Can a 529 plan boost your family’s education-saving strategy?

529 plans generally come in two forms. The first – prepaid tuition programs – which allows participants to lock in tuition rates at eligible state colleges or universities with a lump-sum investment or monthly installment payments. Because prepaid tuition programs are governed by individual state rules, availability and transferability can vary, so review plan details carefully.

The second – college savings programs – allows contributions to vary. The full value of the account can be applied at any accredited institution of higher education nationwide. Since 529 plans operate under individual state laws, costs and details vary by state. In many cases, college savings plans may also be used for certain other qualified education expenses, which can make them more versatile than some people realize.

Substantial Contributions Allowed

Although, contribution limits vary by state, some plans allow total account balances of $500,000 or more per beneficiary (with no income limitations or age restrictions), compared to $2,000 annually per beneficiary for a Coverdell Education Savings Account (formerly known as an education IRA). Because plan limits are set at the state level, parents should confirm the current limit for the specific plan they are considering. In general, 529 plans offer significantly more room for long-term education savings than many other education-specific accounts.

Tax Benefits

Although contributions are not deductible, earnings in a 529 plan grow tax-free at the federal level and are also not taxed at the federal level when money is taken out to pay for college. Many states also offer state tax deductions, credits, or other benefits for residents who use their home state’s plan.

In addition, there may be other benefits. For example, qualified uses may extend beyond college tuition alone, depending on the expense and the plan rules. Current federal rules allow for some 529 withdrawals for K-12 tuition, certain registered apprenticeship expenses, and allowances for student-loan repayment (with limitations per individual and subject to applicable requirements).

Often, the 529 account must be open for at least 12 months before any money can be withdrawn. Rather than assuming a universal timing rule applies, it is wise to review the specific plan’s distribution procedures and eligible-expense requirements before taking withdrawals.

Special Estate Planning Features

A 529 plan may also provide estate-planning benefits. Current IRS rules allow annual gifts up to the federal exclusion amount per beneficiary. Another unique feature of 529 Plans is that a donor can make a lump-sum contribution to a 529 plan of up to five times the annual gift tax exclusion and completely avoid federal gift tax, provided the donor makes no other gifts to the same beneficiary during the five-year period.

Other Considerations

Professional Management. 529 plans offer a “hands-off” savings approach, since funds invested in the plan are professionally managed. Depending on the plan, parents may be able to choose from age-based portfolios or other investment options that align with the time horizon and risk tolerance.

Beneficiary Change. If the original beneficiary’s plans change, the account owner may be able to change the beneficiary to another eligible family member. Current law also allows certain 529-to-Roth IRA rollovers for the beneficiary, subject to several conditions, check with your financial professional for details.

Financial Aid Impact. Any investment may affect a student’s eligibility for financial aid. Earnings withdrawn from a 529 plan are treated as income to the child and will show up on the following year’s financial aid application. It might make sense to reserve 529 funds for use in a student’s later years. The financial-aid impact of a 529 plan depends in part on account ownership and the aid methodology being used. Because financial-aid rules have evolved, families should review current FAFSA and school-specific considerations to understand how a 529 plan will affect eligibility.

It’s Worth a Look

Keep in mind, there is no guarantee that any investment portfolio will achieve its investment goals. As with any investment-based account, the value of a 529 plan will fluctuate, and parents should compare fees, investment options, state tax treatment, and withdrawal flexibility before selecting a plan.

For more complete information on 529 plans, contact your financial professional. For families looking to save with greater intention, National 529 Day can be a useful prompt to revisit their education funding strategy and determine whether a 529 plan fits within their broader financial plan.

Planning early can help families fund college with more confidence

Whether a family is considering a public university, private college, trade school, or another educational path, one of the best steps is to begin planning early. College costs can feel overwhelming, but families do not need to solve everything at once. A thoughtful funding strategy can create more flexibility, reduce last-minute stress, and help parents support a child's future without losing sight of their other financial priorities.

Rather than relying on any one source of funding, many families are best served by looking at college costs through a broader planning lens. That often means combining savings, cash flow, financial aid, and other available resources in a way that fits the family's overall goals.

