harbor-wealth

Q1 2026 Newsletter

Sun, 25 Jan 2026 00:25:00 GMT

REMINDER :

Our Office Number is (847) 954 - 7028

Our Private Client Email line is Client@harborw.com (more on that below)

Dear Clients,

2025 - what an up and down year! At one point we were down nearly 20% and ended the year +17%. Needless to say, markets don’t ask our permission before they test our patience. And they don’t send invitations before they change the subject.

What they do offer—reliably, over time—is the opportunity to convert discipline into wealth. That remains true today. Still, it’s fair to want context, especially with how much you’re hearing about AI, “bubbles,” recession risks, and an economy that seems to be working well for some people and not for others.

Here’s how we see it.

1) 2025 in Review: A Strong Year—with a Narrow Story

By the numbers, 2025 was a good year for investors. But the experience of the year depended heavily on where you were invested.

A relatively small cluster of companies and sectors drove much of the market’s progress—particularly those connected to AI, data centers, semiconductors, and the infrastructure surrounding them. Meanwhile, many perfectly respectable businesses and entire segments of the market lagged, and plenty of individual stocks finished the year down.

That kind of uneven participation can feel unsettling. It shouldn’t be surprising.

Markets have always moved this way: leadership concentrates, narratives form, and the “average” investor experience differs from the headline number. It’s one of the reasons we build portfolios as portfolios—with diversification, rebalancing discipline, and a plan that isn’t dependent on a single storyline. This won't change.

2) 2026 So Far: The K-Shaped Economy and the AI Investment Cycle

As we move into 2026, two realities are becoming harder to ignore.

First: the K-shaped economy.
Some businesses are doing quite well. Others are feeling the cumulative effects of several years of higher prices and higher borrowing costs. That divergence shows up in spending patterns, company earnings, and sector performance—and it’s one reason the market can look strong on the surface while many people feel the strain underneath.

Second: the AI investment cycle remains the engine.
There is real money being spent—at scale—on chips, data centers, cloud capacity, and the power that makes all of it possible. That’s not a “story stock” phenomenon; it’s capital expenditure by some of the largest companies in the world.

At the same time, what investors are wrestling with now is not whether AI exists, but whether expectations have run ahead of reality .

Two watchpoints matter most:

Power and buildout constraints: even the best data center plans require electricity, permitting, and time.

Returns on scaling: the market is sensitive to the idea that bigger models may eventually yield smaller incremental benefits—meaning the pace of investment could slow.

None of this is a prediction. It’s simply the current landscape: strong momentum, real spending, and a market that is increasingly alert to what could change the slope of the trend.

3) Staying the Course: The Only Strategy That Works (Because It’s the Only One You Can Actually Execute)

This is the part that never changes—and never gets easier.

The investor’s greatest enemy is not inflation, recession, politics, or technology. It is the temptation to do something dramatic in response to uncertainty.

Because the truth about successful investing is almost offensively simple:

Wealth is built by time in the market, not cleverness about the next 90 days.

Great long-term returns require enduring uncomfortable short-term moments.

Headlines create urgency; disciplined plans create results.

Our job at Harbor Wealth is not to predict the next correction or chase the next theme. Our job is to keep your plan aligned with your goals, manage risks you can control, and help you stay invested long enough for markets to do what they have always done: reward patient ownership.

One of the promises we make—and take seriously—is simple: when you need us, you can reach us . Good advice only matters if it’s accessible, timely, and delivered by people who know you and your situation.

That expectation hasn’t changed.

What has changed is the pace of the work. Elliott sometimes has days or weeks that he is in back-to-back meetings—planning, reviewing, and coordinating on behalf of clients. That’s time well spent, but it does mean that a message sent only to Elliott may not be seen immediately if he’s in meetings throughout the day.

Rather than rely on luck or timing, we’ve designed a system that works consistently.

For any client-related request, the most effective way to reach us is by emailing:
client@harborw.com

That inbox goes directly to Elliott, Ben, and Ellen. It’s monitored throughout the day. Requests are reviewed, discussed, and acted on promptly—often the same day, and frequently within the hour. This allows us to coordinate internally and make sure your request gets attention even when Elliott is tied up in meetings.

Our standard is straightforward: your questions and requests deserve timely follow-through, every time.

To further support that standard, we expect to be adding another team member in the coming weeks, focused on behind-the-scenes administrative and coordination work. This is a deliberate step to improve responsiveness, reduce bottlenecks, and ensure nothing slips through the cracks—while preserving the personal relationship you have with us.

