labor market weakness outside of leisure, hospitality, education and healthcare

3. new home prices now below existing home prices due to inventory shortages, high % of mortgages still below 4%, builder incentives

4. financial conditions "looser"; Philly Fed/Kansas City Fed report softer new orders, but perhaps some optimism on the margin

5. delinquency rates picking up in commercial office, as vacancies continue to rise

6. consumer credit indicators holding somewhat steady, except for credit card delinquencies

7. market correction underway in tech stocks; overall volatility is back on the table (especially for many of the Mag 7 and bitcoin)

8. consumer discretionary outperforming staples; equal weighted S&P 500 at a historic lag to capitalization weights

9. cattle, cotton, cocoa prices in decline. offset by corn, soybeans

Understanding 5 Investment Styles and How To Determine What Fits You

Fri, 21 Nov 2025 17:39:22 GMT

In investment management , your style helps shape the overall strategy used to reach your financial goals, whether you're managing your own portfolio or working with an advisor.

Knowing your investment style helps you choose strategies that match your needs and avoid decisions that don’t support your goals. It also makes it easier to stay consistent, especially when the market changes.

In this blog, we’ll explain five common investment styles, such as active vs. passive and growth vs. value, and show how each one works. The goal is to help you make clearer choices and craft a plan for the life you want .

What Is an Investment Style?

An investment style is the approach you use to build and manage your portfolio. It reflects how much risk you’re willing to take, what your financial goals are, and how actively you want to be involved in managing your investments.

Just like people have different personalities, investors take different approaches. Some remain actively involved, adjusting their portfolios in line with market trends. Others prefer a long-term strategy that requires less day-to-day attention. Some focus on fast-growing companies, while others choose more stable, income-producing investments.

Your investment style should reflect your goals, risk tolerance, and time horizon. There’s no single right answer, and that’s why understanding your style matters. It brings structure to your investment management decisions and helps you stay consistent over time.

The 3 Major Types of Investment Styles

Most approaches fall into three main investment style categories. These are not one-size-fits-all, but they help you understand how different strategies work.

1. Portfolio Management Approach: Active vs. Passive

This style is about how involved you (or someone else) are in managing your investments.

Active management means a person, usually a professional, regularly makes decisions about what to buy or sell. The goal here is to “beat the market” by choosing investments they believe will outperform the market. It’s more hands-on, but it also tends to come with higher fees and more frequent changes in your portfolio.

Passive management , on the other hand, is a “set it and stay the course” approach. You typically invest in funds that aim to match the overall market's performance, such as index funds. This strategy is usually lower cost and requires less ongoing decision-making. It’s more about steady, long-term growth than reacting to short-term market shifts.

2. Stock Selection Strategy: Growth vs. Value

This style depends on the kind of companies you choose to invest in.

Growth investing focuses on companies expected to expand quickly, such as newer or innovative businesses that reinvest profits to fuel future growth. These investments can offer strong returns over time, but they are also more unpredictable.

Value investing takes a different approach. It looks for well-established companies trading below their true value. These are usually stable businesses with solid track records. Value investors are looking for long-term reliability over fast gains.

3. Market Capitalization Focus: Small Cap vs. Large Cap

This style focuses on the size of the companies in your portfolio, specifically, their market value.

Small-cap investing involves buying shares of smaller, younger companies. These businesses often have more room to grow, which means they can offer higher potential returns, but with more risk and more price swings.

Large-cap investing focuses on bigger, more established companies, the kind you’ve likely heard of before. These companies usually offer more stability and tend to perform more consistently, especially in uncertain markets. While they may not grow as quickly, many investors view them as more reliable.

Two Bonus Styles: Income and Contrarian Investing

In addition to the main investment styles, some approaches take a different angle. They don’t always aim for fast growth. Instead, they focus on steady returns or a different view of the market. Let’s look at two styles that offer useful alternatives depending on your goals and mindset.

4. Income-Focused Investing

Income-focused investors build portfolios that generate regular cash flow. They invest in assets that pay out along the way, such as dividend-paying stocks, bonds, or real estate investments.

Rather than relying on selling investments for a profit, this style emphasizes collecting income over time. Investors who want stability, especially in retirement or during periods of market uncertainty, often choose this approach. It offers a more predictable experience and can support other income sources.

5. Contrarian or Tactical Investing

Contrarian investors take a different view of the market. They look for opportunities where others see trouble and avoid jumping into trends that attract a lot of attention. When most people sell, they consider buying. When the market gets excited, they stay cautious.

This investment style requires a long-term outlook and confidence in independent thinking. Tactical investors also adjust their strategy based on market conditions or economic changes . They don’t just follow a fixed plan; they make thoughtful moves based on what they see happening.

Comparing Investment Styles: Aggressive vs. Conservative

Every investment management type sits somewhere on a spectrum from aggressive to conservative. Understanding where your preferences fall on that spectrum can help you make decisions that feel more natural and better suited to your long-term goals.

An aggressive investment style focuses on growth. Investors in this category usually take on more risk in hopes of earning higher returns. They may invest in smaller or fast-growing companies, emerging industries, or market sectors that rise and fall quickly. This style often works best for people with a longer timeline, who can handle more ups and downs, and who are confident that values may drop before they rise.

A conservative investment style , on the other hand, focuses on preserving what you have. Investors with this mindset often prioritize safety and stability over growth. They tend to choose more established companies, income-generating investments like bonds or dividend stocks, and aim for steady, reliable returns. This approach suits those who want to avoid large swings in value or who are closer to retirement and need more predictability.

How to Identify Which Style Fits You

The best place to start is by asking yourself a few practical questions.

1. What’s your goal?

Are you trying to grow your wealth over the long term, generate income, or simply preserve what you’ve already built? Your goal plays a significant role in how aggressive or conservative your investments should be.

2. How confident are you with risk?

If market ups and downs make you uneasy, a more conservative style may feel more appropriate. If you’re okay with short-term swings in value for the chance of higher returns, an aggressive or growth-focused style might make sense.

3. How involved do you want to be?

Some investors prefer to stay hands-on and make decisions regularly. Others would rather set a strategy and let it run in the background. Knowing how much time and energy you want to invest can help narrow down your style.

4. What’s your timeline?

Someone investing for retirement 20 years from now can take on more risk than someone who needs to start drawing income in the next few years. Your timeline should guide how much risk your portfolio can reasonably take.

5. Do you want help or prefer to go solo?

Some investment styles work well with the support of a financial advisor, especially for active or tactical strategies. Others, like passive or income-focused investing, are easier to manage independently with the right tools.

There’s no perfect formula, but thinking through these questions can point you in the right direction. The right investment style is the one that fits you, not just your portfolio.

Closing Thoughts: Start With Your Goals, Then Match the Style

There’s no universal investment style that works for everyone, and that’s a good thing. What works for one investor might feel completely off track for another.

Maybe you’re someone who prefers a steady path and minimal volatility. Or perhaps you’re in a stage of life where you’re willing to take on more risk for the chance of greater returns. No matter where you are, your investment style should reflect your priorities, not someone else’s.

If you're unsure where to begin, start by answering the practical questions we outlined earlier. From there, it becomes easier to find investment options, including mutual funds, that align with how you want to grow and manage your money. A clear investment style doesn’t guarantee a specific result, but it does give you a framework you can stick with through market changes, life changes, and everything in between.

Frequently Asked Questions About Investment Styles

What are the 4 C’s of investing?

The 4 C’s of investing: Clarity, Control, Cost, and Consistency are guiding principles that help you make sound financial decisions:

Clarity: Know your goals and the role each investment plays in achieving them.
Control: Understand what you can and can’t influence, like market movement versus your risk tolerance.
Cost: Keep an eye on fees, taxes, and how they affect your overall returns.
Consistency: Stick with your strategy, especially during market ups and downs.

These Cs remind investors to stay intentional and disciplined over time.

What is the 7 5 3 1 rule?

The 7-5-3-1 rule is a general guideline for expected long-term returns across different asset classes:

7% for stocks
5% for bonds
3% for real estate
1% for cash or savings

These numbers aren’t guaranteed, but they offer a rough comparison to help investors understand how risk and reward can differ by asset type.

What is the rule of 8 in investing?

The Rule of 8 isn’t a standard investing principle, but in some contexts, it refers to the idea that you need to earn about 8% annual return to potentially double your investment every 9 years, based on the Rule of 72 (72 ÷ 8 = 9 years). It's often used as a simple way to estimate compound growth over time.

What is the safest investment with the highest return?

There’s no single investment that offers both the highest return and the lowest risk. In general, safer investments, such as high-yield savings accounts, U.S. Treasury bonds, or certificates of deposit (CDs), offer greater stability but lower returns. If safety is your priority, these options can help preserve your capital, but they won’t grow it as fast as riskier investments like stocks.

Ready to Talk About What Fits You Best?

At Boyce & Associates Wealth Consulting , smart investing starts with self-awareness. If you're unsure which investment style fits your situation, we're here to walk you through your options, explain the trade-offs, and help you make informed decisions with confidence.

Let’s have a conversation about your goals and the investment approach that best fits you.

Schedule a consultation

Blog Disclosure

Tax/Legal Disclosure

Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

Charts & Chat - November 16, 2025

Mon, 17 Nov 2025 15:13:57 GMT

This week, CEO Eric Boyce, CFA discusses:

1. small business and corporate sentiment appears favorable; capital spending trends and expected pricing power looking better

2. some stress in the credit markets, especially student loans; bankruptcies higher

3. evidence of K-shaped economy - healthcare premiums, groceries, lower wage growth

4. global and US valuations are indeed stretched, although this is not your father's S&P 500 - concentration of technology makes some historical comparisons difficult. Most consecutive days of the S&P 500 trading above its 50 day moving average since 2008

5. stocks fueled by liquidity, better than expected earnings performance and higher sustained profit margins

6. volatility still relatively low, but risk of increased volatility is prevalent

7. growth stocks outperforming value, large outperforming small; international returns expected be higher than US looking out 10 years, per Goldman

College Planning: 5 Smart Ways to Save Money for Your Child's College Education

Fri, 14 Nov 2025 17:04:09 GMT

College planning is a long-term financial strategy that helps families prepare for one of the most significant and steadily rising expenses in education.

According to the College Board , for the 2025-2026 academic year, the average published tuition and fees are $11,950 for in-state students at public four-year universities, $31,880 for out-of-state students, and $45,000 at private nonprofit institutions. Room, board, and other costs can bring the total annual expense at some schools to over $60,000.

Starting early, even with modest contributions, can create long-term financial advantages. In this guide, we'll explore five practical ways families can begin saving effectively for college.

How Parents Can Start Saving Smarter for College

Financial planning for your child’s education starts with a strategy that aligns with your family’s goals and budget. Here are five of the most practical and accessible ways to begin building a college fund with clarity and purpose.

1. Open a 529 College Savings Plan Early

A 529 plan is one of the most popular and straightforward ways to save for college . It's a state-sponsored account designed explicitly for education expenses, such as tuition, books, and room and board.

What makes it useful? The money you invest in a 529 plan grows tax-free, and if you use it for qualified education costs, you won't pay taxes when you withdraw it either. Many states also offer tax benefits for contributions.

You can start with small amounts, say, $50 or $100 a month, and adjust as your income grows. Over 18 years, even modest contributions can make a meaningful dent in future college costs. Plus, some plans allow relatives to contribute, which can be an excellent option for grandparents or family members who want to help.

2. Explore Roth IRAs for Dual Retirement & College Planning

Although most people use Roth IRAs for retirement, parents can also use them as a backup for college savings. They can withdraw the amount they’ve contributed (not the investment earnings) at any time without penalties or taxes, even if they put it toward college expenses.

This method gives you flexibility. If your child does not attend college or earn scholarships, the money stays in your retirement account. That way, you are not limited to using funds only for education.

Just be mindful of the annual contribution limits and income restrictions. For many families, a Roth IRA offers a way to save without having to choose between their child's future and their own.

3. Consider Custodial Accounts with Flexibility in Mind

Custodial accounts, often called UGMA or UTMA accounts, are investment accounts you open in your child's name. You manage the funds until they reach adulthood, usually 18 or 21, depending on your state.

The benefit is you're not limited to education expenses . You can use the money for anything that benefits your child, like summer programs, a first car, or college.

However, there are a few things to consider. Once your child becomes the legal owner, they gain full control of the money. Also, since these accounts are considered the student's assets, they may affect eligibility for financial aid more than parent-owned accounts, such as a 529.

If you want flexibility and are okay with giving up control when your child reaches adulthood, this could be a strong addition to your savings mix.

4. Use High-Yield Vehicles for Short-Term Goals

If your child is already in middle or high school, a high-yield savings account or a certificate of deposit (CD) can be a safer place to park your money in the short term. These accounts earn more interest than traditional savings accounts while keeping your cash accessible.

High-yield savings accounts are ideal for families who want to grow their funds with minimal risk. CDs, on the other hand, offer fixed returns if you're comfortable locking in your money for a set period.

These tools lack tax advantages like a 529 plan, but they are reliable for short-term savings, such as a child's first semester or a housing deposit.

5. Supplement Savings with Creative Funding

Not all college savings have to come from your wallet. There are several ways to add to your child's education fund creatively:

Scholarships and grants: Start researching early, even in middle school. Many scholarships are available based on interests, community involvement, or background.
Gifts from family: Birthdays and holidays can be opportunities for relatives to contribute to a college fund rather than give toys or clothes.
Cash value life insurance: For high-income families, a permanent life insurance policy can build tax-deferred cash value over time. Parents can sometimes borrow against these funds to help pay for education.
Reward programs: Some credit card programs let you direct cash-back rewards into a 529 plan. It won't replace traditional savings, but it can help.

Combining traditional savings with outside resources gives you more flexibility and opens the door to opportunities you might not have considered.

Correct College Planning Timeline for Students

Every family's financial journey is different, but understanding key facts about college education can help you create a realistic and effective timeline. By aligning your savings strategy with your child’s age, you can break the planning process into manageable steps.

Here's a simple breakdown of what to focus on at each stage.

Birth–5: Lay the Foundation

Start saving during this early window, even if it’s just a small monthly amount. When you begin sooner, you give your money more time to grow.

Open a 529 plan or Roth IRA for long-term growth.
Automate monthly contributions, no matter how modest.
Consider asking family members to contribute for birthdays or holidays.
Set a savings goal, but keep it flexible. Life changes, and so will your finances.

This stage is about building habits and putting a plan in motion, not perfection.

Elementary Years: Stay Consistent

By now, you've hopefully established some consistency in your contributions. Take this time to review your savings plan and make adjustments if needed.

Increase contributions when your budget allows, such as after daycare ends.
Revisit your college savings accounts annually to ensure they match your goals.
Consider using windfalls, such as tax refunds or bonuses, to boost your fund.

At this stage, consistency matters more than how much you're saving. Small steps really do add up.

Middle School: Start Having Conversations

With high school around the corner, now is the time to start talking more openly with your child about college. What are their interests? Are they considering a 4-year university, a community college, or something else?

Use net price calculators to estimate future college costs.
Help your child explore their academic and extracurricular strengths—they may lead to scholarships later.
If you haven't already, research the basics of financial aid, such as FAFSA and the CSS Profile.

You're not just saving anymore, you're starting to plan.

High School: Make It Real

At this stage, you start making active decisions about college. You have clearer costs, the application season is approaching, and deadlines begin to carry more weight.

Narrow down college choices and compare estimated costs.
Complete the FAFSA and any school-specific financial aid forms.
Apply for scholarships early and often.
Rebalance your savings strategy: consider shifting to lower-risk accounts if college is 1–2 years away.

You’ve reached the final stretch. When you plan now, you give your child more confidence to choose without being limited solely by cost.

College Planning Financial Checklist

Whether you're just starting or fine-tuning your plan, this checklist can help you stay on track. Think of it as your go-to list for building a strong college funding strategy.

✅ Estimate how much college could cost based on your child's goals

✅ Choose the right savings vehicle (529 plan, Roth IRA, etc.)

✅ Automate monthly contributions

✅ Review and adjust your savings plan yearly

✅ Talk to your child about college and money early

✅ Research scholarship opportunities well before senior year

✅ Learn how financial aid works (FAFSA, CSS Profile, etc.)

✅ Balance saving for college with your retirement planning

✅ Involve trusted financial professionals when needed

No plan is perfect, but having a clear structure makes it easier to adapt as your needs evolve.

Frequently Asked Questions About College Planning

Are college planning services worth it?

College planning services can be helpful if you're unsure where to start, want guidance through financial aid forms, or need help comparing schools and costs. A professional can offer personalized advice, help you avoid mistakes, and save time. However, many families manage the process on their own with the right resources and a clear plan. It depends on your comfort level and the complexity of your situation.

How to start planning for college?

Start by estimating how much college might cost, then choose a savings method that fits your budget, such as a 529 plan or a Roth IRA. Automate your savings early, and review your plan each year. Talk to your child about their interests and potential education paths as they grow. Early action, even in small steps, makes the process much more manageable.

What is the college planning process?

The process typically includes:

Setting a savings goal based on future costs
Choosing a savings vehicle (529, custodial account, etc.)
Tracking progress and adjusting contributions
Researching colleges and financial aid options
Completing applications, scholarships, and forms (FAFSA, CSS)
It's a gradual process that evolves as your child gets older.

How much should a college student make per month?

There's no fixed number, but many college students working part-time earn $500–$1,000 per month, depending on their job and hours. The goal isn't just income, it's gaining experience while covering small expenses. Students should avoid working so much that it affects their studies or well-being.

What is the hardest year of college?

It varies by student, but many say the first year is the hardest. It's a big adjustment: academically, socially, and emotionally. Students are learning to manage time, stay organized, and live more independently. Support from family and setting realistic expectations can make a big difference.

College Planning Starts with the Right Timeline

Every family's journey is different, but the earlier you start, the more options you create for your child and for your own financial stability. Whether you're saving $50 a month or simply researching schools together, small actions today can manage pressure down the road.

If you'd like help building a personalized plan or exploring which options best fit your goals, contact our team at Boyce & Associates Wealth Consulting. We're here to support families in making clear, confident decisions about college and beyond.

Blog Disclosure

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

Tax/Legal Disclosure

Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

529 Disclosure

A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. Every state offers at least one 529 plan. Before buying a 529 plan, you should inquire about the particular plan and its fees and expenses. You should also consider that certain states offer tax benefits and fee savings to in-state residents. Whether a state tax deduction and/or application fee savings are available depends on your state of residence. For tax advice, consult your tax professional. Non-qualifying distribution earnings prior to 2024 are taxable and subject to a 10% tax penalty. Beginning in 2024, unused 529 plan funds may be rolled into a Roth IRA assuming the following conditions are met: 1) must have owned the 529 plan for 15 years, 2) can only convert funds that have been in the 529 plan for at least 5 years, 3) rollover amount cannot exceed $35,000 and 4) rollovers must be made to a beneficiaries Roth IRA.

Charts & Chat - November 9, 2025

Mon, 10 Nov 2025 16:52:23 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Record length of government shutdown; estimated economic impact $10-30B per week

2. stock valuations bifurcated between Mag 7 and rest of market; profit margins remain elevated despite tariffs; earnings beats during latest quarter remain well above average.

3. high level of short term treasury bills increases supply & keeps interest rates likely higher than would otherwise be the case

4. relative size of US markets to the world dramatically higher than the global financial crisis

5. credit quality ok; delinquencies manageable (except for student loans) and may have reached an interim peak

6. labor market weakness, but not a large problem; other economic indicators not unfavorable

7. holiday sales forecast calls for 4% growth; median age for first time homebuyer is 40 years

Charts & Chat - November 2, 2025

Mon, 03 Nov 2025 14:06:30 GMT

This week, CEO Eric Boyce, CFA discusses:

1. the K-shaped sentiment indicator represents the difference between how the higher income populations view the economy versus the lower income levels.

2. inflation sticky, compounding Fed decisions. Future inflation expectations elevated

3. tariff rate ~15%, some increase in small business price increase expectations

4. profit margins expanding for Mag 7; flat to contracting for everyone else in S&P 500

5. increased breadth of market performance relative to 2023/24, but lower versus historical averages

6. delinquencies and defaults are higher, but may have peaked...(?)

7. banking system in good shape from a capital and loss coverage ratio perspective

8. perspectives on the use of alternative investments in a portfolio depending on age and net worth

9. GDP relative to stock prices going back to 1800;

10.gold as a hedge against uncertainty, increased central bank (and China) purchases of gold versus US treasuries

Should You Have an Annuity?

Sat, 01 Nov 2025 11:00:05 GMT

In today’s unpredictable markets, many investors want to protect what they’ve worked hard for—without missing out on growth. That’s where an annuity can help.

When thoughtfully included as part of your overall financial plan, annuities can bring stability, guaranteed income, and long-term peace of mind.

What Is an Annuity?

An annuity is a contract with an insurance company designed to help you grow and protect your money. You can use it to build savings over time or to create a steady income stream in retirement.

It’s not a one-size-fits-all product—there are different types designed for different goals. Here is an overview of them:

Fixed & Indexed Annuities: Focused on Safety

These options protect your principal and provide predictable growth.

Fixed annuities pay a guaranteed interest rate for a set period.
Fixed Indexed annuities link potential growth to a market index (like the S&P 500) but still protect your original investment from market losses.

They’re ideal for investors who value stability and protection over chasing market highs.

Fixed Annuities are long term insurance contracts and there is a surrender charge imposed generally during the first 5 to 7 years that you own the annuity contract. Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. Any guarantees offered are backed by the financial strength of the insurance company. Surrender charges apply if not held to the end of the term. Withdrawals are taxed as ordinary income and, if taken prior to 59 ½, a 10% federal tax penalty.

Variable Annuities: Growth with Optional Protection

Variable annuities keep your money invested in the market through subaccounts, offering greater growth potential—but also more risk.

You can customize them with optional riders (add-on benefits) for:

Lifetime income (a steady paycheck for life)
Enhanced death benefits for your loved ones
Long-term care or income protection options

These can be powerful tools for people who want market participation with a safety net .

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.

Why Do People Choose Annuities?

Income you can’t outlive (this is for FA’s and FIA’s not Variable)
Tax-deferred growth on your earnings
Protection from market downturns (depending on type)
Customization for your goals and time horizon

However, annuities come with fees and rules around withdrawals—so it’s important to understand the details before you invest.

Our Approach at Boyce & Associates

We believe every annuity should have a clear purpose in your financial plan —never as a “catch-all” product.

That’s why we partner with dozens of top-rated carriers , not just one, to find the best solution for your specific needs.

If you already own an annuity, it’s worth reviewing. Newer products often include better benefits and lower costs , and a professional review ensures your annuity still aligns with your goals.

Only a portion of your retirement savings should be used to purchase an annuity. You want most of your money growing inside your brokerage accounts. This is why we always demonstrate how this looks in your financial plan.

The Bottom Line

Annuities can offer balance, predictability, and lifetime income , but they’re most effective when used intentionally.

Knowing what you own and why you own it can make all the difference. You want to design these so you can access your income at the right time.

If you’d like to explore how an annuity might strengthen your retirement plan—or review one you already have— our team is here to help you make confident, informed decisions.

November 2025 Outlook: Inflation Pops, Seasonal Tailwinds

Thu, 23 Oct 2025 17:36:13 GMT

Dear Clients and Friends,

As we close out October 2025, the global economic landscape continues to exhibit a mix of resilience and uncertainty. Amid moderating inflation and robust corporate earnings in key sectors, markets have shown strength, though volatility persists due to geopolitical tensions and shifting monetary policies. This letter reviews the current financial, economic, and investment backdrop, supported by recent data, while highlighting both risks and opportunities. The outlook for November may include heightened activity around policy decisions and seasonal market dynamics.

Economic Backdrop

The U.S. economy has demonstrated volatility throughout 2025, with real GDP experiencing a modest contraction in the first quarter followed by catch-up growth in the second. The Conference Board anticipates U.S. GDP growth to slow to 1.6% for the full year, down from 2.8% in 2024, reflecting broader concerns over consumer spending and investment. Inflation, as measured by the Consumer Price Index (CPI), most recently accelerated to an annual rate of 2.9%—the fastest pace since January, driven by persistent pressures in housing and services. Unemployment ticked up to 4.3%, with nonfarm payrolls adding only 22,000 jobs in the latest report, signaling a cooling labor market.

Globally, the International Monetary Fund (IMF) projects growth to ease from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026, influenced by advanced economies’ slowdowns and emerging market challenges. Emerging markets (EM) growth is forecasted to decelerate to a 2.4% annualized rate in the second half of 2025, amid geopolitical tensions and rising protectionism. Per Price WaterhouseCoopers (PwC), global GDP stabilized at 2.8% in 2024 but is expected to dip to 2.6% in 2025 due to similar factors. Notably, business investment in information processing equipment contributed 46% to U.S. GDP growth in the first half of the year, underscoring the role of technology during our current expansion.

Financial and Investment Markets

October marked a positive month for equities, with the S&P 500 rising 3.6%; however, the Nasdaq Composite faced headwinds, dropping 3.6% on October 13 amid weakness in major technology stocks. Overall, markets benefited from easing interest rates, AI-driven growth, and resilient earnings, with S&P 500 net margins holding steady at 12.3% in the second quarter of 2025—above the five-year average. Historically, October has been favorable for U.S. stocks, averaging a 1.4% return for the S&P 500.

Fixed income markets remain volatile, with bond yields and credit spreads fluctuating amid economic shifts. Commodities and currencies have also seen movement, with U.S. equities

gaining on strong third quarter earnings thus far while Chinese markets declined. In alternative assets, digital currencies like Bitcoin continue to exhibit sharp fluctuations tied to speculation and policy changes, contrasting with traditional markets’ more measured responses.

Key Risks

While the backdrop is, for the most part, supportive, several risks warrant caution. Geopolitical tensions, including ongoing conflicts and especially trade uncertainties, continue to drive market volatility and could exacerbate supply chain disruptions. Inflation’s resurgence to 2.9% poses a threat, potentially prompting central banks to pause rate cuts and leading to higher borrowing costs. The World Economic Forum’s Global Risks Report highlights evolving threats like cybersecurity vulnerabilities and system-level risks in investment practices. In emerging markets, concerns over data availability and governance could deter inflows, with EM risk premiums compressed amid lingering inflation pressures. Domestically, a slowing labor market and potential recession signals—despite no current forecast—add to downside pressures. Political risks, such as policy shifts in swing states or international relations, may introduce further uncertainty.

Opportunities Ahead

On the opportunity side, the broadening market rally presents avenues for diversification. AI and technology sectors remain strong, with high-growth tech stocks in the U.S. navigating volatility effectively. Housing shortages in the U.S. create compelling investments in real estate, while the AI-driven energy bottleneck signals unprecedented demand in infrastructure and renewables. In addition, emerging markets are entering what could be a dynamic growth phase.

Rethinking diversification—moving beyond traditional bonds and stocks to structured investments and alternatives like digital assets—could enhance returns amid evolving risks. Fixed income offers navigation potential in volatile yields.

Outlook for November 2025

Looking to November, we anticipate continued sideways trading in equities as investors balance bargain-hunting with economic and political leads. Key events include potential U.S. CPI data releases, which could show inflation rising further, which may influence Fed decisions. EM central banks may continue rate cuts, supporting growth, while global forums like the OECD Economic Outlook will provide fresh projections. Seasonally, November often enters a bullish phase for stocks, but uncertainties around year-end policies and holidays could amplify swings. We recommend maintaining diversified portfolios, focusing on resilient sectors like AI and energy, while monitoring inflation and geopolitics closely.

Our team remains committed to guiding your portfolios through this environment. Please feel free to schedule a review of your portfolio or discuss any questions you may have. Thank you for your continued trust and confidence.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — November 2025

10 Key Steps to Successfully Create a Business Exit Strategy

Fri, 17 Oct 2025 20:11:57 GMT

Most business owners wait to plan their exit until they must. But with nearly 73% of privately held businesses in the U.S. planning to transition ownership within the next decade, the need to prepare has never been more urgent.

An exit strategy guides you through a smooth transition of ownership or leadership. Whether you plan to step back in years or have just started thinking about life after business, a clear exit strategy does more than prepare you for the future; it also strengthens your business today.

This guide shows you 10 direct steps to structure a flexible exit plan so you can move forward with clarity and confidence, no matter your timeline.

What Is a Business Exit Strategy?

A business exit strategy is a defined plan for how you, as the owner, will depart your business on your preferred terms. It specifies who will take control, how the transition will be managed, and what you aim to obtain, whether that’s financial stability, an ongoing legacy, or a complete separation.

The main purpose of exit planning is to preserve the value you’ve built. It is not exclusive to large corporations or owners nearing retirement. It is equally essential for:

Small business owners preparing for the next chapter
Entrepreneurs hoping to sell or scale
Startup founders looking for investor-backed exits or acquisitions.

Regardless of whether you own a small business, lead a startup, or run a large company, an exit strategy gives you greater control over your business’s future and positions you to maximize opportunities and value.

How to Write a Business Exit Strategy

Writing a business exit strategy means putting together a clear, actionable plan for how you’ll step away from your business. It’s not just a document you create when you’re ready to leave. It’s a strategic part of running a business with a long-term vision.

A strong exit strategy answers three key questions:

When do you want to exit?
Who will take over or buy the business?
How will you transfer ownership and extract value?

Start by identifying your personal and financial goals. Do you want to retire completely, stay involved in a smaller role, pass the business to family, or sell to a partner or outside buyer? Your answers shape the rest.

Next, assess your business’s readiness. Review your financials, operations, leadership, and legal structure. Identify what must improve to attract a future buyer or successor.

From there, you’ll define your exit path: sale, succession, merger, or other options, and build a timeline that includes key milestones. Most well-prepared owners begin this process 2 to 5 years before they plan to exit , giving them time to strengthen value and avoid rushing critical decisions.

If you’re not sure where to begin or how to structure your plan, business exit consulting can help you navigate the process.

You don’t need all the answers right now. Start documenting what you know and take concrete steps to prepare today; these actions will make a major difference when the time comes.

Step-by-Step Guide to Building Your Exit Plan

Think exit strategy as building a roadmap: each step gives you more direction, clarity, and control over how your business journey ends (or grows).

Whether you plan to exit in two years or ten, these ten steps will help you prepare with intention.

Step 1: Define Your Personal and Business Objectives

Before you decide how to exit your business, you need to get clear on why you're exiting and what you want to get out of it.

Start by asking yourself a few straightforward but important questions:

Do I want to retire fully or stay involved in some capacity?
Am I looking for the highest financial return, or is preserving my legacy more important?
Do I want to pass the business to someone I know or sell to someone I don’t?

Identify your personal goals, then set business actions that align with them. For example, if you plan to retire in five years with a set income, define specific growth steps now and target future buyers who fit those objectives.

Define what a “successful exit” means for your business by identifying concrete outcomes such as keeping your team employed, maintaining the company’s reputation, or ensuring your business continues to serve the community. Write down your vision so you have a clear plan to follow.

Step 2: Understand the Types of Business Exit Strategy Options

Once you know your exit goals, choose the best way to achieve them. There are six common exit strategies, each with pros and cons.

Sale to a Third Party

Selling your business to an outside buyer, such as a competitor, investor, or strategic partner, is a common way to exit.

Best for: Owners ready to step away and cash out.
Consider: Prepare for due diligence, negotiation, and post-sale changes.

Family Succession

Giving your business to a child or another family member is a popular choice for owners who want to keep the company in the family.

Best for: Owners with a trusted, capable successor in the family.
Consider: Be honest about their readiness and your willingness to step back.

Management Buyout (MBO)

A management buyout is the sale of a business to its current leadership team. Since they already know the operations, customers, and company culture, the transition can be smoother.

Best for: Owners who want continuity and trust their internal team
Consider: MBOs may require financing or staged payments to make the deal possible

Merger or Acquisition

A merger or acquisition (M&A) combines firms to gain market share or achieve growth. These deals can be lucrative but complex.

Best for: Businesses with strategic value to competitors or complementary firms
Consider: M&As require alignment in goals, leadership, and often, integration plans

IPO (for Scalable Startups)

An IPO is a major exit for fast-growing startups. It brings capital and visibility, but requires resources and regulation.

Best for: High-growth businesses with strong revenue and demand.
Consider: IPOs are rare for small firms and need prep.

Liquidation (as a Last Resort)

Liquidation closes the business and sells assets. It typically yields less than other exits but may be necessary if there are no buyers.

Best for: Businesses with limited market demand or unsustainable operations
Consider: It’s often a fallback, but can still be executed thoughtfully

Step 3: Assess the Value of Your Business

Before you exit, get a formal business valuation, not just an estimate in your head that reflects true market value.

Start by looking at key drivers of value:

Revenue and profit trends
Customer contracts or recurring income
Tangible and intangible assets (like brand, IP, or tech)
Industry outlook and competition
Your role in the business (the less the business depends on you, the better)

Getting a professional business valuation, whether from a certified appraiser or a business broker, gives you a clear, well-supported understanding of your company’s worth. It also helps you identify areas to improve before a sale, such as tightening margins or diversifying your customer base.

Even if you’re not selling soon, this step sets realistic expectations, justifies your asking price, and helps position your business for growth.

Pro tip: Don’t wait until you’re ready to sell. Getting your business valued every few years keeps you prepared and empowers you to seize growth opportunities when they arise.

Step 4: Get Your Financials in Order

Whoever you sell or transition to: family, employees, or outside buyers, will closely examine your financial records. Clean, organized financials make your business more attractive, understandable, and easier to finance.

Here’s what to focus on:

Ensure your P&L statements, balance sheets, and cash flow reports are accurate and up to date.
If you've mixed personal and business expenses, separate them clearly.
Identify outstanding debts, contracts, or liabilities, then contact relevant parties to resolve them promptly.
Scrutinize tax records for any inconsistencies or gaps right away.
Prepare a forward-looking financial forecast by projecting revenue and expenses based on historical trends.

If buyers lose faith in your numbers, the deal stalls or collapses. Sloppy records instantly slow the sale and set off due diligence alarms.

Work with your CPA or financial advisor to address any issues before they escalate. Your books don’t need to be perfect, but you must provide transparency and structure.

Step 5: Build a Strong Management Team

A business that runs smoothly without your direct involvement is far more valuable. Buyers and successors want a leadership team that can keep things moving even when you’re gone.

Identify key team members and assign greater responsibility. Train them, document your systems, and grant them decision-making authority.

If you plan to exit by management buyout or internal succession, prioritize this step. Do not just hand over the keys; equip your team to lead.

Tip: Use this step to formalize roles and set up incentives for top performers. Build a leadership pipeline. Boost your business value and make your exit more attractive to buyers.

Step 6: Evaluate Tax Implications and Legal Considerations

Exiting your business will have tax and legal consequences, whether you sell, transfer, or shut down. Understanding those implications early can help you avoid surprises and keep more of what you’ve earned.

Start by meeting a tax advisor who understands business exits. We can help you choose the most tax-efficient deal structure, whether that's an asset, stock, or installment sale.

Also, evaluate your legal structure. Ensure your business entity (LLC, S-corp, C-corp) aligns with your exit objectives. Review and update essential documents such as:

Buy-sell agreements
Operating agreements
Partnership contracts
Employment or non-compete agreements

Clean legal documentation earns buyers’ trust and streamlines due diligence.

Tip: Don’t wait until you have a buyer to involve professionals. The earlier your tax and legal advisors step in, the better they can help you plan and save.

Step 7: Plan for Succession (If Applicable)

If you plan to pass your business to family or internal stakeholders, you need a clear succession plan.

Start by identifying your successor. That might be a family member, a business partner, or a key employee. Once you’ve chosen that person (or group), talk openly about your expectations and timeline.

A strong succession plan does more than name a successor. It prepares them to lead by:

Transferring knowledge and responsibilities gradually
Giving them visibility with clients, vendors, and employees
Clearly outlining their future role

If legacy matters, make this step as vital as finances. An unprepared successor risks confusion and lost value.

Pro tip: Formalize your plan in writing, and revisit it annually as roles and circumstances change.

Step 8: Identify and Prepare Potential Buyers

Identifying the right type of buyer early can help you shape a better exit and increase your value.

Begin by describing your ideal buyer. Would you prefer to sell to:

A larger company seeking fast growth?
A private investor focused on strong returns?
An employee or partner committed to legacy?

Each buyer sees value differently. For example, a strategic buyer may prioritize your customer base, while a financial buyer focuses on cash flow and ROI. The sooner you know your target, the better you can prepare your business for them.

Take these steps to get your business ready:

Organize all financial statements and key contracts.
Document processes, systems, and team structures
Strengthen customer relationships and take measures to manage owner dependence.
Preserve intellectual property and promptly resolve any pending legal issues.

Engage a business broker or M&A advisor. Instruct them to identify potential buyers, conduct a market assessment, and help position your company for sale.

Step 9: Create a Timeline and Communication Plan

Define your exit with conviction. Establish a clear timeline and communication strategy. Avoid rushing, and use a well-planned approach to assure your team, partners, and buyers of your leadership.

Set a realistic timeframe. Exit preparation usually takes 1 to 3 years . Break this down into key phases:

Prepping your business (cleaning up financials, reducing risk)
Identifying buyers or successors
Negotiating and closing the deal
Transitioning leadership and operations

Create your communication plan alongside your timeline. Identify who must know, what to tell them, and when to tell them. Start with core advisors. Gradually inform key staff, customers, and partners. Communicate well to preserve morale, keep key employees, and reduce rumors or disruption.

Tip: Keep your message simple, consistent, and focused on continuity. Reassure everyone about what will and won’t change.

Step 10: Assemble Your Exit Team

You don't have to do this alone. Assemble a small, trusted team of professionals who know the process and preserve your interests.

Here are the key professionals you’ll likely need:

CPA or financial advisor – assess value, forecast outcomes, plan for taxes
Business attorney – draft contracts, structure deals, and manage legal risks.
Business broker or M&A advisor – find buyers, guide negotiations.
Wealth advisor – plan your personal next steps (retirement, reinvestment, etc.).
Internal team members – include your COO and key managers to ensure operational continuity.

Start building this team early. Meet with each member individually first, then bring them together as your plan takes shape. Encourage open communication and schedule meetings when needed so your CPA, attorney, and broker can regularly coordinate and align with you.

Common Mistakes to Avoid in Exit Planning

Even experienced business owners can misstep while planning their exit. Often, they wait too long, make assumptions, or underestimate the complexity. Here are some of the most common pitfalls:

1. Waiting too long to start planning

The most common mistake is also the most costly. Many owners delay exit planning until they’re tired, burned out, or forced to sell quickly. That limits your options and usually lowers your business’s value.

2. Relying too heavily on your role in the business

If the business can’t run without you, it’s hard to sell or pass on. Owners who stay too involved in daily operations make it harder for successors or buyers to see long-term stability.

3. Assuming family members will take over

Planning to hand the business to your kids or a relative? Make sure they’re willing, prepared, and aligned with your vision. Too many exits fail because of unspoken expectations or unqualified successors.

4. Not understanding tax and legal implications

Exiting your business affects your finances long after the deal closes. Some owners miss out on significant value or face large tax bills simply because they didn’t properly structure their exit.

5. Failing to define success

Not every exit is about maximizing price. For some owners, it’s about legacy, team continuity, or long-term brand reputation. If you don’t define what a successful exit looks like to you, it’s easy to chase the wrong outcome.

Conclusion: Leave on Your Own Terms

Exiting your business marks the end of one chapter and the beginning of another. And like any important decision, it’s always better to approach it with a plan than to react under pressure.

Whether you plan to retire, pursue a new venture, or simply step back from daily operations, a thoughtful exit strategy gives you control over the process.

You don’t need to have everything figured out today. But taking that first step can set the stage for a smooth, successful exit down the line.

Frequently Asked Questions About Business Exit Strategy

1. What are the three main exit strategies?

The three most common exit strategies for business owners are:

Selling to a third party – This could be a competitor, investor, or strategic buyer.
Passing the business to a family member preserves family legacy, while passing it to an i nternal (non-family) successor ensures experienced business stewardship and continuity.
Closing or liquidating the business – Chosen when alternatives aren’t feasible or the owner seeks a straightforward exit.

