At Whitaker-Myers, we build our portfolios using the simple framework made famous by Dave Ramsey : Growth, Growth & Income, Aggressive Growth, and International. Technically, it becomes more complicated and requires a significant amount of brainpower from individuals like our Co-Chief Investment Officer, Summit Puri , and our investment committee, which is involved in portfolio construction and asset allocation (the process of distributing investments). However, the four-category model serves as a framework that keeps investing understandable and disciplined. One of our most-read articles ever was written by Logan Doup , titled "Understanding Dave Ramsey's Four Categories of Investing. " We also did a video that was quite popular; you can watch it here . Within this framework, Aggressive Growth is where we seek companies with the potential to grow faster than the rest of the market. In our terms, this generally refers to mid-cap and small-cap stocks—the younger, smaller businesses that still have a lot of room to grow. But here’s the challenge: true small-cap investing is getting harder and harder to find. And it’s not because those companies don’t exist—it’s because many of them are staying private longer, thanks to all the capital flooding into private equity. Think about our friend Elon Musk. Tesla is publicly traded, and many of you are likely invested in it individually or through your retirement fund. For example, the Invesco QQQ (ticker: QQQ or QQQM) currently holds Tesla as its 8th largest holding, accounting for 2.75% of the portfolio. The Vanguard S&P 500 (ticker: VOO) currently holds it as its 10th-largest holding at 1.61%. But how many of your funds are invested in SpaceX? The Boring Company? Neuralink Corporation? X? Xai? SolarCity? Of course, you aren't invested in any of those, more likely because they are still raising the capital they need in the private markets. One could argue that those are the companies under Elon's control that you would want to invest in. Their hypergrowth is happening right now - not when they go public, even though growth will likely still exist after an IPO. Why the Shift? According to research from Marquette Associates, which can be read here , private markets have exploded over the last two decades. Private equity firms have raised massive amounts of “dry powder” (investable cash) and are funding businesses through multiple stages of growth. The average Series D round of funding has grown from about $50 million in 2014 to nearly $200 million in 2024. That’s money that used to require going public through an IPO. Today, these companies can scale, grow, and dominate markets without touching the public exchanges. This trend has significant consequences for investors like us. The number of publicly listed U.S. companies has been cut nearly in half since 1996, while the number of private equity–backed companies has swelled to over 11,000. Many of the high-quality, innovative firms that would once have been today’s small-cap darlings are instead maturing behind closed doors in private markets. By the time they IPO, much of that explosive “aggressive growth” has already been captured by private investors【Marquette Associates】. The number of private equity companies has vastly increased since the early 2000s Defining Aggressive Growth at Whitaker-Myers At Whitaker-Myers, when we talk about Aggressive Growth, we mean exposure to both mid-cap and small-cap stocks. Because of the challenges in the small-cap space, we generally allocate about half of this category to mid-caps. Why? Because mid-caps have been less affected by the private equity boom. They still offer tremendous upside, and the roster includes names like: Invesco Ltd. (IVZ)  – a global investment management firm with scale and growth potential in asset management. Smithfield Foods (SFD)  – a leading food producer that recently IPO’d, showing how mid-sized companies can still thrive in public markets. These are the types of companies that embody aggressive growth—still climbing, still innovative, but with proven business models. Small caps, on the other hand, have had a tougher run. The Russell 2000 has underperformed the Russell 1000 in 10 of the last 11 years【Marquette Associates】. Some of that is due to quality—over 40% of Russell 2000 companies are currently non-earners. However, a significant driver is that many of the best small companies never reach public markets, instead remaining private. Since 1988, outside of the tech bubble and the 2008 GFC, large caps have tended to outperform publicly traded small caps iCapital has also done some nice research in this space. According to their article, "Private Equity Can Add Diversification to Your Public Index Holdings" , they cite that private equity has invested $2.1 trillion in the U.S., and as you can guess, most of that is going to what once were small and mid-sized publicly traded companies. To put $2.1 trillion into perspective, they remind their readers that the average value of the entire Russell 2000, which is about 40% of all U.S. public companies, was $2.5 trillion over this same time period. So, yes, private equity is coming, and it is not going anywhere. The reason for investing in small-cap stocks is certainly diversification. However, you also aim to achieve optimal performance from that diversification. As illustrated in iCapital's chart below, the Preqin Private Equity Index has surpassed both major aggressive growth benchmarks in both the short and long term. Given the emphasis, funding, and inclination to remain private longer, our investment committee doesn’t anticipate a change anytime soon. However, as you’ll read below, one of our top partners believes that small caps have potential for growth. Private Equity has outperformed the Russell 2000 and S&P 600, both of the major indexes for small caps. Tom Lee’s Bullish Case for Small Caps Even with all these headwinds, there’s still reason for optimism. Our research partner, Tom Lee at FS Insights, has been vocal that small caps may be on the verge of a comeback. Why? Because they’ve been beaten down for so long. Historically, when an asset class underperforms this severely—such as small caps against large caps for more than a decade—it sets the stage for mean reversion. In other words, the pendulum eventually swings back the other way. With valuations for high-quality small caps looking attractive, Tom Lee argues that the next big run in the market could be led by small-cap stocks. What This Means for Investors Does this mean aggressive growth is dead? Not at all. However, it does mean we have to be more strategic about where we find it. Mid-caps remain a sweet spot.  