To start building a plan, consider the following funding options:

• Scholarships and grants. These can be valuable and should absolutely be explored, but they are best viewed as opportunities rather than guarantees. A solid college funding plan should not depend entirely on an award that may or may not materialize.

• Financial aid. Aid packages can help bridge the gap, whether through grants, work-study opportunities, or student loans. It’s important to review the details carefully and understand how much aid is gift-based and how much must eventually be repaid.

• Current income and cash flow. Some families choose to cover a portion of education expenses from ongoing income. That can be an important part of the strategy, but it is wise to evaluate how tuition payments could affect monthly cash flow, emergency reserves, retirement savings, and other household goals.

• Borrowing. Loans can provide flexibility when needed and they should be used thoughtfully. The long-term cost of interest, repayment timing, and the impact on both parents and students are important factors to weigh before borrowing becomes a primary solution.

• Savings and tax-advantaged education accounts. For many families, this is the part of the plan they can influence most directly. Regular contributions, even modest ones, may benefit from time and compounding. Vehicles such as 529 plans may also offer tax advantages, depending on the plan and the family's situation.

Because scholarships, aid, and borrowing can vary, many families view personal savings as the cornerstone of a college funding strategy. Starting early does not necessarily mean setting aside large amounts right away. More often, it means being intentional, staying consistent, and revisiting the plan as a child grows and goals become clearer. A disciplined, long-term approach can help families prepare for education costs while keeping the bigger picture in mind. A financial advisor can help evaluate the available options, coordinate college planning with retirement and other priorities, and build a strategy that feels both practical and sustainable.

Helping students build smart money habits now will serve them well into their future

Graduation season is exciting, but it also marks the beginning of new financial decisions. Whether a high school senior is heading to college, trade school, military service, or directly into the workforce, this is an ideal time for families to begin reinforcing healthy money habits.

These five practical planning tips can help high school seniors build confidence, avoid common mistakes, and enter adulthood on stronger financial footing.

1.    Set Clear Financial Goals

The planning process can begin with the next 12 months. A student may need money for tuition, housing, transportation, books, work clothes, or a first car. From there, families can look beyond the first year to goals such as finishing school with manageable debt, building savings, or starting retirement contributions early. Clear and specific goals can make everyday spending decisions much easier.

2.    Create a Simple Budget

A basic budget does not need to be complicated. A student can list expected income from part-time work, family support, scholarships, or gifts, then compare it with regular expenses. Parents can encourage students to separate essentials from discretionary spending and review transactions each month. Using a budgeting app or spreadsheet can help them stay organized and spot habits before they become problems.

3.    Understand Student Loans, Credit, and Debt

Before signing for any loans or opening credit card accounts, students should understand how borrowing works. They should know the difference between federal and private student loans, how a balance and interest affect total repayment, and why making on-time payments matter. Used carefully, credit can help build a financial history. Used carelessly, it can create stress that lasts for years.

4.    Build a Starter Emergency Fund

Unexpected expenses can arise quickly, especially during the transition to adulthood. A realistic first goal for an emergency fund may be saving $500 to $1,000 for car repairs, medical co-pays, unexpected travel, or other surprise costs. Once income becomes more consistent, that emergency reserve can continue to grow. Even a modest cushion can reduce the need to rely on high-interest debt.

5.    Invest in Yourself and Your Future

Education, training, and skill development can have a lasting impact on earning potential. Parents can encourage students to explore scholarships, internships, apprenticeships, and opportunities to build real-world experience. Once earned income begins to come in, learning the basics of saving and investing, including the power of long-term compounding, can become a valuable advantage.

Planning Matters

The transition out of high school is about more than choosing a next step. It is also a chance for students and families to build decision-making habits that can support long-term financial well-being. Starting with clear goals is the first step to establishing a workable budget. Next, it’s important to understand the impact of debt and borrowing on the budget. Parents can also emphasize the importance of starting an emergency fund to help preserve the budget when something unexpected happens. These steps will not only help the young graduate begin adult life on a stronger financial footing, but it will also help set the stage for the student to more freely invest in their own future.

Families navigating education funding, budgeting decisions, or broader wealth planning questions may benefit from guidance from a trusted financial professional who can help evaluate strategies that fit their unique goals and circumstances.

