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Crypto: Myths vs. Realities and What Investors Should Actually Know

Executive Summary: Sudden wealth can be a gift or a burden, depending on how prepared the next generation is to receive it. Start with financial education, use a phased wealth transfer strategy, clarify your values, prepare for taxes, and communicate clearly. A thoughtful plan can make all the difference.

Whether you’re curious or skeptical, it’s hard to ignore cryptocurrency these days. It’s been called everything from the future of finance to a worthless scam. But in between the hype and fear lies a more practical truth: crypto is neither a magic money machine nor something to dismiss entirely. For investors who want to make informed decisions, separating myth from reality is essential.

At Worth Advisors, we don’t treat crypto like a trend. We treat it like any other financial decision: with context, planning, and a focus on what makes sense for each individual client. If you’re a high-income earner, business owner, or nearing retirement, here’s what you actually need to know about crypto.

Myth #1: Crypto Is a Guaranteed Path to Wealth

Reality: Crypto has produced big winners, but also big losers. Yes, there are stories of people who made millions buying Bitcoin early. But timing markets, especially crypto markets, is risky at best. Prices are volatile, and massive swings can happen within hours.

As with any investment, it’s not about chasing trends. It’s about making sure any exposure fits your goals, time horizon, and risk tolerance. For most people, crypto should be a small portion of a diversified portfolio, if it’s in the portfolio at all.

Myth #2: Crypto Is Completely Anonymous and Untraceable

Reality: Crypto transactions are recorded on public blockchains. While they don’t always include names or bank accounts, transactions can be traced, especially by government agencies.

If you’ve heard crypto is ideal for avoiding taxes or hiding money, be careful. The IRS is increasing enforcement, and crypto platforms are now required to issue tax documents much like brokerages do. Any gains from trading or selling crypto are taxable. Ignoring that is a fast track to a tax problem.

Myth #3: You Have to Be a Tech Expert to Invest in Crypto

Reality: You don’t need to understand blockchain development or code to buy crypto. But you do need to understand what you’re buying, how you’ll store it, and how it fits into your overall plan.

There are now user-friendly platforms and custodians that make crypto more accessible. Some investment platforms even offer crypto ETFs or trusts that provide exposure without managing coins directly. The important part is understanding the risks, fees, and how crypto interacts with your broader financial picture.

Myth #4: Crypto Replaces the Need for Traditional Investing

Reality: Crypto is still speculative. It doesn’t generate dividends or income, and its value is driven mostly by supply, demand, and market sentiment. It is not a substitute for long-term investment strategies based on fundamentals, diversification, and planning.

Even the most enthusiastic investors should view crypto as a potential satellite investment, something that adds diversification but doesn’t replace core retirement planning, tax strategies, or estate planning.

Myth #5: If You Missed Bitcoin, You Missed Your Chance

Reality: The idea that you “missed the boat” can lead to rushed decisions. There are thousands of cryptocurrencies, but very few have lasting utility or widespread adoption. Investing in newer coins often carries more risk, not more opportunity.

There is no urgency to jump into crypto just because others are doing it. A better approach is to determine whether it belongs in your plan at all, and if it does, how to approach it responsibly.

What We Tell Clients Considering Crypto

If you’re interested, start small. Don’t invest more than you’re willing to lose.
Don’t fund crypto purchases with debt or money earmarked for other goals.
Stay updated on tax rules and reporting requirements.
Use secure storage, whether that’s a reputable exchange or offline solution.
Talk to your advisor about how crypto affects your risk profile, taxes, and long-term goals.

Crypto may have a place in your portfolio, but it should never drive your entire strategy.

Your Strategy Should Reflect Reality, Not Hype

You don’t need to be all-in or all-out when it comes to crypto. What matters is whether it fits your financial plan, your risk tolerance, and your long-term goals. At Worth Advisors, we help you take a clear, grounded approach to your money, even when the markets feel unpredictable. If you’re considering crypto or have questions about how it impacts your broader strategy, we’re here to have the real conversation.

