2025 Client Update

I'm thrilled to share another successful year in our collective journey toward achieving your most meaningful financial goals. Our plan and portfolio remain firmly rooted in your objectives—steadfastly guided by your vision, not by the ever-shifting winds of economic forecasts or market predictions. This philosophy will continue to steer us into 2025 and beyond.

Let’s revisit the principles that anchor our approach and touch on a few highlights of the current economic and financial landscape.

Core Beliefs

• Long-term, Goal-Driven Investors: We focus on what truly matters—your goals—and invest in broadly diversified portfolios of high-quality businesses to get us there.

• No Crystal Balls Needed: The economy is unpredictable, and markets can’t be timed with any consistency. History shows the best way to benefit from equities' long-term returns is to weather their inevitable, sometimes sharp, but always temporary declines.

• Stick to the Plan: As long as your goals remain unchanged, our plan for achieving them will, too. We don’t react to market noise—we’re here to stay the course.

A Look at 2024

• Equity Market Performance: The past year brought exceptional returns for diversified equity investors, thanks to standout performance from a handful of major tech companies. Encouragingly, the market began to broaden out as the year closed—a trend we welcome.

• Economic Resilience: The presidential election brought clarity, the job market showed signs of cooling (a healthy response to tighter monetary policy), and corporate earnings and dividends reached record highs, with more growth anticipated in 2025.

• Valuations and Perspective: While some worry the market may be a bit overheated, we know better than to use valuations—or anything else—as timing tools. The key is to stay focused on the plan.

• Inflation’s Staying Power: Inflation isn’t vanishing anytime soon. Fed Chair Powell’s December remarks reminded us of this, and while the market didn’t love hearing it, we view it as a necessary reality check.

• Consumer Strength: Despite fiscal challenges at the national level, consumers remain in excellent shape. Household debt service ratios are near 40-year lows, showing financial resilience in surprising ways.

Looking Ahead

It’s worth noting that the equity market has delivered approximately 16% annualized returns since the March 2009 lows—a remarkable run. While it’s unreasonable to expect this pace indefinitely, we don’t need it to continue at such a clip. Our plans assume a more measured, historically grounded return of around 6% annually, which aligns with our long-term expectations.

A Heartfelt Thank You

As we step into 2025, I want to extend my warmest wishes for a happy, healthy, and prosperous year ahead. To me, my clients are more than just clients—you’re part of my extended family. Thank you for trusting us with your financial journey. It’s an honor to serve you, and we’re always here to answer questions or provide guidance whenever you need.

Here’s to another year of progress, resilience, and working together to make your financial dreams a reality.

PS : I want to take a moment to express my heartfelt gratitude to my clients for introducing me to your friends and family throughout the year. These introductions are one of the greatest compliments I could receive and a responsibility I take very seriously. Thank you for placing your trust in me—it’s an honor I will never take lightly.