We Are Moving!

Contributed by: Jaclyn Jackson, CAP®

We are excited to share some wonderful news: later this year, The Center's Southfield office will be relocating to a new home in Farmington Hills.

Since moving into our Southfield office in 2015, we have been fortunate to grow alongside the clients and families we serve. During that time, our team has expanded, we now serve more than 1,100 individuals and families, and the assets we manage on behalf of our clients have grown to more than $2 billion.

While we have many fond memories of our Southfield office and the relationships, conversations, and milestones shared there, we have reached a point where we have outgrown the space. After a thoughtful search, we found a new location that will better support our team, enhance our client experience, and provide room for future growth.

Our new office will offer additional space, updated amenities, and a welcoming environment designed to serve our clients and team members for many years to come.

Our new address will be:

27725 Stansbury Boulevard

Suite 300

Farmington Hills, MI 48334

While our address will change, the people, relationships, and personalized advice you rely on will remain exactly the same. Your advisor, service team, accounts, and ongoing planning experience will not be affected by the move.

For clients who work with us in Brighton, our Brighton office will remain open and unchanged.

No action is required on your part at this time. As our move approaches, we will continue to share updates, including our official move date, appointment details, parking information, and arrival instructions.

We are incredibly grateful for your trust and confidence over the years. Thank you for being part of our journey. We look forward to welcoming you to our new Farmington Hills home and continuing to serve you and your family for many years to come.

Jaclyn Jackson, CAP® is the Director of Marketing at Center for Financial Planning, Inc.®. She leads the strategy and execution of the firm’s marketing initiatives, including communications, digital marketing, events, and brand development.

Retiring with Company Stock? Don't Overlook This Potential Tax Opportunity

Contributed by: Logan Dimitrie, CFP®

Many employees spend decades building their retirement savings through company-sponsored plans and employee stock ownership programs (ESOP). As retirement approaches, one of the most important questions you should be asking: How can I withdraw these assets in the most tax-efficient way possible?

One strategy that often goes overlooked is called Net Unrealized Appreciation (NUA). While it isn't right for everyone, it may provide tax advantages when used in the right situation. Combined with thoughtful Social Security timing, it may help improve retirement outcomes and mitigate future tax burdens.

What Is NUA?

NUA refers to the increase in value of employer stock held inside a qualified retirement plan such as an ESOP, 401(k), or profit-sharing plan.

Normally, when pre-tax retirement assets are withdrawn, the entire distribution is taxed as ordinary income. However, employer stock may qualify for special tax treatment under NUA rules.

Instead of transferring the company stock into an IRA, the stock is distributed to a taxable brokerage account. The original cost basis of the shares is taxed as ordinary income at the time of distribution, but the appreciation above that cost basis receives long-term capital gains treatment when the stock is eventually sold.

Since long-term capital gains rates are often lower than ordinary income tax rates, the result can be substantial tax savings.

Example

Assume an employee has company stock in an ESOP valued at $500,000.

The original cost basis of the shares is $100,000.

• Cost basis: $100,000

• Appreciation (NUA): $400,000

• Total value: $500,000

If the entire account were transferred to an IRA and later withdrawn, the full $500,000 could eventually be taxed as ordinary income.

Using an NUA strategy, only the $100,000 cost basis is taxed as ordinary income when distributed. The remaining $400,000 may qualify for long-term capital gains treatment when sold in the future.

Depending on the client's tax bracket, the savings can be meaningful.

This is a hypothetical example and is not intended to reflect actual performance.  Future performance cannot be guaranteed and investment yields will fluctuate with market conditions.  Investments involve risk and you may incur a profit or loss.

Why Social Security Timing Can Matter

One challenge with NUA planning is that the cost basis becomes taxable income in the year of the distribution.

This is where Social Security planning may become part of the discussion.

For those who can afford to delay claiming benefits, postponing Social Security can help keep taxable income lower during the NUA year. This may create an opportunity to recognize the cost basis at a more favorable tax rate.

Delaying Social Security typically increases future benefit payments. For many folks, benefits grow approximately 8% per year beyond full retirement age until age 70.

This could be incredibly beneficial due to:

1. Lower taxable income during the NUA transaction year

2. Potentially higher future Social Security benefits

3. Favorable capital gains treatment on appreciated company stock

Another Potential Benefit: Lower Future RMDs

Folks with significant balances in their pre-tax 401(k) or Traditional IRA are concerned about Required Minimum Distributions (RMDs).

When employer stock is removed from a retirement account through an NUA transaction, those assets are no longer held inside the tax-deferred account. As a result, the amount subject to future RMD calculations may be reduced.

A smaller IRA balance can potentially lead to:

• Lower future RMDs

• Greater control over taxable income in retirement

• Reduced exposure to Medicare IRMAA surcharges

• More flexibility with Roth conversion strategies

• Potential tax savings for heirs

For folks with large balances in pre-tax accounts, this can be an important benefit.

