highland-investment-advisors

1st Quarter 2026 Market Review

Tue, 14 Apr 2026 21:18:12 GMT

Below is a summary of the first-quarter 2026 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

1Q26 Market Performance

��The US equity market posted negative returns for the quarter and underperformed both non-US developed markets and emerging markets. Value outperformed growth . Small caps outperformed large caps .

��US REIT ( real estate investment trusts) indices outperformed equity market indices.

�� Short-term and long-term interest rates generally increased during the quarter. The yield on the 10-Year US Treasury Note increased 0.12% to 4.30%.

��The Bloomberg Commodity Total Return Index returned +24.41% for the first quarter of 2026.

Q1 2026 Market Review

The first quarter of 2026 opened with strong momentum but ended with a noticeable shift in tone. Markets began the year on solid footing—growth was holding up, inflation was near target, and January delivered strong economic data. But by March, rising geopolitical tensions and a sudden spike in oil prices pushed investors toward caution. What started as a continuation of 2025’s optimism turned into a quarter defined by uncertainty and a reassessment of risk.

Major U.S. Stock Indices

January extended the enthusiasm of late 2025, with major U.S. indices pushing toward record highs. AI‑related names and large‑cap technology initially led the way, but the market quickly became more selective. Companies with strong balance sheets and consistent earnings held up better, while speculative growth and high‑valuation tech stocks came under pressure.

By quarter‑end, the shift was clear. Growth‑ and rate‑sensitive sectors corrected, and investors rotated toward energy, commodities, and other real‑asset exposures. The major U.S. indices finished the quarter lower:

· S&P 500: –4.63%

· Nasdaq 100: –5.98%

· Dow Jones Industrial Average: –3.58%

The Economy: Still Growing, But Showing Strain

The U.S. economy entered 2026 in relatively good shape. Household finances were stable, and January’s jobs report nearly doubled expectations. But as the quarter progressed, the data softened. Consumer sentiment slipped, hiring plans slowed, and February brought an unexpected loss of roughly 90,000 jobs. Wage growth remained positive, suggesting a cooling—not collapsing—labor market.

The Federal Reserve: Holding Steady for Now

The Fed held rates steady at 3.50%–3.75% at both its January and March meetings. What changed was the outlook. Markets began the year anticipating several rate cuts, but by March those expectations had largely disappeared as inflation remained stubborn and rising oil prices added fresh pressure.

Rising oil prices further tightened the Fed's constraints. With energy costs threatening to keep inflation elevated, rate cuts could be delayed well into the year. The practical takeaway: don't count on falling rates to do the heavy lifting. Policy is likely to remain restrictive — supportive of income from cash and quality bonds, but offering little tailwind for equity valuations.

Oil and Geopolitics: The Quarter’s Wild Card

The biggest surprise of Q1 was the rapid rise in oil prices. Crude surged above $100 per barrel after the conflict between the United States and Iran escalated on February 28, disrupting tanker traffic through the Strait of Hormuz—a key global shipping route.

The conflict continued through March, and while President Trump has expressed interest in ending the war, the timeline remains uncertain. For markets, the immediate impact has been higher energy prices and increased volatility.

For clients, the message is simple: Geopolitical shocks can move markets in the short term, but they rarely change long‑term financial plans.

Looking Ahead to Q2 2026

The next quarter will bring important updates:

· Monthly inflation and labor reports (CPI, PPI, jobs data)

· T wo Federal Reserve meetings: April 28–29 and June 16–17

· Market expectations currently point to no rate change in April

The longer‑term effects of the conflict in Iran remain unclear, but the short‑term pressures—especially on energy prices—are likely to continue.

The focus remains on staying disciplined. Diversification, quality holdings, and a long‑term perspective continue to be the most reliable tools in navigating periods like this.

Your tax return is trying to tell you something

Tue, 14 Apr 2026 14:52:16 GMT

Your tax return is trying to tell you something

You just finished your taxes.

Take a look at your return, specifically your long-term capital gains on Schedule D.

If that number was meaningful (again?), it’s worth asking a simple question:

Was it intentional, or just the byproduct of your portfolio?

Most investors we meet aren’t getting proactive guidance here.

They’re reacting to gains instead of managing them.

If you’re open to a second look, we can walk through:

-how those gains are being generated

-whether they could be reduced or better timed

-how it fits into your broader plan

Job Posting - Financial Advisor in Brookfield, Wisconsin

Thu, 26 Feb 2026 16:07:42 GMT

POSITION : Financial Advisor

LOCATION : Brookfield, Wisconsin

DESCRIPTION :

At Highland Investment Advisors, we are seeking a financial advisor who is ready to step into meaningful responsibility and long-term opportunity. This role is structured as a transition of an existing client base over the next two to three years, alongside expectations of proactive new business development. The ability to thoughtfully serve and adapt to an established client base is essential.

The ideal candidate brings 2–5+ years of experience in a financial advisory role, with demonstrated success serving mass affluent and high-net-worth clients. This position emphasizes developing comprehensive financial plans and clearly articulating investment strategy and portfolio construction. This is a full-time, primarily on-site role, with flexibility for remote work as appropriate.

QUALIFICATIONS :

-Demonstrated reputation for integrity, sound judgment, and fiduciary responsibility.

-Genuine commitment to helping clients achieve meaningful life and financial outcomes.

-Series 65 license in good standing.

-CFP® designation or significant progress toward completion.

-The ability to cultivate long-term client relationships.

-An existing book of business is highly desirable.

About Highland Investment Advisors :

Highland is a partner for individuals and independent financial advisors. We provide fee-only wealth management guidance grounded in a deep understanding of each client’s situation and goals. Clients benefit from sophisticated investment and financial planning expertise delivered with personalized service from an independent firm. Our offices are located in Brookfield, Wisconsin, and Ponte Vedra, Florida.

At Highland, we value accountability, continual improvement, and entrepreneurial thinking, while treating one another with respect, clarity, and empathy. Results matter, and so does quality of life.

If interested, please send a cover letter and resume to adrake@highlandinvestmentadvisors.com

What’s Driving the Volatility in Precious Metals?

Mon, 02 Feb 2026 18:49:55 GMT

The price of precious metals, particularly gold and silver, went vertical in January... in both directions. Gold prices (as measured in US dollars) finished the month with an increase of 12%. Below is a two-year chart of gold prices.

Silver prices jumped by 17% for the full month, after including a -25% drop on January 30th. Below is a two-year chart of silver prices.

Why are precious metals, which have been the foundation of “money” for five millennium, trading with such high volatility? Why are they acting like a speculative cryptocurrency or a meme stock?

Please allow me to quote Ernest Hemingway, as he wrote about a how a bankruptcy occurred, “Two ways. Gradually, then suddenly.”

Precious metals have been trending higher for years, but suddenly experienced a dramatic re-pricing.

A structural shift in demand for precious metals occurred in 2022, following the seizure of Russia’s assets held with international banks. Other foreign central banks started to diversify away from US Dollars and US Treasuries towards physical gold to offset the counter party risk. Geopolitical risk increased this month. With $39 trillion of US government debt outstanding, the value of which is falling due to the declining value of the US Dollar, maybe the market has reached a tipping point?

Inflation has been persistently high for five years. While the rate of change has declined, it remains elevated. Maybe the market believes precious metals offer better protection against the depreciation of purchasing power?

There are fundamental reasons for the move. Silver has industrial uses, particularly for highly specialized components requiring electricity conductivity, such as solar panels and electric vehicles, and artificial intelligence data centers. What can often occur in a very tight market for a physical commodity, where the last marginal buyer is price-insensitive, is the price can spike and remain high until enough of the physical supply can enter the market to push the price down. Look at copper prices as yet another example of a physical commodity with inelastic demand from moving electricity to power AI with constraints on digging a new mine to increase physical supply. Most simply stated, way too many buyers and not enough sellers with supply.

Maybe the market’s reaction to the nomination of Kevin Warsh for Federal Reserve was responsible for the sharp sell off? Or maybe that’s an instance where correlation is not causation but rather a coincidence.

Pure speculation is likely the largest part of the move. Commodities trade via futures contracts with various margin requirements that create up to 10-to-1 leverage. Small moves can quickly turn into large moves, because of this leverage. This is amplified with silver, given its lower price-per-ounce as “poor man’s gold,” and creates herd behavior. There are many investment strategies specifically designed to follow these trends in momentum, pushing things further in both directions. Moves are exacerbated with easy trading access through exchange traded funds, and those which offer leverage. Stories of large positions by both retail traders and trading institutions getting whipsawed came out after the move.

4th Quarter 2025 Market Review

Fri, 09 Jan 2026 21:09:54 GMT

Below is a summary of the fourth-quarter 2025 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

4Q25 Market Performance

��The US equity market posted positive returns for the quarter and underperformed both non-US developed markets and emerging markets. Value outperformed growth . Small caps underperformed large caps .

��US REIT ( real estate investment trusts) indices underperformed equity market indices.

�� Short-term interest rates generally decreased and long term interest rates generally increased

during the quarter. The yield on the 10-Year US Treasury Note increased 0.02% to 4.18%.

��The Bloomberg Commodity Total Return Index returned +5.85% for the fourth quarter of 2025.

Q4 2025 Market Commentary

The final quarter of 2025 brought its share of challenges but ultimately ended positively for global markets. Despite periods of volatility, most major asset classes delivered gains, with the S&P 500 rising 2.7% and the Aggregate Bond Index up 1%.

The US equity market posted gains for the quarter but lagged behind both developed and emerging markets abroad. Several of the year’s prevailing trends shifted during the period. Growth stocks (+2.2%) lagged value (+3%), and defensive sectors took the lead. Healthcare was a notable standout, rising roughly 12% as investors sought more stable areas of the market. In contrast, large‑cap technology—responsible for much of the year’s earlier strength—underperformed as valuations became increasingly stretched. Precious metals such as gold and silver also extended their strong performance, supported by the ongoing demand for defensive assets.

Full‑Year 2025: A Remarkably Resilient Market

Despite policy uncertainty and macroeconomic disruptions, both U.S. and global markets demonstrated notable strength throughout 2025.