They provide the innovation and growth we look for, with less risk than the most speculative small caps. Small caps still have a place.  While the universe has shrunk, valuations are more attractive, and mean reversion suggests a small-cap revival is possible. Private equity has changed the game.  A portion of what used to be “public aggressive growth” has migrated to the private side. Investors need to understand this dynamic, even if they don’t directly invest in private equity themselves. The Bottom Line At Whitaker-Myers, we believe in keeping investing simple, disciplined, and long-term focused. Aggressive growth still plays a vital role in building wealth over the long term, but the playing field has shifted. With companies staying private longer, the small-cap universe looks different from what it did a generation ago. That’s why we balance our aggressive growth allocation between mid-caps and small-caps, and for appropriate investors, even private equity—capturing the best of both worlds while staying true to the time-tested principles that have helped families build wealth for decades. Should you consider private equity as a replacement or a complement to your small-cap exposure? That is only a question you and your financial advisor can answer together. One thing to keep in mind is that many private equity strategies still require a minimum level of net worth, income, or investment assets, as you are investing in an asset class that differs significantly from a public investment, most notably in terms of access to liquidity from the investment. If you wonder if this is the right step for you, please contact your Financial Advisor today. Because at the end of the day, investing isn’t about chasing fads—it’s about owning great companies, sticking with your plan, and letting time and compound growth do the heavy lifting.

As July turns its final pages, many parents and students find themselves opening the next chapter—August. For many families, August means back-to-school preparations, from shopping for supplies and clothes to soaking in the last days of summer. It also marks the beginning of fall sports, new routines, and, for some, the major milestone of heading off to college for the first time. Beyond the Dorm Checklist For parents and students gearing up for freshman year, it’s easy to focus on dorm room essentials—and while that’s an important part of the process, now is also the time to finalize the critical paperwork. Be sure to: Confirm tuition amounts, payment plans, and any financial aid awarded Submit medical and immunization records from your current healthcare provider Review and update health insurance coverage These foundational tasks ensure your student starts college on solid ground. Conversations That Matter For many students, this will be their first experience living independently. Now is the time for meaningful conversations that go beyond logistics, especially around health care and finances. Start with insurance: Help your child understand what their coverage includes, how to seek care, and which questions to ask in a medical situation. Then, take time to cover the basics of budgeting—a financial skill that can positively influence their entire college experience. At Whitaker-Myers Wealth Managers , we take budgeting seriously. In fact, we have a   full-time financial coach  dedicated to helping individuals build sustainable financial habits, no matter their age or income. Teaching students to budget goes beyond preventing overspending. It encourages healthier eating, intentional spending, and reduces mental and emotional stress, especially in a season that can feel overwhelming. Open dialogue about the emotional transition is just as vital. Let your student know it’s okay to feel nervous, uncertain, or even homesick. Creating a safe space for these conversations now helps them navigate challenges later. College Costs and the Emotions Behind Them Money and emotions are often intertwined, especially when making decisions about college and a child’s future. As Dave Ramsey enthusiasts, we don’t typically recommend student loans as a first option, but we recognize there can be exceptions when handled strategically. The newly passed One Big Beautiful Bill Act  brings significant changes to the landscape of college financing. Among its key updates: New borrowing caps Elimination of income-driven repayment options for Parent PLUS loans Recommendations for existing borrowers to reevaluate their plans These shifts make it even more important to have a thoughtful and informed financial strategy. A Smarter Path to College Planning Paying for college can be confusing and stressful without a plan. That’s why we’ve partnered with Collegiate Funding Solutions  to deliver a forward-thinking, student-centered approach to college planning. Earlier this year, we hosted an exclusive webinar packed with valuable guidance to help students and families reduce or even eliminate reliance on student loans. Interested in a free college planning consultation ? Reach out to Tim Hilterman  today and mention this article in the “Comments” section when scheduling. You can also begin by submitting your student’s information through the College Planning Report . The Bottom Line Being a first-time college student—or parent of one—is a big deal. The stress, the planning, the emotions—it’s a lot. But the journey is also exciting, transformative, and full of opportunity. By being prepared—through paperwork, financial planning, and meaningful conversations—you help ensure that the transition from home to campus is not just manageable, but memorable for all the right reasons. If you're unsure where to start or want to learn how the One Big Beautiful Bill Act  may affect your finances, don’t hesitate to connect with your financial advisor  today.