Disclaimer: The information contained in this article is intended for discussion purposes only. The information included herein is highly confidential, intended for review by the recipient only, and should not be disseminated or made available for public use or to any other source. It is not an offer or a solicitation for the sale of a security, nor shall there be any sale of a security in any jurisdiction where such offer, solicitation, or sale would be unlawful. An investment with Worth Advisors (whether through a commingled fund or on a separate account basis) involves a degree of risk and may only be made pursuant to the respective offering documents and organizational materials governing such investment. Past performance of the clients of Worth Advisors, or any of its employees or principals, may not be indicative of future results, and there is no guarantee that targeted performance will be achieved. The entirety of investors’ capital is at risk.

How Do You Prepare the Next Generation for Sudden Wealth?

Most people focus on growing wealth. Few spend enough time thinking about what happens when that wealth transfers, especially to the next generation. If you’re building real financial security, you’ve probably asked yourself: Will my kids or heirs be ready? Sudden wealth, whether it comes from an inheritance, business sale, or financial windfall, can be overwhelming. Without preparation, it can do more harm than good.

Passing down wealth is about more than numbers. It requires education, structure, and clear communication. At Worth Advisors, we’ve seen the impact of thoughtful planning, and we’ve also seen what happens when families skip this step. If you want your legacy to support and not derail the next generation, here’s where to start.

Start with Financial Education

The first step is teaching basic financial literacy. That includes budgeting, saving, investing, taxes, and debt management. Don’t assume the next generation already knows how to manage money just because they grew up around it.

Many families begin with open conversations about how money works, how it should be used, and how values play a role in financial decisions. Whether your children are in high school or adults with families of their own, it’s never too early to start these conversations.

Consider involving your children in aspects of your financial process, such as tax planning discussions or investment reviews. They don’t need full access, but they do need context. When the time comes for a wealth transfer, they’ll feel more capable and less intimidated.

Use a Gradual Wealth Transfer Strategy

Instead of leaving a lump sum, consider phasing in wealth over time. This approach gives the next generation time to learn, adapt, and develop their own financial habits with some safety nets in place.

Tools like incentive trusts, annual gifts, or structured disbursements can be helpful here. They allow you to share wealth while maintaining some level of oversight or guidance. You can also require financial education milestones before certain distributions are made.

A gradual strategy isn’t about control, it’s about support. It helps build confidence and responsibility, which leads to smarter decisions long-term.

Align Your Plan with Family Values

Sudden wealth can lead to confusion, disagreement, or even conflict when expectations aren’t clear. That’s why it helps to document and discuss your intentions.

What are your priorities? What matters most to you about how the money is used? Whether it’s supporting education, funding charitable efforts, or building a family business, sharing your values with the next generation provides a framework for responsible stewardship.

In many cases, we work with families to build a legacy letter or family financial charter that clearly outlines these intentions in plain language.

Protect Against Tax Surprises

Sudden wealth can come with unexpected tax consequences. A large inheritance, real estate sale, or trust distribution could move your heirs into a higher tax bracket overnight.

Helping them understand the tax implications of wealth can prevent poor decisions. This includes income tax, capital gains, and estate tax awareness. Collaborating with advisors ahead of time can help ensure that the next generation receives wealth in the most tax-efficient way possible.

This is especially important for high-income earners and business owners who may be managing both incoming assets and existing tax liabilities. Coordinated tax planning protects the legacy and increases what’s passed on.

Communicate Early and Often

Silence doesn’t help anyone. One of the most common issues we see is a lack of communication between generations. Without context or clarity, sudden wealth can feel more like pressure than opportunity.

Set clear expectations. Share your reasoning. Invite questions. If you have a financial team in place, consider introducing your children to them now. That familiarity can go a long way toward trust, continuity, and better outcomes.

Creating sustainable, generational wealth isn’t just about money, it’s about mindset. And mindset starts with open communication.

Build the Future with Intention

Wealth transfer isn’t just a transaction. It’s a turning point. Whether you plan to give during your lifetime or after, setting the next generation up for success takes time, clarity, and intention. At Worth Advisors, we work with families to create tailored plans that prepare heirs, not just for the money, but for the responsibility that comes with it. Contact us today to learn more.

Trusts vs. Direct Gifts: What’s Best for Passing Down Wealth?

If you’re thinking about passing down wealth to family or loved ones, it can be tempting to just write a check and call it a day. It’s simple, quick, and requires almost no planning. But is that the smartest move for your legacy? Not always. When you’re dealing with significant wealth, how you transfer it matters just as much as how much you give. Whether you choose direct gifts or set up a trust can affect taxes, control, and what your heirs actually receive.

