The Means AND the Ends

This Week’s Market

Stocks faced headwinds this week amid economic concerns, leading to notable declines across major indexes. The Nasdaq Composite dropped about 2.8%, marking its worst weekly performance since April. The S&P 500 fell over 1.7%, while the Dow Jones Industrial Average slipped around 0.5%. Tech stocks led the weakness, with markets opening lower on Friday as investors assessed ongoing uncertainties.

We continue to emphasize a long-term outlook for all investments, especially stocks. Volatility like this past week is the name of the game from time to time and provides a natural reset or rest, a critical function for market health.

Trending Topics This Week

One prominent discussion in financial news centers on the 2026 Social Security cost-of-living adjustment (COLA). Set at 1.4%, this modest increase reflects cooling inflation but has sparked conversations about its adequacy for retirees facing rising healthcare and living costs. Analysts note it aligns with broader economic stabilization efforts.

This Week’s Ideas

• Qualified Charitable Distributions (QCDs): For those over 70½ with IRAs, direct QCDs to charities can fulfill required minimum distributions without adding to taxable income, potentially lowering Medicare premiums.
• Asset Location Optimization: Place high-growth investments in Roth accounts and income-generating assets in tax-deferred ones to minimize lifetime taxes, a strategy often overlooked in portfolio reviews.

If you have questions or comments, reply directly to this email—I read all responses. You can also call or text our office at 480-575-7688.

If you are not a client and have in-depth questions or want to explore how we might assist you, book a Discovery Call.

The information on our website and this blog is for information purposes only. It is believed to be reliable, but JR Snell Capital Management does not warrant its completeness or accuracy. The information on our website and in this newsletter or blog is not intended as an offer or solicitation for the purchase of stock or any financial instrument.

This week’s stock market had major indices achieving fresh all-time highs amid a mix of positive earnings and economic data.

Key drivers included better-than-expected third-quarter earnings beats from S&P 500 companies, with 85% exceeding EPS estimates, and softer CPI inflation figures that came in below forecasts. Investment trends remain centered on technology and AI, supported by resilient corporate profits, though broader market breadth suggests healthy participation across sectors.

As I suggested last week, the federal reserve lowered interest rates by 0.25%. This leaves our cash reserves accounts yielding 3.45%. This is still better than many competing cash reserves accounts, but brings into question the whole idea of maintaining significant reserves in the first place. Cash reserves are primarily intended as short-term parking places, but given their recent relatively attractive rates, some folks have parked longer term funds in these instruments. Now that the rates on these accounts have dropped below longer-term alternatives, it might be time for many to reach out to consider other ideas. If you think you’re one of these people, feel free to reply to this email… I’ll get the reply and respond as quickly as practicable.

One financial planning topic currently discussed in the news and on social media is the emphasis on health-related considerations in retirement strategies, particularly during National Financial Planning Month this October. Conversations highlight the need to account for potential medical expenses, long-term care options, and insurance integration to maintain financial stability in later years. This approach helps ensure that healthcare needs do not erode savings unexpectedly.

Although we don’t sell insurance products, if we discover the need for them with you, we have our “people” that will guide you in the right direction.

Financial Planning Hacks of the Week

For investors approaching retirement within the next 5 to 10 years or those already retired, here are a couple of lesser-known strategies to consider:

• Leverage Qualified Charitable Distributions (QCDs): If you are 70½ or older and subject to required minimum distributions (RMDs) from your IRA, directing up to $100,000 annually to qualified charities via QCDs can satisfy your RMD while excluding the amount from taxable income. This can be particularly useful for maintaining lower tax brackets and supporting causes you value without additional out-of-pocket costs.
• Strategic Roth Conversions in Transitional Years: In years when your income is lower—such as during a career transition or early retirement—converting portions of traditional IRA funds to a Roth IRA can minimize future taxes on withdrawals. By paying taxes on the conversion at current rates, you position tax-free growth for the long term, which is especially beneficial if you anticipate higher tax brackets later due to RMDs or other income sources.

If you have questions or comments, please reply directly to this email—I read and respond to all of them. You can also reach out by calling or texting our office at 480-575-7688. If you are not yet a client and would like answers to in-depth questions or to learn whether we can help with your situation, consider booking a Discovery Call

The information on our website and this blog is for information purposes only. It is believed to be reliable, but JR Snell Capital Management does not warrant its completeness or accuracy. The information on our website and in this newsletter or blog is not intended as an offer or solicitation for the purchase of stock or any financial instrument.

Market Update from the Past Week (October 17-24, 2025)

Equity markets demonstrated steady performance amid ongoing earnings reports. On October 17, major indices closed positively, with the Dow Jones Industrial Average rising 238 points (0.52%), the NASDAQ Composite increasing 117 points (0.52%), and the S&P 500 advancing 35 points (0.53%).

This upward movement reflects continued corporate strength in key sectors. Additionally, anticipation builds for the Federal Reserve’s policy meeting scheduled for October 28-29, where a potential interest rate adjustment is under consideration, which could influence fixed-income strategies. Such developments highlight the value of diversified holdings in navigating economic signals.

The fed has hinted that it might decrease interest rates once or twice more this year, so stay tuned.

Financial Planning News

I didn’t know this (duh?), but October marks Financial Planning Month. News outlets underscored the need for comprehensive preparation. A U.S. Bank report noted that only 37% of non-retired adults are actively planning for retirement, while 58% feel confident in their savings—prompting calls for enhanced budgeting and goal-setting.

Surveys indicate affluent investors increasingly prioritize advisors who incorporate tax planning into investment strategies, fostering more integrated approaches to wealth preservation. These discussions encourage regular reviews to align plans with personal circumstances.

We are actively increasing our collaboration with the tax advisors that we use, as well as the tax advisors that each client might use. If we haven’t had a conversation with your tax advisor (CPA et al), we’d love the introduction and the opportunity to collaborate in real time with them on your behalf.

Lesser-Known Financial Planning Strategies

Consider these specialized techniques to refine your approach, particularly useful for optimizing resources in later career stages or retirement.

1. 401(k) Super Catch-Up Contributions: For individuals aged 60-63 in 2025, employer-sponsored plans allow an additional “super” catch-up contribution of up to $10,000 beyond standard limits, potentially totaling $33,500 for the year. This provision can accelerate savings growth tax-deferred, aiding those bolstering nest eggs in the final pre-retirement years.
2. Optimizing Tax Withholding for Efficiency: Adjust your paycheck or retirement distribution withholding to match actual tax liability, avoiding underpayment penalties while freeing up cash flow throughout the year. This subtle adjustment can prevent surprises at tax time and improve liquidity for investments or expenses.

If these strategies resonate or raise questions, we invite you to contact JR Snell Capital Management for tailored insights.

The information on our website and this blog is for information purposes only. It is believed to be reliable, but JR Snell Capital Management does not warrant its completeness or accuracy. The information on our website and in this newsletter or blog is not intended as an offer or solicitation for the purchase of stock or any financial instrument.