In nearly every client conversation I have, the topic of taxes inevitably arises. Regardless of political affiliation, one thing is clear: most people don’t feel great about how the federal government manages its budget. A common sentiment I hear is, “I listen to Dave Ramsey, and he says we shouldn’t be giving the government more of our money than we have to. A big tax refund isn’t a gift—it’s a sign something’s off.”   And they're right to question it.   Let’s clarify something: a tax refund isn’t the government being generous. It’s simply the IRS returning money you overpaid throughout the year—money that could’ve been in your pocket instead of sitting, interest-free, with Uncle Sam.   So, how do you stop giving the government more than you owe and keep more of your paycheck? We begin with the most important financial document most people overlook: your paycheck.   Breaking Down Your Paycheck Your paycheck is more than just the amount deposited in your account—it’s a map of where your money is going. Let's walk through the major sections:   Earnings This is your gross income before any deductions. If you're paid hourly, you'll see a breakdown of hours worked and any overtime. For salaried employees, the amount is typically fixed. You’ll also see a Year-to-Date (YTD) column showing cumulative earnings.   Think of this as your “pre-tax” pay—what you technically earn before anything is taken out.It might even make you say, “Gross! That’s how much I should be taking home?”   Pre-Tax Deductions These are contributions you make before taxes are calculated, reducing your taxable income.   Common examples include: 401(k) EE (Employee Contribution - Pre-tax) HSA (Health Savings Account)   Here’s where strategy comes in. If you're in the 22% tax bracket, and you contribute $125 to your 401(k) and $125 to your HSA, you reduce your taxable income by $250, saving $55 in federal taxes, plus  Medicare and Social Security tax savings.   Taxes This section outlines how much you’re paying to various levels of government. Federal Income Tax – Based on your income and filing status. This is the tiered system, with rates of 10%, 12%, 22%, 24%, and so on . Federal Medicare Tax (Fed Med/EE) – 1.45% of your income, with an additional 0.9% for high earners. Social Security Tax (Fed OASDI) – 6.2% up to a wage cap ($176,000 for 2025). State or Local Taxes – Varies depending on your location.   Employer-Paid Benefits This section reflects the benefits your employer pays on your behalf. Common items: Health, Dental, Vision Insurance Life and Disability Insurance 401(k) Employer Match These don’t reduce your paycheck directly but represent part of your total compensation.   After-Tax Deductions These deductions happen after taxes are applied. They include: Roth 401(k) Contributions  – You pay taxes now, but your growth is tax-free. Insurance premiums (if not paid pre-tax) Pro Tip: If possible, pay for life and disability insurance with after-tax dollars. This ensures that if you ever need those benefits, the payout is tax-free.   Net Pay This is the bottom-line number—what you actually take home. It’s what hits your bank account and what you live on.   Case Study: Bill and Brenda Let’s meet Bill and Brenda, a married couple with two kids living in Florida (no state income tax). Brenda stays home, and Bill earns $110,000/year, paid biweekly. He has a high-deductible health plan and contributes the maximum family amount to his HSA.   Biweekly Pay Breakdown: Item Amount Gross Pay $4,230.76 HSA (Pre-Tax) -$328.84 Taxable Income $3,901.92 Federal Tax (12%) -$468.23 Medicare -$56.57 Social Security -$241.91 After-Tax Deductions -$1,169.61 Net Pay $1,965.60   Bill’s take-home pay is $1,965.60 every two weeks, or $51,105.60 per year. However, here’s the issue: when Bill files his taxes, he discovers that he overpaid by $7,050. He only owed about $5,123, yet withheld over $12,173.   That $7,000 refund isn’t a reward—it’s a loan you  made to the government, without interest.   The Fix: Adjust Your Withholding In Bill’s case, that refund represents an opportunity missed. He could have increased his biweekly take-home pay by $271, or $542 a month—a significant amount for saving, investing, or paying off debt.   The solution? Talk to your payroll department to adjust your federal withholding. Then, consult with a tax professional to ensure your new withholding accurately reflects your personal situation, considering your income, dependents, deductions, and filing status.   At Whitaker-Myers Wealth Managers , our in-house CPAs and knowledgeable financial advisors  work closely with clients to fine-tune these numbers.   Final Thought You work hard for your paycheck—don’t give the government more than you owe. A better understanding of your paycheck can help you make more informed financial decisions, retain a larger portion of your income, and align your taxes with your objectives.   If you're ready to take more control over your finances, schedule a conversation with a financial advisor or tax professional  today. Let’s make your money work smarter—starting with your paycheck.

