Coffeehouse Capital LLC Financial Planning and Wealth Management

08/05/2025

AI continues to dominate as big tech drives the market higher this earnings season.

Young people tend to adopt technology faster than older groups; however, according to the latest Pew Research, the largest percentage increase in AI users over the past year was among people 65 and older.

How are you using AI?

07/30/2025

It's Fed day, and Federal Reserve Chairman Jerome Powell and the FOMC announced no cut to the Fed Funds Rate, holding it steady at 4.25%-4.50%.

The Fed is in a tricky balancing act as it has a congressionally mandated responsibility to balance policies that promote full employment and stable prices while managing inflation.

With that in mind, here's a breakdown of the Fed's decision and press conference on interest rates, inflation, and the economy, as well as what it could mean as we move forward.

Note: The next Fed meeting is scheduled for September 17, 2025.

🚦 Fed Hits Pause

🔒 1. Interest Rates Hold Steady

→Rate range:4.25 % – 4.50 % (no change).

→Why: The Fed wants more data before moving rates up or down.

📉 2. Economic Growth Has Slowed

→GDP: Up 1.2 % in the first half of 2025, versus 2.5 % last year.

→Consumer spending: Cooling, while business investment is picking up.

→Housing: Still weak.

👷 3. Labor Market Still Solid (Updated Jobs Report This Friday Morning)

→Jobs: About 150 k new jobs a month.

→Unemployment: Low at 4.1 %, stable all year.

→Wages: Growing faster than prices—good for workers.

💸 4. Inflation—Better, Yet Above Target

→Overall prices (PCE): Up 2.5 % over 12 months.

→Core prices: Up 2.7 %.

→Tariffs: Pushing some goods prices higher, even as services inflation eases.

⚖️ 5. Why the Fed Is Careful

→Twin risks:

→Higher prices from tariffs 🛫

→Slower growth from reduced spending 🐢

→Uncertainty: Policy changes (trade, immigration, fiscal, regulation) make forecasts tricky.

✅Goal: Keep long-term inflation expectations anchored while protecting jobs.

🔭 6. What Comes Next?

→Data-driven: Fed will study upcoming reports on jobs, spending, and prices.

→Possible paths:

→If inflation stays above 2 %, rates likely stay high longer.

→If growth or inflation drops fast, rate cuts could follow.

→Balance-sheet trim: Fed continues slowly shrinking its bond holdings.

✍️What This Means for You

→Loans & mortgages: Monthly payments should remain about the same near-term.

→Savings: Money-market and short CDs keep attractive yields.

→Investments: Mixed signals (slower growth + sticky inflation) underline the value of a diversified portfolio.

📞 Have any questions or want to discuss further? Feel free to reach out or schedule a call to talk about how these updates might affect your financial situation.

https://www.usatoday.com/story/money/2025/07/30/federal-reserve-interest-rate-cuts-live-updates/85430906007/

07/08/2025

The nearly 900-page spending and tax reconciliation bill, known as H.R. 1, or as some are calling it, the “One Big Beautiful Bill,” is now law.

What makes this bill so beautiful? Well, as the saying goes, beauty is in the eye of the beholder, so grab a fresh cup of coffee or your favorite drink, and let's dig in ☕️

🟢 Permanent Wins: Lower tax brackets, $2,200 Child Tax Credit, $15M individual gift and estate exemption ($30M Joint).
🟡 Expires 12/31/2028: “No Tax on Tips,” “No Tax on Overtime,” $6K senior deduction, $40K SALT cap.
👶 Newborn boost: $1,000 Treasury deposit + $5K/year Contribution Limit into a “Trump Account.”
🚗 Car-loan interest & other sweeteners phase out after 2028. Scroll for details, planning moves, and deadlines you don’t want to miss.

The nearly 900-page spending and tax reconciliation bill, known as H.R. 1, or as some are calling it, the “One Big Beautiful Bill,” is now law. What makes this bill so beautiful? Well, as the saying goes, beauty is in the eye of the beholder, so grab a fresh cup of coffee or your favorite drink,...

06/23/2025

What if inflation hangs around like yesterday’s cold brew while the economy cools down? ☕️

That’s the concern the Federal Reserve brewed up at its latest meeting. With trade tensions heating up and new tariffs percolating, Fed officials warned we could be facing a bitter blend: high prices without the strong growth to balance them.

How does this affect your financial cup?

• If inflation stays strong, everyday essentials—from your morning coffee to the weekly grocery shop—could cost more.
• If growth slows, you might notice slower froth on your wage increases, savings, and investment returns.

That’s why Coffeehouse Capital is watching this blend closely—just as the Fed has paused rate changes for now. Big-picture trends can shape your budget, your savings plan, and your long-term goals. At Coffeehouse Capital, we’re here to help you sip smartly through every market cycle.



Source:

Officials were concerned that tariffs could aggravate inflation and create a difficult quandary with interest rate policy.

03/25/2025

🚨 Retirement Savers Aged 50+! Important Updates for 2025 🚨

The SECURE Act 2.0 has enhanced catch-up contributions for workplace retirement plans like 401(k)s, 403(b)s, and SIMPLE IRAs. Here's what you need to know:

✅ Standard Contribution Limit (2025): $23,500 (401(k), 403(b), 457)
✅ Catch-Up at 50+: Extra $7,500, for a total of $31,000
✅ Super Catch-Up at 60-63: Extra $11,250, for a total of $34,750
✅ SIMPLE Plans: $16,500 standard + special catch-up limits

Are you making the most of these higher contribution limits? At Coffeehouse Capital, we help busy professionals build tax-efficient retirement strategies. Let’s chat about how these new rules fit into your plan! 📩

03/24/2025

Are you withholding the right amount in taxes? A quick review now can save you a major headache later!

At Coffeehouse Capital, we help busy professionals—especially high-earning professionals—optimize their finances and avoid tax surprises. The IRS recommends a Paycheck Checkup, and here’s what else to review:

✅ Withholding Amount – Ensure enough is withheld to avoid a big tax bill.
✅ Deductions & Credits – Claim all you’re eligible for to maximize savings.
✅ Filing Status – Choose the correct status for your situation.
✅ Investment Transactions – Report capital gains, dividends, and interest accurately.
✅ Retirement Contributions – Ensure correct reporting of contributions, distributions, and withdrawals.
✅ Business Expenses – If self-employed, track deductions and depreciation properly.

💡 Next Steps: Use the Tax Withholding Estimator on IRS.gov or contact Coffeehouse Capital for a review. As a fiduciary financial planner, I can help you align your tax strategy with your overall financial plan.

03/20/2025

Think 2025 is wild? Look back—stocks face pullbacks every year. The key? Zoom out, stay patient, and trust the process.📉➡️📈

03/20/2025

Coffeehouse Capital LLC is an independent, fee-only, Financial Planning and Wealth Management firm.

11/28/2024

Sending warm greetings to everyone spending time with family, friends, and loved ones. 🍂 Enjoy a joyful Thanksgiving! 🦃

11/12/2024

To all Veterans, and families who support them. Thank you for your service 🇺🇸