Good service doesn’t happen by accident. It’s the result of clear processes, the right people, and an intentional commitment to doing things right.

As always, we’re here—and when something matters, you’re never more than one phone call away.

Communication Update

Taxes are never anyon e’s favorite topic - ok perhaps it is Elliott's favorite topic. Ellen Jokes that if given the opportunity, Elliott would name their son Roth.

But handled calmly and methodically, they’re simply another part of the long-term discipline that supports good financial outcomes.

A few reminders to help things go smoothly:

Over the next several weeks, you’ll begin receiving important tax documents, including 1099s, 1099-Rs, and other reporting forms. These forms are required to be sent out by specific deadlines:

January 31 – 1099-R, 1099-INT, and 1099-DIV must be issued

February 15 – 1099-B must be issued

If at any point you believe you’re missing a form—or you simply want confirmation—please don’t hesitate to reach out. A quick call or email to our office is all it takes, and we’ll get what you need to you as quickly as possible.

As we’ve done in the past, we will also be working to send these tax forms directly to your tax preparer whenever appropriate, to reduce the burden on you.

As Your Return Is Prepared

Once your tax preparer has a draft of your return, we ask that you send us a copy for review. This allows us to make sure everything that should be included is included—and that nothing important is overlooked.

After your return is finalized and filed, please send us a final copy for our records.

You can do this in whatever way is easiest for you:

Upload it securely through our website

Email it to our office

Or, if you prefer paper, let us know—we’ll gladly send you a FedEx envelope with a return label included

Our goal is not to add steps, but to remove friction.

Good financial planning isn’t about reacting at the last minute. It’s about quiet preparation, done consistently, year after year.

If you have questions, need a form, or want help coordinating with your CPA, we’re here. Our role is to make this process easier—so you can focus on the parts of life that matter far more than a filing deadline.

2025 Tax Preparation! Fortune Favors the Prepared

Graham has been eagerly waiting for the start of 2026! We are glad it's here.

Events coming up:

Townhall on Feb 3rd at 5:30 CT
Spring Reviews start in March!

When the People You Care About Ask for Help

From time to time, clients ask us a simple question: What happens if a friend or family member calls you?

The answer is straightforward. We help.

Sometimes that help is as simple as pointing someone in the right direction or making sure they have access to the resources they need. Other times, they may want to explore whether a long-term advisory relationship makes sense. If so, we invite them into the same thoughtful, deliberate process we use with every prospective client—one designed to help them make a clear, informed decision, free from pressure. Just as importantly, this process gives them a framework for evaluating any advisor they might consider. Good decisions deserve good process.

Step 1: A Brief Initial Conversation
We begin with a short phone conversation, typically about fifteen minutes. This is simply a chance for both sides to confirm there’s a fit. Experience matters, and specialization matters. You wouldn’t consult the wrong professional for an important problem, and neither would we. During this call, we also explain how our process works so expectations are clear from the start.

Step 2: The First In-Depth Meeting
If it makes sense to continue, the first meeting is about listening. We focus on understanding what matters most to them—their goals, their concerns, and the realities of their financial life. The documents they share and the questions they answer allow us to do meaningful analysis, not guesswork.

Step 3: Careful Analysis
This is where experience does its quiet work. We apply decades of disciplined thinking to answer the questions that truly matter: Can they retire comfortably? Are they paying more in taxes than necessary? Is their portfolio doing the job it’s meant to do? Are there risks—obvious or hidden—that could threaten their long-term plans?

Step 4: Clear, Plain-English Recommendations
In the next meeting, we walk through what we’ve found. We explain what could be improved, why it matters, and what specific steps could move them closer to their goals. Questions are encouraged. Clarity is the objective.

Step 5: An Educated Decision
There is no urgency and no pressure. The goal is simply to make a clear, informed choice. Whether they move forward on their own, with another advisor, or with our team, the decision is theirs—and it’s exactly how we believe important decisions should be made.

Helping people make sound financial decisions—especially the people you care about—is work we take seriously. It’s not about urgency. It’s about clarity, confidence, and keeping the long view firmly in focus

Q4 2025 Newsletter

Tue, 28 Oct 2025 21:32:47 GMT

Medicare Open Enrollment!

Retirement faces two lifelong financial threats:

The rising cost of living (taxes are included in this category!).
And the rising cost of healthcare.

Medicare is the shield against the second. But only if you actively maintain it.

If you are already on Medicare — or about to enroll — the most important truth you can internalize is that Medicare is not a “set it and forget it” decision. It is a living system that is revised every year, and those revisions can materially change what you pay, which medications are covered affordably, and which physicians will continue to care for you. Standing still in a system that is constantly moving is the most predictable way to lose ground.