The S&P 500 gained nearly 18% for the year and recorded 39 new all‑time highs.
International markets outperformed, with the ACWI ex‑US Index returning 32%—its best year since 2009.
Bond markets posted solid gains as well, with the Aggregate Bond Index returning 7.3%, supported by yield carry and the Fed’s easing measures.

Economic Commentary

Fed Lowers Rates Again

The Federal Reserve enacted another rate cut in December, bringing the policy rate down to the 3.5%–3.75% range. This marked the third reduction in 2025 and reflected the Fed’s continued effort to support economic stability amid shifting conditions.

Treasury yields generally trended lower throughout the year. The benchmark 10‑year yield spent much of the period fluctuating between 4% and 5% before settling in the low‑4% range by year‑end. Core bond funds once again played their traditional role as portfolio stabilizers, offering steady income and helping cushion portfolios during periods of equity market volatility.

While the latest rate cut provided additional monetary easing, policymakers also signaled a more measured stance heading into 2026. Signs of a cooling labor market—such as slower hiring, rising part‑time employment, and more uneven job data—suggest that the Fed may proceed more cautiously as it assesses the appropriate pace of future adjustments.

Inflation and Labor Market

The Fed’s final policy decision of the year was informed by September economic data, which showed unemployment edging up to 4.4% and core inflation rising to 2.8%. These indicators pointed to a labor market that is softening but not weakening uniformly, with shifts in work patterns and increased part‑time employment contributing to a more complex picture. Despite these evolving dynamics, the broader economy continued to demonstrate resilience, supported by steady consumer activity and generally stable business conditions.

Your Advocate Aurora Health System Benefits & Career: Financial Planning for Employees and Executives

Thu, 30 Oct 2025 18:23:20 GMT

Our Brookfield, Wisconsin advisor Bob Dignan, CFP®, AIF® was featured in a Wealthtender article! If you or someone you know is part of the Advocate Aurora Health System, you’ll want to take a look: Read More

Year End Checklist

Wed, 15 Oct 2025 17:22:01 GMT

Year End Checklist 2025 Edition

Highland Investment Advisors works best when combining financial planning with investment advice by taking a tax-aware approach. By understanding how your financial pieces can fit together, we can provide specific advice tailored to your situation.

We are approaching the end of the year and there are a number of things to get done while there is still time. The following are a few things we should consider.

Or contact me directly, and I can curate this list specifically for you and your family.

Employer Retirement Plans – 401k

Let’s look at your last paycheck stub to see how much you have contributed to your employer’s 401k retirement account. The goal is to contribute as much as possible to take advantage of the preferred tax treatment of these types of accounts.

• For 2025, the maximum you can contribute is $23,500.

• If you are 50 years old or older, you can contribute an additional $7,500 for a total of $31,000.

• New for 2025, if you are ages 60 to 63, you can contribute an additional $11,250 for a total of $34,750.

Mega Backdoor Roth Contribution via a 401k plan

psst…This one is a little-known secret.

Let’s review your 401k “Summary Plan Description” which contains the details of your employer’s plan. Many plans (but not all) allow for additional contributions to bring the total allowable contributions up to $70,000 (or more if aged 50 or older).

This amount consists of:

• your contributions up to $23,500 (either pre- or post-tax),

• plus the employer’s matching contribution (pre-tax),

• plus an additional “after-tax” contribution from you that can be immediately converted into a Roth 401k balance,

• for a total contribution of $70,000 (or more if aged 50 or older).

It is an excellent way to save more in a way that can grow in a tax-exempt Roth account, especially if you are expecting a year-end bonus.

Own a business or have a side hustle?

Have you set up a retirement plan for your business or side hustle? There are a number of options to consider. Let’s talk about these to see which type of retirement plan fits best with your business and objectives. It may be a way to reduce your taxable income this year while also saving for the future.

Flex Spending Accounts “FSA”

Many employers offer a flexible spending account that allow money to be set aside pre-tax to be used for such things as dependent care or health related expenses. However, these accounts need to be used by year-end or the funds may be forfeited. Let’s make a plan to use these dollars before it’s lost.

Health Savings Accounts “HSA”

If your family’s health insurance plan is considered to be a high-deductible health plan it may also be an HSA eligible plan. If so, for 2025, a family is allowed to contribute up to $8,550 into a Health Savings Account (“HSA”).

These accounts are triple tax exempt(!), meaning that you first get a tax deduction for the contribution into the account, the earnings are exempt from tax, and distributions from the account for qualifying medical expenses are also tax-free.

529 Plans for Education Savings

While we are saving money in a tax-advantaged way, consider saving for your child’s (or grandchildren’s) education. Earnings on these accounts are exempt from tax, and distributions from the account for qualifying educational expenses are also tax-free.

Wisconsin even offers a tax deduction up to $5,130 per student.

Buy a new car?

The interest on loans for new cars, assembled in the United States, is tax deductible now through 2028.

Itemized vs. Standard Tax Deduction

One of the more significant changes to tax laws from the One Big Beautiful Bill is the increase of the amount allowed to be deducted for state and local taxes (referred to as SALT). Starting in 2025, the limit for SALT deductions has increased to $40,000, up from $10,000 previously.

This may create an opportunity for you to save on income taxes by “bunching” your itemized deductions into a particular calendar year to increase the amount of your deductions above the standard deduction of $31,500 (for a married couple).

It might be advantageous to pay your property real estate tax bill in 2025. Or make two years’ worth of charitable contributions this year, to take full advantage of the higher itemized limits. Or make an estimated tax payment to the state before December 31st. As always, talk to your tax professional for details.

Donation of Appreciated Securities

Rather than selling an investment and incurring a capital gain to generate cash for a gift to charity, consider donating that security directly to the charity. This allows you to avoid the capital gains and still receive a tax deduction for the fair market value of the securities donated.

Check your Estimated Tax Payments and Payroll Withholding

To avoid underpayment penalties, make sure you are on target to pay in either a.) 110% of your 2024 total tax, or b.) 90% of 2025’s estimated tax (within $1,000).

Watch out for bonus payments, which may not withhold enough for taxes. Typically, they only withhold at a 22% rate, but your marginal tax rate may be higher.

Effective Tax Rate and Marginal Tax Rate

Your effective tax rate is the percentage of your total income you pay in income taxes.

Your marginal tax rate is the percentage you pay on the next dollar of income.

Many of the recommendations here help to reduce your taxable income and lower the amount taxed at your marginal tax rate. If you are in the 37%, 35%, 32%, and even the 24% marginal tax brackets, these can be meaningful savings.

Tax Loss Harvesting

Although equity markets are at all-time highs, you may still have positions in your taxable investment portfolio that are at a loss. Consider selling to recognize the loss for tax purposes.

This loss can first be used to offset taxable capital gains generated elsewhere. Then up to $3,000 can be deducted against your ordinary income. Additional losses can be carried forward into future years. When reinvesting the proceeds, be sure to watch out for the Wash Sale Rules which could result in that loss being disallowed.

Required Minimum Distributions (RMDs)

Turning 73 this year? Happy birthday.

You have until April 1st, 2026 to take your first required minimum distribution from most retirement accounts such as your Traditional IRA or 401k.

But don’t wait that long. It may be more advantageous to start the process sooner.

Roth Conversions

Let’s look at your estimated income for 2025 and the marginal tax bracket you are likely in. If your tax bracket is low this year, consider converting funds from your Traditional IRA or 401k into a Roth IRA. This may reduce the amount of tax you pay over your lifetime, particularly if your projected RMDs may be significant. This technique often works amazingly well in the early years of retirement.

Roth IRAs are wonderful “tax exempt” accounts that can grow tax free.

Let Highland do some math for you to help quantify this decision.

Premium Tax Credit for health insurance

Currently, a refundable tax credit is available for the purchase of health insurance through HealthCare.gov by lowering monthly payments or claiming on your tax return. The income qualifications make eligibility and the amount of the credit quite complicated. Let’s run a projection.

Harvesting Capital Gains at 0%

The capital gains tax rate for is 0% for married couples, up to $96,700. Again, let’s look at your estimated income for 2025. Maybe this is an opportunity to make your investment portfolio much more tax-aware.

Watch out for capital gain distributions!

Certain investment structures, like mutual funds and some ETFs, distribute income annually to shareholders. This can trigger taxes (unnecessarily in my opinion). This may be a good time to change your portfolio to a more tax-aware approach.

Make Tax-Aware Investment Decisions

Let’s review where your investments are held to minimize the tax drag. Keep tax efficient assets, like ETFs and index funds, in your taxable account. Higher income and active strategies are better kept in tax-advantaged accounts.

Depending on your marginal income tax rate, tax exempt (or double tax exempt) municipal bonds may be advantages.

Rebalance your Portfolio

Strong returns may have tilted your investments towards more risk than you may be willing to accept. But let’s be thoughtful about rebalancing before incurring capital gains in a taxable account. Reallocations in tax advantaged accounts may be more efficient.

Create a Plan for 2026 and 2027 Cash Needs

The “distribution” phase of your financial life involves living off the investment portfolio you spent your life accumulating. Plan out your spending needs for the next couple of years, and match this to your investment strategy. While your nest egg still needs to grow, don’t take unnecessary risks with your spending cash. It may reduce anxiety when markets get volatile.

Stop accumulating cash in your checking account

Yields are still attractive, especially compared to what little is offered in a checking account.

While this may seem overwhelming, Highland Investment Advisors can help you simplify this. We understand how each of these pieces fit together and customize our advice to your situation.

This commentary should be considered informational only and should not be considered tax or investment advice. It is recommended that you speak to a tax and/or investment professional directly to determine how this may impact your situation.

3rd Quarter 2025 Market Review

Fri, 10 Oct 2025 19:05:20 GMT

Below is a summary of the third-quarter 2025 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

Market Performance

��The US equity market posted positive returns for the quarter and outperformed non-US developed markets but underperformed emerging markets. Value underperformed growth . Small caps outperformed large caps .

��US REIT ( real estate investment trusts) indices underperformed equity market indices.

�� During the quarter, interest rates decreased within the US Treasury market. The yield on the 10-Year US Treasury Note decreased 0.08% to 4.16%.

��The Bloomberg Commodity Total Return Index returned +3.65% for the third quarter of 2025.