Each strategy has distinct effects on timing, taxes, and business continuity, so selecting the optimal approach depends on your objectives.

2. What are the four basic exit strategy possibilities?

Third-party sale – Sell the business to an outside buyer.
Internal transfer involves passing the business to family members, partners, or employees.
Merger or acquisition – Combine your business with another company.
Liquidation – Close the business and sell assets.

These strategies can be customized based on your situation, timeline, and priorities.

3. What is a 5-year strategy plan?

A 5-year strategy plan outlines your business objectives and how you'll achieve them over the next five years, including your exit. It often includes targets for revenue, staffing, operations, and succession planning.

If you're planning to exit within 5 years, this plan serves as your roadmap for increasing value, reducing risk, and preparing for a successful transition.

4. What is an acceptable exit strategy?

An acceptable exit strategy aligns with your personal goals, preserves your business’s value, and enables a smooth transition, whether that means selling, transferring, or closing the business.

The best strategy depends on your timeline, your business's health, and who you want to take over (if anyone). What's “acceptable” is what works best for you, your team, and your long-term plan.

Let’s Talk About Your Next Chapter

You’ve built something worth preserving. Now it’s time to plan what comes next with the same care and clarity that got you here.

Whether you’re exploring options or ready to start mapping your exit, we’re here to help you think through the big picture and make confident decisions along the way.

Contact Boyce & Associates Wealth Consulting

Tax/Legal Disclosure

Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.

Asset Allocation/Diversification

Neither Asset Allocation nor Diversification guarantees or protects against a loss in a declining market. They are methods used to help manage investment risk.

Blog Disclosure

Past performance is no guarantee of future results.

Charts & Chat - October 5, 2025

Tue, 07 Oct 2025 16:27:12 GMT

This week, CEO Eric Boyce, CFA discusses:

1. economic forecasts has consistently been wrong this year; however, Atlanta Fed GDP Now has been relatively accurate - predicting strong growth in 3Q 2025

2. financial conditions have improved, but so have inflation expectations. Fed has dual mandate, but weakening labor market is the primary focus right now

3. lower US dollar can help fuel inflation, Federal Reserve regional surveys show increase in prices paid

4. low credit spreads, capital spending plans higher, trade policy uncertainty moving lower - no signal of recession at this point

5. private equity and credit markets continue to expend in size and importance

Q4 Begins: Cooling Inflation, Fed Cuts on Deck

Wed, 01 Oct 2025 11:00:07 GMT

Dear Clients and Friends,

As we close out the third quarter of 2025, I hope this letter finds you well. It's been a period of significant developments within the markets and the broader economy, with a particular focus on evolving central bank policy and the nuances of economic data. In this letter, we'll review the key drivers behind recent market performance and share our perspective on what lies ahead.

The Economic Picture

The story of the month continued to be the delicate balance between a resilient, yet slowing, economy and the Federal Reserve's ongoing efforts to manage inflation. Recent reports showed a cooling in the labor market, with a slowdown in job creation and an increase in unemployment claims. This signals that the Fed's restrictive monetary policy is having its intended effect, but it has also raised concerns about the economy's future trajectory.

Meanwhile, inflation data remained a key focus. While headline inflation has been moving closer to the Fed's target, core inflation—which excludes volatile food and energy prices—has been more persistent. This has kept the Fed on alert and complicated their decision-making process. The market is now keenly anticipating a potential shift in policy, with many expecting additional rate cuts to be announced in the coming months.

Market Performance

The mixed economic signals created some volatility, but the overall trend for the major U.S. indices was positive for the month. The S&P 500 and Nasdaq both saw gains, with the technology and information sectors continuing to lead the way. This was largely driven by a combination of better-than-expected corporate earnings and the prospect of future interest rate cuts, which can be a tailwind for growth-oriented stocks.

On the other hand, the Dow Jones Industrial Average experienced more muted performance as investors rotated between different sectors. The bond market also saw notable movement, with Treasury yields generally easing as investors began to price in the expected rate cuts. This move indicates a potential shift in sentiment and a growing belief that the worst of the inflationary period is behind us.

Our Outlook and Portfolio Strategy

Looking ahead, we are maintaining a disciplined and watchful approach. We recognize that the market will likely remain sensitive to incoming economic data, particularly as the Fed navigates its next steps. Our strategy remains focused on identifying high-quality investments and sectors with strong fundamentals that can perform well across different economic environments.

We believe that the current environment may present opportunities in areas that have been undervalued and sectors that have lagged behind the recent rally. We will continue to diversify your portfolio to help mitigate risk and position you for long-term growth.

Here are a few other things to consider:

Review Your Asset Allocation: We will make sure your portfolio's allocation still aligns with your risk tolerance and financial goals. The recent rally in large-cap tech stocks might have made some portfolios more concentrated in that area.
Embrace Diversification: As noted, certain areas of the market have lagged behind this year. This presents an opportunity for us to rebalance your portfolio and invest in these undervalued segments to help mitigate risk and capture future growth.
Stay Focused on Quality: In times of uncertainty, it's always wise to focus on high-quality investments with strong fundamentals and competitive advantages that can perform well in various economic conditions.
Avoid Emotional Decisions: Short-term market volatility can be unsettling. We realize how important it is to avoid making reactive decisions based on daily headlines. Instead, we urge you to stick to your plan and remember that investing is a marathon, not a sprint.

Please feel free to schedule a review of your portfolio or discuss any questions you may have. Thank you for your continued trust and confidence.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — October 2025

How to Craft a Plan for the Life You Want

Wed, 01 Oct 2025 11:00:07 GMT

Life will always throw curveballs- it’s not a matter of if, but when. The question is, will you be prepared when financial storms come your way? Having a solid, secure financial plan is less about predicting the future and more about being ready for uncertainty and building a foundation that gives you confidence.

Building a Confident Financial Plan

A strong plan puts you in a position of strength. Preparation doesn’t stop the storm, but it helps you act with clarity instead of panic. Without one, people often find themselves dipping into savings, relying on credit, or feeling overwhelmed by stress. These are warning signs that your financial health may need attention and that you may be reacting instead of leading your financial life.

Similarly, preparation today ensures that no matter what happens- rising inflation, interest rate hikes, or even geopolitical shocks- you are not caught off guard. When you’ve already thought through possible scenarios, you can respond wisely instead of scrambling for quick fixes.

Steps to Get Started

1. Get Clarity on What You Want. Start by asking: Does my money reflect my priorities? Review your spending over the last three months without judgment. This exercise will reveal whether your dollars are working toward your goals or drifting elsewhere.

2. Define Your Goals. What do you truly want your life to look like? A confident plan aligns your finances with your dreams—whether that’s building wealth, securing retirement, funding education, or creating meaningful experiences with family. Hope is not a strategy; clear goals are.

3. Make Your Money Work for You. Once you know what matters most, position your money intentionally. That could mean saving systematically, investing for long-term growth, or using insurance to preserve what you’ve built and provide stability no matter what comes your way.

Take Action Now

Most people don’t fail because they made bad decisions—they fail because they made no decisions. Inaction comes at a cost, while small, purposeful steps build confidence and momentum over time.

Your financial future doesn’t have to feel uncertain. By crafting a plan now, you create security, resilience, and the ability to face life’s storms with strength, knowing you’ve taken intentional steps to protect your future.

Charts & Chat - September 28, 2025

Mon, 29 Sep 2025 16:42:34 GMT

This week, CEO Eric Boyce, CFA discusses:

1. near term trends in economic growth and employment are diverging. Labor weakness giving Fed cover to lower interest rates.

2. recession probability low, bank lending up, goods inflation growth year-over-year is now positive.

3. consumption and retail sales trends are not unfavorable, but record-high credit card balances are.

4. no sign of US dollar disintermediation - Euro as a percent of global reserves remains flat, and record high foreign investment in US stocks.

5. stock valuation higher - possible near term volatility. positive return outlook, however.

6. the diversification power of alternative investments within a portfolio.

What is the Main Goal of Investment Management

Thu, 25 Sep 2025 17:37:42 GMT

Investment management is the professional oversight of assets with the objective of meeting specific financial goals. It includes portfolio construction, risk management, and alignment with an individual’s financial plan . While portfolio growth is important, the primary purpose of investment management is to ensure that capital is allocated intentionally to support long-term financial confidence, rather than focusing on short-term market gains.

At Boyce & Associates Wealth Consulting , our philosophy centers on capital preservation and clear alignment with each client’s financial objectives. The sections below outline the definition, principles, and strategies that inform effective investment management, and clarify its primary goal.

Investment Wealth Management Definition

Investment wealth management is the process of managing a person’s financial assets that support their long-term goals. It involves making decisions about where to invest money, such as in stocks, bonds, or other assets, based on the client’s financial situation, risk tolerance, and objectives.

At its core, investment wealth management combines portfolio oversight with a broader financial plan. This involves building and managing an investment strategy while also considering factors such as retirement timelines, tax implications, income needs, and estate planning. The goal is for every investment to support the client’s overall financial picture.

Main Goal of Investment Management

The goal of investment management is to grow and preserve wealth that supports an individual’s financial objectives. It is not about chasing the highest returns or reacting to market trends. Instead, it focuses on intentional growth within a disciplined and risk-managed strategy.

At the center of this approach is principal protection , a priority for many individuals and families, especially retirees, business owners, and those with significant assets. Preserving the money you’ve already earned is often more important than trying to maximize gains.

Effective investment management is part of creating a plan for the life you want . For example, someone nearing retirement may need to generate income from their investments while also ensuring their savings last. Their portfolio would likely include a mix of conservative investments, structured withdrawals, and tax-aware planning, all aimed at supporting a stable lifestyle rather than chasing aggressive market gains.

Examples of Investment Goals Across Different Life Stages

Early Career : Building savings for future goals, such as buying a home or starting a family.
Mid-Life : Growing assets for retirement, funding children’s education, or investing in a business.
Pre-Retirement : Reducing investment risk, increasing cash flow, and preparing for healthcare costs.
Retirement : Generating reliable income, minimizing taxes, and preserving against outliving savings.
Legacy Planning : Preserving wealth for future generations, supporting charitable giving, and managing estate transfer.

Each of these goals requires a tailored investment approach that aligns with the client’s stage of life, priorities, and risk tolerance.

Why Do People Go Into Investment Management

Many people turn to investment managers when their financial situation becomes more complex or when they want help making informed, long-term decisions. Common reasons include:

Lack of time or expertise

Most individuals lack the time to research markets or manage risk independently. They want a professional to handle the details so they can focus on work, family, or personal priorities.

Need for tax-efficient strategies

As income and investments grow, so does the need to manage taxes. A thoughtful investment plan can help reduce tax impact and improve after-tax returns over time.

Increased financial complexity

Life events, such as retirement, divorce, inheritance, or selling a business, bring new financial challenges. Investment management provides structure and support during these transitions.

Outgrowing DIY investing

Many start by managing their own investments, but eventually seek expert guidance to preserve what they’ve built and ensure their portfolio aligns with long-term goals.

Professional investment management brings clarity and coordination, especially when wealth, responsibilities, or financial risks increase.

4 Principles That Guide Successful Investment Management

A successful investment management strategy is built on four core principles: Philosophy, Process, People, and Performance . These elements provide structure and consistency in managing wealth over time.

1. Philosophy

Investment philosophy is the guiding belief behind how money is managed. It reflects the approach taken toward risk, returns, market behavior, and decision-making. A well-defined philosophy helps ensure that investment choices are made consistently, even during periods of market uncertainty.

2. Process

Process refers to the step-by-step method used to design, implement, and monitor an investment strategy. This includes the selection of investments, the adjustment of portfolios over time, and the management of risks. A clear process supports disciplined decision-making and reduces the influence of emotion or short-term market noise.

3. People

Investment management involves human judgment and relationships. The “people” principle highlights the importance of experienced professionals who understand the financial landscape and the client’s personal goals. Trust and effective communication are essential to building a long-term, effective advisory relationship.

4. Performance

Performance measures how well an investment strategy meets its intended goals. It’s not just about returns, but about achieving outcomes in line with the client’s timeline, risk tolerance, and objectives. Long-term, goal-based performance is more meaningful than short-term market results.

What Makes a Strategy Effective? Investment Goals and Examples

An effective investment strategy should consider not only potential returns but also stability, flexibility, and alignment with personal objectives.

Investment goals often vary based on life stage and responsibilities. Below are examples of common goals and the types of strategies that can help support them:

Funding retirement by a certain age
A long-term, diversified portfolio focused on stable growth and income can help ensure that assets are available to support lifestyle needs in retirement.
Preserving wealth across generations
A strategy that includes tax planning, risk management , and estate coordination can help ensure assets are transferred efficiently and remain preserved.
Creating passive income streams
Investments such as dividend-paying stocks, bonds, or real estate can be used to generate regular income without depleting the principal.

Each of these goals requires a customized investment plan . There is no one-size-fits-all solution. A strategy is effective when it is realistic, carefully managed, and flexible enough to adjust to changing life circumstances.

Investment Strategies for Wealth Management

Below are four core strategies commonly employed in well-structured portfolios. Each strategy plays a distinct role in managing risk, enhancing returns, and keeping investments aligned with personal objectives.

Asset allocation

Asset allocation is the process of dividing investments among various asset categories, including stocks, bonds, and cash. The goal is to balance risk and return based on the investor’s timeline, financial goals, and level of risk tolerance.

For example, a younger investor might hold more stocks for growth, while someone near retirement might shift toward bonds for stability and income.

Diversification

Diversification refers to spreading investments across a range of assets, industries, and regions. A stock that is spread out is better prepared to handle market fluctuations while still pursuing long-term growth.

AA/Diversification Disclosure
Neither Asset Allocation nor Diversification guarantees a profit or protects against a loss in a declining market. They are methods used to help manage investment risk.

Tax-loss harvesting

Tax-loss harvesting involves selling stocks to offset tax liabilities resulting from gains from other investments, thereby balancing out the value of these gains. This strategy helps reduce capital gains taxes and can improve after-tax returns. The proceeds from the sale are often reinvested, making similar, but not identical, purchases to keep the portfolio’s overall strategy.

Rebalancing

Rebalancing means adjusting the portfolio to bring it back in line with the original investment plan. Over time, some investments may grow faster than others, shifting the balance of the portfolio.

Rebalancing Disclosure
Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.

Frequently Asked Questions About Investment Management

What is the 10 5 3 rule of investment?

The 10-5-3 rule is a basic guideline that reflects average long-term returns for different types of investments:

10% return from stocks
5% return from bonds
3% return from cash or savings

These are not guarantees but estimates based on historical performance. The rule helps set realistic expectations and shows how different investment types carry different levels of risk and reward. It's especially useful when planning long-term goals, such as retirement.

What type of investment is best for beginners?

For most beginners, the best investments are those that are easy to understand, low-cost, and widely diversified. Common starting points include:

Index funds: These track the overall market and are simple, low-cost options.
Target-date funds: These automatically adjust the investment mix based on your expected retirement year.
Robo-advisors: These offer automated portfolio management with little setup.

MF/ETF Disclosure:

Mutual Funds and Exchange Traded Funds (ETF’s) are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. An investment in the Fund involves risk, including possible loss of principal.

Your goals, risk, and other factors will help you make the best decision on how involved you want to be. Starting with a simple, balanced approach is often the most effective way to proceed.

What is the safest investment with the highest returns?

No investment is completely risk-free, but some are considered safer than others. Typically, U.S. Treasury bonds, high-yield savings accounts, and certificates of deposit (CDs) are among the safest options.

However, safety often comes at the expense of lower returns. If you're seeking higher returns with limited risk, a diversified portfolio that combines stocks and bonds may offer a balanced solution. It’s essential to find the right balance based on your timeline and comfort level with risk, rather than prioritizing the highest return alone.

Tax/Legal Disclosure
Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult a professional regarding your individual circumstances.

Blog Disclosure
This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. (FirmName) does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

Charts & Chat - September 22, 2025

Mon, 22 Sep 2025 14:26:30 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Discussion of Leading economic indicators - negative trends last few years, but coincident indicators continue to move higher

2. Strong relative performance from gold - still viable as a diversification tool

3. money market balances still rising ($7.7 trillion) - lots of market liquidity available

4. infrastructure spending driven by AI, especially in the US - spending likely to continue for several years

5. tariff revenue now 18% of household income tax receipts

6. consumer spending trending down, earnings estimate growth largely driven by Mag 7, tech stocks

Market Minutes - September, 2025

Tue, 09 Sep 2025 16:33:53 GMT

Review Market Minutes insights from September 2025 and stay informed on key market trends. Connect with Boyce Wealth to discuss your strategy today.

Charts & Chat - September 8, 2025

Tue, 09 Sep 2025 16:26:28 GMT

This week, CEO Eric Boyce, CFA discusses:

1. labor market is losing some steam, especially in tariff-impacted sectors; job growth falling short of breakeven

2. downside risk to payroll growth, unemployment next few months

3. housing market remains challenged due to affordability; prospective buyer traffic/builder confidence weak

4. rise in prime and subprime auto loans as a proxy for credit conditions

5. valuations higher based on price/sales, price/book and price/earnings

6. deceleration of growth in Mag 7 stocks; however, concentration of Mag 7, media and telecom create strong influence over the S&P 500

Charts & Chat - September 1, 2025

Tue, 02 Sep 2025 15:41:59 GMT

This week, CEO Eric Boyce, CFA discusses:

1. housing affordability woes, electricity prices moving up with data center demand

2. sentiment much higher for the higher income population than for lower incomes

3. Atlanta Fed GDP estimate 3.5% annualized for 3rd quarter, despite slowing in consumer spending

4. valuations high, but forward performance coming off a market high is very respectable

5. market breadth improving, foreign ownership increasing, margins balances increasing

6. market expects 0.25% rate decrease in September, but inflation (PCE) has picked up and likely to move slightly higher next few months

7. yields converging, yield curve steepening, NO sign of recession in the high yield market

8. Foreign central banks now hold more gold than US treasuries

Hire the Best: Choose a CVA to Value Your Business

Mon, 01 Sep 2025 11:00:10 GMT

When business owners seek an accurate valuation of their enterprise, choosing a qualified professional is crucial. Among the credentials available in the valuation industry, the Certified Valuation Analyst (CVA) accreditation, granted by the National Association of Certified Valuators and Analysts (NACVA), stands out as one of the most respected and comprehensive. Here’s why employing a CVA-accredited expert is the best decision for any business owner looking to determine the true value of their business.

First, CVAs undergo rigorous training and a demanding examination process that ensures they possess deep expertise in valuation principles, market analysis, and financial statement assessment. This specialized knowledge goes well beyond basic accounting or financial analysis. NACVA’s ongoing education requirements mean that CVAs stay current with evolving valuation standards, tax laws, legal precedents, and industry practices.

Second, the credibility and professionalism of a CVA-accredited expert are recognized in various legal and financial settings. Courts, regulatory bodies, banks, and investors often demand valuations prepared by experts with certifications like the CVA, as these provide the added assurance of objectivity and methodological soundness. When selling a business, applying for a loan, addressing shareholder disputes, or complying with IRS requirements, a valuation report signed by a CVA can withstand intense scrutiny and enhance stakeholder confidence.

Additionally, NACVA enforces a strict code of ethical conduct for its members. Business owners can trust that a CVA will maintain independence, confidentiality, and transparency throughout the valuation process. This professional integrity reduces the risk of conflicts of interest or biased results, ensuring that valuation conclusions are fair and impartial.

Lastly, a CVA takes a holistic approach, considering not only historical financials, but also industry trends, economic conditions, intellectual property, and operational strengths and weaknesses. This comprehensive view results in a more accurate and defensible valuation— critical for strategic planning, mergers and acquisitions, succession planning, or litigation support.

In summary, engaging a NACVA-accredited CVA provides unparalleled expertise, credibility, ethical assurance, and a robust valuation process. Your business is not only a source of income, but also your life’s work. It can be your most valuable personal asset. You’ll want to have an accurate understanding of its value, and a CVA can provide that.

Tariffs, Stagflation Jitters, and a Fed Pivot

Mon, 01 Sep 2025 11:00:10 GMT

Dear Clients and Friends,

The economic landscape in late 2025 points to a mild slowdown, tariff-driven stagflation, and an upcoming Federal Reserve easing cycle, fostering a potential increase in volatility, especially in Big Tech. We expect Fed rate cuts starting in September, supported by anchored inflation expectations, bolstering equities but requiring caution. Manufacturing surveys show rising prices with slowing activity and employment, signaling temporary stagflation from tariffs. Markets remain resilient, with the S&P 500 near highs, stable 10-year Treasury yields, and strong Mag 7 performance. This mirrors past technical slowdowns, with modest S&P 500 drawdowns and relatively mild adverse impact on economic growth.

Key Indicators Suggest Low Recession Risk:

Employment: Stalling, not collapsing, with AI potentially offsetting labor supply constraints.
Macro/Profits: Mixed signals, but 2nd quarter earnings are stronger than expected.
Liquidity: Growing money supply, low delinquencies, and ample corporate bond issuance.
Capital Markets: Optimistic, with minimal recession pricing.
Fiscal Policy: Uncertainty reigns; however, adding some benefit to economic growth from the One Big Beautiful Bill Act (OBBBA).

Key Risks:

1. Stagflation: Likely temporary; only 10% of core personal consumption expenditures (PCE) are import-related.

2. Financial Instability: Unlikely to happen within an easing cycle; private credit and crypto have some risk in this environment.

3. Housing: Expensive but supported by low supply and fixed-rate mortgages.

Investment Strategy:

Remain steadfast within long-term investment policies. Diversification remains important across and within asset classes, adding downside protection where you can, but also taking advantage of volatility when it spikes and being opportunistic and future focused.

Please feel free to schedule a review of your portfolio or discuss any questions you may have. Thank you for your continued trust and confidence.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — September 2025

What You Need To Know Before Hiring A Professional To Invest For You

Fri, 22 Aug 2025 17:33:11 GMT

Hiring someone to invest on your behalf is a decision with long-term implications for your financial confidence. It goes beyond seeking higher returns; it’s aligning your investment strategy with your specific goals, risk tolerance, and time horizon. Yet, many individuals enter this process with unclear expectations or an incomplete understanding of what a professional investor actually provides.

According to research, such as The Women’s Guide to Successful Investing , clients often face challenges evaluating competence, navigating fees, and identifying real value. Without clear criteria, it’s easy to overpay or choose someone based on sales ability rather than fiduciary responsibility.

This guide is designed to provide a practical framework for determining whether hiring a professional is the right choice for your situation. It will help you ask better questions, challenge common assumptions, and decide with confidence.

1. Know What a Professional Investor Actually Does

Hiring a professional to invest your money doesn’t just mean handing it over to someone who picks stocks. A competent investment professional is responsible for managing your money in a manner that aligns with your financial goals, risk tolerance, and time horizon.

Their job often includes:

Building a diversified portfolio based on your personal situation
Rebalancing investments when markets shift or your life changes
Managing risk to help preserve your money in both good and bad markets
Improving tax efficiency through strategies like asset location or tax-loss harvesting
Providing guidance during market downturns to help you avoid emotional decisions

In short, they’re helping you build a plan, not just a portfolio. If someone focuses only on beating the market without understanding your needs, that’s a red flag.

Rebalancing Disclosure
Rebalancing/Reallocating can entail transaction costs and tax consequences that should be considered when determining a rebalancing/reallocation strategy.

Diversification Disclosure

Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

2. Get Clear on Your Goals and Timeline Before You Talk to Anyone

Before hiring someone to manage your investments, you need to be clear on what you’re trying to achieve. This involves defining your financial goals and establishing a timeline for achieving them.

Ask yourself:

When do I want to retire?
Will I need to support children or aging parents?
Do I want to buy property or start a business?
How much risk am I willing to take to reach these goals?

Goals give direction; timelines give structure. If you're unsure about either, focus on that aspect before seeking outside help.

3. Understand the “10/5/3 Rule” and What Returns You Can Reasonably Expect

The “10/5/3 Rule” is a simple way to set realistic expectations for investment returns:

10% average return for stocks
5% for bonds
3% for cash or cash-equivalent assets

These are long-term historical averages, not guarantees. Actual returns will vary year to year, sometimes widely. But the rule is helpful because it helps you frame what’s realistic over time.

For example, if you have $2 million invested in a balanced portfolio and plan to withdraw 4% annually (or $80,000), the 10/5/3 rule suggests that this strategy could be sustainable, especially in a lower-cost area like Texas, where income stretches further.

The key point: If your expectations are too high, you might take unnecessary risks. If they’re too low, you might miss opportunities. A good investment professional helps you find the right balance.

4. Evaluate Advisors Using the 3 C’s: Competence, Compensation, and Chemistry

When selecting someone to manage your investments, consider three key factors: competence, compensation, and chemistry .

Competence means they possess the necessary knowledge and experience to manage your finances effectively. Look for certifications like CFP® (Certified Financial Planner) or CFA® (Chartered Financial Analyst), and ask how they make investment decisions. Do they use a clear process? Have they worked with individuals in a similar situation before?
Compensation reveals how they are compensated, and it influences the advice they provide. Fee-only managers get paid a flat fee or a percentage of your assets, while others earn commissions from selling financial products. Always ask for full transparency. A professional should explain their fees in plain language.
Chemistry matters more than people think. You need to feel comfortable sharing your financial life and asking tough questions. If the advisor talks over you, avoids your questions, or seems more interested in selling than listening, move on.

5. Ignore the Noise: You Don’t Need Millions or a Finance Degree to Hire Smart Help

Many people assume professional investment advice is only for the wealthy. That’s false.

If you’re building savings, preparing for retirement , or facing major decisions like selling a business or receiving an inheritance, you may benefit from guidance, regardless of your net worth.

You also don’t need to be a financial expert. A good advisor translates complex information into clear steps. What matters is that you’re willing to engage, ask questions, and follow through on a plan.

In fact, some of the most successful long-term investors are people who knew when to delegate. Hiring help isn’t about giving up control; it’s about getting support where it matters.

6. Understand What You’re Paying For, And Whether It’s Worth It

Professional investment help comes at a cost, but the value should outweigh the fee.

Many advisors charge around 1% of the money they manage for you each year. On a $1 million portfolio, that’s $10,000 per year. While that may seem high, it’s important to ask: What do you get in return?

A qualified advisor should help you:

Stay invested when markets are volatile.
Manage taxes where possible.
Align your money with your long-term goals.
Avoid costly mistakes, like withdrawing at the wrong time or taking too much risk.

If they’re only picking investments and not offering broader support, the value may not be worth the cost. Ask for a breakdown of services. If the answers aren’t clear or specific, keep looking.

7. Know the Downsides: When Hiring a Professional May Not Be the Right Call

Hiring a professional isn’t always the best option. In some cases, it may add cost without adding real value.

Here are situations where hiring someone might not make sense:

You have a simple portfolio (e.g., low-cost index funds) and prefer to manage it yourself.
You’re financially literate by making your own investment decisions.
The advisor doesn’t offer services beyond investment selection , like tax planning, retirement strategy, or estate coordination.

Also, some advisors charge high fees but offer limited personalization. Others may sell financial products that benefit them more than you. If an advisor focuses heavily on sales or doesn’t take time to understand your whole situation, that’s a warning sign.

In short, professional help should bring clarity, not confusion. If it doesn’t feel aligned with your needs, it’s okay to walk away.

8. The “7% Rule” and How Professionals Help You Make Smart Withdrawal Decisions

The “7% rule” refers to how much income you might safely withdraw from your investment portfolio each year. Many experts consider a range of 4% to 7% to be a reasonable target, depending on your age, asset mix, and market conditions.

For example:

Withdrawing 4% annually from a $1 million portfolio equals $40,000 per year.
A 7% withdrawal would result in $70,000, but with a higher risk of depleting funds too early.

Professionals help you find the right number tailored to your specific needs. They consider:

How long do you need the money to last
Market volatility and inflation
Tax consequences of withdrawals
Other sources of income, like Social Security or rental property

Without a plan, it’s easy to overspend in good years or panic in bad ones. A professional helps smooth those decisions, so your income is both reliable and sustainable.

SSA Disclosure
Not associated with or endorsed by the Social Security Administration, Medicare, or any other government agency.

9. Not All Professionals Are the Same: What You Need to Ask Before You Hire

Not every advisor offers the same services, adheres to the same standards, or receives the same compensation. That’s why asking the right questions is essential before you make a commitment.

Key questions to ask:

Are you a fiduciary 100% of the time? (This means they are legally required to act in your best interest.)
How are you paid? (Fee-only, commission, or a combination?)
What services do you provide beyond investment management?
Who will I be working with on an ongoing basis?
Can you explain your investment philosophy in plain language?

The answers should be specific, clear, and make sense to you. If you’re getting vague responses or feel pressured, that’s a sign to keep looking.

Choosing an advisor isn’t about picking the “best” on paper; it’s about finding someone whose advice aligns with your goals and values.

Conclusion: Make the Decision That’s Right for You

Hiring someone to handle your investment management is a personal decision that depends on your goals, confidence, and the complexity of your needs. There’s no single right answer; only the one that best fits your situation.

If you decide to work with a professional, make sure you understand what they do, how they’re paid, and whether their services match what you actually need. Look for someone who adds value beyond just picking investments, someone who helps you make smart decisions, stay on track, and adjust when life changes.

If you choose to manage your investments yourself, that’s valid too, as long as you have a plan and stick to it.

Either way, the goal is the same: to grow and preserve your wealth with intention. Clear thinking is what leads to better outcomes.

Tax/Legal Disclosure

Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult a professional regarding your individual circumstances.

Blog Disclosure
This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results .

Charts & Chat - August 17, 2025

Mon, 18 Aug 2025 14:06:15 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Look back at lack of manufacturing growth following 2018 tariffs

2. Tariff revenue high; potential upside in capital spending in advanced manufacturing, sources of power for data centers, and other infrastructure spending

3. Misery index not foreshadowing recession; small business credit conditions remain tight

4. freight volumes, pricing subdued - may portend slowdown in consumer spending

5. consumer delinquencies picking up in some areas; paying close attention to trends

6. market breadth thin - not your father's S&P 500 anymore

7. drawdowns lead to opportunity; bond volatility higher than equity volatility & may be more seasonal than we think

Charts & Chat - August 10, 2025

Mon, 11 Aug 2025 15:53:44 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Stocks have moved higher over the long term despite variations in price/earnings multiples

2. S&P 500 index is inherently different from even 10 years ago; volatility and intra-year drawdowns are absolutely normal and can lead to generous long term returns if one is patient and diligent

3. the power of long term compounded return and diversification - stocks versus bonds and cash; stocks have considerably more volatility than bonds

4. The importance of being diligent on monitoring inflation - trends in service inflation, wages provide dilemma for Fed on interest rates

5. Boom in infrastructure spending, notably data centers

6. Surge in new business applications bodes well for entrepreneurship

7. Big opportunity in offshore Asia private credit and private equity

Charts & Chat - August 5, 2025

Tue, 05 Aug 2025 22:33:18 GMT

This week, CEO Eric Boyce, CFA discusses:

1. The slowing in the labor economy due to tariffs, etc.

2. 2nd quarter GDP reflected reversal from 1Q - real read through is slowdown in final sales to private domestic purchasers

3. In 25 years, persons over 55 yrs of age own 20% more of the total household assets...implications for wealth planning and transfer

4. Potential implication on long-term interest rates from increased deficits from OBBBA

5. Second quarter earnings stronger than expected; profit margins holding steady amidst increased tariffs

6. Updates on housing starts/sentiment, consumer financial health, PMI data, consumer sentiment

After the Texas Floods: Resilience and Market Discipline

Fri, 01 Aug 2025 11:00:03 GMT

Dear Clients and Friends,

As we move further into the summer of 2025, we reflect on a month that presented both familiar market dynamics and significant regional challenges. Our commitment remains steadfast in navigating these complexities and identifying opportunities to safeguard and grow your investments.

Market Overview

Between June and July to-date, investment markets have shown a strong rebound and continued positive momentum, particularly in equities. In June, major U.S. equity indices experienced gains, with performance largely driven by robust corporate earnings, especially from the technology and AI sectors, easing trade tensions between the U.S. and China, and a de-escalation of geopolitical conflicts in the Middle East. Treasury yields declined, leading to positive returns in the bond market. The Federal Reserve maintained its interest rates, holding them steady for the fourth consecutive meeting.

As we moved into July, the equity markets saw some slight pullbacks from their recent all-time highs. Bond yields saw some fluctuation as still-benign inflation data was released; meanwhile, commodities, particularly oil, experienced price movements influenced by global supply dynamics and, notably, recent events within the United States.

The overall sentiment remains cautiously optimistic, with analysts like Goldman Sachs projecting low recession probabilities, stable earnings, and further upside for the S&P 500, partly due to expectations of earlier-than-anticipated rate cuts by the Federal Reserve. Investors continue to monitor inflation trends, central bank policies, and any evolving geopolitical situations closely.

The political winds have picked up, however, throwing some caution into the wind. Renewed tariff threats from Washington have once again stoked uncertainty, prompting investors to reassess risk. The deadline for trade “deals” has now been extended to August 1st, but it is reasonable to assume that will be extended again given the inherent complexity and duration of trade pact negotiations. The headline roulette from the Trump administration has resumed, and rhetoric has become an instrument of policy. With as much as the markets overreacted to the initial April announcements, it is hard to know whether the markets will underreact to the current news flow.

Economic Commentary

The broader economic landscape continues to show signs of moderation. Inflation has yet to display the full effects of the tariffs. The Federal Reserve's stance on interest rates remains a key focus, with market participants closely watching for any signals regarding future monetary policy adjustments. Employment figures continue to be strong, indicating a healthy labor market, though wage growth remains a topic of ongoing debate. Economic growth is likely to expand before slowing later this year.

Comment: The Texas Floods

The devastating floods that swept across parts of Texas this past month have had a profound human and economic impact. Our thoughts and prayers continue to be with all those affected by this once in a thousand years natural disaster. Beyond the human tragedy, loss, and immediate humanitarian crisis, these events carry significant implications for the impacted communities and the regional economy.

The most immediate effects are seen in widespread property damage, displacement of residents, and disruption to local businesses. Infrastructure, including roads, bridges, and utilities, has sustained considerable damage, and the floods could lead to a temporary slowdown in regional economic activity. However, the charitable and collaborative spirit of central Texas remains very strong, and we are blessed that communities far and wide are working closely together to get through this.

Portfolio Review and Outlook

Our investment strategy remains focused on diversification and resilience. We continue to favor companies with strong balance sheets, diversified revenue streams, and a proven ability to adapt to changing economic and environmental conditions. Our outlook for the remainder of the year remains cautiously optimistic, with a keen eye on inflation trends, central bank policies, geopolitical developments, and as mentioned, the political theater coming out of Washington. We continue to believe that a well-diversified portfolio, strategically allocated across various asset classes, remains the most prudent approach to achieving your long-term financial goals.

Please feel free to schedule a review of your portfolio or discuss any questions you may have. Thank you for your continued trust and confidence.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — August 2025

Relevant Bullet Points of the One Big Beautiful Bill Act

Fri, 01 Aug 2025 11:00:03 GMT

On July 4th Donald Trump signed the One Big Beautiful Bill Act (OBBA), a law which extended many of the tax code changes made in the 2017 Tax Cuts and Jobs Act (TCJA) and added new provisions that will impact many of our clients. The bill totals a whopping 870+ pages so I’ll try to be as concise as possible.

Lets begin with the extension of tax breaks. The TCJA reduced federal tax bracket rates in 2017 and those lower rates were set to expire at the end of 2025. The OBBA made permanent the reduction in federal tax brackets. Below is a comparison of what rates would have been post TCJA without this permanent extension.

In addition, the larger standard deduction was made permanent. For the majority of filers, the larger standard deduction created by TCJA eliminated the need to itemize deductions on taxes. In 2025, the standard deduction is $31,500 for joint filers. Additionally, a temporary senior deduction of $6,000 for each qualifying individual (for both itemizers and non-itemizers) that phases out when Modified Adjusted Gross Income (MAGI) exceeds $75,000 is available from 2025 through 2028.

Good news for parents with dependent children, an increase to the child tax credit was made permanent with an increased maximum of $2,200 in 2026. As an added bonus for home owners carrying a mortgage, OBBA delivered a mixed bag of relief. The mortgage interest deduction of borrowing for a home remains capped at $750,000 in principal. Bummer for those in high cost of living areas. On the positive side, the cap on itemized deductions for State and Local Taxes (known as SALT) was increased from $10,000 to $40,000. This means higher property taxes may be deducted up to $40,000 for incomes below $500,000. Above the $500k threshold, the deduction drops back down to $10,000.

For charitable giving , a $1,000 ($2,000 for joint filers) above-the-line deduction for charitable contributions to qualified organizations is available. This means you no longer have to itemize your taxes to deduct the first $1,000 of charitable contributions. However, a 0.5 percent floor was created on charitable contributions if you itemize. For example, if your Adjusted Gross Income (AGI) was $100,000 you could only deduct charitable contributions exceeding $500 (0.5% of $100,000).

For clean energy proponents, incentive tax credits for purchasing green energy items such as electric vehicles or residential energy efficiency credits have been repealed.

In support of bringing manufacturing back to America, a temporary auto loan interest deduction is available for itemizers and non-itemizers for new autos with final assembly in the U.S. for tax years 2025 through 2028. The deduction is limited to $10,000 and begins to phase out when income exceeds $100k for single filers, $200k for joint filers.

On the estate planning front, a permanent increase in the estate and lifetime gift tax exemption to an inflation-indexed $15 million for single filers and $30 million for joint filers beginning in 2026.

Other provisions related to tip and overtime income, business taxes, international tax and other nuanced areas of tax code were also included in the bill; however are beyond the scope of this summary.

Bills such as TCJA and OBBA create the need to revisit financial plans - with a particular focus on the areas of estate and tax planning. We encourage you to review the changes above and if you would like to discuss or dive deeper into how this could effect you please reach out to us

Is $2 Million Enough To Retire On In Texas?

Fri, 18 Jul 2025 16:12:56 GMT

Retiring with $2 million is a milestone many Americans dream of reaching, but what that money actually provides depends heavily on where you live and the lifestyle you envision. In Texas, where the cost of living can vary significantly by region, $2 million can open up a range of retirement possibilities, from modest and stress-free to comfortably upscale.

The cost of housing alone can make a significant difference in how far your nest egg stretches, whether you're pursuing upscale city living in Austin or a more relaxed, budget-friendly lifestyle in places like Amarillo.

To illustrate this variation, here’s how median home prices and lifestyle considerations differ across several Texas cities:

Source: Redfin Texas Housing Market

Understanding Sustainable Income from a $2 Million Portfolio

One of the most common questions for high-net-worth retirees is not simply “Do I have enough?” but “How do I turn this into income I can live on?” That’s where retirement income planning begins. A lump sum, even a large one like $2 million is not inherently useful unless it’s translated into sustainable, dependable income.

The 4% Rule as a Planning Baseline

The 4% rule is a widely used retirement planning guideline that helps estimate how much income your investment portfolio can reasonably generate each year, without running out of money over a typical 30-year retirement.

The rule suggests that you can safely withdraw 4% of your total retirement savings in your first year of retirement, then adjust that amount for inflation in each subsequent year.

This rule is based on historical investment performance, assuming a diversified portfolio (typically 60% stocks and 40% bonds), and is designed to balance longevity risk with market variability.

Here’s the basic formula:

Annual Income = Total Retirement Savings × 4%

So, for a $2 million portfolio:

$2,000,000 × 0.04 = $80,000/year

That means in your first year of retirement, you could withdraw $80,000 , and then increase that amount annually to keep pace with inflation.

Example:

Let’s say you and your spouse retire at age 65 with $2 million in total savings. You follow the 4% rule and begin by withdrawing $80,000 in the first year.

