Understanding the "OBBB"

We keep an eye out for rules and regulations that could impact you and your family. In President Trump’s "One Big Beautiful Bill," signed into law on July 4th, there is a significant shift in U.S. fiscal policy. Understanding the provisions is crucial for making informed financial decisions both now and for years to come.

Here’s What You Need to Know

The OBBB is a comprehensive budget reconciliation law that encompasses a range of tax and spending policies.

Who May Be Impacted

• Most Taxpayers: The permanence of the 2017 tax cuts and the increased standard deduction will likely benefit most individuals and families.
• Hourly Wage Earners/Service Industry Workers: Those who receive tips and/or overtime pay may see specific temporary tax benefits.
• Seniors: Will benefit from a temporary additional deduction.
• Small Business Owners: Expected to see significant tax relief and incentives for growth, including changes to the QBI deduction and bonus depreciation.
• Families with Children: Will see an increased Child Tax Credit.
• High-Income Earners: Will continue to benefit from the lower individual tax rates and changes to estate tax exemptions.
• Homeowners (in high-tax states): May benefit from the temporary increase in the SALT cap.
• Lower-Income Individuals/Families: Those who rely on Medicaid or SNAP may face significant changes to their benefits and eligibility due to program cuts and expanded work requirements, potentially leading to a loss of coverage or reduced assistance.
• Defense Industry: Stands to gain from increased funding.
• Fossil Fuel Industry: Benefits from policies promoting oil and gas development and phasing out clean energy incentives.
• Healthcare Providers: Hospitals and healthcare systems that serve a large number of Medicaid recipients, particularly rural hospitals, may face financial strain due to the cuts.

Core Components

Tax Policy:

• Permanent Tax Cuts: Makes most of the individual tax cuts from the 2017 Tax Cuts and Jobs Act permanent, including lower rates and reformed brackets.
• Increased Standard Deduction: Includes a permanent boost to the standard deduction (e.g., $15,750 (single) and $31,500 (joint), indexed for inflation after 2025).
• New Deductions (temporary, expiring 2028):
  • Tipped Income: Deduction for tipped income up to $25,000 for workers earning under $150,000 (single) / $300,000 (joint).
  • Overtime Pay: Deduction for overtime pay up to $12,500 (single) / $25,000 (joint) for workers earning under $150,000 (single) / $300,000 (joint).
  • Auto Loan Interest: Deduction up to $10,000 per year for interest on auto loans for U.S.-assembled cars purchased between 2025-2028, phasing out for higher earners.
• Senior Deduction (temporary, expiring 2028): An additional tax deduction of up to $6,000 for seniors (age 65 and older), phasing out at incomes of $75,000 (single) / $150,000 (joint).
• Child Tax Credit: Permanently increases the maximum Child Tax Credit from $2,000 to $2,200 per child, indexed for inflation. The refundable portion is also indexed but not increased.
• SALT Cap Adjustment (temporary, expiring 2029): Increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. This increased cap applies to taxpayers with modified adjusted gross income (MAGI) under $500,000 (applies to all filing statuses, including single and joint filers). For those with MAGI above $500,000, the $40,000 cap is phased down (but not below $10,000). These provisions are in effect for five years (2025-2029), after which the limitation reverts to $10,000 permanently.
• Business Tax Relief: Enhances flexibility for domestic R&D costs (allowing immediate deduction or amortization), reinstates 100% first-year "bonus depreciation" permanently, increases the Section 179 deduction cap to $2.5 million, and makes the 20% Section 199A (Qualified Business Income) deduction permanent. It also permanently increases the small business estate tax exemption and introduces changes to the Qualified Small Business Stock (QSBS) exclusion.
• International Tax: Modifies rules for Foreign Tax Credits (FTCs), Global Intangible Low-Tax Income (GILTI), Foreign Derived Intangible Income (FDII), and Base Erosion and Anti-Abuse Tax (BEAT), generally aiming to make them more favorable for U.S. companies. Imposes a 1% tax on remittances.
• Trump Accounts: Allows parents to create tax-deferred accounts for their children, with contributions up to $5,000 a year growing tax-free until withdrawal at age 18 or older (subject to capital gains tax).