Thinking beyond the celebration

The Transition to Adulthood

High school graduation is an exciting milestone, but it also marks the beginning of a new phase of responsibility. For many families, that transition happens quickly. One day a student is still living under a parent's roof, and the next day that same young adult may be preparing for college, work, or a first apartment.

That shift has real planning implications. Once a student reaches adulthood, parents may no longer have automatic access to medical information, educational records, or have the legal authority to make certain decisions on the student's behalf. At the same time, many graduates still rely heavily on family support for tuition, transportation, health insurance, and day-to-day financial guidance.

For that reason, graduation season is a smart time for families to slow down and address the practical details that often get overlooked in the excitement.

Health Privacy and HIPAA

One of the most important changes for parents to understand is medical privacy. Under HIPAA, health care providers generally cannot share an adult child's protected health information with parents without the student's permission or other appropriate legal authority. That can create stress if a graduate is away at school, traveling, or facing a medical emergency.

A signed HIPAA authorization can help families communicate more easily with doctors, hospitals, and other providers. In some situations, families may also want to discuss a health care power of attorney or similar state-specific document so that someone trusted can help make medical decisions if the student cannot communicate. Because requirements vary by state, families should work with a qualified attorney when preparing these documents.

Education Records and FERPA

Medical privacy is only part of the picture. Educational privacy can change as well. Under FERPA, rights over educational records generally transfer to the student when the student turns 18 or begins attending a post-secondary institution. That means parents may not automatically receive access to grades, billing information, disciplinary records, or other school records unless the school's rules and applicable exceptions allow it.

Before move-in day, or fall enrollment, parents may want to ask the college what forms are available for records access, billing discussions, and emergency contacts. A short administrative conversation now can prevent confusion later.

Money Conversations Matter

Graduation is also a natural time to have a more adult conversation about money. If parents plan to help with college costs, rent, groceries, insurance, or a vehicle, expectations should be discussed clearly ahead of time. Families benefit when everyone understands who is paying for what, what the monthly limits are, and what responsibilities belong to the student.

A basic budget can make that conversation more productive. Graduates should understand recurring expenses such as tuition balances, books, food, transportation, subscriptions, and discretionary spending. They should also know how debit cards, credit cards, and student loans fit into the bigger picture. Learning these habits early can help reduce avoidable debt and encourage better decision-making.

Choosing the Next Step Wisely

Not every graduate will follow the same path, and that is part of our own individual journey. Some students head straight to a four-year university. Others begin at a community college, enter a trade program, or join the workforce. What matters most is that the next step is intentional and financially realistic.

Families can add real value by helping a graduate connect interests, strengths, and long-term opportunities before committing significant education dollars. A thoughtful plan can be far more effective than rushing into a major, school, or career track without enough clarity.

Parents can also help graduates think more carefully about their strengths, interests, and natural abilities before choosing a college major or career direction. Career counseling, aptitude assessments, and thoughtful conversations with trusted advisors can help students make more informed decisions and potentially avoid costly changes later.

Planning Matters

This season is about more than celebrating a diploma. It is about helping a young adult step into independence with a stronger foundation. Reviewing privacy documents, discussing expectations, preparing for education costs, and building sound money habits can all make the transition smoother and less stressful.

Graduation may feel like the finish line, but from a planning perspective, it really is the starting point. Parents who take time to prepare now can help their graduate move forward with greater confidence and clarity.

A financial advisor can help you think through education funding, cash-flow trade-offs, and broader planning priorities, while an attorney can help with the legal documents that may be appropriate for a new adult.

Shaping your portfolio in a changing market

For more than a decade, many investors felt they had to rely on stocks and private investments for returns because bond yields were so low. That has changed. After a historic rate-hiking cycle and some easing in inflation, bonds and cash are again offering income levels investors have not seen in years. At the same time, geopolitical tension, policy uncertainty, and demographic shifts have renewed the focus on protecting wealth through multiple means, including disciplined risk management.

Let’s examine why fixed income matters again, how yields and duration work, and how bonds can serve as both a source of income and a stabilizer when growth slows. The goal is not to predict the future with certainty. It is to help prepare for a range of outcomes with a plan that is consistent, flexible, and aligned with the investor’s values.