If inflation is 3% the next year, you’d withdraw:

$80,000 × 1.03 = $82,400

The third year:

$82,400 × 1.03 = $84,872

Adjusting for More Conservative Scenarios

Recent research from Morningstar suggests the traditional 4% rule may be too aggressive for today’s retirees. Instead, they recommend a 3.7% withdrawal rate to reduce the risk of running out of money.

Here’s the math:

$2,000,000 × 0.037 = $74,000/year

That’s about $6,167 per month in income.

While this is slightly less than the $80,000 generated by the 4% rule, this more conservative approach may help support greater retirement confidence for those planning to draw income over several decades.

Cost of Living in Texas as a Retiree

Texas is often praised as a retirement-friendly state, and for good reason. Its combination of no state income tax, relatively low housing costs (outside a few metros), and a wide range of lifestyle options makes it appealing for retirees from across the country. But affordability can still vary significantly depending on where in Texas you choose to live.

Let’s break down the core elements of the cost of living for a retired couple.

Housing: The Largest Fixed Expense

Housing remains the largest ongoing expense for most retirees. In Texas, this cost varies dramatically by region.

Austin (urban): Median home price is ~$550,000, among the highest in the state
Dallas-Fort Worth metro: Median home prices average around $420,000
San Antonio and Houston: Around $320,000–$350,000, offering more affordable urban living
Amarillo or Tyler (rural/small-town): Homes can still be found for under $250,000

For retirees with a paid-off mortgage, monthly housing costs may be limited to property taxes, insurance , and maintenance. However, property taxes in Texas can be higher than national averages (1.6%–2.0% of home value), though 65+ homeowners may qualify for homestead exemptions and tax ceilings.

Healthcare: A Rising Concern With Age

Even with Medicare, healthcare is a growing retirement expense, particularly in later decades.

Consider these average monthly costs for a couple aged 65+:

Medicare Part B premiums: ~$175/month per person
Medigap or Medicare Advantage plan: $100–$250/month per person
Out-of-pocket (co-pays, prescriptions, dental, vision): ~$250–$500/month per couple
Long-term care insurance: Optional, but often $200–$400/month depending on age and health

Long-term care costs (assisted living, memory care, home health aides) are not covered by Medicare and can run $4,000–$8,000/month if needed later.

Everyday Living: Utilities, Food, Transportation, Leisure

Texas’s climate and geography help moderate many everyday expenses, though urban areas tend to cost more.

A modest lifestyle in a smaller town might require $3,500–$4,500/month, while an urban, travel-heavy lifestyle might exceed $6,000/month.

Tax Advantages for Texas Retirees

One of the most compelling reasons retirees choose Texas is its tax structure:

✅ No state income tax on Social Security, pensions, 401(k)/IRA withdrawals

✅ No taxes on dividends, interest, or capital gains at the state level

✅ Property tax exemptions available for residents 65 and older

✅ No estate or inheritance tax

This means more of your retirement withdrawals stay in your pocket compared to states like California or New York.

Sample Monthly Budget: Retired Couple in Texas

Here’s a simple baseline for a couple with moderate spending, living in a mortgage-free home in a mid-sized Texas town:

This budget allows room for some travel, entertainment, and small luxuries, while still remaining well under the $6,667/month income benchmark generated by a 4% withdrawal on $2 million.

How a $2 Million Retirement Actually Plays Out in Texas

A $2 million portfolio can support a very comfortable retirement in Texas, but comfort depends on how you structure your income and where you choose to live. Let’s look at two realistic retiree profiles based on common decisions.

Solo Retiree in Central Texas

Age : 67
Location : Temple, TX
Home : Paid-off house valued at $275,000
Retirement assets : $2 million in a diversified portfolio
Income plan : 4% withdrawal rate = $80,000/year
Social Security : Receives $2,200/month (~$26,400/year)

This retiree lives on a total of $106,400/year (portfolio + Social Security). Monthly expenses include:

Property taxes and insurance: $500
Medicare and Medigap premiums: $500
Groceries and utilities: $900
Transportation and maintenance: $400
Travel, dining, and hobbies: $1,200

Total monthly spending: ~$3,500–$4,000

With over $8,800/month in income and $4,000 in expenses, she has more than enough to maintain her lifestyle, cover future medical costs, and preserve capital for later years or legacy planning.

Retired Couple in Dallas Suburbs

Age : Both 62
Location : McKinney, TX
Home : Downsized to $400,000 home with $1,500/month mortgage
Retirement assets : $2 million
Withdrawal rate : 3.5% = $70,000/year
Social Security : Planning to delay until 67 for higher benefits
Other income : One spouse consults part-time, earning $18,000/year

Their combined income at age 62 is $88,000/year . Monthly expenses include:

Mortgage + property taxes + insurance: $2,000
Health insurance (pre-Medicare): $1,200
Groceries and utilities: $1,000
Transportation: $500
Travel and entertainment: $800

Total monthly spending: ~$5,500

They are living within their means while preserving future Social Security income. When benefits kick in (expected at ~$3,500/month total), they can reduce withdrawals, giving their portfolio a longer lifespan.

Lifestyle Choices, Financial Risks, and the Trade-Offs That Shape Retirement

Retiring with $2 million provides a strong foundation, but how far that money goes will depend on the lifestyle you choose and the risks you're willing to take. This is about making decisions that align with your priorities, health, and personal goals.

Lifestyle Expectations: Modest, Comfortable, or Expansive

The lifestyle you envision will be the biggest driver of how long your money lasts. Are you planning on frequent travel, seasonal homes, or funding education for grandchildren? Or are you more focused on staying local, enjoying hobbies, and living simply?

In Texas, a $2 million portfolio can support a wide range of lifestyles. For example:

Modest living in a smaller town might require just $4,000/month
Comfortable living in a mid-sized city with some travel and dining might cost $6,000–$7,000/month
Expansive living in a metro like Austin, with luxury spending and frequent international travel, can exceed $10,000/month

Aligning your expectations with your income plan early is one of the most important steps to staying financially secure.

Risk Tolerance: Staying Invested vs. Playing It Too Safe

One of the most common trade-offs retirees face is how much investment risk to take on. If you shift too conservatively (e.g., all bonds or cash), you may avoid short-term losses, but lose long-term growth, especially with inflation.

Many advisors recommend maintaining 40–60% of your portfolio in stocks throughout retirement, depending on your age, health, and withdrawal strategy. Staying invested helps your money continue working for you.

Key point : De-risking too early, before you need to, can quietly erode your portfolio over time. A balanced, diversified portfolio with regular rebalancing is usually more effective than reacting emotionally to market swings.

Healthcare Planning: Beyond Medicare Basics

Even with Medicare, healthcare can be one of your biggest retirement expenses, and one of the most overlooked.

Medicare Part B covers basic doctor visits and outpatient care
Medigap or Medicare Advantage helps fill the gaps but comes with added premiums
Prescription drugs , dental, hearing, and vision often require separate plans
Long-term care , such as in-home assistance or memory care is not covered by Medicare

If you want to protect your $2 million portfolio from the high costs of assisted living or nursing care (which can exceed $80,000/year), consider:

Long-term care insurance , especially if you’re in your 50s or early 60s
Setting aside a dedicated health reserve within your investment plan
Using a Health Savings Account (HSA) if you’re still eligible pre-retirement

Texas Tax Benefits: A Built-In Advantage

Texas retirees benefit from one of the most favorable tax environments in the country:

✅ No state income tax on Social Security, pensions, or IRA withdrawals

✅ No capital gains or dividend taxes at the state level

✅ Homestead exemption reduces property taxes

✅ Seniors (65+) can apply for a property tax freeze, locking in school tax rates

For retirees drawing income from investments, this can mean keeping more of what you withdraw, especially compared to states like California, Illinois, or New York.

Where You Live Matters: Aging in Place vs. Downsizing

As retirement progresses, your housing choices will affect both your lifestyle and your budget. Many retirees start with plans to “age in place,” but later realize their home is too large, expensive to maintain, or physically inconvenient.

Options to consider:

Downsizing to a smaller home or condo can reduce expenses and free up equity
Relocating to a lower-cost area within Texas can improve quality of life and extend savings
Independent or continuing care retirement communities (CCRCs) offer social engagement and access to future care, but come with entry fees and monthly costs
In-home care and home retrofitting can help you stay in place longer, but often require planning and budget allocation

Retiring at 60 with $2 Million: Is It Enough in Texas?

If you're considering retiring at 60 with a $2 million portfolio in Texas, the answer is clear: Yes, it can absolutely be enough. But it depends on how you live, how you plan, and how well you prepare.

Retiring at 60 means you may be planning for 30 to 35 years of income. That makes your spending decisions, healthcare planning, and investment strategy more important than ever. A $2 million nest egg may fully support your goals if your annual spending stays around $80,000 to $90,000 and you are intentional about managing taxes and medical expenses. If your lifestyle calls for $120,000 a year, frequent luxury travel, or higher health costs, then adjustments like part-time income or delaying Social Security might be necessary.

The most important step is to visualize your retirement life clearly. Where will you live? What will everyday life cost? What do you want your money to do for you?

Numbers like $2 million are a strong starting point, but they are not the whole story. Your choices, your lifestyle, your health, and your values will ultimately determine how far that number takes you.

At Boyce & Associates Wealth Consulting , we help individuals and couples turn their hard-earned savings into confident, sustainable retirement plans. We bring clarity, flexibility, and real-world insight to every decision.

If you're within five to ten years of retirement and want to know if your $2 million will take you all the way, let’s build your plan together.

Disclaimer

Disclosure

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Boyce & Associates Wealth Consulting does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past performance is no guarantee of future results.

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency.

Charts & Chat - July 12, 2025

Mon, 14 Jul 2025 13:57:49 GMT

This week, CEO Eric Boyce, CFA discusses:

1. small business remain high due to trade policy

2. GDP likely to rebound - I discuss the drivers of the near term reversal and what to expect

3. US dollar weakness - what are the implications, and what is the relationship between inflation and interest rates

4. Recession probability remains low; long term inflation remains anchored

5. analysis of how many businesses are planning to pass through tariffs to customers

6. Trade war likely to take ~0.9% off GDP (per Apollo) - bigger than any most countries.

7. Analyzing debt, consumer credit and spending trends

8. Trends in earnings estimates, investor sentiment

9. college education costs expected to be up +9% year-over-year

Charts & Chat - July 5, 2025

Mon, 07 Jul 2025 16:31:06 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Analysis of recent and upcoming economic growth and consumer spending data

2. Capital spending, housing slowing, money supply now increasing again

3. Deficit/Debt expectations

4. Updated tariff expectations on inflation, growth, etc.

5. Latest expectations for the social security trust fund

6. Trends in stock valuations, earnings and operating profit margins

The 10 Worst Mistakes in Estate Planning

Tue, 01 Jul 2025 11:00:00 GMT

Estate planning is one of the most foundational steps you can take to protect your legacy and loved ones. Unfortunately, many people make costly errors that create confusion, delay, and unintended consequences. Here are the ten most common estate planning mistakes to avoid:

1. Not Having a Plan

Dying without a will or trust means state laws dictate who inherits your assets, often leading to outcomes you never intended. Do not let the courts decide.

2. Failing to Update Documents

Life changes — like marriage, divorce, or the birth of a child — require updates. Outdated plans can send assets to the wrong people. You should update every 5 years at the minimum.

3. Not Planning for Incapacity

Without a durable power of attorney or healthcare directive, your family may need court intervention to manage your affairs if you're incapacitated. This makes sure someone can pay your bills while you are not able to.

4. Choosing the Wrong

People or too many people Naming an untrustworthy or incompetent executor, trustee, or agent can lead to mismanagement, delays, and legal disputes. Having multiple trustees or executors makes decision making difficult.

5. Ignoring Beneficiary Designations

Retirement accounts and insurance policies bypass your will. If designations are outdated, assets may go to unintended recipients. I have heard of ex-spouses receiving tax-free insurance payout and not the current spouse. Check the beneficiaries every year.

6. Overlooking Tax Implications

Failing to consider estate or gift taxes can shrink your legacy. Strategic gifting and trusts can minimize tax burdens. In 2025 the lifetime estate and gift exemption is $13.99 million per person. However, if Congress does not do anything, the exemption amount goes down $7 million on January 1, 2026. If your estate is more than the exemption it will be taxed at your tax rate. Example: If you pass in 2025 and your estate is $15 million, the taxable amount is $1.01 million. You would owe $404,000. In 2026, if nothing changes, your tax would be on $8 million. You would owe 40% on $8 million, $3.2 million in taxes.

7. Fund your Trust

Trusts can avoid probate, ensure privacy, and manage inheritances over time. Without them, assets may be misused or delayed. Make sure you title what you can in your trust or put as beneficiaries if necessary. Consult your lawyer and make sure they walk you through how to retitle property and investments in the Trusts name.

8. Forgetting Digital Assets

Without access to online accounts and passwords, heirs may lose valuable financial and sentimental property. Even if you are in the hospital incapacitated, who is going to keep paying the monthly bills. Have a plan!

9. Leaving Assets Directly to Minors

Minors can't legally own property. Without trust, courts step in — and full control often transfer at age 18. If you have trust, you will have the trustee manage the assets for the minors. You have more control from the grave with a Trust. Feel free to put in there that they must be debt free other than a mortgage for a year or get an education. They must complete it before a trustee releases the funds. I do not want my 18-year-old getting a lot of money right away!

10. Going DIY Without Legal Help

Online forms can’t replace personalized legal guidance. Mistakes here often cost far more than hiring an expert. Here is a real-life example, A man drafted his own will. He was divorced and had 6 kids. In the will he stated that his kids would each get 1/6% of the estate and his ex-wife would have the remainder. The kids collectively only got 1% (1/6*6), the ex-wife got 99%. All because of a percentage symbol. Just be careful. Spending the money now will save you in the long run. Avoiding these mistakes ensures your legacy is secure and your wishes are honored.

Investing Through Uncertainty: Discipline Over Headlines

Tue, 01 Jul 2025 11:00:00 GMT

Dear Clients and Friends,

As we navigate the current economic landscape, a pervasive sense of uncertainty often dominates headlines and conversations. Whether it's shifting interest rates, geopolitical tensions, or evolving market dynamics, it's natural to feel a heightened awareness of potential challenges. This month, I want to address these feelings directly and offer a perspective on how we approach investment management during such times.

We understand that market fluctuations and economic unknowns can be unsettling. You've entrusted us with your financial well-being, and it's our responsibility to guide you through all market cycles, especially those marked by increased volatility and questions about the future.

Uncertainty is, in many ways, a constant companion in the world of investing. Markets are inherently forward-looking, constantly attempting to price in potential future events, both positive and negative. This means that periods of "certainty" are often fleeting and can sometimes even be dangerous if they lead to complacency. Paradoxically, it is often during times of widespread uncertainty that some of the most compelling long-term opportunities begin to emerge for disciplined investors.

Our core philosophy remains steadfast, particularly when faced with a cloudy outlook:

Embrace a Long-Term Perspective: Short-term noise is precisely that – noise. Focusing on your long-term financial goals allows us to filter out the daily headlines and remain committed to a strategy designed for enduring success. History consistently shows that patient investors who weather temporary storms tend to be rewarded over decades.
Diversification is Your Shield: A well-diversified portfolio is designed to mitigate the impact of any single sector or asset class underperforming. By spreading investments across various industries, geographies, and asset types, we aim to reduce overall risk and enhance resilience.
Avoid Emotional Decisions: Fear and speculation can be powerful drivers, often leading to impulsive choices that deviate from a sound financial plan.

Our role is to provide objective analysis and disciplined execution, ensuring decisions are based on your long-term objectives, not fleeting emotions.

Our approach during uncertain times involves:

Vigilant Monitoring: We continuously monitor global economic indicators, market trends, and geopolitical developments to identify potential risks and opportunities.
Strategic Adjustments: While we adhere to your long-term plan, we remain flexible enough to make strategic adjustments to your portfolio as conditions warrant, always with a careful eye on risk-adjusted returns.
Focus on Fundamentals: We continue to emphasize investing in high-quality assets with strong fundamentals, regardless of short-term market sentiment. These are the companies and investments that tend to perform well over the long haul.

What you can do:

Stay Informed, Not Obsessed: Keep abreast of major economic trends, but avoid getting caught up in the minute-by-minute market movements that can fuel anxiety.
Revisit Your Goals: If you have any new financial considerations or if your risk tolerance has changed, please reach out to discuss them with me.
Maintain Discipline: Trust in the proven principles of long-term investing and the strategy we've built together.

We are committed to helping you navigate this period of uncertainty with confidence. Your financial well-being is our top priority, and we are here to provide the insights and support you need.

Please feel free to schedule a review of your portfolio or discuss any questions you may have.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — July 2025

Charts & Chat - June 22, 2025

Sun, 22 Jun 2025 14:06:46 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Implications from the bombing of Iran

2. looking ahead to possibilities surrounding the expiration of the 90 day tariff moratorium

3. foreign ownership of equities rising/US v. International valuations are well out of line with trends

4. sources of concern for consumers & probability of recession

5. private capital exits remain sluggish and new capital raises falling below recent trend due in part to uncertainty

What is Risk Management in Financial Planning?

Fri, 20 Jun 2025 14:33:30 GMT

Key Takeaways

Risk management is about preparation, not prediction. You can’t control everything, but you can plan for what might go wrong.
It helps protect your financial goals . Whether you're saving, investing, or planning for retirement, risk management keeps you on track when life takes a turn.
The core steps include identifying, assessing, controlling, and reviewing risks.
Common tools include insurance, diversification, emergency savings, and legal planning . These tools help reduce financial stress when unexpected events happen.
Risk is normal , managing it gives you control. Instead of avoiding risk, a good plan helps you move forward with confidence.

What is Risk Management in Financial Planning?

Risk management in financial planning is the process of identifying, assessing, and taking steps to reduce the impact of potential financial losses. It helps people plan for events that could hurt their finances, like a market drop, unexpected medical bills, or even losing a job. The main goal is to protect your money and make sure your financial plan stays on track, even when things don’t go as expected.

Some common types of financial risk include:

Market risk – when your investments lose value because of changes in the stock market
Inflation risk – when your money loses buying power over time
Liquidity risk – when you can’t access your money quickly when you need it
Liability risk – when you face legal or financial responsibility for something, like an accident or business issue
Longevity risk – when you outlive your savings in retirement

By creating a structured plan to manage these risks, people can feel more confident about the future. Planning ahead helps lower the chance of a big financial shock and gives you options when unexpected things happen. A strong risk management plan is not about avoiding all risk, it’s about being ready for it.

Different professionals help manage financial risk as part of a larger financial planning process. A financial analyst usually focuses on numbers, trends, and investment performance. Their job is to look at the data and make forecasts. A financial planner or risk manager , on the other hand, looks at your full financial picture. They help build plans that protect your money, lower risk, and keep your goals within reach.

The Four Components of a Risk Management Plan

A strong risk management plan is built around four key components. Each part plays a different role in protecting your financial future. Below is a breakdown that shows both the purpose of each step (Objective) and how it’s actually done (Process):

Each of these parts builds on the one before it. Together, they help create a plan that not only protects your finances but also adapts as your needs grow and change.

How to Write (or Create) a Risk Management Plan

A risk management plan is a clear, step-by-step document that outlines the risks you may face and how you’ll deal with them. It helps protect your financial goals from things that could go wrong, and gives you a plan to stay on track when they do.

Here’s a detailed breakdown of how to create one.

Step 1. Define Your Financial Goals

Before you manage risk, you need to know what you’re protecting. Start by identifying your financial goals. These are the things you want to achieve with your money.

Examples of financial goals:

Buying a home
Paying off debt
Building an emergency fund
Saving for retirement
Funding college for children
Starting or expanding a business
Leaving an inheritance

These goals vary based on your age, lifestyle, income, and family needs. Some are short-term (within 1–3 years), others are long-term (10+ years). All of them can be affected by risk. Defining them clearly will help you match the right strategies to the right risks.

Step 2. Identify All Relevant Identify Financial Risks

Once you know your goals, the next step is to identify what could prevent you from reaching them. Think broadly. Risks include any situation that could disrupt your income, increase your costs, or damage your assets.

Types of common financial risks to consider:

Income risks: job loss, unstable employment, reduced hours, business failure
Health risks: injury, illness, disability, long-term care needs
Investment risks: market downturns, inflation, interest rate changes
Liability risks: legal issues, lawsuits, accidents, professional exposure
Life event risks: death of a breadwinner, divorce, growing family, aging parents
Property risks: home damage, auto accidents, theft, natural disasters

How to identify risks:

Review your current income and expenses
Look at your insurance coverage
Consider your family situation
Think about past events that caused financial stress
Consider your age, health, and occupation

You don’t need to list every possible risk, just the ones that are most relevant to your life and goals.

Step 3. Assess the Level of Each Risk

After identifying the risks, you need to figure out which ones are the most serious. That means looking at two factors:

How likely is it to happen?
How much would it cost or affect your goals if it did?

You can rate each risk as:

Low likelihood / low impact
High likelihood / low impact
Low likelihood / high impact
High likelihood / high impact

Why this matters:

Risks with high impact and high likelihood should be handled first.
Risks with low impact and low likelihood might not need much attention right away.
Some risks are rare but so damaging (like a major illness or death) that they’re still worth planning for.

This step helps you prioritize your efforts and avoid wasting resources on minor risks.

Step 4. Choose the Right Strategy for Each Risk

Now that you’ve listed and assessed your risks, you can choose how to deal with them. There are four basic ways to manage any risk:

How to choose:

For large, unpredictable risks (like death or disability), transfer them through insurance.
For controllable risks (like health issues), reduce them through lifestyle changes.
For small risks, accept them and plan to cover them using savings.

Each risk should be matched to one or more of these strategies based on your comfort level and resources.

Step 5. Document the plan

Putting everything into writing gives you clarity and a clear path to follow. Your risk management plan doesn’t have to be complicated. A simple chart or outline works fine as long as it’s easy to understand and follow.

Your document should include:

A list of your financial goals
The risks that could affect those goals
The level of each risk (low, medium, high)
The strategy you’ll use for each risk
The tools or actions needed (insurance, savings, legal steps, etc.)

You can use a spreadsheet, a written report, or even a simple worksheet. What matters most is that it’s organized and that you can refer back to it when needed.

Step 6: Assign Responsibility

Each part of your plan needs someone in charge. This ensures that the plan is actually followed and nothing is left unfinished.

Who might be responsible:

You — for building savings, tracking expenses, staying insured
A financial advisor — for reviewing investment risk and adjusting strategies
An insurance agent — for evaluating and updating policies
An attorney — for estate planning documents like wills or trusts

If you’re working with professionals, keep a record of who is handling what and when reviews or updates will take place.

Step 7. Review Periodically and Adjust as Life/Market Changes

A risk plan isn’t one-and-done. It should change as your life and finances do. A good habit is to review your plan once a year or whenever you hit a major life event.

Reasons to update your plan:

Change in job or income
Marriage, divorce, or birth of a child
Buying or selling property
New investments or business ventures
Health changes
Policy or legal changes that affect your coverage

Your plan should grow with you. Keeping it updated means your protection stays strong, and you won’t be caught off guard when life changes.

How to Calculate Risk in Financial Management

Calculating financial risk helps you understand how much uncertainty exists in your decisions, especially when it comes to investing, saving, or planning for the future. While you can’t predict everything, measuring risk gives you a better idea of what’s at stake and how much you could lose or gain.

There are many ways to look at financial risk. The method you use depends on the type of decision you’re making.

1. Basic Risk Formula (for Personal Finance Decisions)

When looking at personal financial choices (like budgeting or goal planning), risk is often based on two factors: likelihood and impact .

You can use this simple formula:

Risk Score = Likelihood × Financial Impact

Example:

Risk: Job loss
Likelihood = 2 (not very likely)
Impact = 5 (very high financial cost)
Risk Score = 2 × 5 = 10

This risk may not be likely, but because the impact is high, it’s still worth preparing for.

2. Standard Deviation (for Investment Risk)

When looking at investment performance, standard deviation is a common way to measure how much the returns go up and down over time.

In simple terms, it tells you how spread out the investment returns are from the average (or expected) return. A higher standard deviation means the returns can vary a lot, the investment might perform very well some years and poorly in others. A lower standard deviation means the returns are more stable and closer to the average each year.

Standard Deviation = Measure of how far investment returns move from the average

Standard deviation is helpful when comparing funds, portfolios, or strategies. Lower deviation often means lower risk, but it could also mean lower reward.

3. Value at Risk (VaR)

For more advanced or business-related risk decisions, Value at Risk (VaR) is used. It estimates how much money you could lose in a worst-case scenario over a certain time.

There are different methods to calculate VaR, but here’s the most common and easy-to-understand one:

VaR = (Portfolio Value) × (Standard Deviation of Returns) × (Z-score)

Here’s what each part means:

Portfolio Value – The total amount you’re investing (e.g., $100,000)
Standard Deviation – Measures how much your returns usually go up or down
Z-score – A number that reflects the confidence level (for example:
1.65 = 95% confidence
2.33 = 99% confidence)

VaR Example:

Let’s say you have a $100,000 investment, and the standard deviation of monthly returns is 6%.

If you want a 95% confidence level, the Z-score is 1.65.

VaR = $100,000 × 6% × 1.65 = $9,900

“There is a 95% chance that this $100,000 portfolio will not lose more than $9,900 in the next month.”

VaR is more technical and usually used by institutions or advisors when managing large portfolios.

4. Use of Scenario Planning (Practical Approach)

Scenario planning is a simple, hands-on way to manage risk in personal financial planning. Instead of using formulas, you think through different “what-if” situations that could impact your finances, and plan how you would respond.

You start by asking questions like:

What if I lose my job?
What if the stock market drops 20%?
What if I need to cover a large medical bill?
What if I live 10 years longer than I planned for retirement?

For each scenario, you:

Estimate the impact – How would this event affect your income, savings, or expenses?
Review your current plan – Do you have enough emergency savings? Are you insured? Is your portfolio too risky?
Adjust if needed – Make changes to reduce the damage if that event happens.

Example Scenario: Job Loss

What if I lost my job tomorrow?

Income drops to $0
Monthly expenses are $4,000
Emergency savings = $12,000

In this case, you could cover 3 months of expenses without income. Based on that, you might decide to:

Build savings to cover 6 months
Cut non-essential expenses
Make sure you have short-term disability insurance

Summary Table: Common Risk Calculation Methods

Bottom line:

You don’t need to be a math expert to calculate risk. Start with simple scoring systems and what-if scenarios to understand your exposure. If you’re investing or managing larger assets, tools like standard deviation or VaR may give you deeper insights. The more you understand the numbers behind risk, the more prepared you’ll be to make confident decisions.

Final Thoughts

Risk is a normal part of life and finances. But without a plan, even small risks can turn into big setbacks. That’s why risk management is a key part of any solid financial plan. It helps you prepare for the unexpected, protect what you’ve built, and keep moving toward your goals with more confidence.

If you’re unsure how prepared you are or want a second look at your current plan, working with a financial planner can help you see the full picture. At Boyce & Associates Wealth Consulting, we help people across the U.S. build personalized financial plans that include smart, practical risk management strategies.

Charts & Chat - June 15, 2025

Sun, 15 Jun 2025 14:04:36 GMT

This week, CEO Eric Boyce, CFA discusses:

1. What CEO's are worried about the most

2. equity market valuations, sentiment, high retail investor ownership levels and potential opportunities

3. consumer and producer inflation indicators below expectations; tariff-based inflation likely be on the horizon, but not viewed as recessionary or particularly long lasting

4. consumers have pulled back on spending; soft data strengthening with tariff abatements and better equity markets

5. state of housing - rents may go up later this year; home price growth likely to slow

6. Banks more willing to lend; delinquencies higher, but may have peaked

7. analysis of weakening Chinese demographics, credit quality, household debt to GDP, lending activity and weakness within the real estate and corporate sectors

Charts & Chat - June 1, 2025

Sun, 01 Jun 2025 14:34:19 GMT

This week, CEO Eric Boyce, CFA discusses:

1. changes in the first quarter economic growth report

2. trade and dollar comments following the trade court decision

3. Fed in tough spot; inflation v. growth worry - impact on recession probability

4. Earnings and profits expectations - likely some slowing second half of 2025 but not catastrophic

5. Richmond Fed - slight improvement in expectations, although uncertainty remains a driver

6. housing clearly still stuck in low gear due to affordability

7. analysis of hard data - order, bankruptcies, etc does not reflect crisis situation

8. discussion of strong correlation between gold and dollar

9. energy stocks imply strong pricing heading into summer driving season

10. discussion of dynamic shifts within the S&P 500 index

11. private markets slow getting out of 2025 gate; institutional investments expected to increase, but new activity appears slow

Summer Setup: Valuation Reset and Breadth Improving

Sun, 01 Jun 2025 11:00:02 GMT

Dear Clients and Friends,

As we reflect on the current investment landscape entering April 2025, we want to address the topic of market volatility and how we are managing your portfolio in this environment.

Understanding Current Market Dynamics:

As we step into June, the vibrant energy of summer is palpable, and the financial markets continue to present both opportunities and areas requiring careful consideration. Based on recent economic data and global developments, we have observed several key trends shaping the investment landscape as we approach the midpoint of 2025.

Economic Snapshot

First quarter economic growth was negative largely due to a rash of imports ahead of announced tariffs. News flow coming out of Washington has been fluid and unpredictable, although the aggressive rhetoric associated with the “Liberation Day” announcement in early April seems to have died down a bit. Notwithstanding, uncertainty is the word of the day. More recent “soft data” reflected in consumer sentiment, business surveys and leading economic indicators have been notably weak; meanwhile, we are just beginning to see some of the impact of recently announced tariffs in some of the so-called “hard data”, including orders for durable goods.

In addition, recent announcements from large retailers like Home Depot and Wal Mart reflect a distinct possibility of profit margin pressure ahead for corporate America. This, in turn, could impact an otherwise resilient labor market. With the average tariff on goods trade rising from 2.5% to ~14% or so, we would expect a fair amount of volatility in the data during the coming months.

The service economy, larger in scope than the goods manufacturing sector, has offered a bit of counterweight as of late, and it is certainly not a foregone conclusion that economic growth will be negative in the second quarter. Services will have to overcome slower government spending, investment, and net trade.

We do think the tone and rhetoric with the new administration has likely altered for the time being how other countries view the United States, and it remains to be seen how regional and global alliances will ultimately evolve and shape global economics over the next couple of years.

The risk of tariffs leading to near-term inflation continues to be a central theme. In addition, we saw a dramatic rise in the mentions of “stagflation” in recent corporate earnings calls.

Accordingly, this rather nuanced picture means the Federal Reserve is likely to remain vigilant, carefully assessing data before making significant policy shifts regarding interest rates. The market expects at least two short-term rate cuts this year, although the risk of tariff-induced inflation could delay those moves. The central bank is indeed in a tough spot.

Market Performance & Outlook

Equities: Equity markets have demonstrated resilience, following one of the more volatile months in recent memory. The focus appears to have shifted to larger companies exhibiting strong profitability and financial condition. While broad market indices show mixed and volatile performance year-to-date, some sectors have done reasonably well. In addition, we are also seeing renewed interest in quality dividend-paying stocks, which offer a potential buffer against volatility. International equities have been a bright spot.

Fixed Income: The fixed income market remains range bound, and the yield curve has flattened out a bit. Overall rates remain high, pushed up recently by the modest downgrade of US treasury debt by Moody’s rating service. Longer term rates remain anchored by longer term growth concerns; meanwhile, credit spreads have widened based on economic uncertainty, but do not yet signal elevated concern.

Commodities: Commodity markets remain sensitive to global demand and supply dynamics, as well as geopolitical developments. Gold remains the “go to” asset in a risk-off environment, and energy prices, which are influenced by production and global growth forecasts, remain weak. Diversification within this asset class remains important to helping manage overall portfolio risk.

Key Considerations for Your Portfolio:

1. Quality over Quantity: In this environment, prioritizing companies with strong fundamentals, healthy cash flows, and sustainable business models is paramount.

2. Strategic Diversification: Maintaining a well-diversified portfolio across various asset classes, sectors, and geographies remains your best defense against unexpected market movements. History has proven time and time again that patience and persistence in maintaining your investment policy through volatile times generally leads to very respectable long-term performance.

3. Adaptability: The market continues to be dynamic. We emphasize the importance of regular portfolio reviews to ensure your investments remain aligned with your financial goals and risk tolerance.

Looking Ahead:

As we head into the second half of 2025, we anticipate that uncertainty will persist and that headlines will be almost as important as the fundamentals for risk-based assets. We continue to implement tools like structured investments to help take advantage of volatility when it presents itself, while also providing some downside protection and potential for higher income or enhanced growth over the next few years.

We will have to wait another month or so for the next round of company earnings reports and the first reading of second quarter economic growth. Our team will certainly be monitoring these events, as well as signs of potential Federal Reserve policy changes, geopolitical developments, and trade policy in an effort to find new opportunities and mitigate potential risks for your portfolio.

We are committed to providing you with personalized guidance through every market cycle. Please do not hesitate to reach out if you have any questions or would like to schedule a review of your current investment strategy.

Wishing you a productive and enjoyable start to summer!

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — June 2025

Long-Term Care Part II: Understanding the “Why” Behind Planning

Sun, 01 Jun 2025 11:00:02 GMT

In my previous article, “Caring for an Aging Parent,” we explored how to begin conversations with aging loved ones about their future healthcare needs. In this Part II, we’re diving into the why —why long-term care (LTC) planning is so critical for families today.

Let’s start with some hard truths:

7 out of 10 people over age 65 will require some form of long-term care support.

66% of caregivers tap into their own retirement or savings to cover the cost of care for a loved one.

100% of families are impacted in some way.

The importance of this topic becomes immediately clear: LTC will likely affect every single person reading this . It might be your parents who need care. It could be your spouse’s parents. And, statistically speaking, you or your spouse are very likely to need support in the future .

In our financial planning practice, it’s our responsibility to address topics that can dramatically affect the outcome of decades of hard-earned savings. The good news is, there are many strategies and tools available today that can help you prepare and protect your family’s financial future.

What Are Your Options?

1. Traditional Long-Term Care Policies

Standalone LTC policies were widely used 30 years ago, but many providers have since exited the market or increased premiums to unsustainable levels due to rising life expectancy. For that reason, we do not recommend these policies and won’t spend time reviewing them here.

2. Life Insurance with Long-Term Care Benefits

For older clients, we often recommend life insurance policies that provide LTC coverage if needed—but also offer a death benefit if care is never used. This structure ensures that your premiums are not lost, no matter what happens.

3. Hybrid Policies

These insurance products combine life insurance with long-term care features. They allow the policyholder to access a % of the death benefit while still alive to pay for caregiving services—such as in-home care, assistance with daily activities, or transportation to appointments. Hybrid policies offer flexibility and peace of mind.

4. Annuities with Long-Term Care Ride

Annuities have significantly improved in recent years. Today, certain annuities can double your monthly income for a set period if you experience a qualifying LTC event. For example, if you're receiving $6,000 per month in retirement income and meet the criteria, your income could increase to $12,000 per month for a period of time to help cover care costs.

Be Proactive, Not Reactive

These are just a few of the tools available to help you p lan ahead for the high costs of healthcare and caregiving later in life. The key is to start planning early—before a crisis hits . By doing so, you protect not just your savings, but also your independence and the well-being of those you love.

If you haven’t yet talked about LTC planning with your family or financial advisor, now is the time. Because when it comes to long-term care, it’s not just about protecting assets—it’s about preserving dignity, choice, and peace of mind.

Charts & Chat - May 27, 2025

Mon, 26 May 2025 21:42:24 GMT

This week, CEO Eric Boyce, CFA discusses:

1. changing estimates of the hard versus soft landing for the economy & status of leading economic indicators

2. elevated inflation expectations and declining consumer sentiment

3. the impending impact of higher tariffs on goods vs services spending and economic growth

4. most recent 20-year treasury auction resulted in higher yields due to lower international demand

5. retail stock investors more optimistic amidst decelerating corporate earnings and cash flow

6. valuation and growth compelling in the private sector, as deal flow slowly improves

7. continued discussion on national debt and unsustainable deficits

8. Detail on housing market trends - starts are down, supply is up, prices at six month low

9. Home builder sentiment remains weak, with affordability issues persistent

10. Tremendous equity ($34T) tied up in Real Estate

Portfolio Diversification: What Every Investor Should Know

Wed, 21 May 2025 17:53:05 GMT

Diversifying your financial portfolio is a foundational strategy in financial planning to help reduce investment risk and support more consistent returns over time. Instead of relying on a single investment type, diversification involves spreading your money across different asset categories that perform differently under various market conditions.

Below is everything you need to know about portfolio diversification. Read on.

What Does a Diversified Portfolio Really Mean?

A diversified portfolio includes a variety of investment types that respond differently to economic changes. The goal is to reduce the impact of any single investment performing poorly.

The principle is often summed up by the saying, “Don’t put all your eggs in one basket.” By spreading investments across different categories lowers the chance that a single event will hurt your entire portfolio.

Diversification can be achieved across several dimensions:

Asset Classes – Mixing stocks, bonds, real estate, and other investments.
Sectors – Investing in a range of industries like healthcare, technology, energy, and consumer goods.
Geographies – Including both domestic and international investments.
Time Horizons – Balancing short-, medium-, and long-term investment vehicles.

What Assets Are Best for Diversifying a Portfolio?

Choosing the right mix of assets is one of the most important parts of building a diversified portfolio. Below are commonly used asset types that can be combined based on your personal risk tolerance and financial objectives:

Stocks – Provide growth potential and can include both U.S. and international companies.
Bonds – Offer more stability and income through interest payments; options include corporate, municipal, and treasury bonds.
Mutual Funds and ETFs – Allow exposure to many different assets within a single investment product.
Real Estate – Can provide long-term growth and income through property value appreciation or rental income.
Cash and Equivalents – Includes CDs (Certificate of Deposit), money market funds, and treasury bills; valued for their liquidity and lower risk.
Commodities and Precious Metals – Such as gold or oil, often used to hedge against inflation or market declines.
Cryptocurrencies – High-risk, high-volatility assets that may offer growth and diversification if used cautiously.

What Is a Good Portfolio Mix?

A balanced portfolio mix depends on factors like age, financial goals, and how much risk you’re comfortable taking.

Someone in their 30s, focused on long-term growth, might hold 80% in stocks and 20% in bonds or alternatives. A person closer to retirement may shift toward 40% in stocks and 60% in bonds and income-producing assets.

The mix should include a combination of growth-oriented investments—such as individual stocks, equity mutual funds, or ETFs focused on sectors like technology or healthcare—and income-generating or stability-focused assets. These might include government or corporate bonds, dividend-paying stocks, or real estate investment trusts (REITs).

For example, someone aiming for long-term growth might invest in an S&P 500 index fund for broad equity exposure, while also holding high-yield bonds or dividend-focused ETFs to create a more stable income stream.

Regularly rebalancing your portfolio—say, once or twice a year—ensures that as market values shift, your asset allocation still reflects your original risk tolerance and financial goals.

Portfolio Allocation Strategies

Effective asset allocation helps align your investments with your financial goals and tolerance for risk. This section explores practical models and methods for structuring a balanced portfolio.

What Is The Perfect Portfolio Allocation?

There is no universal answer to what makes a perfect portfolio allocation. However, several approaches offer useful frameworks for tailoring your investments to your goals and comfort with risk.

One of the most widely used is the age-based model , such as the 60/40 rule , which suggests allocating 60% of your portfolio to stocks and 40% to bonds. As investors get older and seek more stability, they often reduce stock exposure and increase holdings in fixed-income assets.

Another approach is risk-based allocation , where investments are chosen based on how much market volatility you can tolerate. For example, a more conservative investor might favor a heavier bond weighting, while an aggressive investor might tilt toward equities and alternatives.

Modern Portfolio Theory (MPT) further refines this process by focusing on how investments interact. It recommends building a portfolio that maximizes expected returns for a given level of risk, based on how asset prices move in relation to one another.

Liquidity and Fund Selection in Diversification

Liquidity plays a critical role in how quickly you can access your money when needed. Understanding which funds to choose and how many to hold can improve flexibility without sacrificing performance.

