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At ��Ѩ��Ƶ we believe in the value of focusing on the long term, no matter (especially!) if news headlines are begging you to do the opposite. And by and large, our clients follow that advice, understanding that a long-term plan requires a long-term perspective.

But, of course, you want to know the short term is taken care of too, and that’s fair. Your plan is “alive” because things change over decades of time and sometimes you need to react.

Long term doesn’t mean inflexible and unchanging.

So how do you know whether to stay put or make a change now?

It’s not surprising if you’re feeling some uncertainty at the moment. But much of the news headlines are what-ifs, rumors and possibilities. They’re not facts, and they’re not the basis of thoughtful, well-considered updates to your plan. That said, there may be things you can do to prepare for a possible change.

Here’s what we know at this time.

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POTENTIAL (AND REAL) JOB LOSSES

THE REALITY

There’s no question that certain sectors have experienced job losses recently, especially among federal government workers. And for those who have lost jobs or are worried they could be at risk, this has been a painful time.

Keep in mind these losses don’t necessarily paint a complete picture of what’s happening in the overall economy at this point.��The unemployment rate rose slightly in February and March, while March data showed a higher than expected number of jobs added in the U.S.

While you might be hearing the “R word” – recession – in the news, it’s just speculation at this point. No recession has been declared.

WHAT TO DO NOW

You should always be prepared for potential job loss by having a liquid emergency fund. Generally, the more at risk your job is (or if you’re in a one-income household), the bigger your emergency fund may need to be.

If you’re concerned your emergency fund needs to bulk up, focus on that. And think about what costs you could cut if you had to (or cut costs proactively if you’re especially concerned). Our monthly expenses worksheet can help you identify places to cut.

Consider holding off on decisions that would eat into your liquidity, like buying a second home, retiring early or paying off a large debt.

You may even want to position yourself to increase your income, whether that’s upskilling at your current job, pursuing a promotion or starting a side business.

If you’ve had a job loss or early retirement offer, talk to your financial planner right away so we can work through your options together.

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INFLATION STILL A CONCERN

THE REALITY

While the inflation rate has come down since its 2022 highs, those everyday cost increases are now baked in. For the most part, consumer prices are unlikely to go back to pre-Covid levels.

Of course, some prices are rising faster than others; annual inflation rates ranged from a high of almost 60% for eggs down to a price reduction of about -14% on smartphones in February.

The main concern we’re hearing from clients is about the potential effect of tariffs. There’s no doubt they could impact the inflation rate and cause it to rise.

WHAT TO DO NOW

Don’t let inflation force your hand on decisions. If you planned to renovate your home or buy a new car in two years, don’t abandon your plan and spend the money now because you’re concerned about what it might cost later.

From an investment perspective, remember that one of the best protections against inflation is an appropriately diversified portfolio, like the one we’ve built for you. While it can’t keep you from paying more, it can help ensure the value of your investments outpaces inflation in the long run.

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POTENTIAL FOR CHANGING TAX LAWS

THE REALITY

The Tax Cuts and Jobs Act, which had a major impact on federal income taxes, is due to expire at the end of 2025. Without action by Congress, tax rates, deductions, exemptions and a host of other items will revert to their pre-2017 levels.

While it’s likely that some aspects of the TCJA will be extended, we don’t know which ones. It’s also possible for new tax legislation to be introduced at any time.

WHAT TO DO NOW

After this tax season comes to a close, consider meeting with your financial planner if you think you might be missing any foundational tax opportunities. Tax planning should be a year-round event; don’t wait until the end of the year.

That said, we don’t recommend making changes to your plan based on how tax laws might shift. After all, we don’t know what will happen yet. Rest assured that when something changes that could affect financial planning, we’ll let you know and give you guidance on how to approach it.

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INTEREST RATES REMAIN NEAR 20-YEAR HIGHS

THE REALITY

Interest rates in 2025 are a case study in why you shouldn’t let possibilities and predictions drive your financial decisions. Early last year, many people expected rates to drop quickly throughout the year. When that didn’t happen, the prediction shifted to a faster downward trend in 2025.

That could still happen. Or they could stay the same. Or they could go back up, especially if tariffs or other factors increase inflation.

WHAT TO DO NOW

As with inflation, you shouldn’t let interest rates influence major decisions, like when to buy a house. If you need to move and you can afford payments at the current rates, that’s all you need to think about. (And remember, you can always refinance if rates come down.)

And make sure you’re taking advantage of the silver lining in higher interest rates – good interest rates on cash investments, like high-yield savings accounts and CDs.

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SOCIAL SECURITY QUESTIONS SWIRL

THE REALITY

While Social Security retirement benefits have been in the media what seems like daily, almost all “news” is just rumor at this point. There are no specific actions to cut payments, change the rules about taxes or substantively alter the program. It’s entirely possible that nothing will change in the near future. (The long-term ability of Social Security to pay full benefits remains cloudy, as it currently takes in less money than it pays out.)

WHAT TO DO NOW

If you’re near retirement and haven’t spoken to your planner about your optimal Social Security strategy, make sure you get that nailed down. In many cases, delaying your benefits can mean a higher overall payout, but that doesn’t mean it’s always the right answer.

You should also talk to your planner if you’ve had to change your retirement plans, for example because of a job loss. In that case, you may need to start your benefits sooner than planned.

Finally, if you were impacted by the Social Security Fairness Act, which repealed provisions that limited Social Security benefits for people receiving a pension from federal, state or local government work not covered by Social Security, and you originally chose not to enroll in benefits, make sure you know whether you need to file in order to begin benefits now.

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THE MARKETS ARE REACTIVE, BUT YOU SHOULDN’T BE

When market participants and investors don’t know what to expect, volatility increases. The increased uncertainty – politically and economically – has been playing out in markets for weeks.

You’ve seen this before, and this time is no different. The causes of the volatility and how you feel about them can change, but the answer is the same: Pause and take a deep breath. Volatility and downturns are expected, and your plan is designed with this in mind.

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WE’RE BY YOUR SIDE

We can’t tell you what will happen in the future.

But does your planner stand ready to guide you if and when something does change? Absolutely.

Rest assured that we’re staying on top of financial legislation and economic news, and we’re here to help you navigate whatever comes. After all, that’s why you hired us.