3Q25

Economic Overview

Key Themes in the U.S. Economy
The third quarter of 2025 showcased the economy’s competitiveness, with stronger-than-expected growth, the continued dominance of AI-powered sectors, and steady consumer demand. At the same time, trade tensions, monetary policy shifts, and a cooling housing market suggest that risks remain and a sound footing matters.

 Consumers Keep Spending

U.S. gross domestic product (GDP) growth in Q3 is expected to remain strong. The Atlanta Fed’s GDP tracker now puts third-quarter growth at 3.9%, up from an earlier estimate of 3.3%, citing consumption data and a narrower trade deficit in August.

The biggest engine of growth remains the American consumer. Discretionary spending — often the first to weaken when households feel stressed — led the way this quarter. Durable goods orders in August beat expectations, and income and spending reports confirmed that families are still spending.

Business investment gained momentum in Q3 as companies responded, in part, to healthy consumer demand. Orders for capital goods and machinery jumped in August, giving manufacturing a welcome boost. Meanwhile, the U.S. trade deficit narrowed, providing a positive offset to tariff pressures and helping support overall growth.

Higher-income households continue to drive luxury purchases, travel, and discretionary spending, while lower-income groups face pressure from inflation and rising borrowing costs. Credit card delinquencies are edging higher, and some regional data points to pockets of weakness, especially in lower-tier retail.

The consumer savings rate, now around 4.6%, suggests households are dipping into reserves but are not yet overextended. For investors, this means the consumer story is mixed: premium brands and services are holding up well, while budget-focused retailers may face more turbulence.

Housing Hits a Speed Bump

The U.S. housing market stumbled in Q3. Building permits sank to pandemic-era lows, while new single-family starts dropped 6% from last year in August. High prices and steep borrowing costs kept many would-be buyers on the sidelines, and inventory swelled to its highest level since the Great Recession, excluding the Covid years.

Mortgage rates eased a bit after the Fed’s September cut, but that relief wasn’t enough to spark much buyer interest in the third quarter. With affordability stretched, wages cooling, and credit tighter, many households still find ownership out of reach.

Tariffs Cloud the Outlook

Trade tensions are still a key headwind. Companies are adapting by reshoring operations, boosting regional production, and tightening inventory management — clear signs of agility, but also a reminder that policy risks are unlikely to fade quickly.

Balancing Opportunity and Risk

Overall, the U.S. economy remains impressively resilient. Consumers and businesses continue to sustain momentum, even as housing weakness, lofty valuations, and policy risks call for vigilance. Technology and AI have delivered exceptional returns, but have also concentrated risk. Diversification remains the best way to smooth out volatility.

As always, our focus remains on long-term goals and strategy, while keeping you informed of current market developments. If you have any questions or concerns, don’t hesitate to reach out. I’m always here as a resource for you. Lastly, many clients tell us they wish they'd reached out sooner. If someone you care about might benefit from a conversation with us, consider sharing Highland’s name. We promise to make your recommendation look good. �� 414-755-2309 x101 or schedule a call here .

Five Risks of Roth Conversions

Thu, 25 Sep 2025 17:51:36 GMT

Five Risks of Roth Conversions

By: Adam Stoeckler, CFP®

Investment Advisor Representative

September 25, 2025

Roth conversions are grabbing headlines in the world of retirement planning, and for good reason. The concept is simple: move money from a traditional retirement account, like an IRA or 401(k), into a Roth IRA, pay taxes now, and enjoy tax-free growth and withdrawals later. Sounds great, right?

While Roth conversions can be a powerful strategy, there are potential “landmines” that you should keep in mind and plan for if you are considering converting traditional IRA funds to Roth.

Here are five key risks to be aware of. As always, you should consult with your financial advisor in coordination with a tax professional before making a move.

1. A Big Tax Bill Now

When you convert money to a Roth IRA, the converted amount is added to your taxable income for the year. For example, if you convert $100,000 in a single year, that money could push you into a higher tax bracket and result in a substantial tax bill.

• Why it matters: Paying this tax upfront can reduce the amount of money actually growing in your Roth. Using retirement funds to cover the tax further diminishes the benefit of the conversion.

• Consideration: Spread conversions over multiple years to manage the tax impact and avoid jumping into a higher bracket all at once. Consider using non-qualified dollars outside the IRA to pay the tax bill.

2. Higher Medicare Premiums

Medicare Part B and Part D premiums are tied to your income. A large Roth conversion can temporarily raise your Modified Adjusted Gross Income (MAGI), triggering higher premiums that would take effect in the second year after the conversion.

• Example: A couple with moderate income who does a $100,000 conversion could see Part B premiums increase by hundreds of dollars per month, totaling thousands over time.

• Why it matters: Unexpectedly higher Medicare premiums can offset some of the tax-free growth benefit of the Roth. Planning conversions carefully around anticipated income levels is essential.

3. Reduced Health Insurance Subsidies

If you purchase private insurance through the Affordable Care Act and qualify for premium subsidies, a Roth conversion counts as income.

• Impact: The extra income can reduce or eliminate subsidies, leading to higher monthly premiums or even a repayment at tax time.

• Example: Someone expecting a $3,000 premium credit could see it reduced to $1,000, effectively adding $2,000 in health costs due to the conversion.

• Planning tip: Coordinate Roth conversions with health insurance planning to avoid unexpected costs.

4. Estate Planning Considerations

Roth IRAs are often touted for their tax-free growth and ability to leave money to heirs. However, in some cases, keeping money in pre-tax accounts may be more efficient.

• Why it matters: If your heirs are expected to be in lower tax brackets than you, leaving pre-tax accounts for them may minimize overall taxes.

• Additional factor: Some estate strategies involve intentionally deferring conversions to optimize the tax impact across generations. Consulting an advisor can help determine the best approach for your situation.

5. Liquidity and Cash Flow Concerns

Paying taxes on a Roth conversion is ideally done from outside retirement funds (see #1, above), so that the full converted amount grows tax-free.

• Potential problem: If you don’t have the cash available, using retirement funds to pay taxes reduces the long-term growth potential.

• Why it matters: For retirees on a fixed income, a large conversion could strain cash flow or force difficult trade-offs with other expenses. Planning conversions in manageable amounts over several years can mitigate this risk.

Bottom Line

Roth conversions can be a smart way to secure tax-free growth, but they come with trade-offs. Understanding the implications for taxes, Medicare premiums, health insurance subsidies, estate planning, and cash flow is essential before making a move.

If you’d like a detailed Roth conversion plan tailored to your specific situation, contact us today. Our team of financial advisors can help you weigh the benefits, minimize the risks, and create a strategy that works for your retirement goals.

Disclosures:

Advisory services are offered through Highland Investment Advisors, LLC a SEC Investment Advisor. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than where legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital. The opinions expressed in the sources above do not necessarily reflect those of Highland Investment Advisors, LLC and are subject to change without notice.

My Portfolio Is Fine: Why Do I Need a Financial Advisor?

Thu, 18 Sep 2025 17:29:06 GMT

My Portfolio Is Fine: Why Do I Need a Financial Advisor?

By: Scott J. Keipper, C.P.A./P.F.S.

Investment Advisor Representative

September 18, 2025

This question has been asked by many who don’t feel the need to have a professional help them with their money. After all, with countless publications about money and investments, insights provided by clients’ brokerage houses, internet research (now with the assistance of AI), robo investing, advice from friends and family, and myriad other sources, it is no wonder many feel they can do as well as professional financial advisors and planners without paying related fees. It is relatively simple to structure a low-cost portfolio of index funds or ETFs and feel that one is ahead of the game and can do as well or better than those receiving professional advice. And for many investors, that is not a bad way to go. However, when you consider how an advisor can add value via strategic asset location, proper diversification of investments, various tax planning methods including gain and loss harvesting among many others, Roth conversion analysis (when to convert, how much to convert, and whether to convert in the first place), review of estate plan intentions and helping a client minimize transfer taxes by identifying issues and working closely with a reputable estate attorney, and maybe most importantly, helping clients to think long-term and not make short-term mistakes like market timing and chasing last year’s winners. Importantly, an advisor helps you develop a plan (“fail to plan/plan to fail”) which addresses your unique goals and helps you achieve your goals. You need to know how much you need to save to reach a specific financial goal and why you may need to spend less or save more through company retirement plans or personal investments to obtain your stated goals. At this point it is important to emphasize that a fiduciary (as opposed to a salesperson motivated to do what is best for him/herself) should be hired as only a fiduciary consistently does what is best for you the client. A fiduciary, by definition, puts their clients’ interests ahead of their own. A holistic approach is needed to help each person realize their aspirations.

Several research articles have explored how much “value” an advisor can add to a person’s financial life (Russell, Vanguard, and SmartAsset all have done in depth studies). Among the main values cited are active rebalancing of investments, behavioral coaching, tax-efficient investing and planning, and offering a customized (holistic) experience and family wealth planning. Let’s explore these major categories…

Active Rebalancing of Investments

A “set it and forget” investment mix (let’s assume 60% stocks/40% fixed income) chosen in January of 2009 and not rebalanced through 2022 would have become a growth portfolio of 82% stocks/18% fixed income (per Frank Russell company research) with the real risk being a large overweight position in large cap growth stocks (15% initially in 2009 would have become 35% by December 2022). This is called drift, and it can be detrimental to one’s financial health. Incidentally, the Russell 1000 Growth Index lost 29% in 2022 compared to only 7.5% for the Russell 1000 Value Index. A fiduciary will rebalance portfolios periodically to make sure a client’s risk tolerance level is adhered to which will ultimately reduce stress and smooth out your investment ride.

Behavioral Coaching

Having worked as a CPA for over 35 years, I have seen many examples of poor investment timing decisions by folks. It is human nature to be scared as prices are falling and to become giddy when prices are rising almost daily. As Warren Buffet famously said, “be fearful when others are greedy and greedy when others are fearful”. I worked with an individual who was so hamstrung with the fear of losing money that he kept his retirement money exclusively in cash for more than a decade while money market rates were in the one to two percent annual range. This fear of losing money had an opportunity cost of well over $1,000,000 as opposed to having his money be invested in a moderate growth (60/40) mix of assets. Remember the adage, “time in the market beats attempting to time the market”. Research by Morningstar and Ned Davis Research shows that $10,000 invested in the S&P 500 Index 1-1-1995 would have grown to over $224,000 by 2024 if you had stayed fully invested over the thirty years. If you missed the 10 best days, you would have had $102,750, if you missed the 20 best days you would have had $60,000, and if you missed the 30 best days you would have had $38,000. Research also shows that about 78% of the stock market’s best days have occurred during a bear market or during the first two months of a bull market. Human nature dictates it is hard to re-enter the market once you leave—you want to convince yourself you made a good decision to get out and it is a very difficult thing to determine when best to get back in.