What Is A Highly Liquid Investment?

Liquidity refers to how quickly and easily an asset can be converted into cash without losing value. Highly liquid investments include:

Cash and checking accounts
Savings accounts
Money market funds
Short-term government bonds
Exchange-traded funds (ETFs)

These assets are commonly used in portfolios to maintain flexibility, cover short-term needs, or act as a financial cushion during market declines.

How Many Funds Should Be In A Diversified Portfolio?

While there’s no hard rule, holding between 5 to 10 funds can be a good starting point for most investors. This range allows for exposure to different asset classes and markets without becoming overly complex.

Too many overlapping funds can lead to over-diversification, sometimes called " diworsification ." This can dilute potential returns and make it difficult to manage the portfolio effectively. Instead, focus on including funds that complement rather than duplicate each other.

Popular Investment Rules for Portfolio Diversification

Several well-known rules of thumb can help guide your decisions on returns, risk, and fund concentration. These rules aren’t foolproof, but they offer helpful frameworks for evaluating your strategy.

What is the 10-5-3 rule of investment?

This rule provides a simple set of expectations for long-term average returns:

10% return from stocks
5% return from bonds
3% return from cash or cash equivalents

While these numbers aren’t guaranteed, they offer a guideline for planning and setting realistic performance expectations.

What is the 75-5-10 rule for diversified funds?

Often applied in fund classification, this rule refers to certain mutual fund requirements:

75% of assets must be invested in securities
5% is the maximum investment in any one issuer
10% is the maximum ownership of voting securities in any one company

Though rooted in regulation, this rule also supports sound diversification by limiting concentration in individual investments.

What is the 3-5-7 rule of investing?

This guideline outlines typical risk-adjusted returns:

3% for cash and equivalents
5% for bonds
7% for stocks

It can be used to set return expectations and evaluate whether a portfolio’s asset mix aligns with your risk tolerance and time horizon.

What is the 5% portfolio rule?

This rule advises that no single investment should make up more than 5% of your total portfolio. It’s a way to manage risk and prevent one poorly performing asset from having an outsized impact on your overall returns.

Indexing and Stock Concentration

Index funds and individual stocks are both key components of a diversified portfolio. This section covers how much index exposure is appropriate and how many stocks provide sufficient diversification.

How Much Of My Portfolio Should Be In The S&P 500?

Broad-market exposure through an index fund tracking the S&P 500 is a common starting point for many investors. It provides immediate diversification across large-cap U.S. companies and reflects overall market performance.

Depending on your financial goals and risk tolerance, allocating 20% to 40% of your portfolio to a broad-market ETF or mutual fund tied to the S&P 500 is a typical range.

Younger investors with longer time horizons might lean toward the higher end, while more conservative or older investors may aim lower, incorporating more fixed-income assets or international exposure.

How Many Stocks Is Too Many?

When building a portfolio of individual stocks, owning 20 to 30 different companies across multiple sectors is often enough to reduce unsystematic risk without becoming difficult to manage. Going beyond 30 stocks generally leads to diminishing diversification benefits.

More isn’t always better—holding too many similar stocks can replicate sector-specific risks and make the portfolio harder to track and rebalance. The key is to maintain variety without unnecessary complexity.

Famous Investors and Diversification

Looking at how high-profile investors approach diversification offers valuable insight. Their strategies reveal the balance between focus and risk management in portfolio construction.

Does Warren Buffett diversify his portfolio?

Warren Buffett has often spoken against over-diversification, especially for those who deeply understand what they’re investing in. His approach tends to favor concentrated positions in companies he believes are undervalued and have long-term competitive advantages.

That said, his holding company, Berkshire Hathaway , owns a range of businesses across multiple industries, which offers indirect diversification even if the equity investments are more focused.

Why did Bill Gates diversify his portfolio?

After stepping away from day-to-day operations at Microsoft, Bill Gates shifted his investments across different sectors like healthcare, agriculture, and clean energy.

Through his investment firm, Cascade Management LLC, he has taken significant stakes in companies like Republic Services (waste management), Deere & Co. (agricultural machinery), and Canadian National Railway (transportation and infrastructure). Gates has also invested heavily in TerraPower, a nuclear innovation company he co-founded, and Breakthrough Energy Ventures, which backs clean energy startups.

In real estate, his portfolio includes large farmland holdings, making him among the largest private owners of farmland in the United States .

Retirement Focus – How to Diversify a 401(k)

Retirement accounts require a strategic blend of growth and stability over time. Learn how to build a diversified 401(k) using available fund options and rebalancing techniques.

How should I diversify my 401(k)?

A 401(k) plan offers various options to build a diversified retirement portfolio. For simplicity and long-term balance, many investors choose target-date funds (TDF) , which automatically adjust asset allocation as you approach retirement age.

For those managing their own allocations, combining index funds, bond funds, and international options can provide broad coverage. It's also important to avoid overconcentration in company stock, especially if your employer offers it as a 401(k) investment choice.

To keep your allocation aligned with your goals, consider rebalancing quarterly or at least once a year. This process involves reviewing your asset mix and making small adjustments to stay on track.

Protect Your Investment And Financial Future Today

Building a diversified financial portfolio is a foundational step in managing risk and achieving long-term growth.

The right mix will depend on your individual financial situation, investment timeline, and comfort with risk. Regularly reviewing and adjusting your portfolio ensures that it continues to support your evolving objectives.

If you’re uncertain about your next financial move, consider speaking with a professional. Schedule a consultation with Boyce & Associates Wealth Consulting to gain clarity and direction. Whether you're planning for retirement, rebalancing your investments, or just getting started, professional guidance can make all the difference.

Book a consultation today to take the next step toward a stronger financial future.

FAQs

What’s the difference between diversification and asset allocation?

Diversification refers to spreading your investments across various securities to manage risk. Asset allocation is the strategy of deciding what percentage of your portfolio goes into each asset class, such as stocks, bonds, and cash, based on your goals and risk tolerance.

How often should I rebalance my portfolio?

Rebalancing is typically done once or twice a year, but it may also be necessary when any asset class drifts more than 5–10% from its target allocation. This helps maintain your desired risk level and investment strategy over time.

Can diversification eliminate all investment risk?

Diversification can reduce unsystematic risk—risks specific to individual assets—but it cannot eliminate market-wide or systematic risk. While it helps manage volatility, some risk will always be present in investing.

Is international diversification still recommended?

Yes, including international assets can reduce exposure to region-specific downturns and offer access to global growth opportunities, maybe even more so during periods of trade tension. When the current administration imposed tariffs on imports from China. Certain US sectors like manufacturing and agriculture faced increased costs and retaliatory tariffs.

By holding international assets, investors could reduce their exposure to the U.S.-specific policy risks and benefit from growth in markets less affected by those tariffs. Diversifying globally helps cushion the impact of protectionist policies and ensures you're not overly reliant on one country’s economic performance or political climate.

How can I measure the effectiveness of my diversification strategy?

You can evaluate your diversification strategy using principles from Modern Portfolio Theory (MPT), which emphasizes building a portfolio that maximizes expected return for a given level of risk. MPT suggests that combining assets with low or negative correlation—like stocks and bonds, or domestic and international equities—can reduce overall portfolio volatility without sacrificing returns.

To assess effectiveness, look at your portfolio’s efficient frontier: are you getting the best possible return for the amount of risk you’re taking? Tools like the Sharpe ratio help measure this by comparing your portfolio’s excess return to its standard deviation. If your portfolio sits close to or on the efficient frontier, that’s a strong indicator your diversification is optimized.

Charts & Chat - May 18, 2025

Sun, 18 May 2025 13:58:51 GMT

In the latest Charts of the Week, CEO Eric Boyce, CFA discusses:

1. tariffs are higher overall despite the noise about levels about "deals" - watch the hard economic data in the coming months

2. producer prices witniessing margin compression

3. retail sales mixed

4. 2nd quarter GDP looking like 2.5% according to Atlanta Fed GDPNow - could be the best quarter of year, but lots of data due to be released next six weeks...

5. some credit indicators weakening; consumer is reasonably good shape.

6. tourism at 10% of GDP - is important

7. debt levels are unsustainable and will need to be address in congress/fiscal policy at some point

8. equities strong, but P/E multiples moving back higher as well - increases risk if economic data/estimates drop considerably due to economic slowdown

May FOMC Meeting: Boyce & Associates Wealth Consulting Shares Why Interest Rate Moves Matter for Retirement and Investing

Tue, 13 May 2025 17:45:24 GMT

With the Federal Reserve maintaining rates at 4.25%–4.5%, Boyce & Associates Wealth Consulting explains how shifts in monetary policy may significantly shape investment strategy, wealth protection, and retirement planning in 2025.

The Federal Open Market Committee (FOMC) voted on May 7 to maintain the target range for the federal funds rate at 4.25% to 4.50% —a decision that may seem uneventful on the surface, but carries weighty implications for investors, retirees, and wealth managers alike.

In an environment marked by high economic uncertainty, mixed signals in inflation, and looming risks from tariffs and global trade dynamics, Boyce & Associates Wealth Consulting believes that understanding interest rate policy is now a non-negotiable component of sound financial planning.

As policymakers tread cautiously, Boyce & Associates Wealth Consulting outlines five key reasons why changes in interest rates—and the Fed’s future stance—should remain top-of-mind for Americans managing their retirement or investment portfolios in 2025.

1. Income Stability in a Shifting Fixed Income Landscape

Interest rates directly affect bond markets, especially for retirees relying on fixed-income instruments. When rates rise , the value of existing bonds typically falls—but new bonds offer more attractive yields.

For retirees on a fixed income, optimizing bond ladder strategies or short-duration instruments can help preserve income predictability in a volatile cycle. With the Fed’s cautious pause and the market still pricing in one to three cuts by year-end, retirees need to anticipate the ripple effects.

2.Retirement Affordability and Credit Sensitivity

Interest rates influence more than just markets —they also determine what retirees pay for major financial moves. From home refinancing and HELOCs to credit card debt and auto loans, higher borrowing costs can erode retirement cash flow.

For pre-retirees downsizing or relocating, even a 0.25% rate differential can result in tens of thousands in extra payments over a 15–30 year period. The Fed’s current stance signals ongoing caution , with Fed Chair Jerome Powell emphasizing uncertainty tied to tariff policies and labor market strength.

3.Inflation Protection and Real Return Considerations

While inflation has cooled from pandemic-era highs, it remains elevated. Fed Governor Michael Barr warned on May 9 that tariffs could lead to higher inflation in the United States and lower growth both in the United States and abroad.

This tug-of-war between cost pressure and economic deceleration places added urgency on protecting the real (inflation-adjusted) returns of retirement portfolios.

4.Equity Market Volatility and Sector Shifts

Equity markets are sensitive to rate policy , particularly as earnings expectations and valuation multiples shift. Higher-for-longer rates may weigh on high-growth tech stocks, while boosting value-oriented sectors such as financials and industrials.

For long-term investors, especially those approaching retirement, avoiding overexposure to rate-sensitive sectors becomes a key portfolio construction consideration. At the same time, volatility linked to policy surprises creates both risks and rebalancing opportunities.

5.Retirement Withdrawal Planning in a Dynamic Environment

Effective withdrawal strategies depend not only on portfolio performance, but on interest rate assumptions. Lower rates reduce safe withdrawal rate estimates, forcing some retirees to consider more conservative distributions or explore guaranteed income products.

With policy still data-dependent and the next FOMC meetings (June 18, July 30, September 17) potentially altering the rate trajectory, retirees should stress-test their withdrawal plans against multiple scenarios, including lower returns and higher inflation outcomes.

“Too often, we see clients underestimate the indirect impact interest rates can have on everything from loan repayments to portfolio risk exposure,” said Eric Boyce, Founder and Chief Investment Officer at Boyce & Associates Wealth Consulting. “Monetary policy doesn’t just shape markets—it shapes lives, especially for those entering or already in retirement.”

With a conservative investment philosophy and a personalized approach to financial guidance, Boyce & Associates Wealth Consulting remains focused on helping clients protect, grow, and transfer wealth with confidence—even amid policy and market uncertainty.

About Boyce & Associates Wealth Consulting

Boyce & Associates Wealth Consulting (Boyce & Associates Wealth Consulting) is a fee-based investment advisory firm registered with the SEC. Based in Cedar Park, Texas, they provide conservative financial planning and investment services to individuals, families, trusts, estates, non-profits, and business owners. Known for its disciplined approach and conservative philosophy, Boyce & Associates Wealth Consulting is dedicated to delivering consistent, client-focused results. For more information, visit boycewealth.com .

Charts & Chat - May 11, 2025

Sun, 11 May 2025 15:12:48 GMT

This week, CEO Eric Boyce, CFA discusses:

1. expected slowdown in economic growth, earnings

2. drop in container shipments from china; impact on tariffs on S&P 500, small business

3. country impact from tariffs; how china is pivoting

4. impact by sector; expectations and response from US companies

5. observations on credit, productivity, activity ahead of the tariffs

6. several data points on how consumers are planning for the next 6-9 months

Market Minutes - May 6, 2025

Tue, 06 May 2025 14:34:50 GMT

CEO Eric Boyce, CFA discusses the recent economic news and investment market activity over the past week, and shares his thoughts on tariffs, valuation, and volatility.

Mid-Year Crosscurrents: Policy, Earnings, and Rates

Thu, 01 May 2025 11:00:04 GMT

Dear Clients and Friends,

The last month has witnessed a virtual sea of change. Starting with the announced tariffs as part of the “Liberation Day” initiative on April 2nd, and including other impromptu and unexpected policy moves, we have observed in short order the sort of volatility and variable changes in expectations which haven’t been seen in quite a while.

What We are Watching For:

Economic Data Releases: Keep an eye on upcoming or recently released economic data (e.g., inflation figures, employment reports, GDP growth). Surprises or deviations from expectations can fuel volatility.
Federal Reserve Policy: Any hints or announcements regarding the Federal Reserve's monetary policy, particularly interest rate decisions and forward guidance, are likely to impact market volatility. Markets are likely going to be quite sensitive to any signals about future rate adjustments.
Geopolitical Events: Global events, especially those with economic or political ramifications (e.g., ongoing conflicts, trade tensions, political instability in key regions), can introduce significant volatility.
Corporate Earnings Season: As we are in the middle of earnings season for the first quarter of 2025, corporate earnings reports and future outlook statements will be closely watched and can lead to stock-specific and broader market volatility.

To address the many questions investors have about volatility, I recently published a Charts of the Week which provides some meaningful long term historical perspective on the notion of “volatility”.

Some General Observations:

Normal Market Behavior: Market volatility is an inherent characteristic of financial markets. It reflects the dynamic interplay of investor sentiment, economic data, and global events. Periods of both high and low volatility are to be expected over the long term.
Not Necessarily Negative: While sharp drops can be unsettling, volatility also presents potential opportunities for investors. Price swings can create chances to buy assets at lower prices or to rebalance portfolios strategically.
Investor Sentiment Indicator: Increased volatility often signals uncertainty or heightened emotions among investors, sometimes referred to as a "fear index" (like the VIX).

Key Specific Takeaways:

Equity markets were almost always higher 1 year later following the worst single-day percentage declines in history, and markets generally exhibited very respectable annualized performance over the subsequent 3 and 5 years. .
A drop of 5% in the S&P 500 generally happens three times a year; a 10% drop happens roughly every 16 months (*), and 20% drops every 5.5 years.
Over the last 99 years, the S&P 500 has witnessed a positive return 73 times for an average annual return of 21.5%, and a negative return 26 times with an average decline of 13.4%.
Bull markets are MUCH more prevalent than bear markets, and generally last much, much longer.
Stocks often witness meaningful intra-year declines yet end the year with a resoundingly positive return.

What is the Impact on Investors:

Anxiety and Emotional Decisions: High volatility can trigger anxiety and lead to impulsive investment decisions, such as selling low during a downturn. It's crucial to stick to a long-term plan and avoid emotional reactions. Since the end of 1979, if you had missed just the 5 best days in the S&P 500, you would have experienced a 38% drop in total return. If you missed the best 30 days, you would have missed out on almost 84%!
Short-Term vs. Long-Term: Investors with shorter time horizons might be more sensitive to volatility, while long-term investors may view it as an opportunity. Consider your individual financial goals and time horizon. The probability of a single-day positive return in the S&P 500 is about 53%; over 1 year that is over 77%, which goes up considerably over time. Over 10 years, the probability of positive annualized returns is over 97%. Therefore, time is a wonderful diversification tool.

Managing Volatility:

Diversification: A well-diversified portfolio across different asset classes (stocks, bonds, real estate, etc.) can help mitigate the impact of volatility in any single area.
Long-Term Perspective: Focusing on your long-term investment goals rather than short-term market swings is crucial.
Regular Rebalancing: Periodically rebalancing your portfolio can help maintain your desired asset allocation and manage risk during volatile periods.
Dollar-Cost Averaging: If you are regularly investing, dollar-cost averaging (investing a fixed amount at regular intervals) can help reduce the risk of buying high during volatile periods.
Staying Informed (but not overreacting): Keep abreast of market news and economic developments, but avoid excessive focus on short-term noise that can lead to emotional decisions.

We are here to help you understand your risk tolerance, develop a suitable investment strategy, and provide guidance during these volatile times.

In conclusion, market volatility is a normal part of investing. Understanding its potential causes and impacts, and having a well-thought-out investment strategy, are key to navigating these periods successfully. Remember to stay informed, remain disciplined, and focus on your long-term financial goals.

Sincerely,

Eric Boyce, CFA

President & CEO

(*) Data sourced from First Trust Portfolios

Newsletter — May 2025

The Good, The Bad, and The Ugly of 529’s

Thu, 01 May 2025 11:00:04 GMT

It is no secret that the cost of college is rising with no end in sight, requiring further planning, strategy, and saving. The Section 529 funds are very common recommendations for families saving for college. While this is great for some families, there are good, bad and ugly aspects of these plans and some families will benefit more from other strategies.

The Good: The biggest benefit to a 529 fund is the potential tax savings. The growth of the investments within the fund, and the withdrawals are all tax free when used for qualified education expenses (as defined in the IRC). Another benefit is the new 529 laws have expanded qualified education expenses to include trade schools and other forms of higher education. However, there are also several shortcomings.

The Bad: 529’s often have very limited investment options, many of which are age-based investing, often not being as adjustable to risk tolerance and preference. The family does not get a lot of discretion. Another shortcoming is they have to be declared on the FAFSA and can lower your need based aid.

The Ugly: If 529 funds are not used for education, they are stuck in this account. The only options are to change the beneficiary to another family member or withdraw and pay income tax on growth, as well as a 10% penalty. While there is a new provision to roll leftover balances into a Roth IRA, read the fine print. There are a lot of strings and checkboxes attached to this provision.

In conclusion, while these vehicles are still the best strategy for some families, there are other vehicles referred to as tax or asset advantaged assets that are more beneficial for other families. These assets do not have many of the withdrawal constraints and limitations of 529’s. These assets can often be sheltered from the FAFSA, potentially increasing your need-based aid. Every family needs to understand which strategy will be most beneficial for their family. Contact Boyce & Associate today for expert recommendations on which strategy is best for your family.

Market Minutes - April 27, 2025

Sun, 27 Apr 2025 14:21:32 GMT

CEO Eric Boyce, CFA offers some additional thoughts on recent market activity, the near term drivers of market performance, the bull and bear case for 2025, as well as the significance of recent economic data and other date we are watching closely.

Charts & Chat - April 27, 2025

Sun, 27 Apr 2025 14:16:24 GMT

This week, CEO Eric Boyce, CFA discusses:

1. What to expect in the GDP numbers this week, and the notable rise in mentions of "uncertainty" and "tariffs" in the new Fed composite survey

2. Hard data still holding up amidst the decline in soft data

3. Outlook for orders, capital spending declining; meanwhile prices paid rising in anticipation of tariffs

4. Inventories rising in advance of tariffs - likely a tailwind for the second quarter, but a headwind for the second half of the year, given the current rhetoric

5. Regional Fed service sector data also showing some weakness...

6. Dollar weakness (off trough, though) - what are the implications

7. Gold strength likely to persist

8. S&P 500 earnings estimates coming down ~15% - an analysis of the current adjustments

9. Evidence that markets have reasonable upside following episodes where the market is down 5% over two days (recent occurrence)

Charts & Chat - April 20, 2025

Sun, 20 Apr 2025 15:10:54 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Issues on trade related to China and the length of negotiation for deals

2. the potential impact on small business & on capital spending

3. Soft data is certainly soft at this point due to global uncertainty...among consumers, business owners and investors

4. Some hard data - retail sales, regional Fed surveys - do not yet reflect the increasing impact of tariffs

5. US dollar weaker - implications for trade, bond yields

6. negative wealth impact of stock declines, where is valuation, earnings estimates falling as expected

What is a Business Exit Strategy for Entrepreneurs? Everything You Need to Know

Wed, 16 Apr 2025 21:29:44 GMT

Key Takeaways

Exit Strategies Aren’t One-Size-Fits-All: Each option—whether it's a sale, IPO, or succession—has its own pros and cons depending on your goals and business model.
Investor Confidence Relies on Exit Planning: A clear, strategic exit plan reassures investors and makes your business more attractive to potential buyers.
Legal and Financial Readiness Is Crucial: Incomplete records, legal issues, or unclear ownership can derail even the best exit plans.
Market Timing Affects Outcomes: Economic conditions, buyer demand, and industry trends can significantly impact valuation and deal success.
Operational Structure Impacts Transferability: Businesses with well-documented systems, contracts, and teams in place are easier to transition and command better offers.

What is a Business Exit Strategy for Entrepreneurs? Everything You Need to Know

Every entrepreneur starts their journey with energy and vision, but what happens when it's time to move on? Whether it's selling the business, retiring, or pivoting to a new venture, having a business exit strategy in place is essential.

A business exit strategy is a structured plan that outlines how a business owner will transfer ownership or liquidate their stake in a company. A good exit plan ensures that the transition is smooth, financially sound, and aligned with long-term goals.

What is the Best Exit Strategy for a Small Business?

For small business owners, planning an exit strategy may feel like a distant concern—something to worry about only when retirement is on the horizon or when things take an unexpected turn. But in truth, preparing a business exit strategy early gives entrepreneurs more control over their future and helps maximize value when the time comes to move on.

The best exit strategy for a small business depends on a variety of factors, including your long-term goals, the nature of your business, and your financial expectations. Whether you hope to pass the company down to a trusted employee, sell it for a profit, or shut it down completely, having a well-thought-out plan can ease the transition and protect everything you’ve built.

Overview of 6 Common Exit Strategies

When it's time to leave your business, there are multiple ways to do it. Some strategies involve selling the business, others involve transferring ownership internally, and some focus on closing operations completely (external exit strategies).

Each of these types of exit strategies has implications for your financial outcome, your legacy, and the people who depend on your business.

Below is an in-depth look at the most frequently used strategies among small business owners:

Internal Exit Strategies

1. Management Buyout (MBO)

In a management buyout, the existing leadership team purchases the business from the owner. This is often a smoother transition because the buyers already understand the operations and culture of the company.

This is a solid option for owners who want to preserve the company’s identity and reward loyal leadership.

Example:

In 2013, Michael Dell, founder of Dell Inc., partnered with Silver Lake Partners to buy out shareholders for $25 billion , taking the company private. This MBO allowed Dell to restructure the company away from public market pressures.

2. Selling to a Family Member or Key Employee

Some entrepreneurs prefer to keep the business in trusted hands—whether that’s a family member or a long-time employee. This type of succession often reflects personal values and a desire to protect the company’s legacy.

Proper planning, clear documentation, and open communication are essential to make this strategy work smoothly.

Example:

Jamie Parker, owner of a Cartridge World franchise in Christiansburg, Virginia, transitioned her business to her daughter , Ieshia Ahmed. Ieshia, who had been involved in the business from a young age, stepped in to help during the pandemic, ensuring continuity and preserving the family's legacy.

External Exit Strategies

3. Mergers and Acquisitions (M&A)

One of the more lucrative and complex business exit strategies, mergers and acquisitions involve selling your company to—or combining it with—another business.

This approach can generate a strong financial return, especially if your business offers something unique, like a loyal customer base, intellectual property, or market share.

This strategy works well when there’s a strategic buyer interested in leveraging your assets to grow their own business.

Example:

In April 2025, accounting firms Baker Tilly and Moss Adams announced a $7 billion merger , creating the sixth-largest CPA advisory firm in the U.S. This merger, backed by private equity firms Hellman & Friedman and Valeas Capital Partners, aims to serve mid-sized businesses and private firms more effectively.

4. Initial Public Offering

Though relatively rare for small businesses, an Initial Public Offering or IPO is an option worth understanding. This strategy involves offering shares of your company to the public through a stock exchange.

The process requires rigorous financial documentation, legal support, and often years of preparation.

Due to its complexity and scale, an IPO is typically reserved for high-growth businesses with strong investor interest.

Example:

In April 2025, Chinese tea company Chagee raised $411 million through an IPO on the New York Stock Exchange, pricing shares at $28 each. The company, operating over 6,000 teahouses globally, used the IPO to expand its international presence.

5. Liquidation

In a liquidation, the business owner closes the company and sells off its assets. While not the most profitable path, it may be appropriate when other exit options aren’t feasible.

Liquidation may be the right choice for owners looking to exit quickly or those in declining industries.

Example:

Toys "R" Us, once a leading toy retailer, filed for bankruptcy and liquidated its assets in 2018 . The company sold off inventory, properties, and other assets to repay creditors, ultimately closing all its stores.

6. Strategic Sale or Acquisition

This strategy involves selling your business to a competitor or another firm that sees strategic value in your brand, customer list, or intellectual property.

Unlike standard M&A, strategic buyers are often willing to pay a premium for access to your market position or proprietary assets.

This approach works best when your business fills a critical gap or provides a strong synergy for the buyer.

Example:

In 2017, Amazon acquired Whole Foods Market for $13.7 billion. This strategic acquisition allowed Amazon to enter the brick-and-mortar grocery sector and expand its market reach.

Why Having an Exit Strategy is Important for Investors

A solid business exit strategy is a major point of interest for investors as well. Whether you're seeking funding from venture capitalists, angel investors, or strategic partners, having a clear exit plan signals that you understand the full lifecycle of a business.

Maximize Their Returns

An exit plan helps investors maximize their ROI by ensuring that the business is positioned for a sale or transition at the highest possible value. Through careful planning, investors can time their exit during favorable market conditions, enhance the business's attractiveness to potential buyers, and implement tax-efficient strategies that preserve more of their earnings.

Moreover, an exit plan provides flexibility by identifying multiple exit routes—such as those mentioned above—allowing investors to pursue the most lucrative option. It focuses business efforts on key value drivers to make the enterprise more appealing to high-quality buyers or investors.

Limiting Business Losses

Business owners can stabilize operations, secure key customer relationships, and maintain consistent revenue streams during the exit process.

This planning also allows for better negotiation with buyers or successors, avoiding undervaluation caused by last-minute decisions or distress sales. Additionally, it helps address liabilities, settle debts, and resolve operational inefficiencies that could otherwise reduce the final value of the business.

Optimizing Taxes

Exit strategies often include tax planning tools that help minimize the taxes owed on the sale or transfer of the business. For instance, business owners can structure the deal as an asset sale or stock sale depending on which option offers better tax advantages.

They can also take advantage of tax deferral strategies, exemptions, or deductions such as Section 1202 (for Qualified Small Business Stock ) or installment sales to spread out capital gains taxes over time.

Planning ahead allows for these strategies to be implemented effectively, helping business owners retain more of their profits from the exit.

When is the Right Time to Start Planning an Exit Strategy? Reactive vs Proactive Exits

Proactive Exits

A proactive exit strategy lets you stay in control, set the terms, and choose the best time to maximize value. When your team is strong, systems run smoothly, and you trust your employees, you're in a better position to get the most from your exit. Planning ahead gives you the most leverage.

Reactive Exits

A reactive exit—triggered by burnout, illness, or unexpected market changes—can leave you scrambling and vulnerable to accepting a subpar deal.

Ideally, a solid business exit strategy is reviewed annually and adjusted based on business evolution and market conditions.

Reasons Founders Avoid Talking About Exit Strategies

Despite the clear benefits, many business owners shy away from discussing exit strategies. This hesitation is more common than you might think, and it often stems from a mix of personal emotions and misconceptions.

Emotional Ties to the Business

For many founders, their business is more than a source of income—it’s a reflection of their identity, hard work, and vision. The idea of letting it go can feel like giving up a part of themselves. That emotional connection can delay or derail exit planning entirely.

Fear of Appearing Uncommitted

Some entrepreneurs worry that talking about exit plans too early might make them seem less committed to the business. They fear it may send the wrong signal to employees, partners, or investors. However, seasoned stakeholders often view an exit plan as a responsible move—not a red flag.

Misunderstanding Exit Planning as Giving Up

Another common misconception is that planning an exit is equivalent to admitting failure. In reality, every business journey eventually concludes, and the most successful entrepreneurs are those who prepare for that conclusion. Exit planning isn’t about giving up—it’s about being prepared.

How to Plan and Prepare for a Business Exit

No matter which type of exit strategy you choose, successful implementation depends on thoughtful planning and thorough preparation. Many business owners underestimate how much work is involved in getting the company ready for a transition.

Get Your Financials in Order with Accurate Housekeeping and Documentation

Buyers and successors will want to see clean, organized financials. This includes up-to-date profit and loss statements, balance sheets, tax records, and cash flow statements. You'll also need to ensure proper documentation for debts, assets, leases, and inventory.

A professional financial audit might not be required, but having reviewed financials from a certified accountant adds credibility and builds trust with potential buyers.

Streamline Your Operations for a Smooth and Attractive Transition

Your operations should be as efficient and documented as possible. This includes written processes, employee roles, client contracts, supplier relationships, and technology systems. A business that runs smoothly without the owner's daily involvement is more attractive to buyers and easier to transfer.

Address Legal and HR Issues Early to Avoid Last-Minute Surprises

Legal readiness is just as important. Review contracts, ownership agreements, licensing, intellectual property protections, and compliance matters. HR policies should be updated, and employment agreements should be clearly written.

If there are any potential legal issues—disputes, lawsuits, or tax matters—it’s best to resolve them before entering exit negotiations.

Preparation increases the likelihood of a successful and profitable exit while reducing stress and delays along the way.

Business Valuation and Financial Planning

Knowing the value of your business is a critical part of any business exit strategy. If your valuation is too high, it may scare off potential buyers; too low, and you risk leaving money on the table.

In succession scenarios, valuation also affects the feasibility of internal buyers being able to finance the deal.

Methods of Valuation

Here are a few common approaches:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): This is a widely used metric for assessing operating profitability and is often used in M&A transactions.
Comparable Market Analysis (Comps): Looks at the sale prices of similar businesses in your industry and region.
Discounted Cash Flow (DCF): Projects future cash flows and discounts them to present value, often used for high-growth or tech businesses.

Each method offers different insights, and the best approach often combines several for a fuller picture.

Legal and Regulatory Considerations

Overlooking legal obligations or mismanaging compliance can lead to delays, reduced valuations, or even failed deals. Whether you're selling to an external buyer or passing the company internally, the legal groundwork must be solid.

Compliance Risks and Regulatory Clearance

Businesses must be in compliance with local, state, and federal regulations before they can be sold or transferred.

This includes licenses and permits you need from the Department of Licensing and Regulation .

If your business needs to erect new buildings, or establish industrial zones, understanding zoning laws is a must.

Businesses operating in Texas are subject to various tax obligations , plus other industry-specific standards. In some cases, especially in regulated industries like healthcare or finance, transactions may require formal clearance from regulatory bodies.

Failure to resolve these issues in advance can raise red flags during due diligence and potentially derail the transaction.

Intellectual Property and Contractual Obligations

Intellectual property laws and codes are the basis for a business’s most valuable assets. Whether it's trademarks , patents, copyrights, or proprietary software, it's crucial that these assets are properly documented and protected. Ownership rights should be clear and transferrable to avoid complications such as ownership disputes, licensing conflicts, infringement claims, or valuation issues.

Additionally, existing contracts with vendors, clients, or partners need to be reviewed. Some agreements may include change-of-ownership clauses, which require notification or consent prior to sale. Ensuring contract compliance protects the business from liability and supports a smoother transfer.

Due Diligence Preparation

Due diligence is a comprehensive review conducted by potential buyers or investors before finalizing a deal. It's essentially a deep dive into your business to confirm its value, stability, and legal standing.

Being prepared for due diligence means having:

Organized corporate records and governance documents. This includes Articles of Incorporation, Bylaws or Operating Agreements, meeting minutes, and ownership records.
Financial and tax records for the past 3–5 years. Detailed financial statements, including profit and loss, balance sheets, and cash flow statements, along with state and federal tax returns, are vital for valuation and risk assessment.
Copies of all material contracts and leases. All agreements that affect business operations or income, including supplier contracts, customer agreements, and property leases, should be available for review.
A current cap table (if applicable). A capitalization table shows the ownership structure, including stock, options, and convertible securities. It's essential for investor clarity, especially in startups and growth-stage companies.
Employment agreements and HR policies. Details of employee contracts, non-compete agreements, benefit plans, and company policies ensure buyers are aware of obligations and potential liabilities.

The Role of Market Conditions in Exit Strategy Decisions

Even the best-prepared business exit strategy can fall short if market timing is off. External economic conditions, industry trends, and buyer behavior all play significant roles in determining whether it's a good time to exit—and at what price.

Timing the Market

Exiting during a strong economic cycle generally means better valuations, more interested buyers, and a smoother sale process. Conversely, trying to sell during a recession or downturn can lead to longer timelines and lower offers.

Market timing isn't just about macroeconomic trends—it also includes factors like interest rates, capital availability, and consumer demand within your sector.

Sector-Specific Considerations

Certain industries are more cyclical or sensitive to change than others. For example:

Tech:

Tech companies may be affected by rapid innovation or regulatory updates. In 2023, deep tech companies accounted for 25% of the 16 unicorn exits valued at $1 billion or more. These startups, operating in areas like AI, quantum computing, and advanced materials, often face rapid technological advancements and evolving regulations.

To mitigate risks and capitalize on their innovations, many pursued mergers and acquisitions (M&A) as their exit strategy. This approach allowed them to integrate with larger entities that could provide the necessary resources and market access to scale their technologies effectively.

Real Estate:

Real estate businesses depend heavily on housing markets and lending rates. In October 2024, Brookfield listed Citypoint , a prominent skyscraper in London's financial district, for over £500 million.

This move came in response to a 20% decline in commercial property prices following interest rate hikes since March 2022.

By choosing to sell later during a period of market stabilization, Brookfield aimed to capitalize on renewed investor interest and liquidity, demonstrating how real estate firms adjust their exit strategies based on market conditions.

Healthcare:

Healthcare companies may face evolving compliance standards or insurance reforms. In April 2025, DCC, a diversified international sales, marketing, and support services group, sold its healthcare division to Investindustrial for £945 million.

This strategic divestment was part of DCC's plan to focus on its energy operations. The sale occurred amidst challenging market conditions and regulatory complexities in the healthcare sector. It highlighted how companies may exit certain segments to concentrate on areas with more stable growth prospects.

Buyer Trends and Economic Forecasts

Monitoring trends among potential buyers is another critical piece of exit timing. Are private equity firms actively acquiring companies in your space? Are competitors expanding through strategic acquisitions?

Also, pay attention to forecasts from reputable economic sources. Indicators like GDP growth, consumer confidence, or investment trends can help inform whether now is the right moment—or whether it’s smarter to wait.

Incorporating market intelligence into your decision-making process allows for more strategic exits and better outcomes.

Leave on Your Terms with a Smart Exit Strategy

Planning how you’ll exit your business might not feel urgent today—but it's one of the most important decisions you’ll make as an entrepreneur.

From choosing between internal and external buyers to understanding legal responsibilities and market timing, every part of your exit requires preparation. The earlier you start planning, the more control you’ll have over your outcomes—and the fewer surprises you’ll encounter down the line.

And you don’t have to do it alone.

If you're considering your exit options or have financial concerns about your future, schedule a business exit planning consultation with Boyce & Associates Wealth Consulting . We specialize in guiding business owners through complex financial transitions.

Our expert team can help you evaluate your options, prepare your business, and execute a strategy finetuned to your personal and business goals.

FAQs

Disclaimer

Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

Risks: All investments, including stocks, bonds, commodities, alternative investments and real assets, should be considered speculative in nature and could involve risk of loss. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

Charts & Chat - April 10, 2025

Fri, 11 Apr 2025 00:51:00 GMT

CEO Eric Boyce, CFA provides a historic perspective on volatility, in light of recent market developments.

The discussion includes:

1. Historical major one-day declines and longer-term drawdowns give way to resounding positive future market performance over time.

2. The relative frequency of drawdowns over time might surprise you.

3. Intra-year downturns are common in years where the market is up for the year.

4. Time greatly dampens the near term impact of volatility.

5. The probability of positive performance really goes up the longer you remain invested.

6. Chart showing how the market goes up +70% of the time, and that bull markets are MUCH more prevalent than bear markets.

7. The value of staying invested according to your investment policy throughout your investment horizon and NOT trying to time the market.

Market Minutes - April 6, 2025

Sun, 06 Apr 2025 14:10:38 GMT

CEO Eric Boyce , CFA shares his thoughts on the recent market volatility and his observations on the potential impact of tariffs on economic growth, earnings and growth. Eric also provides a reflection on insightful market trends and data on volatility to help put current events into proper perspective, and lay the groundwork to find ways to take advantage of volatility for future gain.

Staying Invested Amid Tariff Noise and Mixed Signals

Tue, 01 Apr 2025 11:00:00 GMT

Dear Clients and Friends,

As we reflect on the current investment landscape entering April 2025, we want to address the topic of market volatility and how we are managing your portfolio in this environment.

Understanding Current Market Dynamics:

The financial markets thus far in 2025 have experienced ongoing fluctuation, driven by several key concurrent forces. While volatility is a normal part of investing, several key factors are currently contributing to the heightened levels we are observing.

Policy Uncertainty: the new administration has made considerable policy changes in the short time it has been in office, including the announcement of broad tariffs, federal layoffs, shifts in immigration policy and government regulation, and other policy initiatives which, in most respects, have caught the general public and business community unprepared and the investment markets searching for clues on the impact and its magnitude. We can already see evidence that the uncertainty is conditioning behavior, as business owners temper their enthusiasm for spending and expansion, and consumers begin to weigh major purchases.

Economic data: Should the sweeping tariffs prove long-term sustainable (not a given at this point), one would expect the progress on inflation to taper off, if not reverse course for a bit, before leading to slower overall economic growth. Uncertainties in inflation, interest rates and employment are all leading to downward shifts in business surveys and sentiment, which are often a leading “soft” indicator to what eventually winds up in the “hard data” down the road. For its part, the Federal Reserve is in a data-watch mode, while trying to uphold its dual mandate of stable prices and employment. The balance in these areas is delicate, and the risk of a policy misstep is tangible. The labor market remains stable, but we are already noting higher expected prices and prices paid in regional Federal Reserve surveys. It is not clear yet how well or if these costs can be passed on to consumers, but we will certainly hear more as public companies report first quarter 2025 financial performance beginning next month.

Geopolitical uncertainties: Notwithstanding the Ukraine/Russian war, developments across the globe are impacting market confidence. Traditional trade alliances may fall into question, thereby complicating existing supply chain and distribution networks for multinational companies which derive growth and cash flow from international markets.

Interest rate expectations: The Federal Reserve is trying to navigate a very tough fiscal environment with monetary policy. It does not want to contribute to what might be temporary inflation with rate cuts, but it certainly does not want to accelerate an economic decline by raising them.

