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Volatility often tempts investors to time the market, which refers to trying to predict short-term price movements to buy or sell investments accordingly. Many investors seek to hoard cash and search for the perfect moment to invest. We are of the view that time in the market far outweighs attempting to time markets, as market timing can be a costly mistake. Furthermore, investors should always have a disciplined equity portfolio re-balancing strategy to ensure their exposure is not overly concentrated in one segment of the stock market. 1.) There is a Cost to Timing the Market Investors that think they can navigate markets through short-term buying and selling are doing so at the expense of long-term wealth generation. Often, the best days in the market occur during periods of market volatility. Missing the best days in the market proves costly for long-term returns. Consider the twenty-year time period from January 2003 through December 2022. A long-term investor who started with $100,000 in the S&P 500 in January 2003 would have seen their savings grow to $648,440 by December 2022. Conversely, a market timer who missed just the best 10 days during that twenty-year time period would have generated less than half of the returns than if they had stayed invested over the whole period. Source: VisualCapitalist, August 14, 2023. 2.) Implement a Dollar-Cost Averaging Strategy with Cash Cash has historically been a losing strategy versus stocks. According to Morningstar, there are very low odds of cash outperforming the stock market over long periods of time. Source: Morningstar: Cash Is No Longer Trash, but the Opportunity Cost Might Be Greater Than You Think, August 1, 2023. Those with excess cash on the sidelines and a long-term horizon would benefit from a dollar-cost averaging strategy. Dollar-cost averaging is a disciplined method of investing in the stock market, especially for those who have concerns about stock market investing. It is the practice of investing a fixed amount of cash into the stock market at a regular frequency, regardless of market conditions. A good example of this in practice is contributing a portion of your paycheck to your 401(k) or IRA each month. Utilizing a dollar-cost averaging strategy helps investors: Enforce disciplined investing habits, Remove emotion from the equation, Bolster their diversification, as cash can be used to purchase underweight areas of their equity portfolio, and Avoid the temptation to time the market. At RISE Investments, we embrace the dollar-cost averaging approach for our clients when adding to equity positions. 3.) Consider Re-balancing Investors that are overexposed to one segment of the stock market should always consider re-balancing. Up until very recently, the performance of the market-cap weighted S&P 500 index was being driven by a narrow group of mega-sized stocks known as the “Magnificent 7”. Meanwhile, the median stock in the index (i.e. the equal weighted S&P 500) underperformed. Due to their outperformance, Magnificent 7 stocks and the market-cap weighted S&P 500 have become much larger portions of many investor portfolios. According to Lyrical Asset Management, last year’s narrowness in market breadth approached the highest in a generation, as defined by the 3-month relative performance periods of the market-cap weighted S&P 500 versus the equal-weighted S&P 500. Historically, when the market-cap weighted S&P 500 outperforms the equal-weighted by such a margin, the subsequent 1, 3, and 5-year time periods favor diversifying into the equal-weighted S&P 500. Source: Lyrical Asset Management, September 5, 2024 Furthermore, during the same time periods of narrow market breadth, owning the cheapest quintile of stocks (i.e. value stocks) has historically led to greater future outperformance versus the market-weighted S&P 500. Source: Lyrical Asset Management, September 5, 2024 Over the past handful of months, Vince and I have taken active measures to re-balance our client’s equity allocations into equal-weighted S&P 500 and value strategies. We have conviction that this disciplined approach benefits our clients by reducing overall risk while also bolstering future potential returns. Conclusion Investing in the stock market may seem tedious, especially when market volatility is heightened. However, success can be drastically improved by putting three portfolio management tips into practice - staying invested, dollar-cost averaging, and disciplined portfolio re-balancing. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any historical returns, expected returns, or projections are provided for informational purposes only. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information.

“Fee-only” and “fee-based” sound like the same thing, but they aren't. The difference can determine whether the advice you receive is built around your interests or someone else's commission target. What is a Fee-only Financial Advisor? A fee-only advisor is compensated exclusively by the fees clients pay directly. The fees are typically a percentage of assets under management, a flat retainer, or an hourly rate. Fee-only advisors do not accept commissions, referral fees, or other payments from the sale of financial products such as mutual funds, insurance policies, or annuities. What is a Fee-based Financial Advisor? A fee-based advisor charges client fees, similar to a fee-only advisor, but can also earn commissions from selling certain financial products. That dual compensation structure is the entire distinction. Fee-based is not a stricter version of fee-only, but rather a hybrid model that layers potential commission income on top of fees. What's the Core Difference Between Fee-only and Fee-based Advisors? The difference is the source of income beyond client-paid fees. Fee-only advisors have one revenue stream, which is what the client pays them for advice and execution. Fee-based advisors have two or three revenue streams; client fees, product commissions and in some cases revenue sharing agreements with certain third-party asset managers. That second stream introduces the possibility that a recommendation earns the advisor extra compensation depending on which product is chosen, regardless of the product is the best fit for the client or not. Are Fee-only Advisors Always Fiduciaries? Yes. When they are Registered Investment Advisers (RIAs) or investment adviser representatives, fee-only advisors are held to a fiduciary standard under the Investment Advisers Act of 1940, meaning they're legally required to act in the client's best interest at all times, not just when giving “investment advice” in a narrow technical sense. Are Fee-based Advisors Fiduciaries Too? Sometimes. A fee-based advisor may be a fiduciary when acting in an advisory capacity, but can switch to a lower “suitability” standard when selling a financial product they earn a commission or transaction-based compensation from, such as an annuity or a proprietary fund. That standard only requires the product to be suitable, not necessarily the best option available for the client. The advisor can move between the two standards within a single client relationship, which makes it harder for clients to know which set of rules applies to any given recommendation. Why Does the Commission Structure Matter to Me As a Client? It matters because commissions can create an incentive for advisors to recommend the option that pays the then more, rather than the option with the lowest cost or the best fit for the client. This isn't necessarily about bad actors, but more so a structural conflict of interest that exists whether or not any individual advisor acts on it. Fee-only compensation removes that incentive by design, since the advisor's income doesn't change based on which specific investment or product is chosen. How Can I Tell If an Advisor is Fee-only or Fee-based? Just ask them directly. You can also check their Form ADV Part 2A on FINRA's BrokerCheck website. Form ADV is a disclosure document that every RIA files and it describes compensation arrangements in the “Fees and Compensation” section. Advisors who are dually registered as both an investment adviser representative and a broker-dealer registered representative are typically fee-based, since broker-dealer registration allows commission income. Does Fee-only Mean an Advisor is Automatically Cheaper? Not necessarily. Fee-only advisors are compensated transparently but their fees, which often range from 0.50% to 1.25% of client assets under management annually, are not always lower than what a fee-based advisor charges. The advantage of fee-only compensation is clarity and alignment, not guaranteed lower cost. Clients should compare the total, all-in cost of advice, including any embedded product fees, regardless of the compensation model. Is Fee-only or Fee-based Better for My Situation? For most clients seeking ongoing financial planning, retirement guidance, or investment management, fee-only advice tends to minimize conflicts of interest, since compensation doesn't change based on specific investment product recommendations. Fee-based arrangements can make sense for clients who need a specific commissioned product, such as certain types of insurance, as part of a broader plan. However, it's worth understanding, product by product, whether a commission is involved and whether a fee-only alternative exists. About RISE Investments RISE Investments is a Chicago-based financial advisor that delivers tailored investment management and comprehensive financial planning services. We are fee-only and have a fiduciary duty to our clients, which consist of working professionals, business owners, retirees, pre-retirees, and multi-generation families. We serve our clients by designing and executing on clear, actionable financial plans and investment strategies built around our clients goals, responsibilities, and legacy intent. