With September’s arrival, our kids are back in their routines and our schedules are filling back in at the Van Hofwegen home. It's also a season I like for financial conversations, and two developments are on my radar right now that could touch your own unique plan in different ways.
A Different Tone Out of Jackson Hole
Every August, Fed officials gather at the Jackson Hole symposium, one of the most closely watched economic conferences of the year. This year's keynote speech pointed to inflation that hasn't cooled as much as hoped, and left the door open to raising rates rather than cutting them. Markets had priced in cuts this fall, so the shift caught quite a few investors off guard.
Tone from the top shapes how markets read every data point that follows, and this speech set a different one than we've grown used to.
Some near-term volatility is to be likely while investors adjust their expectations for where rates are headed. Your plan was built for your long-term financial goals, not a single Fed speech, and that hasn't changed. I'm keeping a close eye on the next couple of meetings, and I'll reach out directly if anything shifts how we're positioned.
Charitable Giving Looks a Little Different This Year
The One Big Beautiful Bill Act introduced a change to charitable deductions that took effect this year. If you itemize, your charitable deduction is now reduced by an amount equal to 0.5% of your adjusted gross income before it counts against your taxes. Those in the top tax bracket also see the deduction capped at 35% of what they give.
If you don't itemize, there's a new option working in your favor. You can now claim a deduction of up to $1,000 as an individual filer or $2,000 filing jointly for cash gifts made directly to a qualifying public charity, even without itemizing. This deduction doesn't extend to gifts made through a donor advised fund, a supporting organization, or a private foundation, so the strategy you use depends on whether or not you itemize.
These changes shift the math on when and how giving makes the most sense for your unique situation. Bunching donations into a single year, using a donor advised fund, or timing gifts of appreciated assets can all look different under the new rules than they did last year. If charitable giving is part of your plan, this is a good year to revisit the approach with your CPA and with me before December 31.
As always, I'm here if you want to talk through how any of this fits into your plan.
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