Fixed Income Is Back: Making Sense of Yields and Duration

For years, investors argued that bonds were no longer useful. Ultra-low interest rates made it hard to generate meaningful income without taking on more risk in equities, real estate, or private markets. The past few years have changed that. Short-term rates rose sharply to fight inflation, and although central banks have moved off peak levels and are gradually normalizing policy, yields across fixed income remain far more attractive than they were through much of the 2010s.

From a financial-planning perspective, this shift matters. It changes how investors weigh risk and return, how portfolios are built, and how retirement income is planned. To make the most of this environment, it helps to understand three ideas: yield, duration, and credit quality.

Understanding Yield: What Are You Earning?

Yield is the income a bond or bond fund generates, expressed as a percentage of the price paid. In simple terms, investing in a bond that pays 4 percent a year (and assuming it’s held to maturity), the annual income is roughly 4 percent of the investment. With bond funds, that number can change, but the principle is the same, yield is the compensation received for lending out money.

For investors who grew used to a near-zero yield on savings and cash, today’s income levels can look appealing. Short-term instruments may provide solid income with limited price movement. Intermediate-term bonds may offer somewhat higher yields, along with the possibility of price gains, if rates fall.

Still, yield should never be viewed on its own. A bond yielding 7 percent may look better than one yielding 4 percent, but the higher yield often reflects higher risk. The borrower may have weaker credit, or the bond may be more sensitive to rate moves. The key is to make sure the income pursued fits the investor’s risk tolerance, time horizon, and broader plan.

Duration: How Sensitive Is a Bond to Rate Changes?

If “yield” is possible earnings, then duration is how sensitive a bond’s price may be when rates move. A bond or bond fund with a duration of two years will usually move less than one with a duration of 10 years.

Short-duration bonds tend to be less sensitive to rate changes. They often have lower yields, but they usually come with smaller price swings. Intermediate-duration bonds can provide a balance between income and rate sensitivity, which is why they often form the core of bond portfolios. Long-duration bonds tend to be more volatile because they react more sharply to changes in interest rates.

In today’s environment, there is a real tradeoff. Staying focused on short-term bonds may feel safer, but it can create reinvestment risk if yields fall quickly. Going very long may expose investors to large price swings if inflation proves more persistent than expected. For many investors, a balanced approach is built around short to intermediate duration, high-quality bonds, which may offer attractive income while preserving flexibility.

Credit Quality: Who Are You Lending To?

The third factor is credit quality, or the borrower’s financial strength. Government bonds, investment-grade corporate bonds, and many municipal bonds usually carry less default risk than high-yield or speculative-grade bonds. In return, lower-risk bonds typically offer lower yields.

In a slower-growth environment, reaching too far for yield can be costly. Defaults and downgrades often rise when the economy weakens. For investors who already have meaningful equity exposure, the extra yield from lower-quality bonds may not justify the added risk.

A practical framework is to use high-quality government and investment-grade bonds as the core defensive anchor in a portfolio. Selective credit exposure can still play a role, but it should be sized carefully and diversified well. Municipal bonds may also make sense for higher-income investors, especially in high-tax states, when the after-tax benefit is attractive.

Bonds as an Income Source and Portfolio Stabilizer

Historically, high-quality bonds have played two main roles in diversified portfolios. They generated income, and they have often helped cushion equity-market stress. The 2022–2023 period was unusual because stocks and bonds both struggled as inflation rose and rates moved sharply higher from very low levels. Now that yields have reset, the starting point is better.

If growth slows or inflation keeps easing, high-quality bonds may provide support in certain market environments, although this is not guaranteed when equities come under pressure. Even when prices fluctuate, a higher income stream can help cushion total return. For retirees and those nearing retirement, that matters because it can support more durable withdrawal strategies and reduce sequence-of-returns risk (the danger that poor investment returns early in retirement may cause a portfolio to deplete more rapidly).

