Authored by Jeff

This Week’s Market

This week, major U.S. stock indices faced minor downward pressure amid an extended tech selloff and fading expectations for a December Federal Reserve rate cut. Although the S&P 500 fell in early Friday trading, by midday the market had reversed and was up nearly a half a percent… making for a big intraday swing.

The Dow Jones Industrial Average also dropped at the open and subsequently reversed, while the Nasdaq Composite also turned positive after a three-day move down. Wall Street closed lower on Thursday as investors grew cautious ahead of the Fed’s meeting, with overseas markets also selling off a bit.

Trending Topics This Week

As the holiday season approaches, discussions on effective holiday spending strategies are prominent in financial circles. Experts recommend setting clear budgets early, prioritizing needs over wants, and using tools like cash-back apps to minimize post-holiday debt. With inflation still a factor, this focus helps maintain financial stability into the new year. Open enrollment for the Affordable Care Act is another key conversation, urging individuals to review plans for cost savings on health coverage.

This Week’s Ideas

• Leverage Health Savings Accounts (HSAs) beyond immediate medical needs by treating them as a retirement investment vehicle; contributions reduce taxable income, earnings grow tax-free, and qualified withdrawals in retirement are also tax-free, providing a powerful tool for long-term health care costs.
• Implement a Roth conversion ladder by gradually converting portions of traditional IRA or 401(k) funds to a Roth IRA over several years, managing annual tax implications while building a source of tax-free retirement income, especially useful if you anticipate higher tax brackets later.

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

If you’re not a client and have in-depth questions or want to learn if we can help, 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 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.

What a week! I jog down memory lane to visit the wild market ride from five years ago. At the end of the day, there are a lot of things to reassure us that our approach is the right one.

Read the entire article: Coming Downstairs in the Morning

Apparently, I’m more technically challenged than I thought I was.

You might have received an errant “newsletter” this week on Wednesday. This is the reboot of the weekly digest that I’ve sent out for many years. But, when I reactivated it on Wednesday, it picked up some old test articles and sent them out immediately.

Sorry about that… please ignore!

You are supposed to get our weekly digest on Sunday mornings. It’s a lighter read than a hard-hitting investment dissection and analysis.

I intend to write articles, investment commentary, and analysis from time to time. When I’ve written an article, it will be presented here as the first article in the weekly digest email rather than delivered separately to you through other means.

I have also been working on an investing series over the last couple of weeks, which discusses the new administration’s economic and cost-cutting policies. I have completed the last article in that series about how tariffs, policy directives, onshoring, government cost-cutting, and reducing or eliminating bureaucratic red tape could help to completely reshape our economy if enacted.

Let me know if you’d like a copy of that last report, and I will forward it to you directly.

Thanks, and happy Sunday and have a great upcoming week!

Jeff

A colleague mentioned the other day that investing in the current stock and bond markets felt a bit like being in purgatory. And you know what? It does seem a little like purgatory, where souls are believed to await their final fate.

Just as purgatory is often depicted as a place of reflection and penance, investors in a challenging market environment undergo emotional turmoil. Seeing investments not yielding expected returns, or being stuck in positions with no clear exit strategy, can be mentally exhausting.

Admittedly, comparing anything to purgatory is not my preferred analogy, but I see his point.

After a smallish rally earlier this year, the stock market has turned down about 8% over just the last two months leaving us with a tiny sliver of profit so far this year and it seems like nothing is happening now, nor will it anytime soon.

And the bond market? Fuhgeddaboudit.

But here’s my preferred analogy:

Imagine that you and I are in a sailboat together. She’s a beaut’; sleek, polished, and built from years of study and analysis of the science of sailing.

We’ve launched her and we’re all together in the boat. We’ve got the sails trimmed, the keel is at just the right depth, and the rudder’s set in exactly the right direction.

But, there’s no wind. And we can’t make it windy either. We’re just stuck staring at each other, waiting for something to happen.

So maybe we try to jiggle things about by changing the configuration of the boat and trying some other different things.

