20254thqtrnewsletterfinal

THE BIG PICTURE WITH JEFF BRAYTON

“It is a gloomy moment in the history of our country. Not in the lifetime of most men has there been so much grave and deep apprehension; never has the future seemed so incalculable as at this time. The domestic economic situation is in chaos. Our dollar is weak throughout the world. Prices are so high as to be utterly impossible. The political cauldron seethes and bubbles with uncertainty. Russia hangs, as usual, like a cloud, dark and silent, upon the horizon. It is a solemn moment. Of our troubles no man can see the end.”

This quote captures the current mood of many Americans. Recent polls indicate all-time high levels of anxiety and stress across every demographic, and these emotions are not unfounded.

We have entered a turbulent period over the last few years. After several decades, inflation has re-emerged from historically low levels (how do those trips to the grocery store make you feel these days?). Technology, with AI leading the way, is reshaping society at an accelerating pace. Our politicians can’t even work together to keep the government from shutting down. On top of these troubles at home, we are seeing rising geopolitical tensions—the ongoing war in Ukraine, conflict in the Middle East, and increasing rivalry with Asia.

No wonder we are all a little tense. Now if you’ve read this far, I have a zinger for you. Did you notice that I didn’t give the date of the Harper’s Magazine quote? It reads like something that could have been published last week. It may surprise you, as it did me, appeared in the magazine in 1847 this in perspective: if you are near my age (64), that quote may have been read by your greatgreat grandparents 178 years ago!

Perspective is exactly why I included the 1847 Harper’s Magazine quote. The people

in the photo below—perhaps some of your relatives!— are from the mid-1800s. I keep this photo near my desk as a reminder of progress. Our world today would appear as science fiction to this family. It makes me wonder how

but I am confident his quote caused some to become fearful and sell their investments.

If you read our newsletters and Friday commentaries, you are familiar with our dedication to covering innovation, technological progress, and even Nobel Prize winners. To us, this is more than just interesting. Longterm optimism is fundamental to successful investing. The very definition of investing involves parting with your money today for the hope of future returns. Optimism is a powerful antidote to prevent overreacting and selling investments based on negative current events.

We believe that, over time, the world will continue to improve. Our only forecast is that great businesses will do their best to continue innovating, as they have since 1847, and this will lead to potential increases in earnings and dividends. Continue to own these businesses and participate in their growth; over time, this has proven to be an effective way to build and preserve wealth.

Mark and I are fans of legendary investor Warren Buffett. At age 95, Mr. Buffett has announced that this is his final year as CEO of Berkshire Hathaway. As participants and students in the investment industry, it’s hard to describe Mr. Buffett’s influence over a generation of money managers. Over his long tenure, he did more than just generate great returns for shareholders. In his annual letter to shareholders, he has called out corporate greed, emphasized proper and transparent accounting, and served as the ultimate voice of long-term optimism.

As a small tribute to Mr. Buffett, I’d like to close this section by sharing a few of his timeless words of wisdom:

VERSION: LETTER

From his 2022 Annual Letter to Shareholders:

Ihavebeeninvestingfor80years—morethan one-thirdofourcountry’slifetime.Despite ourcitizen’spenchant-almostenthusiasm forself-criticismandself-doubt,Ihaveyet toseeatimewhenitmadesensetomakea long-termbetagainstAmerica.AndIdoubt verymuchthatanyreaderofthiswillhavea differentexperienceinthefuture.

From his 2025 Thanksgiving Letter to Shareholders:

March 18, 2019

Oneperhapsself-servingobservation.I’m happytosayIfeelbetteraboutthesecond halfofmylifethanthefirst.Myadvice:don’t beatyourselfupoverpastmistakes-learn atleastalittlefromthemandmoveon.It isnevertoolatetoimprove.Gettheright heroesandcopythem.

Martin & Marsha Lynch 43347 Nebel Trl Clinton Twp MI 48038-2465

Dear Martin & Marsha:

Greatnessdoesnotcomeaboutthrough accumulatinggreatamountsofmoney, greatamountsofpublicityorgreatpower ingovernment.Whenyouhelpsomeonein anythousandsofways,youhelptheworld. Kindnessiscostlessbutalsopriceless. Whetheryouarereligiousornot,it’shardto beatTheGoldenRuleasaguidetobehavior.

I love sending WorthWhile mix of cultural, financial and latest edition of Raymond James’

The Spring edition takes us guide for surviving in just about planning.

IwishallwhoreadthisaveryHappy Thanksgiving.Yes,eventhejerks;it’snever toolatetochange.Remembertothank Americaformaximizingyouropportunities.

Many of my friends tell me everyone, and I believe there thoughts when you can. I always

Sincerely,

If you find these quotes thought provoking, or even inspirational, I hope you will check out this quarter’s Book Recommendation. I promise you do not have to be a financial nerd to appreciate Warren Buffett’s writing. Happy Thanksgiving and hope to see you at this year’s Holiday party.

