Author: cindylundberg@verdecm.com

Welcome back to Marc’s Book Club! Each month, I read a new book of my interest and share my thoughts and insights – whether it is personal, financial, or both. This month’s read is The Psychology of Money by Morgan Housel, which dives into how our behaviors and beliefs shape our financial lives and decision-making. Money plays a large and unique role in all our lives. Yet, according to a 2022 Junior Achievement Survey, 80% of teens say they wish they were taught more about money management in school. While learning the basics of saving, credit, and investing is essential, even more important is developing a healthy mindset around money. Money is simply a tool to do the things we love doing, with the people we love the most. In The Psychology of Money, Housel dives into different behaviors that lead us to make flawed decisions with their money, and ways to build healthier habits and mindsets.

 

One of the most powerful lessons of the book  is that we all have different goals when investing, saving, or spending – which means everyone has a different journey with their money. Yet, we often assume that our ‘next-door neighbor’ has the exact same goals as we do when investing. This is when problems arise. For instance, the ‘next-door neighbor’ might brag about a 10x return they made on a speculative investment in a short period of time. This can easily trigger a sense of FOMO for us. What is often overlooked is that we already have a rock solid plan in place to reach our financial goals, and investing in such a speculative investment for a quick return would lead to unneeded risk and potential financial ruin. Housel eloquently says: 

“few things matter more with money than understanding your own time horizon and not being persuaded by the actions and behaviors of people playing different games than you are. The main thing I can recommend is going out of your way to identify what game you’re playing. It’s surprising how few of us do. We call everyone investing money “investors” like they’re basketball players, all playing the same game with the same rules. When you realize how wrong that notion is you see how vital it is to simply identify what game you’re playing.”

 

Housel’s idea of ‘the game’ is crucial. By constantly trying to keep up with our ‘next-door neighbor,’ we lose sense of what is most important to us, and stop playing the financial  ‘game’ we want to win at. Having an investment plan rooted towards achieving our own goals is most important.

 

Another key takeaway is the difference between gambling and investing. Housel recalls, “A friend of mine makes an annual pilgrimage to Las Vegas. One year he asked a dealer: What games do you play, and what casinos do you play in? The dealer, stone-cold serious, replied: “The only way to win in a Las Vegas casino is to exit as soon as you enter.” That’s gambling: there might be a few times where you win big, but more often than not you leave even or down. Investing, on the other hand, is like being the casino, or ‘the house.’ Some days are down, most days are up, and over time, the house grows stronger and always wins. Just like the casino, balancing short-term fluctuations with the long-term success of the markets is the optimal way to build wealth.

 

Lastly, Housel writes about the importance of viewing market volatility as a fee, not as a fine. Investing is inherently risky, and the only way to receive heightened investment returns over long periods of time is to accept some level of risk. When markets have volatility, like what we have seen so far in 2025, many investors retreat to cash because they do not have the tools and proper mindset to deal with short-term pain. Housel writes, “Market returns are never free and never will be. They demand you pay a price, like any other product. You’re not forced to pay this fee, just like you’re not forced to go to Disneyland…The volatility/uncertainty fee—the price of returns—is the cost of admission to get returns greater than low-fee parks like cash and bonds.” The key to investing is keeping a long-term mindset, and embracing uncertainty and volatility as the price to achieve higher investment returns.

 

The Psychology of Money is a must-read for anyone interested in understanding the why behind our  financial choices. Recognizing where we are already excelling, as well as acknowledging where we can improve, is key to moving forward in a positive way. Most importantly, the book encourages you to figure out what game you’re playing—both with your money and in your life—and to take deliberate steps towards winning the game.

By Carl Szasz, President | Financial Advisor

 

When markets tumble and headlines scream uncertainty, anxiety can quickly set in. However, these moments of volatility are not just tests of nerve, they’re opportunities for savvy investors. At Verde Capital Management, we guide clients through these turbulent periods by encouraging three strategic actions:

1. Deploying Excess Cash During Market Downturns

If you have cash that you don’t anticipate needing for at least 12 to 36 months, a market decline presents a potential buying opportunity. Historical data from First Trust shows that after significant market drops (specifically declines of 5% or more in a single day) the market has, on average, risen by over 30% in the subsequent year.¹ Investing during these downturns positions you to benefit significantly as markets recover.

2. Traditional IRA to Roth IRA Conversions

Market drops create ideal moments to convert traditional IRAs to Roth IRAs. Consider a traditional IRA valued at $100,000 before a downturn, now valued at $90,000. By converting now, you’re taxed only on the reduced value. When markets rebound and the account recovers to its original value or grows even more, this growth occurs tax-free in your Roth IRA.