Understanding the features  of Exchange Traded Funds   as benefits  to help you build wealth.   ETFs Are Trending A recent headline in Baron’s weekly publication caught my eye: “ ETFs Are Eating The World.  How to Invest .” Ian Salisbury does a fantastic job describing the recent uptick in ETFs.  For example, he notes that there are now 4,000 ETFs listed on the New York Stock Exchange, compared to a mere 2,400 individual stock listings.  Many of our clients at Whitaker-Myers Wealth Managers  already have included some exposure to ETFs in their portfolios—nothing new for our firm.    However, some things are changing on the ETF landscape that are worth taking another look at.    To get you in the spirit, here is a short limerick I found on the topic:   “An investor who feared a big flop, Found ETFs right there in the shop.“They’re cheap and they spread, Won’t tax me,” he said, “Now I’m rich—and I barely did squat!”   Who doesn’t love investment-themed poetry!?    Understanding Features As Benefits In the finance industry, there is usually too much noise and not enough signal for the casual investor to understand, let alone care. When I am speaking with clients, I try not to just simply explain what something does. Instead, I try to highlight the benefit to the client of an investment strategy or product.  Here are some of the key features and advantages of ETFs:  Feature Description Benefits to Investors Diversification ETFs typically hold a diversified portfolio of securities across various sectors, indexes, or themes. Reduces individual stock risk and improves portfolio balance Liquidity ETFs trade throughout the day on exchanges like stocks (unlike mutual funds) Easy to buy and sell at market prices during trading hours Low Cost Generally lower expense ratios compared to mutual funds Helps keep more of your investment returns Transparency Holdings are usually disclosed daily Investors always know what they own Tax Efficiency Creation/redemption process often limits taxable capital gains distributions. Potentially lower tax bills compared to mutual funds Small Minimum Investment You can buy as little as one share of the ETF Easy to start investing even with limited capital   How ETF Benefits Help Build Wealth Diversification By owning an ETF, you spread your money across many different stocks or bonds instead of just one. This reduces the risk of a big loss if a single company or sector performs poorly. It helps create a more stable long-term portfolio.   Liquidity Because ETFs trade on exchanges like stocks, you can buy or sell them at any time during market hours. This makes it easy to respond to market changes or access funds quickly if needed. You don’t have to wait until the end of the day like with mutual funds.   Low Cost ETFs generally have lower annual fees compared to actively managed funds. Over time, these cost savings can accumulate and enhance your overall returns. Keeping expenses low is one of the most reliable ways to improve investment outcomes.   Transparency Most ETFs publish their holdings every day, so you always know exactly what you own. This allows you to make informed decisions about your investments. There are no surprises about where your money is allocated.   Tax Efficiency The unique way ETFs are structured helps reduce the likelihood of taxable capital gains distributions. This means you may owe less in taxes each year compared to some mutual funds. Keeping more money compounding in your account helps grow wealth faster.   Small Minimum Investment You can start investing in ETFs by purchasing just one share, which often costs much less than buying all the underlying assets individually. This makes it accessible even if you have limited funds. It’s an easy way to begin building a diversified portfolio right away.   New Benefits In The ETF World  In my opinion, the “newest” benefit of ETFs developing over the last couple of years is the democratization and liquidity of previously restrictive (and expensive) asset classes like Private Credit, and the particular value of diversification among emerging asset classes that are innovative and disruptive, like Cryptocurrency.   Previously, investors seeking access to higher-yielding fixed income alternatives had to qualify for an asset class known as Private Credit by meeting specific income or net worth requirements.  Private Credit markets pay a higher yield on bonds than publicly traded corporate or government bonds.  Due to the way an ETF is structured, the fund is the entity that meets the minimum qualifications, and investors in the fund can purchase shares of the fund without individually qualifying, making the purchase of these asset classes  more accessible.   Cryptocurrency is a growing asset class, but is off-putting to many conservative investors.  Whenever a new technology emerges, there are always fewer long-term winners than losers.  However, the winners win big (consider Amazon, the world’s largest retail marketplace company).  Therefore, investors interested in incorporating cryptocurrency into their portfolios may feel uncertain because they lack confidence in selecting among Bitcoin, Dogecoin, Ethereum, and other options.  Finding the right crypto ETF could be a perfect way to introduce this asset class to a portfolio with diversified risk by spreading the fund’s investments among various cryptocurrency players.  Additionally, the price of owning a single Bitcoin is comparable to owning a Tesla Cybertruck, making a crypto ETF a potentially better fit for the everyday investor.   ETF Wrapper In summary, ETFs have become an essential tool for investors seeking diversification, cost efficiency, and access to innovative asset classes that were once out of reach. Whether you’re just beginning to build wealth or looking to refine an existing portfolio, the range of ETFs available today makes it easier than ever to customize your investments to fit your goals and risk tolerance. As the market evolves, ETFs are likely to continue expanding their role, offering everyday investors the opportunity to participate in new strategies, sectors, and technologies with the same simplicity and transparency that have fueled their remarkable growth.  If you would like to learn more about which investments fit your needs, you can reach out to a financial advisor today.

Timeless Wisdom One of my favorite investors of all time, Peter Lynch, who ran the famous Fidelity Magellan fund in the 70s and 80s and averaged 29%, said famously, “ If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes", which means when investing focus on what you are buying, your risk tolerance, your timeframe and IGNORE THE NOISE! This is good advice. I know I have written about this previously, but it cannot be said enough: do not change your investment strategy based on the economic outlook. Stay the course. And for what it’s worth, Peter Lynch’s Magellan fund doubled the performance of the S&P 500 while he managed it.     A Look at the Numbers: 2025 Mid-Year Returns With that being said, overall returns have been volatile, but they have been good. As of the writing of this article, the S&P 500 is up 8.1%, the Nasdaq is up 9.1%, the Dow Jones is up 5%, the Russell is up 2.3% and MSCI EAFE is up 20%. We experienced some volatility earlier in the year due to potential tariff implementations . MSCI EAFE, or international stocks, has been the most significant contributor to returns this year. This is a welcome phenomenon because international returns have significantly lagged domestic returns for more than a decade. The Russell 2000 has again lagged larger US stocks; this is not a new trend. The Russell had a huge boom post-COVID in 2020, rolled over, and had a terrible 2022, sluggishly fighting its way back ever since. We have not given up on our small-cap friends. A tailwind for small-cap stocks could be lower interest rates, but again, we have no idea when, or if, the Fed will lower rates.   Large-cap growth has again been driven significantly by large-cap tech names; Nvidia, Microsoft, and Facebook have done well, but not all names have participated. Apple is down 14% and TSLA is down 20% or more—another reason to diversify.   Long-Term Focus, Long-Term Gains Overall, our strategy remains unchanged; we believe in diversification and a long-term approach to investing. Volatility is the price that investors pay for good returns. There will be ups and downs along the way, but that is normal.   If you would like to discuss your portfolio further or review your financial plan for the remainder of the year, please reach out to your financial advisor today to schedule a meeting. They can help answer questions and discuss strategies to help you reach your financial goals.