Spending and Programs:

• Defense & Border Security: Significantly boosts defense spending (including a "Golden Dome" missile defense system and shipbuilding) and allocates substantial funds to immigration enforcement, including increased funding for ICE and Customs and Border Protection (CBP) and for finishing the border wall.
• Medicaid: Imposes a significant 12% cut to Medicaid spending over ten years and expands work requirements for some recipients, making states responsible for some costs. This is projected to increase the number of uninsured people. Rural hospitals are at particular risk.
• SNAP (Food Stamps): Proposes cuts for the Supplemental Nutrition Assistance Program ($186 billion over 10 years) and imposes stricter work requirements on more recipients, including able-bodied adults aged 55-64, veterans, people experiencing homelessness, and former foster youth. States will also take on more responsibility for costs.
• Energy Policy: Phases out clean energy tax credits from the Inflation Reduction Act, modifies some existing credits, and generally promotes fossil fuels over renewable energy, including unlocking oil and gas development on federal lands.
• Debt Ceiling: Raises the U.S. debt ceiling by $5 trillion.
• Medicare: Reverses aspects of Medicare's drug price negotiation program, particularly by expanding orphan drug exemptions, which could lead to increased costs for consumers.

What it Means

The OBBB represents a significant shift towards a supply-side economic approach, prioritizing tax cuts and deregulation to stimulate economic growth.

• For Individuals: Many individuals will see a reduction in their federal income tax liability due to the permanence of the 2017 tax cuts, increased standard deductions, and new specific temporary deductions for tipped income, overtime income, and for seniors. However, those relying on Medicaid or SNAP may experience reduced benefits or stricter eligibility, potentially leading to increased out-of-pocket costs or loss of coverage.
• For Businesses: The bill is largely seen as pro-business, particularly for small businesses, with permanent and enhanced deductions for qualified business income, increased expensing for equipment, and R&D tax benefits. These changes aim to incentivize investment, innovation, and job creation within the U.S.
• Federal Debt: The Congressional Budget Office (CBO) estimates that the bill will add a substantial amount to the national debt, projected to be around $2.8 trillion to $3.4 trillion over the next decade.

What Should You Do?

Given these changes, here are some actions to consider:

Review Your Tax Situation:

• Talk to us about how the permanent tax cuts, new temporary deductions, and changes to the SALT deduction specifically impact your personal or business tax liability.
• Understand your 2025 potential tax obligations or savings sooner rather than later, since some provisions take effect this year.

Evaluate Business Strategies (for business owners):

• Capital Expenditure Planning: With enhanced permanent bonus depreciation and Section 179 expensing, consider accelerating or re-evaluating plans for business equipment purchases.
  • R&D Investments: If your business conducts research and development, explore how the revised R&D tax benefits can be leveraged.
  • Succession Planning: For family-owned businesses, the increased estate tax exemption could significantly impact long-term planning. Review your estate plan with your legal and financial advisors.

• Assess Retirement and Investment Strategies:
  • While the core of retirement savings vehicles (401(k)s, IRAs) remains, changes in overall tax rates could influence decisions about pre-tax vs. Roth contributions, especially if you expect to be in a lower tax bracket now due to the new cuts.
  • Consider the long-term economic implications of increased national debt on inflation, interest rates, and overall market stability.

• Healthcare and Social Safety Net Planning:
  • For those on Medicaid or SNAP: Stay informed about specific state-level implementations of the new work requirements and eligibility changes. Reach out to government agencies or social service organizations for guidance.
  • Healthcare Coverage Review: If you're concerned about potential impacts on healthcare access or costs due to Medicare or Medicaid changes, review your health insurance options and financial preparedness for healthcare expenses.

Estate Planning:

The permanent increase in the unified credit and GSTT exemption threshold for estate and gift taxes means many more individuals and families will be exempt from federal estate taxes. Let’s review your estate plan to ensure it reflects these new thresholds and your current wishes.

You may not follow every headline about trade policy, but you can’t miss the ripple effect when a week’s worth of groceries suddenly costs $20 more. Here’s why those checkout‑line surprises matter to both your pantry and your portfolio.