Putting This into Action

From a planning standpoint, it may be worth revisiting the balance between fixed income and equities in light of today’s higher yields and current investment goals. It also makes sense to check whether bond exposure is diversified across duration, sector, and credit quality rather than concentrated in one fund or one type of bond. Fixed income holdings should match the time horizon as well. Near-term cash needs usually belong in conservative vehicles, intermediate goals often fit core bonds, and long-term growth still calls for a measured balance with equities. Taxes matters too, because bond income may be more efficient in certain account types. Fixed income can be a useful tool for generating income, depending on market conditions and individual circumstances. It can also help add resilience to a broader financial plan. Talk with your financial planner to come up with a strategy that fits your unique situation.

Utilizing Tax-Efficient Strategies

Although there is no guarantee of a return on investment, purchasing U.S. stocks and bonds is a popular way for individuals and institutions to grow their wealth and generate income over time. However, it is important to consider the impact of taxes on these investments before and after making them. There are strategies for minimizing the tax impact on these kinds of investments.

When purchasing a stock, the investor is buying a share of ownership in a company. The value of the stock can go up or down, depending on the performance of the company and the overall stock market. If the investor sells the stock for a higher price than he or she paid for it, then they will incur a capital gain, which is subject to capital gains tax. The tax rate on capital gains can vary depending on how long the stock was held and depending on the investor’s current income level. Even so, capital gains tax is generally lower than the tax rate on ordinary income.

One strategy to minimize the impact of taxes on stock investment gains is to hold onto the stock for at least a year. If an investor holds the stock for a year before selling it, then any gains are considered long-term capital gains.  The tax rates on long-term capital gains is generally lower than the rate for short-term capital gains. Another strategy is to invest in tax-efficient stock funds, which are designed to minimize capital gains distributions and maximize dividends.

In addition to capital gains tax, investors in U.S. stocks also pay tax on any dividends. Dividend-paying stocks are usually offered by larger, more established companies with stable cash flows. Dividends are payments made by a company to its shareholders out of its profits. They can change over time and are not guaranteed. Dividends are subject to ordinary income tax, and the rate can vary depending on the investor’s personal income level. One way to help minimize the impact of taxes on dividends, is to consider investing in tax-efficient stock funds or holding on to stocks in a tax-advantaged account, like a Roth IRA.

Next, consider tax implications of investing in U.S. bonds. When purchasing a bond, the investor is lending money to a company or government entity. In return, the bond issuer pays the investor interest on the bond. The interest is subject to income tax, and again, the rate can vary depending on the investor’s personal income level.

One approach that can help minimize the impact of taxes on bond investments is to invest in municipal bonds, which are issued by state and local governments. These bonds are generally designed as tax advantaged. The interest on municipal bonds is generally tax-free at the federal level and may be tax-free at the state and local level. However, the interest may be subject to other taxes, and it may be included in adjusted gross income for purposes of calculating Medicare. It’s best to work with a financial advisor to understand the full impact on your personal situation.

Before investing in U.S. stocks and bonds it’s important to consider the impact of taxes on the overall portfolio. Although, there are strategies that can help minimize the impact of taxes on investment returns, a good financial professional can offer guidance for these situations and help you establish an overall tax efficient plan.

Matching your tolerance for risk with your investment objectives

Everyone wants a comfortable retirement, but the road to get there will depend on your specific situation. Investors assume a certain level of risk (but everyone hopes that their holdings will increase in value).

One of the most challenging aspects of investing involves matching tolerance for risk with investment objectives.

Beyond Your 401(k)

How much money is needed for retirement? It’s important to take the time to project the amount of money needed. While setting aside a percentage of income in a 401(k) is an important step, chances are that most people will need more than current saving limitations allow. Many investors supplement their employer-sponsored retirement benefits and Social Security income with personal investments. In order to develop a fitting plan, first consider the goals.

In 2026, the contribution limit for a 401(k) is $24,500. For workers age 50 or older, they may save an additional $8,0000 (for a total contribution of $32,500). And employees who are age 60-63 can contribute an additional $11,250 above and beyond the $24,500 contribution. While the contribution limitation often increases in future years and the employer may match contributions above this limit, the question is whether the employer-sponsored plan allows for saving enough? If an employee can, increasing savings now may help with retirement later.