When is NUA treatment worth it?

NUA is worth considering when:

• You have highly appreciated company stock inside an ESOP or 401(k).

• The stock's cost basis is significantly lower than its current market value.

• You expect to be in a moderate or higher tax bracket during retirement.

• You have flexibility in when to claim Social Security.

• You want to reduce future RMD exposure.

It doesn’t always make sense.

Like most planning strategies, NUA isn't always the right answer.

It may not be beneficial when:

• The stock has little appreciation.

• The cost basis is already relatively high.

• You expect to be in a significantly lower tax bracket later.

• Concentration risk in company stock is a concern.

• Cash flow needs require immediate liquidation.

This is why careful tax analysis is critical before making any decisions.

Retirement Planning Is More Than Investments

One of the most common mistakes we see is focusing exclusively on investment performance while overlooking tax strategy.

The most effective retirement plans coordinate multiple moving pieces, including:

• Social Security timing

• Retirement account distributions

• Tax planning

• Employer stock decisions

• Roth conversion opportunities

• Estate planning considerations

Often, the difference between a good retirement outcome and a great one comes from how these pieces work together.

Final Thoughts

If you're preparing to retire and have company stock in an ESOP or employer retirement plan, NUA may be something to consider. When combined with thoughtful Social Security planning and long-term tax management, it has the potential to improve after-tax retirement income and reduce future tax liability.

The key is recognizing that every situation is unique. Before making elections involving company stock, retirement plans, or Social Security, work with a qualified financial and tax professional who can evaluate the strategy in the context of your overall retirement plan.

Author's Note

At the Center for Financial Planning, we frequently analyze retirement income strategies that go beyond traditional investment management. For employees retiring with ESOP or company stock benefits, evaluating NUA treatment alongside Social Security timing, tax projections, and future RMD planning can uncover opportunities that might otherwise be missed. Even if NUA ultimately isn't the right fit, it should be part of the conversation.

Logan Dimitrie is a Client Service Associate at Center for Financial Planning, Inc.®. He combines his passion for supporting seniors, advisors, and team members with past retirement account experience to provide exceptional service.

Any opinions are those of Logan Dimitrie and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Be sure to consider all of your available options and the applicable fees and features of each option before moving your retirement assets.

Diversification: Timeless and Yet Misunderstood

Contributed by: Timothy Wyman, CFP®, JD

As I was thinking about this topic, I revisited some excellent Morningstar research on portfolio diversification and investor behavior, which helped inspire a few of the ideas discussed below.

Have you ever noticed that the investments getting the most attention are almost always the ones investors wish they owned more of?

One year it's technology stocks. Another year it's artificial intelligence. Sometimes it's real estate, gold, international markets, or whatever happens to be leading the headlines. The temptation is understandable. When one area of the market is soaring, it can feel like the obvious place to invest.

The problem is that today's winners are rarely obvious in advance.

That's one of the reasons diversification remains one of the most important, and often most misunderstood, principles in investing. It won't always produce the highest return in any given year. In fact, there will be times when diversification feels frustrating because part of your portfolio is inevitably lagging behind. But over the long run, a thoughtfully diversified portfolio can help investors stay disciplined, manage risk, and improve the odds of achieving the goals that matter most.

One of the interesting things about investing is that some of the best decisions rarely feel like the most exciting ones.

Diversification is a perfect example.

Most people have heard the phrase, "Don't put all your eggs in one basket." While that's a good starting point, true diversification is about much more than simply owning a bunch of different investments.

In fact, it's possible to own several mutual funds or ETFs and still not be very diversified if they all behave similarly or own many of the same companies. Diversification isn't about the number of investments you own. It's about owning investments that respond differently to changing economic and market conditions.          

Said another way, effective diversification is really about correlation. Assets don't need to rise and fall in opposite directions all the time, but they shouldn't all react exactly the same way to every market event. The greatest diversification benefits often come from owning investments with lower or even negative correlations, meaning some parts of the portfolio may hold their value or even appreciate when other areas are under pressure. Over time, that interaction can help smooth returns and reduce the impact of major market declines.

The challenge is that diversification can feel frustrating at times.

A properly diversified portfolio will almost always have something in it that isn't performing particularly well. When large technology stocks are surging, bonds may seem unnecessary. When U.S. stocks are leading the way, international investments may appear to be lagging behind. It's natural to wonder why we own certain positions when something else is grabbing all the headlines.

Ironically, that's often a sign that diversification is doing exactly what it's supposed to do.

One of the conversations we frequently have with clients is the difference between chasing the highest possible return and building a portfolio designed to help achieve their most important goals. Most families aren't investing to win a performance contest. They're investing to retire comfortably, support children and grandchildren, fund charitable causes, preserve their purchasing power, and create long-term financial security.

In nearly 30 years of working with families, I've rarely seen a financial plan fail because a client didn't own enough of the year's best-performing investment. More often, problems occur when investors take concentrated risks that don't work out as expected.

