Financial planning.

Retirement contribution limits are the maximum annual contributions to retirement accounts, subject to inflation adjustments.

How do the increases impact you based on your age?

2025 401(k) Contribution Changes

• 2025 - $23,500
  • Individuals age 50 and up can contribute an additional $7,500 ($31,000 total)
  • Individuals age 60-63 can contribute an additional $11,250 ($34,750 total)
• 2024 - $23,000; individuals age 50 and up can contribute an additional $7,500 ($30,500 total)

2025 Traditional IRA/Roth IRA Contribution Changes

• 2025 - $7,000; individuals age 50 and up can contribute an additional $1,000 ($8,000 total)
• 2024 - $7,000; individuals age 50 and up can contribute an additional $1,000 ($8,000 total)

2025 Simple IRA Contribution Changes

• 2025 - $16,500; individuals age 50 and up can contribute an additional $3,500 ($20,000 total)
• 2024 - $16,000; individuals age 50 and up can contribute an additional $3,500 ($19,500 total)

2025 Indiana 529 Contribution and State Tax Credit Changes

• 2025 - Contributions by Indiana taxpayers qualify for a 20% tax credit with a maximum credit of $1,500 for a $7,500 contribution
• 2024 - Contributions by Indiana taxpayers qualify for a 20% tax credit with a maximum credit of $1,500 for a $7,500 contribution

Bottom Line: Contribution limits increased in 2025, except for the Traditional/Roth IRA and Indiana 529 savings plan.

For 2025, the annual gift tax exclusion is $19,000, meaning a person can give up to $19,000 to as many people as he or she wants without having to pay any taxes on the gifts. Couples are entitled to give $38,000 tax-free to any individual ($19,000 per spouse).

Bottom Line: Annual gifting is an effective tool to transfer wealth to your loved ones or provide financial assistance. Discuss gifting strategies with your financial advisor to ensure gifts are funded in the most tax-efficient manner.

For 2025, the IRS allows a person to give away up to $13.99 million in assets or property over the course of their lifetime and/or as part of their estate. This number will increase to $15 million per person in 2026 (or $30 million per couple).

If a gift exceeds the annual exclusion limit, the difference is simply subtracted from the person’s lifetime exemption limit and no taxes are owed, however a gift tax return should be filed to record the excess gifting amount.

Bottom Line: If your net worth exceeds $13 million, consider discussing estate planning strategies with your financial advisor.

The best investment strategy for you will depend on a few things unique to you:

1. Individual financial goals
2. Investment horizon
3. Risk tolerance

A financial advisor can assist you in creating a tailored investment strategy that takes into account your specific investment objectives, time frame, and risk tolerance.

Bottom Line: Having a reliable financial advisor by your side to navigate you through both favorable and challenging markets is crucial.

A separately managed account (SMA) is an individual brokerage account managed by a professional money manager. The money manager has authority to buy and sell individual securities on behalf of the account holder. A SMA could hold ETFs or hold individual stocks like Coca-Cola Co. (NYSE: KO) and Proctor & Gamble Co. (NYSE: PG).

A mutual fund and ETF are both types of investment vehicles that pool money from multiple investors to purchase a diversified portfolio of securities. They are managed by a professional fund manager and are bought and sold on the stock exchange.

The holdings in an SMA account are 100% dedicated to your needs. With this tailored approach you can take advantage of a custom gameplan to reach your financial goals. Due to the fact that SMAs have individual positions, they generally have a minimum investment requirement. 

In contrast, the holdings in a mutual fund are dedicated to the needs of potentially thousands of shareholders. It’s difficult to meet everyone’s needs so you can tend to get a middle of the road approach with little room for customization. However, the investment minimum is generally lower than an SMA, so mutual funds and ETFs are also great options to achieve diversification in your investment portfolio. 

Bottom Line: In mutual funds or ETFs, investors own shares of the fund, not individual securities. With an SMA, you directly own stocks or bonds in a separate account, allowing for tailored strategies to suit your preferences and tax needs.