Our Approach to Volatility:

At Boyce & Associates, we understand that market volatility can be concerning. Our investment strategy is designed with both a long-term perspective and a desire to limit downside risk. While some of these may seem intuitive, we incorporate several key elements to navigate these periods:

Risk Tolerance: We assess and monitor both your tolerance and preference for risk, the latter of which can change quickly depending on market conditions. The investment policy statement (IPS), which is based directly on your financial plan, is designed to be durable but flexible during volatile times. It allows us to raise cash, adjust the investment mix, or redirect investments when circumstances warrant – while remaining entirely consistent with the long-term plan.
Diversification: In accordance with your IPS, your portfolio is diversified across various asset classes, including equities, income and alternative investments such as gold, real assets, etc. A lot of thought goes into the assets selected for each category, which collectively are designed to cushion the impact of volatility in any single market segment.
Risk Management: We employ risk management strategies, including time-tested asset allocation and prudent rebalancing, to protect your portfolio from significant downturns.
In addition, we utilize structured investments which actually take advantage of market volatility when it appears – either for the benefit of current income or tax efficient cash flow, or for future accelerated returns of a specific equity market index. Importantly, all of the structured investments we create and/or utilize in client portfolios are designed to insulate at least a portion of the portfolio from downside risk by protecting the invested principal down to a certain index level below the purchase point. We have found that structured investments have been quite helpful during prior downturns as a key component of portfolio management, and many of the positions we hold in current portfolios are priced well below their intrinsic value.
Long-Term Perspective: We remain focused on your long-term financial goals and avoid making impulsive decisions based on short-term market fluctuations. Emotion is a powerful behavioral impulse in investing, and it is critical to remain consistent and steadfast in the approach. We believe that staying disciplined and adhering to your investment policy is crucial for achieving your objectives.
Active Monitoring: We continuously monitor market conditions and make tactical adjustments to your portfolio as needed to respond to evolving dynamics.

Our Commitment to You:

We remain committed to providing you with clear and transparent communication about your investments. We are always here to answer your questions and address any concerns you may have. We encourage you to reach out to us to discuss your portfolio in more detail or to gain a better understanding of our approach to managing volatility. Your Boyce & Associates team is here to help!

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — April 2025

A Brief History of Tariffs

Tue, 01 Apr 2025 11:00:00 GMT

Trading goods has been around for millennia - with early written documentation beginning with the silk road to the industrial and now digital revolution - the exchange of goods has led to an interconnected world where products and services change hands between cultures and countries. Globalization (the exchange of goods) started to play a central role in global Gross Domestic Product (GDP): a measure of the total value added from the production of goods and services in a country or region each year with exports accounting for approximately 13% of world GDP in 1970 and near 30% in 2023, according to the World Bank.

Tariffs have been one of the major headlines as Donald Trump entered the Oval Office for his second term as President. To prime the discussion and apply it to current events, it seems judicious to take a moment and look back at the role tariffs have played in policy for the United States. Tariffs are essentially a tax on goods and/or services imported to the United States paid for by the business importing the goods and typically passed onto the consumer in the form of an increase in price of that good. An increase in tariff rates is meant to discourage trade as it makes goods more expensive to buy from other countries compared to buying domestic goods to which the tariff does not apply. Major economies, 23 countries in total, entered the General Agreement on Tariffs and Trade (GATT) in 1947 to lower tariff rates and other trade barriers to encourage trade. This is perhaps what makes President Trump’s stance to raise tariffs more controversial.

A look back in U.S. history will show that tariffs were the government’s primary revenue source prior to 1913, when the 16th Amendment introduced the federal income tax. Today, tariff revenues make up less than 2% of the $4.9 trillion in total tax revenue for 2024, with the majority coming from individual and corporate income tax. Given that tariffs are no longer a major element of domestic tax policy, what role do tariffs play in broader economic and policy goals?

The implementation of tariffs are now primarily used as a tool to protect and regulate trade practices that could injure domestic industry, advance foreign policy goals or as negotiating leverage in trade negotiations, according to a paper titled: “U.S. Tariff Policy: Overview” by the Congressional Research Service. For policy, the potential benefits are clear. Economically, the benefits are less clear. Retaliatory tariffs, rising costs, and supply chain disruptions all bring into question whether tariffs will result in the desired outcome of benefitting the U.S. consumer.

Charts & Chat - March 30, 2025

Sun, 30 Mar 2025 16:56:33 GMT

This week, CEO Eric Boyce, CFA discusses:

1. earnings estimates have come down, but are still growing for the S&P 500, but not for the Russell 2000

2. valuations have come down appreciably for the S&P 500, and the good news is that it's coming from price/earnigns multipl contraxtion and not earnings

3. gold catches a bid, and there's a strong bet that interest rates will come down based on interest in 3-month SOFR futures

4. both individual and institutional investors more cautious amidst the change in leadership within the market (Mag 7 goes on sale)

5. foreign ownership of US investments has picked up, providing both a benefit and potential risk

6. FOMC more concerned with unemployment and inflation, but do not expect recession despite some estimates for negative growth during 1Q 2025

7. Regional Fed surveys highlight caution; trade figures highlight front running of imports ahead of tariffs

8. corporate profits remain high; pending home sales plunge

Charts & Chat - March 23, 2025

Sun, 23 Mar 2025 14:12:48 GMT

This week, CEO Eric Boyce, CFA discusses:

1. volatility increases within the market, market sector shifts, market concentration dynamics

2. with higher volatility from trade, etc. policy, markets can actually exhibit better risk-adjusted returns; consumer inflation from tariffs may promote higher profit margins

3. power of long term compounding - EVEN IF price/earnings multiples contract from here

4. international valuations improving relative to S&P500

5. stabilization perhaps in office RE market

6. individual investors very apprehensive about market, think business conditions, employment & income trends worsening.

7. small business outlooks more guarded, higher prices paid showing up in the data

8. housing supply improving, but prices are rising faster than inflation

At What Point Should You Hire A Wealth Manager?

Thu, 20 Mar 2025 17:43:59 GMT

Key Takeaways

You don’t need millions to hire a wealth manager—many firms offer services starting at $250,000 in assets.
Wealth managers provide more than investment advice—they handle estate planning, tax strategy, retirement, and more.
Signs you may need one include financial complexity, major life changes, or a sudden increase in wealth.
Human advisors still play a vital role—especially for those needing personalized strategies beyond what robo-advisors can offer.
Choosing the right wealth manager means looking at credentials, fee transparency, and how well they align with your goals.

Hiring a Wealth Manager: What It Costs and When It’s Worth It

Wealth management is a comprehensive financial service that goes beyond basic investment advice. It involves managing an individual's or a family's financial portfolio, including investments, estate planning, retirement strategies, and tax optimization. A wealth manager takes a holistic approach to ensure that financial goals are met while minimizing potential risks.

As financial situations become more complex, individuals with substantial assets often need specialized expertise to preserve, grow, and transfer their wealth. Here, we discuss specific life circumstances in which you may consider hiring a wealth manager.

When to Consider Hiring a Wealth Manager

Knowing when to engage a wealth manager can make a significant difference in protecting and growing your assets.

While some individuals manage their own investments successfully, others may reach a point where professional expertise becomes essential. Here are clear signs that it might be time to hire a wealth manager:

1. Increasing Complexity of Your Financial Portfolio

As financial portfolios grow, they often include a mix of assets such as stocks, bonds, real estate, private equity, and business interests. Managing these diverse holdings requires time, expertise, and a thorough understanding of market dynamics.

Wealth managers develop cohesive strategies to balance risk and reward across multiple asset classes.

They monitor and adjust portfolios to maintain alignment with long-term financial goals.

2. Approaching Retirement or Major Life Transitions

Significant life events, such as retirement , marriage, divorce, inheritance, or the sale of a business , often bring financial complexities that require careful planning. Without expert guidance, it's easy to overlook key factors that can affect long-term security.

Wealth managers help clients navigate these transitions with tailored financial strategies.

They optimize retirement withdrawals, manage pensions, and ensure that wealth is preserved for future generations.

3. Significant Wealth Growth or Inheritance

A sudden increase in wealth—whether through inheritance, business success, or investment growth—can present unexpected challenges. Managing newfound wealth requires careful planning to avoid unnecessary tax burdens and ensure sustainable growth.

Wealth managers provide strategic asset allocation and diversification to mitigate risk.

They offer estate planning solutions to preserve wealth and minimize tax liabilities.

4. Difficulty Managing Tax Strategies and Estate Planning

Tax optimization and estate planning are critical aspects of long-term wealth management. Without expert advice, high-net-worth individuals may face unnecessary tax burdens—such as higher-than-necessary capital gains taxes or overlooked opportunities for charitable deductions —or end up with ineffective estate plans that complicate wealth transfer.

Wealth managers identify opportunities to minimize taxes through tax-efficient investments and charitable giving.

They structure trusts and wills to ensure seamless wealth transfer while minimizing estate taxes.

How Much Money is Required for Wealth Management?

Wealth management services typically require clients to meet a minimum asset threshold. While requirements vary by firm, most wealth managers cater to individuals with investable assets starting at:

Mass Affluent Clients: $250,000 to $1 million
High-Net-Worth Individuals (HNWIs): $1 million to $5 million
Ultra-High-Net-Worth Individuals (UHNWIs): $5 million and above.

5 Benefits of Hiring a Wealth Manager

Hiring a wealth manager can deliver meaningful value when your financial situation becomes more complex.

Their services go far beyond investment advice, offering comprehensive strategies to help you manage, protect, and grow your wealth over time. Below are five concrete benefits of working with a wealth manager:

1. Customized Financial Strategy

Wealth managers develop tailored financial plans based on your unique goals, lifestyle needs, and risk tolerance. They coordinate various elements such as investment planning, retirement goals, estate planning, and cash flow.

This unified approach ensures that each financial decision supports your broader objectives. Rather than offering one-size-fits-all advice, they align strategies to your personal circumstances.

2. Ongoing Portfolio Management and Oversight

A strong financial strategy requires ongoing attention, especially as markets shift and personal goals evolve. Wealth managers actively monitor and rebalance portfolios to maintain proper asset allocation and performance.

They also adjust strategies in response to changes in your life or the economic environment. This hands-on oversight helps reduce risk, optimize returns, and keep your investments aligned with your objectives.

3. Tax Efficiency and Wealth Preservation

Tax strategy is a core part of preserving and maximizing wealth. Wealth managers use techniques such as tax-loss harvesting, asset location, and charitable giving to reduce tax liabilities.

They also help structure trusts and estate plans to minimize taxes across generations. With proper planning, more of your wealth stays working toward your goals rather than being lost to unnecessary taxes.

4. Legal and Regulatory Compliance

Wealth managers ensure your financial decisions remain compliant with current tax laws, estate regulations, and investment policies.

They review key legal documents like wills, trusts, and account structures to keep them current and effective. Their awareness of potential legal risks helps clients avoid costly errors or disputes. This layer of protection supports long-term financial stability.

5. Objective, Professional Guidance

A wealth manager offers an informed, unbiased perspective during important financial decisions. They help clients stay disciplined, especially in volatile markets or emotionally charged situations like business transitions or inheritance.

Their guidance ensures decisions are made with clarity and consistency. With professional support, clients can navigate complexity with greater confidence and peace of mind.

Exploring 4 Specialized Wealth Management Services

Wealth management extends far beyond basic investment advice. It encompasses a range of specialized services aimed at preserving and growing wealth while ensuring that financial goals are met efficiently.

For individuals with complex financial needs, wealth managers provide a holistic approach by integrating investment management, estate planning, charitable giving, and retirement security into a cohesive strategy. Below are the key specialized services offered by wealth managers.

1. Financial Planning and Tax Strategies

Effective financial planning includes smart tax strategies to grow and protect wealth over time. Wealth managers help reduce taxable income through tools like loss harvesting and tax-efficient investments. They also plan for intergenerational wealth transfer with minimal tax impact.

2. Estate Planning and Legacy Preservation

Estate planning helps ensure wealth is passed on smoothly and with minimal tax burden. Wealth managers structure wills and trusts to protect assets and maintain control over how they’re distributed. These strategies also help prevent legal issues and support legacy goals.

3. Philanthropic and Charitable Giving

Wealth managers help clients give intentionally and efficiently through charitable trusts and donor-advised funds. These tools offer immediate tax benefits and long-term impact for causes that matter. Strategic giving also supports estate planning and legacy goals.

4. Retirement Planning and Security

Planning for retirement means balancing income needs with long-term growth and stability. Wealth managers develop income strategies that consider Social Security, pensions, and required withdrawals. They also work to protect retirement savings from market risks and tax erosion.

What to Look for When Hiring a Wealth Manager

1. Credentials and Experience Matter

When selecting a wealth manager, credentials such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) indicate expertise and a commitment to ethical standards. Experienced wealth managers with a track record of managing complex portfolios are better equipped to handle sophisticated financial needs.

2. Fee Transparency and Fiduciary Duty

It’s essential to understand how a wealth manager is compensated. Fee structures may be based on:

A percentage of assets under management (AUM)
Flat or hourly fees.

Additionally, ensure that the wealth manager operates as a fiduciary , which means they are legally obligated to act in your best interest.

3. Communication and Personal Fit

Choosing a wealth manager who communicates clearly and understands your financial objectives is key. Look for someone who:

Provides regular updates and performance reviews.
Is accessible and responsive to your questions.
Builds a relationship based on trust and transparency.

Conclusion: Making Informed Decisions About Wealth Management

Wealth management is a comprehensive approach to managing, growing, and preserving wealth across generations. For individuals with complex financial portfolios, significant assets, or unique financial goals, hiring a wealth manager can provide invaluable expertise and peace of mind.

If you’re uncertain about your next financial move, schedule a consultation with Boyce & Associates Wealth Consulting to provide the clarity you need. Professional guidance can make all the difference when planning for your financial future.

To get started, visit our website or schedule a consultation. .

FAQs

What’s the difference between a financial advisor and a wealth manager?

A financial advisor primarily focuses on investment advice and retirement planning, while a wealth manager provides a more comprehensive service that includes estate planning, tax optimization, and legacy preservation. Wealth managers are better suited for clients with complex financial needs.

What fees should I expect when hiring a wealth manager?

Wealth managers typically charge a percentage of assets under management (AUM), usually ranging between 0.50% and 1.5% annually. Some may also offer flat fees or hourly rates depending on the scope of services provided.

Can wealth management help with tax reduction strategies?

Yes, wealth managers use advanced tax optimization strategies such as tax-loss harvesting, charitable giving, and structuring trusts to minimize tax liabilities. They ensure that clients’ investment portfolios are managed in a tax-efficient manner to maximize after-tax returns.

Disclaimer

Risks: All investments, including stocks, bonds, commodities, alternative investments and real assets, should be considered speculative in nature and could involve risk of loss. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

Market Minutes - March 9, 2025

Sun, 09 Mar 2025 15:41:01 GMT

CEO Eric Boyce, CFA shares his thoughts on the current market volatility, tariffs, economic data, and near term items of market importance.

Charts & Chat - March 9, 2025

Sun, 09 Mar 2025 15:26:54 GMT

This week, CEO Eric Boyce, CFA discusses:

1. data has been mixed as of late, reflecting some anxiety, uncertainty and conservatism on the part of both business and consumers

2. economic growth softening, although recession calls remain mild. Eyes wide open, however...

3. other data, including the ISM Services PMI, remain solidly in expansion territory

4. Fed may bein a tough spot on near term rate cuts, given the sustainability of announced tariffs. Desire to cut in anticipation of slower growth may be pre-empted by near term effect of tariffs, to the extent they are sustained...

5. generational look at income, economic power, retirement assets

6. equity market trends, including recent test of 200 day moving average and moderation in earnings estimates

7. volatility up, international return expectations higher than US large growth

Charts & Chat - March 2, 2025

Mon, 03 Mar 2025 15:10:23 GMT

This week, CEO Eric Boyce, CFA discusses:

1. expectations for growth and inflation both increasing for 2025

2. earnings transcripts show increase mention of inflation, tariffs - but also productivity gains from AI

3. labor market really appears stable at this point - firms are downplaying both hiring and layoffs (except in DC)

4. consumer sentiment remains ok, but may change. 50% of consumer spending comes from top 10% earners who have $1.3T in excess savings

5. peak impact of tariffs and DOGE likely 4Q - -0.5% to growth and +0.2% to inflation

6. regional Fed surveys reflect somewhat muted conditions with new exports expected to decline and uncertainty on the rise

7. S&P 500 and 10 year treasury yield positively correlated for the first time in a few months; 3m-10y yield curve back to inverted

8. growth v. value; international equity has weaker growth vs US, but much better valuations

9. bearish sentiment spikes at the individual investor level

10. graph on expected military spending by Europe next few years in the wake of the failed Trump/Zelenskyy meeting this past week

Spring Transition: Low Volatility, Infra Tailwinds

Sat, 01 Mar 2025 12:00:00 GMT

Dear Clients and Friends,

As winter thaws and spring breathes new life into the world around us, the financial markets, too, are experiencing a period of transition. While uncertainties remain, there are emerging signs of growth and resilience that warrant a cautiously optimistic outlook for the spring of 2025.

The global economy continues to navigate a complex landscape. Inflation, while still a factor, appears to be moderating in many regions but remains sticky in others, including the US. Central banks are carefully balancing the need to control inflation with the desire to avoid stifling economic growth. The anticipation of announced tariffs has led to considerable trade policy uncertainty, which in turn has presented unprecedented challenges for monetary policy forecasting. We will simply have to monitor the ongoing effects and the persistency of these “taxes” on trade for their ultimate impact on the investment markets. In addition, geopolitical tensions remain a concern and could introduce volatility into the markets.

Outside of trade, the domestic economy is on reasonably good footing. The consumer remains healthy for the most part, and announced fourth quarter earnings have been good, if not great. The message coming out of earnings season has echoed a little bit of caution, however, and I can see the potential for companies taking a more defensive posture regarding working capital and capital spending in the coming months. That, coupled with the potential for lower government spending and net trade could set the stage for slower economic growth in the second half of the year.

From a market perspective, valuations remain somewhat mixed; however, volatility remains notably low. Select sectors, particularly those focused on infrastructure, offer attractive longer term investment opportunities, given the recent trend toward onshoring. Careful fundamental analysis and a long-term perspective remain crucial in this environment, though. With interest rates likely higher for longer, fixed income returns are more a function of yield than price appreciation. Credit spreads remain tight, consistent with high levels of economic confidence. Meanwhile, we still believe alternative investments, such as private equity and hedge funds, can provide meaningful diversification and potentially enhance returns.

We anticipate a period of measured growth, with potential for upside surprises if inflation recedes more quickly than anticipated or if the rhetoric surrounding tariffs softens a bit.

In conclusion, the spring of 2025 presents an interesting confluence of factors for investors. While challenges remain, we believe that a prudent and well-diversified approach can help investors achieve their long-term financial goals. We encourage you to contact us to discuss your specific investment objectives and how we can help you navigate the current market environment.

My best,

Eric Boyce, CFA

President & CEO

Newsletter — March 2025

Secure, Smart, and Successful: The Financial Empowerment Blueprint for Women

Sat, 01 Mar 2025 12:00:00 GMT

I doubt it will surprise any reader here that as a female financial advisor, I’m going to take the lens of financial empowerment when it comes to celebrating International Women’s Day. In fact, what better way can we serve our community than by being financially strong?

Financial empowerment begins with utilizing tools and resources necessary to achieve financial success. I recommend starting with a few widely known books (you can “read” via audible too):

Rich Dad, Poor Dad by Robert Kiyosaki
Think and Grow Rich for Women by Sharon Lechter
The Compound Effect by Darren Hardy
Smart Women Finish Rich by David Bach

The next step is applying that knowledge to your own financial plan. If you are married, I encourage you to have a weekly “money date” and build a plan together with your spouse. That begins with knowing how much is coming in each month, how much is being saved, and where it is leaving the bank account. Being intentional with your financial decisions is empowering and creates positive momentum towards the life you desire.

Your mindset on money matters greatly, i.e. how you feel about earning, saving, and investing will impact your success. The books listed above can help foster a positive mindset when it comes to finances.

Once you start to view money as a tool to support and enhance your life goals, you’ll begin to have a mindset shift towards empowerment and confidence vs. a source of stress or constraint.

Next, you will be ready to align your finances with your life goals. You’ll want to develop financial strategies that reflect your personal priorities, whether that is travel, philanthropy, or even retiring early! Aligning your financial decisions with your life goals, money becomes a powerful enabler for creating the life you desire.

By taking some of these proactive steps, women can reshape their financial trajectories, ensuring greater security and freedom. Taking action and implementing money as a tool has the power to change your financial trajectory in life. Now really, what could be worth celebrating more in life?

Happy International Women’s Day,

Kelly Griggs

Charts & Chat - February 23, 2025

Sun, 23 Feb 2025 15:11:15 GMT

This week, CEO Eric Boyce, CFA discusses:

1. fund manager sentiment now lists trade-war led recession and potential rate hikes as biggest fat tail risks in the economy, leading to gold and global equity outperformance

2. data on inflation suggests we may not hit the Fed's 2% target, although PCE data may get closer

3. retail sales strong; Philly Fed manufacturing still positive, but capital spending intentions have pulled back a bit given trade and economic uncertainty

4. seeing federal layoffs in the DC employment data; GDP estimate from Atlanta Fed now looking for 2.3% 1st quarter (2025) annual growth.

5. Financial conditions remain positive despite higher rates for likely longer.

6. the challenges of replacing income taxes with tariff revenue...

7. growing predictions of government shutdown next month

8. portfolio return variance dictated by stocks last 40 years; growing influence, benefit and contribution from private equity and credit

9. data on the dramatic influence by foreign direct investment into the investment market's sustained growth

What Is A Wealth Manager And What Exactly Do They Do?

Wed, 19 Feb 2025 21:47:11 GMT

Key Takeaways:

A wealth manager provides extended financial services beyond just investment advice, including estate planning, tax strategies, and risk management.
Hiring a wealth manager can save time, provide expert guidance, and offer access to exclusive investment opportunities.
Generally, individuals with $1 million or more in investable assets benefit most from wealth management, though some firms accept clients with less.
The key difference between a financial advisor and a wealth manager is the scope of services—wealth managers offer broader and more personalized financial planning.
If your financial situation is complex or growing, consulting a wealth management firm can help you secure and maximize your wealth for the future.

In the grand scheme of financial planning, the term "wealth manager" may sound like a fancy title for someone who counts your money while sipping a macchiato in a high-rise office. But in reality, their job is far more intricate and—fortunately—far more useful. If you've ever found yourself wondering, "Do I need a wealth manager?" or "What do these people even do?" you're not alone. Let’s break it all down so you can make an informed decision about whether wealth management is something that fits your financial future.

What is a Wealth Manager?

A wealth manager is a professional that specializes in comprehensive financial services for Ultra-High-Net-Worth Individuals (UHNWIs). Their role extends beyond basic investment advice; they are more comprehensive in their approach to wealth management, including estate planning, tax strategies, risk management, retirement planning, and even philanthropic endeavors.

Think of a wealth manager as the quarterback of your financial team. They coordinate different aspects of your financial life to ensure everything runs smoothly, minimizing risks while maximizing gains. Instead of offering one-off advice, wealth managers take a long-term approach to growing and preserving wealth.

Paying for Wealth Management

Wealth managers get paid in a variety of ways, and it's crucial to understand their compensation structure as it can influence their recommendations and potential conflicts of interest. Here are the most common methods:

Fee-Only: This is generally considered the most transparent and client-friendly model. Fee-only advisors are compensated solely by fees paid directly by the client. These fees can be:
Assets Under Management (AUM) Fees: A percentage of the total assets they manage for you (e.g., 1% annually). This is the most common fee structure.
Hourly Fees: Charged for consultations or specific projects.
Fixed Fees: A flat fee for a defined set of services.
Retainer Fees: A regular fee (monthly or quarterly) for ongoing services. Fee-only advisors are fiduciaries , legally obligated to act in your best interest.
Commission-Based: Commission-based advisors earn money by selling financial products, such as insurance, mutual funds, or annuities. They receive a commission on each sale. This model can create conflicts of interest, as the advisor may be incentivized to recommend products that generate the highest commission, rather than those that are best for the client.
Fee-Based (or Fee-and-Commission): This is a hybrid model where advisors can charge fees and earn commissions. They might charge an AUM fee and receive commissions on certain products they sell. While not inherently bad, this model requires careful scrutiny to ensure recommendations are truly in your best interest and not driven by commission potential. Transparency is critical here.
Salary Plus Bonus: Some wealth managers, particularly those working for larger financial institutions, may receive a salary plus a bonus based on performance or sales targets. This can also create potential conflicts of interest.

Pros and Cons of Hiring a Wealth Manager

Like all financial decisions, hiring a wealth manager comes with both benefits and drawbacks. Here’s what you need to consider:

Pros:

Expert Guidance: Wealth managers can help you navigate investments, tax laws, and estate planning with confidence.
Holistic Planning: Unlike standard financial advisors who may focus solely on investment portfolios, wealth managers provide an integrated approach to wealth preservation and growth.
Time Savings: Managing wealth effectively requires time and effort. A wealth manager handles the heavy lifting, allowing you to focus on your career, family, or leisure.
Access to Exclusive Opportunities: Many wealth managers have connections to private investments, alternative assets, and specialized financial products that aren’t available to the general public.

Cons:

Cost: Quality comes at a price. Wealth managers typically charge a percentage of assets under management (AUM), often around 1%, or may have a high minimum fee.
Not Always Necessary: If your finances are straightforward, you may not need a wealth manager. A financial advisor or self-directed investment strategy might be enough for you.
Potential Conflicts of Interest: Some wealth managers receive commissions for recommending certain financial products, so it’s important to work with a fiduciary who prioritizes your best interests.

At What Income Level Would I Need To Hire A Wealth Manager?

If you're making a six-figure salary and wondering whether a wealth manager is necessary, the answer is: it depends.

While there’s no universal threshold, most wealth management firms cater to individuals with at least $1 million in investable assets. That being said, some firms offer services for those with as little as $250,000 in assets, while others won’t consider clients with less than $5 million.

A good rule of thumb is to assess the complexity of your financial situation. If you have multiple income streams, real estate holdings, or significant tax planning needs, hiring a wealth manager could be a smart move—even if you haven’t hit the million-dollar mark just yet.

Likewise, if you're approaching retirement with substantial savings or need help structuring your estate, a wealth manager can be an invaluable asset.

Differences Between Financial Advisor And Wealth Manager

It’s easy to confuse financial advisors with wealth managers, but they serve different roles. Here’s how they stack up:

Scope of Services: Financial advisors primarily focus on investments, retirement planning, and budgeting. Wealth managers take a broader approach, covering estate planning, tax optimization, risk management, and even philanthropic strategies.
Clientele: Financial advisors typically serve a wide range of clients, from middle-income earners to millionaires. Wealth managers, on the other hand, cater almost exclusively to high-net-worth and ultra-high-net-worth individuals.
Fee Structure: Financial advisors may charge a flat fee, hourly rate, or a commission on investment products. Wealth managers usually work on an AUM-based fee, meaning they earn a percentage of the assets they manage for you.
Level of Personalization: Financial advisors often provide standardized investment strategies, while wealth managers offer highly tailored, concierge-like financial services.

So, do you need a wealth manager? If your financial situation is relatively straightforward, a traditional financial advisor may suffice. However, if you're dealing with substantial wealth, complex investments, and long-term legacy planning, a wealth manager can provide the strategic oversight needed to safeguard and grow your assets.

Ultimately, the decision boils down to your financial goals, the complexity of your assets, and how much hands-on management you want. If you're still unsure, scheduling a consultation with a wealth management firm like Boyce & Associates Wealth Consulting is a great first step.

Because when it comes to your financial future, professional guidance is never a bad investment. Visit our website or give us a call at

FAQ

Should my Wealth Manager have certain credentials?
Yes, your wealth manager should absolutely have certain credentials. While experience is valuable, credentials demonstrate a baseline level of knowledge, professionalism, and ethical commitment. They also often come with continuing education requirements, ensuring your advisor stays up-to-date on industry changes. Here's why credentials matter and some key ones to look for:

Why Credentials Matter:

Demonstrated Knowledge: Credentials signify that the advisor has passed rigorous exams and met specific educational requirements, proving their understanding of financial planning concepts, investment strategies, regulations, and more.
Ethical Standards: Many credentials require adherence to a code of ethics, holding advisors accountable for acting in their clients' best interests.
Professionalism: The pursuit and maintenance of credentials demonstrate a commitment to professional development and staying current in the field.
Client Trust: Seeing recognized credentials can build trust and confidence in your advisor's abilities.

Regulatory Compliance: While not a credential in itself, some roles within wealth management require certain registrations and licenses (like the Series 7 or Series 65), overseen by regulatory bodies like FINRA and the SEC. These are essential.

When is Too Early to Hire a Wealth Manager?

Hiring a wealth manager too early can be detrimental to your financial health. Generally, it's too early if you lack the financial complexity that warrants professional management. This often means having relatively simple finances with limited investment assets, straightforward income streams, and no immediate need for complex financial planning, such as estate planning or intricate tax strategies.

If your financial situation primarily involves managing a basic budget, paying down debt, and contributing to standard retirement accounts like 401(k)s or IRAs, you likely don't need a wealth manager just yet.

Which payment model is best?

Many people consider fee-only compensation to be the most objective and transparent, as it minimizes potential conflicts of interest. However, each model has potential pros and cons. The most important thing is to fully understand how your wealth manager is compensated and ask detailed questions about any potential conflicts of interest. Don't hesitate to ask:

"How are you compensated?"
"What are your fees?"
"Do you receive any commissions?"
"What are your potential conflicts of interest?"
"Are you a fiduciary?"

A good wealth manager will be transparent and upfront about their compensation structure. If they are not, that's a red flag. Choose a wealth manager whose compensation model aligns with your values and priorities, and always prioritize transparency and open communication.

Investment advisory services offered through Boyce & Associates Wealth Consulting, Inc., a registered investment adviser. Boyce & Associates Wealth Consulting, Inc. has Representatives Licensed to sell Life Insurance in TX and other states. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

Risks: All investments, including stocks, bonds, commodities, alternative investments and real assets involve a risk of loss. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

Charts & Chat - February 9, 2025

Sun, 09 Feb 2025 16:54:15 GMT

This week, CEO Eric Boyce discusses:

1. continuing uncertainty with tariffs and trade policy - the numbers, risks, and perspective moving forward

2. manufacturing picking up, per the PMI data; services remaining steady; productivity remains strong

3. corporate confidence improving, leading to more aggressive capital spending plans

4. update on relative valuations to earnings yield, volatility, etc.; earnings estimates are being reduced (good!)

5. retail same store sales very steady, suggesting a relatively stable consumer

6. corporate credit issuance very strong in 2025; no fear of economic downturn. May be priced too richly, though (?)

Charts & Chat - February 2, 2025

Sun, 02 Feb 2025 15:02:50 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Now that tariffs have been announced, where are the biggest impacts?; also, recent spike in policy uncertainty

2. Optimism remains high on the part of consumers, individual investors, and corporate America; however, it could change depending on duration/impact of tariffs

3. Initial read of 4th quarter (2024) GDP in line, buoyed by consumption; offset by inventories

4. Trade balance worsened, as imports increased on strength of US dollar

5. Declining household debt levels and rising relative disposable income should support continued consumption

6. Notable rise in some commodity prices across both industrial and agricultural categories

7. Gold rising on uncertainty surrounding fiscal and trade policy

8. Strong inflows into equities, high yield and leverage loan investments on strength of profits, confidence.

9. Market still expecting two rate cuts by year end. Much can happen between now and then, however...will need to monitor developments

Higher-for-Longer: Early-Year Catalysts and Risks

Tue, 21 Jan 2025 17:02:02 GMT

Dear Clients and Friends,

I hope the new year is treating all of you well thus far. Winter has finally announced its arrival in central Texas, and we have all gone through our closets to pull out sweaters and jackets.

Last month, we were excited to announce that Mallory Warnock has joined our Boyce & Associates team as Director of Client Engagement. Mallory will be responsible for several key initiatives, including helping us enhance client experience, business retention and growth, as well as helping to coordinate event management and community outreach. In addition, she will also help cultivate new client and referral relationships and execute client education opportunities which we’d like to increase this year. We look forward to introducing you to Mallory, and we are excited for her to get to know each of you.

Shifting to the markets, we still see catalysts on both sides heading into the middle of the first quarter (see Charts of the Week for January 20th). On the one hand, the potential for trade conflict, geopolitical hot spots, unexpected interest rate increases borne out of stubborn inflation and the risk that Fed policy shifts to tightening all present risks to the current environment. In addition, we will most certainly face another debt ceiling impasse with the new Congress over the next few months, which will likely be tied to any continuing resolution legislation to fund the federal government.

On the other hand, the potential for resolution in Ukraine and the Middle East, coupled with the prospect of increased corporate margins, profits and earnings, could provide a meaningful offset. Notwithstanding, as AI moves further into the business mainstream, I would expect productivity to continue to increase, which in turn should have a dampening effect on inflation. The Chinese economy remains a wildcard, though, and this has implications for the pace of global growth and emerging markets. Other international markets, especially Europe, are expected to witness economic expansion this year, which could improve the prospects for foreign stocks in general in 2025.

The US economy remains on solid footing, with retail sales strong, labor stable and manufacturing showing recent signs of improvement. The Fed’s Beige Book and other regional and national surveys seem to be trending in the right direction.

At this point, we see continued earnings expansion for US stocks, although I think a 15% gain this year may be a little optimistic. Even if that is the case, however, there should be room for risk-based investments to grow in 2025, albeit with some volatility, recognizing that valuations in some areas are indeed a bit stretched. On a positive note, we do see increased breadth and participation across the broader market, as growth for the remaining stocks catches up with and eventually passes the magnificent 7 tech stocks which have led for some time.

With all that being said, the inauguration is now behind us, and we will soon begin to witness the scope and texture of proposed policy initiatives by the new administration. Accordingly, we will analyze its potential impact on near term inflation, medium term growth, federal deficits, and even perhaps what the Federal Reserve does with monetary policy. I think they will be reluctant to lower rates for a while as a result of this uncertainty, thereby implying higher interest rates for longer (which is good for savers).

I hope all of you have a very enjoyable February, with plenty of hot chocolate to keep you warm. We appreciate the opportunity to serve you, and please do not hesitate to reach out if we can be of service!

Sincerely,

Eric C. Boyce, CFA

President & CEO

Newsletter — February 2025

Charts & Chat - January 20, 2025

Mon, 20 Jan 2025 22:36:17 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Biggest risks and catalysts for growth (positive and negative) for 2025

2. Quantifying tariff impacts on growth across key global markets

3. Retail sales continue to increase, leading Atlanta Fed to raise its estimate for 4Q economic growth

4. Philly Fed manufacturing breakout!

5. Valuations stretched, but productivity and margins continue to expand, leading to increased stock buybacks and some upside stock potential

6. US dollar likely to remain stronger, which has some trade implications

IRA or Roth: Which is Better for Retirement Savings?

Sun, 19 Jan 2025 17:06:01 GMT

When it comes to saving for retirement, there is often confusion around whether it is better to utilize a traditional or Roth IRA. For 2025, individuals can contribute $7,000 annually to an IRA, with an additional $1,000 if they are over age 50. These contributions must come from earned income and are separate from employer-sponsored plan limits (401k 403b, etc).

A traditional IRA allows individuals to deduct contributions for their adjusted gross income, reducing their tax liability for the year. However, taxes are paid upon withdrawal, and higher earners may be ineligible for this deduction. Moreover, they will have required minimum distributions (RMD) at age 72-75 (depending on your date of birth). Roth IRAs, on the other hand, require contributions to be taxed up front, but offer tax-free growth and withdrawals after age 59½. High earners may not qualify for direct Roth IRA contributions.

Key considerations for choosing between a traditional or Roth IRA include:

1. Tax Bracket Now vs. Retirement: If you are in a high tax bracket now and expect to be in a lower one in retirement, a traditional IRA may be beneficial since it defers taxes until withdrawal. If you're in a lower tax bracket now and expect to be in a higher one later, paying taxes now with a Roth IRA may be advantageous.

2. Tax Impact for Heirs: Traditional IRAs may not be ideal for heirs, as new RMD policies require heirs to deplete the account within 10 years, potentially pushing heirs into a higher tax bracket. While inherited Roth IRA’s do have RMD’s, they are usually tax free to the heir.

3. Other Retirement Income: Consider your other income sources in retirement, such as pensions or annuities. If these sources are taxable, combining them with traditional IRA withdrawals could push you into a higher tax bracket. Roth IRAs may be more favorable in this case to avoid extra tax burden.

While these are important considerations to make, it’s essential to evaluate your specific situation. If you would like to learn more about this strategy for your particular situation, please contact us .

Top Strategies in Private Wealth Management for Long-Term Growth

Thu, 16 Jan 2025 22:28:01 GMT

Key Takeaways:

Personalized Planning Drives Growth: Private wealth management creates tailored financial strategies that align with your unique goals and circumstances.
Maximized Investments: A private wealth advisor helps you make smarter investment decisions, access exclusive opportunities, and optimize your portfolio for steady, long-term growth.
Tax Efficiency Matters: Tax-efficient strategies like Roth conversions, tax-loss harvesting, and charitable giving help you retain more wealth over time.
Diverse Asset Allocation: Spreading your investments across various asset types reduces risk and ensures a more balanced portfolio.
Ongoing Adjustments Ensure Success: Regularly reviewing and refining your financial plans ensures they remain aligned with your goals and market conditions.

When it comes to building and preserving wealth, navigating the complex world of investments, taxes, and financial planning can feel overwhelming. That’s where private wealth management comes into play. By working with a private wealth advisor , individuals can tailor strategies that not only protect their assets but also position them for long-term financial growth. Whether you're growing your portfolio, planning for retirement, or safeguarding your legacy, private wealth management offers a personalized and strategic approach to achieving your financial goals.

There are core benefits of private wealth management and key strategies that can maximize your financial potential for the long haul.

How Private Wealth Management Enhances Financial Growth

Private wealth management isn’t just about managing assets; it’s about creating a comprehensive financial roadmap. A private wealth advisor brings together expertise in investment strategy, tax planning, financial planning , estate planning, and risk management to offer a holistic approach tailored to your unique needs.

One of the significant ways private wealth management enhances financial growth is by ensuring your investments align with your life goals. For example, if early retirement or funding generational wealth is a priority, a private wealth advisor can create customized plans that prioritize these outcomes while balancing market risks. Unlike one-size-fits-all solutions, private wealth management accounts for the nuances of your financial situation—whether that’s navigating high tax brackets, diversifying income streams, or preparing for significant life events like college funding or business succession.

Additionally, private wealth management offers strategic tax planning to help mitigate liabilities. By optimizing asset placement, leveraging tax-efficient investment vehicles, and incorporating charitable giving strategies, a private wealth advisor can help you retain more of your hard-earned wealth. This proactive planning often leads to compounding returns that drive long-term growth, allowing your portfolio to flourish while reducing unnecessary tax burdens.

In times where the financial market is growing and changing quickly, private wealth management provides clarity, direction, and the expertise needed to stay ahead. With the guidance of a private wealth advisor, you can achieve financial security and expand your wealth in a sustainable way.

Maximizing Investments Through Private Wealth Management

Successful wealth building hinges on the ability to make smart, informed investment decisions. This is where private wealth management shines. A private wealth advisor takes the guesswork out of investing by developing tailored strategies that align with your risk tolerance, goals, and market conditions.

A key advantage of private wealth management is access to exclusive investment opportunities often unavailable to the average investor. These can include private equity, hedge funds, or real estate ventures that offer significant growth potential. With a deep understanding of market trends and economic shifts, a private wealth advisor helps ensure that your investments are diversified and poised to capitalize on emerging opportunities.

Beyond investment selection, private wealth management is instrumental in portfolio optimization . Your private wealth advisor can help you maintain a balanced portfolio by regularly rebalancing assets to align with your financial goals and risk tolerance. This discipline minimizes the emotional decision-making that often leads to underperformance, particularly during volatile market periods.

Another pillar of investment maximization in private wealth management is the integration of sustainable investing. Increasingly, individuals are looking for ways to align their values with their financial goals. A private wealth advisor can guide you in identifying and investing in companies or funds with strong Environmental, Social, and Governance (ESG) metrics, delivering both financial returns and positive societal impact.