3. Embrace a “Low Bad News” Diet

Behavioral finance tells us that most investors are naturally loss-averse. That means we feel the pain of losses far more intensely than we appreciate equivalent gains. During market declines, loss aversion can be particularly pronounced, leading to anxiety-driven decisions.

One common mistake is focusing on your portfolio’s decline in terms of absolute dollars rather than percentages. Imagine you have a $1 million portfolio that falls by 10%. Saying, “I lost $100,000!” can trigger panic, especially when mentally equated to your annual income. Yet, saying, “My portfolio dropped by 10%, and markets can recover quickly,” offers perspective and reduces unnecessary stress.

A Personal Story: Perspective Matters

When I started my advisory career at American Express, my wife Melissa would ask how my day went. On days when markets were volatile, I’d casually say, “Bad day, I lost $2 million,” or conversely, “Good day, I made $3 million.” After a series of negative days, Melissa became visibly worried. “Are we going bankrupt? Is your business okay?” she asked anxiously.

I was taken aback until realizing I’d been unintentionally sensationalizing daily market swings. I explained to her, “Honey, $2 million represents just 1% of the total assets I manage. The market regularly moves by that much daily.” She replied, understandably frustrated, “Why didn’t you say that sooner? You’ve had me worried sick!”

This experience taught me a crucial lesson about framing. Losses expressed dramatically in dollar terms can induce panic. By focusing on percentages, we maintain perspective and emotional clarity.

How Verde Capital Management Supports You

While it’s vital for you to maintain perspective, it’s equally crucial for your advisors to proactively manage your portfolio:

• Preparing Before the Storm: At Verde, reacting to market volatility as it’s happening is akin to “trying to catch a falling knife.” A safer strategy is waiting until the knife hits the ground before picking it up. Anticipating downturns months in advance allows strategic rebalancing, currency hedging, and diversification into sectors less impacted by specific economic stressors, like tariffs.
• Watching Institutional Movements: One reliable sign the “knife” has hit the ground is institutional buying, particularly noticeable during the final 30 minutes of trading. Institutions typically execute their trades late in the trading day. If markets improve towards the close, it signals confidence from larger investors that valuations have stabilized. At Verde, we carefully monitor these patterns to optimize our timing.

Bottom Line

Market volatility will always be part of investing. By strategically deploying excess cash, considering Roth conversions at opportune moments, and managing your emotional response through perspective and a “low bad news” diet, you can significantly enhance your investment outcomes. At Verde, we’re committed to proactive portfolio management and thoughtful communication, helping you navigate market turbulence with confidence and clarity.

As always, reach out to your advisor if you have questions or concerns, we’re here to guide you every step of the way.

 

¹ Source: Bloomberg. Performance is price return only (no dividends). As of 9/30/2022. Past performance is no guarantee of future results. For illustrative purposes only and not indicative of any actual investment. Returns are average annualized returns, except those for periods of less than one year, which are cumulative. Index returns do not reflect any fees, expenses, or sales charges. Stocks are not guaranteed and have been more volatile than the other asset classes. These returns were the result of certain market factors and events which may not be repeated in the future. The S&P 500 Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index.

Hi everyone, and welcome to Marc’s Book Club! Every month, I will be reading a new book of my interest and sharing my thoughts and insights – whether it is personal, financial, or both! I have loved reading since a young age, and it is something I like to do in my free time for both comfort and personal growth. I am excited to take you along this journey with me!

 

This month’s book is Greenlights by Matthew McConaughey. I have always enjoyed movies he has been in, as well as his witty and wacky Lincoln car commercials. Naturally, I read Greenlights, his autobiography published in 2020. This is not a traditional autobiography, though – McConaughey begins the book by explaining, “This is not a traditional memoir…This is an approach book. I am here to share stories, insights, and philosophies that can be objectively understood, and if you choose, subjectively adapted…This is a playbook, based on adventures in my life.” I will detail some of the stories and insights that resonated the most with me and that I feel that we could all apply to our own lives.

 

After high school, McConaughey thought he was going to be a lawyer, as that was always what his father and his family wanted him to do. But in the middle of college, he decided he wanted to pursue storytelling and apply to film school. Nervous of how his father would react to the news, McConaughey procrastinated on telling him. When he finally told him, his father’s only reply was, “Don’t half-effort it.” A huge weight was lifted off his shoulders, and he writes, “With those words he not only gave me his blessing and consent, he gave me his approval and validation.” Anything we decide to do in life, we should go all in and do it with all of our ability and full effort.