Asset Allocation and Diversification

One question for an investor to consider is comfort level with investment risk. Investments may be aggressive, moderate, or conservative. The best option is dependent in large part on the investor’s stage in life, as well as financial resources available. Risk tolerance will most likely change over time.

Aggressive investors tend to have a longer time frame—with as many as 35 years or more to save and invest until reaching retirement—and therefore, a greater capacity to withstand loss. For example (the following percentages will vary greatly by investor and their definition of the terms aggressive and conservative investments), stocks may account for 85% of a relatively aggressive portfolio, compared to 40% for a more conservative portfolio. As investors near retirement, their asset allocation strategies generally change to account for lower risk tolerance and an emphasis on income over growth.

With a 401(k), the employee may be responsible for managing the portfolio, not the employer (although sometimes there are options for Target Date Funds (”TDFs”), which shift investment risk from more aggressive to more conservative funds as the targeted date approaches). While one aspect of a retirement savings plan is investing for the long term, it is still important to stay involved and adjust as needed. Choosing to be an active money manager rather than a passive investor can help with maintaining the appropriate allocation strategies to achieve long-term goals.

Keep in mind that it may be important to diversify within asset categories. For example, spread equity investments among large-cap, mid-cap, and small-cap stocks, as well as vary fixed-income investments with different types of bonds and cash holdings. The diversification strategy in a 401(k) should complement investment strategies used outside of the retirement plan.

Tax Considerations

Because retirement plans offer tax benefits, they carry certain restrictions, such as when withdrawals can be made without penalty. While funds in a 401(k) are made with pre-tax dollars and have the potential for tax-deferred growth, withdrawals made before the age of 59½ may be subject to a 10% Federal income tax penalty, in addition to ordinary income tax.

Today, some 401(k) plans offer a Roth 401(k). If an employer offers this option, employees may be able to designate all or part of their salary deferrals into a Roth account.

For those looking to save specifically for retirement, in addition to a 401(k), consider a Roth IRA, which allows earnings to grow tax free. While contributions are made with after-tax dollars, withdrawals are tax free if certain requirements are met. Talk with a trusted advisor for additional details.

Taking advantage of retirement accounts and their tax benefits is a valuable strategy but also consider building more liquidity and flexibility into your overall savings and investment plan. In the event you need access to funds before retirement, have a contingency plan such as an emergency cash reserve and relatively liquid investments. It’s important to keep in mind, however, accessing savings in the short term might impact long-term goals. In looking toward retirement, consider increasing overall savings, maintaining appropriate asset allocation and diversification strategies, and planning for taxes. Over time, investments will inevitably be affected by legislative reform and market swings, but with a long-term outlook and continued involvement, you are better positioned to manage the fluctuations and changes in order to achieve your objectives. Finding a trusted financial advisor can help keep you on the right path.

A strategic approach to retirement planning for today's executives

Retirement planning stands as one of the most critical financial endeavors, particularly for executives whose roles entail significant responsibility and compensation. In this pursuit, Deferred Compensation is a powerful tool offering executives an array of advantages in securing their financial future.

Understanding Deferred Compensation

Deferred Compensation refers to a compensation arrangement where a portion of an executive's earnings is withheld by their employer and paid out at a later date, often upon retirement or another predetermined event. This deferred income can take various forms, including stock options, restricted stock units, or cash bonuses.

Advantages of Deferred Compensation

Tax Deferral: One of the most significant advantages of Deferred Compensation is the ability to postpone taxes on the income until a later date, typically retirement, when the funds are distributed. By deferring taxes, executives can potentially lower their current tax burden, allowing for greater flexibility in managing their finances and investments.

Asset Protection: Deferred Compensation plans often provide executives with a level of asset protection. In the event of bankruptcy or legal claims, these assets may be shielded from creditors, offering executives added security and peace of mind.

Supplemental Retirement Income: For executives seeking to enhance their retirement savings beyond traditional retirement plans such as 401(k)s or IRAs, Deferred Compensation serves as a valuable supplemental income stream. The ability to defer a portion of their compensation allows executives to build a robust financial portfolio tailored to their long-term retirement goals.

Employer Matching and Incentives: Many Deferred Compensation plans offer employer matching contributions or incentives, further incentivizing executives to participate in these programs. The additional contributions can significantly boost the executive's retirement savings over time, amplifying the benefits of participating in the plan.