Private wealth management also focuses on long-term investment strategies rather than short-term gains. This disciplined approach fosters financial resilience, ensuring that you can weather market fluctuations and achieve steady growth over time. With the guidance of a private wealth advisor, maximizing investments becomes a structured and strategic process, setting you on the path to lasting financial success.

Key Strategies for Sustainable Wealth Growth

While every financial journey is unique, certain strategies within private wealth management consistently deliver results. Below are a few top practices employed by private wealth advisors to foster long-term growth:

Personalized Financial Planning: Your private wealth advisor will evaluate your current financial standing and future aspirations to create a tailored plan that encompasses saving, investing , and spending strategies.
Tax-Efficient Investing: Minimizing taxes is crucial for maximizing growth. Private wealth advisors often use tools like Roth conversions, tax-loss harvesting, and municipal bonds to enhance post-tax returns.
Diversified Asset Allocation: A well-balanced portfolio is essential for reducing risk and optimizing returns. Through careful selection of stocks, bonds, real estate, and alternative investments , your private wealth advisor ensures your assets are distributed effectively.
Estate and Legacy Planning: Planning for future generations is an integral part of private wealth management. From establishing trusts to leveraging life insurance policies, private wealth advisors help secure your legacy.
Continuous Monitoring and Adjustment: Financial plans and investment portfolios require regular evaluation. Private wealth advisors proactively adjust strategies based on market trends, economic shifts, and your evolving goals.

Why Partnering with a Private Wealth Advisor is Essential

Financial success rarely happens by chance—it’s the result of strategic planning and expert guidance. A private wealth advisor offers the personalized attention and insights needed to achieve sustainable growth, preserve wealth, and minimize risks.

By integrating a comprehensive approach that accounts for both current needs and future aspirations, private wealth management enables you to focus on what matters most—whether that’s spending time with loved ones, pursuing passion projects, or enjoying the lifestyle you’ve worked so hard to achieve.

If you’re ready to take control of your financial future, consider partnering with a private wealth advisor. With their expertise, you can navigate the complexities of wealth management and unlock the full potential of your financial resources.

Private wealth management is an invaluable resource for individuals seeking to grow and protect their assets over the long term. By working with a private wealth advisor, you gain access to tailored strategies, exclusive opportunities, and ongoing support to help you achieve your financial goals.

At Boyce & Associates Wealth Consulting , we specialize in helping clients build sustainable financial futures. Contact us today to learn how our private wealth management services can guide you toward long-term growth and financial success.

Frequently Asked Questions (FAQs)

1. What is private wealth management, and how does it benefit me?

Private wealth management is a comprehensive financial service designed for individuals with significant assets. It includes personalized strategies for investing, tax planning, estate planning, and risk management. By working with a private wealth advisor, you receive tailored advice and strategies to grow, protect, and manage your wealth over the long term.

2. How does a private wealth advisor help maximize investments?

A private wealth advisor creates a customized investment plan based on your financial goals and risk tolerance. They provide access to exclusive opportunities like private equity or real estate, optimize portfolio diversification, and ensure disciplined, long-term investment strategies. They also rebalance portfolios regularly to align with market conditions and your evolving needs.

3. Is private wealth management only for the ultra-wealthy?

No, private wealth management is suitable for anyone with significant assets or complex financial needs. If you want a tailored approach to managing your wealth, reducing tax liabilities, and planning for the future, a private wealth advisor can provide invaluable support regardless of your specific net worth.

Charts & Chat - Jan 12, 2025

Sun, 12 Jan 2025 15:04:26 GMT

This week, CEO Eric Boyce discusses:

1. the recent unexpected strength in the labor market and its unusual impact on the stock market

2. revolving credit oddly contracted last month following prolonged series of increases

3. inflation track feels like 1966-1982 pattern thus far...interesting; expectations picking up a bit with Trump administration policies on horizon

4. China slowdown illustrated

5. global stock/bond ration reflects optimism in global markets

6. term premium increasing for stocks; money fund assets continue to rise (potential market liquidity)

7. bonds more sensitive than equities to inflation surprises

8. stock and bond correlations higher; earnings yield relative to investment grade bonds suggests stocks may be more volatile

Market Minutes - January 6, 2025

Mon, 06 Jan 2025 18:53:56 GMT

CEO Eric Boyce shares his thoughts on what we can possibly expect in both the investment markets and the US economy heading into the 2025.

Charts & Chat - January 5, 2025

Sun, 05 Jan 2025 16:54:07 GMT

This week, CEO Eric Boyce, CFA discusses:

1. higher rates have not led to economic downturn, and economy maintains steady pace heading into 2025

2. households are in healthy shape, based on consumer credit, spending, real income

3. construction spending increased despite higher rates due to stimulus, data centers and $50B in spending by the Mag 7

4. with labor markets steady, inflation continues to meander lower, helped by productivity

5. short term interest rates still expected to come down; however, skepticism over number of rate cuts to expect in 2025

6. corporate profits high, net interest expense low heading into 2025

7. merger and acquisition activity and initial public offerings expected to rise in 2025

8. global growth expected ~3% in 2025

9. key considerations in the new year...tariffs (of course) and deficits

10. 151 years of stock returns - how it all stacks up

2025 Outlook: Inflation Cools as AI Lifts Earnings

Tue, 24 Dec 2024 20:07:01 GMT

Dear Clients and Friends,

As we approach the end of 2024, we wanted to take a moment to reflect on the year and discuss a few thoughts heading into 2025.

The past year has been a year of significant newsworthy moments, historic elections, and market movements highlighting both challenges and opportunities. The US showed economic resilience, buoyed by a stable labor market, growth in retail sales and consumer spending, as well as a recovery of sorts in manufacturing. Inflation has gradually cooled from its peak, but incremental gains are proving to be a bit challenging due to sticky rents and wages. Real wage growth remains positive, though, helping to fuel consumption. Goods inflation remains subdued, whereas service-sector inflation continues to run higher than pre-pandemic levels.

The mostly favorable economic backdrop has put the Federal Reserve in an interesting spot. The desire to lower short term interest rates is confounded by recent economic strength potentially driving a resurgence of inflation, not to mention the short-term potential impact of tariff increases under Trump 2.0.

Investors list inflation, geopolitical tensions, and trade protectionism as the three main economic risks heading into 2025; meanwhile, a trade war, Fed rate hikes due to unexpected inflation, and a persistently strong dollar are viewed as potentially the most bearish developments next year if they materialize (see thoughts below on interest rates). Longer-term interest rates have gone back up as of late, and the yield curve has finally un-inverted following a prolonged stretch. Although mortgage rates have moved up in tandem with 10-year treasuries, we saw an increase in existing homes sales last month for the first time since 2021.

US equities have generally performed well, driven by strong corporate earnings and optimism around AI. This, in turn, has added to the wealth effect contributing to consumer spending. Stock markets have also responded positively this year to increased liquidity and corporate profits, although earnings estimates for 2025 have been coming down over the past few months. That has resulted in a richly valued market, but not for all stocks. While I’d expect a bit more volatility in the overall index heading into 2025, I see value and small cap stocks as having particular value as the dust settles.

As I’ve noted many times, Mr. Market does not like uncertainty, and we should continue to stay “eyes wide open” regarding potential shifts in fiscal policy and the economic outlook. On balance, there appears to be a good case to be made for markets to reasonably perform in 2025, although I would not bet on a repeat of the past couple years. I think the easy gains have been made, meaning that a consistent, diligent approach to diversification and asset selection will likely be key going forward.

While it’s a bit odd to think the Federal Reserve would continue to cut rates while investment markets remain relatively exuberant, I do think the Fed will cut interest rates modestly next year. With some economic tailwinds heading into 2025, I think monetary policy expectations will need to be tempered, however, and eventually a new consensus will develop. I’m optimistic by nature, and I respect the value and comfort of having a long-term investment horizon. New year prognostications are often wrong, and I tend to place greater value in economic and valuation trends versus time-specific year-end targets. At this point, there is every reason to believe that, through long-term planning and strategy, we will be able to navigate the near-term uncertainties which lie ahead.

I hope you and yours have a wonderful and prosperous new year. We appreciate the trust you have placed in us and look forward to continuing to serve you in the coming year and beyond.

Sincerely,

Eric C. Boyce, CFA

President & CEO

Newsletter — January 2025

A Framework for Setting Goals in 2025

Mon, 23 Dec 2024 20:10:51 GMT

Ah, it’s that time of year again when resolutions and goal setting accompany a cold glass of nog. This process of projecting what you want to accomplish over the next 12 months is a great exercise to maintain forward momentum with your priorities. Now, you might expect the typical financial advisor to focus exclusively on financial goals (which don’t get me wrong, those are important!). However, a true partner in financial planning will also discuss and incorporate other elements of your life such as relationships, career, personal growth and development and health and wellness to name a few. The best financial plans are unique to you and provide achievable targets with a framework for incremental, consistent progress.

One of the most common and popular frameworks for well-structured goals is the SMART Goals framework. SMART stands for:

S pecific - it should be clear
M easurable - you should know how to track progress
A chievable - the goal should be realistic and attainable
R elevant - how does the goal relate to other priorities and objectives you have
T ime-bound - set a deadline to create urgency and a timeline for completion

An example of a SMART goal might look something like this:

“I will research and select 4 workshops to attend by the end of 2025 that focus on one of the following elements of self-improvement: active listening, time management, emotional intelligence and embracing a growth mindset”.

This goal is S pecific by identifying what my goal is: self-improvement; it is M easurable by identifying how many workshops I want to attend; it is A chievable by not being overly ambitious on the time commitment; it’s R elevant to improving myself for personal and professional relationships (applying to other goals and objectives I have - such as career advancement); it’s T ime-bound, set to be complete by the end of 2025.

I would be remiss not to mention at least a few ideas for SMART financial goals!

Project your personal (and business if applicable) cash flow for the year. What percentage are you saving, spending? Do you have a plan for unallocated cash flow if and when it comes in? Are you investing in yourself? (The greatest wealth is health, as they say!)
What are your big expenditures for the upcoming year? Are you ready for them? Do you have enough cash set aside or have you reviewed all of your available financing options?
Has it been 5+ years since you have reviewed your: estate plan, insurance policies (auto, home, life)? If so, it’s time for another look!

If you struggle with where to start in setting your 2025 goals, schedule a meeting with us and we’ll be more than happy to help! Or if you already have your 2025 goals in place, share those with us too!

Charts & Chat - December 22, 2024

Sun, 22 Dec 2024 19:57:00 GMT

In the final Charts & Chat of 2024, CEO Eric Boyce, CFA discusses:

1. the Fed rate decrease from last week, the change in expectations, and the impact of the surprise on the markets

2. the status of the FOMC's current and long term projections

3. risk factors for 2025 - trade policy and inflation are at the top of the list

4. retail sales remain strong

5. small caps ready to potentially break out; value was oversold

6. term premiums on bonds moving higher

7. commodity prices improving

Charts & Chat - December 15, 2024

Sun, 15 Dec 2024 21:12:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. positive overall trends in producer and consumer inflation, including downward trend in OER (rents); goods inflation higher due to vehicles

2. PCE (the Fed's preferred inflation gauge) expected to drop in the forthcoming release

3. market pricing 0.25% rate cut in the December meeting; another +/-0.75% in cuts expected next year

4. growth expectations looking strong heading into 2025, as is capital expenditures and consumer spending

5. Small business optimism, sales expectations, hiring intentions and compensation trending higher

6. positive: manufacturing construction spending, real consumer spending

7. labor market stabilizing

8. tariffs are wildcard - not likely to be paired with money supply growth, so not sure how inflationary it would be; could impact growth, however

9. bond spreads tight - no real sign of expected stress; 3m-10y yield curve is on cusp of disinverting

10. liquidity remains strong, along with equity allocations and sales growth expectations heading into 2025

Investment Management in a Changing Economy: Adapting Strategies for Success

Tue, 10 Dec 2024 18:16:17 GMT

Key Takeaways:

Investment Management: A professional approach to handle your investments.
Economic Uncertainty: The current economic climate is uncertain.
Strategies for Success:
Diversification: Spread your investments across various assets.
Long-Term Focus: Think long-term, not short-term.
Professional Advice: Consult with a financial advisor.
Regular Review: Regularly check and adjust your investments.
Emotional Control: Avoid impulsive decisions.
Managing Uncertainty:
Assess Risk: Understand your risk tolerance.
Emergency Fund: Have savings for unexpected costs.
Tax Efficiency: Use tax-saving strategies.
Stay Informed: Know the economic trends.
Seek Expert Help: Get advice from a financial advisor.

Investment management is the professional oversight and administration of investor assets. It involves making strategic decisions about where to allocate funds, diversifying investments across various asset classes, and monitoring performance over time. The goal is to maximize returns while minimizing risk, tailored to each investor's unique financial objectives and risk tolerance.

The global economic landscape has undergone significant shifts in recent years. Geopolitical tensions, supply chain disruptions, and rising inflation rates have created a volatile and uncertain investment environment. These factors have led to increased market volatility and heightened investor anxiety.

To navigate these challenges, investors must adopt a proactive and strategic approach to investment management. By working with experienced professionals, investors can make informed decisions, mitigate risk, and maximize returns.

Tips for Successful Investment Management in a Shifting Market

To navigate these turbulent waters, investors should consider the following strategies:

1. Diversification: Spreading Your Risk

Asset Class Diversification: By spreading your investments across various asset classes, such as stocks, bonds, real estate, and commodities, you can reduce the impact of market volatility on your portfolio.
Geographic Diversification: Investing in securities from different countries can help mitigate country-specific risks .

2. Long-Term Perspective: A Marathon, Not a Sprint

Focus on Long-Term Goals: Maintain a long-term investment horizon and avoid short-term market noise.
Stay Disciplined: Stick to your investment plan, even during periods of market volatility.

3. Professional Guidance: Navigating Complexity

Personalized Advice: A qualified financial advisor can provide tailored advice based on your unique financial situation and goals.
Comprehensive Financial Planning: A holistic approach to financial planning ensures that your investments align with your overall financial objectives.
Portfolio Monitoring and Rebalancing: Regular reviews and adjustments can help optimize your portfolio's performance.

4. Regular Rebalancing: Staying on Course

Maintaining Asset Allocation: Periodically rebalancing your portfolio can help ensure that your investments remain aligned with your risk tolerance and investment goals.
Adjusting to Market Changes: As market conditions change, it may be necessary to rebalance your portfolio to maintain your desired asset allocation.

5. Emotional Discipline: Controlling Your Emotions

Avoid Impulsive Decisions: Making impulsive decisions based on fear or greed can lead to poor investment outcomes.
Stick to Your Plan: Adhering to a well-defined investment plan can help you stay disciplined and avoid emotional mistakes.

By combining these strategies and seeking professional advice , investors can increase their chances of achieving long-term financial success .

Managing Investments During Economic Uncertainty

Economic uncertainty, characterized by factors like geopolitical tensions, inflation, and interest rate fluctuations, can create a challenging environment for investors. During such periods, market volatility can increase, leading to significant price swings in stocks, bonds, and other assets.

Why Economic Uncertainty is Challenging:

Market Volatility: Economic uncertainty can lead to increased market volatility, making it difficult to predict short-term price movements.
Investor Sentiment: Negative economic news can dampen investor sentiment, leading to decreased demand for stocks and other risky assets.
Policy Uncertainty: Changes in government policies, such as tax laws or monetary policy, can impact investment returns.
Global Economic Interconnectedness: Economic events in one region can have ripple effects on global markets.

By taking a proactive approach, you can protect your wealth and position yourself for future growth.

Here are some key strategies:

Risk Assessment: Conduct a thorough assessment of your risk tolerance and adjust your portfolio accordingly. Consider shifting your investments towards more conservative asset classes, such as bonds or fixed-income securities.
Emergency Fund: Maintain a substantial emergency fund to cover unexpected expenses and avoid the need to sell investments during market downturns.
Tax-Efficient Strategies: Utilize tax-advantaged investment vehicles, such as IRAs and 401(k)s, to minimize your tax burden and maximize your long-term returns.
Stay Informed: Stay informed about current economic trends and market developments. However, avoid excessive news consumption, which can lead to emotional decision-making.
Seek Professional Advice: A qualified financial advisor can help you navigate economic uncertainty by providing expert guidance and tailored investment strategies.

By implementing these strategies and working with a trusted financial advisor, investors can increase their chances of achieving long-term financial success, even in the face of economic challenges. Remember, a well-diversified, long-term investment approach can help you weather market storms and emerge stronger.

Boyce & Associates Wealth Consulting is a trusted wealth management firm that can help investors navigate economic uncertainty. Our team of experienced advisors provides personalized financial guidance, tailoring investment strategies to each client's unique goals and risk tolerance. By implementing a diversified investment management approach and closely monitoring market trends, Boyce Wealth helps clients protect their assets and achieve long-term financial success , even in challenging economic climates. To learn more about Boyce & Associates Wealth Consulting or to set up a consultation, please visit our website https://www.boycewealth.com/ .

FAQ

What is the role of a wealth management advisor? A wealth management advisor is a financial professional who helps individuals and families manage their wealth. They provide comprehensive financial planning, investment advice, and other services to help clients achieve their long-term financial goals.

How often should I review my investment portfolio? It's recommended to review your investment portfolio at least annually. However, more frequent reviews may be necessary during periods of significant market volatility or life changes. Your financial advisor can help determine the optimal review frequency for your specific circumstances.

What is the difference between a financial advisor and a wealth manager? While both financial advisors and wealth managers provide financial advice, wealth managers offer a more comprehensive approach. They typically work with high-net-worth individuals to provide a broader range of services, including estate planning, tax strategies, and philanthropic giving.

Year-End Check: Tariff Risks, Sticky Inflation, 2025 Prep

Wed, 04 Dec 2024 21:39:00 GMT

Newsletter — December 2024

The last month has certainly been interesting to say the least. Pundits and analysts alike are trying to sift through the various policy implications of both a Trump administration and unified congress, and how that may ultimately impact the investment markets (where overall volatility remains subdued). A perceived risk of increased inflation borne from the strong rhetoric surrounding tariff policy has given markets cause to re-evaluate the declining interest rate narrative which carried us into the fall. At this point, the markets are only pricing in another 0.5% decrease in interest rates over the coming year.

Inflation, as reported in the most recent reading of the consumer price inflation (CPI) index, remains a little sticky at current levels, although the long-term trend remains down. Retail sales have been reasonably strong, underpinning some of the positive “hard” economic indicators, and business optimism has been stable for the most part. Real wages are positive; however, consumer delinquencies have also picked up a bit.

Expectations for profits and earnings heading into the new year are certainly optimistic, if not perhaps overzealous, and money flows into risk assets continue their positive trend. Valuations for some areas of the market remain attractive, although other key areas of the market are likely overvalued. Bottom line, I expect more volatility ahead.

On our end, we are indeed looking at the opportunity set for investments as we prepare portfolios for 2025, taking into consideration the risk/reward analysis noted above, as well as further developments on the political front.

As the year draws to a close, we first want to take a moment to express our sincere gratitude for your continued trust and support. We value your partnership and appreciate the opportunity to serve you. This is an excellent time to review your financial situation and consider year-end tax planning strategies. If you have any questions or need assistance, please don't hesitate to contact us.

Please be advised that our office will be closed on Wednesday, December 25th, as well as Wednesday, January 1st. Although we will likely have some team members traveling to see family during the end of the month, be assured that our staff is available if you need us for any reason during the holidays.

We wish you a joyous and blessed holiday season and a prosperous New Year.

Sincerely,

Eric Boyce

President & CEO

Dear Clients and Friends,

The Importance of Regularly Checking your Credit Report and Social Security Report

Mon, 02 Dec 2024 21:44:00 GMT

It is crucial to understand the significance of regularly monitoring one’s credit report and social security report. In today’s fast-paced world, where identity theft and fraud are on the rise, it is essential to stay informed and vigilant about your financial and personal information.

Checking your credit report gives you an overview of your financial history and creditworthiness. An individual’s credit report is a detailed summary of their credit accounts, payment history, and credit inquiries. By carefully reviewing this report, one can identify any errors, discrepancies, or signs of identity theft. According to a study by the Federal Trade Commission, one in every four consumers identified errors on their credit report, which could affect their credit score and financial opportunities. Therefore, it is essential to check your credit report at least once a year to detect any errors and ensure that the information is accurate and up to date. Don't be fooled by look-alikes. Lots of sites promise credit reports for free. AnnualCreditReport.com is the only official site explicitly directed by Federal law to provide them.

Your social security report contains crucial information about your earnings history, which is used to calculate your social security benefits. By regularly checking your report, you can ensure that your earnings are accurately recorded, and any discrepancies can be rectified before it’s time to collect your benefits. According to the Social Security Administration, around 3.5 million people are affected by incorrect social security records, leading to a loss of benefits or delayed payments. You can create a free Social Security account at www.ssa.gov/myaccount . Once you have an account, you can securely access your statement.

Not taking advantage of these reports keeps you in the dark where you stand on very important topics that affect you. Before the year ends, take time and review the above reports. If you have trouble or any further questions, please reach out to me to assist you.

Charts & Chat - December 1, 2024

Sun, 01 Dec 2024 01:16:00 GMT

CEO Eric Boyce, CFA discusses:

1. inflation expectations continue to fall

2. regional Fed surveys of manufacturing are looking better

3. capital spending increasing for non-technology firms

4. valuation gap between Mag 7 tech firms and rest of market; however, that gap is narrowing and breadth is improving

5. interesting that private multiples are contracting at the same time that public company multiples are expending

6. very high equity ownership on the part of the investing public

7. opportunity in foreign and emerging markets although value realization catalysts are varied

8. 2025 forecasts call for anywhere from 8.5 - 16% S&P 500 growth next year on increased earnings and relatively flat multiple growth...

Charts & Chat - November 24, 2024

Sun, 24 Nov 2024 00:36:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Trade trends and the impact of the strong dollar and potential tariff polices

2. New business applications up; leading indicators remain subdued

3. Residential housing inventory is up, even if builder sentiment is still soft

4. Loan demand off, but lenders still are lending; commercial non-performing loans picking up

5. Investor liquidity at high point; international purchases of US assets also peaking - driving valuations higher

6. Fund flows are strong for both stocks and bonds; mutual funds running very low cash levels

How Financial Planning Services Help You Navigate Financial Challenges

Wed, 20 Nov 2024 18:06:14 GMT

Key Takeaways:

Financial planning services provide comprehensive guidance to help individuals and families manage their finances effectively.
Expert financial planners can assist with a wide range of financial challenges, from debt management to estate planning.
Retirement planning is a crucial aspect of financial planning, and a financial advisor can help you develop a personalized strategy to achieve your goals.
By working with a qualified financial planner , you can gain valuable insights, make informed decisions, and increase your chances of financial success.

Financial planning services can be a lifeline in today's complex financial world of decision making. Whether you're saving for retirement, buying a home, or managing your wealth, a financial advisor can provide the guidance and support you need to achieve your goals.

What is Financial Planning Services?

Financial planning services encompass a wide range of services designed to help individuals and families manage their finances effectively. A financial planner will work with you to assess your current financial situation, set goals, and develop a personalized strategy to achieve them. This may involve creating a budget, investing for the future, managing debt, planning for retirement, and protecting your assets.

Solving Financial Problems with Expert Planning Services

A skilled financial planner can help you overcome a variety of financial challenges, including:

Debt management: A financial planner can help you create a debt repayment plan, negotiate with creditors, and develop strategies to reduce your debt burden.
Investment planning: A financial advisor can help you build a diversified investment portfolio that aligns with your risk tolerance and financial goals.
Retirement planning: A financial planner can help you estimate your retirement needs, choose appropriate retirement savings vehicles, and develop a withdrawal strategy.
Estate planning: A financial planner can help you create a comprehensive estate plan that protects your assets and ensures your wishes are carried out.
Tax planning: A financial planner can help you minimize your tax liability through strategic tax planning.

Steps to Achieve Retirement Goals with Financial Services

Retirement planning is a crucial aspect of financial planning . Here are some steps to help you achieve your retirement goals with the help of financial services:

Define your retirement goals: Determine how much you need to save for retirement, when you plan to retire, and the lifestyle you envision.
Assess your current financial situation: Evaluate your current income, expenses, and savings.
Create a retirement savings plan: Develop a plan for saving and investing for retirement. This may involve contributing to employer-sponsored retirement plans, such as 401(k)s or 403(b)s, and opening individual retirement accounts (IRAs).
Choose appropriate investments: Select investments that align with your risk tolerance and time horizon. Your financial advisor can help you choose the right mix of stocks, bonds, and other assets.
Review and adjust your plan regularly: As your financial situation and goals change, it's important to review and adjust your retirement plan accordingly.

By working with a qualified financial planner, you can gain valuable insights, make informed decisions, and increase your chances of achieving financial success.

Boyce & Associates Wealth Consulting is a trusted financial advisory firm dedicated to helping individuals and families achieve their financial goals. With a team of experienced professionals, we offer comprehensive financial planning services tailored to your unique needs. Whether you're saving for retirement, planning for your children's education, or managing your wealth, Boyce & Associates Wealth Consulting can provide the guidance and support you need to navigate complex financial landscapes. By leveraging their expertise in investment strategies, tax planning, estate planning, and risk management, they can help you make informed decisions and build a solid financial foundation for the future. To learn more or to contact us, visit our website .

FAQs:

What is the cost of financial planning services? The cost of financial planning services can vary depending on the complexity of your financial situation and the services you require. Some planners charge a flat fee, while others charge an hourly rate or a percentage of your assets under management. It's important to discuss fees upfront with your potential advisor.
How often should I meet with a financial planner? The frequency of your meetings with a financial planner will depend on your specific needs and goals. Some clients meet with their advisor annually, while others may meet more frequently, such as quarterly or even monthly. Your advisor can help you determine the best meeting schedule for your situation.
How do I choose a financial planner? When choosing a financial planner, it's important to consider factors such as their qualifications, experience, fees, and investment philosophy. You may also want to ask for referrals from friends, family, or colleagues. It's also crucial to ensure that your advisor is a fiduciary, meaning they are legally obligated to act in your best interests.

Charts & Chat - November 17, 2024

Sun, 17 Nov 2024 18:41:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. potential trade implications of the Trump 2.0 administration

2. recent inflation reports reflect sticky inflation influenced by a handful of components, overall trend remains down, however.

3. real wage growth positive, delinquencies picking up tho

4. US dollar accelerating; commodity prices are a mixed bag; oil, gasoline stocks are low

5. risk asset valuations & expectations are high, yet volatility remains low - some near term risk there...

6. significant opportunity in small cap and international stocks - just needs a catalyst

7. short term interest rates expected to drop 0.5% next 12 months; overall rates moving higher & reversing earlier 2024 trends

Holiday Outlook: Soft-Landing Hopes, Election Risks

Wed, 13 Nov 2024 23:11:00 GMT

Dear Clients and Friends,

As we look ahead to the 2024 holidays, investor sentiment remains cautiously optimistic, fueled by equal parts interest rate cuts, earnings growth, and meaningful growth in certain economic data like retail sales.

Market volatility, which usually picks up before presidential elections, has remained muted in the face of the relatively positive developments noted above. Valuations are by no means cheap, but earnings expectations looking into 2025 remain favorable.

While there are reasons for continued hope along the path of a soft landing, several key factors could influence volatility in the months ahead:

 Sources of Optimism:

Potential Headwinds:

Diversification across markets, geography, and sectors certainly matters, and we continue to find reasonable investment themes which we find attractive. Assuming we continue to witness economic growth, we think that, in a general sense, investments should follow – although not all boats will rise as much or as quickly.

As we welcome the Thanksgiving holiday later this month, we are certainly grateful for the many blessings we have received during the past year. We are especially grateful for all our wonderful clients, and we appreciate very much the opportunity to serve you. We wish you safe travels during this holiday season if you are traveling, and we hope that you are all able to take some time out of your busy lives and enjoy precious time with family.

Sincerely,

Eric Boyce, CFA

President & CEO

Newsletter — November 2024

10 Tips for completing the FAFSA

Mon, 11 Nov 2024 15:12:00 GMT

It is that time of year when our senior students begin applying for college. While this is an exciting milestone for many families as the student plans for his or her next chapter of life, it is also a process that can be quite intimidating for families. Upon the many moving components to the college application and planning process, the Free Application for Federal Student Aid (FAFSA) is one that many families find rather intimidating and confusing. Moreover, completing this incorrectly can cause your family to receive much less need based aid due to a simple mistake.

In a normal year, the FAFSA would already be open for families beginning October 1st. The family would complete it for the first time when their student is a senior. However, beginning last year the U.S. Department of Education recreated the FAFSA website and calculations. There were many delays and miscalculations as a result of attempting to do too much with too little time. These delays have unfortunately lagged into this year, making the FAFSA unavailable for most families until December 1st of 2024. With this in mind, we want to provide you with some tips that will help this process go smoothly.

Tip #1: There is no amount of income or assets that disqualifies a family from receiving need based aid. The most common mistake families make is assuming they make too much and will not qualify for any aid. We highly recommend every family complete this, regardless of income. The worst news a family can get as a result is that they do not qualify.

Tip #2: The FAFSA is not a one time application.

The student and parent will be required to file the FAFSA every year that the student plans on returning to school the following academic year.

Tip #3: Complete this application together.

The way we recommend to complete this is by having the student and parent sit down at the table together. The parent can help the student complete their portion first and upon the student’s submission, the parent can then begin theirs. This will ensure the application is done right the first time.

Tip #4: For any dependent student, they should apply by having the student do their part and then the student will invite the parent to complete their portion.

Although there is an option where the parent does the whole application themselves, we do not recommend this route. Failure of the student to take initiative is a way of telling the FAFSA that you do not want need based aid money.

Tip #5: Understand which parent(s) have to complete the FAFSA.

For married parents, usually only one parent will have to complete the FAFSA. For divorced parents, the parent with primary custody will usually be the only one who has to complete it (unless the parents still live together). For parents who share equal custody, it gets a bit more complicated. The FAFSA rules from the DOE go into details of your particular situation in this case.

Tip #6: Understand your base year.

One of the most important parts of the FAFSA calculation is income. The parent and student income will both be reported from the base year. This year is January of the student’s sophomore year to December of their Junior year. In other words, the full calendar year before they become a senior.

Tip #7: Understand what assets have to be included in your FAFSA.

Another common mistake many families make is including assets in their FAFSA that they do not have to include. A few significant assets that are excluded from the FAFSA include the equity in your primary home, retirement accounts (IRA’s, 401k’s, 403b’s, etc.), cash value life insurance, and annuities.

Tip #8: Be weary of student asset levels.

It may seem like suggesting to minimize the student’s assets is a bit counterproductive. However, the reasoning is to help with the amount of aid your family could qualify for. The parent will get an amount of their assets that is excluded from their aid calculation based on the parent age and number of household members. However, the student gets no asset exclusion allowance. This means that every penny in the student’s name will count against them on the FAFSA.

Tip #9: Get your FAFSA submitted as early as possible.

The buckets of money that fund need based aid for students are not bottomless. Once the money to fund aid is distributed, it is gone. Therefore, it is wise to get your FAFSA submitted as early as possible to ensure that your application is at the top of the pile.

Tip #10: Ensure all details are accurate before submission.

This final tip seems obvious. However, every year, a few families will fly through this and submit an application with incorrect information. It is a lot easier to spend the extra time on the review section and ensure the application is correct prior to submission. An error on the application will cause you to have to revoke the application and resubmit and put your student’s FAFSA at the bottom of the pile. Therefore, ensure it is done right the first time.

While there are many components to the FAFSA, we hope this will provide some good starting tips to begin this application. A+ College Planning and Boyce & Associates are more than happy to be a resource if you would like to learn more about how to apply these to your particular situation.

Charts & Chat - November 3, 2024

Sun, 03 Nov 2024 00:30:00 GMT

This week, CEO Eric Boyce discusses:

1. Relatively strong economic growth, as reported in the initial release of the 3Q GDP report. Sources of strength, including robust consumption

2. PCE prices come in as expected; employment costs coming down, although real wages are keeping up

3. Discussion of yield curve changes based on 0.25% rate cut expectation

4. Gold at record highs - sources of demand and money flows; commodities doing well across the board (chart on cattle prices)

5. market breadth improving; cash levels dropping

6. bond spreads do not reflect much if any concern in the economy right now

7. investments tend to do well regardless of who is in the White House; however, sector returns can vary greatly and may be influenced by policy changes

8. 4th quarter estimates becoming more conservative (healthy); operating margins expected to increase due to productivity improvements

Charts & Chat - October 20, 2024

Mon, 21 Oct 2024 00:31:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. GDP estimates for 3Q in the increase; liquidity higher, and economic data on balance has been more positive.

2. liquidity improving in US and abroad - tends to favor profits increases and risk asset investment over time

3. retail sales stronger than expected, labor market softening as expected

4. gold strong, other energy commodities are off somewhat

5. chapter 11 filings up, expectations for delinquencies on the rise

6. regional economic surveys (Philly Fed, Empire State) paint mixed picture on manufacturing

7. investor optimism much higher on stocks versus bonds; improving stock price and earnings breadth across sectors expected

Why You Need a Wealth Management Manager for Long-Term Financial Growth

Wed, 16 Oct 2024 18:02:04 GMT

In today's complex financial landscape, navigating the intricacies of investment strategies, tax planning, and estate planning can be overwhelming, even for seasoned investors. This is where a wealth management manager comes into play. By providing comprehensive financial guidance, these professionals can help you achieve your long-term financial goals.

Key Takeaways:

Financial Planning: Beyond investments, covers tax, estate planning, risk management, and retirement.
Personalized Attention: Tailored strategies based on your unique situation and goals.
Expertise and Objectivity: Unbiased advice and deep market knowledge for informed decisions.
Enhanced Returns and Risk Mitigation: Potential for higher returns while managing risks.
Peace of Mind and Legacy Planning: Secure your financial future and ensure smooth wealth transfer.

Understanding the Role of a Wealth Management Manager

A wealth management manager is a financial advisor who takes a holistic approach to managing your wealth. They go beyond traditional investment advice to provide a wide range of services, including:

Investment Management: Developing and implementing personalized investment strategies tailored to your risk tolerance and financial objectives.
Tax Planning: Identifying tax-efficient strategies to minimize your tax liability and maximize your after-tax returns.
Estate Planning: Helping you create a comprehensive estate plan to protect your assets and ensure a smooth transfer to your heirs.
Risk Management: Assessing and mitigating potential risks to your financial well-being.
Retirement Planning: Developing a retirement plan that aligns with your lifestyle goals and financial needs.

Long-Term Benefits of Professional Wealth Management

Partnering with a wealth management manager offers numerous long-term benefits:

Expertise and Experience: Wealth management managers possess the knowledge and experience to navigate complex financial markets and make informed investment decisions.
Personalized Attention: They take the time to understand your unique financial situation and tailor their advice to your specific needs.
Objectivity: Unlike DIY investing, wealth management managers provide unbiased advice, free from emotional biases that can cloud judgment.
Time Efficiency: By delegating your financial management to a professional, you can free up valuable time to focus on other priorities.
Peace of Mind: Knowing that your finances are in capable hands can provide significant peace of mind.
Enhanced Returns: By leveraging their expertise and resources, wealth management managers can help you achieve higher returns over the long term.
Risk Mitigation: They can identify and mitigate potential risks, such as market volatility and economic downturns.
Tax Efficiency: By implementing tax-saving strategies, you can maximize your after-tax returns.
Legacy Planning: A wealth management manager can help you create a comprehensive estate plan that ensures your wealth is transferred to your loved ones according to your wishes.

Choosing the Right Wealth Management Manager

When selecting a wealth management manager, it's essential to consider the following factors:

Experience and Qualifications: Look for a wealth manager with a proven track record and relevant certifications.
Investment Philosophy: Ensure their investment philosophy aligns with your risk tolerance and long-term goals.
Fees and Costs: Understand the fees associated with their services, including asset management fees and advisory fees.
Client Focus: A reputable wealth management manager should prioritize your needs and provide exceptional client service.
Communication Skills: Effective communication is crucial for building a strong client-advisor relationship.
Regulatory Compliance: Ensure the manager adheres to all relevant regulations and ethical standards.

By carefully selecting a qualified wealth management manager, you can take a significant step towards achieving your long-term financial goals. Remember, a sound financial plan, coupled with professional guidance, can help you build a secure financial future for yourself and your family.

Boyce Wealth: Your Partner in Financial Success

At Boyce Wealth, we understand the importance of personalized financial planning and investment management. Our team of experienced wealth management professionals is dedicated to helping you achieve your financial goals. Contact us today to schedule a consultation and learn how we can help you build a brighter financial future.

FAQ 1:

Q: What is the primary difference between a financial advisor and a wealth management manager?

A: While both professionals provide financial advice, a wealth management manager offers a more comprehensive approach. They go beyond investment advice to include tax planning, estate planning, risk management, and retirement planning. This holistic approach ensures a well-rounded financial strategy.

FAQ 2:

Q: How can a wealth management manager help me achieve my long-term financial goals?

A: A wealth management manager can help you achieve your long-term financial goals by:

Developing personalized financial plans
Implementing tax-efficient strategies
Managing your investments to maximize returns
Mitigating risks to protect your wealth
Ensuring a smooth transfer of wealth to future generations

Charts & Chat - October 6, 2024

Sun, 06 Oct 2024 17:31:00 GMT

This week, CEO Eric Boyce, CFA discusses

1. more positive economic surprises; Fed more likely to drop rates 0.25% versus 0.50% next meeting

2. labor markets showing resilience in most recent data; employment costs not going down any more; data on where job growth is coming from and which areas are contributing to unemployment

3. Atlanta Fed GDP Now estimate is for 2.5% GDP growth in 3Q (annualized)

4. ISM manufacturing remains weak; service sector strength

5. dollar remains strong; more central banks cutting rates

6. private construction remains somewhat strong in certain areas (data centers versus office); valuations increasing

7. strong global liquidity helping to justify equity market valuations; profits increasing, setting up decent equity outlook in 2025

8. credit spreads remain well in check; private lending very strong, highlighting access to capital by small/mid-sized firms

Financial Focus - Caring for An Aging Parent

Sun, 29 Sep 2024 15:32:00 GMT

Caring for aging parents can be complex and emotionally challenging. Based on our experience, we encourage you to have these hard but important conversations anyway… before your parent has a life-changing event and it becomes too late. Below are some questions that hopefully can get you started.

How Do I Have Difficult Conversations with My Parents About Their Future?

Start by selecting an appropriate time and place. Be considerate. Let’s face it. Who really wants to think about aging, much less the idea that one may not be able to care for themselves in their later years. Privacy matters. So, we suggest not broaching the subject in a public environment such as a restaurant. Instead, choose a familiar and private setting, such as their home or yours. Be upfront and say that while it might be an uncomfortable conversation, you love and care for them enough to have it anyway. \

One idea is to start with open-ended questions. For example, “How do you feel about your current living situation?” or “What are your thoughts on the kind of care you might want in the future?” This can facilitate dialogue rather than a one-sided lecture. Next, focus on your loved one’s well-being, emphasizing their safety, comfort, and happiness are your primary concern. Use phrases that focus on solutions rather than problems, i.e. making home modifications and finding in-home care vs. discussing declining health and hospital costs.

What are the Available Options and Costs for Planning?

A reliable resource we utilize is Genworth . You can enter different zip codes to get estimates of the cost of care for your area. This is the same site insurance companies use to price out their policies. It even allows you to fast forward 10-30+ years so you can get estimates on how much the cost of care will increase. You’ll want to learn about the different types of long-term care first – in-home care, assisted living, and nursing homes – to determine what might be suitable for your loved one.

We will continue to explore this important topic in the future and will address legal and financial considerations along with why thinking about future healthcare costs now is a good idea. If you have specific questions, we can help. Call Boyce Wealth & Associates at 512-522-4838 or email me at kelly@boycewealth.com .