Tax-Efficient Investing and Planning (A Tax-Savvy Advisor)

Tax planning can be very challenging even if you know what tax rates will likely be in the future. “Should I take short-term gains this year and fill up lower tax brackets?” “Should I take long-term gains and potentially avoid tax altogether if my overall income is low enough?” “What about the 3.8% net investment income tax (“additional Medicare tax”) on unearned income?” “Should I harvest capital losses in the portfolio? When should I consider converting IRA funds to a Roth IRA?” “What about the health insurance premium tax credits (and possible repayment if my income is too high) for those needing to have their own health insurance and choosing to purchase it through the “Exchange?” “How to plan for the IRMAA (Income-related monthly adjusted amount) extra premium cost for my Medicare premiums? “I didn’t realize there is a two year look back period for IRMAA premiums and that my Roth conversion two years ago will cost me that much more in Medicare premiums.” These are only a few of the difficult planning questions you may encounter that a qualified advisor can help you get answers to. We work closely with your CPA or other tax professionals to optimize your unique situation.

Customized Experience/Family Focused

Holistic financial planning involves looking at the individual and their family to determine how they ultimately want their money to be distributed. This can involve many areas like trusts, beneficiary designations on accounts (i.e. charitably inclined folks with large balances in their traditional IRAs may want to consider naming a charity or a donor-advised fund as a beneficiary on their IRA especially if their estate is large enough that estate taxes may be due after their death), gifting to children/grandchildren, funding section 529 accounts for themselves, their children, and grandchildren, cash management (earning a 4% rate of return on idle cash versus zero in many bank accounts), vacation planning (many don’t think they can afford nice vacations but realize they do have enough money to take them), etc. As we progress through our lives, we have different short-term, intermediate-term and long-term objectives. The point is it is your financial life and your goals, and the advisor should help you achieve your goals to live your best life. Many people don’t live their lives to the fullest in retirement as they are too cautious—an advisor can help you understand how much you can safely spend and will adjust the monthly spending limit as needed. Only a fiduciary has your best interests at heart. We listen to you and tailor a plan to meet your goals and work with you and your family members to implement the plan and monitor the plan along the way. Goals change—the main thing is to formulate a plan.

In summary, the value of an advisor is substantial. It has been estimated that an advisor can add upwards of 3% to a person’s net annual returns. Over a 20-year period, a 3% difference in net return would put an extra 74% in your pocket—on a $500,000 investment, that would mean an extra $370,000 after taxes! If you’d like to explore how personalized financial planning may benefit you, we’d be glad to start the conversation.

Sources:

Russell Investments https://russellinvestments.com/content/dam/ri/files/us/en/financial-professional/insights/value-of-an-advisor-study.pdf

Vanguard https://advisors.vanguard.com/advisors-alpha/advice-that-clients-value#portfolio-value

SmartAsset (Jaclyn DeJohn, CFP) https://smartasset.com/financial-advisor/financial-advisor-value-model

Disclosures:

Highland Celebrates 19 Years!

Thu, 14 Aug 2025 14:43:10 GMT

��Nineteen years ago today, our founder, Ken Karr, submitted the paperwork to form Highland Investment Advisors, LLC, and the journey began.

Since then, we’ve grown from a solo practice to a dedicated team of ten serving clients across the country. Along the way, we’ve celebrated successes, learned from challenges, and stayed true to our mission: promoting prosperity and protecting peace of mind.

As we look ahead, we’re excited for the next chapter of continuing to innovate, serve, and make a positive impact for our clients and communities. Here’s to the next 19 years! ��

-Adam Drake

2nd Quarter 2025 Market Review

Sat, 12 Jul 2025 12:38:48 GMT

Below is a summary of the second-quarter 2025 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

Market Performance

��The US equity market posted positive returns for the quarter and underperformed both non-US developed and emerging markets. Value underperformed growth and small caps underperformed large caps .

��US REIT ( real estate investment trusts) indices underperformed equity market indices, but International REITs outperformed.

�� Within the US Treasury market, long term interest rates generally increased and short term rates decreased during the quarter. The yield on the 10-Year US Treasury Note increased 0.01% to 4.24%.

��The Bloomberg Commodity Total Return Index returned -3.08% for the second quarter of 2025.

2Q25

Economic Overview

The Fed Stays Put, But Eyes Future Cuts ��
At its June meeting, the Federal Reserve maintained the federal funds rate within its existing range of 4.25% to 4.50%, signaling a cautious approach to monetary policy. According to Morningstar, analysts anticipate the first rate cut could come as early as September. The Fed's hesitancy to lower rates stems from its desire to see more stable signs of easing inflation and economic softening, both of which remain crucial influences on bond market dynamics.

Inflation and Tariffs ��
U.S. consumer prices increased by 2.4% in May compared to the same period last year, marking a slight uptick from April’s 2.3% rise. Core inflation, which excludes the more volatile food and energy components, climbed to 2.8% year-over-year, up from 2.5% in the prior month. Tariff-related pressures remain a concern, with Fed officials warning of "persistent" inflation risks from trade measures. With higher import costs, the burden is likely to fall somewhere along the line, whether absorbed by manufacturers, passed on to retailers, or ultimately borne by consumers.

U.S. Consumer Spending to Weaken��‍♀️

Consumer spending grew at an annualized rate of 1.2% in 1Q25, down sharply from 4.1% in 4Q24. Factors indicating consumer fatigue include falling gas sales, declining auto purchases after a tariff-fueled buying rush earlier in the year, and broader unease over the economic outlook. Excluding autos, sales fell 0.3%, though retail sales rose 0.4% without the most volatile categories. The University of Michigan’s consumer sentiment index, released on June 27, rebounded from its near two-year low in May, marking the first increase in six months. However, the survey continued to reflect expectations of rising inflation and an impending economic slowdown. The data follows the June 26 revisions to U.S. GDP estimates, which reduced first-quarter consumer spending growth from a 1.2% increase to a mere 0.5%.

Job Pressures Impact Confidence ��

The U.S. unemployment rate held steady between 4.1% and 4.2% throughout the quarter, a range that remains historically low and is generally viewed by economists as near full employment. However, beneath these headline figures, signs of labor market weakness began to surface. In June, the labor force participation rate declined slightly, indicating that some individuals are exiting the workforce. This concern was reinforced by a sharp increase in the number of discouraged workers, those who believe jobs are unavailable to them, and a notable rise in continuing unemployment claims, which have reached their highest level in three and a half years. Additionally, the average hourly earnings growth on a year-over-year basis continued to decline in June, falling to one of its lowest readings over the past 12 months. These trends suggest a gradual cooling in labor market momentum.

Smart Cash: An Easy Fix for a Common Missed Opportunity

rmoran@highlandinvestmentadvisors.com (Ryan Moran) — Thu, 01 May 2025 15:45:50 GMT

Smart Cash: An Easy Fix for a Common Missed Opportunity

One of the most common opportunities we uncover at Highland Investment Advisors when working with new families is that they’re holding too much cash and earning too little on it. Fortunately, that’s a good problem to have and an easy one to fix.

Clients often ask us questions like, “My emergency savings is earning X% at the bank, and I was offered a CD (or money market) at Y%. Is that good?” Since our team actively monitors the fixed income landscape, we’re well equipped to answer that and offer alternatives.

Before we dive in, let’s acknowledge an obvious question: Is this the right amount of cash to be holding in the first place? Could some of it be working harder in a longer-term portfolio? That’s absolutely a conversation worth having. But for the purposes of this article, we’ll set that aside and focus on optimizing the cash you do plan to keep liquid.

This article outlines the main vehicles available to help you earn more on your excess cash.

Checking Accounts

Frequently, cash accumulates in a family’s primary checking account at the bank. Unfortunately, most checking accounts do not pay interest, or if they do, they may come with other fees or minimum balance requirements. This is a significant source of profit for banks.

Savings Accounts

Sometimes families transfer cash to a savings account, which typically does not offer check-writing or online payments. At the mega-banks, interest is offered, but usually at a negligible rate (think fractions of a percent, like 0.01%). Rates may be slightly higher if the account holds a larger balance. Smaller banks or credit unions often offer better rates. Savings accounts are generally FDIC-insured up to $250,000, providing protection against bank failure.

Bank Money Market

The next step up the ladder is money market accounts. Most banks offer a money market account that can be linked to a family’s checking and savings accounts, simplifying transfers. Again, interest rates on bank-sponsored money markets tend to be low, though smaller institutions frequently offer higher yields than the mega-banks. Most money market deposit accounts are FDIC-insured.

Certificates of Deposit (“CDs”)

In exchange for locking up cash for a few months to several years, certificates of deposit often offer a higher interest rate than the bank’s money market account. CDs pay a fixed interest rate for the term, which protects investors if rates fall—but offers no benefit if rates rise. While typically more competitive than money markets, CD rates can vary based on the issuing bank’s credit quality. Most CDs are FDIC-insured. If the money is withdrawn before maturity, early withdrawal penalties will reduce the overall return.

Certificates of Deposit Ladders

One technique to manage the illiquidity of a CD is to create a ladder: investing in multiple CDs with staggered maturities. For example, one might mature in three months, another in six months, then nine months, and finally one year. This increases liquidity, but it also means the family must reinvest maturing CDs on a rolling basis.

High Yield Savings Accounts

Some families opt for high-yield savings accounts offered by online-only banks. These banks have lower overhead and can therefore offer higher interest rates. Many of these accounts have no monthly fees, and reasonable minimums. However, the absence of physical locations can make some transactions less convenient. Like traditional savings accounts, the interest rate will fluctuate with market conditions. Riskier banks may offer higher yields, so it’s important to verify FDIC insurance.