A portfolio that experiences fewer extreme outcomes may be more likely to help achieve those goals than one concentrated in a single asset class, sector, or investment theme. For example, a 50% loss requires a 100% return just to get back to your starting point. A 15% decline, on the other hand, requires only about a 17.6% gain to recover. This is one of the reasons we spend so much time managing downside risk. While investors naturally focus on returns, avoiding large losses can have an even greater impact on long-term wealth accumulation. Our objective isn't to eliminate volatility, which is impossible, but rather to help clients avoid the type of losses that can permanently derail a financial plan.

Recent years have provided plenty of reminders of why diversification matters. Different asset classes have taken turns leading the market. There have been periods when U.S. stocks dominated, periods when international markets outperformed, and periods when bonds, real estate, commodities, or gold provided meaningful benefits. The problem is that very few people consistently predict which asset class will be next in line.

Diversification acknowledges that reality. Instead of trying to guess the next winner, it recognizes that nobody knows with certainty what the next few years will bring.

Of course, diversification doesn't eliminate risk, and it certainly doesn't guarantee positive returns. Markets will always experience periods of volatility. However, diversification remains one of the most effective tools investors have for balancing growth opportunities with prudent risk management.

In the end, successful investing is rarely about finding the one investment that outperforms everything else. More often, it's about building a collection of investments that can work together through a variety of market environments.

The best portfolios are not always the ones that generate the highest return in any single year. More often, they're the ones that help investors stay disciplined, remain invested during difficult periods, and ultimately achieve the goals that matter most.

And that's really what diversification is all about.

Timothy Wyman, CFP®, JD, is the Managing Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning Inc.® Tim earned a place on Forbes’ Best-In-State Wealth Advisors List in Michigan¹ in 2026 for the ninth consecutive year.

Any opinions are those of the author and not necessarily those of Raymond James. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. This material is being provided for information purposes only and is not a complete summary of all available data necessary for making an investment decision and is not a recommendation. Investing involves risk, and investors may incur a profit or a loss regardless of strategy selected. No investment strategy can guarantee your objectives will be met. Past performance may not be indicative of future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

The Hidden Benefits of College Savings Plans – Webinar Recap

Contributed by: Brooke Wilkey

College planning often feels like a moving target. Rising costs, evolving tax rules, and questions about financial aid can make it difficult for families to know where to start. During our recent webinar, College Savings: The Hidden Benefits of College Savings Plans, Planner Bob Ingram CFP® sat down with John Scott of the Michigan Education Savings Program (MESP) to discuss how education savings plans have evolved and why they remain one of the most powerful tools available for families saving for future education expenses.

529 Plan Flexibility

A significant focus of the discussion was the flexibility of modern 529 plans. In addition to traditional qualified expenses such as tuition, books, computers, and room and board, families may now have options to use funds for apprenticeship programs, certain credentialing and certification programs, student loan repayment, and in some cases even Roth IRA rollovers for unused assets. With recent legislative updates to 529 plans, families have more pathways to utilize education savings in ways that support a student's academic and professional long-term goals.

Financial Aid

Financial aid was another topic highlight of the discussion. Many families worry that saving too much might negatively impact aid eligibility. While every situation is unique, 529 plans generally receive favorable treatment compared with other savings vehicles. Parent-owned 529 accounts, for example, typically have a limited impact on aid calculations.

Family Planning

The webinar also explored how education funding has increasingly become a multi-generational planning conversation. Grandparents, great-grandparents, and other family members often want to help support younger generations but may not know the most efficient way to do so. MESPs and other 529 plans can provide tax-advantaged gifting opportunities while allowing account owners to maintain control of the assets. For many families, this creates opportunities to support educational goals while also integrating broader estate and legacy planning objectives.

Start Early

A recurring theme throughout the presentation was the importance of planning early. While it may be tempting to delay saving when children are young, time can be one of the most powerful advantages available. Starting earlier allows contributions the opportunity to benefit from years of tax-advantaged growth and can reduce the pressure of trying to accumulate significant savings later.

 Learn More

If you missed the webinar, we invite you to watch the replay.

If you are interested in continuing the conversion around being intentional with education planning, stay tuned for our second webinar in this education planning series, College Planning Made Easy, on August 27th, 2026.

Brooke Wiley is an intern at Center for Financial Planning, Inc.® She is a student at Michigan State University majoring in finance and minoring in financial planning and wealth management.

529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state.

Raymond James Elevate 2026: The Power of Personal

Contributed by: Mallory Hunt

Several members of The Center team recently had the opportunity to attend Raymond James Elevate 2026 in fabulous Las Vegas. The flagship national conference brings together advisors and their teams from across the country each year around a unifying theme. This year’s theme: The Power of Personal. The conference reinforced what has long differentiated Raymond James in an increasingly digital and automated world—the belief that strong, personal relationships remain at the heart of successful financial advice.