Diversifying your portfolio is a fundamental principle of smart investing, and real estate can play a powerful role in that strategy.  Like our friend, Dave Ramsey , Whitaker-Myers Wealth Managers believes that real estate could make sense in your portfolio.    Unlike stocks and bonds, real estate  could be an alternate way of generating a unique blend of income generation, appreciation potential, and tax benefits—all of which can strengthen your overall financial position.   Real Estate as a Source of Passive Income One of the main reasons investors turn to real estate is for passive income. Rental properties, especially in stable or growing markets, can provide a consistent monthly cash flow that supplements income from more volatile sources, such as equities. This steady income can be especially valuable during economic downturns or retirement.   Additionally, real estate has the potential to appreciate in value over time, particularly in areas experiencing population growth, economic development, or a limited housing supply. While markets fluctuate, long-term trends in real estate generally show upward movement, making it a reliable store of value.   Real estate also offers important tax advantages. Through depreciation, mortgage interest deductions, and the ability to defer capital gains through strategies like 1031 exchanges , investors can often reduce their tax burden. These incentives enhance the after-tax return on investment compared to other asset classes.   More Control Over Your Investment Furthermore, real estate tends to have a low correlation with stocks and bonds, which helps reduce overall portfolio risk. During periods of financial market volatility, real estate can provide a buffer, contributing to a more balanced and resilient investment strategy.   Finally, for investors seeking greater control, real estate allows for active management decisions—such as choosing properties, setting rents, and implementing improvements—that can directly impact returns.   A Personalized Approach to Real Estate Investing While real estate does come with risks, such as illiquidity, tenant issues, and market cycles, thoughtful planning and due diligence can help mitigate them. For those seeking to build wealth, diversify their income streams, and gain exposure to tangible assets, adding real estate to their investment portfolio can be a smart and strategic move.   There are many types of real estate, and various ways to invest in real estate. Therefore, be sure to consult with your Financial Advisor to discuss what might be best for you.

Why an Income Floor Is the Foundation of a Secure Retirement This article is for anyone who doesn’t have a clear plan for where their retirement income will come from to cover monthly expenses, or for those already drawing Social Security benefits but feeling stretched to make ends meet. Planning your cash flow in retirement is crucial, and one of the best ways to do that is by understanding and establishing your income floor . What Is an Income Floor? An income floor  refers to the minimum amount of reliable income you should aim to receive each month in retirement to cover your essential living expenses —things like housing, utilities, groceries, and medical costs. The most common income sources used to build this floor include: Social Security benefits Pension income Dividends from bonds or dividend-paying stocks Having a predictable monthly cash flow provides peace of mind and financial stability. It also helps protect your investments from being sold during market downturns, thereby reducing your sequence of returns risk —the risk of poor investment returns early in retirement negatively impacting your long-term finances.  Different Streams of Income While Social Security is a foundational income source for most retirees, it often is not enough on its own to support your whole lifestyle. That's why it’s essential to establish multiple income streams. These might include the following: Pension payments Dividend income Rental income Part-time work Annuity income   These supplemental income sources provide flexibility and security, enabling you to maintain your desired standard of living throughout retirement . For those nearing or already in retirement who feel behind, some of these options may no longer be viable. In that case, part-time work would be the most practical and immediate way to boost your monthly cash flow and reduce financial pressure.   Building a Budget to Match Your Income Floor Your income floor is only meaningful if you know what it needs to support, which means having a solid budget in place. Understanding your monthly and annual expenses  allows you to determine whether your guaranteed income is sufficient or if you’ll need to rely on savings or other sources to close the gap. If you do not yet have a budget in place, I strongly recommend reading the following article by Lindsey Curry on building a ‘zero-based budget’  or scheduling a consultation with one of our financial advisors , who can help you create a customized plan.   Final Thoughts Knowing where your retirement “paycheck” will come from and ensuring it is enough to meet your needs is one of the most powerful steps you can take toward long-term financial peace of mind. An income floor provides the foundation. From there, you can build a retirement strategy that is both secure and flexible.