Original Medicare paired with a Medigap supplement — most notably Plan G — continues to provide the broadest access to care and the most reliable protection against large and unpredictable medical expenses. Clients fortunate enough to hold this combination and continue to afford the premiums generally should remain right where they are, because it represents what millions of retirees later wish they had kept.

Where the greatest financial surprises (especially this year) likely occur in Part D drug coverage. A plan that seemed irrelevant last year because you rarely filled prescriptions can suddenly become painfully expensive simply because formularies shifted or your preferred pharmacy is no longer “preferred.”

Spending just a short amount of time on Medicare.gov each year to verify drug and pharmacy pricing can provide savings that meaningfully support your long-term financial independence.

For more complex medication needs, HeyMoe.com can assist in locating lower-cost alternatives and manufacturer programs, and SHIP.org offers unbiased guidance from state-appointed counselors. Harbor Wealth has no affiliation with these organizations — our only interest is protecting you from preventable expense.

Medicare Advantage plans are heavily advertised as low-cost, all-in-one solutions, yet the low upfront premium can often obscure the potential for higher, harder-to-control costs later. Provider networks can contract without warning, prior authorizations can become barriers to care, and those who later try to return to Original Medicare may be required to medically qualify for a new Medigap policy. Too many retirees learn that last fact only after it is too late and all of us at Harbor Wealth want you to avoid that.

Premiums rise, copays move, drug coverage reshuffles, and the rules evolve — all annually. None of it arrives with fanfare or a helpful nudge from Washington. Like your Social Security timing decision, these changes are yours alone to stay ahead of.

Open Enrollment ends December 7. After that, decisions effectively lock in for another year, for better or worse.

PLEASE KNOW! Clients of Harbor Wealth do not need to navigate this alone. We maintain relationships with independent Medicare brokers whose sole purpose is to help you evaluate your current coverage and ensure that it remains aligned with your health needs and retirement plan. Their guidance comes at no cost, and their advocacy can help you avoid the silent erosion of both financial peace and access to care .But this help is only useful if it is called upon in time. Please please please, do not wait until the final days before December 7 to act.

If you or someone you love would benefit from a Medicare review before December 7, reach out to us. You have built a lifetime of financial security — and we intend to help you keep it.

On July 4th Congress passed the “One Big Beautiful Bill Act” (OBBA). While reasonable people can debate the ‘beauty’ of this bill, at hundreds of pages long, it certainly is big. While most of the Bill is legal jargon and special interest carve outs, there are 12 potential tax savings opportunities that stand out for our clients and/or their families. Please note that each opportunity requires careful planning as the proverbial ‘devil’ is in the details:

“Trump Accounts” for Minors - Yes they are really called ‘Trump Accounts’ (similar to Roth IRA) and will be available to anyone under the age of 18. Children born between Jan 1, 2025 and December 31, 2028 will receive a $1,000 addition from the US Treasury Department.
529 College Accounts Expanded - Once limited to college tuition, 529 accounts have again been expanded to include virtually all education expenses.
Standard Deduction Locked In - Set at $15,750 (Single) or $31,500 (Married), there is also a ‘bonus’ deduction of $6,000 per person ages 65+
S.A.L.T. Tax Limit Increased - For at least the next four years, State And Local Taxes can be itemized up to $20,000 (Single) or $40,000 (Married)
Charitable Donations - If you are unable to itemize your deductions (most can’t), you can still deduct $1,000 (Single) or $2,000 (Married) ‘above the line’.
Tax Brackets Locked In - The current tax rates that were set to go up in 2026 have been locked at their current lower levels.
Child Tax Credit Increased to $2,200
Car Loan Interest is now deductible - Subject to several rules, including ‘100% American assembled’, up to $10,000 of interest can be deducted.
Gambling Losses Limited to 90% - This is less of an opportunity and more of a warning that you can now lose all your money at the casino and still owe taxes.
Estate (and gift) Tax Limited Locked at $15,000,000 each - For 99.9% of people, this simply means you can gift as much as you want to family.
First $25,000 of tips are deductible - Tons of rules on this one, but some tips are now tax deductible.
Some Overtime is deductible - In certain circumstances, $12,500 (Single) or $25,000 (Married) of overtime can be deducted.