Throughout the event, speakers emphasized that while technology, AI, and innovation continue to reshape the financial services landscape, they are most powerful when used to enhance, not replace, the personal connections advisors build with clients. Sessions focused on client‑first strategies, thoughtful growth and how advisors can authentically deliver customized advice rooted in trust, empathy and understanding. “AI will not replace you as an advisor; an advisor who utilizes AI will.”

We were especially proud to see our own Tim Wyman moderate the Town Hall panel alongside Raymond James’ leadership team including CEO Paul Shoukry, Private Client Group President Tash Elwyn, Independent Contractor Division President Kirk Bell and Financial Institutions Division President Steve Kruchten. This highly anticipated session gave advisors the opportunity to ask candid questions, raise challenges and engage in open dialogue with leadership about what matters most across the firm. Tim led the conversation with professionalism and energy—we couldn’t be prouder of the way he represented our team.

Elevate 2026 also highlighted practical ways to leverage firm resources and shared best practices to aid advisors in staying deeply personal in their approach. The message was clear: success isn’t just about scale or efficiency; it’s about knowing each client’s story and helping them navigate life’s most important moments with confidence.

While Elevate is a professional conference, its impact extends directly to the clients we serve: YOU. Attending events like this allows us to explore new planning strategies & tools, stay current on industry trends & best practices, and continuously refine how we deliver advice & service. Most importantly, it strengthens our commitment to thoughtful, personalized financial guidance.

And of course, it wasn’t ALL business while we were in Las Vegas—we mixed in some fun, too! Our group made time for some team-building activities such as music trivia, karaoke and even an F1 Go Kart Racing experience. These shared experiences always help us recharge and strengthen the relationships that make our team so strong.

While this conference always serves as a platform for continuing education, collaboration and innovation, we returned with valuable insight into how the financial landscape is evolving and with fresh ideas on how to deliver guidance and support to our clients. Ultimately, The Power of Personal served as both a reminder and a call to action, encouraging our team to lean into what makes our practice unique while reaffirming our commitment to building relationships, supporting financial independence and helping you Find Your Center.

Mallory Hunt is a Portfolio Administrator at Center for Financial Planning, Inc.® She holds her Series 7, 63 and 65 Securities Licenses along with her Life, Accident & Health and Variable Annuities licenses.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Center for Financial Planning, Inc is not a registered broker/dealer and is independent of Raymond James Financial Services Investment advisory services are offered through Center for Financial Planning, Inc. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. The views expressed herein are those of Mallory Hunt and are not necessarily those of Raymond James.

Q2 2026 Investment Commentary

Contributed by: Center Investment Department

As the summer and midterm election season heats up, markets have cooled but ended the quarter on a very positive note after a bumpy start to the year that was caused by the U.S./Iran conflict. From excitement surrounding the SpaceX IPO to a new Chair of the Federal Reserve being sworn in, there has been no shortage of attention-grabbing headlines! The markets ended positive across the board, while volatility has moderated this quarter with periodic shocks based on geopolitical headlines. The Iran war has lasted longer than anticipated, but the economy here in the U.S. remains on track for solid positive growth when you look at real-time statistics like TSA screenings, credit card spending, restaurant bookings, and retail spending in spite of higher gas prices.

Performance Recap

As of June 30, 2026, we have seen quite a turnaround in performance from the first quarter of this year. Bonds posted a positive return of 0.62% during the first half of the year (Bloomberg Barclays Aggregate Bond Index), the S&P 500 ended up 10.21%, and international stocks were the clear winner again so far this year, with the MSCI ACWI Ex-USA at +13.68%. The question remains: what do we see driving returns for the rest of the year?

Elections & Midterms

Since Memorial Day, the momentum of positive returns in April and May stalled near market highs. This is not uncommon in a midterm election year. In fact, about half of the time, the S&P 500 has lost money during a midterm election summer, averaging a decline of nearly 3%. This is common because of the political rhetoric leading into election season.

Source: Raymond James, Factset Data as of 5/31/2026 (past performance is not indicative of future results)

Midterm election years have historically been among the more volatile periods in the presidential cycle due to uncertainty around policy, taxes, regulation, and congressional control. Once election outcomes become clearer, markets often refocus on economic fundamentals, and the 12 months following midterm elections have frequently produced stronger returns. History doesn't repeat exactly, but it often rhymes. It is important to stay focused on investing fundamentals during this time:

• Stay diversified.

• Rebalance when appropriate.

• Avoid emotional decisions.

• Focus on long-term objectives.

• Keep adequate liquidity for near-term needs.

IPOs & SpaceX

We had one of the most highly anticipated and highly media-covered initial public offerings in history this past quarter as SpaceX raised over $75 billion for its operations and growth ambitions.