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Equity performance continued to be led by cyclical sectors, such as domestic small cap equities. Short-term interest rates rose on expectations of future Federal Reserve rate hikes. Small cap value equities represent a core weighting in RISE client equity allocations. Second Quarter Update Equities rose in the second quarter led by cyclical asset classes, such as U.S. small cap equities. Progress towards a resolution of the Iran conflict, strong earnings growth, and economic momentum offset concerns of tighter monetary policy through the quarter. The new Federal Reserve Chair, Kevin Warsh, is inheriting an economy that is growing above trend and an inflationary backdrop that is above their long-term target of 2.0%. Source: Federal Reserve Bank of Atlanta, Atlanta Fed GDPNow real GDP estimate for 2026:Q2. U.S. Bureau of Economic Analysis, Personal Consumption Expenditures Index for May 2026. The fixed income market has reflected the economic backdrop with Two-Year Treasury yields ascending to 4.1% compared to a Federal Funds target range of 3.50% to 3.75%. The Two-Year Treasury yield is a reasonable indicator of future Federal Reserve policy, signaling tighter monetary policy ahead despite political pressure for looser policy. This set up allows for higher levels of current income for fixed income clients and re-balancing opportunities for those who are overweight equity exposure. The Case for Small Cap Value Equities Recent headlines have been centered around multi-trillion-dollar market capitalization growth companies, including a stampede of initial public offerings (SpaceX, OpenAI, and Anthropic, among others). Despite this excitement, a lesser owned corner of the equity market has been quietly outperforming. What are Small Cap Value Equities? Small cap value equities have small market capitalizations and cheap valuations. Within an equity style box, they reside in the bottom left corner. They generally comprise of cyclical old-economy industries, especially when compared to large cap growth equities which dominate many investor’s equity portfolios today. Why Have Small Cap Value Equities Outperformed Over the Long-Term? Since 1926, small cap value equities are the best performing equity asset class despite higher volatility. Small cap value equities have a unique return profile, which increases diversification benefits of owning them. For instance, small cap value equities provided healthy returns leading up to, and following, the 2000 tech bubble burst. The rationale for long-term outperformance of small cap value equities has been well documented by academic studies. The two most common reasons include: Size Premium: Small market capitalization companies outperform large market capitalization companies as investors are compensated for greater risks, such as higher volatility and lower liquidity. Value Premium: Value equities outperform growth equities, as they are perceived as riskier, which compensates investors with higher return. Why are Small Cap Value Equities Attractive Today? The favorable economic backdrop supports owning cyclical assets, such as small cap value equities. Additionally, from today’s valuations, the historic forward 5-year annualized return for small cap value equities is approximately 13%. Looking Forward and Parting Thoughts The first half of 2026 exemplified the value of diversification. Exposure across company sizes, geographies, and asset classes drove materially different, and in many cases better, outcomes than concentration in a single area of the market. As we enter the second half of the year, we are focused on the macroeconomic backdrop, geopolitical developments, and navigating a higher-for-longer rate environment. Real GDP is tracking toward approximately 2.2% growth for the full year, which is healthy but not immune to risk. Oil prices and the trajectory of the Iran conflict remain a wildcard for inflation and consumer spending, yet a sustained de-escalation could be a meaningful tailwind in the second half of the year. With the likelihood of tighter monetary policy ahead, we are maintaining a shorter duration position in fixed income, favoring the income available in short-to-intermediate U.S. Treasuries while preserving flexibility as the inflation picture evolves. Near-term market headlines, Fed press conferences, and a geopolitical flare-ups can feel urgent in the moment but rarely change the fundamentals of a well-constructed financial plan. Our job is to ensure your portfolio reflects your goals, time horizon, and tolerance for risk. Not the day-to-day noise in any given quarter. As always, we welcome the opportunity to discuss this letter or answer any questions you may have. Please do not hesitate to reach out to us at any time. Sincerely, The RISE Team Footnotes [1] Small Cap Value is the S&P 600 Value Index. Large Cap Growth is the Russell 1000 Growth Index. Performance data as of 6/30/2026. [2] Monthly data is from 7/1/1926-5/31/2026 per Dimensional Fund Advisors. Small Cap Value is the Fama/French U.S. Small Value Research Index. Large Cap Growth is the Fama/French U.S. Large Growth Research Index. [3] Small Cap Value is the Russell 2000 Value Index. Large Cap Growth is the Russell 1000 Growth Index. Returns are annualized. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Americans have a substantial portion of their cash in non-interest-bearing accounts. Current interest rates offer savers the opportunity to keep up with inflation. There are several strategies for savers to earn interest on their cash. You may be losing out on interest if your cash is held in a non-interest-bearing account. According to the Wall Street Journal, about $5.6 trillion, or 10% of Americans’ liquid net worth, is in low or no yielding bank deposits [1]. Keeping excess cash in a checking or traditional savings account may be costing you without you even knowing it. Why Earn Interest on Cash? Investing cash in high-quality short-term investments helps to keep up with inflation. With today’s inflation of 4.1% [2], having cash earn interest helps to reduce the erosion of purchasing power due to inflation. Short term interest rates are set by the Federal Reserve and are currently targeted between 3.5-3.75%. This interest rate is roughly equal to the rate of inflation. The recent increase in inflation from the rise of oil prices has increased the likelihood of interest rate hikes in the back half of 2026. What are My Options for Investing Cash? There are several options for investing cash: Money Market Funds Funds that invest in high-quality, short-term fixed income securities which make them safe, liquid and very accessible. Managed by a professional team and often comes with a small expense ratio. U.S. Treasury Bills Short-term debt security issued by the United States government with maturities of up to 1 year. Backed by the full faith and credit of the United States government and are very liquid. Interest is exempt from state and local taxes. High-Yield Savings Accounts Accounts that are offered by banks to increase deposits. An investor can compare the terms of a high yield savings account with different banks. Certificates of Deposit Specialized savings account that is offered by banks and credit unions that a fixed interest rate for a specified period. While there are liquidity constraints, they tend to offer higher yields than a standard savings account. Conclusion Having excess cash work for you can help your savings to maintain purchasing power. Fortunately, there are several strategies that can be utilized to make your cash work for you. Footnotes [1] Source: Spencer Jakab, “We’re Keeping Too Much Cash in Our Accounts These Days,” Wall Street Journal, May 28, 2026 [2] Annual Personal Consumption Expenditures price index increase for May 2026. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Depending on your circumstances, a Roth IRA can be one of the most valuable retirement savings vehicles available. Unlike traditional retirement accounts, a Roth IRA offers the potential for tax-free growth and tax-free withdrawals in retirement, making it an attractive option for individuals who expect to be in the same or a higher tax bracket later in life. However, not everyone is eligible to contribute directly to a Roth IRA, and even if you are, that doesn’t automatically mean it’s the best choice for your financial situation. Understanding both the eligibility rules and the strategic considerations can help you make an informed decision. Can I Contribute to a Roth IRA? The answer depends primarily on two factors: You must have earned income. Your modified adjusted gross income (MAGI) must fall below the IRS income limits for direct Roth IRA contributions. Earned income generally includes wages, salaries, bonuses, commissions, and self-employment income. Investment income alone does not qualify. The IRS establishes annual MAGI thresholds that determine whether you can contribute the full amount, a reduced amount, or not contribute directly at all. These limits are adjusted periodically for inflation, so it’s important to verify the current year’s eligibility before making a contribution. 