But that’s not the problem. The problem is the wind, or more accurately the lack of it. No amount of adjusting on our boat is going to make the wind blow.

The risk is that during our jiggling and retrimming, the wind starts to blow and we find ourselves out of position and unable to take advantage of our newfound wind. Or worse yet, we’re so out of position a strong gust capsizes us.

Better just to wait in the calm, staring at each other, knowing the wind will blow again someday.

It always does.

~ Jeff

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Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.

Information in this newsletter does not involve the rendering of personalized investment advice. A professional advisor (such as myself) should be consulted before implementing any of the options presented. No content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

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Roger Weller and I have known each other for about a couple of decades. For the past 10 or 15 years, I’ve been fortunate enough to have Roger as an advisor with JRSCM. He takes care of folks all up and down the Atlantic coast and has oodles of experience and knowledge of and about the business of planning and investing.

So, his comments are interesting and relevant to today’s market and drip of wisdom.

Hi everyone:

It’s been a while since we’ve discussed recent market activities with you, so we thought that you might like ourthoughts on the subject as recent markets have been so volatile lately. Remember our recent article on “Fear and Greed”? Yup, many investors get nervous and sell at market bottoms only to realize later that theyshould’ve been buying as markets generally go higher over time.

Old Fashioned Correction

The volatility you’ve been experiencing lately is really an old-fashioned correction. By definition, a correction is a 10% reduction to account balances after a solid increase was experienced in the markets.

Last summer, we had that increase that started in July and continued into the middle of August. A correction is a healthy situation as investors begin buying again once they realize that bargains are available.

Auto Strike

While its debatable as to whether a strike is good or bad, the economy can be affected by a decline in activity and Wall Street worries that such can disrupt the value of securities. The reduction in auto production will likely have a brief impact on investments, but long term our investments generally trend higher.

Potential Government Shut Down

Governmental legislative risk nearly always puts a drag on our portfolios, but once resolved, our markets heal rather quickly. Memories are most always short term, so selling should not be an option. Please don’t pay too much attention to the media as they just love to use a potential shut down to scare folks ….. just ignore them.

Interest Rate and Inflation Risks

Interest rates and inflation are like twins; one serves the other. The Fed just paused interest rates for the
second time since beginning their fight against inflation mainly because inflation has been slowing. So, despite their recent comments, the Fed is winning their war against inflation. But they still like to keep an oar in the water, so the mere thought of another interest rate increase caused the markets to drop again.

Summary

Please remember that the absolute worst time in the markets over the last 75 years has been the August –
October period, but the absolute best time has been the November – January period. Despite how you might feel about the markets today, the next few months should reflect much better performance
given the following:

• Companies have reported increasing sales and earnings all this year.
• People are still spending money on consumer goods.
• Interest rates have likely stabilized, which means inflation will be lower.
• All the above tends to cause markets to improve over time.

Thanks for trusting us with your business. It’s truly been an honor serving you.

~Roger Weller

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It’s been a while since everyone’s heard from me in this format. I’ve received a lot of feedback in the past about how much everyone enjoyed my occasional comments (Thank You!) as well as the new posts of articles that I’ve found of interest this week.

I’ve tried several other formats thus far this year (as I’m sure most of you are aware… sorry about that) and I’ve been less than impressed with the feel, the content itself, or just the general “impersonal” -ness of the communications. My bad all the way. Thanks for your patience.

And so I’m back! There’s so much that I read and want to share with everyone each week that I keep coming back to this “weekly-new-posts-with-occasional-comments-by-me” format.

I hope you like it.

And if you don’t, there’s always the link at the bottom of this and every issue to unsubscribe.

I expect that I will be consistently using this space to either make weekly comments about the articles that I’ve clipped, or maybe some machinations of interest in the financial markets.

So, these “lead posts” of our weekly content will likely be a substitute for the long-form types of newsletters that I’ve written in the past.

Thanks for sticking around and I hope you enjoy the future posts. ~jrs