President Trump signed a memorandum of understanding with Iran, which reopened the Strait of Hormuz and sent oil prices lower. Markets liked that news, and the Dow crossed 52,000 for the first time, while the S&P 500 and Nasdaq reapproached their recent highs.

The deal is more of a pause than a resolution, and there are still lots of talks ahead. We’ll be watching that situation closely.

The second story is the Federal Reserve. New chair Kevin Warsh held rates steady at his first meeting, but signaled rates could possibly go up this year, depending on where inflation stands at their upcoming meetings.

So while the headlines look encouraging, there’s still plenty of uncertainty ahead. As always, we’re monitoring these developments and making adjustments as needed to the portfolios we manage. If you have any questions, just let us know!

In The News

Paging Congress: Social Security Will Run Short in 2032

The article highlights:

• The Social Security trust fund is now projected to run short by the fourth quarter of 2032.
• This new date is one quarter earlier than what was predicted just last year.
• If the fund is depleted, Social Security will only be able to pay 78% of scheduled benefits.
• This shortfall would mean an immediate 22% cut for tens of millions of retirees.
• The report lowered birth rate expectations to 1.75 children per woman, which reduces future tax revenue.
• Lower immigration numbers are also expected to shrink the pool of workers paying into the system.
• Recent tax legislation that made previous tax cuts permanent has also impacted the program’s long-term funding.
• Higher labor productivity and rising average earnings were the only positive revisions in the report.
• Trustees are urging Congress to act sooner rather than later to avoid more drastic and unpopular fixes.
• Delaying a solution means that future payroll tax increases or benefit cuts will likely have to be much larger.
• Lawmakers elected this year will be in office when the program becomes unable to pay full benefits.
• The report emphasizes that Social Security’s crisis is “highly predictable and fully avoidable” with bipartisan action.

2026 Social Security Changes: Tax and Benefit Strategies

• The OBBBA created a temporary $6,000 senior bonus deduction for individuals age 65+ (up to $12,000 for eligible married couples), available through 2028 — a narrow window most clients don’t know exists.

• The Social Security wage base increased to $184,500 in 2026; combined with strategic income management — Roth conversions, withdrawal sequencing, capital gains timing — proactive planning can significantly reduce lifetime tax exposure.

• Most clients treat Social Security as a standalone checkbox; the advisors winning right now are treating it as an integrated income strategy — one piece of a coordinated Roth conversion, RMD, and tax-bracket management plan.

With ROTH conversions, you can either win, lose or draw… If you want to learn more or have questions on this, just reply to this email and let us know! We are always happy to talk about how this will affect you personally.

Allianz Life: Record High Investment Anxiety — The Highest Since 2019

• 48% of Americans say they’re too nervous to invest right now — the highest level since Allianz first tracked this question in 2019, up from 41% just one quarter prior.

• 73% are concerned that continued volatility could negatively impact their long-term financial plan, and 72% worry they won’t be able to afford the retirement lifestyle they want if market swings continue.

• 47% say market volatility is making them nervous, specifically about their nest egg — matching the elevated anxiety levels last seen during the rapid inflation spike of 2023.

This is why having a team is important! We make sure your retirement is protected! We look to maximize your retirement income, not just your Social Security. We manage risk so you don’t have to worry and so you can live your dream with financial security, not anxiety! Any questions or concerns, we are always here for you!

Just for Fun

Dad Joke of the Week:

What do you call a dog who meditates? Aware wolf.

Say What?

15 sets of twins have graduated from one New York high school the same year!

A high school in the suburbs of New York City was seeing double on graduation day: Among the nearly 500 students in its graduating class, 30 are twins.

It’s a tight knit group. Some of the students at Long Island’s Plainview-Old Bethpage John F. Kennedy High School have known each other since kindergarten, their parents meeting through a local twins’ club. Some even still plan family vacations together.

What are the chances?!

This Week in History

1776 – Continental Congress votes for independence from Britain

1890- Idaho becomes the 43rd state

1950- US World Cup team wins unlikely victory over England

1963 – U.S. Post Office introduces zip codes

2005- Last Ford Thunderbird produced

What Did it Cost? (TV)

1985 – $500

2004- $1,000

2024 -$1,000-$2,500

Have a great weekend!