The Case for Direct Gifts

Giving directly to your heirs can feel straightforward. You can gift up to $19,000 per person per year (as of 2025) without triggering federal gift taxes. For many families, this is a simple way to share wealth while you’re still alive.

Direct gifts provide recipients with immediate access to the funds. That’s great if they need help with a home purchase, education costs, or starting a business. It also removes those assets from your taxable estate, potentially reducing estate taxes upon your passing.

However, direct gifts come with downsides. Once the money is gifted, you have no control over how it’s used. There are also risks if the recipient isn’t financially responsible or faces legal or financial troubles. Money given without structure can disappear quickly, leaving little long-term impact. And for larger gifts, you might run into gift tax limits or miss out on smarter tax strategies that could have preserved more of your wealth.

Another consideration is how direct gifts might impact the recipient’s own financial situation. A sudden influx of cash can complicate things like financial aid eligibility for education, create tax consequences, or even lead to disputes within the family if not communicated properly.

Why Trusts Might Be the Better Option

A trust provides a structured way to pass down wealth while keeping some control over how and when assets are used. You can create specific rules, such as delaying access until a certain age or earmarking funds for education, healthcare, or purchasing a home. This helps ensure that the money supports responsible decisions and benefits multiple generations.

Trusts also offer tax benefits and asset protection. Assets placed in certain types of trusts may be shielded from creditors, lawsuits, or divorce settlements. This can be particularly useful if you have concerns about an heir’s financial stability or their exposure to legal risks.

Additionally, trusts can help manage estate taxes and provide privacy since trust assets don’t go through probate, which is a public process. This not only speeds up the transfer of assets but also keeps family matters and wealth details confidential.

There are several types of trusts to consider, such as:

Revocable Trusts: Allow you to retain control of the assets during your lifetime and adjust the trust as needed.
Irrevocable Trusts: Once established, these can’t be easily changed but offer stronger asset protection and potential tax benefits.
Generation-Skipping Trusts: Designed to pass assets directly to grandchildren, minimizing estate taxes across generations.
Charitable Trusts: Enable you to support charitable causes while providing tax advantages and income streams for family members.

Setting up a trust requires more planning, legal support, and upfront costs compared to making direct gifts. But the long-term benefits, especially for substantial estates, can be well worth the effort.

Which Option Is Right for You?

Choosing between direct gifts and trusts isn’t always an either-or situation. In many cases, a blended strategy works best. You might give smaller direct gifts to help loved ones with immediate needs while setting up a trust to protect and manage the rest of your assets for the future.

The decision often comes down to your specific goals:

Do you want to provide immediate support, or ensure long-term stewardship of your wealth?
Are you concerned about tax implications?
Do you want to protect assets from potential legal issues?
How much control do you want over how your wealth is used after you’re gone?

Answering these questions can help guide the right approach for your family and financial legacy.

Choose the Right Strategy for Your Legacy

Passing down wealth isn’t just a financial decision, it’s a values decision. At Worth Advisors, we help you determine the best strategy for your situation, whether that involves direct gifts, trusts, or a combination of both. Let’s build a plan that protects your legacy and supports the next generation the way you intend.

Don’t Let Hackers Steal Your Wealth

You hear about data breaches almost every week. Big companies, small businesses, even government agencies have all been hacked. Your personal information is likely floating around in places you don’t even know about. That’s a reality we all live with. The question is: what are you doing to protect yourself? Ignoring it isn’t an option. If your identity is compromised, the impact can be expensive, time-consuming, and stressful, especially when your financial accounts are involved.

At Worth Advisors, we know that wealth protection isn’t just about investments. It’s also about making sure your accounts, personal data, and financial records are secure. Building wealth is only part of the equation. Keeping it safe is just as important.

