Market Perspective: The Power of Staying Invested

We've certainly seen our share of ups and downs during the first few months of 2025. The markets have been on quite a ride, influenced by changes in fiscal policy, persistent inflation headlines, and various global economic factors. With a new administration settling in and potential policy changes on the horizon, it's completely natural to feel concerned about your investments.

The chart above reminds us of a timeless investment principle: it's about time in the markets, not timing the markets. Even hypothetical investors with consistently poor timing (buying at market peaks before significant downturns) ultimately fared well by simply staying invested through various historical challenges.

Market volatility is a natural part of investing, and this chart helps put current the uncertainties in perspective. While past performance never guarantees future results, historical patterns show that patient investors who maintained their market exposure during difficult periods were often rewarded over time.

As we navigate 2025's market conditions together, let's view this as an opportunity for thoughtful conversation about your portfolio rather than reacting to short-term fluctuations. Maintaining focus on your long-term financial goals remains sensible, and this might be the perfect time to review how your investments are allocated, ensuring everything still aligns with your dreams and goals.

Remember that while all investments involve risk, market dips often create opportunities for patient investors who keep their eyes on the horizon rather than the daily headlines. We're always here to discuss whether any adjustments to your diversified strategy might help you sleep better at night while keeping you on track for long-term success.

The full article that contains the chart above was created by iShares and can be found here.

Your Financial Plan: Now Easier Than Ever to See!

One of the things I was most excited about when I started TerraFirma Wealth Partners was giving you the ability to view your financial plan whenever you want. This wasn't possible at my last firm, and I really believe it's important to keep your long-term goals in mind when making big financial decisions.

Having access to your plan lets you see the impact of major changes. Questions like: What if I retire earlier? What if I spend $500 more a month? What if I take that dream trip that costs $30k? We can model all of those and see the impact instantly!

This isn't meant to be a tool you use completely on your own, of course. I'm still here to guide you and keep us on track to your goals. But it does give you easy access to see the results of your financial plan whenever you'd like.

Beyond seeing your long-term projections, there are also tasks we can assign to you as action items. This will help you stay on track and know when you need to take care of certain things.

And then there's the Vault, which lets us securely share documents. So if you need to send me any sensitive info, that's the best way to do it.

How about I show you all of this? Click on this link to watch a quick video I made, giving you a tour of the Right Capital portal after you log in.  You should have your login already but if you don’t, search your inbox for an invite from Right Capital.  If you’re having trouble getting in, please let us know and we’ll help you.

Watch your back.  And front.  And sides.  Scammers are everywhere!

As if doing taxes weren’t enough of a headache, there are people out there trying to take advantage of this stressful time.  The IRS has recently released their Dirty Dozen list of tax scams.  Here is a list of the twelve:

1. Email Phishing Scams: Scammers send fake emails or texts claiming to be from the IRS to trick victims into providing personal and financial information, often promising a refund or threatening legal action.

2. Bad Social Media Advice: Misleading tax information on social media platforms can lead to incorrect tax filings and potential identity theft.

3. IRS Individual Online Account Help from Scammers: Scammers pose as helpers to create IRS Individual Online Accounts, aiming to steal personal information and file fraudulent returns.

4. Fake Charities: Scammers set up fake charities to exploit generosity, seeking money and personal information that can be used for identity theft.

5. False Fuel Tax Credit Claims: Taxpayers are misled into claiming the Fuel Tax Credit, which is primarily for off-highway business and farming use.

6. Credits for Sick Leave and Family Leave: Taxpayers are incorrectly claiming credits meant for self-employed individuals during the pandemic years.

7. Bogus Self-Employment Tax Credit: Scammers promote a non-existent credit to mislead self-employed individuals into filing false claims.

8. Improper Household Employment Taxes: Taxpayers invent fictional household employees to claim false refunds.

9. The Overstated Withholding Scam: Scammers encourage filing tax returns with false income and withholding information to obtain large refunds.

10. Misleading Offers in Compromise: Scammers aggressively promote Offers in Compromise to those who don't qualify, costing taxpayers thousands.

11. Ghost Tax Return Preparers: Unscrupulous preparers charge fees based on refunds and refuse to sign returns, leaving taxpayers vulnerable.

12. New Client Scams and Spear Phishing: Scammers target tax professionals with tailored phishing attempts to steal client data and identities.

You can find the full news release here.  When in doubt, give us a call for a second opinion to avoid falling into a costly trap.  We are here to help protect you and your assets.