The Ohio legislature passed its budget bill for the next 2 years that will bring Ohio’s income tax to the 2nd lowest state income tax in the country (behind North Dakota) among the states that have an income tax.    What’s Changing in 2025 and 2026 Effective in 2025, the tax rate for income earned over $100,000 will drop from 3.5% to 3.125%.    The progressive tax system Ohio has had for many years will have the lower two brackets remain unchanged—0% for income under $26,050 and 2.75% for income between $26,050 and $100,000.   Starting in 2026 and beyond, Ohio will implement a flat tax rate system of 2.75% for all income above $26,050. Twelve other states currently have a flat tax system, with Iowa and Mississippi also moving to one in 2026.    Below are the brackets for the 2024-2026 period.    Don’t Forget About Local Taxes Ohio city and school district income taxes are separate and vary by location.  You can check your local rate using the Ohio Department of Taxation's “ The Finder ” website.   You can see the history of Ohio rates from 2005-2024 here:  https://tax.ohio.gov/individual/resources/annual-tax-rates   How Ohio Compares to Neighboring States Interestingly, Ohio will have the lowest tax rate compared to neighboring states, where the top state tax rates are: Indiana – Flat Tax of 3.05% Kentucky – Flat Tax of 4.00% West Virginia – Progressive Tax with top rate of 5.12% Pennsylvania – Flat Tax of 3.07% Michigan – Flat Tax of 4.25%   Why These Changes Matter to You As with federal laws, state laws are also “written in pencil”.   Meaning that these laws will be in effect going forward, but future politicians can always modify them.   That’s why it’s essential to stay up to date on these changes to determine if and how they will impact you.    Take the Guesswork Out of Tax Changes Ohio’s income tax updates could impact your long-term financial strategy—whether you’re planning for retirement, running a business, or simply looking to maximize your take-home income. At Whitaker-Myers Wealth Managers, you can rely on our team of financial advisors  and tax advisors , who are here to help you navigate these changes with clarity and confidence. Schedule a consultation today  to see how these new laws could affect your financial plan and what proactive steps you can take.

Always be buying (ABB!) The impact of dollar cost averaging  is clear, but it’s also important to remember that buying at all-time market highs can have its advantages. Don’t let market peaks hold you back. Stay focused, stay consistent, and remember the mantra: Always Be Buying!   What is dollar cost averaging (DCA) Dollar-cost averaging (DCA) is an investment strategy in which you invest a fixed amount of money at regular intervals, regardless of whether the market is up or down. Rather than trying to time the perfect entry , DCA helps smooth out the purchase price of your investments over time. This approach can help reduce the emotional stress associated with market volatility and mitigate the risk of investing a large sum just before a downturn. It’s particularly appealing to long-term investors seeking to build wealth  gradually while managing downside risk. Data from: JP Morgan, Guide to the markets Fear of Buying at Highs One of the most common psychological barriers investors face is the fear of buying at all-time highs. Many worry that investing when markets are elevated sets them up for an imminent drop. However, the left side of the chart tells a different story. Historically, the S&P 500 has made numerous all-time highs, reflecting the broader trend of long-term growth. The data show that since the start of 2024, the S&P 500 has already reached 62 new highs, with approximately 6.7% of trading days closing at a record level. Moreover, nearly 30% of those highs ultimately became “market floors,” meaning prices didn’t drop below those levels afterward, underscoring that new highs are often not ceilings but stepping stones to further growth. Returns After Buying at Highs The right-hand side of the chart provides powerful evidence that investing at all-time highs has historically not been a disastrous choice. From 1988 to the end of 2024, the average cumulative returns after buying the S&P 500 at a new high were very similar—and in some cases slightly higher—than returns from investing on any random day. For example, over five years, investing at all-time highs yielded an average cumulative return of 80.9%, compared to 74.7% for investing on any day. Even shorter-term returns are not dramatically different. This challenges the notion that buying at highs is inherently dangerous and supports the idea that staying invested—regardless of market levels—often pays off over time. DCA Helps Bridge the Emotional Gap Dollar-cost averaging provides a practical approach to overcome the fear of investing at market highs. Instead of waiting for the “perfect dip,” investors steadily add to their portfolios, which helps capture both highs and lows. The data shows that the market’s upward bias over time has rewarded consistent investors, whether they entered at highs or not. For investors concerned about market timing, DCA combines discipline with the statistical evidence presented in the chart above: investing—even at new highs—has historically yielded solid returns, especially when given sufficient time to compound. The key takeaway is that long-term investing and consistent contributions often trump trying to predict short-term market movements, and to ABB, Always Be Buying! To learn more about how Whitaker-Myers Wealth Managers  can help you on your journey, schedule a meeting with one of our financial advisors . If you desire, and are data nerdy like I am, don’t hesitate to reach out to me  so we can dive deep into market data that may provide additional insight to your journey.