From Cargo Ship to Shopping Cart: How Tariffs Travel

When the U.S. or its trading partners slap a tariff on imported goods—whether it’s Mexican avocados, European cheese, or Chinese steel—the sticker shock doesn’t stop at the border. Importers typically pass part of the new tax on to wholesalers, likewise, truckers add a little more to cover higher insurance and fuel, and retailers protect their own thin margins. By the time the item reaches the local store, each link in the supply chain has added a few extra cents and that compounds into dollars.

Agricultural products feel the squeeze most acutely because perishables can’t wait. If retaliatory tariffs delay shipments at ports, spoilage risk rises and prices jump even faster. That’s why strawberries can soar in May yet drop back in June when diplomatic skirmishes cool. For households on fixed incomes, such volatility is more than an annoyance—it forces difficult trade‑offs in weekly budgeting.

Tariffs as an (Unreliable) Inflation Indicator

Tariffs aren’t the only force nudging prices north—wages, energy, and weather all play roles. Historically, a broad‑based tariff hike adds a modest bump to the Consumer Price Index over 12 months. The shock is usually front‑loaded, with grocery prices reacting within weeks, while durable goods follow more slowly.

For diversification‑minded investors, the key insight is that tariffs tend to:

• Elevate short‑term inflation expectations. Bond markets may demand higher yields, pressuring existing fixed‑income prices.
• Pinch margins in globally integrated sectors such as autos and semiconductors, leading to near‑term earnings volatility.
• Benefit niche pockets—domestic producers of the newly protected goods. However, history shows these windfalls often fade once competitors adjust supply chains.

In other words, tariff headlines can be noisy, but their portfolio impact is uneven and often temporary. Maintaining a flexible asset‑allocation strategy offers investors room to navigate short bouts of price turbulence without abandoning long‑term growth goals.

Grocery‑Line Strategies That Double as Portfolio Habits

Just as shoppers learn to cushion their food budgets, investors can build habits that insulate their wealth from policy‑driven price swings.

In the Aisles

• Buy in season & store wisely. Stock up on tariff‑free produce when supply peaks, then freeze or can extras.
• Use substitutes. Swap out tariff‑heavy items (imported rice) for domestic grains (barley, oats).
• Plan a staples budget. Set a firm monthly spend for essentials and adjust discretionary extras instead.

In the Markets

• Rebalance opportunistically. Add to under‑loved asset classes (e.g., international small‑caps) when tariff angst drives them to discounts.
• Diversify revenue streams. Favor companies with flexible supply chains or ample domestic sales to offset tariff‐related drag.
• Segregate cash needs. Keep 12–18 months of living expenses in liquid reserves so to avoid having to sell growth assets into tariff‑spooked markets.

Key Takeaways

• Tariffs cascade quickly through perishable goods. Tarriff increases often show up at the supermarket before the next credit‑card cycle.
• Portfolio effects are real, but mixed. Some sectors win, others wobble, and the shock tends to fade over 12–18 months.
• Inflation‑aware positioning. Strategies that utilize laddered bonds, dividend growers, and real assets, may provide a built‑in cushion.
• Household budgeting tactics. Using suitable substitutions and purchasing products in bulk buffers cash.
• Stay goal‑focused. A tariff is a policy squall, not a climate shift; diversify rather than overhaul.

Disciplined planning helps to ensure that both your pantry shelves and retirement accounts stay productive, even when macro conditions dry up profits elsewhere.

Long-term thinking that not only grows wealth, but preserves peace of mind

As our nation prepares to celebrate its independence this July, it’s an ideal time to reflect on another kind of freedom, financial freedom. Some wisdom is too enduring to fade. It often arrives in quiet moments—simple truths shared in passing, but powerful enough to guide a lifetime of investing. Especially in today’s volatile markets, those lived-in lessons about what not to do with hard-earned money feel more relevant than ever.

Here are five timeless “Don’t Do This” lessons—proven through booms, busts, and everything in between.

1. Don’t confuse hype with value

Investors are often drawn to the newest trends, be it cryptocurrencies, flashy startups, or sectors promising overnight returns. But history shows that hype tends to inflate asset prices well beyond intrinsic value.