Flexible Distribution Options: Deferred Compensation plans often provide executives with flexibility in determining the timing and structure of distributions. Executives may be able to choose how they receive funds, whether as lump sum distributions, periodic payments, or annuities, allowing for customized income strategies aligned with retirement objectives.

The Role of Your Financial Advisor

Navigating the complexities of Deferred Compensation requires careful planning and expertise. A qualified financial advisor can offer executives invaluable guidance in assessing how Deferred Compensation aligns with financial goals and risk tolerance. A financial advisor can help in the following ways:

Comprehensive Financial Analysis: Providing a thorough analysis of the financial situation, taking into account factors such as current income, expenses, existing retirement accounts, and long-term financial objectives.

Risk Assessment and Mitigation: Assessing the risks associated with Deferred Compensation is paramount. A financial advisor can evaluate the risks and implement strategies to mitigate potential downsides, such as tax implications, market volatility, and liquidity concerns.

Customized Retirement Planning: Developing a customized retirement plan that integrates Deferred Compensation alongside other retirement vehicles, such as employer-sponsored retirement plans, individual retirement accounts, and investment portfolios.

Tax Optimization Strategies: Maximizing tax efficiency is a key aspect of retirement planning. A financial advisor can devise tailored tax optimization strategies around the Deferred Compensation plan, ensuring that tax liabilities are minimized both during the accumulation phase and at distribution.

Ongoing Monitoring and Adjustments: Retirement planning is dynamic and requires periodic review and adjustments. A financial advisor provides ongoing monitoring, making necessary modifications in response to changes in financial circumstances, tax laws, and market conditions.

Planning Matters

Deferred Compensation stands as a potent tool for executives seeking to fortify their retirement nest egg and achieve financial security in their golden years.

By partnering with a knowledgeable financial advisor, executives can navigate the complexities of Deferred Compensation with confidence, ensuring that their retirement aspirations are realized with prudence and foresight.

The tax code does not usually change in dramatic fashion from one year to the next, but even “routine” inflation adjustments can add up to meaningful dollars over time. For 2026, federal income tax brackets have been adjusted for inflation, and the standard deduction has stepped higher again. For many households, this combination slightly reduces tax drag compared with what they would have paid without the adjustments, even if income has risen. The result is a quiet, easy‑to‑overlook opportunity. Use these changes to revisit paycheck withholding, retirement savings mix, and bonus strategies early in the year.

There are still seven federal tax brackets for ordinary income in 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. While the rates themselves are unchanged, the income thresholds for each bracket have moved up, meaning that more of a worker’s income may fall into lower brackets than in 2025. At the same time, the standard deduction has increased to $16,100 dollars for single filers, $32,200 dollars for married couples filing jointly, and $24,150 dollars for heads of household. Older taxpayers and those who are blind may qualify for an additional standard deduction amount on top of those figures. For families who take the standard deduction, rather than itemizing, this larger “first chunk” of income shielded from tax can be meaningful.​

What does it mean in practical terms? If income has not changed dramatically, the total tax bill, as a percentage of income, may be slightly lower in 2026. This is because more of the earnings may be covered by the standard deduction or even taxed in a lower bracket.

Employer’s default withholding tables are based on IRS guidance and do not know individual situations, marital status, dual incomes, outside investment income, or the timing of bonuses. That makes 1Q2026 an ideal time to review W‑4 elections to ensure that:​

• Enough is withheld, so there isn’t an unpleasant surprise at filing.​
• Withholdings aren’t unnecessarily excessive, which effectively gives the government an interest‑free loan that could have been saved or invested.​

A paycheck review can also highlight opportunities to direct more pre‑tax or Roth contributions toward retirement. The IRS has increased contribution limits for many workplace retirement plans and IRAs for 2026, reflecting inflation and wage growth. If higher standard deductions and bracket thresholds make the tax bite a bit softer, consider leaning into Roth contributions to build up tax‑free income later in retirement. Roth dollars do not offer an upfront deduction, but as of now, qualified withdrawals in retirement are tax‑free, which can provide flexibility in later years when tax rates or take-home income may be higher. Conversely, higher earners who expect to be in a lower bracket in retirement might still favor traditional pre‑tax contributions, especially if their current marginal bracket remains in the upper bands.​

Bonus timing is another area where the 2026 bracket landscape matters. Many professionals receive significant bonuses in the first quarter of the year, which can push total taxable income up into higher brackets or trigger additional taxes.