** Please Note: Despite what you may have heard, Social Security IS still taxable.**

12 Potential Tax-Savings Opportunities in O.B.B.A

Hard to believe it’s been more than 40 years since the release of Star Wars. During those decades much has changed, and much is still the same. While things like advances in technology have transformed our lives beyond anyone’s imagination, it has also transformed the ways bad guys can commit crimes.

For example, 40 years ago you may have received a physical letter (or 20-years ago an email) that was poorly written, promising you fame and fortune if you just mailed (or transferred) money to your ‘long lost cousin who is a middle eastern prince willing to send you all his wealth if you just pay the transfer fee…’

With the help of technology (including AI), thieves now know where you live, where you shop, the names of your family members, your last vacation, your date of birth and every other piece of information necessary to convince you to trust them just a little, which is all they need to steal everything.

During our recent client education event, Elliott , Sheridan Culhane from MFS and Ryan Hickel CPA shared how you can protect yourself and F.I.G.H.T. B.A.C.K. against fraud and elder abuse. If you would like the link to the recording of this event, please contact our office and we will email it to you.

Your best defense, however, is to remember the words of Admiral Ackbar in Star Wars: “IT’S A TRAP!” and whenever you see even a hint of fraud, call our office (847-954-7028) ASAP and our team will always be glad to help determine if it is legitimate

“It’s a Trap!”

-ADMIRAL ACKBAR (STAR WARS: RETURN OF THE JEDI, 1983 DOW ~ 1,100)

Big milestone for the Vaughn family: Graham, now age two, has officially started preschool. He’s growing fast, singing his ABCs, and showing off his Baby Shark performances at every opportunity — much to Elliott and Ellen’s delight, and to the amusement of their eight-year-old dog Louis.

Ben is loving life in downtown Chicago’s Old Town neighborhood and can often be found cheering on the Blackhawks, Bulls, and Bears.

Mark your Calendars!

We'll be having our Q4 Townhall on November 11th, 2025 at 5 PM CT - link is HERE
We'll have our Q1 2026 Townhall on Feb 11th at 5 PM CT

Q3 2025 Newsletter

evaughn@harborw.com (Elliott Vaughn) — Wed, 16 Jul 2025 22:00:38 GMT

The Big Beautiful Bill ACT – A Tax Perspective

President Trump has signed into law what’s being called the “ Big Beautiful Bill ”—a sweeping piece of tax legislation that touches everything from income brackets and deductions to estate taxes and energy credits.

Whenever Washington rewrites the tax code, the media machine kicks into high gear. Cable news fills with shouting heads. The internet lights up. People begin to wonder: Does this change everything for me?

The short answer is: probably not. But that doesn’t mean we shouldn’t pay attention.

We’re not here to weigh in on whether this is a good bill or a bad one. We’ll leave that to the talking heads. Our job is to help you understand how the key parts of this could affect your personal financial plan—whether you’re still earning, already retired, or planning to leave a legacy.

Take a look at our cheat sheet HERE for a breakdown of the key provisions (Big thanks to Toren Tuttle, MBA, CPA, and the team at Retirement Tax Services for their insight as I put this together)

But here’s what’s in the bill, in plain English.

The Headlines

This bill locks in many of the 2017 tax cuts:

Income tax brackets remain lower
The standard deduction is expanded
Business owners retain access to the Qualified Business Income deduction
The estate tax exemption rises to $15 million in 2026
The SALT deduction cap temporarily increases, though it’s scheduled to shrink again in 2030

In addition, the bill introduces several new deductions—for seniors, parents, tipped workers, and even car loan interest. Charitable giving rules have also changed: starting in 2026, you can deduct up to $1,000 ($2,000 if married), even if you don’t itemize.

Some provisions are going away. Electric vehicle and energy-efficiency tax credits will phase out. The 1099-K reporting threshold for apps like Venmo and PayPal will return to $20,000 and 200 transactions. Gambling loss deductions are being limited.

We’ve summarized all of these changes in the cheat sheet. Again, it’s worth keeping handy.

The Perspective

Here’s what really matters: tax law changes. Planning endures.

When tax policy shifts—as it always does—our job is not to react or guess. Our job is to help you make smart, timely decisions within the framework of a long-term plan.

We’ve seen this before. In 2001, 2003, 2010, 2017—and now, 2025. The tax code gets rewritten. Markets continue doing what they’ve always done. The political winds change. But your financial plan is built to withstand all of it—if it’s grounded in discipline and purpose.

We’ll walk through all of this in more detail at our August Client Townhall. But know this: There is no rush. The ink is barely dry. And as always, we’ll sort through it together.