Charts & Chat - September 22, 2024

Sun, 22 Sep 2024 02:04:00 GMT

This week, CEO Eric Boyce discusses:

1. The implications of the recent rate cut by the Federal Reserve

2. Global growth expectations remain weak despite considerable easing by foreign central banks

3. Economic and earnings growth expected to continue; investor optimism high; potential for volatility heading into election

4. Gold at a new high; dollar is range bound but perhaps moving lower with rate decreases

5. wage growth no longer decelerating; increase apartment supply should keep rents falling

6. Philly Fed manufacturing looking up; manufacturing tends to improve following the first rate cut

7. mortgage rates falling; increased home supply helping to normalize conditions in residential real estate

Charts of the Week - September 8, 2024

Sun, 08 Sep 2024 17:56:00 GMT

Charts & Chat - September 8, 2024

Sun, 08 Sep 2024 17:40:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Third quarter GDP growth looking like 2% annualized

2. Leading indicators have troughed; however, beige book and other indicators suggest slowing economy

3. Labor market continues to slow, as desired by the Fed; inflation and labor trends provide vast cover for interest rate declines this month

4. Service PMI still positive; manufacturing/construction back in decline

5. Yield curve un-inverted this week for the first time in 783 days

6. Stocks typically are weaker in September; also weaker in two months heading into Presidential election (usually get post election bounce tho)

7. increased volatility overall as of late - should create opportunity for small caps and equal weight S&P over time

Charts of the Week - September 1, 2024

Mon, 02 Sep 2024 23:19:00 GMT

Charts & Chat - September 1, 2024

Mon, 02 Sep 2024 23:10:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. equity breadth improving, momentum factors fading a bit stocks trading above moving averages

2. more volatility due to increased index option use

3. positive implications for the market following the first rate cut

4. look for better performance from cyclical sectors and value

5. some charts on the non-bank sector and provate credit from FS Investments

6. GDP revisions positive; favor increased consumer activity

7. trade, inventories impacted by retailers getting ready for holiday shopping

8. wages continuing to drop...implications.

A Business Valuation Is More Than Just The Number

Sat, 31 Aug 2024 14:44:00 GMT

Successful business owners have a lot of ways to benchmark and track their personal financial situation. There's apps for financial planning and securities accounts that can aggregate and display the total of all account values to the penny with just a few clicks. Websites like Zillow and Redfin can give a fairly accurate estimate of home values in just a few seconds. But, what about the value of their businesses? For most business owners, the value of their business is a large part of their wealth triangle: home equity, securities accounts, and the value of the business.

In many cases, the value of the business is the largest part of the owner's overall wealth. It might even be worth more than the other two parts of the wealth triangle combined. However, the value of a successful business isn't going to appear on a computer screen as easily as home prices or account values. This is why the forward-looking business owner needs to keep track of the valuation of their business. If for no other reason, the business owner needs to fill in that big blank so they can benchmark their progress towards to their life's financial goals.

Every business is different in a myriad of ways. Even businesses in the exact same industry can have numerous differentiating factors that affect value. Here's just a few common ones: is the location owned or leased? What are inventory levels relative to sales? Is there significant debt? If so, how much is it relative to equity? Receivables aging? Size? Contractors or Employees? Employee benefits? Competition? Understanding how these and other relevant factors should be considered within the analysis of the financial history of the business is the key to an accurate business valuation.

So, let's assume that you, as a thoughtful and successful business owner, understand all of this and choose to engage a quality business valuator. Depending on how in-depth of an analysis that you choose is, you'll receive back a report that could number from roughly 25-125 pages in length. But there's one thing that just about everyone does first: they find the executive summary and then scan down until they see the number. That number represents the net sum of their main effort in their business life. I get it. A business valuation report is about as lengthy as a complicated tax return. When I get my tax return draft, I immediately scan down to answer the vital questions: do I get a refund or have to pay? Either way, how much?

Knowing the business valuation number is great. It allows you to understand your personal wealth picture much more clearly. It will serve as a benchmark to your progress towards retirement or your life's financial goals. But is that all there is to it?

The business valuation report should contain clear reasoning as to the methods, assumptions, and qualitative decisions that the valuator employed. When I author my reports, I try to be as informative as possible. Each step is explained and justified, and those steps are laid out in a (hopefully) intuitive progression to reach a valuation conclusion. The valuation report is not just a number with a lot of blah-blah, legalese boilerplate wrapped around it.

The report reader can learn what factors about their business mattered, what didn't, and how much of each "what mattered" factor contributed to the overall valuation number. The savvy reader, and this assumes that successful business owners are all savvy readers, can learn what to concentrate on or improve from these details. This is not to say that a valuation report can replace a business coach or a consultant when it comes to improving or refining your business operations. However, knowing what factors the business buyers' market has traditionally appreciated the most about the businesses that they buy will allow you to concentrate your improvement efforts in those directions.

Depending on the service level of the valuation report at Boyce & Associates Business Valuations, clients can choose to receive a Zoom or teleconference call to go into the report and answer any questions they might have. A business valuation report contains a lot of information that builds up to the numeric value of the business. Understanding these value drivers can help you improve your business and your business's value.

_____________________________________________________________________________________

Thomas E. Kemler, CFA, CVA, applies almost 40 years of experience as a financial industry professional to the businesses that he values for Boyce & Associates Business Valuations. He has prepared business valuations for situations including, but not limited to, business buyers, business sellers, divorce settlements, estate tax returns, generational gifting, buy-sell agreements, phantom stock awards, principal's life insurance coverage, and SBA loan documentation.

Three Challenges Women Face for Financial Planning

Mon, 26 Aug 2024 18:07:00 GMT

Charts of the Week - August 25, 2024

Sun, 25 Aug 2024 22:08:00 GMT

Charts & Chat - August 25, 2024

Sun, 25 Aug 2024 22:00:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. AI stock earnings decelerating; market leadership may change; 2. revenue growth in line, although some sectors slowing; recession indicators falling; consumption and savings updates by income cohort 3. capital spending patterns look favorable; some pockets of consumer delinquency (auto loans) 4. bulls outweigh bears; individual stock ownership at high point 5. Real interest rates continue to climb; high probability of rate cut next month...question is how much to cut and how many cuts before the end of the year 6. crude oil stocks low, although domestic production is near peak; weaker price outlook

Charts & Chat - August 18, 2024

Sun, 18 Aug 2024 18:47:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. the recent inflation reports, which were better than expected & allow the Fed to lower rates next month 2. positive retail sales highlights the resiliency of the consumer 3. manufacturing somewhat stable, mixed commodities, strong growth from community banks 4. housing remained mired in slump, although borrowing rates lower 5. national debt, interest expense moving higher - potential crowding out of government spending 6. expected earnings growth for S&P 500 remains favorable; margins/probability stable; equal weight index remains at a significant value discount to the overall S&P 500 7. Money flows from retail and foreign investors has been robust 8. China real estate and banking remain in a funk...

Charts of the Week - August 18, 2024

Sun, 18 Aug 2024 14:55:00 GMT

Charts & Chat - August 11, 2024

Sun, 11 Aug 2024 22:15:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. market corrections are natural - some statistics to support 2. volatility higher, earnings deceleration; relative long term outlook for small caps positive, however 3. consumer spending softening, some increase in delinquencies 4. credit still tight; wages higher but falling; rent growth subdued - path for falling inflation intact, paving the way for interest rate decline

What Are Trusts & Do I Need One?

Fri, 26 Jul 2024 19:18:00 GMT

Trusts are a common estate planning tool drafted by estate planning attorneys to achieve a wide variety of objectives including asset protection, legacy goals, privacy, special needs planning, and navigating complex family dynamics to name a few. As such, trusts are created in many different types with specific legal provisions that specify exactly how and when assets pass to the beneficiaries. Important to note, not all types of trusts will achieve all of the objectives making it important to select the correct type of trust. To help develop a primer on trusts, we will cover some of the basic trust lingo and common types of trusts in this article.

So, what is a trust? A trust is a legal entity created by an attorney that arranges for a fiduciary, called a trustee, to hold assets on behalf of the grantor for a beneficiary or multiple beneficiaries.

Let’s define some important trust terms:

Probate : the legal process occurring when a person dies that involves validation and administration of their will, or if no will was created, distribution of the estate according to state law.

Trustee : a person or firm with a fiduciary responsibility that holds title to property or assets for the trust beneficiaries.

Grantor : the individual or entity that creates a trust.

Beneficiary : the individual or entity who receives the assets within trust.

Revocable : A type of trust that allows the grantor to retain control of the assets in trust during their lifetime. After the grantor’s death, the trust becomes irrevocable, and if properly funded, can act as a will substitute.

Irrevocable : A type of trust that typically transfers assets out of your (the grantor’s) estate.

Testamentary Trust : Outlined in a will and created through the will after death.

Inter Vivos (also called “Living”) Trust : Created and funded during the life of the grantor.

Now that you have some basic trust language in your vocabulary, it’s time to look at a few basic types of trusts and why you might want to consider one. Ultimately, you will want to consult with an estate planning attorney prior to deciding if a trust is appropriate and which type of trust suits your objectives.

Below is a list of common types of trusts:

Marital (also known as “A”) Trust*

Bypass (also known as “B”) Trust*

Irrevocable life insurance trust (also known as ILIT)

Charitable lead trust

Charitable remainder trust

Generation Skipping Trust (also known as GSST)

Qualified Terminable Interest Property (QTIP) Trust

Grantor Retained Annuity Trust (GRAT)

*These trusts are often combined to create a Revocable “A/B” Trust.

An important consideration in selecting the right estate planning strategy is the ability to retain flexibility. Changes in the estate tax exemption, such as that of the 2017 Tax Cuts and Jobs Act (TJCA) which more than doubled the exemption from $5.4 million in 2017 to $13.61 million in 2024, can dramatically change the approach used by estate planners. The TCJA reduced the reach of the federal estate tax to historic lows, with 2019 seeing only 8 of every 10,000 people who died with an estate large enough to trigger the tax according to the Institute on Taxation and Economic Policy.

In summary, as you work with your advisors on your estate plan keep in mind that the political and legislative environment can make appropriate strategies a moving target. Revisit your plan every 3-5 years or when a significant change in law or life happens. Remember, the best estate plans will have flexibility built-in, accounting for the current tax and legal environment, and be designed to achieve your legacy goals.

Charts & Chat - July 14, 2024

Sun, 14 Jul 2024 17:28:00 GMT

This week, CEO Eric Boyce, CFA discusses:

Market Minutes - July 7, 2024

Sun, 07 Jul 2024 03:05:00 GMT

CEO Eric Boyce, CFA discusses the first help of the year in the investment markets and economy, and perhaps what we should expect looking ahead..

https://podcasters.spotify.com/pod/show/eric-boyce3/episodes/Boyce--Associates-Market-Minutes---July-7--2024-e2lp35f

Kendra Scott Fundraiser Benefiting Reveal Resources.

Wed, 03 Jul 2024 14:53:00 GMT

On April 16th, Kendra Scott agreed to do a fundraiser for our local food pantry, Reveal Resources. We had an amazing turn out with friends and family. Kendra Scott donates 10% of all sales to the company we choose. If you haven’t heard of Reveal Resources, you need to. They are a faith focused, nonprofit who give boxes of food and diapers weekly to families in need. They also provide clothing as well. This is right in our backyard here in Cedar Park! They are always looking for volunteers to help on Monday evenings. You would hand out boxes to the families as they drive through with their cars. This would be a great opportunity for your family to serve together. Also, if you want to donate food, that is always a need. If you want to volunteer or have questions, please reach out to the center at 512-981-7721. Here is a list of foods they currently need:

Thank you to everyone who participated in the fundraiser! We appreciate all of you!

Charts & Chat - June 30, 2024

Sun, 30 Jun 2024 21:21:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. fiscal budget discussion and net interest burden heading into the summer political conventions 2. labor slowing, corporate profits remain high 3. economic surprise index stalling, high new home inventory, commercial starts at interim lows. 4. momentum trade still at work; international stocks have value 5. tight credit and high yield spreads would suggest increase in cooperate capital spending. volatility likely to increase heading into the election.

Charts & Chat - June 23, 2024

Sun, 23 Jun 2024 16:25:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. retail sales - consumer slowing a bit 2. manufacturing better than expected - infrastructure capital spending is an investable theme 3. savings rate likely lower for a while; some stress in rent and credit card delinquencies 4. investor optimism high, low recession expectations 5. market breadth low, but likely to improve based on earnings expectations 6. value versus growth - value looking more optimistic 7. alternative investments have merit 8. election income tax themes - data versus narrative

Charts & Chat - June 9, 2024

Sun, 09 Jun 2024 16:09:00 GMT

This week, CEO Eric Boyce, CFA discusses:

Charts & Chat - June 2, 2024

Sun, 02 Jun 2024 00:47:00 GMT

This week, CEO Eric Boyce, CFA discusses:

Five Facts on Planning for the Cost of College

Tue, 28 May 2024 21:14:00 GMT

It is no secret that the cost of college has skyrocketed in recent years. In fact, college tuition has increased faster than inflation for four decades, even doubling and tripling the inflation rate

in some years. With no end in sight to the increasing cost of college, planning for how to pay for

this higher education is becoming an increasingly crucial part of the financial planning process.

Moreover, the college application process is complex and often intimidating. This can cause

families to miss out on opportunities that could have ended up decreasing this huge price tag.

With that, here are five facts that many families are unaware of when beginning to pay for

college.

1. There is no income amount that disqualifies a family from receiving need based

aid. One of the largest mistaken assumptions families make each year is claiming that “I

make too much, I will never qualify for need based aid.” Each family’s need is calculated

using the Student Aid Index (SAI) on the Free Application for Student Aid (FAFSA). This

will take into account the parents’ income, assets, and the student’s income and assets.

This will generate a number that will determine how much aid, if any, a student will

qualify for. However, some assets must be reported with FAFSA, while others do not. For

some families, simple asset repositioning strategies can help them qualify for aid that

they otherwise would not have received.

2. College planning does not begin when the student is nearing graduation. The most

important contribution to college is a prepared student. GPA is cumulative and begins

the day the student walks into high school their freshman year. When it comes to

qualifying for need based aid, the income is determined by the parents’ base year. This

is the year from January of the student’s sophomore year to December of their junior

year. In other words, the full calendar year before their senior year. Any decisions you

make during your student’s base year will directly affect your qualification for need based

aid. When it comes to saving and planning for college, it is never too early to plan.

3. If a family does not qualify for need based aid, there are still strategies to

indirectly minimize the cost of college. There are several vehicles that can utilize tax

advantaged and asset advantaged strategies to save for college. Determining how to

save for college with the maximum asset growth and minimum tax liability can still save

families money. Commonly known funding vehicles such as section 529 plans work

effectively for some. However, there are limitations to what the funds can be used for.

What if the student does not wish to continue their education? There are other tools that

are more flexible and can be useful for certain families.

4. There is a difference between sticker price and net price. The sticker price is the

posted Cost of Attendance (COA) at each school. However, need and merit based aid

must be factored in before determining the net price, or what a family actually pays to

attend that school. Often schools with a high sticker price will be more willing to give aid

to a qualified student, which could result in the net price being lower than a school with a

low sticker price, but reluctant to give out aid.

5. The loan crisis is not all with the students, much of it is with the parents. Once

again, college is expensive. Some families may need to utilize loans to help pay for the

cost of college. There are several various public and private loans that families can use.

However, some are very open to pitfalls because of financial mistakes. There are a lot of

headlines today discussing the student loan crisis, but it is a bit misconceived. While

there are certainly outlying students who are stuck with six figures of debt, the real crisis

is with the parents. In many cases, parents are capable of borrowing the entire cost of

college. This has led to parents borrowing back way more than they could afford to pay

back before retirement. This has caused families to have to push back their retirement in

order to generate adequate income to pay off these loans. The important takeaway here

is that covering the cost of college should never come at the expense of a successful

retirement.

Charts & Chat - May 27, 2024

Mon, 27 May 2024 20:04:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. earnings estimates are rising heading into second half of 2024, market estimates provide limited upside as earnings grow into multiples. 2. Importantly, though, earnings breadth for the S&P 500 is improving beyond the Mag 7 stocks - positive for market health 3. credit spreads tight, some opportunity in marginally investment grade bonds which are on negative credit watch. 4. Reminders on the power of diversification, long term horizons, reinvested dividends, and compounded return. 5. Reminders about how being invested during interim pockets of volatility can often lead to outsized investment returns over time. 6. US PMI for manufacturing improving, and services remains in expansion. Global growth also looking brighter...

Charts & Chat - May 20, 2024

Sun, 19 May 2024 21:19:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. recent inflation data at the producer and consumer level - analysis and implications 2. money supply growth negative - positive for disinflation over time 3. labor softening, consumers low on excess savings, increased credit card delinquency; yet, real wages remain high, providing continued spending power 4. manufacturing turning a slow corner 5. stocks back to near overbought; bond yields off interim peaks 6. strong foreign interest in US stocks/bonds (except for China)

Charts & Chat - May 13, 2024

Mon, 13 May 2024 20:58:00 GMT

This week, CEO Eric Boyce discusses: 1. estimates for 2nd quarter economic growth increasing to +4% annual rate; recession mentions in earnings calls are receding 2. labor market little softer, but still remains at or near full employment. 3. increased AI mentions in earnings calls suggests the implementation of AI into business processes next few years will help drive significant productivity enhancements 4. Fed rate cuts likely to be fewer and farther out - stocks can perform in that environment 5. private capital sitting on a lot of funds, exits are harder to come by right now 6. strong fund flows into fixed income, higher yield, and equities, despite disparity of large to small caps & capitalization weighted stocks to equal weight 7. Earnings estimates going up; earnings growth will be needed for further stock price appreciation

Presentation for the Cedar Park and Leander Chambers of Commerce May 14, 2024

Sat, 11 May 2024 18:51:45 GMT

Intro/Perspective on Small Business 15 min

Who is on Your Team 40 min

Characteristics of High Performing Businesses 5 min

Effective Entity Structure 5 min

BREAK 5 min

Contingency Planning 7 min

Business Valuation 101 20 min

Value Drivers & Anchors 10 min

The Five Pillars of Value 15 min

Charts & Chat - April 28, 2024

Sun, 28 Apr 2024 19:31:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. GDP report for 1st quarter 2024 (1st reading) lighter than expected, but outlook is better for 2Q 2. PCE Inflation data little heaver than expected, fueling stagflation fears; however, both wages and rents are coming down, providing more disinflationary impulses in the quarter or two ahead 3. increased equity volatility with higher bond yields. 5% corrections are natural and happen 3x per year on average. We just had a 5.5% correction in the S&P 500. 4. current valuations foreshadow lower equity performance over the next decade versus last couple of years; will need to continue to be creative in seeking return 5. housing update - builder sentiment up, new house inventory up, existing sales down, affordability still weak. Lots of apartments coming on line in 2024, office to residential conversions taking place as well...

10 Budgeting Tips to Take Control of Your Finances

Sun, 28 Apr 2024 18:44:34 GMT

Feeling like your money is slipping through your fingers? You're not alone. But don't worry, taking control of your finances is within reach! Here are 10 budgeting tips to get you started:

Know Your Why: Before you dive into spreadsheets, set some goals. What do you want your budget to achieve? Is it saving for a dream vacation, a down payment on a house, or simply gaining peace of mind? Knowing your "why" will keep you motivated.
Track Your Income and Expenses: Awareness is key! Gather your bank statements and receipts to see where your money is actually going. There are many budgeting apps and spreadsheets available to help you with this. If you need suggestions, let us know. We have done extensive research on this now that Mint is not available.
Separate Fixed from Variable: Fixed expenses like rent and car payments stay consistent. While variable spending, like groceries and entertainment, can fluctuate. Knowing the difference helps you plan for both. If you need to cut the budget, you can also break it down further to necessary vs. discretionary. The discretionary will be the category you can adjust to find extra money for savings, if needed.
Embrace Budgeting Techniques: There's no one-size-fits-all approach. Explore options like the 50/30/20 rule (50% needs, 30% wants, 20% savings) or zero-based budgeting (allocating every dollar of income). I’ve taught the Dave Ramsey class, and he uses this technique. Find what works for you and your family.
Automate Savings: When available, set up automatic transfers to your savings account. This "pay yourself first" approach ensures you reach your goals without even thinking about it. One less thing to remember to do for the month.
Tackle Debt: High-interest debt can derail your budget. Focus on paying down those balances with a debt repayment plan. Debt is a thief and can mess up any chance for savings. Take it seriously and aim to be debt free.
Be a Savvy Spender: Identify areas to cut back. Can you have a brown-bag lunch or find cheaper entertainment options? Every little bit adds up!
Build Your Emergency Fund: Life throws curveballs. Aim to save 3-6 months' worth of living expenses to handle unexpected costs without blowing your budget. If your monthly income fluctuates, aim for 6 months of savings. Also, if you have a lot of turnover in your industry save for 6 months. You can keep this in a Flourish savings account (ask us about it if interested) and it can earn 5% for you without any fees or withdrawal penalties.
Review and Refine: Your budget is a living document, not set in stone. Revisit it regularly, adjust as needed, and celebrate your wins! If you have partner, include them and do this as a team. It is important that everyone participates and feels informed about their finances. Reach those goals together!
Make it Fun! Budgeting shouldn't feel like a chore. Reward yourself for reaching milestones and focus on the positive impact on your financial future.

By following these tips, you can take control of your finances and build a brighter financial future! No situation is too far gone to get back on track and reach those life goals you dream about. If you need help, reach out and lets get together to do more planning that you need.

Charts & Chat - April 14, 2024

Sun, 14 Apr 2024 22:46:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. March consumer prices were higher than expected and producer prices were softer than expected, making for a wild ride in the investment market this week. 2. Expectations for rate cuts decreasing, leading to stronger dollar, higher 10-year treasury yields, and higher mortgage rates. 3. commodity prices accelerating, including industrial and precious metals 4. consumer and small business optimism continue to be subdued 5. small caps, industrials, quality and diversification across foreign asset classes should prove beneficial in the months ahead.

Charts & Chat - April 7, 2024

Sun, 07 Apr 2024 01:20:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. Monthly payroll report and labor update 2. international stocks trade at significant discount to domestic 3. 10-year treasury rates appear range bound close to 4.5% 4. Equity money flows are significant; individual investor optimism reigns 5. 1st quarter earnings expected to beat estimates by +5% 6. corporate repurchases has and will likely continue to be a driver of equity returns 7. Preferred Stock emerging as an attractive investment

Charts & Chat - March 31, 2024

Sun, 31 Mar 2024 18:31:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. consensus economic forecasts increasing for 2024, inflation higher for longer but coming down. 2. CPI relief from rents on the way. 3. eye on the data - consumer expectations lag current conditions 4. lending conditions improving, but banks likely to increase loan loss reserves 5. Richmond/Dallas Fed manufacturing data still soft...some softness in Philly Fed 6. house price growth still positive, but decelerating. Size of homes decreasing, yet, affordability remains challenged 7. market exuberance high, volatility low. 8. valuations a bit stretched overall, but not necessarily for the median S&P 500 company. Overall stock market presents pockets of value (i.e. small cap), but overall risk of near term pullback is tangible.

Charts & Chat - March 24, 2024

Mon, 25 Mar 2024 02:39:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. FED's inflation target may be higher than people think 2. Early withdrawals from 401k's rising 3. manufacturing looking better, service sector stable, leading indicators now positive! 4. real wages remain high, observed rents still witnessing negative growth 5. investment risk appetite high, stocks extended - may be time for modest pullback? Bond spreads getting tighter... 6. Increasing household allocation to equities, as well as money market balances.

Financial Planning for Women Needs to Address Four Different Factors From Men’s Planning

Thu, 21 Mar 2024 17:37:00 GMT

As a financial advisor, I’ve learned over the years that women have different financial planning needs compared to men. The most notable factors include a longer life expectancy, gender pay gap, career interruptions due to caregiving responsibilities, and differences in investment behavior. Recognizing and addressing these differences is crucial for financial advisors and individuals alike to develop personalized financial plans that meet women's specific needs and goals. If not addressed, women will continue to experience financial and emotional vulnerability later in life.

Factor #1 - Women have a longer life expectancy. Recent data from CDC show that on average, females live to age 79 and men to 73, a difference of +6 years. This means women’s retirement income needs to last longer. Six years of income, at an average of $80,000 a year, equals almost a half million extra, in today’s dollars, that women will need.

Women also require LTC for longer durations than men, typically 4 years vs. a male’s need for 2 years of care. Often by the time the female needs care, assets have been depleted for the male’s needs. This is shown in Medicare statistics. Older women represent seven in ten (72%) of all Medicare beneficiaries living in nursing homes, assisted living facilities, and other long-term care facilities.

Factor #2 - Despite progress, women still earn less than men on average for similar work. This can affect the ability to adequately save for retirement, invest, and achieve other financial goals. According to the most recent statistics from the World Economic Forum, women on average earn $25,000 annually less than men for doing the exact same job. This coincides directly with the amount Social Security will be later in life.

Factor #3 - Generally speaking, women have a deeply embedded instinct to prioritize family and caregiving. By nature, women are more likely to take career breaks or reduce their work hours to care for children and/or aging parents. These interruptions can impact their earning potential, retirement savings, and eligibility for workplace benefits like employer-sponsored retirement plans.

This change or break in employment directly corresponds to a lower overall % saved. According to a recent Goldman Sachs study, two four-year gaps (one early/mid-career and one later) are shown to reduce retirement savings up to 35% for women. With the added factor of periods of part time work or exciting the traditional workforce completely to raise children and/or care for aging family members, social security income will also typically be less than a males.

Factor #4 - Research suggests that women tend to be more risk-averse investors than men, preferring safer but potentially lower-return investments. Financial planning should take into account individual risk tolerance and investment preferences and proactively find alternative ways to ensure females can create an adequate retirement strategy.

Through my years of sitting down with couples and individuals, the four Key factors such as longer life expectancy, the gender pay gap, career interruptions due to caregiving responsibilities, and variations in investment behavior stand out and must be addressed for a financial plan to be successful for women. It is essential for financial advisors and individuals alike to acknowledge and cater to these differences in order to craft tailored financial plans that align with women's unique needs and aspirations. Failure to do so may perpetuate financial and emotional vulnerability.

Lastly, seeking guidance from financial advisors who understand these specific needs can help women develop tailored retirement plans that provide the security and peace of mind they desire.

Charts & Chat - March 17, 2024

Sun, 17 Mar 2024 17:07:00 GMT

This week, CEO Eric Boyce discusses: 1. inflation remains sticky, especially rents and services, but there is expectations for further reduction 2. analysis of recent trends in CPI, PCE and PPI - patience required in getting to the 2% Fed target 3. retail sales below expectations, implications for a tight labor market 4. small business earnings, hiring intentions remain suppressed 5. household financial strength anchored by housing, equities 6. private debt markets set to explode 7. equity fund flows, buyback increases, higher liquidity, and high valuations set the stage for continued growth but a potential pullback near term

Charts & Chat - March 10, 2024

Sun, 10 Mar 2024 20:11:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. equity sentiment and fund flows remain positive, even if valuations are getting stretched. 2. Clear disconnect between Mag 7 and rest of the market in terms of value, contribution to earnings, etc.; small-mid caps more attractive 3. Fixed Income - credit quality, optimism on high yield remains strong, munis overvalued relative to treasuries 4. Service inflation, input prices, new orders all look better. Services PMI remains +50. 5. revolving credit, credit card balances, interest rates and delinquencies all increasing - not at alarm stages...yet. 6. labor market trends remains strong, real earnings remain positive 7. BENEFITS OF SAVING EARLY - chart

Charts & Chat - March 3, 2024

Sun, 03 Mar 2024 02:27:00 GMT

This week, CEO Eric Boyce discusses: 1. PCE data in line, "super core" inflation ran hotter last month, trend is down but will take time. January data can be noisy 2. personal income moving higher, but interest as percent of expenditures also going up 3. Housing is improving, price growth once again is positive 4. Leading indicators still negative, but less so - shaping up for potential soft landing scenario 5. stock market confidence is high, prices relative to moving averages are stretched, potentially setting up modest market pullback 6. credit spreads are really tight for low rated bonds, meaning there is high confidence in credit quality...

Charts & Chat - February 18, 2024

Sun, 18 Feb 2024 18:50:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. review of the most recent inflation report and what it means for interest rates 2. analysis of the retail sales data - don't get too focused on the monthly data; watch for more systemic trends 3. manufacturing remains in a soft patch - positive implications from productivity and spending in the next cycle could be strong 4. small business remains guarded - healthy stance 5. equity opportunity in dividend paying stocks and in international

Charts & Chats - February 11, 2024

Sun, 11 Feb 2024 20:13:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. economic surprise data indicating more optimistic tone. 2. lenders easing credit standards for consumer and commercial (Except for office) 3. Services PMI improving 4. equity valuations higher because of magnificent 7; rest of market only slightly above average. 70%+ of stocks underperformed overall index last year

Economic Presentation & Near Term Outlook from Bryce Gill, Economist with First Trust

Fri, 09 Feb 2024 15:31:00 GMT

Our friend Bryce Gill joins the team of Boyce & Associates once again to share his thoughts on the economy as we head into 2024.

Charts & Chat - February 4, 2024

Sun, 04 Feb 2024 02:57:00 GMT

This week, CEO Eric Boyce discusses: 1. Short term interest rate estimates are changing every week...forecasts suggest rate decreases come later in 2024 2. Payroll strength, hourly earnings nose higher, productivity helping to keep unit labors cost growth low 3. manufacturing recession may be near an end... 4. construction spending in residential positive 5. near term PCE inflation trends near Fed target on annualized basis 6. home prices higher, mortgage rates moving lower 7. equity risk premium low - potential volatility ahead, yet equities best hedge for inflation 8. China data remains sluggish - government censoring bad data

Charts & Chat - January 28, 2024

Sun, 28 Jan 2024 23:33:00 GMT

This week, Eric Boyce, CFA discusses: 1. rolling 10-year equity returns - average returns, return drivers, and what the current market valuation could suggest 2. economic growth better than expected, drivers, expectations looking ahead into 2024 3. Rate cut probabilities, inflation expectations & trends, sticky wages, and lingering strength in the labor market 4. Manufacturing improvement, although supplier costs have increased due to shipping issues 5. LEI down 21 straight months, may have some disconnect with post-pandemic economic trends 6. China housing weakness, US consumer purchasing shift away from brick and mortar

Raising Money-Smart Kids: Fun Family Financial Ideas

Sun, 21 Jan 2024 20:53:00 GMT

As parents, we want to equip our children with the skills they need to thrive in life, and financial literacy is no exception. But talking about money with kids can feel awkward or overwhelming. Fear not! Here are some fun and engaging family financial ideas to spark your child's interest in money matters, from piggy banks to budgeting basics:

Early Sprouts (Ages 3-5):

Play Store or Restaurant: Set up a pretend grocery store with real or play food. Let your child "buy" items with pretend money, teaching them about counting, basic transactions, and the concept of scarcity (they can't buy everything!).
Allowance Adventures: Start with a small allowance in a clear jar. Watch the coins and bills add up, visually reinforcing the concept of saving. Let them choose between saving for a special toy or spending it on a small treat, introducing budgeting and delayed gratification.
Piggy Bank Power: A classic for a reason! Decorate a piggy bank together and let your child proudly deposit their earnings. Celebrate milestones like filling it up and discuss saving goals.

Budding Entrepreneurs (Ages 6-10):

Chore Charades: Create a chore chart with different point values for each task. Let your child "earn" their allowance or privileges by completing chores, teaching responsibility and the link between work and reward.
Chore chart with different point values
Market Mavens: Visit a local farmer's market together. Discuss budgeting for purchases, comparing prices, and the value of supporting local businesses. Let them help pick out fruits or veggies for a healthy snack.
Lemonade Stand Success: Set up a lemonade stand on a sunny day. Let your child calculate costs, set prices, make changes, and track profits. This hands-on experience teaches basic economics and entrepreneurial spirit.

Teen Titans (Ages 11-17):

Budget Buddies: Involve your teen in family budget discussions. Explain income, expenses, and saving goals. Let them brainstorm ways to save money or contribute to the household financially.
Family budget discussion
Banking Bonanza: Open a savings account with your teen and track its growth online. Explain interest rates and the power of compound interest. Encourage them to set saving goals for bigger purchases or college.
Investing Insiders: Research age-appropriate investment options like mutual funds or ETFs. Discuss risk tolerance and diversification. Consider opening a custodial investment account for them to learn about the stock market firsthand. My dad did this with me and I began to watch the closing bell and follow the stock we bought together. It is why I’m a financial advisor today!

Important Tips:

Keep it age-appropriate: Tailor your activities and discussions to your child's understanding level.
Make it fun and engaging: Use games (monopoly, Life, etc…), stories, and real-life examples to keep their interest.
Lead by example: Show your children your own responsible financial habits, like budgeting, saving, and paying bills on time. It’s okay to tell your kids that something is not in the budget and it will have to wait till next month.
Open communication: Encourage questions and honest conversations about money. Create a safe space for them to learn and make mistakes.

By planting these financial seeds early, you'll be equipping your kids with the knowledge and confidence they need to make smart financial decisions throughout their lives. Remember, raising money-smart kids is a journey, not a destination. Have fun, celebrate their progress, and watch them blossom into financially responsible individuals!

I hope these ideas inspire you to turn family time into financial learning time! If we don’t teach our kids the value and importance of money, the World will. Let’s teach them financial wellness so it will help them all their lives and down to multiple generations. Good luck and have fun!

Here are some great articles and resources to look at for more ideas:

Warren Buffett's 6 tricks to teach kids about money

Secret Millionaires Club Cartoon's for kids

Boyce & Associates Introduces High Yield Savings Program for Clients

Sun, 21 Jan 2024 17:47:00 GMT

Boyce & Associates Wealth Consulting is pleased to announce that we have partnered with Flourish Financial, LLC to provide our clients with a no-cost cash management program for non-investment cash held away from Charles Schwab.

Flourish Cash is an invitation-only cash account designed exclusively for clients of independent financial advisors with the goal of earning more interest on your cash than you would earn at a traditional bank. Flourish Cash offers very competitive interest rates, zero account fees, and easy access to your money.

Here are some of the key things to know about Flourish Cash:

Interest rates: Flourish Cash offers tiered interest rates, with the highest rate (up to 5.00% APY) applying to the first $1 million in your account. This is significantly higher than the national average savings account rate.
No fees: There are no monthly fees, annual fees, or minimum balance requirements for Flourish Cash.
Easy access to your money: You can easily access your money through the Flourish app or website. You can also set up automatic transfers to and from your other bank accounts.
FDIC insurance: Your deposits in Flourish Cash are FDIC-insured up to $4,000,000 for both individual account and business accounts.

Flourish Cash is a great option for savers who are looking for a high-yield savings account with no fees. Here are some additional details about Flourish Cash:

Eligibility: Flourish Cash is currently only available to clients of Boyce & Associates Wealth Consulting, Inc..
Funding: You can fund your Flourish Cash account with a linked bank account.
Withdrawals: You can withdraw your money from Flourish Cash at any time.

Based in New York City, Flourish Financial, LLC ( Flourish Cash Management Website ) is owned by Mass Mutual, one of the largest and most stable insurance companies in the country.

Charts & Chat - January 21, 2024

Sun, 21 Jan 2024 03:52:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Beige Book, Retail Sales stronger - propped up by real wage growth

2. home builder sentiment, housing starts improving

3. manufacturing remains sluggish, per Philly Fed data

4. near term expectations high, perhaps too enthusiastic; longer term "retirement expectations" a bit more muted though

5. update on corporate, household financial health

6. power of long term compounding of returns illustrated, long term benefit of stocks versus cash

7 There is a LOT of cash on the sidelines; should help to support investment growth longer term.

Charts & Chat - January 14, 2024

Sun, 14 Jan 2024 00:15:00 GMT

This week, CEO Eric Boyce discusses:

1. recent inflation data, implications, risks of higher shipping costs

2. update on wages, rents

3. growth outlook and risk of recession heading into 2024

4. personal credit update

5. commercial lending tighter, rise of the non-bank

6. business sentiment weaker, but financial condition looks better

7. commodity (lumbar) cost relief; domestic oil production higher

8. equity optimism high, what that means for expected returns.

9. higher equity margins and earnings expected

Charts & Chat - January 7, 2024

Sun, 07 Jan 2024 17:10:00 GMT

This week, CEO Eric Boyce discusses: 1. Things on our mind heading into the new year... 2. risk of cost increases from the Gaza conflict fallout, although logistics costs overall much lower than during the supply chain crunch 3. Strong Growth in Texas v. US Growth 4. Dallas Fed Research - fixed investment (non-residential and residential investment) are much more important recession indicators than consumer spending... 5. Manufacturing still soft; labor market remains strong but decelerating 6. apartment rents dropping, energy costs remain muted 7. International markets are HISTORICALLY cheap relative to US 8. Playing investment themes will be more important in 2024 than just playing the indexes.

Five Steps to Ring in a Prosperous New Year

Fri, 05 Jan 2024 20:43:00 GMT

As the festive glitter settles and the echoes of "Happy New Year!" fade, a question whispers a midst the resolutions: how can we make this year a financially prosperous one? With a little planning and some small steps, the new year can be more than just a fresh start; it can be a springboard to a financially sound future.

Step #1 Know Your Score: Let's begin with a foundation. Checking your credit score is like taking your financial temperature. Identifying any blemishes can help you prioritize tackling issues like overdue payments or incorrect information. Aim for a healthy score to unlock better loan rates and potentially boost your insurance premiums. You can get a free score check on Experian. Continue to take a look every year!

Step #2 Budgeting Buddy: Budgets are not boring! Think of them as your financial roadmap. They are crucial to track your income and expenses, categorize spending, and identify areas for potential savings. There are many tools and apps to make budgeting fun and interactive. Remember, a budget is a living document – adjust it as your needs and income evolve. If you need a budgeting calculator, let me know, and I will email you what we use.

Step #3 Savings Sizzle: Every budget needs a savings sidekick. Start small, perhaps with a round-up app that funnels spare change into a high-yield savings account. Consider automatic transfers to build a safety net or fuel-specific goals like a down payment or vacation. Remember, even small, consistent savings can turn into big bucks over time. Banks seem to be lagging on savings interest rates; ask us if you have cash sitting around making less than 5%. We can help!

Step #4 Debt Demolition Crew: High-interest debt is a financial gremlin, siphoning off your hard-earned cash. Debt is a thief looking to take away your money. Prioritize paying off credit card debt if you have it. Start with the highest interest rate and start chipping away. Also, explore consolidation options and consider strategies like the snowball or avalanche method to gain momentum. There are many zero-percent credit cards to which you can transfer the balance to. Usually, there is a fee to do this, but you can get ahead of a 20% interest rate if you look at this method. Every chunk of debt conquered gives you financial breathing room. Let’s get the thieves out of our household!

Step #5 Investment Inspiration: The new year is a perfect time to explore investing. Even with small amounts, starting early can reap the benefits of compound interest. Remember, investing is a marathon, not a sprint. If your company has a retirement account, make sure you ask if they have a match and do as much as you can. If they match 100% up to 3%, put in the full 3%. Investing can get complex, so please use us as a resource. This is what we shine at! We can put together a financial plan and help you get to the finish line!

Financial Finish Line!

You did it! Making smart financial choices is a lifestyle, not a one-time resolution. However, hitting the reset button at the beginning of every new year is a healthy habit.

Stay focused by setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). Reward yourself for milestones reached and track your progress. Education is crucial – read financial blogs, listen to podcasts, and learn from experts. Also, reach out to me and let me assist you on your journey to the finish line.

Finally, remember everyone's financial journey is unique. Don't compare yourself to others; celebrate your own progress, big or small. Embrace the new year as an opportunity for financial growth and make smart choices that lead to an amazing year. So, raise a glass (a celebratory mocktail perhaps!), and say cheers to a financially fit and fabulous new year!