If the fundamentals of a business are unclear—its revenue sources, sustainability, or resilience in downturns, then caution is warranted. Long-term success hinges on backing enterprises with real-world durability, not short-lived excitement.

2. Don’t invest in anything that depends on perfect timing

Market timing is a trap that even seasoned investors can fall into. The idea of jumping in at the bottom and exiting at the top is alluring—but consistently doing so is virtually impossible.

A more sustainable strategy is one built on consistency and patience. Whether in bull markets or steep corrections, investors who stay the course tend to fare better than those reacting to daily headlines or gut instincts. This is especially true during periods of high volatility, when sudden swings can tempt rushed decision-making.

3. Don’t tie your emotions to your portfolio

The emotional roller coaster of investing can be intense, particularly in turbulent markets. Sharp declines often trigger fear, while rallies inspire overconfidence.

Those who allow emotions to steer their decisions frequently end up buying high and selling low. Successful investors cultivate the discipline to remain calm and rational. This emotional detachment helps maintain focus on long-term goals, even when short-term conditions are unsettling.

4. Don’t invest in something just because someone you know did.

Peer influence can be a powerful force in investing. Whether it’s a friend’s tip, a viral post, or a neighbor’s success story, the temptation to follow the crowd is strong.

But true financial health is built on individual goals, risk tolerance, and timelines. What works for one person may be entirely unsuitable for another. Independent decision-making—especially in uncertain or chaotic markets—often proves to be a defining trait of resilient investors.

5. Don’t go it alone – find a financial advisor who “gets you”

Investing involves complexity, emotion, and an evolving set of needs. Working with a qualified financial advisor can bring clarity and structure, especially in uncertain times.

The most effective advisors offer more than just portfolio advice. They seek to understand personal values, financial fears, and life aspirations. They listen before they guide. With markets prone to rapid change, having a trusted professional who provides both strategic and emotional support is not just beneficial—it’s essential.

What Matters Most

Much like the enduring values that shaped this nation, the journey to financial independence demands discipline, conviction, and a long-term view. In both battles, strength comes not from reacting emotionally, but from thoughtful planning and resilience.

In an era of unpredictable markets, the most powerful investing tips are the ones that help people stay grounded, resting on the principles of integrity, patience and discipline. These principles don’t promise instant wins—but they do provide a time-tested path towards financial peace of mind.

Sometimes, the smartest strategy isn’t to chase trends or react to every swing, but instead to stay calm, avoid common traps, and seek help when it counts. That’s how real wealth and peace of mind are won and protected.

Why a Balanced Portfolio Wins the Long Game

This past April, when the headlines flashed, “Markets Plunge 18% in Two Weeks,” it was hard not to feel like we were watching 2022 on repeat. But less than a month later, those same indexes had clawed back almost from every loss, leaving the year-to-date numbers…well, flat. The whiplash is real, yet it reinforces a truth, volatility and failure are two very different things.

Below, we’ll break down why market swings shouldn’t derail an investor’s retirement vision—and how a thoughtfully balanced portfolio can keep an investment on solid footing, no matter what stories are in the news.

Storms Are Inevitable—But Valleys Endure

A walk through the California Central Valley after a spring rain reveals rows of young crops standing tall again, within hours. The fields are built for sudden squalls; healthy root systems and well-planned irrigation make resilience possible. The valley perspective reminds us that “farmers must be prepared for unexpected storms, shifting seasons, and sudden changes in market prices.”

Investing isn’t very different. Volatility is the weather; the long-term plan is the soil. Trying to predict every rain cloud is exhausting—and unnecessary—when the asset allocation strives to account for changing conditions!

Volatility ≠ Loss

A portfolio balance that wobbles day-to-day can feel like failure, but it's important to remember that price movement is just one factor that can impact wealth. Permanent loss happens only when an asset never recovers or when an investor locks in damage by selling at the worst possible time.

During the recent April “sell-off,” the S&P 500 slipped 18% from its previous high, while the tech-heavy NASDAQ fell more than 25%. Yet by mid-May, both indexes were back near breakeven, while investment-grade bonds had quietly gained about 2% for the year, and international stocks were showing positive double-digits. In other words, the diversified investor who stayed on course may have experienced some losses, but they were not lasting.