Brokerage Money Markets Funds

Brokerage firms offer money market mutual funds within both taxable and retirement accounts. These funds invest in highly liquid, short-term debt securities. Retail investors are typically offered “stable NAV” funds, which aim to maintain a $1.00 per share price. Yields fluctuate daily based on market conditions but are often higher than those from bank savings accounts. Interest accrues daily and is usually paid monthly in the form of additional shares.

There are three main types of brokerage money market funds, each with different risk and tax considerations:

Government Money Market Funds

These are considered the safest, investing only in U.S. government-related securities such as Treasury bills, agency securities (like Fannie Mae or Freddie Mac), or repurchase agreements backed by government assets. Interest earned from Treasuries is exempt from state income tax.

Prime Money Market Funds

These funds carry slightly more risk by investing in short-term corporate debt, which is inherently riskier than government securities. In return, prime funds may offer slightly higher yields.

Municipal Money Market Funds

These funds invest primarily in short-term municipal securities issued by state and local governments. The interest is typically exempt from federal income tax, making them potentially attractive for families in higher tax brackets.

With interest rates having risen meaningfully over the past few years, there’s no reason to let your cash sit idle. Whether you're holding funds for emergencies, upcoming expenses, or just peace of mind, there are smarter ways to earn more while keeping your money safe and accessible. If you'd like a second opinion on your current cash, or want help navigating the many options available, reach out to us.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Opinions expressed herein are solely those of Highland Investment Advisors, LLC and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Highland Investment Advisors, LLC a SEC Investment Advisor.

Bear Market Survival Guide

rmoran@highlandinvestmentadvisors.com (Ryan Moran) — Wed, 23 Apr 2025 18:13:24 GMT

Bear Market Survival Guide

Recent market volatility had the S&P 500 flirting with Bear Market territory. At one point intraday, the S&P 500 was down by -20% from the all-time high.

What is a Bear Market? The term dates back to the 18th century to describe a market that has declined by at least -20% from the previous peak. The official definition requires the market to have finished the day down by at least -20%. So, while the S&P 500 is not technically in a Bear Market (as we write this on April 23rd, 2025), it is exhibiting the symptoms of a Bear Market.

What typically happens during Bear Markets? Bear Markets are characterized by extremely high volatility with big swings in price, in both directions. Bear Markets have produced the largest single-day losses as well as the biggest single-day gains. It can get very confusing.

It is possible the economy will subsequently experience a recession, but it is not a requirement for a Bear Market. For example, during the 2022 Bear Market, the U.S. economy did not contract to the point of recession. Bear Markets without recessions have historically been shallower declines with a faster recovery. It is also possible that a Bear Market is what causes a recession due to negative wealth effects causing businesses and consumers to cut spending, contracting the economy.

Weird things can happen in Bear Markets. Historical relationships between various assets can change. Bonds had offered stability in portfolios when stocks were down—until the 2022 Bear Market when both lost a significant amount of value. In the 2008 Bear Market, frequently referred to as the Global Financial Crisis, real estate prices fell across the United States, which had never happened before.

“Things” frequently “break” in Bear Markets due to the wide swings in price and lower liquidity. Financial markets may not function as expected. During the 2020 COVID Bear Market, futures contracts for West Texas Intermediate crude oil briefly traded at a negative price. In the 2008 Bear Market, previously safe money market funds lost enough to break the buck and fall below $1.00.

In Bear Markets, it is common for someone to say that “It’s different this time” and then point to the weird and broken things as justification. Claims are made that buy-and-hold investing no longer works, or that diversification doesn’t provide benefits, or that markets will take 40 years to recover, or it’s now a stock picker's market because passive investing is dead. It’s never different.

What should you do in a Bear Market? Below is our guide to both prepare for and survive a Bear Market.

1. Be prepared.

Your portfolio should have enough risk to meet your financial goals, but not so much risk that a Bear Market causes you to lose sleep. Prepare ahead of time with an investment allocation that includes assets other than stocks.

2. Acknowledge your emotions.

The “pain” from losses feels worse than the “joy” from gains. “Fight or flight” is a natural reaction to quickly make portfolio changes to “stop the bleeding.” When markets are volatile, try not to overreact in either direction. The fear of missing out (FOMO) can turn an investor into a trader.

3. Avoid mistakes.

In volatile markets, the possibility for a “mistake” increases. Big mistakes, like selling into a crash, can easily be avoided. But opportunities for small mistakes are more prevalent when markets are changing quickly with large percentage daily swings in price.

4. Understand the irony of markets.

The possibility of a drop in price, ironically, is highest when markets are richly priced at all-time highs. After a -20% decline, markets have de-risked.

5. Don’t think you are smarter than the market.

Markets move too fast and in unpredictable ways during a Bear Market. Trying to get out and get back into the market has been shown to be a fool’s game. Missing the market’s best days has a dramatic impact on long-term results. And most of the market’s best days occur within Bear Markets.

6. Realize the difference in time horizon.

Wall Street is focused on today, tomorrow, and this quarter. Their decisions are made within this short-term framework. Your investment horizon is next year, five years, and 25 years. Your long-term time horizon can allow you to take advantage of Wall Street’s shortsightedness.

7. Accept that nobody knows.

Last week, on April 9th, Goldman Sachs called for a recession as their “base case” economic forecast. Seventy-three minutes later, they reversed their call, downgrading their projections of a recession. That same day, on April 9th, the S&P 500 gained 9.5% over the course of four hours. Either the long-term fundamental value improved by $4.5 trillion, or nobody really knows.

8. Realize that nobody rings a bell at the bottom.

You won’t know that was “it” until much later. Concede that investment decisions take time to reach maturity and may go down before they go back up.

9. Bear Markets have tended to be shorter than bull markets.

The average Bear Market typically lasts 11 months from top to bottom. However, the time it takes to recover from losses varies based on the severity of the Bear Market. The 2020 COVID Bear Market took five months to recover. The 2000 Dot-Com Bear Market took seven years.

10. Turn the TV off.

Television, financial news, and social media are all designed to drive engagement. They do not have your best interest in mind.

11. Know where your cash is.

Line up cash to meet your spending needs for the next year or two. This creates peace of mind to avoid having to raise cash in the midst of a downturn and de-risks the portfolio.

12. Stay diversified.

Different assets respond differently in Bear Markets, reducing dramatic swings in the value of the overall portfolio.

13. Watch your allocations.

Wide swings in values will move your portfolio out of line with the targeted allocations. Rebalancing keeps your risk in line with targets. Consider smaller, more frequent rebalancing to minimize the risk of bad timing.

14. Dollar cost average.

This is the process of investing a certain amount of money at regular intervals, regardless of the market price. If you are in the Accumulation phase, Bear Markets provide an opportunity to purchase more shares at a lower cost. This same principle can be applied when withdrawing funds from the portfolio through portfolio sales occurring at regular intervals, regardless of the market price.

15. Tax loss harvesting.

Sell a position for a tax loss, use the loss to first offset gains generated elsewhere in the portfolio, then deduct up to $3,000 against other income. Additional losses can be used in future years. Use the proceeds from the sale to replace the original position in something different that still provides market exposure. Watch out for the Wash Sale Rules.

16. IRA to Roth conversions.

Converting a Traditional IRA into a Roth IRA in a down market lowers the tax cost of the conversion and shifts gains from a market recovery into the Roth account to grow tax-free.

17. Super fund 529 plans.

You can fund five years’ worth of gifts into a 529 plan for education all at once, without concern of incurring gift tax, by electing to treat the contribution as if it were spread over five years. The hope is a recovery in investment markets accrues to beneficiaries.

18. Front load your 401(k) contributions.

Pulling forward contributions into your 401(k) plan that you would have normally made throughout the year allows you to invest more in a market with depressed prices. But before you do, double-check how the company matching works to avoid missing out.

19. Take advantage of the dislocation.

Time is the only variable you cannot control when compounding money. Time waits for no one. But Bear Markets are like a time machine, offering opportunities to make investments at prices you wish you had years ago, before the start of the last bull market.

If you made it to the end of this article, thank you! If our thoughts above resonated with you, but it sounds like something a professional should be handling for you, get in touch with us to discuss how Highland can help you.

👉 1st Quarter 2025 Market Review

Tue, 08 Apr 2025 21:01:56 GMT

Below is a summary of the first-quarter 2025 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

Market Performance

��The US equity market posted negative returns for the quarter and underperformed both non-US developed and emerging markets. Value outperformed growth and small caps underperformed large caps .

��REIT ( real estate investment trusts) indices outperformed equity market indices.

�� Within the US Treasury market, interest rates generally decreased during the quarter. The yield on the 10-Year US Treasury Note decreased 0.35% to 4.23%.

��The Bloomberg Commodity Total Return Index returned +8.88% for the first quarter of 2025.

1Q25

Economic Overview

Tariff Tensions Escalate Global Trade Risks ��

New tariffs on imports from Canada, Mexico, China, and many other countries heightened fears of a global trade war. In response, the EU and Canada announced retaliatory measures, further clouding the outlook for international commerce. Markets reacted with sharp swings. Investors have eyed international diversification in Europe, and also defensive plays in dividend-paying stocks.

Inflation Data Sends Mixed Signals ��
Inflation readings in March painted a nuanced picture. A 2.8% annual run rate for CPI and Core PCE is solid compared to the recent past, as it is below 3% and well below the 9.1% highs we saw in 2022. The market just expects inflation to increase, but it is yet to be seen if tariffs will make it happen. The Fed’s preferred gauge—the Core PCE—rose 0.4% month-over-month, surpassing expectations and reinforcing concerns that inflation remains sticky. Meanwhile, the Core PPI came in below estimates, offering a hint of balance to otherwise persistent price pressures.

The Fed Stays Put, But Eyes Future Cuts ��
The Federal Reserve held rates steady at its March meeting, maintaining the federal funds target range of 4.25%-4.50%. The central bank reiterated its data-dependent stance and indicated the potential for two rate cuts in 2025. Significant developments included a downward revision of the Fed's economic growth rate forecast for 2025, alongside an upward adjustment of its inflation projections. With tariff concerns and inflation uncertainties at play, the Fed is taking a cautious approach, preferring to let the data unfold before making its next move.

