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The first half of 2025 has been challenging. We have seen turbulent equity markets, persistent inflation, and shifting trade policies. Even with the Fed on pause, we’re likely to see more volatility ahead. The recession threat has reappeared in headlines, and uncertainty around tariffs and rising rates remains.
Fortunately, there’s plenty you can control. A mid‑year review helps ensure every part of your financial plan is working toward your goals.
Start with the Basics- Your Budget
Prices are still elevated, and expenses often creep up unnoticed. Have you tackled any large purchases this year? Are there major expenses coming in the next six months? Even small lifestyle changes like a hobby or fitness routine can shift spending. Reassessing your cash flow now can preserve your emergency funds and keep savings on track.
Review Your Tax-Advantaged Savings
Contribution limits for 401(k)s and HSAs have increased in 2025. Are you on target to hit max contributions? If you're over 50, remember catch-up contributions can boost your savings even more—all pre-tax, offering immediate tax benefits.
What Are you Doing With Your Cash?
A standard savings account may no longer cut it. With short-term rates now between 4.3%–4.5%, consider switching excess cash to high-yield options like money market funds or a high yield savings account. This makes the most of the rate environment while keeping liquidity when needed.
How Are Your Investments Holding Up?
Markets have been especially volatile in 2025, with the VIX spiking above 50 earlier this year and ongoing uncertainty in both equity and bond markets. This level of turbulence can be unnerving—and it's a reminder that traditional stock and bond portfolios may not always provide the stability investors expect.
One way to help manage volatility is by incorporating alternative investments into your broader strategy. Depending on your situation, assets like real estate, private credit, or structured notes can offer diversification and potential downside protection that traditional markets may lack during turbulent periods. If market swings are making you uneasy, this could be the right time to explore options that help bring more balance and consistency to your portfolio.
The Bottom Line- We Can Help
Building flexibility now can protect you through uncertainty. A mid-year financial tune-up—adjusting budgets, strategizing cash flow, and rebalancing portfolios—can help you maintain course and advance toward your long-term goals.
Stratos Private Wealth is a division through which Stratos Wealth Partners, Ltd. markets wealth management services. Investment advisory services offered through Stratos Wealth Partners, Ltd., a registered investment adviser. Stratos Wealth Partners and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only; and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Investing involves risk including possible loss of principal. Some of the information contained herein has been obtained from third party sources which are reasonably believed to be reliable, but we cannot guarantee its accuracy or completeness. The information should not be regarded as a complete analysis of the subjects discussed.
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