How Identity Theft Happens

Identity theft happens when someone gains access to your personal information like your Social Security number, bank details, or online account credentials, and uses it to commit fraud. This can happen in several ways:

Phishing Scams: Emails, texts, or calls that trick you into giving up sensitive information.
Data Breaches: Hackers infiltrate company databases and steal personal data.
Public Wi-Fi: Using unsecured Wi-Fi networks can expose your data to hackers.
Lost or Stolen Devices: Phones, laptops, and tablets that aren’t secured can be a goldmine for thieves.
Malware and Spyware: Downloading files from unknown sources or clicking suspicious links can install malicious software on your devices, giving hackers access to your information.

Once someone has your data, they can open credit accounts, access bank accounts, transfer funds, and even attempt to impersonate you to financial institutions. The last thing any investor or family wants is to see their hard-earned wealth drained due to preventable security gaps.

Steps to Protect Your Wealth and Personal Information

Protecting your information doesn’t require tech skills, just some awareness and good habits.

Use Strong, Unique Passwords: Don’t use the same password for multiple accounts. Use a password manager to create and securely store complex passwords.
Enable Two-Factor Authentication: This adds a second layer of protection, like a text code or authentication app, to your logins. This is especially important for financial accounts.
Monitor Your Credit: Regularly check your credit reports. You can access a free report from each of the three major credit bureaus once a year at AnnualCreditReport.com.
Monitor Financial Accounts: Set up account alerts on your bank, investment, and credit card accounts to catch suspicious activity early.
Be Skeptical of Unsolicited Contacts: If someone asks for personal information by phone, email, or text, even if they claim to be from your bank, verify their identity first.
Secure Your Devices: Use screen locks, keep software up to date, and install antivirus protection on your devices.
Limit Public Wi-Fi Use: Avoid accessing sensitive accounts or making transactions on public Wi-Fi. If you must use it, connect through a virtual private network (VPN).
Shred Sensitive Documents: Physical security matters too. Shred documents that contain personal information before disposing of them.
Use Secure Websites: When shopping or banking online, ensure the website uses HTTPS. This encrypts your data and helps protect your information from interception.
Be Careful on Social Media: Avoid sharing personal details like your birthday, address, or answers to common security questions. This information can help scammers piece together enough data to impersonate you.

Protect Your Wealth Beyond the Market

No system is foolproof, but the more barriers you put in place, the harder it becomes for thieves to get what they want. At Worth Advisors, protecting your wealth goes beyond market strategy. It includes helping you safeguard your financial information and identity. If you’re serious about locking down your financial life, let’s talk about a strategy that protects not just your investments, but everything connected to them.

Simple Ways Seniors Can Cut Their Taxes

Getting older comes with its perks—more time, more flexibility, and in some cases, tax breaks. If you’re in or approaching retirement, it’s worth understanding the tax benefits available to seniors. These opportunities can help you keep more of your money and stretch your retirement income further. The catch? Many people miss out simply because they don’t know what to look for.

Common Tax Breaks Available to Seniors

Once you turn 65, the IRS provides a higher standard deduction. With the recently passed One Big Beautiful Bill Act, seniors can claim an additional deduction of $6,000.

Some seniors may also qualify for the Credit for the Elderly or Disabled, which can reduce your tax bill if your income is below certain thresholds. While not everyone qualifies, it’s worth checking if you meet the income and disability criteria.

Additionally, many states offer property tax exemptions or reductions for seniors. The rules vary by state and sometimes even by county, but these programs can significantly reduce your annual property tax bill.

Social Security benefits might not be taxed at all, depending on your combined income. If Social Security is your main or only source of income, your benefits could remain tax-free. However, if you have other income sources, up to 85% of your Social Security benefits may be subject to federal taxes.

Some seniors may also benefit from the Retirement Savings Contributions Credit (Saver’s Credit). Although less common among retirees, if you’re still earning income and contributing to retirement accounts like an IRA or 401(k), you might qualify for a tax credit worth up to 50% of your contributions, depending on your income.

