March 2025 Financial Focus
Closing March: Steady Now, Strong Tomorrow
Markets Fluctuate, Strategy Endures
The S&P 500 just dropped 10% in 20 calendar days; the fifth fastest correction in 75 years, though still shy of the record eight-day plunge at COVID’s onset on February 27, 2020. History shows the market averages three 5%+ pullbacks annually. These dips are normal, and even healthy not a cause
for alarm. Data backs this up; despite these jolts, year-end returns often stay positive, despite short term volatility. Patience pays off; reacting does not. Volatility isn’t a threat; it’s an opportunity.
Why does this matter? I was reminded recently of a simple truth: I don’t fiddle with my thermostat every hour; I set it and let it work. The stock market is the same. It’s a tool, not a tyrant. A legendary investor once said, “Ignore the stock market; it doesn’t even exist.” These are wise words urging us to tune out the noise and trust the strategy that we have built together. Your goals deserve focus, not fleeting headlines.
That said, as your advisors, we do not, and will not bury our heads in the sand. Ignoring the market entirely is not our job; managing it is. The straight-up climb we’ve seen since 2022? That was the outlier, not this pullback. Recent shifts in the U.S. have stirred volatility, and we expect more ups and downs ahead, but these are normal market waves. Our plans, tailored to each of you, are built for this: diversified, risk-adjusted, and poised to rebound. Last month, we stressed sticking to the plan, today we are living it. Making smart, short-term adjustments, while keeping your long-term goals in sight. No wild swings needed; our approach has us in a stronger spot than ever. Trust the process—it’s working, and it will carry us forward.
At a portfolio level, we just went through an in depth analysis of our equity positions. The conclusion? Our portfolios equity holdings are right in line with where we want them to be. However, in the fixed income sector of the portfolios, we did make small change by adding a new fund. The goal? To add diversification and decrease correlation away from the equities market. In the process we were also able to increase yield in the allocation.
“We invest in the world that we have...not the one we want”
Every Dollar’s Purpose: The Bucket Approach
Saving is a solid start, but without direction, it’s like packing for a trip with no destination. That is where a structured plan comes in—specifically, our “bucket approach.” The idea? Give every dollar a job by dividing your savings into three buckets
Bucket 1:
Traditional Retirement Accounts (401(k),
IRA): Pre-tax contributions lower your taxable income now; withdrawals are taxed in retirement. This is great for long-term growth, but locked until 59½.
Bucket 2: Roth Retirement Accounts (Roth IRA, Roth 401(k)): After-tax contributions today mean tax-free withdrawals later. The same age rules apply, but the tax perk is a game-changer.
Bucket 3: Taxable Investment Accounts (Brokerage/After Tax): After-tax money with no limits or withdrawal restrictions. Think of it as your “life happens” fund—flexible and ready when you need it.
Why It Works: Utilizing all three buckets gives you balance—liquidity for emergencies (a new furnace), tax efficiency in retirement, and control over your tax bracket.
Scenario: Imagine saving at a 20% tax rate throughout your working life. Then in retirement, withdrawing strategically at just 12% due to having three buckets of money to utilize- a flexible plan. A portion would come from Traditional IRA’s- where you pay income taxes, some from ROTH IRAs - where you pay no taxes and some from your after tax account-where you pay capital gains.
The outcome? A lower overall tax bill. That's the game, and over time, putting more money in your pocket, not Uncle Sam’s. It’s not just saving, it’s saving smart.
Firm Updates
We are always striving to enhance how we work with you, especially as the world shifts more online. Forget remembering to bookmark every sign-on you use, soon, you will visit our site and find a simple directory, where every log-in we work with is just a click away. This is about making your life easier, and letting more people discover the value we bring. Stay tuned—this refresh should be live by next month’s newsletter!
Closing Remarks-
We hope you are enjoying the newsletters and finding value in them. As weare just starting out, we are committed to making them better over time. Your feedback is important! If there’s anything you’d like to see, please do not hesitate to let us know. In our view, the US economy remains robust. With profits and growth as key drivers, We are optimistic about the markets moving forward.
Partnering with you on your financial journey.
Pertinent Information
SEI has transitioned client access to the new Investor Portal Admin A new SEI Mobile App is now available for easier access on the go If you need help setting up your online access, please contact our office
United Advisor Group, LLC, d/b/a Miami Valley Financial Partners, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. MVFP, Form ADV Part 2A & CRS can be obtained by visiting: https://adviserinfo.sec.gov and search for our firm name. Neither the information nor any opinion expressed is to be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice. Securities offered through Silver Oak Securities, Inc., Member FINRA/SIPC. Advisory services offered through United Advisors Group. Silver Oak Securities and United Advisor Group are not affiliated. Important letters, email, or fax messages should be confirmed by calling 937-428-9204. This email service may not be monitored every day, or after normal business hours.