Bottom Line

Most of these changes either lock in current tax cuts or introduce new, targeted deductions—especially for seniors and middle-income earners.

But many of the new benefits are temporary. So whether you’re still working or already retired, smart tax planning will matter more than ever.

What You Should Do Now?

Nothing—just yet. But, we’ll help you:

Take advantage of temporary deductions before they disappear
Maximize charitable giving in tax-smart ways
Revisit Roth conversion strategies
Coordinate with your CPA to fine-tune your tax plan
Update your estate plan while exemptions remain high

No panic. No politics. Just planning.

We'll be discussing the new Tax Law in our next Townhall on August 5th at 5:30 CT
We’ll be ready—and so will you.

One of the most important truths about life—especially as we grow older—is that the future is always uncertain. But uncertainty is not a reason to panic. It’s a reason to plan.

Aging isn’t a crisis. It’s not a surprise. It’s not something that happens to other people. It’s simply the next chapter for all of us.

And the only rational response is to face it—with eyes wide open, and with a plan.

That’s why we recently hosted a conversation with gerontologist Colleen Ceh Becvar, someone who has spent her career studying and serving individuals and families navigating the realities of aging.

This isn’t about theory. It’s not about fear. It’s about understanding the real-life decisions that shape how well we live in the years ahead:

How do we maintain our independence as we age?
How do we prepare—financially and emotionally—for healthcare and long-term care?
How do we protect our families from having to guess what we would’ve wanted?

If these are questions you’ve considered, or questions you haven’t yet faced, this conversation is for you.

The recorded webinar is now available, and I strongly encourage you to take the time to watch it.

In our Q2 newsletter , we reminded you that volatility isn’t a sign something’s wrong—it’s the toll we pay to access long-term returns.

We talked about the April market swings, the sudden drops, the fast recoveries, the noise, the emotion... and we said, “Stay the course.”

You did. And this moment is your reward as the market has gone on to set new highs.

Because make no mistake: this is what winning looks like. It’s not flashy. It’s not dramatic. There’s no closing bell that rings when your discipline pays off. But that’s what this is.

It’s the reward for refusing to panic.
Progress belongs to the patient.

We’re not celebrating a finish line.
We’re reaffirming the power of sticking to the path.

Well done. Truly - Now let’s keep going.

Insurance Costs are on the Rise!

State Farm just slammed Illinois homeowners with a 27% rate hike. The Daily Herald had a great piece(link HERE ), but this isn't just Illinois - it's everywhere.

We're reminding you about our insurance review service because we don't want to see our clients spend money unnecessarily. As a reminder : we don't sell homeowners, auto, renters, or umbrella policies. Zero commission, zero agenda.

But here's the reality - you absolutely need proper coverage . The question is whether you're going to overpay for it. These companies are hoping you'll just accept whatever rate they throw at you because shopping around feels like work.

Don't prove them right.

You need adequate coverage - that's non-negotiable. But if we can help you pay less for the same protection while maintaining your wealth-building plan, why wouldn't we? The insurance review exists because watching our clients pay more than necessary for coverage they could get cheaper elsewhere is unacceptable.

Thank you for your referrals!

Each year roughly one-third of our new clients come as a referral from our existing clients. Due to our specialty of working almost exclusively with retirees (or those close to retirement) our services are not a good fit for everyone.

That said, we are always glad to talk with any of your friends or family who have any kind of financial question. Even if we are not a good long-term fit, we will always give them our best advice and do whatever we can to get them introduced to the right specialist. In addition to having time to answer any questions from your family and friends.

On our website, www.theharborwealth.com you can find our ‘How We Work with You’ process that helps potential clients make an educated and informed decision about our firm. This process includes the requirement that before they pay us a dollar in fees or trust us with a penny of their nest egg, they sleep on the decision.

Our sincere thanks for your ongoing support of our firm

We hope everyone is having a great summer thus far!

Graham loves summer - or more specifically Ice Cream Cones (He calls them "I nee coe")

Mark the Calendar!

Shred Event and Food truck on August 12!
We will be having a cybercrime prevention webinar in September
We will be hosting a photographer at the office in Q4 for family portraits - stay tuned!

Q2 2025 Newsletter

evaughn@harborw.com (Elliott Vaughn) — Wed, 09 Apr 2025 20:40:19 GMT

Every so often, something surfaces that rattles investors’ and our financial news media confidence. A crisis, a conflict, a change in policy. It almost always arrives wrapped in the same seductive phrase: “This time it’s different.”

We heard it in 2016 with Brexit.

In 2018, it was trade war rhetoric—culminating in a Christmas Eve when the market was down 25%.

