Client Newsletter 3Q25
Dear Ambassador Family,
Is it possible to keep more of your money—without guessing your way through changing tax laws and market swings? In this issue, we unpack timely strategies for 2025 that blend tax smarts with investment discipline, so you can stay focused on what matters most.
Deductions, Deadlines & Déjà vu: 2025 Tax Changes Unpacked
President Trump signed the One Big Beautiful Bill into law on July 4. While we have initial impressions, it will take time to digest the full implications of this new law on your taxes.
Some changes might bring welcome relief. These include new tax deductions for certain workers who earn tips or overtime, and higher standard deductions for seniors and lower-income families.
Still, many core tax rules remain unchanged—even though the bill passed.
- Social Security income will still be taxable.
- Capital gains rates aren’t going anywhere.
In short, taxes aren’t going away. That’s why using smart tax strategy still matters—and why we’re here to help you keep more of your money.
Depending on how you work with us, there are three main ways we can support you:
- Tax Preparation
We help you stay compliant and fully understand this year’s tax law changes. Don’t assume your return will look like last year’s—what worked in 2024 might not apply in 2025. - Tax Planning
If your income is high or varies year to year, we’ll help you plan around potential changes in the law. Many of the new deductions in the One Big Beautiful Bill are temporary and expire after 2028. This affects how—and when—you may want to realize income. We’ll work with you to create a strategy that helps you keep more of what you earn. - Tax-Efficient Investment Management
If we manage your investments, we use several tools to limit the tax bite:- We focus on generating “good” income—using tax-efficient vehicles—rather than chasing high-yield sources that create steep tax bills. REITs, annuities, and LPs might look attractive on paper but often come with hidden tax consequences. If you’re retired, those consequences could also raise your Medicare premiums (progressive tax).
- We use tax loss harvesting to offset realized capital gains—allowing you to reduce short-term taxes while staying invested for long-term growth.
- We help you choose the right investment vehicles (e.g., mutual funds vs. ETFs or notes vs. funds) to reduce unnecessary tax exposure.
At the end of the day, it’s not what you earn—it’s what you keep that matters most to your family’s long-term wealth. We’re here to help you build smart strategies and give less to the IRS.
Naming a trust as your IRA beneficiary often brings added cost, complexity, and higher tax exposure. For most families, listing individuals directly is simpler and more tax-efficient. But there are specific situations where a trust is the smarter—and sometimes necessary—choice:
- Minor children – A trust allows an adult to manage the inheritance and control distributions beyond age 18.
- Special needs – A special needs trust protects government benefits and allows lifetime IRA distributions under SECURE rules.
- Addiction or gambling issues – A trust can limit access and protect against poor decisions or outside influence.
- Elderly or vulnerable heirs – Trusts protect against scams and coercion by limiting how and when funds are accessed.
- Divorce or Creditor protection – A trust helps keep assets in the family and adds a layer of defense against legal claims.
Don’t name a trust just to “be safe.” Only do it when one of these real-world concerns applies—and make sure it’s drafted to comply with SECURE and SECURE 2.0 rules. Otherwise, you could end up with a tax problem you didn’t need.
Balancing Risk, Reward, and Resilience in 2025
We expected 2025 to bring volatility and opportunity. While some of the specific drivers have taken different forms, the early excitement hasn’t impressed us. Despite serious concerns—like Israel’s strike on Iran—markets are roughly flat for the year.
This return to neutral hides a story. The year began with exuberance, only to fade into a moderate decline leading up to April’s Liberation Day, when renewed tariff fears weighed on markets. Since then, stronger economic data and easing trade tensions have brought us back near where we started.
Economic growth has been more resilient than we anticipated, though interest rates remain persistently high. Infrastructure investment has been a tailwind, while government spending and housing continue to pose challenges. Headline inflation is easing nicely, even as job growth slows.
Following the spring correction, we shifted to a more neutral risk posture. Your portfolio remains structured across three buckets: income, diversification, and growth. Each contains a blend of core holdings and targeted sleeves that seek opportunities in specific sectors and themes.
Income: We continue to favor U.S. Treasury bills. We’ve also included a fund that invests in mergers, acquisitions, and other corporate events, offering comparable or slightly higher return potential with measured volatility.
Diversification: This bucket includes a commodity sleeve—better described as a “paper currency alternative”—with exposure to precious metals and crypto ETFs. It also includes a hedged equity long-short manager.
Growth: In addition to core U.S. large-cap stocks, we’ve expanded our international sleeve. Previously, it focused solely on India, which continues to offer strong long-term potential supported by falling inflation and interest rates. We’ve now added diversified small-cap international exposure.
We also introduced a New Economy Growth sleeve focused on themes benefiting from U.S. infrastructure investment. The bulk of this sleeve is in materials—like rare earths, copper, and uranium—and niche technology opportunities.
As of July 1, 2025, big changes are underway. Washington has raised the individual estate-tax exemption to $3 million (indexed for inflation)—a welcome shift for many. But for higher-net-worth families, the news isn’t all good:
- The top estate-tax rate jumps from 20% to 35%
- The capital-gains surtax rises to 9.9% on annual gains above $1 million—retroactive to 1/1/25
New deductions offer relief for qualified family businesses and farms, but anyone with a projected estate above $3 million should revisit their plan.
Planning moves to consider now:
- Know your net worth—include life insurance, retirement accounts, and real estate.
- Review estate documents—confirm trust funding & portability.
- Consider CRTs or charitable-lead trusts for tax-efficient giving & income.
- Use gifts or sales to shift future growth out of your estate.
- Harvest gains early to avoid the 9.9% surtax.
- Schedule a mid-year planning session with your fiduciary team.
We’d love to help you get ahead of the year-end deadlines.
Why You Need a CPA and a Fiduciary Planner on Your Side
You’ve already done a lot right—that’s exactly why having a real financial plan pays off. Planning isn’t just for when things go wrong. It’s what makes sure your good decisions compound over time.
You might be thinking, “I already have a CPA.” And that’s a great start. But here’s what a fiduciary financial planner brings to the table:
| CPA Role | Planner Role |
| Files last year’s taxes accurately. | Models the next 10–30 years to help you avoid taxes, not just report them. |
| Responds to what’s already happened. | Anticipates changes—career moves, market cycles, the 2028 tax sunset—and prepares for them in advance. |
| Focuses on one slice of your finances. | Integrates everything: investments, insurance, debt, income, college, estate, and charitable goals. |
Tangible Benefits You Might Feel
- More money in your pocket. Strategies like Roth conversions, tax-loss harvesting, and charitable planning might save you tens of thousands over time.
- Risk you can sleep with. Stress-testing your plan might help you prepare for events like a recession or disability—with the right coverage or reserves in place.
- Clarity on big decisions. Questions like “Can we buy the beach house?” or “When can I quit corporate?” might get you real answers, not guesswork.
- One quarterback. Your planner can now coordinate with your CPA, attorney, and investment custodian—so you’re not stuck managing the team.
- A locked-in legacy. Updated estate documents and beneficiary strategies potentially help protect more of your wealth from taxes—especially before the 2026 estate tax rollback.
The Bottom Line
A fiduciary planner doesn’t replace your CPA—they maximize the value of your CPA’s work by coordinating your entire financial picture. The earlier you start, the more strategies you can use and the more compounding you capture.
You already know how to manage your money. Now imagine the results when every dollar has a coach working just as hard as you do.
Sincerely,
Petr Burunov, CFP®
President / Wealth Strategist