Strategies to Maximize Tax Savings in Retirement

Tax relief for seniors isn’t just about deductions and credits, it’s also about smart planning. Here are a few strategies to consider:

Withdraw Strategically: Be mindful of when and how you withdraw funds from retirement accounts, such as traditional IRAs or 401(k)s. These withdrawals count as taxable income, and taking out too much in one year can bump you into a higher tax bracket.
Roth Conversions: Converting part of your traditional IRA to a Roth IRA can help reduce future taxable income since Roth withdrawals are tax-free in retirement. Spreading conversions over several years may help you manage taxes more effectively.
Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can donate directly from your IRA to a charity. The amount donated counts toward your required minimum distribution (RMD) but doesn’t count as taxable income.
Health Savings Accounts (HSAs): If you’re still working and eligible, contributing to an HSA provides tax-free savings for medical expenses, which can be significant in retirement. Even after you turn 65, you can continue using your HSA for medical costs tax-free.
Timing Social Security Benefits: Waiting to claim Social Security can not only increase your monthly benefit but also help you manage your taxable income in the early years of retirement. This can help avoid triggering higher taxes on Social Security or being subject to Medicare surcharges.
Track Medical Expenses: Seniors often have higher healthcare costs, and if these expenses exceed 7.5% of your adjusted gross income, they may be deductible if you itemize your taxes. Keeping good records of medical costs can lead to additional deductions.
Take Advantage of State-Level Benefits: In addition to federal tax relief, many states offer further benefits for retirees, such as exempting certain retirement income from taxation or providing additional property tax relief. Review your state’s tax codes or consult a financial advisor to ensure you’re not missing out.

Make the Most of Every Opportunity

Tax relief for seniors isn’t automatic. It takes some attention and planning to ensure you’re maximizing the benefits available to you. The right approach can help you keep more of what you’ve earned, support your lifestyle in retirement, and preserve wealth for future generations.

At Worth Advisors, we help you uncover the opportunities that fit your specific situation and build a strategy that keeps your retirement on track. If you’re ready to make sure your tax strategy is working as hard as you do, let’s connect.

Will Social Security Still Be Around When I Retire?

You’ve probably heard the warnings: “Social Security is running out of money.” It’s a headline that gets clicks but also sparks genuine concern. If you’re in your 30s, 40s, or even 50s, it’s fair to wonder whether Social Security will be there for you by retirement. The truth? Social Security isn’t going away—but it will likely look different. And understanding what might change can help you build a better plan.

The Reality Behind the Headlines

Let’s clear something up first: Social Security is not going bankrupt. Yes, the program is under financial pressure, and the Social Security Trust Fund is projected to be depleted by the mid-2030s if no changes are made. But even if that happens, payroll taxes will still cover about 75-80% of scheduled benefits. That means the program won’t disappear, but benefits may be reduced unless reforms are passed.

Lawmakers have several ways to strengthen Social Security. They could raise the retirement age, adjust how benefits are calculated, increase the payroll tax cap, or use a combination of approaches. These reforms have been made in the past and are likely to happen again.

The key takeaway: Social Security is not in danger of vanishing. But relying solely on it to fund your retirement isn’t a good plan. It should be one part of a broader retirement strategy.

What You Can Do Right Now

Don’t Count on Social Security Alone: Social Security was never meant to be your only source of income in retirement. It’s a foundation, not a complete plan. Make sure you’re saving in retirement accounts like a 401(k), IRA, or other investment vehicles.
Stay Informed, But Not Anxious: Yes, Social Security faces challenges. But that doesn’t mean you need to panic. Keep an eye on proposed policy changes and be ready to adjust your expectations, but avoid making emotional decisions based on headlines.
Plan for Multiple Income Sources: Your retirement income should come from multiple places. Diversify with savings, investments, pensions (if available), and even part-time work or rental income if that fits your lifestyle.
Consider Delaying Benefits: To boost your future Social Security payout, consider delaying benefits past your full retirement age. Your benefit increases each year you wait (up to age 70).
Revisit Your Retirement Plan Regularly: As policies change, your plan should evolve too. Regular check-ins align with your goals, no matter what happens with Social Security.

Stay Focused on What You Can Control

Worrying about whether Social Security will change doesn’t help you prepare, but taking action does. The more you take control of your retirement planning today, the less you’ll have to worry about changes tomorrow.

At Worth Advisors, we help you build a plan that works with or without Social Security. Let’s ensure you’re set up for the future you want, no matter what changes may come.

Rebalancing Isn’t Just About Stocks: Why Total Wealth Rebalancing Matters

Most people think of rebalancing as something you do with your investment portfolio—tweaking your mix of stocks and bonds to stay on target. That’s important, sure. But if you stop there, you’re missing the bigger picture. Your finances are more than your investment account. Rebalancing your total wealth means checking every part of your financial life to ensure it aligns with your goals. And that can make a much more significant difference than just shifting a few percentages in your portfolio.