2026 Roth IRA Contribution Income Phase-Outs Source: IRS If your income exceeds the allowable limits, you may still have options, which we’ll discuss shortly. Why Are Roth IRAs So Popular? Roth IRAs were created in 1998 with the intent of boosting America's low household savings rates. The biggest advantage of a Roth IRA is simple: qualified withdrawals are completely tax-free. Because contributions are made with after-tax dollars, your investments have the opportunity to grow for decades without future federal income taxes on qualified distributions. That creates several meaningful benefits: Tax-free investment growth Tax-free withdrawals in retirement No required minimum distributions (RMDs) during your lifetime Greater flexibility in retirement income planning No Income in Respect of a Decent (IRD) tax for your heirs Many investors underestimate how valuable tax-free growth can become over a 20 or 30-year investment horizon. Even modest annual contributions can compound into substantial retirement assets. Should I Contribute to a Roth IRA? Eligibility is only half the equation. The more important question is whether contributing to a Roth IRA makes sense for your overall financial plan. Here are a few situations where a Roth IRA may be particularly beneficial. You Expect Your Tax Rate to Be Higher Later If you’re early in your career or expect your income to increase significantly over time, paying taxes today at a lower rate may be advantageous. Instead of receiving a tax deduction now, you’re effectively pre-paying taxes in exchange for tax-free income later. This strategy can be especially attractive for: Young professionals Medical professionals Attorneys Engineers Executives with growing compensation Business owners expecting future income growth You Want More Tax Diversification One of the biggest retirement planning mistakes is accumulating all retirement assets in tax-deferred accounts. If nearly all of your savings are in Traditional IRAs or 401(k)s, every withdrawal during retirement may increase your taxable income. A Roth IRA creates tax diversification by giving you another “bucket” of money that can be withdrawn tax-free. Having multiple tax buckets allows retirees to better manage: Federal income taxes Medicare premium surcharges Social Security taxation Capital gains planning Estate planning Rather than being forced to take only taxable withdrawals, retirees can strategically combine taxable, tax-deferred, and tax-free assets to control what marginal tax bracket they fall in depending on their situation each year. When a Traditional IRA May Make More Sense A Roth IRA isn’t always the better choice. If you’re currently in one of your highest earning years and expect your retirement income to be significantly lower, receiving a tax deduction today through a Traditional IRA or Traditional 401(k) contribution may provide greater long-term value. For example, someone in the 35% federal tax bracket today who expects to retire in the 22% bracket may benefit more from delaying taxes rather than paying them now. The long-term value comes in form of tax-rate arbitrage, as the after-tax value is greater when paying 22% later on instead of 35% today. What If I Make Too Much Money? Many high-income professionals assume they cannot benefit from a Roth IRA because their income exceeds the IRS contribution limits. Fortunately, that’s not necessarily true. One widely used strategy is the Backdoor Roth IRA. A Backdoor Roth involves making a non-deductible contribution to a Traditional IRA and then immediately converting those funds into a Roth IRA. While the strategy is permissible under current tax law, it must be executed carefully. Existing pre-tax IRA balances may trigger the IRS’s pro-rata rule, potentially creating unexpected tax consequences. Because of these complexities, investors should coordinate with both their financial advisor and tax professional before implementing a Backdoor Roth strategy. Don’t Forget Your Employer Retirement Plan One common misconception is that contributing to a Roth IRA means you should stop contributing to your employer-sponsored retirement plan. In reality, many investors can benefit from doing both. If your employer offers a matching contribution in a 401(k), it’s generally prudent to contribute at least enough to receive the full employer match before directing additional savings elsewhere. Employer matching dollars represent an immediate return on your contribution that is difficult to replicate through other investment strategies. From there, the appropriate allocation between a Traditional or Roth 401(k), a Roth IRA, and taxable investment accounts depends on your income, tax situation, pre-retirement liquidity needs, retirement goals, and overall financial plan. Common Roth IRA Mistakes to Avoid Some of the most common Roth IRA mistakes include: Contributing despite exceeding income limits Missing the annual contribution deadline Assuming a Roth IRA is always better than a Traditional IRA Ignoring the tax implications of a Backdoor Roth conversion Failing to invest the money after making the contribution Overlooking beneficiary designations A Roth IRA is only as effective as the investment strategy inside the account. Maintaining an allocation aligned with your long-term goals remains just as important as choosing the account itself. The Bottom Line A Roth IRA can be one of the most powerful tools available for building long-term, tax-efficient retirement wealth. For eligible investors, the combination of tax-free growth, tax-free withdrawals, and the absence of required minimum distributions offers flexibility that few other retirement accounts can match. That said, the right decision depends on more than simply qualifying to contribute. Your current tax bracket, expected future income, retirement timeline, existing retirement accounts, and broader financial goals should all factor into the analysis. For some investors, maximizing Roth contributions each year is a clear opportunity. For others, prioritizing traditional retirement accounts or implementing a Backdoor Roth strategy may be more appropriate. The key is understanding how a Roth IRA fits into your overall financial plan and not just this year’s tax return. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

What Makes Illinois' Tax Landscape Unique? We designed this guide exclusively for Illinois residents with $1M+ in investable assets or an estate with near $4 million or greater in total value. If you own a business, real estate, or a significant investment portfolio, the unique tax landscape in the Land of Lincoln makes proactive planning essential. Illinois is one of only a handful of states with its own estate tax. With an exemption threshold of just $4 million, many families who worked a lifetime to build their wealth are affected without realizing it. We have seen firsthand how a lack of awareness about Illinois’s estate tax, its non-portability between spouses, and its “cliff” estate tax structure can cost families hundreds of thousands of dollars or more that proper planning could have preserved. This guide covers various strategies our team uses to help Illinois clients navigate these challenges; from structuring Credit Shelter Trusts that fully utilize both spouses’ exemptions, to tax-loss harvesting, Roth conversion strategies, and charitable giving vehicles that serve both your values and your tax picture. These are not theoretical concepts. Rather, they are the frameworks we implement for our Illinois-based clients. What is RISE Investments? If you have worked hard to build significant wealth, you already know that protecting and growing it requires more than good investments. It requires a strategy. One that accounts for taxes, legacy, and the unique challenges that come with living and building wealth here in Illinois. At RISE Investments, we understand that your goals and concerns may go far beyond investment returns. You want to make the most of what you have built, minimize unnecessary tax erosion, and create a lasting legacy for the people and causes you care most about. That is exactly why we do what we do. Founded in 2019, we were built from the ground up with a single purpose: to serve our clients with deeply personalized, conflict-free financial guidance. As a fiduciary, we are legally and ethically obligated to act in your best interest at all times. We are independent, which means we are never incentivized by product commissions or sales quotas. Our only incentive is your financial success. We believe this is the only way to truly serve clients, and it is the foundation that RISE is built on. We created this guide specifically for Illinois residents because the tax landscape here in our home state is genuinely different and consequential. Illinois is one of only a handful of states with its own estate tax. With an exemption threshold of just $4 million, many families who worked a lifetime to build their wealth are affected without realizing it. We have seen firsthand how a lack of awareness about Illinois’s estate tax, its non-portability between spouses, and its “cliff” estate tax structure can cost families hundreds of thousands of dollars or more that proper planning could have preserved. This guide covers the strategies our team uses to help Illinois clients navigate these challenges; from structuring Credit Shelter Trusts that fully utilize both spouses’ exemptions, to tax-loss harvesting, Roth conversion strategies, and charitable giving vehicles that serve both your values and your tax picture. These are not theoretical concepts. Rather, they are the frameworks we implement for our Illinois-based clients. What Should You Expect from Your Wealth Manager? As your wealth grows, so does the complexity of managing it well. An exceptional wealth manager is far more than a portfolio manager. They are a strategic partner that coordinates each dimension of your financial life into one cohesive plan. For Illinois families, this coordination is especially critical. You may already have a financial team in