Reflecting on Growth
As 2024 comes to an end, we at ProsperPlan Wealth want to take a moment to thank you for being the foundation of our shared journey. From the financial markets to our terrific team, and, most importantly, to our relationship with you, this has been a year of incredible growth and fulfillment.
In that vein, we are continuing to increase our social media presence and hope you will join us. For additional news, updates and information about investing, retirement, the economy, or your relationship with ProsperPlan Wealth, please friend us on Facebook or follow us on X.
Now, I would like you to take a moment to think about the Industrial Revolution: a time when new ideas and collaboration changed the world.
Beginning in the 18th century, society began to evolve from an agrarian (farming) to an industrial economy. The Industrial Revolution emerged because there was more demand for goods and services than the previous era’s capacity for production and supply. And this led to goods, which had once been almost entirely made by hand, being produced by machines, which sped up manufacturing and lowered prices.
In that respect, “need” has historically been the driver of innovation.
Enter the financial advisory sector. After decades with comparatively few advances, financial planning is experiencing its own era of innovation and transformation. Technology has not only removed much of the speculation, but it has also enabled more personalized, transparent, and effective planning.
At ProsperPlan, we are leveraging advanced technologies to help ensure that your financial plan protects and offers the potential to maximize your wealth, always staying true to your best interests.
It’s an exciting time to be a financial planner. But the fact is that it all still comes down to our relationships with you. AI is great for organizing thoughts and performing research, but the reality is that you need personalized strategies and human relationships to ride out the emotional events that take place throughout your life.
We value our unique partnership with you and believe you deserve the benefits of strong financial education.
In 2025, we will enhance our communication and outreach to ensure you feel supported and empowered throughout your financial journey. This includes providing accessible and relevant white papers, videos, articles, and other financial tools to help you understand and manage your personalized plan effectively.
I need your help – as we begin increasing our educational content and insights, we would love to receive your feedback, requests, and questions to help us create content that is meaningful to you.
2024 really has been extraordinary. The markets rewarded thoughtful planning and disciplined investing, and we grew in ways that we believe mirror our unwavering commitment to serving you.
Together, we’ve navigated challenges, celebrated milestones, and mapped out brighter futures.
And it’s only the beginning.
Looking Ahead to the New Year
While the new year brings opportunity, it’s also important to remember that the financial landscape will continue to evolve.
That is why your plan is a living, breathing roadmap that must adapt over time.
Simply, while we are always thankful for the wins, we must continue to prepare for the future. As the markets and policies shift, our financial planning team and our investment management team will continue working together to make the appropriate changes to your portfolio on your behalf.
Here are a few notable updates that come to mind for 2025:
Changes to Social Security for the Public Sector
The Social Security Fairness Act was introduced in the House of Representatives in 2023, but its core issues have been simmering in Congress since 2003.
The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) have significantly impacted many teachers, police officers, firefighters, and public servants by depriving them of crucial Social Security and spousal/survivor benefits—especially when their partners pass away first. In financial planning, we call this “mortality risk.” Simply stated, it’s the risk of losing your spouse’s income, and your lifestyle, when they pass away.
Over the years, I’ve witnessed firsthand how losing these important benefits can lead to challenging lifestyle changes later in life for those affected.
Drawing on this experience, I’m thrilled to share that as of Saturday, December 21, 2024, both the House and the Senate have approved eliminating WEP and GPO. Now that the bill has passed Congress, the next step is for President Biden to sign this significant change into law.
This development is genuinely life-changing for those who never expected to receive these important social benefits. Teachers, police officers, firefighters, and other government workers, along with their spouses, will need to revisit their financial plans.
Based on my initial estimates, this adjustment could increase retirement income by anywhere from $6,000 to $44,000 per year to impacted people, depending on the situation.
For our clients who fall into these categories, we may need to revise your Social Security filing strategy once this legislation is signed into law.
Let’s discuss how this change may affect your personal finances during our 2025 annual review meeting. Also, please share with friends and family members in these professions that we’re here to help them optimize their Social Security filing strategies to enhance their long-term financial well-being.
Modern Wealth Strategies for 2025 and Beyond:
In 2025, modest tax changes—including increased 401(k) and 403(b) contribution limits, higher annual gift tax exclusions, and enhanced “super catch-up contributions” for individuals aged 60-63 under the SECURE 2.0 Act—provide new opportunities to optimize your retirement savings and estate planning.
We plan to have your 2025 tax planning guide posted to our Insights section on www.ProsperPlan.com soon.
As the new administration gets to work, we will keep you informed about these updates and continue to tailor your personal strategies to maximize your financial growth and tax efficiency.
Speaking of Policy Changes – This is something to be aware of from Secure Act 2.0: Automatic enrollment for new plans
If you have children or find yourself mentoring others on finances, this may be a valuable topic of conversation.
The government is not only encouraging employees to participate in retirement investing, it is now enforcing automatic participation.
This is encouraging news for the markets, investors, and future retirees because it increases the amount of new funds entering the market at payroll periods and ensures people are growing in their own financial independence, but it will definitely cause some confusion to unexpecting workers and employers alike.
Section 101 requires new 401(k) plans to automatically enroll participants upon attaining eligibility. The initial automatic enrollment amount is at least 3 percent but not more than 10 percent. Each year thereafter that amount is increased by 1 percent until it reaches at least 10 percent, but not more than 15 percent. Plans established before December 29, 2022 are grandfathered. There is an exception for small businesses with 10 or fewer employees, new businesses (i.e., those that have been in business for less than 3 years), church plans, and governmental plans.
Section 101 is effective for plan years beginning after December 31, 2024.
Thank You for Being the Most Integral Part of Our Success
As your concierge financial planning and investment management team, we are deeply grateful for you, your families, and the communities of friends you’ve connected us with. Your referrals, overwhelmingly positive Google reviews, and kindness have helped our team grow in ways we could not have previously predicted.
It’s an honor to serve you and be part of your journey.
2024 has shown us the incredible impact of shared vision and collaboration. Your trust has inspired us to reach new milestones, and we are incredibly excited for what we believe we will achieve together in 2025.
Wishing You a Prosperous New Year
As you wrap up celebrating this holiday season, be it with loved ones, or with introspective gratitude (hopefully in a location that brings you contentment and joy), please remember that we’re here to support you.
That is our soul purpose.
Here’s to making 2025 a year of growth, prosperity, and gratitude.
Happy New Year!