Labor Market Shows Signs of Softening ��‍♀️
Job growth slowed in March, with nonfarm payrolls adding 151,000 jobs—short of expectations of 170,000 jobs. The health care sector continued to lead hiring, but the unemployment rate ticked up to 4.1%, suggesting potential cooling in the labor market. While still historically strong, the latest data could indicate a turning point in the employment trend.

The U.S. Consumer Has Seen Better Days ��

In March 2025, U.S. consumer confidence deteriorated sharply, as the Consumer Confidence Index dropped to 92.9, and the Expectations Index fell to 65.2 — below the recession threshold of 80 — reflecting heightened pessimism. This pensiveness might be overdone, and a catalyst for a shift — such as stabilizing inflation or clearer trade policy — could potentially restore some optimism.

Price Is What You Pay, Value Is What You Get: Choosing an Advisor

Fri, 04 Apr 2025 17:37:48 GMT

Warren Buffett famously said, "Price is what you pay, value is what you get." Yet, too often, decisions are made with price as the only factor, overlooking the real value behind a choice.

We recently had a prospective client call us with only one question: how much are our fees? Unwilling to engage further in a conversation to understand what we offer, they simply stated, “Your fees are higher than the other firm, I’ll go with them.”

It’s understandable that people want to compare costs, but a decision based solely on price can overlook critical factors. I suspect the prospective client may have had bad experiences with pushy salespeople in the past—perhaps even financial advisors—which is unfortunate. But making decisions about your financial future requires more than a surface-level comparison.

Choosing a financial advisor isn’t like picking out a refrigerator at an appliance store. If you end up with the second-best fridge, your life won’t be significantly impacted. But selecting the wrong steward for your capital could have far-reaching consequences. The cost of fixing bad advice can be higher than the additional cost of good advice. The time spent researching and interviewing financial professionals should reflect the gravity of the decision.

While some of the value of financial advice can be measured in dollars, much of it not economic. There is value in the peace of mind that comes from someone who can help you better understand the alternatives available, and the risks involved.

The Decision Tradeoff: Price, Features, and Importance

When making a decision, we often weigh three key factors: price, features, and importance. The right balance depends on what you value most. But another critical element is time spent researching—because at a certain point, additional analysis leads to diminishing returns.

Below is a framework for thinking through decisions based on these factors.

The 80/20 Rule in Decision Making

A useful guideline is the 80/20 rule: 80% of the value in a decision comes from the most important 20% of factors.

When evaluating financial advisors, that 20% likely includes trust, expertise, alignment with your goals, and fit for you—not just cost. Ask yourself if you can work with this person for the long-run.

If 80% of your confidence in a decision can be reached with reasonable effort, stop researching and commit. But if you're making a high-stakes decision, investing extra time to ensure you’re choosing wisely is well worth it.

Ultimately, choosing an advisor should be based on a holistic evaluation, not just a number. The best decisions are made when you balance cost, value, and the importance of getting it right.

It's Tax Time. Again. Essential Credits and Deductions

rmoran@highlandinvestmentadvisors.com (Ryan Moran) — Thu, 13 Mar 2025 14:00:00 GMT

By: Ryan Moran, CFA, CPA, CFP®

It is that time of year. Again. Tax season.

A strategic approach can help reduce tax liability and even increase potential refunds. However, navigating the complexities of the tax code can be overwhelming, and missing out on valuable credits or deductions could mean leaving money on the table.

That’s why working with a qualified tax professional—such as an Enrolled Agent (EA) or Certified Public Accountant (CPA)—alongside your financial advisor is essential. A tax professional can ensure you’re taking full advantage of available credits and deductions while aligning your tax strategy with your long-term financial goals.

In this article, we’ve highlighted some of the most common tax credits and deductions that are available for 2024. The hyperlinks within the article will direct you to the relevant IRS source.

Feel free to share this article with your tax professional. If you don’t have one, give us a call, and we’d be happy to recommend one.

Tax credits are dollar-for-dollar reductions in your total tax liability, and in some cases, may increase your refund.

The Earned Income Credit is available if your income is low and/or you have children.

The Child Tax Credit is up to $2,000 per child under age 17 for married couples making less than $400,000 or single taxpayers making less than $200,000.

If you pay for someone to care for your child or dependent, you may be eligible for the Child and Dependent Care Credit . This applies to children under age 13 and other dependents who are unable to care for themselves and live with you for more than half the year. The credit is up to 35% of qualifying expenses, to a maximum of $3,000 for one or $6,000 for two or more children or dependents.

A credit is also available for costs associated with adopting a child.

There are two education credit programs available for eligible post-high school tuition.

The first education-related credit is the American Opportunity Tax Credit , which offers a maximum annual credit of $2,500 to offset tuition for an eligible educational institution, often reported to you on Form 1098T. Students are eligible for four years of this tax credit.

The second education-related credit is the Lifetime Learning Credit , worth up to 20% of the first $10,000 of qualified post-high school education expenses, up to $2,000. Students do not need to be pursuing a degree or other credentials, meaning online classes and job improvement courses may be eligible.

The Energy Efficient Home Improvement Credit can help homeowners offset qualifying improvement expenses for exterior doors, windows, air conditioners, water heaters, and furnaces.

Similarly, the Residential Clean Energy Credit is for solar or wind generation, solar water heaters, and battery storage.

If you purchased a new or used clean vehicle —such as an electric car—you may be eligible for a credit of up to $7,500.

There is a credit for making contributions to an IRA or employer retirement plan. The Retirement Savings Contributions Credit is 50%, 20%, or 10% of your contributions, but phases out completely once your income is above $76,500 if married or $38,250 if single. Students and dependents are not eligible.

The Premium Tax Credit helps offset the premiums of purchasing health insurance through the Health Insurance Marketplace. This is particularly helpful for families in early retirement, before being eligible for Medicare. The amount of this credit is significant and can be received in advance to lower monthly insurance premiums.

The Foreign Tax Credit offsets taxes paid to a foreign country on income also subject to US tax. This is more common than you may think. Frequently, international investments, through structures like mutual funds and ETFs, pay this tax and report it to you via the Form 1099.

If you paid more than $10,453 Social Security tax in 2024, per person, any excess is refunded via a tax credit. This may happen if you made more than $168,600 last year, maybe spread over multiple employers.

Although not a credit, interest income received from US Treasury bonds is exempt from state income taxes. This percentage is frequently reported by mutual funds and ETFs, but you need to look it up yourself. It may not be reported to you on the Form 1099. And you need to make an adjustment on your state tax filings.

Speaking of state tax filings, if you have investments in tax exempt municipal bonds or funds, make sure you adjust for any interest received from in-state issuers. That interest may also be exempt from state tax.

Wisconsin, for example, offers a $300 credit for property taxes or rent paid. Check with your state for similar credits.

Tax deductions are different from tax credits-they reduce your taxable income.

The 2017 Tax Cuts and Jobs Act (TCJA) removed most tax deductions available to individuals, particularly some “itemized deductions” which were replaced with a much larger “standard deduction.” But some options are still available.

Contributions to employer-sponsored retirement accounts, such as a 401(k), are considered tax deductions, along with Traditional IRAs. Highland Investment Advisors can guide you on the contribution limits to these types of accounts.

If your taxable investment portfolio incurred capital losses , you can deduct up to $3,000 from your income after offsetting any capital gains you may have realized. Additional losses can be used in subsequent years.

If you sold your home for a profit, up to $500,000 of gains are excluded from tax, if married, or $250,000 if single.

Contributions to Health Savings Accounts (“HSAs”) are particularly powerful. For 2024, contributions up to $8,300 are tax deductible for a family. Earnings within the account are tax exempt. So are withdrawals used for eligible medical expenses. HSAs are “triple tax-exempt.”

Teachers can deduct up to $300 for certain unreimbursed classroom expenses.

Wisconsin also offers a deduction from your taxable income for contributions to Wisconsin’s 529 College Savings plan. For 2024, the deduction is up to $5,000 of contributions per beneficiary. For 2025, the deduction increases to $5,130 per beneficiary.

Most of these tax credits have limitations which may reduce the amount you are eligible for if your income exceeds certain amounts. All of these tax credits have a variety of eligibility requirements which need to be met.

MCAT for Financial Success: A Doctor’s Guide to Smart Money Moves

Tue, 04 Mar 2025 17:27:20 GMT

Co-Authors:

Adam S. Drake, CFA

Scott Keipper, CPA/PFS

Ryan Moran, CFA, CPA, CFP®

Physicians and dentists spend years building their careers, balancing intense training, long hours, and patient care. But when it comes to managing their own finances, even the most successful doctors can run into challenges. Between complex tax laws, investment decisions, and insurance considerations, it’s easy to overlook key financial risks that could impact their future. While some doctors take a hands-on approach to their finances, without a structured plan, it can be difficult to align savings, investments, and tax strategies with long-term goals.

Below are some common financial pitfalls that many doctors encounter—awareness of these can help avoid unnecessary stress down the road.

M anage Cash Flow Wisely ��

⚠️Buying a home and cars that are too expensive early in their career.

✅Some doctors, eager to reward themselves after years of training, purchase high-cost homes or vehicles early in their careers, which can create financial strain.

⚠️Overspending each month and failing to invest enough.

✅Before buying a home or car, doctors should assess their overall financial picture, including student loans, savings goals, and future income potential. Making a purchase that fits within a sustainable budget can help build long-term wealth without unnecessary financial stress.

C over Risks with Proper Insurance & Legal Advice ��

⚠️Purchasing permanent life insurance without understanding other options, like term insurance.

✅Doctors should consider how permanent life insurance stacks up to term insurance or other types of insurance in terms of cost and coverage.

⚠️Buying insurance from a captive agent instead of an independent agent.

✅Independent agents can offer a wider range of policies, while captive agents provide products from a single company. Understanding the differences can help in selecting the right coverage.

⚠️Lacking adequate disability insurance with proper “own occupation/specialty” coverage.

✅Doctors should ensure that their specific medical specialty is covered, and not assume they are covered and later find their policy does not protect them.

⚠️Not having sufficient personal umbrella liability insurance.

✅Having enough liability coverage could protect personal assets in the case of a lawsuit, for example.

⚠️Not having an estate plan with key documents.