 

McConaughey details how in the middle of his acting career he was experiencing great success, but was feeling unfulfilled. He has been pigeonholed into being cast in rom-com movies, and felt he was not being challenged. He yearned to be cast into more serious roles. He made a bold decision to decline any opportunity that came his way unless he felt it was a serious role that would push him outside of his acting comfort zone. Two years went by without any work, before he was finally offered a role in Dallas Buyers Club, which he earned an Oscar for Best Actor. Stepping outside of our comfort zone and taking calculated risks, often leads to the biggest opportunities for growth in our personal and professional lives.

 

Finally, McConaughey stresses the importance of discipline in perfecting one’s craft. He writes, “Create structure so you can have freedom…Learn to sail before you fly…We need discipline, guidelines, context, and responsibility early in any new endeavor.” This is especially true in relation to one’s financial journey.  This is especially true in personal finance. Before we invest, we need a solid financial foundation—an emergency fund, adequate insurance, and a clear understanding of our cash flow. Only then can we confidently take steps toward financial freedom. At Verde, we specialize in helping clients build that structure so they can achieve their goals with confidence.

 

Greenlights has many different stories and anecdotes that will inspire you and make you laugh. McConaughey has a way of writing that is easy to understand and can be relatable to anyone. He challenges you to “think with the end in mind” to consider what we truly want to pursue in life. Come back next month for the latest edition of Marc’s Book Club!

A letter from Verde Capital Management’s President & CEO, Carl Szasz

We understand that recent market volatility may be causing concern, and we want to assure you that we are actively monitoring developments and making strategic adjustments to protect your investments. The US stock market has declined over 10% from its peak just a few weeks ago, largely driven by uncertainty surrounding trade policies and tariffs. However, our approach remains disciplined, data-driven, and focused on long-term financial success.

 

Understanding Market Volatility

So far this year, the markets have experienced some notable fluctuations. As measured by the S&P 500 index, which tracks the 500 largest companies in the U.S., the market at one point was down nearly 10% from its recent peak. While this may seem concerning, it is important to recognize that a 10% peak-to-trough downturn happens almost every year. Historically, such declines do not indicate that a recession is imminent or even likely; rather, they reflect a temporary shift in market sentiment from optimism to pessimism. These fluctuations are a natural part of investing and should not deter long-term investors from their financial goals.

Much of the recent turbulence stems from uncertainty around tariffs, some of which have been imposed and later removed on countries like Canada and Mexico, with potential for additional tariffs involving China and Europe. Many businesses worry about supply chain disruptions, increased costs, and potential price inflation. The situation may feel reminiscent of the 2022 inflation scare, which led to a market downturn and widespread speculation about a recession that ultimately did not materialize.

We also recognize that media coverage can amplify market anxieties. News sources often present issues through a political lens, which can make it seem as if dramatic changes are imminent. However, despite concerns, critical government functions remain stable. Social Security checks continue to be paid, Medicare and Medicaid remain intact, and essential services continue as usual. By maintaining a long-term perspective, we can see past the short-term noise and focus on fundamental economic realities.

 

Our Strategic Approach

At Verde, we are taking proactive steps to manage risk and seize opportunities amidst market fluctuations:

1. Currency Hedging:Trade tensions often cause currency fluctuations that contribute to market volatility. By utilizing futures contracts and hedging strategies, we can mitigate these risks, as demonstrated recently when the U.S. imposed and then removed tariffs on Canada. The initial market reaction was temporary, and currency valuations soon stabilized.
2. Geographic Diversification:We are ensuring that portfolios are not overly concentrated in any single region. While the U.S. remains one of the most attractive markets globally, we are identifying strong investment opportunities in Europe, Asia-Pacific, Japan, and Latin America, where valuations are more favorable.
3. Sector & Industry Diversification: Companies that rely heavily on international trade, such as manufacturers and retailers, are more vulnerable to tariff-related disruptions. We are increasing exposure to sectors that are less impacted by trade conflicts to provide greater stability.
4. Shifts in Supply Chains:The COVID-19 pandemic forced many companies to regionalize their supply chains, reducing reliance on global trade. Automakers, for example, now manufacture cars for the U.S. primarily in North America, for Europe in Europe, and for Asia in Asia. This shift makes tariffs less disruptive than they would have been in a more globalized system.

 

The Economic Outlook

Despite short-term market concerns, the U.S. economy remains strong:

• Low unemployment continues to support consumer spending and economic growth.
• Inflation is within a manageable range (approximately 2–3%), below long-term historical averages.
• Economic growth is solid, with GDP expanding around 3%, faster than the historical trend.
• The Federal Reserve stands ready to adjust interest rates if needed to sustain economic momentum.

Furthermore, progress toward a more balanced federal budget could reduce government borrowing costs, potentially lowering interest rates on mortgages and car loans while easing inflationary pressures. All of these factors support a positive market outlook for long-term investors.