The Logic of Balance

A resilient portfolio holds a strategic mix of assets designed to respond differently to economic conditions, spreading risk instead of concentrating it. Here’s how the components typically function:

• Stocks provide long-term growth potential. Though sensitive to headlines and economic shifts, they have historically outpaced inflation over time. After a wave of tariff concerns, both U.S. and international equities rebounded quickly—an encouraging reminder that downturns historically haven’t lasted.
• Bonds and Cash Equivalents offer stability, income, and flexibility. During turbulent equity periods, they strive to manage the risks effectively. Recently, core bonds remained steady while short-term Treasury bills continued to yield more than 4%, creating both security and opportunity.
• Real Assets and Alternatives act as a buffer. They help diversify exposure and mitigate inflation risk. Gold, for instance, surged to record highs, generating buzz. But its true strength lies in moderation—a small position can add stability and reduce the fear of missing out (“FOMO”), when certain markets soar.

This multi-faceted approach keeps portfolios from moving in lockstep with any one asset class, allowing clients to weather volatility with greater confidence, unlike “all-stock” portfolios that often swing wildly from drought to flood.

Headline Risk vs. Goal Risk

We live in an age where even an 81-year-old bond investor is asking about Nvidia because the media made it sound like the only game in town. But chasing today’s darling stock introduces goal risk—the danger of abandoning a carefully calculated mix that funds your retirement lifestyle.

Making the right near-term decisions comes from clarifying long-term goals. This means designing asset allocations around the required rate of return, tax implications, and the spending horizon, not whatever ticker symbol is trending on X.

Four Habits That Turn Volatility into Opportunity

1. Revisit risk, not reactions. Market dips are a reminder to verify that asset allocation still fits within tolerance limits and timeline. They are not an invitation to overhaul strategy mid-storm.
2. Rebalance with discipline. Selling a slice of the winner and adding to the laggard feels counter-intuitive—but it systematically buys low and sells high.
3. Keep opportunistic cash. A six- to twelve-month reserve (earning 4% or more in T-bills or money-market funds) prevents forced selling and provides capital when prices are attractive.
4. Measure progress in years, not weeks. If the retirement horizon is 10, 20, or 30 years away, a volatile quarter is statistically just noise.

How Strong Valley Puts Principles into Practice

Our clients often tell us the greatest value we provide is peace of mind. That confidence grows from three commitments woven through every interaction:

1. Independent, fiduciary advice. As an RIA we put client interests first, not corporate sales quotas or proprietary products.
2. Relationship-first planning. We want to understand our client’s story, goals, and even their worries before we draft a single chart. True partnership is built on “mutual trust, respect, and sincerity.”
3. Clear communication, especially in rough weather. We translate market noise into plain English and actionable steps, so you never feel alone in decision-making.

Your Next Step: Put a Plan Behind the Headlines

If April’s market hiccup made you wonder whether your current portfolio can handle the next storm, let’s talk. Strong Valley advisors have guided families through dot.com bubbles, financial crises, and pandemic panics—and we’re still here planting for the next season.

Take the first step toward turning uncertainty into confidence: schedule a no-obligation review today. Together, we’ll test asset allocation, fine-tune it for the journey ahead, and ensure that the inevitable bouts of volatility never derail the life you’ve worked so hard to build.

Final Thoughts

In farming and investing alike, the weather will change, but with deep roots, diverse crops, and a trusted guide walking the rows beside you, temporary squalls won’t wipe out a lifetime of growth. Balance isn’t boring—it’s the quiet strategy that wins the harvest!

Internal audits can create a strong foundation for your company's success

Internal audits play a crucial role in the proper functioning and success of a business. They are an essential component of a company's risk management process and provide management with valuable insights into the effectiveness of their operations.

What is An Internal Audit?

An internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It evaluates a company's internal controls, corporate governance, and accounting processes to ensure compliance with laws and regulations and maintain accurate, timely financial reporting and data collection.

Internal auditors are hired by companies and work on behalf of their management teams to provide them with the tools necessary to achieve operational efficiency by identifying problems and correcting lapses before they are discovered during an external audit.