place, and you may even have a financial plan in place. However, even strong plans can be subject to costly blind spots. When your outside professionals and advisors, such as your estate attorney, CPA, or insurance experts, should be involved, we coordinate seamlessly with them to treat your portfolio as a unique entity rather than a model to be applied. Over $84 trillion worth of assets are expected to transfer between generations over the next two decades. We believe professional wealth management services are necessary for affluent families and their future generations to achieve financial continuity, a lasting legacy, and preservation of wealth for future generations. At RISE, we proactively support our clients in four key areas. Comprehensive Financial Planning We build a complete picture of your financial life from income and expenses to assets, liabilities, goals, and timeline. Each aspect of your plan is carefully crafted and executed to achieve your best outcomes. We provide you with insights to understand the connections between your decisions and their impact on complex, interrelated questions. Our advisors develop personalized strategies tailored to the unique aspects of your wealth. Investment Management Customized and tailored investment solutions aligned with your specific goals and objectives, incorporating robust tax optimization and risk management techniques to minimize tax erosion and safeguard your investments. We manage our clients’ portfolios with a focus on the long-term, treating each client’s portfolio as a unique entity tailored to their specific goals. Tax and Advanced Planning From asset location strategy and tax-loss harvesting to Roth conversion modeling, business owner tax structures, and much more, we coordinate proactively with your CPA to minimize your Illinois and Federal tax burden every year. Legacy and Estate Planning Your legacy should reflect your values, not the state’s tax code. We work alongside estate attorneys to strategize and structure your wealth for inter-generational transfer, which may include Illinois Credit Shelter Trusts, ILITs, charitable giving vehicles, and business succession planning. Why is Illinois Is One of the Most Challenging States for Affluent Wealth Transfer? While the state's flat 4.95% income tax rate is straightforward, Illinois has quietly become one of the most-costly states in the nation for wealth transfer. This is largely due to it being one of 12 states (plus the District of Columbia) that imposes an estate tax, which is in addition to Federal estate taxes. The result is that many Illinois families who may not think of themselves as "ultra-wealthy" still face a significant estate tax bill that could have been substantially reduced or eliminated with the right planning. Illinois Estate Tax: What Every Affluent Resident Must Know Being one of 12 states (plus DC) that imposes an estate tax, there are several features that set Illinois apart from both the Federal system and some other state estate taxes. The Illinois 'Cliff Tax' Trap Unlike the Federal estate tax, Illinois taxes your entire estate once it crosses the $4M threshold, not just the amount above $4M. This creates a dangerous 'cliff' effect. Without planning, crossing the $4M exemption threshold triggers tax on the full estate value. Non-Portability Warning for Married Illinois Couples Illinois's exemption is NOT portable between spouses. If one spouse dies with a $7M estate and leaves everything to the surviving spouse at death (a common default), the entire $7M is taxed at the death of the surviving spouse, resulting in approximately $565,6031 of Illinois estate taxes. Whereas, an optimally structured estate plan could have eliminated the tax entirely. Illinois Estate Tax Rates and Calculation Illinois uses a progressive estate tax rate schedule, ranging from 0.8% to 16%. The reality, however, is that it behaves in a regressive manner due to the previously referenced ‘cliff’ effect, disproportionately impacting moderate-sized estates over very large estates. This nuance makes the calculation of Illinois estate taxes complex, which stresses the importance of utilizing experts and specialized tools, such as the Illinois Attorney General’s estate tax calculator, to estimate a more accurate tentative tax liability. While gifts made during your lifetime are not directly taxed by the state, they are considered when calculating the estate tax if they exceed the annual exclusion amount ($19,000 per recipient, $38,000 per recipient for married couples – 2026). This inclusion can materially impact the estate’s Illinois tax liability. What are Strategies to Minimize Illinois Estate Tax? Planning for Illinois estate tax can be highly advantageous. Unlike Federal estate tax, which requires an estate larger than $30M to trigger taxes, Illinois's $4M threshold means affluent families need these strategies. The following strategies can dramatically reduce or even eliminate your Illinois estate tax exposure. Strategy 1: Credit Shelter Trust (Bypass Trust) This is the single most important planning tool for married couples in Illinois. Since Illinois's exemption is not portable between spouses, couples must proactively use both $4M exemptions through trust structuring. At the first spouse's death, rather than passing assets directly to the surviving spouse (which wastes the decent spouse’s exemption), assets up to $4M are directed into an irrevocable Credit Shelter (or Bypass) Trust. The surviving spouse can still benefit from trust income generated by those assets during their lifetime. This funding structure uses the first spouse’s Illinois exemption to shelter those assets from estate taxes. Any value above the $4M in the first spouse’s estate can still go to the surviving spouse - outright or through a marital trust. The excess amount that goes to the surviving spouse or a marital trust won’t be taxed at the first death, as the marital portion qualifies for the estate tax marital deduction. At the second spouse’s death, the Credit Shelter Trust assets pass to heirs outside of the taxable estate. Strategy 2: Lifetime Gifting to Reduce Your Illinois Taxable Estate Illinois only counts Federally-reported taxable gifts when calculating the Illinois estate. This creates a significant planning opportunity to substantially reduce the size of one’s estate during their lifetime through strategic gifting. The annual gift tax exclusion allows you to gift up to $19,000 per recipient per year. These gifts are completely excluded from Federal and Illinois estate calculations. In addition, a married couple can utilize a concept referred to as “gift-splitting” to gift up to $38,000 per recipient per year without triggering any gift or estate taxes. Some common examples of how couples utilize lifetime gifting to reduce the size of their estate are: Strategy 3: Irrevocable Life Insurance Trust (ILIT) Life insurance proceeds paid directly to a beneficiary are included in your taxable estate for Illinois purposes. By purchasing a life insurance policy in an ILIT, the policy is removed from your estate entirely. This is especially powerful for Illinois residents because the death benefit passes outside the estate, preserving the full $4M Illinois estate exemption for other assets. The ILIT can be funded to specifically cover your projected Illinois estate tax liability or any amount that is lesser or greater. Just like if the insurance policy was held directly, the death benefit passes to beneficiaries tax-free. When utilizing this strategy, married couples most commonly purchase dual life insurance policies, which insures both spouses and does not result in a death benefit payout until the death of the second spouse. Strategy 4: Charitable Remainder Unitrust (CRUT) CRUTs are charitable and irrevocable gifting vehicles that serve several purposes for Illinois residents: Reduce the size of the estate by the amount contributed to the trust. If contributing appreciated assets, the grantor is no longer subject to capital gains tax on the appreciation of the assets contributed. Grantor receives an immediate tax deduction for the present value of the projected remainder interest in the trust, which transfers to a charity or foundation at the end of the trust’s term. The CRUT beneficiary (can be same person as the grantor) receives years, or a lifetime, of income payments from the trust. 