 

Staying Focused on Long-Term Goals

Market downturns often create opportunities for disciplined investors. With many stocks down 5%, 10%, or even 20% from recent highs, we are identifying attractive buying opportunities to strengthen your portfolio. If you have cash available or would like to explore investment opportunities, we encourage you to reach out to your advisor.

Rest assured that we remain committed to safeguarding your financial well-being through prudent risk management, thoughtful diversification, and a long-term perspective. Should you have any questions or wish to discuss your portfolio in more detail, please do not hesitate to contact us.

As we navigate these market fluctuations, it’s essential to maintain a sense of optimism, a crucial component of any successful investment strategy. Investing inherently involves a belief that the future holds greater potential than the present. Therefore, it’s beneficial to steer clear of sources that may dampen this positive outlook.

 

Optimism is Essential

During this season of reflection and mindfulness, a time traditionally associated with reflection and abstinence, we encourage you to consider a “fast” from news outlets, podcasts, or television programs that are overly critical of politicians, religious figures, or celebrities. By limiting exposure to negative narratives, we can create space to appreciate the positive developments unfolding around us. Here are a few uplifting stories and resources that highlight progress and innovation:

• Michigan’s Retirement Tax Reduction

Michigan’s Lowering MI Costs Plan (Public Act 4 of 2023) reduces state taxes on IRA retirement distributions. Signed into law on March 7, 2023, it amends Michigan’s Income Tax Act to gradually increase deductions on retirement and pension benefits through 2026.

For detailed information, you can visit the Michigan Department of Treasury’s FAQ page on these changes.

• Advancements in Robotics

Innovations in robotics are transforming daily life. For instance, the humanoid robot “Figure 1” is designed to assist with household chores, showcasing the potential of technology to enhance our everyday experiences. You can watch a demonstration of Figure 1 in action here.

• Inspirational Reading

I’m currently reading Life Force: How New Breakthroughs in Precision Medicine Can Transform the Quality of Your Life & Those You Love by Tony Robbins, Peter H. Diamandis, and Robert Hariri.

This book explores cutting-edge medical advancements and insights on longevity, inspiring me and expanding my understanding of health optimization. More information about the book is available here.

 

By focusing on positive developments and limiting exposure to negativity, we can cultivate a more optimistic mindset, which is essential for long-term investment success and personal well-being.

Thank you for your trust in us.

Money is one of the biggest sources of stress in relationships, but it doesn’t have to be. Whether you’re newlyweds or have been together for years, having open, honest, and strategic conversations about finances can strengthen your relationship and your financial future. Here’s how to build a money management system that works for both of you.

1. Start with a Money Date

Set aside time for a financial check-in. Call it a “money date” to make it less intimidating. Pour some coffee (or wine) and have a relaxed conversation about:

• Your current income and expenses
• Debts and savings
• Short-term and long-term financial goals
• Money values and any financial concerns

This isn’t about judgment. It’s about understanding where you both stand. If you’ve never had a structured money talk, start with sharing your financial priorities (e.g., paying off debt, saving for a house, investing more) and work toward a shared plan.

2. Decide How to Structure Your Finances

Couples manage their money in different ways, and there’s no one-size-fits-all solution. The key is finding what works for both of you. Here are the three main approaches:

• Fully Combined Finances – You merge everything into joint accounts and pay all expenses together. Best for couples with similar money habits and financial goals.
• Partially Combined Finances – You keep some accounts separate but share joint expenses proportionally or equally. This works well for couples with different incomes or spending styles.
• Completely Separate Finances – Each partner maintains separate accounts and splits bills as agreed. This can work, but it requires clear communication to avoid financial friction.

If you haven’t already, open a joint account for shared expenses like rent, groceries, and utilities. Set up direct deposits or automatic transfers to fund this account based on your agreed-upon contributions.

3. Create a Spending Plan (Not Just a Budget)

Instead of a restrictive budget, think of it as a spending plan that aligns with your priorities. Together, decide:

✔ How much to allocate for essentials (housing, bills, groceries)
✔ How much to save and invest (retirement, emergency fund, big purchases)
✔ How much each person gets for personal spending (no questions asked!)

Having clear guidelines ensures that both partners feel financially secure while still having individual freedom.

Use budgeting apps like YNAB, Mint, or Monarch Money to track spending together. If you’re a Verde client, you have a built in budget tracker on your Verde Client Website. Set up a monthly review to adjust as needed.

4. Divide and Conquer Financial Responsibilities

Managing money together doesn’t mean one person should handle everything, unless that’s what works best for you both. Instead, divide financial responsibilities in a way that feels fair and effective.