At $75B, the total market cap of SpaceX was being valued at ~$1.8T, which would put it in the top 10 holdings of the S&P 500 based on size... BUT it will not be added to the S&P 500 anytime soon. Other indexes made exceptions to their rules-based methodologies so that SPCX would be included in their holdings (and in turn held in ETFs that tracked those indexes), and active managers were welcome to begin trading the stock once it became public, but the S&P 500 stuck to its process, which includes criteria that keep SPCX out of the index for the time being. SPCX isn’t currently profitable (it lost $5B in 2025) and also hasn’t been trading for the one-year minimum that S&P uses in its index yet... we’ll check back next year!

Iran, Oil, and Inflation

The Iran conflict continued to weigh on markets in Q2. It is a continuation of the geopolitical turmoil that has been affecting markets recently (we spoke about this last quarter as well). It has been a dizzying timeline to follow between attacks, potential ceasefires, more attacks, more ceasefires, blockades, memorandums of understanding followed immediately by more attacks to end the quarter... the story changed by the day. This uncertainty, centered heavily on disruptions in the Strait of Hormuz (a critical chokepoint for ~20% of global oil trade), created meaningful volatility.

Oil prices shot up in March, stayed elevated through most of the quarter, and only just recently began to fade as optimism around Hormuz traffic began to pick back up. Volatility, as measured by the VIX Index, spiked back in March but fell quickly as stocks powered through the flurry of headlines.

To us, this has been yet another reminder to focus on the long term and stick to your investing plan. We cannot predict what the market will bring day to day or month to month, but a disciplined investment process kept us invested through the noise and allowed us to rebalance through the volatility to achieve positive investment outcomes.

The Fed & Kevin Warsh

The Fed’s new chair, Kevin Warsh, began his tenure this quarter in a relatively quiet fashion. Just as the market expected leading into the meeting, there were no changes to the federal funds rate or immediate monetary policy. There were some things worth noting from the meeting, such as the fact that Kevin Warsh reiterated that he will not be participating in the “dot plot” projections, and that the rest of the Fed members who did participate mostly shifted their view of inflation and the near-term federal funds rate to remain higher. That feeds into bond market expectations and can have some meaningful impact on our bond allocations. Kevin Warsh also unveiled some new initiatives and task forces that he is implementing at the Fed to restructure its focus and the way it conducts monetary policy going forward.

Values Webinar Recap

In the What Matters Most webinar held in April, Planner & Partner Kali Hassinger, CFP®, CSRIC®, and Portfolio Administrator Mallory Hunt explored the powerful connection between personal values, life goals, and financial decision-making. Rather than focusing solely on investment performance or financial products, the discussion encouraged individuals to begin with what matters most to them—whether that is family, purpose, security, charitable giving, career flexibility, or retirement aspirations—and then build a financial strategy that supports those priorities.

The webinar challenged attendees to think beyond traditional financial goals by identifying the beliefs and values that drive those goals in the first place. Once established, these core values can serve as a financial "North Star," helping individuals stay the course during periods of uncertainty or major life transitions, such as retirement, the loss of a loved one, or a career change. Building a financial plan on a foundation of values provides a consistent framework to return to, allowing decisions to be made with intention rather than emotion during stressful or uncertain times.

At their core, values define the "why," while goals define the "how." From there, financial strategies can be implemented to support both. For example, individuals who prioritize philanthropy may incorporate charitable planning tools such as Donor-Advised Funds (DAFs) or Qualified Charitable Distributions (QCDs) into their overall financial strategy. Values can also influence investment decisions. Environmental, Social, and Governance (ESG) investing, for instance, can be incorporated alongside a core portfolio to help align investment choices with personal beliefs and priorities.

The webinar highlighted how values-based financial planning can create greater clarity, confidence, and intentionality around financial decisions. Practical examples were provided to help individuals identify their core values, align their financial goals with those values, and evaluate financial choices through a more personal and meaningful lens. Ultimately, the overarching message was that a well-designed financial plan is about more than building wealth—it should serve as a tool for aligning financial resources with the life you want to live and the goals that matter most to you.

Thank you for reading this quarter's Investment Commentary. We appreciate the opportunity to share these insights with you. As always, market conditions and personal circumstances can change, but staying focused on your long-term goals remains important. If you have any questions about your investments, financial plan, or any of the topics discussed, our team at The Center is here to help. Please reach out to your advisor to start the conversation. We value your trust and look forward to continuing to serve as a resource for your financial planning needs.

Nicholas Boguth, CFA®, CFP® is a Senior Portfolio Manager and Associate Financial Planner at Center for Financial Planning, Inc.® He performs investment research and assists with the management of client portfolios.

Mallory Hunt is a Portfolio Administrator at Center for Financial Planning, Inc.® She holds her Series 7, 63 and 65 Securities Licenses along with her Life, Accident & Health and Variable Annuities licenses.

Angela Palacios, CFP®, AIF®, is a partner and Director of Investments at Center for Financial Planning, Inc.® She chairs The Center Investment Committee and pens a quarterly Investment Commentary.

Any opinions are those of Angela Palacios, CFP®, AIF®, Nick Boguth, CFA®, CFP®, and Mallory Hunt and not necessarily those of Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.