✅Doctors should work with an estate planning attorney to establish key documents like a will, trust, and powers of attorney. Having a structured estate plan helps protect assets, ensure healthcare and financial decisions align with their wishes, and minimize complications for their family.

⚠️Not using a lawyer to review employment contracts.

✅A lawyer familiar with physician contracts can help identify provisions for pre-tax reimbursements and other financial benefits.

⚠️Signing a one-sided noncompete agreement that is overly restrictive.

✅Doctors should work with an attorney to evaluate noncompete agreements and negotiate fair terms. Ensuring the contract allows for career flexibility can help prevent restrictions that could limit future practice opportunities.

A llocate Investments Strategically ��

⚠️Not saving enough in tax-deferred accounts early in their careers.

✅Doctors should consider the long-term benefits of contributing to tax-advantaged retirement accounts, while balancing the priorities of paying down student loans and growing lifestyle expenses.

⚠️Not funding a backdoor Roth IRA annually.

✅Some physicians who exceed income limits for direct Roth IRA contributions may be unaware of the backdoor Roth strategy as a potential option. It’s important to consider tax implications and IRS rules before proceeding.

⚠️Lacking tax diversification across three investment buckets (taxable, traditional, and Roth accounts).

✅Doctors might be able to maximize their tax planning opportunities in retirement with a mix of taxable, tax-deferred, and tax-free accounts.

⚠️Not utilizing a proactive accountant to identify financial and tax opportunities.

✅Working with an accountant who understands physician-specific tax considerations can help uncover deductions, credits, and planning strategies that might otherwise be missed. Consult with a qualified tax professional to determine what strategies are appropriate for your specific situation.

T ake Control with a Financial Plan ��

✅Understanding these common financial pitfalls is the first step in protecting your wealth and securing your future. A structured financial plan can help doctors align their finances with long-term goals. If you want to take a more strategic approach to your finances, give us a call. We’re here to help you navigate these challenges with clarity and confidence. Schedule a Meeting

This article is for informational purposes only and should not be considered financial, legal, or tax advice. Consult with a qualified financial professional, attorney, or accountant before making any financial decisions. Investing involves risks, and past performance does not guarantee future results.

👉 4th Quarter 2024 Market Review

Fri, 10 Jan 2025 13:45:08 GMT

Below is a summary of the fourth-quarter 2024 market performance and economic commentary. The full market performance report (PDF) , including commentary and charts, can be found here .

Market Performance

�� The US equity market posted positive returns for the quarter and outperformed both non-US developed and emerging markets. Value underperformed growth and small caps underperformed large caps.

��REIT ( real estate investment trusts) indices underperformed equity market indices.

�� Within the US Treasury market, interest rates generally increased during the quarter. In terms of total returns, short-term US treasury bonds returned -0.83% while intermediate-term US treasury bonds returned -1.70%. The yield on the 10-Year US Treasury Note increased 0.77% to 4.58%.

��The Bloomberg Commodity Total Return Index returned -0.45% for the fourth quarter of 2024.

4Q24

Economic Overview

U.S. Inflation Eases, Housing Costs Persist ��

In 2024, the inflation rate dropped below 3%, marking an important milestone. While the Consumer Price Index (CPI) indicated a decrease to 2.4% in September, it rose back to 2.7% by November. Housing costs continue to pose challenges, as the real estate market, despite a cooling period, saw prices increase at a 3.4% annual rate in October. Sectors like housing and services continue to drive inflation metrics higher, though shelter prices may be stabilizing. Despite CPI and Producer Price Index (PPI) remaining above the Fed’s 2% target, market reactions were optimistic, suggesting an increased likelihood of a rate cut in December, and the Fed delivered on that optimism.

The Fed Meets Expectations, and Stirs Surprises ��

The Fed cut the benchmark overnight lending rate at its December meeting by 0.25% (25 basis points), bringing the target rate to 4.25%-4.50%, meeting market expectations. The move came after a 50-basis-point cut in September and a 25-basis-point cut in November.

However, the Fed indicated that it is looking at two interest rate cuts in 2025 versus the four that it had projected at the September meeting. This shift created a surge in volatility across financial markets which led to a reversal in the U.S. stock market’s late-year rally.

The Labor Market Holds Strong ��

The labor market remained tight, with an unemployment rate of 4.2% in December. The economic environment has bolstered consumer confidence, reflecting well in retail sales growth over recent months. The jobs data released in December was deemed as Goldilocks-like, revealing an increase of 227,000 jobs, which exceeded the Dow Jones consensus estimate of 214,000. In addition, the October jobs figure was revised upward by 36,000 following a disappointing performance the previous month. Recent job opportunities have seen notable increases in the health care, social assistance, and leisure/hospitality sectors.

Global Markets: Volatility and Dollar Strength ��

Since September, the U.S. dollar has strengthened, and concerns over potential tariffs pushed the Morningstar Global Markets ex-US Index down by over 7.5% in the fourth quarter, though it managed a 5.7% gain for the year. The Morningstar Emerging Market Index fell 7.7% in the fourth quarter but gained 7.4% for the year, partly due to a rebound in Chinese stocks. The Morningstar China Index rose by 16.7% in 2024 after three years of negative returns.

Gold Shines Amid Global Uncertainty ✨

Investments in hard assets like gold and certain commodities performed well in 2024. Gold gained 27% due to persistent global tensions and Fed interest rate cuts.

Start 2025 with confidence in your financial future!

Fri, 03 Jan 2025 13:37:19 GMT

Highland Investment Advisors LLC is committed to helping families achieve prosperity and peace of mind through:

1️⃣ Investment advice
2️⃣ Integrated financial planning
3️⃣ Tax minimization strategies

As fiduciaries, we are fully aligned with the families we serve. ��

Highland specializes in guiding families in the rapid accumulation phase toward financial independence and working with retirees or near-retirees on effective distribution strategies.

�� Schedule a 30-minute discovery call today to learn more: https://meeting.levitate.ai/#/landing/e66ead-8x6v2g

Investment Management

Tue, 31 Dec 2024 13:24:57 GMT

These are the cornerstones of our approach to portfolio management philosophy, ensuring your investments are aligned with your goals and built for long-term success.

Simple, low-cost, and tax-efficient investing that focuses on long-term growth and minimizing unnecessary risks.
Disciplined, diversified strategies designed to avoid costly mistakes and deliver consistent, market-based returns.
Personalized portfolios that balance growth, risk reduction, and inflation protection to help you achieve your financial goals.

Looking for a deeper dive on the principles that guide our investment philosophy? Continue below.

Simple, Low-Cost, and Tax-Efficient
We believe in keeping your investments simple, low-cost, and tax-efficient. By simplifying the process, you gain a clearer understanding of how your money is working for you. A highly diversified, low-cost strategy frequently generates better long-term results, allowing you to take on just the right amount of risk to achieve your goals.
Avoid Costly Mistakes
Successful investing is about avoiding common mistakes—chasing “hot” stocks, trying to time the market, or reacting emotionally to short-term news. Our disciplined approach helps you avoid these pitfalls and capitalize on long-term opportunities to grow your wealth.
Reject Wall Street’s High-Cost Games
We stay clear of Wall Street’s high-fee, complex products designed to generate profit for them, not for you. Our focus is on straightforward, transparent investment strategies that keep your costs low and your goals in sight.
Passive Strategies Outperform
Most active managers fail to consistently beat their benchmarks over time. We focus on achieving market returns through a passive, diversified approach, reducing unnecessary risk, costs, and taxes that eat into your returns.
Maximize After-Tax Returns
It’s not just about what you make—it’s about what you keep. Our strategies focus on maximizing after-tax returns by leveraging techniques like tax-loss harvesting, asset location, and rebalancing, all while minimizing taxable events.
Smart Risk for Your Goals
The right portfolio is one that takes on enough risk to help you meet your long-term financial goals, but not so much that it keeps you awake at night during market volatility. We carefully balance growth assets, risk reduction strategies, and inflation protection to match your risk tolerance and financial objectives.
Know Your Investments’ Purpose
Every investment has a role. Some aim for growth, some reduce risk, and others protect against inflation. We ensure that each piece of your portfolio serves its purpose, creating a balanced strategy that works for you over the long term.
Global Diversification for Stability
We invest globally to increase diversification and minimize risk. By holding a wide array of assets across geographies, your portfolio is less dependent on the performance of a few sectors or countries, providing a smoother path to growth.
Risk Reduction Without Compromise
Risk reduction strategies, like cash and bonds, form the foundation of your portfolio. These assets protect your wealth and help you weather volatility, but we carefully manage the risks associated with them, such as interest rate sensitivity and taxation.
Use of Non-Correlated Strategies
We include non-correlated assets and select alternative strategies when appropriate. These investments don’t move in line with traditional markets, providing additional diversification and stability. However, they come with tradeoffs, like tax inefficiency, so they are used thoughtfully.

Financial Planning

Tue, 31 Dec 2024 13:20:24 GMT

We approach every client relationship with an open mind, free from preconceived ideas about what you should or shouldn’t do. That’s why we start by listening—taking the time to understand your situation through thorough fact-finding.

By asking insightful questions, we gain clarity on your goals. Through open and honest dialogue, we help you prioritize what’s most important. During this stage, we also assess your ability and comfort with taking on risk.

Next, we analyze your current investments and financial position to formulate a strategy tailored to you. From this, we create a purpose-driven, actionable plan. We ensure you are part of the process every step of the way—adjusting, confirming, and fine-tuning the plan until you’re completely comfortable with the recommendations. Only then do we move forward with implementation.

Once the plan is in motion, our work doesn’t stop. We continuously monitor your progress, anticipate changes, and make adjustments as needed. Financial planning is an ongoing journey that evolves with you, ensuring you stay on track through every stage of life.

Estate Administration & Tax Planning

Mon, 30 Dec 2024 13:14:52 GMT

Successful ESTATE ADMINISTRATION means that your intentions are met and your family is cared for.

Critical Questions Highland Can Help You Answer:

What happens to my assets when I pass away?
Who will oversee my estate and ensure my wishes are carried out?
What does my Will actually specify, and does it reflect my current intentions?
How should my accounts be titled to align with my estate plan?
Who are my listed beneficiaries, and are my contingent beneficiaries up to date?
Do I need a trust, and if so, what kind?
How does life insurance factor into my estate plan?
How can I approach conversations with my parents about their estate plan?
Can my advisor work with my estate planning attorney to achieve better results?

