July 2025

As we settle into summer, I’ve been appreciating the rhythm this season brings (or lack of rhythm when you have kids!), a bit more flexibility, and often, a chance to reflect. Whether you're traveling, focused on family, or simply enjoying a slower pace, summer can be a good time to check in both personally and financially.

I often use this time to review our family’s financial picture, revisit the goals we set earlier in the year, and make sure we’re still on track. It doesn’t take a complete overhaul—just a few smart adjustments can help keep everything aligned. Read on as I share a few thoughts on how to approach that in my latest blog post.

Best,

Mid-Year, Full Perspective

Halfway through the year is a great moment to pause and evaluate your financial strategy. Are your goals still the same? Are your savings and investments pacing the way you expected? Making time for a mid-year check-in helps ensure that your financial decisions continue to support the life you’re building.

I’ve put together a new blog post outlining five practical steps to help you strengthen your financial approach for the rest of 2025. It’s designed to help you focus on what matters most and make adjustments, if needed, without losing sight of the bigger picture.

June Inflation Update: What the Numbers Mean for Your Portfolio

The latest Consumer Price Index data for June 2025 shows inflation rising to 2.7% annually, up from 2.4% in May, within economists’ expectations. While lower gas prices provided some relief, higher grocery costs and the emerging effects of new trade policies are creating a mixed inflationary picture.

Key developments include ongoing tariff implementations that economists expect to have a more pronounced impact on consumer prices in the coming months. As Wells Fargo notes, businesses have been drawing down pre-tariff inventory stockpiles, but this buffer is diminishing. This suggests we may see more significant price pressures in the second half of the year, particularly in core goods. However, longer-term inflation expectations remain at 2.3% over the next 10 years, cautiously suggesting the Fed’s overall framework continues to indicate reasonable inflationary levels. 

For your portfolio, this environment reinforces the importance of maintaining diversified positions that can weather inflationary pressures while capitalizing on sectors that may benefit from these economic shifts. With the Fed in a data-dependent mode and remaining flexible as new information becomes available, we're closely monitoring. Read more here.

Employment Trends: Steady Growth Continues

June brought encouraging news with 147,000 new jobs added, continuing the trend of steady employment growth, and the unemployment rate fell from 4.2% to 4.1%. While some sectors like manufacturing are taking a more cautious approach to hiring amid ongoing policy discussions, the overall job market remains stable.

However, a closer look reveals some nuance: private sector hiring accounted for approximately half of the new jobs while government sector hiring made up the other half. This 50-50 split is unusual, as the typical ratio is about 80% private sector to 20% government sector jobs, making this a somewhat cautionary signal beneath the otherwise positive headline numbers. This data reinforces why we focus on broader economic trends rather than month-to-month fluctuations when making financial planning decisions.

New "Trump Accounts" for Kids

A new type of custodial savings account for children is expected to launch in 2026, offering $1,000 in federal seed money for babies born between 2025-2028. While technically structured as IRAs, these accounts have special rules allowing access to funds starting at age 18, though penalties may apply depending on how the money is used. Our current understanding is that qualifying distributions include paying for education, starting a business, or purchasing a house. These distributions are expected to be taxed at long-term capital gains rates, while distributions for any other purpose will be taxed at ordinary income rates. 

The free money is attractive, but these accounts come with complex tax rules that vary based on funding source, withdrawal age, and intended use. The accounts allow up to $5,000 in annual family contributions and $2,500 from employer matching, but for most families, traditional 529 plans and custodial Roth IRAs may offer better tax advantages and flexibility.

Our initial recommendation: take advantage of the free $1,000 and potential employer matching, but prioritize proven vehicles like 529 plans for education and Roth IRAs for kickstarting your kids’ retirement accounts. 

In Case You Missed It: Teaching Kids About Money

Last summer, I shared some thoughts on how we’re helping our kids learn the value of money—starting with simple concepts like saving, spending, and compound interest. It’s a topic that continues to resonate with many of you. If you’re having similar conversations in your family, this may be a helpful resource:

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