“Plans are of little importance, but planning is essential”

The Best Way to Take RMDs From Your Retirement Account

Under current IRS rules, you must take a required minimum distribution (RMD) from any pre-tax retirement accounts. For those born between 1951 and 1959, this begins in the calendar year you turn 73. If you were born in 1960 or after, your RMD begins at age 75. But what is the best way to take those distributions? Over the years, numerous clients have asked Jeff and I this question. I’ll be sharing insight from our experience, as well as from a recent article in The Wall Street Journal by Derek Horstmeyer, a professor at George Mason University.

Clients with specific needs and financial requirements throughout the year prioritize needs over the strategy of optimal timing. For instance, some clients need monthly distributions to cover living expenses. Other clients use their RMD for extra expenses like travel and will take a distribution to cover this expense prior to their trip. Many clients don’t necessarily need the required distribution each year but are forced to take it, per the IRS rules.

The optimal strategy idea is geared more towards those clients with the flexibility to decide when to take their RMD each calendar year. The Professor Horstmeyer study looked at three options: 1) taking a lump sum distribution in January 2) taking a lump sum distribution in December 3) taking twelve equal distributions each month.

The study favored a monthly distribution spread out over a 12-month period for the majority of investors. This option may reduce the risk of market volatility throughout the year, which can be especially important in years like 2020 and 2022. Outside of market volatility, consider your own personal tax rate. For investors who fall into a high tax bracket (32%, 35% or 37%), it is often times more advantageous to delay taking the RMD until the second half of the year. This is due to the step of withholding taxes and in the process giving the IRS and state a “free loan” with your money as they hold it throughout the year. We understand that very few people in the U.S. fall in the highest tax brackets during retirement (household income exceeds $394,000 if married filing jointly or $197,000 if filing individually). This is one of the areas we like to work with your

FINANCIAL PLANNING WITH MARK ROMIN

tax preparer to coordinate your distributions as part of your overall financial plan. Most of our clients take their RMD in a lump sum towards the end of the year. This option came in second place in Horstmeyer’s study, allowing the money to stay invested throughout the year. Very few clients take a lump sum distribution at the beginning of each year and only do so based on need for the money early in the calendar year.

One concept we believe is important to understanding successful financial planning is that is is rarely about hitting home runs. Rather, success is generally the result of many smaller decisions (singles and doubles) made over long periods of time. We all want fast decisions with big returns, but that is seldom the way planning works. The time and spacing of distributing RMD’s is a perfect example of us helping you make small decisions together correctly and according to your goals and needs.

As with almost all questions involving your personal financial decisions, there is no “cookie cutter” correct answer to when and how to take your RMD. This is one of the reasons it’s so important for us to talk, meet, and plan in advance. Our experience tells us that mistakes are most often made when individuals wait until the last minute to make financial decisions. One of our goals is to not let this happen. We know these are not always the most exciting conversations, but they are important. As with all our financial planning we want to communicate and take action based on your specific situation.

As always, please feel free to reach out to Jeff or me if you have questions and when you are ready for this discussion.

Book Recommendation

“Berkshire Hathaway Letters to Shareholders: 1965-2024”

By Warren E. Buffett

A book containing only a CEO’s letters to shareholders seems like a dull recommendation. If you have the time, I assure you Warren Buffett’s letters are a treasure of no-nonsense thinking and wisdom.

Quote of the Quarter

“My rule—and it’s good only about 99% of the time, so I have to be careful here—when a crisis comes along, the best rule you can possibly follow is not ‘Don’t stand there, do something,’ but ‘Don’t do something, stand there!’”

John Bogle Founder, The Vanguard Group

The transition of Chief Compliance Officer (CCO) from Pat to Sar ah is now complete. Pat is enjoying her retirement while still consulting and helping our office as needed. I wanted to share some personal words about Pat.

Pat joined the office in June 2011. If you have worked with us for many years, you may remember the office staff once consisted of just Pat and me. As the saying goes, we both wore several hats—but Pat wore far more than I. She ran the office he rself on a day-to-day basis, with far less technology than we have available today.

From time to time, we still laugh about the long, intense inter view process I put her through, which included an extensive background check. You would have thought she was applying to be CEO of Raymond James! Hiring Pat was a huge step for me, and I knew almost immediately I had hit a home run. From the very start, Pat has been an integral part of the growth and structure of our office.

Pat and I have spent a huge amount of time together over the ye ars. The time has flown for me—I’m not sure Pat feels the same! We haven’t always agreed on everything, but I can’t recall us ever arguing. We have spent far more time laughing.

As you can see from the pictures on this page, Pat isn’t wastin g any time enjoying her retirement. I expect she will be spending more time in Florida closer to her son Tim, and more time with her local group of interesting close friends (they kn ow who I’m talking about).

Cliffs of Moher, Ireland in July

Mednenhall Lake, Alaska in August

Indian Harbour Beach, FL in September

We hope you will join us for our annual Holiday Party on December 10th .

Thank you for taking the time to read our newsletter and for yo ur continued trust and confidence.

Jeff Mark Tina Sarah

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