Love and Money: Ensure Your Financial Future Together

Valentine’s Day isn’t just about flowers and chocolates – it’s about celebrating the partnership you’ve built and the dreams you’re chasing together. It’s also the perfect time to ask: Are your financial goals aligned? Whether it’s creating a legacy, mapping out your dream retirement, or preparing for life’s surprises, a solid financial strategy keeps you focused on what matters most – each other.

Think of it this way: both love and wealth thrive with care and attention. By revisiting your financial goals, you can ensure your money supports your shared passions and establishes a secure and fulfilling future. The strongest relationships plan for the long haul – and maybe a few adventures along the way.

This Valentine’s Day, why not show a little love to your finances? Let’s work together to craft a plan that helps you leave a legacy with confidence and live a life you both will enjoy.

Jeff Wetta, RPS and Dustin Jackson, CFP® RICP®
Managing Partners

Your Market Update

Markets Positive in January Despite Tech Scare

Equity markets began the year on a positive note, even with continued volatility. As of January 27th, the S&P 500 was up 2.3%, the tech-heavy Nasdaq was up 0.53%, and the slower-growing companies of the Dow Jones Industrials were up 5.1%. Additionally, small-cap stocks, as represented by the Russell 2000 Index, were up 2.5%.

Regarding continued volatility, the CBOE Volatility Index (VIX) closed on January 27th at 17.9. This was a bit above last year’s average of 15.3, but generally, a VIX reading of 20 or below is considered stable.

Fixed income markets ended the month generally flat, with the Bloomberg US Aggregate Bond Index up just 0.11% as of January 27th.

The above results include the Monday, January 27th tech sell-off, which was driven by worries over a cheaper AI model led by the Chinese firm DeepSeek. The primary concern is that providers of AI infrastructure may have a reduced cash flow stream. It is too early to make concrete conclusions, but this issue is now at the forefront for tech investors, especially those with exposure to AI infrastructure.

December Economic Data

The Bureau of Labor Statistics (BLS) released the December CPI report on January 15th. The report stated that headline CPI rose by 2.9% (higher than December’s 2.7%), and the month-over-month increase was 0.4% (higher than December’s 0.3%). Despite the increased levels, the numbers aligned with expectations, and the market reacted positively. This CPI report precedes a Fed meeting that will be held on January 28th, after which the Fed will clarify the future direction of rates. Prior to the December meeting, the Fed made relatively hawkish statements and suggested they would likely slow the pace of rate cuts over the next two years. Currently, the projection is for two cuts in 2025 and two cuts in 2026.

The BLS also reported on unemployment on January 10th. December job growth was strong, at 256,000 new jobs versus 227,000 new jobs in November, and the unemployment rate remained at 4.1%.

Earnings – the Big Driver for 2025

Company earnings were solid for 2024; full-year earnings are expected to finish around 11%.

For 2025, earnings growth projections are closer to 14.8%. This projected growth is well above the 10-year average of 8.0% (from 2014 to 2023) and represents both opportunity and potential risks. Strong earnings growth should help propel markets upward, but this growth sets a high bar and could result in negative trading if the numbers are not achieved.

To Sum Up

We believe equity markets will continue to perform well in 2025 and that the new pro-business and pro-market administration will ultimately favor company earnings. At the same time, our portfolios are solidly diversified and well-positioned for varying economic scenarios, including a higher-for-longer rate environment.

Market valuations are currently at 22.2X earnings, above the 5-year average of 19.7X and the 10-year average of 18.2X. However, we have incorporated these relatively full equity valuations into our analysis and will continue exercising care as we build our portfolios.

On the political front, tariffs remain unknown and a source of some market uneasiness. Widespread adoption across all imports will likely involve congressional approval, making heavy-cost tariffs less likely. Rest assured that we will be monitoring tariffs and their potential impact on market sectors closely.

Inflation worries are back to a degree, but the rate-cut cycle has started, which traditionally helps fuel stocks.

We expect lower returns for fixed-income investors as short-term rates decline. Consequently, as rates continue to come down slowly, moving to higher-yielding alternatives may make sense.

In summary, we have confidence that our team continues to analyze the vast array of economic statistics, market events, and company earnings data available as we look forward to 2025.

Sevasti Balafas, CFA, CPWA®
CEO & Founder
GoalVest Advisory

Sources: JP Morgan Asset Management, Bureau of Economic Analysis, Bureau of Labor Statistics, Morningstar, Factset, Slickcharts, Yahoo Finance, and Ycharts

Tax Filing Season is Here!

• Tax documents will start becoming available now.
• First wave of documents is released late January.
• Second wave of documents is released mid-February.
• Last wave of documents is released late February.
• You may still receive a revised tax document, so keep an eye out for these.
• Did you know you can find your Schwab or LPL tax documents online at:
• https://gentry-wealth.com/
• Click on Client Portal, Advyzon, Documents, Custodian Documents, Tax Forms(Schwab)
• https://www.schwab.com/
• Visit the 1099 Dashboard
• https://accountview.lpl.com/web/login
• Click on Account View, Documents & Statements, Tax Forms