Welcoming 2024

Fri, 05 Jan 2024 20:24:00 GMT

Dear Boyce & Associates Friends and Family,

As we enter the new year, your team at Boyce & Associates would like to take a moment to express our sincere gratitude for your trust and confidence. It has been a privilege to partner with you on your financial journey, and we look forward to continued progress in 2024.

During the past year, we welcomed a new brand, website, office location, newsletter, and tools to help us analyze and consult with our clients. Looking ahead, we plan to enhance our communication with timely articles and information we believe will interest clients, and we also plan to host more online and in-person educational events, including an economic update in early February. For our business owner clients, we will also introduce a quarterly newsletter and education highlighting our separate certified business appraisal practice, Boyce & Associates Business Valuations.

Two particular items of note. I am very excited to announce that Boyce & Associates is in the process of acquiring an established and respected college planning practice, and we expect to be able to share more information on that very soon. In addition, we will be rolling out soon a complimentary cash management platform to allow our clients to obtain attractive yields on idle non-investment cash balances currently held in low yielding commercial bank accounts.

As always, we take our community stewardship seriously, and our team and company will continue to find ways to give back and pay it forward. We hope to plan another event this summer with a charitable intent, so please stay tuned.

In addition, we are researching ways to both enhance portfolio success and manage risk, including but not limited to strategies surrounding concentrated positions, tax efficiency, structured notes, and alternative investments such as private credit and private equity.

From an investment and economic standpoint, 2023 presented us with unique opportunities and challenges. As of December 21, 2023, the economic picture was mixed, with some distinctly positive signs as well as a few areas we will need to monitor:

Positive Developments:

Considerations for 2024:

However, amidst these uncertainties, it is important to remember our shared commitment to your long-term financial goals. We are here to help you navigate the important retirement, estate, tax, and educational planning required to help you get there. Market fluctuations are inevitable; however, staying invested for the long term remains crucial for wealth creation, recognizing that life events like career transitions, family changes, or retirement goals can also alter your financial landscape. We'll continue to keep you updated on economic trends and market developments, providing clear insights to help inform and guide important financial decisions.

We encourage you to stay in touch, no matter how big or small the question. Our doors are always open for regular check-ins, strategy discussions, and any concerns you may have. Your financial journey is our journey, too, and we are here to support you every step of the way. As we bid farewell to 2023 and welcome the possibilities of 2024, we do so with optimism and unwavering dedication to your financial success.

On behalf of the entire team at Boyce & Associates, I wish you a safe, prosperous, and joyous New Year.

Sincerely,

Eric C. Boyce, CFA

President & CEO

Charts & Chat - Year End Analysis 2023

Sun, 24 Dec 2023 23:51:00 GMT

CEO Eric Boyce, CFA closes out the year with observations on: 1. Inflation and trends heading into 2024 2. Wages , Growth & Employment 3. Interest burden on government spending 4. Credit quality - consumer and commercial 5. Refinancing risk for commercial real estate 6. slowing consumer spending 7. Home sales and prices looking a little better with lower mtge rates 8. Low Volatility, valuations - stocks priced for goldilocks scenario 9. Stock price breadth improving even if earnings moderate 10. Small caps, value poised to do better in 2024 11. Bond yields expected to fall - providing better returns in 2024...most crowded trade in investments, however...

Charts & Chat - December 11, 2023

Mon, 11 Dec 2023 20:30:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. recent momentum in the market, some perspective on valuation and on the Magnificent 7 2. credit tightening, but private credit remains strong 3. payroll growth, wages moderating, strength in prime age working population. 4. modest economic growth expectations 4Q, thoughts on prospective rate cuts in 2024 5. spending, income, credit trends evolving 6. rents rolling over, constructions spending stronger, offset by continued manufacturing recession 7. gasoline, nat gas prices lower just in time for the new year...

Charts & Chat - December 4, 2023

Mon, 04 Dec 2023 23:54:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. comments on the upside GDP revision 2. Fed's Beige Book activity weakens again this month 3. consumption lower; confidence index off the trough, however. 4. savings going down, some delinquencies on the rise 5. freight markets looking healthier 6. stock markets looking better; momentum trades are on 7. bond yields off 8. emerging markets remain cheap

Charts & Chat - November 27, 2023

Mon, 27 Nov 2023 02:42:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. Thanksgiving dinner items up 25% in 3 years, amidst continued drop in inflation forecasts through end of 2024

2. importance of holiday season sales to the economy

3. wages sticky, rents falling - impact on inflation

4. Leading economic indicators negative 19 straight months - foreshadow economic slowdown; other data still positive on the margin

5. continued shift in bank deposits into money funds - associated impact on lending capacity

6. mortgage rates falling again, builder sentiment likely to fall, more home buying transactions failing

7. Magnificent 7 stocks will be hard pressed to maintain valuations; majority of market ~3-4% YTD

8. Equal weight S&P 500 P/E suggests 7-9% annual returns next 10 years... 9. 10-years treasury yields down off highs, dollar down YTD, gold up close to $2000/oz

The Importance of Business Valuations

Tue, 21 Nov 2023 17:33:00 GMT

Business owners spend considerable time and energy trying to enhance company value by developing growth plans with well-defined goals. These plans are designed to maximize value over time, but it’s hard to achieve those goals without knowing where to begin.

Not only do owners need to understand what their business is worth today, they also need to know what supports and drives that value. Far too often, owner overconfidence or apathy causes this step to either be neglected or downplayed, or at a minimum, based on incomplete data or conjecture. In this case, a valuation usually serves as a reality check for owners with a biased or uninformed viewpoint on what their business is worth.

The assessment of value is indeed an art form as much as it is a science. Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. An accurate valuation of a closely held business is an essential tool for a business owner to assess both opportunities and opportunity costs as he or she plans for future growth and eventual transition. It provides either a point-in-time assessment of relative value for an owner, or perhaps the price a buyer would be willing to pay to acquire the business.

On its face, business valuation is actually a relatively simple and straightforward concept. A qualified professional first analyzes the subject company’s financial statements and considers comparable transactions, industry ratios and other quantitative and qualitative information. Then, applicable adjustments are made to align the subject company to an industry standard or benchmark. The result is a reasonable assessment of fair value, usually performed under the Uniform Standards of Professional Appraisal Practice (USPAP).

Despite the benefits, however, many business owners are apprehensive about what to expect when going through the valuation process. In some cases, valuations can expose areas of the business which actually take away from value, such as weak financial and accounting controls, under-performing assets and weaker operating ratios relative to its peer group.

Why would a business owner want a valuation?

The traditional answer is that valuations are needed to resolve tax or legal issues. However, valuations are actually performed for a myriad of reasons, including but certainly not limited to selling or acquiring a business. In the cases of death or divorce, valuations are needed to equitably distribute estate assets according to terms spelled out in legal filings.

In addition, owners would generally perform a valuation when attempting to raise strategic capital or obtaining a Small Business Association (SBA) loan. Implementing an Employee Stock Ownership Plan (ESOP) would certainly necessitate an initial and annual valuation, as would creating buy/sell agreements amongst business partners.

Moreover, a formal business valuation can help to reconcile perceived opinions on value, and coupled with a marketability analysis, it can help a business owner determine relative value in the marketplace.

Key considerations for the appraiser

The appraiser will first consider the purpose and objective of the valuation. They will then look at the nature and background of the business, its products and services, as well as the industry life cycle, economic and political environment. Unique factors are then considered, including customer relationships, executive compensation, as well as excess assets, working capital, and liabilities.

Considerations which could have a profound influence on value include goodwill or other intangible assets, the dependency on an owner or key employee(s), diversity of the customer base, market position and the competitive landscape of the industry. There are three widely accepted fundamental methods used in valuing closely held business interests, the asset, income, and market approach. The method(s) most useful in determining final value will depend on several factors, including the purpose of the valuation and the type of company being valued.

The asset approach measures the fair value of the components of a company’s balance sheet, by subtracting liabilities from total assets. This method is most appropriate for asset intensive businesses.

The income approach measures the businesses’ ability to generate income and future cash flow, based on anticipated future profits. This method is most applicable for companies with reasonable earnings visibility.

The market approach measures the value of the business based on either comparable private market transactions or similar publicly-traded companies which have similar industry, size and other performance characteristics.

Exit & Estate Planning Considerations

A business valuation is an essential component of the estate and tax planning process for owners and their families. Since the value of the business often accounts for the bulk of the owner’s net worth, determining a reasonable value is not only critical to retirement planning following the exit from the business, but also the groundwork required to both protect and transfer that wealth to the next generation.

Statistics suggest that most owners don’t do business planning or even plan for their own exit, and as a result, many transactions leave sellers feeling somewhat unfulfilled. If used correctly, however, a thorough valuation can provide that very important starting point in strategic growth planning, as well as some important visibility for an owner contemplating the long term. It can also serve as a meaningful tool as part of a business “gap analysis” to help identify and eliminate the various anchors to value growth during the exit planning process. A valuation incorporated into a comprehensive business assessment should yield higher business growth over time, as well as higher terminal values and selling prices.

November 18, 2018

Eric C. Boyce, CFA is President & CEO, Boyce & Associates Wealth Consulting, Inc. and Boyce & Associates

Business Valuations, LLC

Market Minutes - November 20, 2023

Mon, 20 Nov 2023 23:42:00 GMT

CEO Eric Boyce, CFA is joined by B&A Financial Planning and Wealth Advisor Ian Kloc in a wide discussion about the bull and bear arguments for the market looking out over the coming months.

https://podcasters.spotify.com/pod/show/eric-boyce3/episodes/Boyce--Associates-Market-Minute---November-20--2023-e2c6o5o

Charts & Chat - November 20, 2023

Mon, 20 Nov 2023 21:05:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. retail sales softening and industrial production trending down 2. regional Fed business surveys are mixed 3. government spending and deficits 4. decline in bank lending and rise in private credit 5. issues for small business 6. residential builder sentiment soft and historic rent versus buy gap 7. equity index concentration at record level; new risk on attitude in the market 6. China economic challenges

Boyce & Associates - Market Minutes November 14, 2023

Tue, 14 Nov 2023 03:54:00 GMT

CEO Eric Boyce, CFA discusses the most important issues in the market over the past week, including the most recent October inflation report...

https://podcasters.spotify.com/pod/show/eric-boyce3/episodes/Boyce--Associates---Market-Minutes-Nov-14--2023-e2butao

Charts & Chat - November 14, 2023

Tue, 14 Nov 2023 03:04:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. GDP forecasts have evolved from this summer - more optimism on 2025 and 2026 2. credit card, auto delinquency rising. 3. savings contracting, but spending continues 4. homes prices contracting, gasoline prices off in time for holiday shopping season 5. portfolio perspective - probability of success high and improves the longer the horizon 6. the tech high flyer stocks - gains this year, but got hammered last year 7. bank stocks, emerging markets - very low/attractive relative valuation, but too early for catalyst

Charts & Chat - November 6, 2023

Mon, 06 Nov 2023 21:23:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. shift in equity and bond allocations in light of higher interest rates 2. The great opportunity in bonds when rates migrate down 3. Changes in the yield curve over time 4. Equity drawdowns of 10% are not infrequent - some historical data 5. sticky components of inflation - wages and rents - in downward trend 6. some positive economic data points of note

Special Market Minute - October 31, 2023

Tue, 31 Oct 2023 01:42:00 GMT

CEO Eric Boyce, CFA offers his thoughts on the market and economy following two major investment conferences he attended during the last couple of weeks. He visited with many investment advisors, practice owners, economists and industry practitioners, where he shared and collected observations, perspectives and outlooks. This podcast synthesizes that feedback.

https://spotifyanchor-web.app.link/e/logPXlOmmEb

Charts & Chat - October 30, 2023

Mon, 30 Oct 2023 03:10:00 GMT

** Note: Be on the look out for some summary comments from my two investment conferences over the past two weeks in a special version of Market Minutes **

This week, CEO Eric Boyce, CFA discusses: 1. Better than expected GDP report and the internal data behind it - especially consumption 2. Regional Fed survey data showing sluggish signs; global backdrop more favorable right now 3. Purchasing Managers data (PMI) stronger 4. Rates are more restrictive than short term rates would suggest 5. Equity market likely near-term oversold; Gold acting stronger

Charts & Chat - October 23, 2023

Mon, 23 Oct 2023 19:32:00 GMT

This week, CEO Eric Boyce, CFA discusses: 1. Leading economic indicators down 18 straight months - implications considering coincident indicators remain ok 2. Fed Reserve Beige Book surveys are not consistent with imminent recession 3. Consensus estimates looking for 3-5% growth in 3Q...base case calls for stall but no recession next year...probabilities declining to below 50% 4. Retail sales strong, gasoline prices off 5. Small companies to see higher interest costs, tightening lending standards, but higher return on cash balances 6. Stress in regional banks is not over 7. Stocks falling below moving averages during recent 8% correction, testing technical support levels; outside of magnificent 7, valuations actually look interesting 8. interest rates moving higher, yield curve flattening - bear steepener, bond market could be negative two years in a row...rare, but creates some opportunity 9. China growth slowing, banking sector capitalization

Charts & Chat - October 16, 2023

Mon, 16 Oct 2023 21:13:00 GMT

This week, CEO Eric Boyce, CFA discusses the following charts: 1. the latest CPI inflation report, trends, rents, wages and food prices 2. cost of credit moving materially higher 3. impact of higher interest rates offset by higher earnings and growth estimates 4. older generations helping to support consumption 5. the evolution of private credit continues - trends and observations 6. equity risk premium very low right now - part of the reason of recent equity volatility 7. equity sentiment weak (contrarian indicator) - market may be short term sold

The Perils of Government Over Spending

Sun, 15 Oct 2023 22:19:00 GMT

Nearly all adults have experience with borrowing money. In most cases, we borrow money in order to purchase something we might not otherwise afford. The ability to finance major purchases over a long period of time is the key factor in understanding how our lives are improved by borrowing money. We borrow money from an intermediary, normally known as a bank or credit union. The financial intermediary loans money and accepts the risk of default. Since the lender bears the risk, financial intermediaries have a risk mitigation process known as underwriting. When an individual wants to borrow money, they fill out an application and begin the underwriting process. Basically stated, the underwriting process helps reduce the risk of default by identifying risks that might lead to default. If too many risks are identified, the application is denied. By completing this process properly, financial intermediaries ensure they remain solvent, thus allowing them to lend money to future borrowers.

Governments are ultimately no different than the average consumer, when it comes to borrowing money. The annual budget of any country quite often exceeds the amount of money collected in taxes each year. Just like individual borrowers, governments the world over will borrow funds to finance major purchases or programs. However, one major difference exists. Governments do not borrow money from financial intermediaries but instead, they borrow from current and future taxpayers. Governments will sell sovereign bonds in order to raise money to fund the budget or to pay existing debt. Since there is no intermediary, there is no underwriting process, which as we remember, is a process of mitigating the risk of default. This begs the question, why do we allow the same people spending the money to be the ones to decide if they can borrow more money? Can you imagine the financial chaos that would ensue if we allowed everyone to simply decide for themselves if they could borrow more money? Without the underwriting process, there would be mass default and eventual economic collapse. So how can we ensure governments are borrowing and spending our money wisely, that our elected officials are making prudent decisions and that politicians are not passing on massive debt to future generations?

The simple answer is pay attention and don’t assume all politicians are making good decisions. Fitch is one of three credit rating agencies that assign a credit rating to the United States. In August 2023, Fitch downgraded the US credit rating from AAA to AA+. This is only the second time in the nation’s history that the US sovereign-debt rating has been downgraded. Fitch Ratings cited repeated fights in the US Congress over raising the debt ceiling as a reason for the downgrade. However, it is important to note that this downgrade represents a warning to taxpayers about the US government’s medium and long-term fiscal health, rather than an immediate threat to taxpayers and consumers (2023) If Fitch downgraded the US credit rating for the only the second time in US history and issued warnings about the nations medium and long-term future, we should be concerned.

Below is a chart showing the increase in the amount of debt the US creates vs. the amount of GDP. Notice the increases over the past 20 years. The only time in history our government has spent so much as a percentage of GDP was during WWII.

The reason excess spending and radical increases are problematic is due to the increased interest rate payments. Fitch identifies this as a medium to long term problem since future generations will be tasked with payments. The more politicians overspend now, the more debt and interest payments will be passed on. Since we do not collect enough tax dollars to pay the current debt and interest payments, future generations will bear the burden. This burden may come in the form of higher taxes, reduced government programs, a reduced police force, emergency services and military, reduction of government subsidies or grants, reduced social security or other social programs and diminished economic outlook for decades. As a nation, if we want to avoid future economic calamities and ensure our children do not suffer, we must act more responsibly. We must elect those who understand the potential pitfalls of overspending and work cooperatively to remedy the situation.

(2023). Businesstimes.com.sg. https://www.businesstimes.com.sg/wealth/fitchs-us-downgrade principal-agent-problem-modern-finance

Charts & Chat - October 9, 2023

Mon, 09 Oct 2023 15:59:00 GMT

This Week, CEO Eric Boyce, CFA highlights the following chart subjects: 1. stock sell off, current valuations and trends & what's cheap relatively speaking 2. yields moving higher and high yield spreads 3. bank lending getting tighter, impact on economy 4. household savings, net worth strong, but savings coming down 5. hiring intentions lower, but new business formation strong...wages sticky but trending down...good! 6. manufacturing data stronger, services still in expansion

Charts & Chat - October 2, 2023

Mon, 02 Oct 2023 20:37:00 GMT

This week, Eric Boyce, CFA discusses: 1. background on government shutdowns (although we seem to avoided this one!) 2. probability of recession dropping, CFO confidence rising 3. money supply/rents dropping - should help lower inflation 4. gasoline prices, healthcare moving the other direction, though 5. discussion of core PCE - trailing 3 month annual rate is ~2% 6. equities priced below 5 year average and near the 10 year average; international stocks priced very cheap relative to US 7. immigrants and visas picking up - helps stabilize labor market.

4th Quarter Perspective | OCTOBER 2023

Sun, 01 Oct 2023 21:53:00 GMT

Greetings to our extended Boyce & Associates Family and Friends,

We’ve had a busy summer following our company rebranding and celebration, with most of our staff taking some time to be with their families, trying to beat the heat, and get ready for the fall and new year. As we look forward to the fall, cooler weather, football, and hopefully a little rain, we take stock of the ever fluid environment within the investment markets.

Our team has been staying on top of recent developments that matter for portfolios heading into the 4th quarter of 2023. The investment markets have certainly acted better thus far in 2023 than last year; however, the crosscurrents remain somewhat mixed. We know that inflation is in retreat, albeit slowly, and the Federal Reserve has indicated that it is close to the end of its interest rate increases. Although energy prices have clearly increased as of late, core inflation expectations are well anchored over the next 2-3 years, and we are confident that prices will continue to drop. In fact, if you exclude food and energy and certain measures of housing costs, we have made fairly measurable progress in lowering inflation. But getting to the ultimate inflation target will take time and patience, as there is still some heavy lifting ahead of us.

Investment markets are still trying to assess the path ahead and the final outcome of these changes, however, which will likely lead to some near-term uncertainty being priced into asset prices. During the coming months, we will need to contend with the risk of a government shutdown, labor strikes within the automotive sector, perhaps some additional stress within the regional banking sector, as well as the impact of student loan repayment on retail sales and consumption.

The housing market is reflecting the impact of higher mortgage rates and declining affordability, and the commercial property sector (especially the office market) continues to adjust to the post-pandemic environment. International markets also have some uncertainty. While Germany is close to a recession, we may see potential improvement in near term Chinese economic conditions following a sluggish period of slow growth. Regardless, leadership in these markets remains mixed for the time being, despite attractive valuations, and the strong US dollar strength is putting some stress on foreign central banks.

Overall, we still believe the economy will slow in the coming months, but we also believe the US economy can avoid a recession, barring a policy mistake (i.e. raising rates too much or too quickly). It is a delicate balance, however. Reasons for optimism include positive economic growth during the third quarter, prospects for lower inflation over the next year, a potential peak in interest rates, and relatively strong consumer and strong corporate balance sheets.

Consumer spending, which has been the primary surprise of 2023, remains reasonably supportive, although we have noted a rise in credit balances and a decline in excess savings. The health of the consumer is vital to the near-term story, and the good news here is that not only have real wages improved, but labor markets, while slowing a bit, remain favorable relative to prior economic cycle downturns. The so-called goldilocks scenario would entail both a decline in labor markets just enough to satisfy the Fed as well as a drop in inflation back to its 2% target without sending the economy into recession. On this point, we will have to wait and see…

Corporate earnings are expected to increase heading into 2024, and stock valuations are not too stretched unless these estimates prove to be off the mark. Technology stocks – especially those labeled as benefiting from the growth in artificial intelligence (the “magnificent seven”), have greatly outperformed the rest of the market since March, but the rest of the market is beginning to catch up as speculation over near term economic prospects increases.

Looking at fixed income, 2-year treasury yields are back above 5%, and it appears we are in for higher rates for longer. This is certainly a new paradigm that we will gradually adjust to, but it is good news for savers. Borrowers are indeed paying more for leverage, but higher rates also increase the scrutiny and discretion applied to projects that used to be much easier to fund with cheap money over the past decade. This will likely reduce loan growth, which will help to support slower overall economic growth. Homebuyers are indeed feeling the pinch, and it will likely result in a challenging residential market for the foreseeable future. Credit quality remains acceptable at this point; however, we will need to monitor trends which may indicate change is on the horizon. Interest rates next year may come down, but given the pace of things right now (a potential “soft landing” with stubborn inflation), they may not come down nearly as fast or as much as the consensus is expecting today.

In sum, the surprising strength of the consumer has pushed our economic downtown out a bit, but rising interest rates are helping the Fed do its job. Acknowledging that we may have some near-term speed bumps ahead of us, the medium and longer-term outlooks are favorable. Investment markets tend to anticipate the end of rate tightening and new economic cycles before we see it in the data, so we believe that prudent investment policy diversification, diligence and having the right time horizon always makes good sense.

As always, we appreciate you and your continued support. We are optimistic and constantly looking for investment opportunities which take advantage of current circumstances. We welcome your thoughts and feedback, and we look forward to navigating the next few months alongside you.

My best,

Eric C. BOYCE, CFA

President & CEO

Financial Planning for a Child's College Education

Wed, 27 Sep 2023 01:05:00 GMT

The cost of college is rising steadily, and it's more important than ever for parents to start planning early for their child's education. Here are some tips for financial planning for a child's college education:

Start saving early. The earlier you start saving, the more time your money has to grow. Even if you can only save a small amount each month, it will add up over time.
Open a 529 plan. A 529 plan is a tax-advantaged savings plan designed to help pay for college. There are two types of 529 plans: college savings plans and prepaid tuition plans. College savings plans allow you to invest your money and grow it tax-deferred. Prepaid tuition plans allow you to purchase tuition credits or units in advance, which can then be used to pay for college.
Consider other tax-advantaged savings options. There are other tax-advantaged savings options that you may want to consider, such as Coverdell Education Savings Accounts (ESAs) and Roth IRAs. ESAs allow you to contribute up to $2,000 per year per child, and earnings grow tax-free. Roth IRAs allow you to contribute after-tax dollars, and earnings grow tax-free and withdrawals are tax-free as well.
Look for scholarships and grants. There are many scholarships and grants available to help students pay for college. You can find scholarships by searching online, contacting your child's school, or talking to your child's guidance counselor.
Talk to your child about financial responsibility. It's important to talk to your child about the cost of college and how they can help to pay for it. You can start by teaching them about saving money and budgeting. You can also encourage them to get a part-time job to save money for college.

Here are some additional tips for financial planning for a child's college education:

Set realistic expectations. Don't expect to be able to save enough money to pay for your child's entire college education. The cost of college is rising, so it's important to be realistic about what you can afford.
Be flexible. Your child's college plans may change over time. Be prepared to adjust your financial plans accordingly.
Get help from a financial advisor. A financial advisor can help you create a financial plan for your child's college education. They can also help you choose the right savings options and identify scholarships and grants.

Financial planning for a child's college education can be daunting, but it's important to start early. By following these tips, you can help your child achieve their dream of a college education.

Here are some additional resources that you may find helpful:

The College Board: https://www.collegeboard.org/
Savingforcollege.com: https://www.savingforcollege.com/
The National Association of College and University Business Officers: https://www.nacubo.org/
Your state's department of education: https://www.ed.gov/

If you are looking for a way to improve your financial situation, Boyce & Associates is a great place to start. Take control of your finances and reach your financial goals. Click here to get started

Charts & Chat - September 25, 2023

Mon, 25 Sep 2023 17:49:00 GMT

This week, Eric Boyce, CFA discusses: 1. the timing of the lagged effect of monetary tightening 2. Interest rates are rising again, but the yield curve is steepening 3. Lots of compelling reasons to expect an economic soft landing; however, risks remain and some data like the Leading Economic Indicators still would support recession 4. Trend data and correlations do forecast economic slowdown 5. earnings and economic forecasts can be volatile, but recent trends have been positive

Market Minutes - September 25, 2023

Mon, 25 Sep 2023 01:14:00 GMT

CEO Eric Boyce, CFA discusses the activity and key issues with in the current investment markets and economy.

https://podcasters.spotify.com/pod/show/eric-boyce3/episodes/Boyce--Associated-Wealth-Consulting---Market-Minutes-Sept-25--2023-e29nssg

Charts & Chat - September 18, 2023

Mon, 18 Sep 2023 20:01:00 GMT

This week, Eric Boyce, CFA discusses: 1. Various Business surveys suggest weaker economy, labor market ahead 2. Impact of student loan debt repayment, potential government shutdown, and UAW auto sector strike 3. outlook for retail sales 4. outlook for owner's equivalent rent (OER) on inflation 5. higher energy prices and demand expected, along with higher gasoline prices 6. home prices moving higher again; share of home sales from new builds increasing 7. expected future economic growth and equity returns next 10 years not as high as last 10 years.

Market Minutes - August 28, 2023

Tue, 29 Aug 2023 01:27:00 GMT

https://podcasters.spotify.com/pod/show/eric-boyce3/episodes/Boyce--Associates-Market-Minutes---August-28--2023-e28l7qa

Charts & Chat - August 27, 2023

Tue, 29 Aug 2023 00:42:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. historical dividend contribution to total stock market return

2. real yields are headwind for stocks; return still concentrated in the "magnificent 7"

3. manufacturing date relatively strong following weak stretch; investment trends are positive

4. US debt levels, interest expense as percent of spending will become a problem over time

5. housing market feeling the impact of higher rates and lower affordability

6. some stress in credit markets beginning to appear

7. China's secular problem compounding current weakness

Understanding Todays Inflation

Wed, 23 Aug 2023 16:38:00 GMT

The term inflation refers to the rising cost of goods, which in turn, reduces the buying power of currency. There are many factors that can induce inflation but in general, inflation is caused when too much money is chasing too few goods. Therefore, an increase in the money supply (M2 levels) or a reduction of the supply of goods can cause inflation to creep in. An example of this dynamic is easily understood if we look at the real estate market. When interest rates are low, borrowers will more readily borrow money thus increasing the overall money supply and increasing the number of buyers. If the number of buyers increases faster than the inventory of available homes, real estate prices will rise. If the supply of homes increases faster than the number of buyers, prices will decline. Think of it this way- If you are the only person selling a home in a mile radius, and there are 100 buyers, you can demand a premium price for your home. If you are one of 100 people selling a home and there is one buyer, you will need to compete with other sellers by reducing the price of your home. Basically stated, inflation is a product of the supply/demand dynamic.

Putting this into focus in today’s world, we can relatively easily explain how inflation has steadily increased for the past few years. In the early stages of the COVID pandemic, government issued a payday replacement program called PPD (Prearranged Payment and Deposit) This program replaced lost wages due to business closures during that time. Since the PPD program did not increase the money supply, it is not considered part of the inflation problem. However, at that same time, supply chains were disrupted thus reducing the supply of goods. Again, inflation occurs when too much money is chasing too few goods. So, a reduction in supply led to mild inflation. However, inflation soared when the current administration issued several rounds of stimulus for all. Since this stimulus was not a replacement of lost wages, it did increase the money supply at the same time supply chain issues continued to reduce the supply of goods. When there is an increase in the money supply at the same time there is a reduction of the supply of goods, inflation is inevitable.

Now, in 2023, stimulus has stopped, and supply chains are back to normal, so, inflation will more than likely be reduced. However, real wages have not increased at the same pace as inflation so the pain we feel will be long lasting, only subsiding when wage increases catch up to inflation levels. This may take several years. At some point, rising wages will increase the money supply relative to the supply of goods and inflation will creep in again, thus, creating an inflation cycle. For now, I believe we are in the trough of the cycle meaning we shouldn’t see out of control inflation again unless another unexpected economic event occurs.

Charts & Chat - August 20, 2023

Sun, 20 Aug 2023 17:36:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. stock valuations stretched, fueled by earnings expectations, fund flows; stocks less attractive relative to bonds

2. bond rates higher due to increased supply

3. higher real rates may weigh on stocks; TIPS attractive

4. mixed economic data - recent production strong (autos); leading indicators down 15 straight months

5. China - subject to 3 D's - deflation, demographics and high debt - slowdown in front of us...

6. weak housing affordability offset by builder optimism

7. retail sales relatively strong, but set to weaken

Market Minutes - August 7, 2023

Tue, 08 Aug 2023 01:57:00 GMT

CEO Eric Boyce, CFA shares his thoughts on developments in the market over the past week, including the jobs reports and the Fitch downgrade of US debt.

Charts & Chat - August 6, 2023

Mon, 07 Aug 2023 03:48:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. high frequency data positive, for the most part, although retail sales trails prior years

2. labor market still tight, but cracks are evident (hours worked, wage growth)

3. Retail stock investors exuberant, chasing returns

4. Better relative value in bond market - large stocks overvalued, but small caps have better value

5. gold may have short term correction with stronger equity market and lower perceived volatility

6. Economic data mixed (higher bankruptcies, manufacturing contraction, service sector still positive)

Market Minutes - July 24, 2023

Tue, 25 Jul 2023 04:28:00 GMT

CEO Eric Boyce, CFA shares his thoughts on the market and the economy over the past week.

inflation
earnings season
sentiment improving and probability of recession fading a bit
defensive stocks leading for a change

Charts & Chat - July 23, 2023

Sun, 23 Jul 2023 19:52:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. inflation deceleration and implications

2. present consumer expectations remain strong, future expectations dropping

3. Philly Fed current manufacturing conditions weak, expectations look better 6 months out

4. Leading indicators suggest slowing, as does bankruptcy filings, credit tightening by banks

5. Housing appears headed to a stall, but not a crash

6. stock inflows remain strong, bond outflows from high credit to more speculative credit - consistent with increased complacency

Market Minutes - July 16, 2023

Mon, 17 Jul 2023 03:43:00 GMT

Boyce & Associates Wealth Consulting CEO Eric Boyce, CFA shares his thoughts and observations on the investment markets and the economy over the last week. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. Investment advisory services offered through Boyce & Wealth Consulting, Inc., a registered investment adviser.

Charts & Chat - July 16, 2023

Mon, 17 Jul 2023 01:19:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. consumer and producer inflation continues to drop in a positive trend, but when will the Fed end its interest rate increases.

2. credit card delinquencies and bankruptcies are on the rise...amidst the positive economic data, keeping one eye on the cracks developing.

3. Shelter component of consumer inflation coming down - positive for CPI decline next few months.

4. short term interest rates finally above inflation; money supply growth turns positive

5. Stock valuations above 5-yr and 10-yr trends...outlook...?

6. Attractive international stock valuations relative to US

Charts & Chat - July 9, 2023

Sun, 09 Jul 2023 18:18:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. reflecting on the missed estimates heading into 2023 now that we are 1/2 way through the year

2. some areas of economic strength heading into 3rd quarter, especially labor - what the new data is telling us about the pending labor slowdown (wages, etc..)

3. ISM Manufacturing remains weak...implications for the economy and the equity market

4. inflation trending lower, but will take a while to get to 2% target - forward expectations sticky above 2%, tho

5. Implications for the pending resumption of student loan debt payments

6. Stock market valuation headwinds and opportunities

Thoughts on the Economy Heading into Second Half of 2023

Sun, 02 Jul 2023 18:58:00 GMT

Charts & Chat - July 2, 2023

Sun, 02 Jul 2023 18:08:00 GMT

This week, Eric Boyce, CFA discusses:

1. some positive economic signals & economic surprise index movements

2. households, global savings, debt levels

3. untapped economic benefit from household equity in businesses and real estate

4. lower government spending will anchor economic growth - trending to a technical recession on data the NBER follows

5. valuations high, especially when earnings estimates for S&P 500 are declining

6. 2 year treasury keeps going up; meanwhile, 10 year treasury remains anchored - yield curve further inverted

Business Spotlight Featuring CEO Eric Boyce

Thu, 29 Jun 2023 03:15:00 GMT

Perspectives On Long Term Investing

Thu, 29 Jun 2023 02:40:00 GMT

CEO Eric Boyce, CFA discusses some of the most important concepts of long term investing:

1. understanding your investment horizon

2. consistency in your investment policy

3. the power of compounding

4. diversification

5. going against the grain

Boyce & Associates First Half Wrap June 28, 2023

Thu, 29 Jun 2023 02:19:00 GMT

Charts & Chat - June 25, 2023

Sun, 25 Jun 2023 19:32:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. compelling data suggesting slowdown, despite improvement in optimism

2. Homebuilder optimism higher, even if sales, prices and inventory is down

3. commodity baskets moving in different directions

4. stocks stretched looking at bonds, valuations and concentrations

5. China CPI almost at deflationary levels - negative implications for global growth

Charts & Chat - June 18, 2023

Sun, 18 Jun 2023 20:58:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. inflation coming down; monthly data sticky but should get relief from rents

2. expectations for inflation and interest rates changing - moving lower

3. rent gains slowing, future benefit to inflation, rent v. buy

4. tight lending conditions should lead to softer labor markets and lower consumer spending

5. regional economic data a little better than expected

6. retail investors more active in the market

Charts & Chat - June 11, 2023

Sun, 11 Jun 2023 20:29:00 GMT

This week, Eric Boyce, CFA discusses:

1. Celebrate what's going right in the economy and the markets, but don't lose sight of what the data is telling us.

2. stocks are bring driven by 5-8 large cap technology stocks riding the AI wave

3. Fed likely to pause on rates this week

4. Rents in negative growth - new inventory likely to keep rents low, helping to reduce inflation

5. consumption up, but also credit card usage and delinquencies

6. job growth, but productivity negative - signs of future slowdown

7. commercial real estate stress on horizon

8. China near term growth issues

Charts & Chat - June 4, 2023

Sun, 04 Jun 2023 02:16:00 GMT

This week, CEO Eric Boyce, CFA discusses:

1. latest jobs update - average earnings, labor participation, small firms still growing labor while large firms trimming

2. home price affordability update, impact on resumption of student loan repayment on consumption

3. small company defaults rising, loan costs rising, loan demand dropping

4. ISM manufacturing update -weakness new orders and backlog

5. narrow stock market leadership, retail flows are chasing returns.

6. quality, value tend to lead after fed rate tightening ends & when growth peaks relative to value

Charts & Chat - May 28, 2023

Wed, 31 May 2023 15:41:00 GMT

This week, CEO Eric Boyce, CFA discusses:

Dividend stocks underperforming thus far in 2023
Market breadth very weak - few tech stocks driving the entire market
Earnings ok, small stocks very weak
Durable goods orders, some economic data ok
Credit getting much tighter, consumers using credit cards to maintain spending
Reasons for falling future inflation; commodity prices falling

Market Minutes - May 22, 2023

Tue, 30 May 2023 19:17:00 GMT

Boyce & Associates Wealth Consulting CEO Eric Boyce, CFA shares his thoughts and observations on the investment markets and the economy over the last week.

Forward-looking statements, estimates, and information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but is not assured as to accuracy. Past performance is not indicative of future results. Boyce & Wealth Consulting, Inc., a registered investment adviser, offers investment advisory services.

Charts & Chat - May 21, 2023

Tue, 30 May 2023 19:13:00 GMT

This week, CEO Eric Boyce, CFA discusses:

Discrepancies in the estimates for both economic growth in 2Q and the pace of Fed rate changes
Home prices and sales are both in decline
Bankruptcies, delinquencies, and credit lending standards are all moving higher.
Wages remain sticky, productivity was negative last quarter
Stocks have limited market breadth right now...

Charts & Chat - May 14, 2023

Tue, 16 May 2023 13:17:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job of articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week and what to look for in the week ahead.

We hope you enjoy...

Charts & Chat - May 7, 2023

Mon, 08 May 2023 17:50:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

We hope you enjoy...

Charts & Chat - April 30, 2023

Mon, 01 May 2023 20:41:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

We hope you enjoy...

Charts & Chat - April 24, 2023

Mon, 24 Apr 2023 18:16:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

We hope you enjoy...!

Charts & Chat - April 12, 2023

Wed, 12 Apr 2023 22:14:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

We hope you enjoy...!

Charts & Chat - April 2, 2023

Tue, 04 Apr 2023 13:54:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

We hope you enjoy...!

Charts & Chat - March 26, 2023

Sun, 26 Mar 2023 05:00:00 GMT

During the course of our daily research, we come across interesting and illustrative charts which do a great job in articulating a point we'd like to make regarding the market or the economy.

I am also including at the end my summary comments on important issues related to the market and economy over the last week, and what to look for in the week ahead.

10 Reasons Why Couples Fight Over Money

Thu, 21 Jul 2022 05:00:00 GMT

One of the main reasons people end up in divorce court issues is money issues. Money is a very emotional part of life due to what it means for any person or family. However, no matter what anyone says, money can buy some measure of happiness and security. After all, if you have enough money to meet your basic needs, you are better off than a large portion of the world.

As a Financial Planner that also works with couples in Divorce, I find time and again that couples struggle with these same challenges. However, if you can conquer most of these, you have a much better chance of living a life of financial happiness.

To avoid these problems, you should talk to a financial planner about the issues. There are also marriage counselors and marriage coaches who can help you deal with these issues in a manner that will make things better for both of you. The earlier you address the problems, the less chance there is for unhappiness and escalation.

About the Author: Lindsey Sharpe is Vice President of Wealth Management and Director of Divorce Financial Planning with BKA Wealth Consulting. Lindsey works with Individual and Business clients to help them develop financial and retirement plans. For clients facing divorce, Lindsey works with them and their attorneys to develop equitable settlements. Lindsey is a Certified Divorce Financial Analyst (CDFA) and an Accredited Asset Management Specialist (AAMS). She is also a Certified Financial Planner (CFP) candidate.

The Importance of Business Valuation

Fri, 17 Jan 2020 06:00:00 GMT

Originally published in the December 2018 Newsletter for the International Business Brokerage Association (IBBA)

Why would a business owner want a valuation?

The traditional answer is that valuations are needed to resolve tax or legal issues. However, valuations are actually performed for a myriad of reasons, including but certainly not limited to selling or acquiring a business. In the cases of death, disability, disaster or divorce, valuations are needed to equitably determine the business assets according to terms spelled out in legal filings.

Valuations are often needed when gifting or donating company stock as part of a charitable contribution, in resolving IRS or shareholder disputes, or when converting a C-corporation to an S-corporation. There could be requirements in a buy/sell, partnership or shareholder agreement that necessitates a business valuation.

The assessment of value is indeed an art form as much as it is a science. Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. An accurate valuation of a closely held business is an essential tool for a business owner to assess both opportunities and opportunity costs as they plan for future growth and eventual transition. It provides either a point-in-time assessment of relative value for an owner, or perhaps the price a buyer would be willing to acquire the business.

What are the key considerations for the business valuation?

The business valuation professional will first consider the purpose and objective of the valuation. They will then look at the nature and background of the business, its products and services, as well as the industry life cycle, economic and political environment. Unique factors are then considered, including customer relationships, executive compensation, as well as excess assets, working capital, and liabilities.

There are three widely accepted fundamental methods used in valuing closely held business interests, the asset, income, and market approach. The methods most useful in determining final value will depend on several factors, including the purpose of the valuation and the type of company being valued.

What are the Exit & Estate planning considerations for retirement?