For example:

• One person handles bill payments, while the other tracks investments.
• One manages short-term savings, while the other focuses on long-term planning.

The key is making sure both partners stay informed about where the money is going. Set up a shared spreadsheet or use your Verde Client Website as a financial dashboard so both of you can see the big picture at a glance.

5. Align on Long-Term Financial Goals

It’s not just about paying the bills, it’s about building a future together. Some key questions to discuss:

• How much can we save for retirement?
• When do we want to buy a home (or upgrade)?
• What big purchases or vacations are on our list?
• Do we want to start a family, and what financial steps do we need to take?

Aligning on long-term goals ensures that your daily spending and saving decisions move you closer to the life you want. Create a joint financial vision. Write down your top 3-5 long-term goals and set milestones to track progress.

6. Build an Emergency Fund Together

Life happens. Having an emergency fund gives you both peace of mind when unexpected expenses arise (medical bills, job loss, car repairs).

Aim to save 3-6 months of living expenses in a high-yield savings account. If you don’t have this yet, start small, automate a portion of each paycheck into your emergency fund. Open a high-yield savings account, like the Verde Flourish Savings Account, and set up an automatic transfer every paycheck.

7. Plan for Debt & Credit Together

Debt can be a sensitive topic, but tackling it as a team strengthens your financial position. Whether it’s student loans, credit cards, or personal loans, have a game plan for paying it down.

Key steps:
1. List all debts (balances, interest rates, minimum payments)
2. Decide whether to use the debt snowball (smallest first) or debt avalanche (highest interest first) method
3. Avoid taking on new debt unless it aligns with your goals

Schedule a meeting to review your debts and decide on a repayment strategy together.

8. Don’t Forget About Estate & Insurance Planning

It’s not the most romantic topic, but estate planning and insurance protect both of you. Every couple should:
✔ Have life insurance to cover income loss in case of an emergency
✔ Name each other as beneficiaries on financial accounts
✔ Set up a basic estate plan (will, power of attorney, healthcare directives)

If you don’t have a will or life insurance, talk to your Verde Advisor about your options.

9. Keep the Money Conversations Ongoing

Finances aren’t a one-time discussion, they evolve as life changes. Make money talks a regular habit to check in, adjust, and stay on the same page.

Try:
✔ Monthly Money Check-Ins – Review expenses, savings, and goals.
✔ Annual Financial Reviews – Look at long-term goals, tax strategies, and investment performance.
✔ Dream Planning Sessions – Talk about future aspirations, like early retirement or buying a vacation home.

Love & Money Can Work Together

Managing money as a couple is about teamwork, not tension. With open communication, shared goals, and a clear financial plan, you can build a future together that reflects your values and dreams.

Need help structuring your finances as a couple? Verde Capital Management can help you create a personalized financial plan that aligns with your goals. Reach out to us today!

As wildfires continue to impact communities in Los Angeles, the immediate focus is, understandably, on safety and recovery. However, the financial ripple effects of natural disasters can be long-lasting and challenging to navigate. From unexpected expenses to insurance complexities, these events serve as an important reminder to review your financial readiness.

Here are a few steps to consider, whether you’ve been directly affected or want to strengthen your financial plan for the future:

1. Review Your Insurance Coverage

Wildfires underscore the importance of adequate homeowners or renters insurance. Review your policies to ensure:

• Coverage for Replacement Costs: Make sure your policy covers the full cost of rebuilding or replacing your home and belongings, not just the market value.
• Add-ons for Natural Disasters: Standard policies may exclude wildfire damage in high-risk areas. Ensure you have appropriate riders or endorsements.
• Temporary Living Expenses: Check if your policy includes coverage for relocation or temporary housing costs if you’re displaced.

Pro Tip: Document your belongings with photos or videos. This can expedite the claims process in the event of a loss.

2. Build an Emergency Fund

The financial strain of evacuation costs, temporary housing, or lost wages can be significant. Aim to have 3–6 months’ worth of living expenses in an easily accessible account. If you’re in an area prone to disasters, you may want to extend that buffer.

An emergency fund is your first line of defense against using credit cards or loans during a crisis, which can lead to long-term financial strain.

3. Understand Tax Implications

If you experience losses due to a wildfire, you may qualify for certain tax benefits:

• Casualty Loss Deductions: Under federal tax laws, you may be able to deduct unreimbursed losses from natural disasters.
• Disaster Relief Credits: Check if your region has been declared a federal disaster area, as this can open up access to special tax credits or extensions.

Consult with a tax professional to determine how to maximize your relief options.

4. Plan for Rising Costs

Natural disasters often lead to increased costs for utilities, construction, and even insurance premiums in the affected area. Factor these potential increases into your budget.
For those rebuilding, consider inflation-adjusted costs when working with contractors or negotiating insurance settlements.

