Zach Holly - Financial Planner

https://www.investopedia.com/pce-inflation-report-may-12006400

The Fed's Favorite Inflation Gauge Rose To A Fresh Three-Year High The uptick in core inflation signals broader, more persistent inflation and is especially important for the Federal Reserve, which uses the core PCE index as its benchmark.

https://www.investopedia.com/fed-is-talking-tough-on-inflation-will-it-follow-through-12003089

The Fed Is Talking Tough On Inflation. Will It Follow Through? The Federal Reserve signaled a hard stance on inflation, but experts question whether it will raise rates soon.

💼 High-Income Business Owner? You May Be Missing One of the Biggest Tax Deductions Available.

Most successful business owners know about SEP IRAs and Solo 401(k)s.

Far fewer know about Defined Benefit Plans.

For the right business owner, a Defined Benefit Plan can allow six-figure annual tax deductions while accelerating retirement savings.

🎯 Who is a good fit?

✅ Dentists
✅ Physicians
✅ Successful Contractors
✅ Consultants
✅ Attorneys
✅ Business Owners age 45+

Typically, the best candidates are:
• Earning $250,000+ annually
• Consistently profitable
• Looking to reduce taxes
• Behind on retirement savings or wanting to catch up quickly

💰 Why business owners love them:

• Potentially contribute $100,000–$300,000+ per year
• Significantly reduce current taxable income
• Build retirement assets rapidly
• Often paired with a 401(k) for even greater savings

📊 Example:

A 55-year-old contractor earning $400,000 may be able to contribute well into six figures annually, potentially saving tens of thousands of dollars in taxes each year while building a substantial retirement nest egg.

⚠️ Defined Benefit Plans aren't for everyone.

They work best for business owners with:
• Strong, consistent cash flow
• A desire to maximize retirement savings
• Several years before retirement

💡 Advisor Insight:

Many business owners spend years minimizing taxes without building significant retirement assets.

A Defined Benefit Plan can help accomplish both goals at the same time.

If you're a dentist, physician, contractor, or other high-income business owner and want to know whether a Defined Benefit Plan could work for you, let's have a conversation.

📞 Zach Holly
First Financial Strategies, LLC
📱 623-330-2656
📧 [email protected]

https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-06152026-11997917

Stock Market Today: Stocks Soar, Oil Tumbles on U.S.-Iran Deal Stocks jumped and oil futures tumbled on Monday after the U.S. and Iran reached a deal to end their months-long war and reopen the Strait of Hormuz.

📈 Tired of Market Volatility? There Are Other Options.

If you're nearing retirement—or already retired—you may be asking yourself:

💭 "How much risk should I still be taking?"

For many retirees, the goal shifts from maximizing growth to protecting the savings they've spent decades building.

That's why fixed annuities have become a popular option for some investors looking for stability and predictable growth.

🔒 Current fixed annuity rates are attractive:
• 3-Year Fixed Annuities: close to 5%
• 5-Year Fixed Annuities: close to 6%

(Subject to carrier availability and change.)

✅ Principal protection from market losses
✅ Guaranteed interest rates
✅ Predictable growth
✅ No day-to-day market stress

These strategies can be especially helpful for:
• People within 5–10 years of retirement
• Retirees taking income from their portfolios
• Investors concerned about market volatility
• Those looking to protect a portion of their nest egg

💡 The goal isn't necessarily to move all of your money out of the market.

For many people, it's about taking the stress off some of their money while keeping the rest positioned for growth.

A well-designed retirement plan balances growth, income, liquidity, and protection.

If recent market swings have you losing sleep, it may be time to explore whether a fixed annuity could be a fit for part of your retirement strategy.

https://www.investopedia.com/what-to-expect-in-markets-this-week-a-new-consumer-price-index-reading-and-updates-from-tech-giants-11991100

What to Expect in Markets This Week: a New Consumer Price Index Reading and Updates from Tech Giants Apple is expected to release a new iteration of Siri, Adobe Reports and SpaceX may IPO this week.

📉 What Is Tax Loss Harvesting? And Why Do Wealthier Investors Pay Attention to It?

When markets are volatile, most people focus on what they've lost.

Savvy investors often ask:
💡 "Can this loss help me save on taxes?"

That's the idea behind tax loss harvesting.

🔹 A Simple Example

Let's say you own a stock in a taxable investment account (not an IRA or 401(k)).

📈 Earlier this year, you sold Stock A and realized a $20,000 gain.

Later in the year, you own Stock B that is down $15,000.

By selling Stock B and realizing the loss, you could potentially:

✅ Offset $15,000 of your $20,000 gain

Instead of paying taxes on a $20,000 gain, you may only owe taxes on a $5,000 net gain.

🔹 Another Example

Suppose you have:

• $10,000 in realized gains
• $13,000 in realized losses

Your losses could:

✔ Offset the entire $10,000 gain
✔ Potentially offset up to $3,000 of ordinary income annually

Any remaining losses may be carried forward to future years.

⚠️ Important Notes

Tax loss harvesting generally applies to taxable brokerage accounts.

It does not provide the same benefit inside:

❌ Traditional IRAs
❌ Roth IRAs
❌ 401(k)s

Also, investors must be careful of the wash sale rule, which can disallow a loss if substantially identical investments are repurchased too quickly.

💡 The Takeaway

Tax loss harvesting isn't about trying to time the market.

It's about being intentional with taxes and potentially improving your after-tax returns over time.

Many investors focus on investment performance.

Successful long-term investors also pay attention to tax efficiency.

BETTER BREADTH. The cap-weighted S&P 500 made a new all-time high on April 15, driven by strong megacap performance in the wake of the Iran War, but the S&P 500 Equal Weight Index had been lagging. That changed on 5/22 when the Equal Weight Index made a new all-time high itself as market breadth improved. (Source: Bespoke)

ANALYSTS CAN’T KEEP UP. Semiconductor stocks have been so hot
that they’ve raced past Wall Street analyst price targets. The average Russell 1000 stock sits about 15% below its consensus analyst price target, but the average stock in the Semiconductor group was 2.2% above its consensus price target as of 5/28.(Source: Bloomberg)

https://www.investopedia.com/slowing-growth-rising-inflation-create-dilemma-for-fed-11985354

Fed Faces Tough Choices as Growth Slows and Inflation Rises With every new bit of economic data, the Federal Reserve's mission to keep inflation low and employment high at the same time looks more like a double bind.

https://www.franklintempleton.com/articles-us/retirement/may-is-529-month-five-action-steps-every-family-should-take

May is 529 Month: Five action steps every family should take May is 529 Month. As college costs rise, learn five practical ways to maximize your plan’s tax benefits, flexibility and growth potential to prepare for the future.