5% or more of the fair market value of the trust’s assets can be distributed as income to the beneficiary each year. Multiple contributions can also be made to a CRUT over time and CRUTs can be structured to provide the beneficiary with annual income over a specified term (up to 20 years) or for their lifetime. However, the charitable remainder interest must be at least 10% of the total assets contributed. The appreciated assets contributed to the CRUT can be sold tax-free and reinvested in a diversified portfolio. If the diversified portfolio grows over time, so does the dollar amount of income distributed to the beneficiary each year, which doubles as an inflation hedge for the beneficiary. Strategy 5: Grantor Retained Annuity Trust (GRAT) A GRAT allows the transfer of appreciation of assets to heirs with minimal or zero gift tax. After contributing assets to the GRAT, the grantor receives annuity payments back for a term of years, and anything that grows above the IRS hurdle rate (the Section 7520 rate) passes to heirs free of estate and gift tax. In a rising-asset environment, GRATs can move significant wealth out of the Illinois taxable estate efficiently. Strategy 6: Qualified Personal Residence Trust (QPRT) For Illinois residents with valuable primary or vacation homes, a QPRT allows you to transfer your home to your heirs at a deeply discounted gift tax value, while you continue to live there for a set term, such as for the remainder of you and your spouse’s lives. Given Illinois's high property values, this strategy can remove a substantial asset value from your taxable estate. Strategy 7: Out-of-State Asset Migration Illinois only taxes the Illinois-situs portion of a non-resident's estate. For residents considering relocation, establishing domicile in a state with no estate tax (e.g., Florida, Texas, Nevada) before death eliminates Illinois estate tax on personal property entirely. Real estate located in Illinois remains subject to Illinois estate tax regardless of domicile, so real estate restructuring may also be warranted. Income Tax Planning Illinois's 4.95% flat income tax is relatively simple in structure, but affluent residents still face meaningful opportunities to reduce their effective Illinois tax burden. When combined with Federal tax strategy, these approaches can significantly improve after-tax income and investment returns. Take Advantage of Illinois's Generous Retirement Income Exemption Illinois fully exempts nearly all retirement income from state tax. This includes distributions from 401(k) plans, traditional and Roth IRAs, pension income, and Social Security benefits. This can be utilized by retirees to shape smart retirement income-shifting strategies. Roth Conversion Strategy: Converting Traditional IRA assets to Roth IRA assets triggers income taxes at the Federal level but is exempt from Illinois state income tax. The primary benefit of a Roth conversion is tax-free growth and tax-free distributions in retirement. If you expect to be in a lower Federal tax bracket in certain years, that is the optimal time for a Roth conversion. Roth conversion strategies can be executed over multiple years to control tax implications by converting only the amount of your Traditional IRA assets each year that “fills up” your prevailing or target tax marginal Federal tax bracket. Unlike a Traditional IRA: Roth IRAs are not subject to Required Minimum Distributions during the owner’s lifetime Roth IRA beneficiaries are generally not subject to Income in Respect of a Decedent (IRD) taxes Pre-Retirement Deferrals: Deferring ordinary income through pre-tax retirement account contributions will result in greater tax-deferred growth and retirement distributions from those accounts being exempt from Illinois tax income taxes. Capital Gains and Investment Income There is no preferential capital gains rate at the state level, as Illinois taxes capital gains as ordinary income at the flat 4.95% rate. This means: Tax-loss harvesting can be particularly valuable in Illinois. Realized losses offset gains that would otherwise face both Federal capital gains tax and the 4.95% Illinois rate. Donating appreciated securities to a Donor-Advised Fund (DAF) avoids both Federal and Illinois capital gains entirely; a dual benefit for Illinois residents. Income Sequencing in Retirement Because Illinois exempts all retirement plan income, the order in which you draw from different accounts directly impacts your Illinois tax liability. A well-designed withdrawal strategy keeps as much income as possible in Illinois-exempt categories. Use Social Security income freely, which is fully exempt from Illinois state income tax. Draw from IRA and 401(k) first in early retirement (exempt from Illinois) while Roth accounts continue to grow. Roth distributions are completely tax-free Federally and exempt from Illinois income tax. Reserve Roth IRA distribution for later in retirement and highest-need years. Illinois 529 College Savings Plans Illinois offers one of the most generous 529 deductions in the country. Contributions to Illinois's Bright Start or Bright Directions 529 plans are deductible from Illinois taxable income up to $10,000 per taxpayer ($20,000 for married couples filing jointly) per year. For affluent families funding multiple children's education accounts, this deduction alone can save $495–$990 per year in Illinois taxes. Qualified Charitable Distributions (QCD) For charitably inclined individuals age 70½ or older, QCDs are one of the most underutilized tax-efficient charitable gifting strategies. A QCD allows each individual taxpayer to transfer up to $111,000 per year directly from your IRA to a qualified charity (2026), with the distribution excluded from your taxable income entirely. Unlike a standard charitable deduction, which only benefits you if you itemize, the QCD reduces your adjusted gross income at the source, meaning it delivers a tax benefit regardless of whether you take the standard deduction. For affluent families, this distinction matters enormously. A lower AGI can reduce Medicare premium surcharges, minimize exposure to the 3.8% Net Investment Income Tax, and keep more of your Social Security benefits from being taxed at the Federal level. Footnotes [1] Source: Illinois Attorney General Decedents Estate Tax Calculator Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Investors are bombarded with financial market predictions each and every day. Will the stock market go up or down? What will the Federal Reserve do next? Which sector will outperform? While these questions generate headlines, they often distract from a more important reality. The biggest drivers of your financial future are rarely the events dominating daily news. The most consequential economic forces tend to unfold slowly over years, not over weeks or months. They can reshape labor markets, influence inflation, alter investment returns, and create both risks and opportunities that can last for decades. Looking forward, three forces stand out as particularly important: Demographics Deglobalization The energy transition These forces are already underway, and understanding them may help investors make better decisions in a rapidly changing world. Demographics Demographics don’t usually generate exciting headlines. However, they are among the most powerful economic forces in existence. People age predictably, birth rates change slowly, and workforce participation evolves over decades. Because demographic trends are relatively easy to measure, economists often view them as one a more reliable indicator of future economic conditions. The United States is experiencing a significant demographic shift. The Baby Boomer generation is moving deeper into retirement. At the same time, birth rates have declined and labor force growth has slowed. As a result, the ratio of workers supporting retirees is shrinking. This has several important implications. A Smaller Workforce Can Mean Labor Shortages and More Innovation When fewer workers are available, businesses must compete more aggressively for talent. This trend has already contributed to wage growth in various industries and may continue to support higher compensation for certain workers over the coming decade. To maintain or increase economic output with fewer workers, industries such as manufacturing, retail, and healthcare are likely to continue investing heavily in technology, robotics, and artificial intelligence. Retirement Systems Face Increasing Pressure Demographic shifts can also place strain on retirement systems. Programs such as Social Security and Medicare were designed when there were significantly more workers supporting each retiree. As populations age, policymakers face difficult decisions regarding benefits, taxes, and funding mechanisms. While Social Security is unlikely to completely disappear, future adjustments are possible. Investors should avoid building retirement plans that rely entirely on government programs. A diversified retirement income strategy that includes personal savings, strategic asset location, and multiple income sources can provide greater flexibility regardless of future policy changes. Investment Implications An aging population tends to create demand in specific sectors, such as: Healthcare Manufacturing Medical technology and pharmaceuticals Senior related housing The key point is that evolving demographics influence economic growth, consumer spending patterns, labor markets, and investment opportunities. Investors who understand these shifts can better position their portfolios for the future. Deglobalization For much of the past 30 years, globalization was the defining force of economies throughout the world. Companies expanded supply chains across continents, manufacturing shifted to lower-cost regions, and international trade grew rapidly. As consumers, we benefited from lower prices and greater access to goods. However, global trade has more recently been exposed to political, regime change, and other vulnerabilities of highly interconnected supply chains. Geopolitical tensions, trade disputes, national security concerns, and pandemic-related disruptions have encouraged governments and corporations to rethink where products are manufactured and sourced. Rather than pursuing maximum efficiency, many organizations are now prioritizing resilience. This shift is often referred to as deglobalization, or regionalization. Inflation May Remain Higher Than Many Investors Expect Globalization helped suppress inflation for decades by allowing businesses to source labor and production wherever costs were lowest. As production moves closer to home or becomes more diversified across regions, costs may continue to rise. Building redundant supply chains, increasing domestic manufacturing, and maintaining strategic inventories can improve resilience, but it’s rarely the cheapest option. As a result, inflation over the next decade could remain structurally higher than many investors became accustomed to during the 2010s. This matters because inflation directly affects purchasing power. A retirement