5. Diversify Your Investment Strategy

Disasters can also affect local economies, including real estate markets and certain industries. A well-diversified investment portfolio can help minimize the impact of localized disruptions on your long-term financial goals.

If you own property in fire-prone areas, consider diversifying into other asset classes or locations to mitigate risk.

6. Develop a Financial Disaster Plan

Just as you’d prepare an evacuation plan for your family, you need a financial disaster plan. Key components include:

• A list of important financial documents and account logins stored securely (e.g., in a fireproof safe or cloud-based system).
• Digital backups of essential records like insurance policies and wills.
• A designated financial point person if you’re unable to manage your finances during a crisis.

 

The devastating fires in LA remind us that natural disasters are unpredictable but not entirely unmanageable. Taking steps to strengthen your financial preparedness now can ease the burden if disaster strikes.

At Verde Capital Management, we’re here to help you create a resilient financial plan tailored to your unique needs. We can help evaluate your insurance, build an emergency fund, or strategize your investments. We’re here to guide you through life’s uncertainties.

If you have questions or need assistance navigating financial risks, don’t hesitate to reach out.

Need help preparing for the unexpected? Schedule a consultation with one of our advisors today.

Cybersecurity: Staying Vigilant with Your Finances This Season

As the holiday season approaches, we’re all busy juggling festive plans, gift shopping, and year-end financial decisions. But amidst the celebrations, it’s crucial to stay vigilant about cybersecurity. Scammers and hackers often ramp up their efforts during this time of year, targeting distracted individuals and businesses. Here are some essential tips to protect your financial well-being in this season of giving—and unfortunately, scamming.

Why Cybersecurity Matters

In our increasingly digital world, financial transactions and personal data are more accessible to cybercriminals than ever. From phishing emails to fake charity scams, the holiday season creates an ideal environment for fraudsters. A single lapse in cybersecurity could compromise your identity, financial accounts, and even your credit score. Protecting your financial life requires staying informed and taking proactive steps to safeguard your information.

Practical Tips for Cybersecurity

1. Be Wary of Phishing Attempts

Scammers often disguise themselves as trusted companies, charities, or even government agencies in their emails or messages. Watch out for:

• Urgent language like “Your account will be locked if you don’t act now!”
• Misspelled URLs or strange email addresses.
• Attachments or links you didn’t expect.

Always verify communications by contacting the organization directly through official channels.

2. Strengthen Your Passwords

A strong password is your first line of defense. Follow these tips:

• Use unique passwords for every account.
• Incorporate a mix of uppercase, lowercase, numbers, and special characters.
• Enable multi-factor authentication (MFA) wherever possible for an extra layer of security.

3. Monitor Your Accounts Regularly

Review your financial accounts for suspicious activity at least weekly:

• Look for unauthorized charges or withdrawals.
• Report discrepancies to your financial institution immediately.

Using a credit monitoring service can also alert you to changes in your credit report.

4. Beware of Holiday Scams

Fraudsters take advantage of the season with schemes like:

• Fake online stores offering “too good to be true” deals.
• Impersonated charities asking for donations.
• Social media ads leading to phishing websites.

Stick to reputable retailers and research charities before donating.

5. Protect Your Devices

• Keep your software and operating systems up to date with the latest security patches.
• Use antivirus programs to scan for malware.
• Avoid using public Wi-Fi for sensitive transactions unless you’re connected to a VPN (Virtual Private Network).

Stay Informed and Secure

This holiday season, take the time to protect your financial and personal data. Cybersecurity is a critical part of financial planning, and being proactive today can save you from headaches tomorrow. As always, Verde advisors are here to help if you have questions or want to review your financial plan for added peace of mind.

If you’d like to discuss financial planning or learn more about safeguarding your assets, feel free to reach out. Together, we can make sure your finances are well-protected, leaving you free to focus on what matters most.

The holiday season often brings thoughts of generosity, whether it’s supporting loved ones or making a difference in the community. Gifting—both to family members and charities—offers not only personal satisfaction but also financial benefits. Let’s explore why giving now might be a smart financial strategy, and how both personal and charitable gifts can fit into your overall financial plan.

Personal Gifting: Supporting Your Loved Ones

Giving financial gifts to family members can create meaningful, immediate impacts on their lives while also offering benefits for your financial plan.

1. Reduce Estate Taxes

Lower Your Taxable Estate: Making gifts to family members today can reduce the size of your taxable estate. By taking advantage of the annual gift tax exclusion, you can transfer assets gradually without dipping into your lifetime exemption. Over time, these gifts can significantly reduce the tax burden on your estate.