Investing involves risk and you may incur a profit or loss regardless of strategy selected. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. The MSCI EAFE (Europe, Australasia, and Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States & Canada. The EAFE consists of the country indices of 22 developed nations. The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Investing in oil involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors. Past performance does not guarantee future results. Diversification and asset allocation do not ensure a profit or protect against a loss. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance is not a guarantee or a predictor of future results. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Money Sense for Young Kids

Contributed by: Matt Trujillo, CFP®

As a dad of young boys, I read and think a lot on how to teach my sons about how to handle money.

Even before my boys could count, they already knew something about money: it's what they had to give the ice cream man to get a cone, or put in the slot to ride the rocket ship at the grocery store. So, as soon as your children begin to handle money, start teaching them how to handle it wisely.

Making Allowances

Giving children an allowance is a good way to begin teaching them how to save money and budget for the things they want. How much you give them depends in part on what you expect them to buy with it and how much you want them to save.

Some parents expect children to earn their allowance by doing household chores, while others attach no strings to the purse and expect children to pitch in simply because they live in the household. A compromise might be to give children small allowances coupled with opportunities to earn extra money by doing chores that fall outside their normal household responsibilities.

When it comes to giving children allowances:

• Set parameters. Discuss with your children what they may use the money for and how much should be saved.

• Make allowance day a routine, like payday. Give the same amount on the same day each week.

• Consider "raises" for children who manage money well.

Take it to the Bank

Piggy banks are a great way to start teaching children to save money, but opening a savings account in a "real" bank introduces them to the concepts of earning interest and the power of compounding.

While children might want to spend all their allowance now, encourage them (especially older children) to divide it up, allowing them to spend some immediately, while insisting they save some towards larger ticket items they really want but can't afford right away. Writing down each goal and the amount that must be saved each week toward it will help children learn the difference between short-term and long-term goals. As an incentive, you might want to offer to match whatever children save toward their long-term goals.

Shopping Sense

Television commercials and peer pressure constantly tempt children to spend money. Therefore, children need guidance when it comes to making good buying decisions. Teach children how to compare items by price and quality. When you're at the grocery store, for example, explain why you might buy a generic cereal instead of a name brand.

When it comes to shopping with children who want you to buy them every little thing they see, take a moment to explain your “yes” and “no” decisions. By explaining that you won't buy them something every time you go to a store, you can lead children into thinking carefully about the purchases they do want to make. Then, consider setting aside one day a month when you will take children shopping for them. This encourages them to save for something they really want rather than buying on impulse. For those big-ticket items, suggest that they might put those items on a birthday or holiday list.

Finally, don't be afraid to let children make mistakes. If a toy breaks soon after it's purchased or doesn't turn out to be as much fun as seen on TV, eventually children will learn to make good choices even when you're not there to give them advice. For more tips on how to raise Money Smart Kids, check out our webinar on the topic!

Matthew Trujillo, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® A frequent blog contributor on topics related to financial planning and investment, he has more than a decade of industry experience.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Center for Financial Planning, Inc is not a registered broker/dealer and is independent of Raymond James Financial Services Investment advisory services are offered through Center for Financial Planning, Inc. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.

The views expressed herein are those of Matthew Trujillo and are not necessarily those of Raymond James.

529 Plans: Saving for Your Child’s Education

Contributed by: Nick Defenthaler, CFP®, RICP®

Summer has officially arrived, and with the longer days, warmer weather, and vacation plans, many Michigan families are looking forward to making the most of the season ahead. Whether you're planning trips Up North, spending weekends at the lake, or simply enjoying time with family and friends, summer is a great time to slow down and focus on what matters most.

While school may be out and education isn't top of mind for many families right now, summer can actually be an excellent time to revisit long-term goals—especially when it comes to planning for future college expenses. With fewer school-related commitments and a fresh season ahead, now is a good opportunity to review your education savings strategy and make sure you're on track.

Below is a brief refresher of the 529 plan, a popular type of account you can save into for future college expenses. Here are some caveats: 

Advantages: 

• State tax deduction on contributions up to certain annual limits (varies by state)  

• Tax-deferred growth 

• No taxation upon withdrawal if funds are used for qualified educational expenses (such as tuition, books, room and board, computers, etc.) 

• Parents have control over the account and can transfer the account to another child 

• Not subject to kiddie tax rules, unlike UGMA accounts (Uniform Gift of Minors Act) and UTMA accounts (Uniform Transfer to Minors Act) 

Disadvantages: 

• No guaranteed rate of return – subject to market risk 

• Certain taxes and penalties will apply if funds are withdrawn for non-qualified expenses 

Items to be aware of: 

• Keep records of how money was spent that was withdrawn from the 529 account in case of an audit 

• Review the asset allocation/risk profile of the account on an annual basis – typically, the closer the child is to entering college, the more conservative the account should become  

Just like saving for retirement, the sooner you can start saving for college the better. With that being said, if your children are only a few years out from college and your savings isn’t where you’d like it to be, there is still hope. Chances are you still have options and this is where good financial planning can come into play. There are also nuances with financial aid and completing the FAFSA that you want to be aware of. If we could provide guidance in this area, don’t hesitate to reach out, we would be happy to help! 