Look Beyond the Portfolio

Rebalancing your wealth means reviewing all the areas that affect your financial health, not just your stocks and bonds. That includes things like:

Cash Reserves: Are you holding too much cash in low-interest accounts? Or not enough to cover short-term needs?
Debt: Is your debt structured in the most efficient way? Could you benefit from refinancing or consolidating?
Insurance: Do your insurance policies still match your life stage and responsibilities?
Tax Strategy: Have you reviewed tax planning opportunities based on current income, deductions, or investment decisions?
Business Interests or Real Estate: If you own a business or property, is its role in your overall plan still effective?

Each of these pieces can shift over time. Life changes, markets move, and your goals evolve. Total wealth rebalancing is about stepping back to assess everything and making thoughtful adjustments.

Why It Matters

When one area of your finances becomes out of sync, it can impact everything else. For example, if you’ve had a significant life change—a new job, a move, an inheritance—your plan needs to reflect that. Even without significant events, your wealth can drift away from your goals due to time or market performance.

Think of total wealth rebalancing as a regular tune-up. It helps you:

Stay aligned with your priorities by ensuring your plan reflects what matters most to you.
Reduce unnecessary risks by reviewing outdated decisions or overlooked exposures.
Maximize opportunities by taking advantage of changes in tax law, interest rates, or your financial position.

It’s not about perfection. It’s about intention. Total wealth rebalancing isn’t just a financial to-do list—it’s a way to keep your entire strategy working for you.

Keep the Big Picture in Focus

At Worth Advisors, real wealth management means looking at every piece of your financial life, not just your investments. Let’s chat if it’s been a while since you looked at the whole picture. We’ll help you step back, review, and rebalance so your strategy fits where you are today and where you want to go tomorrow.

Am I Going to Be Okay? Reassurance in Uncertain Markets

You’ve probably heard it a hundred times: markets are volatile. But when headlines keep hammering on inflation, tariffs, and market swings, it’s natural to pause and wonder—will I be okay? That question doesn’t mean panic. It means you care about your financial future. The good news is that there are clear steps you can take to stay grounded and feel confident, even when the market feels unpredictable.

What to Remember When Markets Get Choppy

Volatility isn’t new. It’s a normal part of investing. Market dips and global events like trade wars and tariff battles come and go. What matters most isn’t what the headlines say today—it’s the strategy you have in place and how you respond to the changes.

Tariffs can impact certain industries, and that can ripple into the stock market. But that doesn’t mean your entire portfolio is in jeopardy. Long-term investors who stay the course are historically the ones who come out ahead. If your investments are aligned with your goals and risk tolerance, short-term swings shouldn’t throw off your long-term vision.

The key is to stay focused on what you can control. That means reviewing your plan, assessing your current situation, and staying diversified. Worry comes from uncertainty, but clarity brings confidence.

Steps You Can Take Right Now

Review Your Plan: Review your financial goals and the strategy supporting them. Is your portfolio built to weather different market cycles? Has anything changed in your life that should update your plan? If you’re unsure, now’s a great time to check-in.
Stay Diversified: One of the best defenses against volatility is diversification. Ensure your investments aren’t tied too heavily to one sector or market. Spreading risk is a smart way to manage uncertainty.
Don’t React Emotionally: It’s tempting to make sudden moves when the market drops. But reacting out of fear often leads to bad timing. Market declines are part of the process, and history shows they tend to recover.
Refocus on Long-Term Goals: Think beyond this week or this month. Whether you’re investing for retirement, a house, or your kid’s college fund, stay focused on the bigger picture. Long-term planning wins over short-term guessing.
Revisit Cash Flow and Spending: Volatility is a great reminder to consider your budget. Are you spending in line with your goals? Do you have a cushion set aside for unexpected changes? These habits keep you steady.

Let the Data, Not the Headlines, Drive Your Decisions

It’s easy to get swept up in the emotion of the news cycle. But the truth is, markets always respond to new information and often bounce back faster than people expect. If tariffs shift or policies change, markets will adjust. What matters is that your investment approach doesn’t swing with every headline.