Immediate Financial Impact: Gifting to adult children or grandchildren allows you to see the positive changes your support brings, such as helping with education costs, home purchases, or paying off debts. Rather than leaving a large inheritance, personal gifts provide timely assistance that can foster financial stability.

2. Maintain Control and Flexibility

Structuring Gifts Strategically: For those concerned about giving large sums all at once, there are various strategies to retain flexibility. Trusts, for example, allow you to control how and when the funds are used, while still benefiting your family members in ways that align with their needs.

Retain Financial Confidence: Personal gifts don’t have to be large to be impactful. By gifting gradually, you can still support loved ones while ensuring your own financial stability. Small gifts over time add up, allowing you to stay in control of your financial situation.

3. Foster Financial Literacy and Responsibility

Model Good Financial Behavior: When you gift assets or funds, you have an opportunity to share the “why” behind the gift and provide financial insights. This can be particularly impactful for younger family members, who gain not only financial resources but also valuable lessons in financial planning and stewardship.

Encourage Long-Term Thinking: Helping loved ones achieve financial goals encourages them to think long-term. Whether it’s saving for a major life event or investing in their future, family gifting can help foster a mindset of responsibility and growth.

 

Charitable Giving: Making a Difference in Your Community

Gifting to charity allows you to support causes you care about and often brings financial perks that make it a wise part of any financial strategy.

1. Potential Tax Deductions for Qualified Donations

Reduce Taxable Income: Charitable contributions to qualified organizations are typically tax-deductible, reducing your taxable income and potentially lowering your overall tax bill. Check with your tax attorney for more information.

Offset Large Gains: If you’ve had a financially successful year and are facing capital gains, charitable contributions can help offset this. Donating appreciated securities like stocks not only benefits the charity but may also help you avoid capital gains tax on the appreciated value.

2. Align Giving with Your Values

Support Causes that Matter to You: Charitable giving allows you to make a tangible difference for the causes closest to your heart. Whether it’s education, health, environmental protection, or social justice, donations allow you to leave a lasting impact and directly influence the work you believe in.

Create a Legacy of Generosity: By setting up recurring donations or creating a donor-advised fund, you can ensure your support continues over time, even beyond your lifetime. This long-term commitment not only establishes a legacy but can also inspire future generations in your family to uphold similar values.

3. Flexible Giving Options for Different Goals

One-Time Gifts vs. Recurring Donations: Charitable giving is flexible. You can make one-time contributions or establish ongoing support that aligns with your budget. Recurring donations often allow charities to plan better and make long-term commitments to their work.

Use of Donor-Advised Funds: Donor-advised funds (DAFs) offer a tax-advantageous way to manage your charitable giving. By contributing to a DAF, you can claim a tax deduction in the year of the donation while distributing funds to charities of your choice over time, providing you with control and flexibility. Reach out to a Verde Advisor to open this type of account (advisory fees on this type of account do not apply).

 

Whether you’re supporting your family, contributing to charitable causes, or both, giving is a powerful way to make a meaningful impact. By incorporating these strategies into your financial plan, you can maximize the benefits of gifting while aligning your resources with your values and goals. And in the end, giving not only enriches the lives of those you support but also brings lasting fulfillment and peace of mind for you.

 

As a business owner, you’re likely consumed with the day-to-day operations of running and growing your company. But do you know what your business is truly worth? Regular business assessments and valuations aren’t just for those considering a sale; they are an essential tool for strategic planning, securing investments, and preparing for future transitions. Partnering with a consultant and financial advisor throughout this process can provide additional clarity and help you maximize the value of your business, both now and in the future.

Here’s why conducting regular business assessments and valuations while working with a financial advisor should be at the top of your priority list.

1. Strategic Planning for Growth

Knowing your business’s current value gives you a clear snapshot of where you stand today and opens the door for targeted strategic planning. It allows you to identify strengths and areas for improvement, whether you’re aiming to expand, enter new markets, or streamline operations.

A financial advisor can help you translate the valuation into actionable steps for growth. By analyzing the numbers, they can guide you in areas like optimizing cash flow, enhancing profitability, and ensuring your financials align with your long-term business goals. With their expertise, you can create a roadmap that helps elevate your business’s value over time.

2. Securing Investments and Financing

Whether you’re seeking to attract investors or secure loans, a current and accurate business valuation is often a key requirement. Lenders and investors want to know the value of your business to assess the potential return on their investment or loan risk. If your valuation is outdated, you could be missing out on opportunities to access the capital you need to grow.

By working with a financial advisor, you’ll not only have a credible valuation but also a trusted professional who can advocate on your behalf when dealing with investors or financial institutions. Your advisor can help craft a financial narrative that highlights your strengths and opportunities, making it easier to secure the funding you need to take your business to the next level.