Types of Internal Audits

There are several types of internal audits, each with a specific focus and purpose. These are the main types of internal audits of which business owners should be aware:

Financial Audits. Financial audits focus on the accuracy and completeness of a company's financial records, reports, and statements. They aim to ensure that financial transactions are recorded correctly, and financial statements are prepared in accordance with generally accepted accounting principles (GAAP), or other relevant accounting standards. This type of audit helps in detecting fraud, errors, and misstatements that may affect the company's financial health.

Operational Audits. Operational audits examine the efficiency and effectiveness of a company's operations, including the use of resources, adherence to company policies and procedures, and the achievement of organizational goals. These audits aim to identify areas of improvement in processes, systems, and controls and provide recommendations for enhancing productivity, reducing costs, and improving overall performance.

Compliance Audits. Compliance audits assess whether a company is adhering to the applicable laws, regulations, policies, and industry standards. These audits are essential for minimizing legal and regulatory risks and ensuring that the company operates within the boundaries set by various regulatory authorities. Compliance audits can cover a wide range of areas, such as labor laws, environmental regulations, and tax compliance, to name a few.

Information Systems Audits. Information systems audits evaluate the reliability, integrity, and security of a company's information technology (IT) systems, infrastructure, and data. These audits help to identify vulnerabilities, assess risks, and ensure that the company's IT systems are adequately protected against potential cyber threats, data breaches, and system failures.

Fraud and Investigative Audits. Fraud and investigative audits focus on detecting and preventing fraudulent activities within an organization. These audits may be triggered by suspicious activities, whistleblowers, or routine analysis of company data. Auditors in this area specialize in identifying the signs of fraud, investigating the circumstances, and recommending actions to prevent recurrence.

Your Business Matters

Internal audits are vital for businesses, as they help ensure compliance with laws and regulations, maintain accurate financial reporting, and improve operational efficiency.

As a business owner, conducting regular internal audits can proactively address potential issues and help create a foundation for continued success.

Market swings often prompt investors to reassess their portfolios. To evaluate the efficacy of investments in light of financial goals, it’s important to revisit two key principles—asset allocation and diversification. Any long-term investment plan will most likely have to weather market “ups” and “downs.” Softer markets often create opportunities for purchasing shares at lower prices, and through dollar cost averaging, investors may be able to average a lower cost per share over time. Maintaining a regular investment program and balancing portfolios to account for a comfortable risk level are important to the overall success of financial strategies.  

Asset Allocation and Diversification

The main objective of asset allocation is to match the investment characteristics of the various asset categories (equities, bonds, cash, etc.,) to the most important aspects of the personal investment profile—that is, risk tolerance, returns and liquidity needs, and the time horizon. Asset categories generally react differently to economic fluctuations.

If an investor assembles assets without careful planning, then they won’t likely know the extent to which the investments are (or are not) consistent with the overall objectives. Since various investment categories have unique characteristics, they rarely rise or fall at the same time. Consequently, combining different asset classes can help reduce risk and improve a portfolio’s overall return. While there is no set formula for asset allocation, guidelines can help to accomplish certain goals (for example, the need for growth in order to offset the erosion of purchasing power caused by inflation).

Diversification is an investment strategy used to manage risk for the overall portfolio, using techniques such as mixing holdings to include a variety of stocks (small-cap, mid-cap, and large-cap), mutual funds, international investments, bonds (short- and long-term), and cash. By varying investments, diversification attempts to minimize the effects that a decline in a single holding may have on the entire portfolio.

Dollar Cost Averaging

To maintain a regular investment program, many investors make dollar cost averaging an integral part of their overall savings plan. Using this systematic investing technique, an investor spends the same amount each period on the asset, but due to market trends, the money buys more shares when prices are low, and fewer shares when prices are high. This may result in a lower average cost per share than purchasing a constant number of shares at the same periodic intervals or if making a one-time large investment.