Market volatility can be concerning for investors as it can lead to significant fluctuations in the value of their investments.

However, there are several strategies that can be employed to help protect investments from market volatility. Here are a few:

1. Diversification: Diversifying across different asset classes such as stocks, bonds, and real estate spreads risk and minimizes impact on the portfolio.
2. Asset allocation: Maintain a balanced asset allocation based on risk tolerance, investment goals, and time horizon.
3. Regular monitoring: Regularly monitoring and adjusting your portfolio can minimize market volatility impact, including periodic rebalancing for desired asset allocation.
4. Dollar-cost averaging: Regularly investing fixed amounts at regular intervals can help reduce the impact of market volatility over time.

A financial advisor can help you develop a personalized investment plan that considers your risk tolerance, investment goals, and time horizon. They can also provide guidance on how to protect your investments from market volatility while achieving your long-term financial objectives.

Bottom Line: A trusted financial advisor can assist in creating a personalized investment plan based on your risk tolerance, goals, and time horizon, offering guidance on safeguarding investments from market volatility to reach long-term financial objectives.

Handling a windfall of money can be both exciting and overwhelming at the same time. Here are 5 steps you can take to manage it effectively:

1. Take a step back: Before making financial decisions, consider your short-term and long-term financials goals, risks, and challenges.
2. Create a plan: Once clear on your goals, create a financial plan with a trusted financial advisor.
3. Pay off debt: Use your windfall to pay off high-interest debt to reduce overall debt burden and free up income for other financial goals.
4. Build up your emergency fund: Consider using a portion of your windfall to build or boost your emergency fund for unexpected financial setbacks like job loss or medical emergencies.
5. Invest for the future: Consider investing a portion of your windfall based on your goals and risk tolerance to grow wealth and achieve long-term financial goals.

Overall, the key to handling a windfall of money is to approach it strategically and thoughtfully.

Bottom Line: By working with a trusted financial advisor to develop a strategic plan, you can leverage your windfall to enhance your financial future.

No matter why your advisor changed firms, they will ask you to transfer all your assets from the old firm to the new firm. This transfer process is called an ACAT – automated customer account transfer. It’s a method by which we transfer financial assets between banks and brokerage houses.

Before you ever sign an ACAT it’s an incredibly valuable step to review FINRA BrokerCheck. Type in your advisor’s name and city to see results. This will give you an indication if there are any problems traveling with your advisor from the old firm to the new firm. You should be aware if such problems exist.

Important questions to ask yourself about your advisor include:

• What’s their longevity in the industry?
• How long have they had a relationship with you?
• Are there independent sources that suggest they’re reputable?

These are a few ways to help determine if your advisor is making a move for the right reasons and help you feel at ease.

Bottom Line: The short answer to both questions is it depends on the situation. Sometimes it’s of value to you and other times it’s not.

Investing during an election year can be tough on the nerves. Politics can elicit strong emotions and biases, but investors would be wise to tune out the noise and focus on the long term.

Election have essentially made no difference historically when it comes to long term investment returns.

What should matter more to investors is staying invested.

Bottom Line: U.S. stocks have trended up regardless of which party won the White House. 

It can be a very good time for you to invest during a recession for a few reasons:

1. Prices are often lower during recessions, with markets reflecting temporary decreases in corporate profits. This presents an opportunity to purchase assets at a discounted rate.
2. Investors often have low and pessimistic expectations during recessions, which can turn into catalysts for stocks to rise when signs of recovery emerge.
3. Historical data indicates that, over time, market trends tend to show an upward trajectory.

The general rule of thumb for investing is to buy low, sell high. Recessions tend to cause declines in asset prices, making them cheaper and more attractive for investors looking for upside potential.

Bottom Line: Often times, the answer is yes, especially if you have some extra savings, cash on hand, or fixed income positions you are willing to allocate toward a growth asset.