3. Preparing for an Exit Strategy

No one wants to think about leaving their business, but preparing for an eventual exit is critical to securing the best possible outcome—whether you’re planning to sell, pass the business on to family, or merge with another company.

Regular valuations give you insight into your company’s readiness for a transition. They provide a benchmark to help you determine if your business is performing optimally or if adjustments are needed to increase value before an exit. A consultant and financial advisor can assist in preparing your business for a smooth transition by helping you understand tax implications, financial structuring, and potential pitfalls that could erode your business’s value.

4. Ongoing Financial Health Check

Conducting regular business assessments and valuations is like giving your business a regular financial health check. It ensures you’re not flying blind and helps you make informed decisions about the direction of your business. A valuation is a dynamic tool that reflects changes in your industry, economic conditions, and internal business shifts, offering a more holistic view of your company’s worth.

A financial advisor and business consultant can help interpret these changes, providing you with strategies to protect and grow your business’s value. From adjusting your business model to reducing risk, having these professionals as part of your team ensures you’re constantly moving in the right direction.

5. Maximizing Tax Efficiency

A valuation can highlight areas where you can increase tax efficiency. By analyzing the financials in detail, your advisor can identify ways to reduce your tax burden, improve cash flow, and take advantage of tax credits or deductions that you may not have considered.

For example, if you’re planning an exit in the future, an advisor can help structure the sale to minimize tax liability while ensuring you receive the maximum value from your business.

Unlock Your Company’s Full Potential

A regular business assessment and valuation isn’t just a one-time event—it’s a proactive step in safeguarding your business’s future. With the help of a team of professionals, you can unlock the full potential of your valuation, using it to make informed decisions that fuel growth, secure funding, and prepare for an eventual transition.

If you haven’t yet incorporated business valuations and financial advising into your routine, now is the time to start. These tools and partnerships can set you up for long-term success, ensuring that when the time comes to make a big move—whether it’s expanding, securing investors, or planning an exit—you’re ready to maximize the value you’ve worked so hard to build.

At Verde Capital Management, we know that every financial journey is unique, and we are committed to guiding our clients to their best financial future. But for us to serve you at the highest level, there are a few traits that help make our partnership truly successful. We’re proud to work with an exceptional group of clients who are committed to their financial well-being. Our clients all share these four common characteristics.

1. Open to Advice

Our clients value expert guidance. They understand that personal finance can be complex and are open to receiving insights that help them make the best possible decisions.

You’re the hero of your own financial story, and we serve as your guide—offering expert, thoughtful advice to help you make empowered decisions. Whether it’s navigating tax strategies or planning for retirement, you can trust us to provide actionable, informed, and personalized advice that helps you achieve your financial goals.

2. Goal-Oriented

Financial success doesn’t happen by accident—it’s driven by clear objectives. Our clients come with clear, meaningful goals that motivate their financial decisions. Whether it’s buying a home, saving for their children’s education, or ensuring a comfortable retirement, we will work with you to create customized roadmaps that outline each step of your financial journey.

3. Strong Savers

The foundation of any solid financial plan is a commitment to saving. Our clients know the importance of consistently setting aside funds for the future. They understand that today’s disciplined habits lead to tomorrow’s financial freedom.

We can help you optimize your savings strategies—whether it’s through tax-advantaged accounts, investment portfolios, or other vehicles—so you can build and protect your wealth over time.

4. Long-Term Thinking

We believe that a key ingredient for financial success is the ability to think long-term. Our clients understand that the journey to wealth and financial security is not about chasing short-term gains but about staying the course through ups and downs. This forward-thinking mindset allows them to make smarter, more informed financial decisions.

One of the most important aspects of long-term thinking is resisting the urge to make emotional decisions in response to market volatility. Markets fluctuate, and while short-term volatility can feel unsettling, our clients know that reacting impulsively—whether by selling off investments during a downturn or trying to “time the market”—often leads to missed opportunities and diminished returns. Instead, they remain focused on the bigger picture, trusting in the strategies we’ve put in place to guide them toward their financial goals.

We will work closely with you to develop a strong, diversified portfolio that is built to weather market fluctuations. By keeping emotions in check and sticking to a well-crafted plan, you’ll be able to take advantage of long-term growth opportunities while minimizing risk.

 

We understand that financial planning isn’t one-size-fits-all. That’s why we seek clients who are ready to take proactive steps toward securing their financial future. If you’re someone who values expert guidance, has clear financial goals, and is committed to long-term success, we are here to partner with you. Our mission is to educate you about your money, guide you to make balanced decisions so you can cultivate opportunities to grow towards your goals.