plan that works in a 2% inflation environment may look very different under a 3% or 4% inflation environment. Portfolio Construction Adaptation Investors should recognize that the economic conditions that drove investment returns over the past decade may not be identical to those of the next decade. Periods of higher inflation often increase the importance of having exposure to: Real assets and infrastructure Dividend-growing companies Businesses with strong pricing power Interest rate sensitive sectors Companies able to pass rising costs on to consumers may be better positioned than businesses operating with thin margins and limited pricing flexibility. The Energy Transition The global economy is undergoing one of the largest infrastructure transformations in modern history. While demand for oil and fossil fuel energy is largely expected to remain a major component of the global energy mix for decades to come, the transition toward cleaner energy sources is as much of an economic story as it is an environmental story. This transition is likely to unfold over decades rather than years. Energy powers everything from transportation and manufacturing to data centers, homes, and artificial intelligence. As governments, corporations, and consumers invest in new energy technologies, trillions of dollars are expected to flow into infrastructure, grid modernization, battery technology, electrification, and related industries. Energy Demand is Rising One misconception is that the energy transition automatically means lower demand for energy. In reality, global energy demand continues to grow. Artificial intelligence, cloud computing, electric vehicles, industrial modernization, and population growth all require significant amounts of power. The challenge is not simply generating energy, but generating enough of it while maintaining reliability, affordability, and sustainability. This creates investment opportunities across multiple areas such as natural gas, nuclear power, utility infrastructure, transmission networks, energy storage, and industrial materials. Opportunities and Risks for Investors Major transitions tend to create both winners and losers. Some companies will benefit from massive capital spending programs and changing consumer behavior while others may struggle to adapt. Predicting every winner would be challenging, or more likely unfeasible. Instead, investors may benefit from maintaining diversified exposure to various forms of energy and industries positioned to support energy production and infrastructure. Retirement Income Considerations The energy transition may also influence retirement planning in less obvious ways. Energy costs affect virtually every household expense category. Shelter, transportation, utilities, food prices, and consumer goods are all influenced by energy markets. Retirees living on fixed incomes may be particularly sensitive to periods of energy-related inflation. Building flexibility into retirement income plans can help households better navigate changing economic conditions over time. Conclusion The next decade will not be defined by the next Federal Reserve meeting, quarterly earnings report, or news headline. Rather, it will be shaped by deeper economic forces that are already transforming the global economy. An aging workforce can contribute to labor shortages and workforces that are costly to maintain. Deglobalization can diminish interconnectivity of the global economy, leading to inflationary pressures and more localized supply chains. The energy transition requires enormous capital investment and infrastructure spending. These three forces should not be viewed as isolated trends, as they are intertwined. Together, they may create an economic environment characterized by greater importance of productivity and innovation, more frequent shifts in leadership among sectors and asset classes, and new opportunities for investors willing to think long-term. This does not mean investors should make drastic portfolio changes based on predictions. It does however mean that financial plans built solely around assumptions from the past decade may deserve a fresh review. The most resilient financial plans are not built around forecasting headlines. They are built around understanding the long-term forces that influence wealth creation, purchasing power, and opportunity. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

This is one of the most common questions in personal finance, and for years the answer felt almost too easy. When mortgage rates were 3%, it generally made sense to invest extra cash instead of using it to pay your mortgage down faster. Why guarantee a 3% return paying down cheap debt when the stock market has delivered a roughly 10.0% annualized return since the inception of the S&P 500 index in 1957 [1]? That era is over, at least for now. The average 30-year fixed mortgage rate sits at approximately 6.6% as of June 2026, more than double where it was at the pandemic lows. This changes the calculation in ways that aren't immediately obvious, and the right answer now depends more on who you are than which option wins on a spreadsheet. How the Numbers Have Shifted The spread between the long-term historical return of the stock market and today’s average 30-year mortgage interest rate is roughly 3.5%. When looked at in a silo, this spread technically still favors investing. Yet, that simple math has three problems: The 10% stock market average is not guaranteed. The S&P 500 generated an annualized return of 14.8% between 2016 and 2025, but returns in individual years ranged from a 18.1% loss in 2022 to a 31.5% gain in 2019 [1]. Your mortgage rate, by contrast, is fixed. The certainty of the fixed interest rate has real value. The spread used to be much wider. At 3% mortgage rates, the gap between borrowing costs and expected market returns was roughly 7%. With borrowing costs at 6.6%, that spread narrows to around 3.5% and is subject to market volatility, tax drag on investment gains, and the behavioral risk of staying the course through a bear market while carrying significant debt. Most homeowners aren't choosing between two spreadsheet scenarios. They're making decisions under real constraints such as cash flow, job security, proximity to retirement, and emotional tolerance for debt. The Tax Picture in 2026 The tax treatment of mortgage interest is also a factor. The Tax Cuts and Jobs Act mortgage interest deduction limits remain in effect under the current One Big Beautiful Bill Act (OBBBA). Interest may only be deducted on up to $750,000 of acquisition debt for mortgages taken out after December 15, 2017. The catch is that you can only benefit from the mortgage interest deduction if you itemize your deductions. OBBBA maintained a generous standard deduction, which means the majority of homeowners receive no federal tax benefit at all from their mortgage interest because the standard deduction is higher than itemizing. For those who do have itemized deductions that exceed the standard deduction, the effective after-tax cost of a 6.6% mortgage in the 24% tax bracket is roughly 5.0%. That still narrows the advantage of investing over paying down the debt, but it doesn't eliminate it entirely. The Five Questions That Actually Decide This Five factors should drive the final answer: What is your mortgage rate? This is the most important variable. If you’re currently locked in a mortgage rate below 4%, then the math likely heavily favors investing instead of paying down the debt faster. A 3% mortgage is extraordinarily cheap money. There's no compelling financial case to accelerate paying off 3% debt when near risk-free investments like money market funds and short-term treasury bills are paying higher than that, let alone equity markets over a long horizon. If your rate is 6% or above, the case for paying down debt faster becomes more defensible and for some people, is the right choice. How close are you to retirement? The closer you are to retirement, the more weight the guaranteed return (i.e. fixed mortgage cost) deserves. A 35-year-old can ride out a three-year bear market. A 62-year-old planning to retire in three years cannot, at least not without real risk to their retirement income. “Sequence-of-returns” risk is a variable that spreadsheet models ignore: a large market loss early in retirement while drawing down assets for retirement expenses is far more destructive to long-term wealth than the same loss during your accumulation phase. Entering retirement debt-free eliminates one major fixed expense and reduces the amount you need to withdraw for expenses in future years. Is your emergency fund solid and do you have any high-interest loans? Your foundational financial infrastructure needs to be in place before the invest more vs. paydown your mortgage faster question even becomes relevant. The rule of thumb is to pay off any high-interest consumer debt first, then build (and maintain) a liquid emergency fund that could cover three-to-six-months of living expenses. If you have high-interest debt or don’t have an adequate emergency fund, then the best answer is to get your foundational financials in place first before worrying about the mortgage. Are you maximizing tax-advantaged accounts? Contributions to a 401(k) up to your employer’s maximum match percentage is an immediate return that overwhelms any comparison to investing vs. paying down your mortgage faster. A 50% or 100% employer match on 401(k) contributions is a guaranteed 50%–100% return before the money is even invested. The same logic applies to Health Savings Account (HSA) contributions if you have access to a high-deductible health plan. These come before any discretionary choice about accelerating