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We are monitoring a major development in federal tax policy: H.R. 1—nicknamed the “One Big Beautiful Bill Act”—has cleared both chambers of Congress and is headed to the White House for signature.

What It Does

• Locks in current exemption levels: The Act makes permanent the exemption from estate, gift, and generation-skipping transfer (GST) taxes that would otherwise revert in 2026 from the current ~$14 million back to ~$6.3 million
  
• Boosts exemption to $15 million: Beginning January 1, 2026, the federal exemptions permanently rise to $15 million per person ($30M per married couple), with automatic annual inflation adjustments. There is no sunset on this provision.
  

What It Does Not Change

• It does not repeal the gift or estate tax entirely—it simply raises the exemption levels permanently.
  
• It keeps all other existing rules for gift, estate, and GST taxation in place.
  

Why This Might Matter To You

• Estate planning certainty: The guaranteed high exemption extends strategic flexibility for high-net-worth individuals and families.
  
• Tax‑efficient wealth transfers remain viable: Time-tested planning mechanisms—including GRATs, GST allocation, qualified personal residence trusts, and other tools—remain available and beneficial under the new law.
  
• Proactive planning still pays: With $15 million per person now locked in post-2026, clients should consider reviewing and adjusting their estate plans—whether accelerating gifts, optimizing trust structures, or locking in low valuation opportunities—before the new exemption level takes effect.
  

What You Should Do Now

1. Review existing estate plans to reflect the increased exemption level starting in 2026.
   
2. Consider front‑loading gifts or trust funding to take advantage of the current high threshold and gain valuation benefits.
   
3. Stay in touch with your Lindberg & Ripple advisor—we are tracking additional potential changes, such as alterations to gift tax rates or trust-based planning, and will update you as new developments emerge.
   

Bottom line: If signed into law, this bill guarantees the continued availability of a $15 million exemption per individual—indexed for inflation—indefinitely. That is a powerful tool for long‑term wealth preservation and legacy planning. Please contact your Lindberg & Ripple advisor to explore how to integrate this into your estate plan.

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In a market defined by volatility, uncertainty, and ever-changing headlines, it is easy for investors to get caught up chasing the latest trends or focusing solely on domestic markets. However, time-tested strategies often prove to be the most resilient—and few strategies have stood the test of time like the classic 60/40 portfolio.

A 60/40 portfolio typically allocates 60% of investments to global equities (including U.S. markets) and 40% to bonds. This approach aims to capture growth opportunities while providing a steady income stream and downside protection. It is a blend that minimizes risk without sacrificing the potential for meaningful returns—something that is especially valuable in today’s turbulent environment.

Why 60/40 Works

When you examine historical data from 1950 to 2024, the benefits of a 60/40 portfolio become clear​mi-guide-to-the-markets…:

• Stocks alone delivered an impressive annual average return of 11.6%, but with significant swings—sometimes gaining over 50% in a year, but also falling by nearly 40% during market downturns.
  
• Bonds alone offered a more stable but much lower average return of 5.2%.
  
• The 60/40 portfolio, by contrast, generated a solid 9.4% annual average return, with far less volatility than stocks alone. Over 20 years, $100,000 invested in a 60/40 portfolio would have grown to more than $600,000—far outperforming bonds, and doing so with significantly less risk than an all-stock portfolio.
  

In short, the 60/40 portfolio offers the best of both worlds: a safer path than pure equities with more upside than pure bonds.

Global Exposure: A Key to Resiliency

It is important to note that the “60” in a 60/40 strategy is not limited to U.S. stocks. A true growth-oriented portfolio draws from global equity markets. Some investors shy away from international markets, believing they are not growing as fast as the U.S. However, diversification across regions can strengthen a portfolio, smoothing out regional downturns and tapping into opportunities that might not be available domestically.

Global markets evolve at different paces and are influenced by different factors. Exposure to a wider set of economies and industries reduces overall risk and increases the consistency of returns over time.

Why This Strategy Matters Today

The market today faces persistent inflation pressures, rapidly shifting monetary policies, geopolitical tensions, and uneven global economic growth. It is precisely in this type of uncertain environment that a balanced portfolio shines:

• Stocks provide the potential for capital appreciation during periods of growth.
  
• Bonds act as a cushion, helping to protect your portfolio when equity markets falter.
  

Because the 60/40 mix is inherently diversified, it rarely results in outright losses over longer periods and provides a smoother investment experience compared to the often-whiplash-inducing ride of an all-stock portfolio.

Consistency is Key

Investing is a long-term endeavor. A thoughtfully constructed 60/40 portfolio is a reminder that consistency, balance, and diversification—not reactionary moves—are what drive lasting success. While no strategy guarantees returns, history shows that maintaining a steady, diversified approach can help investors achieve their financial goals with less stress and more predictability.

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In today’s volatile market environment, diversification remains a cornerstone of prudent investing. Recent market data underscores the importance of spreading investments across various sectors to mitigate risk and enhance potential returns.​

The Tech Sector’s Outsized Influence

A glance at the S&P 500 heat map reveals that while many sectors are experiencing modest gains or slight declines, the technology sector stands out with significant losses. Companies like Alphabet and Nvidia have seen notable declines, which, due to their substantial weight in the index, have dragged down the overall performance of the S&P 500. This concentration risk highlights the dangers of overexposure to a single sector.​

The Case for Diversification

Investors heavily concentrated in tech stocks have likely felt the brunt of recent downturns. In contrast, those with diversified portfolios, including holdings in sectors like healthcare, consumer staples, and utilities, may have experienced more stability. Diversification helps cushion the impact of sector-specific downturns and provides exposure to areas that may outperform during different economic cycles.​

Market Corrections Are Inevitable

Historically, the market experiences corrections of 20-30% every few years. Events such as the 2020 COVID-19 pandemic and the 2022 interest rate hikes serve as reminders that downturns are a natural part of market cycles. These corrections, often triggered by unforeseen events, reinforce the need for a well-diversified investment strategy to navigate the uncertainties of the market.​

Trust in Experienced Advisors

Navigating market volatility requires experience and a steady hand. Seasoned financial advisors understand the importance of diversification and can guide investors through turbulent times, helping them stay focused on long-term goals rather than short-term market fluctuations.​

In conclusion, while no investment strategy can eliminate risk entirely, diversification remains a proven method to manage it effectively. By spreading investments across various sectors and asset classes, investors can better position themselves to weather market storms and capitalize on opportunities as they arise.

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