In early 2020, we endured the swiftest 30% market decline in history—followed almost immediately by the fastest recovery ever recorded.

Then came 2022, with the highest inflation in 40 years and the most aggressive interest rate hikes since the 1980s.

And now, in 2025, tariffs have once again taken center stage—evoking comparisons to the protectionist policies of the 1930s, and even further back to President McKinley’s platform of the 1890s.

So here we are again. Different headlines. Same Reaction

Let’s remind ourselves: Wall Street—and the companies it represents—do not care who the president is. Markets have advanced under Democrats and Republicans, through wars, scandals, crises, and recoveries. What matters most is not who sits in the White House, but whether you remain seated in your financial plan.

If we’ve learned anything from the past century of market history, it’s this: circumstances change, but average investor behavior stays the same. Panic. Recovery. Growth. Repeat.

Now—and this is essential—the enduring 10%+ average annual return of the equity market and its frequent, temporary declines are not two unrelated phenomena. They are part of one indivisible whole. The volatility is not just normal; it is necessary. It is the emotional toll we pay for participating in the long-term wealth-creating miracle of capitalism.

Please understand: I do not believe you are the average investor. What I am saying is this: volatility is part of the journey. We planned for it, it's been part of every client review I have conducted. We expect it.

A Case in Point: April 7th

On April 7th, the market opened down 2%. Then, on the strength of a rumor—a potential 90-day delay in newly announced tariffs—the market surged 8%. Moments later, when the rumor was denied, the gains disappeared just as quickly. Nearly $2.4 trillion in market value evaporated in the space of a few hours, all driven by speculation.

I mentioned in our April 3rd email to clients " Market recoveries often happen swiftly, and missing just a handful of the best days can significantly reduce long-term returns " And then, as if to underline the point: on April 9th, the 90 day delay was officially confirmed. The market responded with another sudden move—this time up 9%—even as long-term questions about trade policy remained unresolved.

This is not investing. This is emotional voting, fueled by headlines and hearsay. This is what markets do in the short term—they fluctuate, sometimes violently, based on narrative and noise.

But over time, markets stop voting and start weighing. They weigh earnings, innovation, productivity, and progress. And those who remain invested in that process—not just through the quiet stretches, but through the storms—are the ones who capture the long-term rewards.

The market’s premium return has always been the compensation for enduring this volatility. The declines are not just inevitable—they are indispensable. You cannot have one without the other. (Just look at the S&P 500’s intra-year declines compared to its annual returns graph below.)

So no, we will not attempt to time the market. We will not allow momentary fear to dictate lifelong decisions. We will stay the course—because every time we have done so in the past, we’ve been rewarded with what this journey is ultimately about: peace of mind, prosperity, and progress.

“This Time Is Different”… Again

Taxes, Taxes and you guessed it... Taxes!

One of the most significant tax laws in recent history—the Tax Cuts and Jobs Act (TCJA)—is set to expire at the end of 2025. This means that, barring new legislation, many of the tax benefits individuals and families have enjoyed since 2018 will disappear, and higher tax rates will return.

If nothing changes, income tax brackets are set to rise, the standard deduction will shrink, and key deductions will be altered. In short, many Americans will see their tax bills increase. The question isn’t if taxes are going up—it’s by how much.

What This Means for You

For those in higher tax brackets, this could mean thousands of dollars in additional taxes owed each year. Business owners, retirees, and high-income earners may be particularly affected by the reversal of lower rates and deductions. Estate tax exemptions are also scheduled to be cut in half, making proactive planning even more essential.

While tax laws are always subject to change, waiting until the last minute is not a strategy. Now is the time to take a proactive approach and assess how these changes could impact your financial future.

What You Should Do Now

The first step is to understand your current tax situation. Please send us a copy of your most recent tax return so we can evaluate how these changes may affect you and identify strategies to mitigate the impact. You can send it to us via our website https://www.theharborwealth.com/clients -> send us a document, send it via email to Ellen, ellenv@harborw.com , or request a FedEx envelope to send us a physical copy.

Whether it’s accelerating income, making strategic Roth conversions, or revisiting estate planning, there are steps you can take now to prepare for the future.

Mark Your calendar!

Elliott will be having a webinar with Collen Ceh Becvar, Owner of Trinity Advocacy Group and Gernotologist In June. The discussion will focus on how to plan for care as we age, how to find care, what the best kind of planning entails and when to start. Their website is https://trinityadvocacygroup.com
Please submit any questions to hello@harborw.com beforehand!
Shred Event and Food truck on August 12!