A solid plan uses real data, historical trends, and proven principles. That’s what helps you stay calm when everyone else is nervous. Your financial goals are unique, and your plan should reflect that. That’s why personalization and regular review matter more than ever.

You’re Not Alone in This

At Worth Advisors, financial peace of mind comes from clarity, preparation, and partnership. If you’re asking, “Am I going to be okay?”—that’s not a sign of weakness. It’s a sign that you’re ready to take your financial future seriously. Let’s talk about where you are, where you want to go, and how to keep you on track through whatever the market brings.

No Pain, No Gain

It’s no secret that the exceptional market returns over the last two years have been driven primarily by a handful of the largest technology companies in the U.S. markets. Recent market volatility, which has been triggered by tariffs and breakthroughs in Artificial Intelligence (AI) by a Chinese technology company, is a reminder that even the strongest of bull markets can suffer corrections, especially when market-leading stocks are priced to perfection.

It’s often been said that “uncertainty breeds market volatility”. Since making new all-time highs earlier this year, the U.S. equity markets are providing a real-time example of this belief. While the current state of the markets is both elevated and unwelcome, volatility is a reality that equity investors must endure.

So, how did we get here? Short answer – Government spending has grown faster than the Gross Domestic Product (GDP). As of March, the current U.S. national debt is approximately $36.2 trillion. The current U.S. annual budget deficit is approximately $1.8 trillion. Government spending is now in the 20% to 25% range of GDP and the Federal Reserve balance sheet, along with the M2 money supply, has ballooned accordingly.

The resulting inflation from all of the Government money in the system has had a positive effect on those who own assets (stocks, real estate, etc.), as asset prices have moved higher. However, inflation has a negative effect on consumers (basically a tax) as well as the overall economy. The days of ‘easy’ money are over, as are the days of the U.S. Government printing and spending at the onset of every new ‘crisis.’

Enter a new administration with an ambitious new agenda. Reminiscent of 1981 when Ronald Reagan (after defeating Jimmy Carter in the 1980 election) inherited an economy with double-digit inflation and interest rates hovering near 20%. Like Reagan’s economic plan, the Trump administration will attempt to encourage economic growth by enacting pro-growth policies, reducing government spending, and cutting tax rates. One difference is that when Reagan took office, facing a severe recession, the Price Earnings Multiple (PE Ratio) on the S&P 500 index was 8.5. Conversely, the Trump administration takes over an S&P 500 index, fueled by government spending and inflation, at all-time highs and a PE ratio of 27.

The uncertainty surrounding the Trump administration’s tariff policies will invariably have some effect on inflation, supply chains, employment, economic growth, and corporate profits. President Trump’s announcement of the tariffs sent the markets reeling back into correction mode, sending the major indexes down approximately 4% – 6%. The sweeping tariffs-which include an across-the-board 10% tariff on imports and will top 50% for some countries, including China- far surpassed what most analysts anticipated. Volatility has spiked, and recession fears have been elevated. Some of these tariffs may be well intended, such as a necessity to combat other countries that have abused their trading status with the U.S. While any reconfiguration of the world economic order will come at a cost, the establishment of a new landscape will allow corporations to regain confidence and begin investing within the new framework. Any such transitions usually create new investor opportunities as companies adjust their operations. As a general rule, though policy and economic uncertainty are difficult for both CEOs and investors alike, we are usually better served to focus on actual data rather than get caught up in the multitude of theories as to what might happen in the wake of a change in policies.

As we digest the never-ending stream of breaking news, we must always try to discern between the short-term headlines and the longer-term structural trends. Market corrections occur regularly. Over the past 40 years, the S&P 500 index has seen a drop of at least 10% in 18 of those years. Since 2000, after the S&P 500 has experienced a correction of at least 10%, the average total return over the following 3-year period was 35%. And looking back to 1928, the S&P 500 index has been positive 73% of the time; an average of 3 years out of every 4.

Many investors tend to overreact to volatility, decreasing their exposure to risk assets in the markets. Over the long term, this can be a mistake. This is especially true today as the U.S. and the rest of the world are on the verge of an AI-driven revolution, a theme that has just gotten considerably cheaper to access. Technology is changing the world faster than most anticipated. Productivity and automation are soon to follow. These expectations could arguably be recognized and reinforced by economies across the globe.