If a large bonus is coming, check with a trusted financial advisor to help estimate where total income will fall relative to the 2026 brackets, then adjust withholding or retirement deferrals accordingly.

It is also important to coordinate paycheck planning with other elements of taxation. Couples who both work often have withholding set as if they were single, which can lead to an under‑withholding problem once two incomes are combined on a joint return. Self‑employment income, side gigs, or significant investment income can also require quarterly estimated payments that are not captured in employer withholding. In these cases, a mid‑year or at least annual check‑in with an advisor and tax professional can help right‑size withholding and estimates so that the combination covers projected liability without excessive over‑payment.​ From a planning perspective, consider treating the paycheck as a controllable lever in the broader financial strategy. The 2026 brackets and deductions set the backdrop, but W‑4 choices, savings rates, and use of tax‑advantaged accounts determine how much of the gross income ultimately shows up on the bottom line. An advisor can run side‑by‑side scenarios showing how different withholding settings, Roth vs. traditional mixes, and bonus deferral decisions affect the year‑end tax outcome and long‑term projections. This kind of proactive “paycheck planning” turns what might feel like a dry IRS update into tangible decisions that support the family’s financial goals.​

In short, higher standard deductions and inflation‑adjusted brackets for 2026 may be a tailwind for many taxpayers. By reviewing withholdings, aligning retirement contributions with the current and expected future tax picture, and thoughtfully managing bonus income, you may be able to manage tax exposure more efficiently while aligning income with the broader financial strategy. Talk with your advisory team early in the year so that your paychecks throughout 2026 reflect the strategy you intend.

Consequences of following fraudulent advice can be severe and expensive

In today's digital age, social media has become a go-to source for quick tips and hacks on everything from cooking recipes to home repairs. However, when it comes to tax advice and social media, taxpayers should tread carefully. The lure of easy fixes and big refunds circulating on platforms like TikTok and others can not only be misleading, but dangerous, potentially leading to identity theft and serious tax problems.

The Perils Of Misleading Tax Information

There’s an alarming trend where social media users share egregiously inaccurate tax advice, including the misuse of common and obscure tax documents. Among these are schemes suggesting falsification of Form W-2 information or inappropriate use of Form 8944, a technical e-file form seldom required by the average taxpayer.

These tactics, aimed at inflating refunds through deceit, could lead honest taxpayers down a path fraught with civil and criminal penalties.

Taxpayers should instead seek reputable sources for tax information and avoid falling into these harmful scams.

Social Media Schemes

Two deceptive practices to keep on alert for are:

False W-2 Claims: This involves fabricating income and withholding information on Form W-2 to unjustly boost refunds. Variants of this scheme misuse other forms, like Form 7202 and Schedule H, encouraging false claims for credits and refunds based on fictitious circumstances.

Misuse of Tax Credits and Forms: Scammers have been encouraging the incorrect application of forms like Form 7202 for credits unrelated to the filer's actual tax situation, exploiting the goodwill of taxpayers seeking legitimate deductions.

Verifying Tax Information: The Safe Path

The IRS underscores the importance of turning to reliable sources for tax guidance. IRS.gov remains the gold standard for accurate information, hosting a comprehensive repository of tax forms and instructions. Taxpayers are urged to use this resource to confirm the legitimacy of tax advice and to follow official IRS social media accounts for up-to-date, trustworthy tax information.

Caution And Due Diligence

The proliferation of inaccurate tax advice on social media highlights a crucial need for vigilance among taxpayers. The allure of quick fixes and substantial refunds can be tempting, but the consequences of following fraudulent advice can be severe.

By relying on reputable sources and verifying information through official channels like IRS.gov, and trusted tax professionals, taxpayers can navigate the tax season safely and efficiently, safeguarding themselves against the pitfalls of misinformation and scams.