your mortgage paydown. How could this impact your sleep? This sounds like a soft question, but it's a serious one. Behavioral finance research is clear that investors who carry debt they're uncomfortable with are more likely to panic-sell investments during market downturns. Panic-selling when the market is down turns a temporary paper loss into a permanent one. If carrying a mortgage causes you anxiety, then the psychological value of eliminating that mortgage debt may exceed the theoretical financial cost of paying it down early. The Framework For most, a prudent order of operations looks like this: Build a three-to-six month emergency fund and pay off any high-interest debt (credit cards, personal loans) Take advantage of your maximum employer 401(k) match Max-out your HSA contributions if you have a high-deductible health plan Then choose the pace at which you pay down your mortgage based on your interest rate, your timeline, and your temperament If your mortgage rate is below 5% and you're more than 10 years from retirement, invest the excess. If your rate is above 6%, you're within 5 years of retirement, or the debt genuinely keeps you up at night, then paying it down faster becomes a rational choice. The Answer That's Almost Always Wrong Going all-in on one side. Those who invest every spare dollar while carrying a 6.5% mortgage and zero emergency savings are taking on more risk than they recognize. Similarly, those who aggressively pay down a 3% mortgage while passing up an employer 401(k) match are leaving free money on the table. The best financial decisions aren't usually “either/or”. They're sequenced thoughtfully and deliberately, taking all relevant variables into consideration. That's where a financial advisor earns their keep. Not by running a spreadsheet, but by helping you see which numbers actually matter the most in your specific situation. Footnotes: [1] Source: SmartAsset, assumes all dividends reinvested. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Your financial journey is different, so your plan should be too. The reality is that women face a distinct set of financial planning needs, such as longer retirements to fund, careers that don’t always run in a straight line, life transitions that can reshape everything, and a legacy that matters deeply. Our job is to understand your full picture and to help you build lasting financial confidence, on your terms. The statistics are striking, but behind every number is a real woman navigating real decisions. Here’s what the data tells us about the financial landscape women face: Yet, these aren’t just statistics. They are the context in which your financial plan must live. A retirement that lasts 22 or more years. A career that may have paused to care for a child or an aging parent. A pay gap that quietly compounds into a retirement savings gap. Life transitions, divorce, widowhood, and business milestones can arrive without warning and demand clear-headed guidance. This guide was designed to outline the financial realities women navigate, the questions worth asking, and how our team is here to help at every stage. Get the Guide Sources CDC National Center for Health Statistics, National Vital Statistics Reports, U.S. Census Bureau, Pew Research Center "Caregiving in the U.S.“, McKinsey & Company “The new face of wealth: The rise of the female investor” Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Tax-advantaged strategy to save for qualified medical expenses. Participant needs to be enrolled in an HSA-eligible high-deductible plan to qualify for contributions. Key benefits include upfront tax deductions, employer contributions, and opportunity to grow account value. Key limitations include a tax burden for non-qualified expenses, limited healthcare plan selection, and unfavorable tax treatment at death. What is an HSA? An HSA is a savings account that allows eligible participants to set aside pre-tax funds for qualified medical expenses. To qualify for an HSA, the participant needs to be enrolled in an HSA-eligible high-deductible plan and meet other specific criteria. Funds from an HSA can be used to pay for unreimbursed medical expenses including deductibles, co-payments, and other medical services not covered by insurance. Unreimbursed medical expenses can be for current or prior medical expenses with best practice of keeping a track record of receipts. Contributions to an HSA come with limits set by the Internal Revenue Service. The contribution limits include employer and employee contributions. The contribution deadline for an HSA is generally April 15th. Key Benefits of an HSA There are three key benefits of an HSA plan: Upfront Tax Benefits: Employee contributions to an HSA plan are made on a pre-tax basis which reduces taxable income. The upfront tax benefit allows for lower federal, state (in most cases), and payroll tax liability. Employer Contributions: Employer sponsored HSA-eligible high deductible plans often come with an employer match as an employee benefit. The HSA contribution limits are a combined amount between employer and employee contributions. Opportunity for Tax-Free Growth HSA contributions can be saved and invested with potential for tax-free growth if used for qualified medical expenses [1]. Utilizing an HSA for qualified medical expenses in later years is an effective strategy for many HSA owners. Key Limitations of an HSA There are three limitations of an HSA plan: Tax Burden for Unqualified Expenses Using an HSA for non-qualified expenses triggers a substantial tax burden. For those under 65, a 20% tax penalty applies, and the distribution is taxable. For those over 65, the penalty is waived but the distribution is taxable. Limited Healthcare Plan Selection Qualifying for an HSA requires being enrolled in a high-deductible health insurance plan. While these plans tend to offer lower monthly premiums, they come with higher deductibles which may be an issue if you have high medical expenses. Unfavorable Tax Treatment at Death [2] While HSA’s are a great savings vehicle while living, the tax treatment at death are unfavorable. Conclusion HSA’s can be a powerful tool to incorporate in financial plans as they plan for inevitable medical expenses. It is important to recognize the limitations of this vehicle when considering this option. Footnotes: [1] California and New Jersey do not conform to federal tax treatment of HSA’s. [2] The taxable amount for a non spouse is full market value less medical expenses paid by beneficiaries within one year of owner’s death. If an estate is a beneficiary of an HSA, the HSA owner is taxed on final tax return. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

There’s an age-old question that most individuals begin to think about as they approach retirement; when should I start taking my Social Security retirement benefits? Claim too early, and you lock in a permanently reduced benefit. Wait too long, and you risk leaving years of income on the table. For most Americans, the difference between the earliest and latest claiming ages can amount to tens of thousands of dollars or more over a lifetime. So how do you figure out the right time? The answer depends on your health, finances, marital status, and how you think about risk. Understanding the Basics of Social Security Retirement Benefits You can begin collecting retirement benefits as early as age 62, but doing so comes at a cost. If you start claiming your benefits at age 62, the monthly benefit amount is permanently reduced by as much as 30% compared to what you'd receive at your Full Retirement Age (FRA). Your FRA is determined by your birth year. For anyone born in 1960 or later, your FRA is 67. You can also delay claiming your benefits until you reach age 70. For every year you wait beyond your FRA (up to 70), your benefit grows by 8%. For example, if your FRA benefit is $2,000 per month, you would receive as little as $1,400 if claiming at 62, or as much as $2,480 if waiting until 70. That's a difference of roughly $12,960 per year. The Break-Even Calculation A common starting point is to conduct a break-even analysis. Break-even represents the age at which the total lifetime benefits from delaying surpasses the total benefits you'd have collected by claiming earlier. Generally, if you claim at 62 instead of 67, you receive five extra years of payments, but each check is smaller. The break-even point typically falls somewhere between ages 78 and 80. If you expect to live past that age, then delaying tends to pay off financially. If you have serious health concerns or a family history of shorter lifespans, then claiming earlier may make more sense. While this is somewhat of a morbid calculation, Social Security at its core is a form of longevity insurance and the decision should reflect your honest assessment of your own longevity. Health Is the Single Biggest Variable No factor matters more than your health. The Social Security Administration's own data shows that average life expectancy for a 65-year-old American today extends well into the mid-to-late 80s. If you're in good health, a non-smoker, and have a family history of longevity, then waiting until age 70 is often the mathematically superior choice. If you're managing a chronic illness or have reason to expect a shorter-than-average lifespan, then claiming earlier can maximize your total lifetime benefit. Do You Need the Money Now? For many retirees, the decision often comes down to practicality rather than the mathematically superior choice. If you retire at 62 and have no other income sources to bridge the gap to age 70, then claiming earlier may be your only option. Burning through your savings or taking on debt while waiting to claim can easily wipe