Dollar cost averaging cannot guarantee a profit or a lower cost per share, nor can it protect against a loss. However, it is a strategy that reinforces the discipline of regular investing and offers a systematic alternative to “market timing.” In order to take full advantage of dollar cost averaging, the investor needs to consider continuing purchases through periods of market down-turns. Periods of falling prices are a natural part of investing, as are strong market intervals. It is important to regularly review the portfolio and meet with a financial professional to help ensure the investment strategies remain aligned with the overall financial objectives.

Life can present some serious storms, and when it comes to financial liability, standard homeowner's insurance might feel as inadequate as a raincoat during a hurricane. That’s where umbrella insurance policies offer an additional layer of protection, when life’s little showers turn into a financial downpour. Umbrella policies are designed to help safeguard a property owner’s income, assets, lifestyle, and legacy, if someone is injured on the property or by a member of the household.

Understanding this protection requires a closer examination of the potential storm clouds and the valuable assets that may be at risk.

Determine the Right Amount of Coverage

Take an inventory of potential risks around the property.

• Teenage Drivers: Less experience behind the wheel increases the risk of accidents.
• Backyard Hazards: Pools, trampolines, and even playful pets can lead to unforeseen injuries on the property.
• Everyday Accidents: A simple slip on an icy walkway can result in significant injury and liability.
• Social Gatherings: Hosting parties, especially with alcohol, may increase an owner’s responsibility for guest’s well-being.

How much coverage is really needed?

A widely accepted guideline is to correlate potential umbrella insurance coverage to the obvious assets, including:

• Home Equity: The value of the home minus the mortgage.
• Savings and Investments: Checking and savings accounts, money market funds, stocks, bonds, and mutual funds.
• Vehicles and Other Property: Cars, boats, RVs, and valuable personal items.
• Future Earnings: This is especially crucial for high-income earners.

Coverage Guidelines Based on Financial Profile

Consider net worth and potential risks when determining coverage.

• $1 Million: A good baseline for many homeowners with moderate assets.
• $2 Million to $3 Million: This may be prudent for those with growing net worth, teenage drivers, pools or trampolines, or for those who frequently entertain.
• $5 Million or More: May be recommended for high-net-worth individuals, professionals with significant earning potential, or those with multiple properties.

A Proactive Approach

Keep in mind that umbrella policies typically require certain minimum limits on underlying home and auto insurance. Be sure to review those policies, as they can provide a significant foundation for an umbrella policy.

Be proactive, don't wait for the storm clouds to gather. A well-chosen umbrella policy may help weather an unexpected financial downpour. Let’s discuss your circumstances and tailor a solution that provides the clarity you deserve.

In 2025, diversification helps with stock market volatility, and April saw the volatility index rise to its highest point since the pandemic. We also look at alternative strategies, bond performance, and scenarios surrounding interest rate cuts later in the year.

Some of life’s biggest moments come with celebration - like selling a business, welcoming a child, or retiring after decades of work. Others arrive quietly, like taking care of aging parents or handling a financial windfall you didn’t expect.

And sometimes, life just throws a curveball.

In moments like these, the question isn’t just, “What’s next?” It’s, “Am I ready?”

Here are just a few of life’s moments that may deserve a fresh financial conversation and a new perspective:

Selling a home or buying a new one

• Are you considering the financial impact of your move - from liquidity to long-term goals?

Caring for aging parents or an ill loved one

• Do you have a plan for caregiving costs, estate matters, or navigating tough financial conversations?

Getting married or divorced

• Are your finances aligned with your new goals, or protected if things change?

Starting a business or stepping away from one

• How are you managing cash flow, taxes, and long-term financial independence?

Having a baby, adopting, or planning for college

• Have you built a strategy for education savings, insurance needs, or family planning?

Receiving an inheritance or settlement

• Are you making intentional choices with your newfound wealth - focusing on preservation and growth, and using it wisely?

Preparing to retire - or realizing you’re not ready yet

• Is your plan tax-efficient and built to last through the next chapter?

Each of these events can reshape your financial picture. The earlier you plan, the more options you have, and the less overwhelmed you’ll feel when the time comes.

We’re here to guide you through life’s most meaningful and difficult moments. Whether you’re planning ahead or facing a new normal, we’ll help you navigate with clarity and confidence.

If something on this list resonates with your current life season, simply reach out to us and we can set up a time to talk.