Using this simple tool could help your family become multi-millionaires by the time they turn 50!   What Are “Trump Accounts?” Recently, President Trump addressed one of the key components of the current version of the “big beautiful” tax bill that was recently signed into law. The bill includes a historic provision to create individual investment accounts for American babies born between January 1, 2025, and December 31, 2028.   To be eligible, the babies must be U.S.-born citizens with valid Social Security numbers, born to parents who also have valid Social Security numbers.    Below are a few highlights; for more information, please visit the White House website . The U.S. government will make an initial deposit of $1,000 per child.  Family members and friends may also make annual contributions to these individual accounts, as long as the combined annual contributions do not exceed $5,000.  The investment selection must be in a low-cost, diversified U.S. stock index fund or equivalent, and currently, no withdrawals can be made from the account until the child reaches the age of 18. Qualified withdrawals will be taxed at the account holder’s capital gains tax rate, which is a lower rate than ordinary income. Unqualified withdrawals for a beneficiary under 30 may be subject to ordinary income tax, plus a 10% penalty. Trump accounts are intended to be used for certain “qualified” wealth-building expenses such as: higher education, post-secondary credentialing, purchasing a home, or even small-business start-up costs. While we have the basic scaffolding of how these Trump Accounts will look, there are still many unanswered questions, particularly related to complicated withdrawal rules (one rule is that no more than half of the balance of the accounts may be withdrawn between the ages of 18 and 25).   Does it really matter? Yes!  Well, it could—and the degree to which it matters depends on whether the account just sits idly with the initial $1,000 deposit, or family members and others find a way to take advantage of the ability to make extra contributions to the beneficiary account.    Here is a chart displaying how a $1,000 investment grows over 25 years, assuming a 10% annual rate of return—the average expected return of a 100% equity portfolio over the past 30 years, according to data from Prudential.    If you are unfamiliar with the miracle of compound interest ,  this illustrates how the potential for growth of such a small account can be staggering:   $1,000 Lump Sum à $10,835 $1,000 Lump Sum +50/month à $68,730 $1,000 Lump Sum +100/month à 126,626 $1,000 Lump Sum +400/month à $483,505   At the age of 25, portions of these accounts would be eligible for withdrawal for qualified expenses and would be taxed at long-term capital gains rates.  However, how might this significant financial head start grow if the balance were not withdrawn and the child (now an adult) simply takes the account and rolls it into an IRA, beginning to make the annual maximum contributions to these accounts until they reach age 50?    Here’s the table of final balances at age 50 for each inflation-adjusted annual contribution level, assuming a 10% annual return: Here’s the chart with IRA account balances shown in millions of dollars ($M): Dashed lines: Growth from an initial lump sum with no further contributions. Solid lines: Growth from the same initial amount plus inflation-adjusted annual IRA contributions, a maximum of $7,000. Initial Investment Final Balance (No Contributions) Final Balance (+Max IRA Contributions) $10,835 $0.12M ($120,000) $1.05M $68,730 $0.74M ($740,000) $1.68M $126,626 $1.37M $2.31M $483,505 $5.24M $6.17M Can we do it? Minting millionaires doesn’t have to be a dream—it starts with small choices.  Choosing to contribute just $50 per month into one of these Trump Accounts, could yield a positive difference of $58,000 by the time a child has graduated college—and a difference of $620,000 by the time a child turns 50 (even if they don’t ever make any contributions of their own).  Suppose the beneficiary of this hypothetical +$50/month Trump Account chooses to follow in the footsteps of their benefactors by maxing out their own IRA contributions. In that case, they will have nearly $1.7 million.    Make Small Sacrifices It's so tempting to want to buy the best of everything for your new baby, especially if it's your first.  Social Media algorithms will force-feed you top-of-the-line marketing designed to play on your emotions and make you feel like you have no choice but to buy the high-end stroller, the best crib, the Gucci diaper bag, etc.  Take it from the father of four boys that kids are expensive, and there will always be more things to spend money on rather than save.  How will you stick to your savings plan?  Will you get more joy out of setting your child (or grandchild/niece/nephew) up for a bright financial future than the fleeting happiness that you (or the child) might get from one of the millions of temporary pleasures?  If you can afford to dress your sweet little person in a fresh pair of Nikes, that’s great.  But remember that kids' shoes depreciate faster than a new car being driven off the lot—they could grow out of those sneakers in a matter of weeks or just a few months.  If you want to find $50 per month, you might need to adjust your standards in one or more categories.  As Dave Ramsey  says, “Live like no one else now, so that you can live like no one else later.”   If you would like to learn more about Trump Accounts and how they align with your financial plan, please reach out to your advisor today or schedule a meeting with a financial advisor if you don’t have one yet.