For additional insights on education planning, be sure to check out our latest webinar, The Hidden Benefits of College Savings Plans.

Nick Defenthaler, CFP®, RICP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® Nick specializes in tax-efficient retirement income and distribution planning for clients and serves as a trusted source for local and national media publications, including WXYZ, PBS, CNBC, MSN Money, Financial Planning Magazine and OnWallStreet.com.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Nick Defenthaler and are not necessarily those of Raymond James. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state. Asset allocation does not ensure a profit or guarantee against loss.

Tax Planning in Retirement – Social Security, Roth Conversions, Dividends, and Annuities, Oh My!

Contributed by: Logan Dimitrie, CFP®

Why is Tax Planning Important?

Tax planning in retirement is important because you are no longer accumulating … you are now in the distribution phase … or “paying yourself.”

There are tax-efficient ways to do this. There are even some pitfalls to watch out for.

Introduction: A Different Lens on Retirement Income

At our firm, one of our core values is Commitment to Financial Planning. That means going beyond investment returns and focusing on after-tax outcomes.

In retirement, taxes don’t disappear; they become more complex.

The real opportunity lies in coordinating income sources, timing decisions, and understanding how different buckets are taxed.

Today, we’re going to explore:

• Why dividend-heavy strategies can backfire

• The power of capital gains brackets

• Roth conversion opportunities (and pitfalls)

• How Social Security taxation quietly increases your effective tax rate

• Why product decisions, like annuities, can limit flexibility

1. Not All “Income” Is Created Equal

One of the biggest misconceptions we see is the idea that dividends are inherently tax-efficient.

While qualified dividends can receive favorable tax treatment, they still:

• Add to your total taxable income

• Interact with other income sources (Social Security, IRA withdrawals, new OBBBA enhanced senior deduction thresholds)

• Can push you into higher tax brackets or increase Social Security taxation

Meanwhile, other strategies (like capital gain realization) can be more controllable and tax-efficient.

The Key Distinction:

• Ordinary income: IRA withdrawals, annuities, and non-qualified dividends could be taxed up to 37%

• Capital gains / qualified dividends: taxed at 0%, 15%, or 20% depending on income

Bottom line … tax treatment matters.

2. Capital Gains Brackets: A Huge Planning Opportunity

The tax code gives retirees a powerful planning window through preferential capital gains rates.

2026 Federal Capital Gains Thresholds (Taxable Income)

Married Filing Jointly:

• 0% rate: up to $98,900

• 15% rate: $98,900 to $613,700

Single filers:

• 0% rate: up to $49,450

• 15% rate: $49,450 to $545,500

These brackets sit on top of ordinary income.

Important nuance:

Your ordinary income fills the bracket first, and capital gains stack on top.

Planning opportunities:

• Tax-gain harvesting at 0%

• Coordinating withdrawals across pre-tax, after-tax, and Roth accounts

• Avoiding unnecessary dividend income that fills these brackets

3. Why Dividend Investing Can Actually Hurt You

Dividend investing is often marketed as “safe income,” but from a planning perspective, it can reduce flexibility.

The problem:

Dividends are:

• Forced income

• Taxable every year

• Not easily turned off in high-income years

Compare that to:

• Selling appreciated assets (you control timing)

• Using Roth funds (tax-free)

• Managing bracket exposure

Real planning issue:

Dividends can:

• Push you out of the 0% capital gains bracket

• Increase Social Security taxation

• Reduce your ability to execute Roth conversions efficiently

This is where our company value of Education and Personal Growth matters. We want clients to understand that “income” is not always optimal.

4. Roth Conversions: Filling the 12% Bracket Strategically

One of the most valuable retirement strategies is Roth conversion planning.

2026 Ordinary Income Anchors (MFJ):

• 12% bracket top: $100,800 taxable income

This creates a window to:

• Convert IRA assets at relatively low rates

• Reduce future RMDs

• Improve long-term tax diversification

Enhanced Senior Deduction Opportunity

OBBBA adds:

• $6,000 per person age 65+ (up to $12,000 MFJ)

• Begins phase-out at $150,000 MAGI (MFJ)

Planning opportunity:

• Convert income up to that phase-out threshold

• Capture deductions & low brackets simultaneously

5. The Hidden Trap: Effective Tax Rates & Social Security

This is where planning becomes critical.

Social Security taxation creates a “tax torpedo” effect:

• 0% taxable at low income

• Up to 50% taxable

• Up to 85% taxable once thresholds are exceeded

2026 Key Thresholds (MFJ):

• $32,000 … taxation begins

• $32,000–$44,000: up to 50% taxable

• Over $44,000: up to 85% taxable

These thresholds are based on the provisional income calculation for Social Security.