Need Something Notarized?

Our Client Relationship Manager, Ellen, Is in the process of becoming notary!
Give us a call and we'll happily notarize what you need!

We hope everyone has a great start to the spring!

Graham is excited for warm weather!.

4.3.25 Market Reaction

evaughn@harborw.com (Elliott Vaughn) — Thu, 03 Apr 2025 22:50:10 GMT

4.3.25 Market Reaction

Reposted from Email that was sent out to clients

Dear Clients and Friends,

As we begin this Thursday, the headlines are painting a picture of doom: “Dow Craters 1,300 Points...” and “U.S. Stocks Plunge Just Minutes into Trading as Tariffs Wreak Global Havoc.”

Let me provide a bit of calm amidst the chaos.

Market Declines Are a Part of Investing

Market corrections, while uncomfortable, are completely normal. The problem is not the downturns themselves—it is how we respond to them. As I write this, the S&P 500 is down -3.85% today and -11.37% from the all-time highs set on February 19th. However, over the last five years, the S&P 500 is still up 118%.

So, the stock market is doing just fine. Please remember to think in terms of years, not short-term periods. This is a marathon, not a sprint.

The Real Risk: Missing the Best Days

One of the greatest dangers to any investor is exiting the market at the first sign of trouble. Market recoveries often happen swiftly, and missing just a handful of the best days can significantly reduce long-term returns, as we discussed in our Q1 Newsletter . The only way to ensure participation in these rebounds is to remain invested, regardless of short-term concerns.

Looking Ahead

We will be discussing this topic further in our upcoming Q2 newsletter, but given today's market opening, we wanted to provide this immediate update to keep you informed. As always, if you have any questions or concerns, we are here to guide you through market volatility and keep you focused on your long-term financial success.

Resources

A recent piece from Seeking Alpha ( here ) highlights the historical recurrence of tariff-driven uncertainty, drawing comparisons between today’s economic policies and those of the late 19th century under President McKinley. While protectionist trade measures can create short-term volatility, history reminds us that markets have weathered such periods before and continued their long-term ascent.

Additionally, this morning’s episode of Bloomberg Surveillance ( here ) was very well done and help put today’s upcoming events into perspective.

Stay the course. Stay invested. And remember, this too shall pass.

Q1 2025 Newsletter

evaughn@harborw.com (Elliott Vaughn) — Fri, 24 Jan 2025 18:42:07 GMT

harbor-wealth

Q1 2026 Newsletter

Dear Clients,

2025 - what an up and down year! At one point we were down nearly 20% and ended the year +17%. Needless to say, markets don’t ask our permission before they test our patience. And they don’t send invitations before they change the subject.

Here’s how we see it.

1) 2025 in Review: A Strong Year—with a Narrow Story

By the numbers, 2025 was a good year for investors. But the experience of the year depended heavily on where you were invested.

That kind of uneven participation can feel unsettling. It shouldn’t be surprising.

2) 2026 So Far: The K-Shaped Economy and the AI Investment Cycle

As we move into 2026, two realities are becoming harder to ignore.

At the same time, what investors are wrestling with now is not whether AI exists, but whether expectations have run ahead of reality .

Two watchpoints matter most:

Power and buildout constraints: even the best data center plans require electricity, permitting, and time.

Returns on scaling: the market is sensitive to the idea that bigger models may eventually yield smaller incremental benefits—meaning the pace of investment could slow.

None of this is a prediction. It’s simply the current landscape: strong momentum, real spending, and a market that is increasingly alert to what could change the slope of the trend.

3) Staying the Course: The Only Strategy That Works (Because It’s the Only One You Can Actually Execute)

This is the part that never changes—and never gets easier.

The investor’s greatest enemy is not inflation, recession, politics, or technology. It is the temptation to do something dramatic in response to uncertainty.

Because the truth about successful investing is almost offensively simple:

Wealth is built by time in the market, not cleverness about the next 90 days.

Great long-term returns require enduring uncomfortable short-term moments.

Headlines create urgency; disciplined plans create results.

Our job at Harbor Wealth is not to predict the next correction or chase the next theme. Our job is to keep your plan aligned with your goals, manage risks you can control, and help you stay invested long enough for markets to do what they have always done: reward patient ownership.

One of the promises we make—and take seriously—is simple: when you need us, you can reach us . Good advice only matters if it’s accessible, timely, and delivered by people who know you and your situation.

That expectation hasn’t changed.

Rather than rely on luck or timing, we’ve designed a system that works consistently.