It’s official: the Big Beautiful Bill Act  has been signed into law. While the name might make you smile, this legislation brings serious and sweeping changes to the tax landscape—changes that could significantly affect your financial life. As your financial partner, I want to make sure you understand what’s changed, what’s stayed the same, and how to prepare going forward. Here are four major updates  you need to know about today. 1. Tax Brackets Made Permanent One of the biggest wins for taxpayers is the permanent extension of the Tax Cuts and Jobs Act (TCJA) income tax brackets. Before TCJA, tax brackets increased much more steeply—starting at 10% and quickly climbing to 15%, 25%, 28%, all the way up to 39.6%. Since the TCJA, the brackets have been more favorable: 10%, 12%, 22%, 24%, up to a max of 37%. Without action, these brackets were set to expire, potentially increasing taxes for most Americans. Thanks to the new legislation, these lower brackets are now permanent. To put that in perspective: A couple earning $100,000  would have paid $2,428 more  in federal taxes. A couple earning $200,000  would have owed $17,006 more . This change alone represents a meaningful win for working families and retirees alike. 2. Standard Deduction Increases and Senior Bonus The Big Beautiful Bill Act  does two things regarding standard deductions: First, it makes the TCJA standard deduction levels permanent , and Second, it increases them further , starting in 2025. Here’s the breakdown: Filing Status Previous Deduction New Deduction (2025) Single $15,000 $15,750 Married Joint $30,000 $31,500 These amounts will also continue to adjust for inflation in future years. Bonus Deduction for Seniors From 2025 through 2028, seniors aged 65 and over will receive an additional $6,000 per person . That means a married couple over age 65 will be able to deduct $43,500  before owing any federal income tax. This provision echoes a long-standing promise to make Social Security income-tax-free for seniors and provides significant tax relief in retirement. 3. Child Tax Credit Permanently Increased One of the most widely used credits—the Child Tax Credit —gets a permanent boost. Previously: Pre-TCJA: $1,000 per child under 17 TCJA: Increased to $2,000 Big Beautiful Bill Act : $2,200 per child , indexed for inflation starting in 2025 This means families with young children will receive more support, year after year, with automatic cost-of-living increases built in. 4. SALT Deduction Cap Temporarily Lifted The TCJA introduced a controversial cap on State and Local Tax (SALT) deductions, limiting taxpayers to a $10,000 deduction—regardless of what they actually paid. This hit residents in high-tax states the hardest. Under the new law: The SALT cap will be temporarily lifted to $40,000  starting in 2025. However, this deduction will begin to phase out for those earning over $500,000 . What About Pass-Through Businesses? The bill preserves the popular SALT cap workaround for pass-through businesses. This allows business owners to deduct state taxes at the entity level—a crucial planning tool that remains intact. What Comes Next? This is just the beginning. The Big Beautiful Bill Act encompasses a comprehensive list of changes, and I’ll be releasing additional resources to help you understand its implications for your personal finances. In fact, I’m hosting a webinar on Monday, July 21st at 4 pm ET  with Kage Rush , CPA, and our CFO , to dive deeper into these changes. We’ll unpack strategies you can apply right now and answer your questions live. 👉  Register now  at whitakerwealth.com . Just scroll down to find the registration link. Stay Informed, Stay Empowered We recognize that staying ahead of tax law changes is crucial to achieving long-term financial stability. That’s why we’re committed to helping you every step of the way. If you found this information helpful, feel free to share it with friends or family. And as always, if you have a specific financial question, don’t hesitate to reach out . Together, we can navigate these changes and keep your financial journey on track.

Whitaker‑Myers Wealth Managers is proud to announce that David Gearhart , Associate Financial Advisor, has earned the distinguished Enrolled Agent (EA)  designation with the IRS. This credential positions David among a select group of professionals authorized to represent clients before the IRS—reinforcing the firm’s holistic approach to financial planning that fully integrates tax strategy and compliance. David’s attainment of the EA reflects both his dedication to professional excellence and the firm’s unwavering commitment to delivering tax-aware financial guidance. As an EA, David is now federally certified to prepare IRS-related documents, resolve tax disputes, and advise on complex issues ranging from retirement distributions to investment tax implications. “David’s achievement as an Enrolled Agent underscores Whitaker‑Myers Wealth Managers dedication to taking a truly comprehensive approach to financial planning,”  said John‑Mark Young , President of Whitaker-Myers Wealth Managers. “In a world where taxes can have a significant impact on portfolio outcomes, having multiple EA's on our team, like David, allows us to serve our clients with deeper insight and greater confidence.” Echoing this sentiment, Timothy Hilterman, CFP® , Chief Financial Planning Officer at Whitaker‑Myers, remarked: “Earning the EA designation demonstrates David’s passion for equipping clients to make informed decisions by understanding not just investment performance, but tax consequences as well. This elevates our ability to provide integrated, fiduciary-first advice.” A Strategic Advantage for Clients Building tax planning into the fabric of financial advice is a hallmark of Whitaker‑Myers’ “heart of a teacher” philosophy. David’s EA designation ensures clients benefit in several key ways: IRS Representation  — Clients gain a trusted advisor to advocate on their behalf during audits or tax disputes. Optimized Tax Strategies  — Sophisticated guidance on retirement planning, capital gains management, tax-loss harvesting, and more. Informed Financial Decisions  — Integrated planning that aligns investment choices with tax implications, advancing long-term financial goals. What This Means for Financial Planning at Whitaker‑Myers David’s new credential enhances the firm’s team-based planning model, which already includes CFP® professionals, a CPA , and delegated financial planners. It solidifies the firm’s standing as a tax-savvy, fiduciary-first partner for clients —whether navigating retirement, managing wealth, or building generational legacies. About David Gearhart, EA A recent graduate from Ashland University with his MBA, David brings fresh energy and analytical rigor to the team. As an Enrolled Agent, he embodies the firm’s values of clarity, empowerment, and stewardship. His new role further equips clients to make tax-wise choices that positively impact their financial futures. To meet with David or any of our Financial Advisors, please click here .