Why this matters:

Every additional $1 of income can:

• Trigger more SS becoming taxable

• Create an effective marginal rate far higher than 12%

Example: A “12% bracket” Roth conversion may actually feel like:

• 18%

• 22%

• Or higher after SS inclusion

It’s not about your marginal bracket. It’s about your effective rate on the next dollar.

This is where our other company value, Teamwork and Collaboration, matters. The analysis must be coordinated across:

• Tax projections

• Retirement income sources

• Timing of Social Security

For many retirees, the most attractive window for Roth conversions is the period after you retire but before you begin Social Security. During those years, income is often temporarily lower and easier to control. Once Social Security begins, the analysis becomes more complex, and it is important to evaluate whether conversions still make sense based on your effective tax rate.

6. Annuities & Their Flexibility Trade-Off

Annuities can serve a purpose, but they come with a planning cost.

The issue:

• Income is typically fully taxable as ordinary income

• Payments are often fixed and inflexible

• Little control over timing

Planning consequences:

• Fills up lower tax brackets

• Reduces room for Roth conversions

• Can increase Social Security taxation

• Amplifies the widow’s penalty

Widow’s penalty risk:

• Surviving spouse moves to single brackets

• Same income, but at higher rates

• Fixed annuity income leaves no adjustment flexibility

Flexibility is a tax asset.

7. Bringing It Back to CENTER

This is where our team’s values come to life:

• Commitment: We go beyond surface-level strategies

• Education: Helping clients understand tax mechanics

• Nice & Kind: Explaining complex topics simply

• Teamwork: Coordinating tax, investment, and retirement plans

• Energy: Proactively identifying opportunities

• Real: Honest conversations about trade-offs

Conclusion: Tax Planning Is the Strategy

Retirement is not just about generating income; it’s about controlling how that income shows up on your tax return.

The difference between a good plan and a great plan often comes down to:

• Timing

• Tax characterization

• Coordination across income sources

Every decision … income, investments, products … should be evaluated through a tax lens.

If you have any questions or would like to discuss how these strategies may affect your financial plan, please use this link to schedule a complimentary introductory call with me.

Logan Dimitrie, CFP® is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® Logan specializes in Financial Independence, Early Retirement, Financial Planning for caregivers and Longevity Planning. Logan has been featured on the Caffeinated Conversations podcast.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Center for Financial Planning, Inc is not a registered broker/dealer and is independent of Raymond James Financial Services Investment advisory services are offered through Center for Financial Planning, Inc. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Logan Dimitrie, CFP® and not necessarily those of Raymond James.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.

Preparing for Longer Lives: Key Takeaways from Our 2026 Longevity Virtual Conference

Contributed by: Sandra Adams, CFP®

Our recent 2026 Longevity Virtual Conference brought together caregivers, families, and professionals around important themes: how to plan—not just financially, but thoughtfully—for longer lives and the realities that come with them, and how caregivers can care for themselves so they can best care for their loved ones. With nearly one in four adults now caring for an aging loved one, the need for these proactive conversations has never been greater.

Dr. Paula Duren from Universal Dementia Caregivers and Julie Edgars from AgeWays provided caregivers with a number of tools and resources to assist them in their caregiving journey. Asking for help and then being able to accept the help was a consistent theme. In addition, caregivers taking time for themselves and caring for themselves physically, emotionally, and psychologically was emphasized.

During the financial planning panel presentation with The Center planners, a consistent theme was preparation. One attendee asked how to stress-test a plan for longevity risk. In practice, this means modeling multiple scenarios—longer lifespans, rising care costs, market volatility—and asking, “What happens if life unfolds differently than expected?” A resilient plan builds in flexibility, income durability, and contingencies for care needs.

Inflation—particularly healthcare inflation—was another top concern. While general inflation ebbs and flows, healthcare costs have historically risen faster. Incorporating higher medical cost assumptions, evaluating insurance options, and maintaining dedicated reserves for care can help protect long-term financial independence.

We also discussed the importance of documenting what matters most to loved ones. When someone can no longer communicate or manage their affairs, clarity becomes a gift. Key items to document include healthcare preferences, financial contacts, legal documents (powers of attorney, directives), living preferences, and personal values around care. The Center’s Letter of Last Instruction and Personal Record-Keeping Document can be a great tool to help.

Finally, many participants asked how to decide between aging in place, downsizing, or transitioning to assisted living. The right choice is deeply personal, but it is also financial. Aging in place may require home modifications and support services; downsizing can unlock equity and reduce expenses; assisted living offers structured care, but typically at a higher cost. Comparing these options side by side—both emotionally and financially—helps align housing decisions with long-term goals.

Longevity planning and caregiving are not just about numbers—it’s about dignity, choice, and peace of mind. If you missed the event or would like to revisit these conversations, we invite you to request access to the replay and continue building a plan that supports both you and those you love.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.