BCD Wealth

08/27/2025

The futures market is pricing in an almost 86% probability that the Federal Reserve will cut interest rates by .25% on their September 17th meeting. If this does occur and if there are further cuts, there are many that believe that it could ultimately lead to lower near term borrowing costs. The largest and most impactful for the consumer, being mortgage rates. Historically, the 30-year mortgage rate has had an extremely positive relationship with the 10-year treasury yield (when one goes up the other goes up, when one goes down the other goes down), moving in a similar direction 90% of the time. This relationship is how the Federal Reserve has indirectly been able to influence the real estate market via its monetary policy, and through that policy's impact on the all important 10-year treasury. Since last October, this relationship has weakened and the implications could indicate that the ability for the Federal Reserve to support the real estate market via policy could be declining. Previous periods of reduced correlation between the 30-year mortgage and 10-year treasury were during the subprime housing crisis of 2008 and during the covid recession of 2021.

08/22/2025

Since the Covid-era, US manufacturers have increased construction capex by 3x to roughly $225 billion dollars per year. Motivated partly by the CHIPS Act tax credits under the Biden presidency, and now the OBBBA tax breaks under Trump, US industrials are reinvesting into automation, artificial intelligence, and energy capacity to fuel future growth. Unfortunately, due to labor shortages and rising wage constraints, manufacturing job openings have fallen relative to the overall job market, and for the first time in 5 years construction spending has started to decline materially.

08/20/2025

For the highest income earners, the past 30 years has seen not only the lowest marginal tax rates in almost 100 years, but also the lowest amount of tax bracket volatility in over 30 years. However, for those HENRY's (high earners not rich yet) that are just gaining their stride professionally, planning now for higher tax rates may not only be a matter of if, but when it reverts back to an era of higher taxation and tax code instability.

08/04/2025

A new provision in the recently signed One Big Beautiful Bill is restoring a tax deduction for certain car buyers—but with limits.

Here’s what’s changing:
▪️ Buyers can deduct up to $10,000 in auto loan interest each year (2025–2028)
▪️ Applies only to new, U.S.-assembled light vehicles purchased for personal use
▪️ Used vehicles and leases do not qualify
▪️ The deduction is available even for those taking the standard deduction
▪️ Income caps apply: phased out above $150K (single) or $250K (joint)

This could affect an estimated 3.5 million vehicle loans this year. But the benefit won’t apply to every buyer, especially those with higher incomes or leasing preferences.


Source:

The tax and spending bill signed into law by President Trump on July 4 includes a limited tax break for car buyers.

08/01/2025

📝 August is National Make-A-Will Month, a timely reminder that estate documentation deserves your attention.

A whopping 76% of Americans don't have a will. This can lead to unintended consequences for those with asset distribution and care for children.

A comprehensive estate strategy can help preserve your legacy while helping manage the probate process. Consider reviewing your documentation periodically, particularly after significant life events such as marriage, divorce, or the birth of children and grandchildren.

Our team can help your legal counsel facilitate comprehensive estate coordination. Contact us to discuss how we can help.



Source:
Caring.com, February 18, 2025.

07/28/2025

07/18/2025

Alzheimer’s Care Needs to Be Part of Your Retirement Plan

By 2050, it’s projected that nearly 13 million Americans will have Alzheimer’s. Those numbers are staggering, especially when care related to Alzheimer’s is approximately $345 billion and is expected to increase every year.

A financial professional can help you create or adjust a savings strategy to help you cover some of these expenses and share with you additional resources that can help you better understand your options.

Reach out to learn more.
https://www.alz.org/alzheimers-dementia

07/16/2025

More than likely your family — or a family you know — is considering if an assisted living facility is the right option for a loved one.

Because assisted living is costly and can dramatically impact a retirement savings plan, families must consider all factors and review them as situations change.

Ask for our infographic that highlights some of the pros and cons of assisted living and talk with us about your options. Even if you may not need to make a decision for years, now’s the time to understand more about assisted living so you can plan.

Reach out to learn more.

07/08/2025

Small Business Owners and Independent Contractors!!!

✅Have a solo k or one participant retirement plan?
✅Is your retirement plan year end December 31st?
✅Did it have a balance that exceeded $250k at any point last year?
✅Are you your plan's administrator?

If the answer to all of these questions is "yes", you are required to file a 5500EZ tax form, and the deadline to file that document is July 31st.

While only an informational return, the IRS can impose a penalty of up to $250/per day for each day the filing is late, up to a maximum penalty of $150k. Many tax preparers may be aware that their client is contributing to a solo k, but may not be privy to the actual holdings and overall balance in that person's account unless there was a 5498 or 1099R tax form issued for that year. This can cause the tax preparer to overlook this very important filing requirement.

📞Have questions about this, or need help establishing your own Solo-K??? Give me a call!