out any gains from the higher monthly benefit, and that is not typically a prudent route to choose. The ideal scenario for delaying is having sufficient retirement savings, a pension, or a working spouse's income to cover living expenses in the years before you claim. If you can fund your lifestyle without Social Security for several years, then letting your benefit grow by roughly 8% each year you wait is a compelling deal by any investment standard. Married Couples Have More to Consider For couples, Social Security timing becomes a coordinated strategy rather than an individual decision. Spousal benefits allow a lower-earning spouse to receive up to 50% of the higher earner's FRA benefit. After the first spouse passes away, the surviving spouse keeps the higher of the two monthly benefits. This dynamic makes it especially important for the higher-earning spouse to delay as long as possible. By waiting until age 70, the higher earner maximizes not just their own benefit, but also the surviving spouse's benefit that they may eventually need to rely on. The lower-earning spouse may also consider claiming earlier to bring in income during their higher-earning spouse's delay period. Working in Retirement If you plan to keep working after claiming, be aware of the earnings test. If you claim before your FRA and continue working, Social Security will temporarily withhold $1 in benefits for every $2 you earn above $24,480 (2026) and $1 in benefits for every $3 you earn above $65,160 (2026). Once you reach your FRA, the earnings test disappears and your benefit is recalculated upward to credit the withheld amounts. This doesn't necessarily mean you should avoid claiming while working, but it does add another layer of complexity worth modeling out before you decide. Taxes Matter Too Social Security benefits can be partially taxable depending on your total income. If your income (including your Social Security benefit) exceeds $34,000 for individuals or $44,000 for married couples, then up to 85% of your benefit may be taxable. Delaying Social Security while drawing from a traditional IRA or 401(k) can sometimes reduce your lifetime tax burden by lowering your taxable income in earlier retirement years. This may also shrink your future IRA or 401(k) required minimum distributions. The Bottom Line There is no universal right answer to when you should claim Social Security. Rather, the decision is personal and depends on your health, financial resources, marital situation, and retirement goals. However, if you’re healthy and have adequate retirement savings, then delaying Social Security benefits until age 70 tends to produce the best long-term outcome. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.

Every year, millions of investors fixate on the same number: the percentage return that their investment portfolio generated. They compare it to the S&P 500, discuss it at dinner parties, and use it as the primary scorecard for their financial health. This is understandable since returns are visible, quantifiable, and easy to benchmark. However, placing a singular focus on returns obscures a more important truth that investors who achieve lasting financial success are not always those who simply earned the highest returns. Financial success is more often achieved by those who make smart decisions across the spectrum of their financial life. Returns matter, although so does the tax bill you pay on your gains and income, the insurance policy that didn't cover what you thought it did, the estate plan you never updated after your second child was born, and the emotional decision to sell everything when the market drops by 20% in a month. These factors can quietly determine whether a financial plan succeeds or fails. Tax Drag Erodes Returns Consider two investors who each earn a 9% annualized return over 20 years. One investor achieves this in a tax-efficient manner by maximizing retirement account contributions, harvesting losses strategically, and thoughtful distribution sequencing. The other investor doesn't utilize tax-advantaged accounts, haphazardly realizes short-term gains, and ignores the tax consequences of each transaction. The difference in after-tax wealth at the end of those 20 years can be staggering. Tax planning is not a one-time event. It's an ongoing discipline that touches every corner of a financial plan. From how accounts are titled, to which assets are held in which accounts, to strategic income recognition in retirement, and so on. A thoughtful financial advisor can help to coordinate investment decisions with tax outcomes, resulting in greater after-tax returns over the long-term. Cash Flow Planning Matters More Than You Think Building wealth typically starts with cash flow, and cash flow planning examines how money moves through your life: what comes in, what goes out, what gets saved, and whether the trajectory supports your goals. Managing cash flow intelligently and efficiently over the long-term can make the difference between feeling financially stressed and feeling comfortable and confident in your assets being able to support your retirement lifestyle. Proper cash flow planning provides clarity around where you stand today, and where you’re headed if you follow the plan. This becomes especially critical at life transitions or events, such as retirement, the sale of a business, a career change, or receiving an inheritance. In each case, the question isn't only "how much do I have?" but "how do I deploy and draw from this in a way that sustains me for decades?" If you get the sequencing wrong, such as drawing from the wrong accounts at the wrong time or failing to plan for income gaps, it can have consequences that no investment return can fix. Risk Management: The Cost of What Doesn't Happen One of the most undervalued elements of financial planning is also one of the least glamorous: insurance and risk management. The right coverage rarely feels valuable, until it does. Unexpected events such as a disability that eliminates earned income, a liability judgment that isn't fully covered by insurance, or a long-term care need that drains a lifetime of savings don’t announce themselves in advance. The challenge is that risk management is difficult to quantify. Your account statements can't predict if or when something unfortunate and costly may happen to you. Yet, the absence of proper coverage when it’s needed most can undo decades of disciplined saving in a single event. A comprehensive financial plan stress-tests for these scenarios, ensures coverage is current and adequate, and treats risk management not as a foundation rather than an afterthought. Estate Planning: The Gift You Either Give or Leave to Chance Most people know they should have a will. Far fewer have one that's current, and even fewer have thought carefully about what happens beyond the basic document. Who controls assets if you become incapacitated? Are your beneficiary designations aligned with your actual wishes, or do they reflect a life you lived 15 years ago? Have you considered how an inheritance might affect a child who struggles with financial management? Is there a tax-efficient plan to pass the family business to the next generation, or will business be forced into a fire sale to generate liquidity for your heirs to pay estate taxes? Estate planning is ultimately an act of clarity and care. It ensures that your legacy and what you've built transfers according to your wishes, not by the state's formula, and not after a lengthy and costly probate process that depletes your estate and can strain family relationships. Coordinating an estate plan with your investment and tax strategy ensures that the full picture holds together, not just the pieces you can see today. Behavior: The Silent Variable Perhaps the most powerful determinant of financial outcomes isn't visible on any document at all. It's your behavior with money. Study after study has shown that the average investor significantly underperforms the funds they invest in. Instead of logically buying low and selling high, poor financial behavior commonly results in investors buying high and selling low, which is driven by emotions and biases such as recency and overconfidence. The gap between fund returns and investor returns is sometimes referred to as the "behavior gap," and can be costly. A good financial advisor functions as an investor’s behavioral anchor. Advisors help clients maintain discipline during market dislocations, distinguish between signal and noise, and avoid the kind of reactive decision making that can permanently impair long-term wealth. Conclusion: Financial Success is the Sum of Its Parts None of these variables operate in isolation. Tax decisions affect estate plans, cash flow drives savings strategy, risk management protects assets that the estate plan is meant to transfer, and behavior influences all of it. The value of working with a skilled financial advisor is the integration of all the variables in a coherent plan that adapts as your life evolves. Investment returns will always matter. They are a real and important input. However, they are just one variable in the full equation. Optimizing for that one variable while ignoring the others is like training intensely for a marathon while ignoring sleep, nutrition, and injury prevention. Most investors that achieve financial success are those who understand this and who surround themselves with the guidance to act on it. Disclosure RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information. Please note, this article is for education purposes and should not be treated as tax or legal advice. This article is not a substitute for legal or tax advice from your professional legal or tax advisor.