Uncertainty about U.S. policy will remain high. We assume a slowdown in U.S. economic growth, and a negative impact on inflation. We can also assume a significant effect on countries outside the U.S. And let’s not overlook the existing geopolitical risks as the conflict in the Middle East continues, and a resolution to the Russia-Ukraine war remains uncertain.

If anything, our economy is resilient, though we now see the economy slowing to 1% – 1.5% in 2025 as higher tariffs weigh on disposable income, consumer spending, and business investment. We expect core PCE inflation will remain sticky at approximately 3.5% – 3.75%, still above the Federal Reserve’s 2% objective. The market is currently pricing in 2 – 3 interest rate cuts by the Federal Reserve this year. So, we do see a softening economic environment, but not a recession at this point in time. We will, as will the entire industry, continue to monitor policy developments and their potential impact on economies and corporations across the globe.

Having Financial Goals and a Plan to Achieve Them Matter More Than You Think

Let’s be honest—money is one of the biggest factors shaping our daily lives. Whether you’re thinking about retirement, buying a home, or just making sure you can take that vacation next summer, how you handle your finances determines what’s possible. Yet so many people move through life without a clear financial direction. They make money, spend money, and hope it all works out. But hope isn’t a strategy. If you want financial security and the freedom to make choices that matter, you need two things: a goal and a plan to get there.

The Power of Financial Goals

Financial goals give you purpose. They help you take control of your money rather than letting your money control you. Here’s why they matter:

Direction: Without goals, your money lacks purpose. Clear objectives help you stay on track.
Motivation: Goals keep you focused, even when temptations arise to spend on things that don’t align with your priorities.
Measurability: When your goals are specific, you can track your progress and celebrate milestones.
Decision-Making: When faced with financial choices, having goals in place makes it easier to determine the right path.

Good financial goals follow the SMART framework—Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of saying, “I want to save money,” set a SMART goal: “I will save $5,000 for an emergency fund within 12 months.” This gives you a clear target and a timeframe to make it happen.

The Role of Financial Planning

Once you have goals, you need a plan to reach them. Without a plan, even the best goals are just wishful thinking. Here’s what a strong financial plan does for you:

Roadmap: A plan outlines the steps you need to take to reach your financial goals.
Resource Allocation: It helps you determine how to allocate your income effectively.
Risk Management: A well-structured plan identifies potential risks and prepares you for unexpected challenges.
Flexibility: Life happens—your plan should be able to adapt along the way.

A solid financial plan includes budgeting, saving, investing, debt management, and insurance. It’s not something you set and forget. As your life changes, your plan should evolve too.

Goal-Setting and Planning in Action

Let’s say your goal is to buy a house in five years. Here’s how setting a SMART goal and creating a financial plan work together:

Set the SMART Goal: “Save $50,000 for a house down payment within 5 years.”
Break It Down: That means saving $10,000 annually or about $833 monthly.
Create a Plan:
- Review your budget and cut unnecessary expenses.
- Set up automatic transfers to a high-yield savings account.
- Explore ways to increase income, like a side hustle or negotiating a raise.
- Invest a portion of the savings for potential higher returns.
Monitor and Adjust: Regularly check progress and make adjustments as needed.

This structured approach ensures that a daunting goal becomes manageable and achievable.

Common Pitfalls and How to Avoid Them

Even with the best intentions, common mistakes can derail financial success. Here’s what to watch out for:

Setting Unrealistic Goals: Be ambitious, but make sure your goals are attainable to avoid frustration.
Not Sticking to Your Budget or Goals: As Sy Pugh puts it, “What is the purpose of setting a goal if you do not have plans to attain it in the first place?”
Neglecting to Review and Adjust: Financial plans should change as your life does.
Focusing Only on Long-Term Goals: Balancing short-term and long-term financial priorities keeps you healthy.
Being Too Prideful to Seek Help: There’s no shame in getting guidance when you need it.

Ready to Take Control of Your Financial Future?

Financial goals and a solid plan can mean the difference between drifting through life and achieving real financial security. If you’re ready to take charge of your finances, Worth Advisors is here to help. Let’s build a strategy that aligns with your goals so you can confidently move forward.