The $trategist - Who Would Thunk It
Q3 2025
Who Woulda Thunk It?
Tom Wargin
At the time I am writing this, the U.S. government is shut down except for essential services. Based on that information, one might expect that the stock market would be dropping. But instead, it has actually gone up over the last week while the government has been shut down! Perhaps some people will remember that every other time shut down has happened in the past, the stock market has gone up by the time it was resolved. That is nearly 21 times under various administrations and different majority parties in Congress.
I’ll just agree with investment advisor Keith Fitzgerald’s view:
“Politicians have no skin in our game, so they continue to grandstand at our expense. Two can play that game: Why not dock their pay, strip ‘em of benefits, reduce healthcare to bare-bones urgent care only for as long as the government is shut down. Or, pull a JP Morgan and lock ‘em into the Congressional library until there’s a deal, like he did with bankers in the early 20th century to avoid a complete financial meltdown during the panic of 1907.”
Don’t let emotions and fear control your investment decisions. In order to keep ahead of inflation, you need to stay invested in line with your risk tolerance. We have always tried to be apolitical in our investment process, and it has served us well. Remember it is more important that your mantra be “time in the market” rather than “timing the market.”
Trying to time the market requires too many decision steps to be successful when just one wrong decision blows up your plan. Warren Buffett once said that every investor should be limited to 20 investment choices in their life and they would be better investors. That is why we try to limit the number of investments we make for you.
So, turn off the TV or podcast or YouTube talking heads and go outside and enjoy the day. I know, I will!
Kudos to Grant!
Shannon Nook, FPQP ™
We’re incredibly proud of our teammate, Granthem (Grant) Beck, for earning the prestigious CIMA® Certified Investment Management Analyst certification. His achievement reflects countless hours of diligent preparation and study, underscoring his deep commitment to excellence in investment management and wealth advising. This milestone not only showcases Grant’s expertise, but also reinforces our dedication to serving LFG clients with knowledge, integrity, and common sense —principles we continue to lead with and build upon.
Planning Notes
June Schroeder, CFP Board Emeritus®
Unprotected WifI
Unprotected Wifi Many restaurants and stores offer free public wifi. Cybercriminals often monitor these sites. Exercise extra caution if you use your credit card to purchase items while on a public wifi network. A cybercriminal may be able to steal your financial information
Annual Reminder: Check Your Credit Reports!
Get your free credit report from the three major credit bureaus each year at AnnualCreditReport.com, which is owned by the three and approved by the Consumer Protection Bureau, a U.S. government agency. This site allows you to verify that there are no unfamiliar financial actions on your account and helps protect your identity.
Familiar Online Stores
If you use online stores with known reputations and familiar names, the URL or online address should start with “https.” The “s” represents that the website has a security certificate.
Cash From Your Home
Cash-out home refinancing activity is on the rise according data from home loan data tracker ICE Mortgage Technology. The average “cash-out refinance homeowner” pulls out over $90k in home equity, increasing monthly payments and raising interest rates on home loans.
Estate Plans
Non-financial “assets” are often overlooked in the complex estate planning process. Things like not revealing login IDs, passwords, and individually-used credit cards can make it difficult for those left behind to get everything settled without extra stress.
Some people also pass on a written or recorded statement of their beliefs, values and how they tried to live their lives. Some add things they learned or did and for which they want to be remembered.
Electric vehicle sales reached a record 146,332 cars in August, setting an additional record of 9.9% of total vehicle sales, according to initial Cox Automotive estimates.
Client Alerts
Shannon Nook, FPQP ™
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Medicare Open Enrollment
October 15 to December 7, 2025
October 15 to December 7, 2025 This is your yearly opportunity to adjust or add plan changes. In September, LFG provided an educational session with independent Medicare agent Stephanie Wagner at wiscareins.com, paid for by the insurance companies. In addition, we utilize www.65-incorporated.com— offering one-on-one consultations, based on time, by Medicare experts who are not salespeople.
2025 Federal & Wisconsin Tax Law Changes That You May Qualify For
Most qualifications based on Adjusted Gross Income (AGI) or Modified AGI (MAGI)
Federal Changes
- Increased Cap on State & Local Real Estate Tax Deduction: New $40,000 deduction cap applies but phases out for AGI between $500,000–$600,000
- Bonus Senior Deduction: Taxpayers age 65 or older may qualify for an additional $6,000 deduction per person. These phase out gradually (6%) for MAGI between $75,000–$150,000.
- Residential Energy Credits: These expire after 12/31/25. Ensure that qualifying improvements are installed and approved before year-end to claim credits.
Wisconsin State Changes
Seniors Retirement Income Exclusion: Wisconsin taxpayers age 67 or older may exclude up to $24,000 per person from retirement income (IRA, pension, annuity), regardless of income level. Note: This exclusion may reduce eligibility for other state credits, including Wisconsin Property Tax Credit; Itemized Deduction Credit; Married Person’s Credit; Credit for Taxes Paid to Other States. If LFG prepares your taxes, these updates will be automatically incorporated into your 2025 tax planning and preparation. Otherwise, we recommend checking with your tax advisor to determine how these changes may impact your situation.