Bailey Wealth Advisors

☂️ One lawsuit has the potential to undo what it took a lifetime to build.

Most people assume their home and auto insurance policies cover everything. For everyday situations, they often do.

The problem is the situation that you never saw coming.

Think about where liability risk actually shows up.

🔹 A serious car accident where you are found at fault and multiple people are injured

🔹 A guest getting hurt on your property

🔹 A defamation claim from something posted online

🔹 A teenage driver in your household

🔹 An incident involving a rental property you own

🔹 A dog bite that leads to a settlement

Standard home and auto policies typically cap liability at $300,000 to $500,000. For someone who has spent decades building wealth, that coverage limit can leave a gap.

An umbrella policy extends that coverage to $1 million or more.

Most people who add an umbrella policy say the same thing afterward: they wish they had done it sooner.

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https://www.baileywealthadvisors.com/resource-center/insurance/keep-your-umbrella-handy

📝 August is National Make-A-Will Month, a timely reminder that estate documentation deserves your attention.

A whopping 76% of Americans don't have a will. This can lead to unintended consequences for those with asset distribution and care for children.

A comprehensive estate strategy can help preserve your legacy while helping manage the probate process. Consider reviewing your documentation periodically, particularly after significant life events such as marriage, divorce, or the birth of children and grandchildren.

Our team can help your legal counsel facilitate comprehensive estate coordination. Contact us to discuss how we can help.



Source:
Caring.com, February 18, 2025.

True or false: A grandparent-owned 529 plan can hurt a grandchild's financial aid eligibility.

❌ False. That rule changed.

The FAFSA opens October 1, and the decisions that affect what shows up on it can make sense to review right now.

Distributions from a grandparent-owned 529 plan no longer count as student income, which previously reduced aid eligibility by up to 50 percent of the amount withdrawn.

For families who held off on funding or using grandparent accounts because of the old rule, the math has fully flipped.

Generally speaking, tuition bills land in August. Before the checks go out, a few things are worth a look:

🔹 Whether a grandparent-owned 529 now makes more sense than a parent-owned one for new contributions

🔹 Which account to draw from first if both exist

🔹 Annual exclusion gifts and the five-year superfunding option ($95,000 per donor, per beneficiary)

🔹 Beneficiary changes if the original student finished school or shifted plans

🔹 A 529 plan is a tax-advantaged education savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10 percent federal penalty tax.

🔹 Consider talking to your tax, legal, or accounting professional before moving ahead.

When was the last time you updated your will?

Will Power Preparing for the eventual distribution of your assets may not sound enticing. But a will puts the power in your hands.

⚠️ A 10 percent position in a single stock is sometimes called a concentrated position.

Most people don't realize it when they have one.

It's usually not a conscious decision.

Ten years go by, and one company’s stock is a large percentage of the portfolio.

That isn't loyalty. It's exposure.

🔍 A few questions you might consider:

🛑 If the stock dropped tomorrow, what would change for your family?

🛑 Is the position there because selling always felt premature?

🛑 Has the embedded capital gain quietly become the reason nothing has been done?

There are several ways to unwind a concentrated position without writing a large check to the IRS.

The correct path depends on the situation.

If this sounds familiar, we’d welcome a conversation to share ideas that may help. Before any action is taken, however, it’s important to consult your tax, legal, and accounting professionals so you understand the tax consequences of any decision.

December is the busiest month for RMDs.

But waiting until then can mean you miss some chances with charitable giving or with estate ideas.

For anyone age 73 or older, the required minimum distribution is mandatory, and the penalty for missing a deadline can be steep. If taken before age 59½, withdrawals are taxed as ordinary income and may be subject to a 10 percent penalty.

But the timing of the withdrawal and which accounts it comes from can shape the tax bill in ways a December scramble can’t.

A few things worth knowing:

👉 Multiple IRAs can be aggregated; retirement plans cannot. Each RMD must come from that specific plan.

👉 In 2026, a Qualified Charitable Distribution may allow up to $111,000 per individual to go directly from an IRA to a qualified charity, satisfying the RMD without adding to taxable income. Check with your tax, legal, or accounting professional if you’re considering this approach.

👉 A QCD has to be a direct transfer. Once the money lands in a personal account, the option is gone.

👉 Coordinating across accounts, spouses, and inherited IRAs is where most of the value might sit.

Mid-year is when there is still room to model it.

If RMDs are part of your plan this year, this is a good time to map them.

Travel fraud gets worse every summer, and we hear more stories from clients every year.

A quick login from the lobby.

A brokerage app checked from the airport lounge.

A bank balance pulled up at a cafe.

Public networks are where accounts can get exposed.

A few habits worth building before the next trip:

🛑 Skip public WiFi for anything financial. Use cellular data or a personal hotspot.

🛑 Turn on real-time transaction alerts for every card.

🛑 Consider using credit, not debit.

🛑 Watch for skimmers (devices attached to gas pumps and ATMs that copy card data).

A few minutes of preparation before the trip can help prevent months of cleanup after.

🗓️ "Let's talk about it in December."

By December, choices can be limited. Mid-year is often the sweet spot for preparation.

✅ The bracket picture is clearer than it was in January.

Roth IRA conversion timing is flexible within the calendar year, but the bracket math can influence the outcome.

Six months of runway means scenarios can be modeled, not rushed.

If the market dips before year-end, the same tax math may change. Those windows rarely give notice. Keep your tax, legal, or accounting professional in the loop if you see an opportunity.

December conversions can be reactive.

Mid-year conversions can be designed.

If you’re wondering about timing, we welcome a discussion.

📋 To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.

🚨 YOUR NEXT PARTY INVITE COULD BE A TRAP

Our team came across this one and wanted to pass it along.

Hackers are hijacking actual friends' accounts to send fake invites via Evite, Paperless Post, or Punchbowl.

THE DOMINO EFFECT:

▪️ You hit RSVP in a friend's email.

▪️ A fake login page steals your password.

▪️ The same invite blasts to your entire contact list from your account.

▪️ Hackers now have access to your banking, brokerage, and password reset services.
Here’s how to spot a fraudulent party invite!!!

🔍 Check the Sender: Real Paperless Post invites come from an official paperlesspost.com address, Evite from evite.com, and Punchbowl from punchbowl.com, not a personal email address.

Protecting your wealth starts with protecting the email tied to it. Hope this helps!

Markets posted solid second-quarter gains as investors responded to upbeat economic reports, continued diplomatic efforts in the Middle East, and strong first-quarter corporate numbers. The S&P 500 rose 14.87%, the Nasdaq gained 21.41%, and the Dow picked up 12.90%, while Canada’s S&P/TSX Composite added 6.37%. Looking ahead, markets may continue to react to Middle East updates, oil prices, inflation trends, and the pace of global commerce through the Strait of Hormuz. From U.S. home price growth to Canadian housing forecasts, this quarter’s by-the-numbers highlights the data behind one of North America’s most closely watched markets.

Monthly Market Insights | June 2026 Stocks pushed higher in May, fueled by big tech names, positive economic news, and ongoing diplomatic efforts in the Middle East.