For any client-related request, the most effective way to reach us is by emailing: ﻿ client@harborw.com

Our standard is straightforward: your questions and requests deserve timely follow-through, every time.

Good service doesn’t happen by accident. It’s the result of clear processes, the right people, and an intentional commitment to doing things right.

As always, we’re here—and when something matters, you’re never more than one phone call away.

Communication Update

Taxes are never anyon e’s favorite topic - ok perhaps it is Elliott's favorite topic. Ellen Jokes that if given the opportunity, Elliott would name their son Roth.

But handled calmly and methodically, they’re simply another part of the long-term discipline that supports good financial outcomes.

A few reminders to help things go smoothly:

Over the next several weeks, you’ll begin receiving important tax documents, including 1099s, 1099-Rs, and other reporting forms. These forms are required to be sent out by specific deadlines:

January 31 – 1099-R, 1099-INT, and 1099-DIV must be issued

February 15 – 1099-B must be issued

If at any point you believe you’re missing a form—or you simply want confirmation—please don’t hesitate to reach out. A quick call or email to our office is all it takes, and we’ll get what you need to you as quickly as possible.

As we’ve done in the past, we will also be working to send these tax forms directly to your tax preparer whenever appropriate, to reduce the burden on you.

As Your Return Is Prepared

Once your tax preparer has a draft of your return, we ask that you send us a copy for review. This allows us to make sure everything that should be included is included—and that nothing important is overlooked.

After your return is finalized and filed, please send us a final copy for our records.

You can do this in whatever way is easiest for you:

Upload it securely through our website

Email it to our office

Or, if you prefer paper, let us know—we’ll gladly send you a FedEx envelope with a return label included

Our goal is not to add steps, but to remove friction.

Good financial planning isn’t about reacting at the last minute. It’s about quiet preparation, done consistently, year after year.

If you have questions, need a form, or want help coordinating with your CPA, we’re here. Our role is to make this process easier—so you can focus on the parts of life that matter far more than a filing deadline.

2025 Tax Preparation! Fortune Favors the Prepared

When the People You Care About Ask for Help

Q4 2025 Newsletter

Medicare Open Enrollment!

If you or someone you love would benefit from a Medicare review before December 7, reach out to us. You have built a lifetime of financial security — and we intend to help you keep it.

12 Potential Tax-Savings Opportunities in O.B.B.A

Your best defense, however, is to remember the words of Admiral Ackbar in Star Wars: “IT’S A TRAP!” and whenever you see even a hint of fraud, call our office (847-954-7028) ASAP and our team will always be glad to help determine if it is legitimate

“It’s a Trap!”

-ADMIRAL ACKBAR (STAR WARS: RETURN OF THE JEDI, 1983 DOW ~ 1,100)

Mark your Calendars!

Q3 2025 Newsletter

The Big Beautiful Bill ACT – A Tax Perspective

The Headlines

The Perspective

Bottom Line

What You Should Do Now?

No panic. No politics. Just planning.

We'll be discussing the new Tax Law in our next Townhall on August 5th at 5:30 CT We’ll be ready—and so will you.

We hope everyone is having a great summer thus far!

Graham loves summer - or more specifically Ice Cream Cones (He calls them "I nee coe")

Mark the Calendar!

Q2 2025 Newsletter

Every so often, something surfaces that rattles investors’ and our financial news media confidence. A crisis, a conflict, a change in policy. It almost always arrives wrapped in the same seductive phrase: “This time it’s different.”

We heard it in 2016 with Brexit.

In 2018, it was trade war rhetoric—culminating in a Christmas Eve when the market was down 25%.

In early 2020, we endured the swiftest 30% market decline in history—followed almost immediately by the fastest recovery ever recorded.

Then came 2022, with the highest inflation in 40 years and the most aggressive interest rate hikes since the 1980s.

And now, in 2025, tariffs have once again taken center stage—evoking comparisons to the protectionist policies of the 1930s, and even further back to President McKinley’s platform of the 1890s.

So here we are again. Different headlines. Same Reaction

If we’ve learned anything from the past century of market history, it’s this: circumstances change, but average investor behavior stays the same. Panic. Recovery. Growth. Repeat.

Please understand: I do not believe you are the average investor. What I am saying is this: volatility is part of the journey. We planned for it, it's been part of every client review I have conducted. We expect it.

For any client-related request, the most effective way to reach us is by emailing:
client@harborw.com

We'll be discussing the new Tax Law in our next Townhall on August 5th at 5:30 CT
We’ll be ready—and so will you.