Smart TAX PLANNING Identifies Opportunities to Reduce, Defer, or Eliminate Taxes—Now and Over Your Lifetime

Critical Questions Highland Can Help You Answer:

How much am I currently paying in taxes, and where can I find savings?
Are there strategies to reduce how much I owe?
Am I contributing enough to my retirement accounts to maximize tax advantages?
Are there any tax credits or deductions I qualify for?
What does it mean to eliminate taxes, and how can it apply to my financial situation?

New Office in Brookfield Wisconsin

Mon, 16 Dec 2024 13:10:44 GMT

We are excited to announce the opening of our new office at 175 Patrick Blvd, Suite 120, in Brookfield, Wisconsin, effective December 1, 2024.

This move unifies three previous Milwaukee metro offices into a spacious, modern location that enhances both client convenience and team collaboration. “This new Brookfield office is thoughtfully designed to serve our clients and provide a collaborative space for our entire team under one roof,” said Adam S. Drake, CFA, owner of Highland. “Our growth through strategic acquisitions, like Fund Management Corp. and Stoeckler Financial, along with our expanding advisory team made this new, combined office the next step in elevating our client experience.”

Adam Stoeckler, CFP®, a financial advisor with Highland, added, “Our combined office builds a stronger in-person community among our advisors, fostering a culture of collaboration and innovation that ultimately benefits our clients and staff.”

About Highland: Founded in 2006, Highland manages over $300 million in client assets. As a fee-only wealth management firm, Highland offers customized financial advice and solutions that cater to the unique circumstances and objectives of each client.

Highland welcomes Scott Keipper CPA/PFS to the team!

Wed, 17 Jul 2024 13:09:01 GMT

Highland Investment Advisors, LLC Assumes Advisory Business of Professional Management of Milwaukee, Inc. (“PMM”). Scott J. Keipper, CPA/PFS, formerly of PMM, Joins Highland Team. Highland will now manage nearly $300 million in assets for over 500 clients.

Ponte Vedra, Florida & Brookfield, Wisconsin: July 1st, 2024

We are pleased to announce that, effective July 1st, 2024, Highland Investment Advisors, LLC (Highland), an SEC-registered investment advisor based in Ponte Vedra (Nocatee), Florida, will succeed to the investment advisory practice of Professional Management of Milwaukee, Inc.—a Wisconsin registered investment advisor in Brookfield, WI (PMM) previously served by Investment Advisor Representative Scott J. Keipper, CPA/PFS. Highland also has offices in Delafield, Wisconsin, and Brookfield, Wisconsin.

Adam Drake, owner of Highland Investment Advisors, expressed enthusiasm about the new addition: “We’re absolutely delighted to welcome Scott to our team! His expertise, especially in 401(k) and retirement plans, aligns perfectly with our goals. We are eager to collaborate with Scott to continue providing excellent service to his clients and to expand our capabilities together.”

Scott Keipper added, “I am very excited to join Adam Drake and his team of advisors who place their clients’ needs ahead of their own to provide impartial advice in the best interest of their clients. I look forward to helping clients plan for their financial goals and thereby live more productive lives with less stress. As a CPA/PFS with more than 35 years of faithful service to clients, I understand that financial relationships are all based on a high level of trust which I have developed with clients. I look forward to the future working with clients and combining my tax background with the enhanced software and shared experiences Highland offers to benefit our common clients.”

About Highland: Highland was founded in 2006. The firm’s mission is “to promote our clients’ prosperity while protecting their peace of mind.” As a fee-only wealth management firm, Highland offers customized financial advice and solutions that cater to the unique circumstances and objectives of each client. Highland partners with independent financial advisors who want to continue building fee-based practices or who are looking for a succession plan.

For more information, contact:

Adam S. Drake, CFA

Managing Director & CCO

adrake@highlandinvestmentadvisors.com

414-755-2309 x101

Highland Investment Advisors, LLC welcomes Russ and Adam Stoeckler to the team!

Thu, 06 Apr 2023 13:03:19 GMT

Highland Investment Advisors, LLC Acquires Stoeckler Financial Advisory Services, LLC. The Combined Firm Will Manage Over $220 Million of Assets for Over 400 Clients.

This transaction was Highland’s third completed acquisition.

Ponte Vedra, Florida & Brookfield, Wisconsin:
April 6, 2023

We are pleased to announce that, effective from the first quarter of 2023, Highland Investment Advisors, LLC (Highland), an SEC-registered investment advisor based in Ponte Vedra (Nocatee), Florida, has acquired Stoeckler Financial Advisory Services, LLC (Stoeckler), a registered investment advisory firm in Brookfield, WI. Highland also has an office in Delafield, Wisconsin, and will retain Stoeckler’s location in Brookfield.

Adam Drake, Highland’s owner, stated, “Russ Stoeckler, his son Adam, and I have been colleagues and friends for over 15 years. When Russ approached me about combining our firms, my immediate response was ‘Yes!’ Russ and Adam align perfectly with our company culture, and they contribute their exceptional professionalism and planning expertise.”

Russ Stoeckler added, “We are excited about the opportunity to work with a company that shares our commitment to putting clients first. We can now have a greater focus on our clients as we leverage Highland’s experience in investments, operations, compliance, and more.”

About Highland: Highland was founded in 2006. The firm’s mission is “to promote our clients’ prosperity while protecting their peace of mind.” As a fee-based wealth management firm, Highland offers customized financial advice and solutions that cater to the unique circumstances and objectives of each client. Highland’s strategy is to partner with independent financial advisors who want to continue building fee-based practices or who are looking for a succession plan.

For more information, contact:

Adam S. Drake, CFA

Managing Director

414-755-2309 x101

adrake@highlandinvestmentadvisors.com

Time the Market at Your Peril

Tue, 10 Jan 2023 13:00:23 GMT

Fourth quarter 2022
David Booth, Executive Chairman and Founder, Dimensional Fund Advisors

Technology enables immediate access to everything wherever and whenever we want it. In many cases, such as staying in touch with friends and family, or learning about world events, that’s a good thing. However, when it comes to investing and money management, my fear is that faster and easier ways of investing will allow people to lose more money faster and easier.

As access to investing expands, it becomes even more important to adopt an investment plan that doesn’t try to actively pick stocks or time the market. The purpose of having an investment plan is so you can relax. So you don’t look at the market every day, stressing out and asking, “How’m I doing? How’m I doing?” Investors actively trading are not just potentially missing out on the expected return of the market—they’re stressed out, worrying about how the news alert they just received will impact their long-term financial health, and whether they can or should do anything about it.

I don’t blame people for this. The financial services industry has not done a good enough job educating investors that the best approach for their long-term financial well-being is to make a plan, implement it, and stick with it.

But it has done a great job selling index funds. Over the past decade, the percentage of the stock market that is passively held has grown considerably, with equity index funds representing 52% of the US equity fund market at the end of 2021.1 And yet some investors appear to be using index funds to pursue an active investment approach. For example, the largest S&P 500 ETF had the highest average daily trade volume of US-listed securities in 2021, at $31 billion.2 So instead of picking individual stocks, people seem to be acting like stock pickers when buying and selling index funds and ETFs.

Despite the overwhelming evidence and compelling story to the contrary. When economist Michael Jensen published his landmark 1968 paper, which showed that active stock pickers added no consistent value, other academics soon confirmed his insights. More than five decades and 50 years of data later, the theory still holds up. There are some stock pickers who experience success, but we don’t know how to identify them before the fact. We can’t separate skill from luck. Picking stocks is more like gambling than investing.

This academic research inspired the invention of the index fund, which allowed investors not only to buy the broad stock market, but also to track the performance of the manager and compare costs. I worked on one of the first index funds. When I co-founded Dimensional, we built strategies that were informed by indices but weren’t limited by the same mechanical constraints. So I accepted this research early on and built a company based on it. I still believe it 50 years later. My colleagues and I weren’t sure at the beginning that it would appeal to a lot of people, but it did.

I’m proud of the fact that we have always viewed marketing as a way to educate financial professionals and investors. In fact, we started by working with institutions and only expanded to individual investors by working with financial advisors who could help teach their clients how to think about the market and invest for the long term. We wanted to prevent people from making the mistake I still see too many people making.

But I fear it will only get worse. ETFs make it easier to trade. So do free platforms that allow people to trade on their phones. There seem to be as many ETFs as there are stocks that make up those ETFs. I really like ETFs. They are another chapter in this 50-year story of creating safer and better financial products for investors. Our firm has been using them to give financial professionals and investors more choice in how they access Dimensional Investing. But they are tools, and they have to be used effectively.

Which is why you may need an advisor more than ever—to help keep you from jumping from one thing to another. Our approach is to get you out of the game of worrying and guessing by having a plan that can provide peace of mind. It’s a sensible approach you can live with. Trust the financial advisor who trusts the market.

The financial industry has made great strides improving the investment options available, but we have more work to do helping investors with those options. There are great solutions right in front of people. As an industry, we need to do a better job of educating current and potential clients. How the bulk of our society lives out their later years depends on it.

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification does not eliminate the risk of market loss.

Data sourced from Morningstar; funds of funds are excluded.

US dollars.

Highland in the News

Thu, 14 Oct 2021 12:55:59 GMT

Our Ponte Vedra, Florida wealth advisor, Beverly Whitman CFP® CPA, recently spoke about financial literacy at the Women Empowering Women group.

Story: https://pontevedrarecorder.com/stories/women-empowering-women-grows-in-popularity-among-local-professionals,14171

highland-investment-advisors

1st Quarter 2026 Market Review

1Q26 Market Performance

Your tax return is trying to tell you something

Your tax return is trying to tell you something

Job Posting - Financial Advisor in Brookfield, Wisconsin

What’s Driving the Volatility in Precious Metals?

4th Quarter 2025 Market Review

4Q25 Market Performance

Your Advocate Aurora Health System Benefits & Career: Financial Planning for Employees and Executives

Year End Checklist

Year End Checklist 2025 Edition

3rd Quarter 2025 Market Review

Market Performance

3Q25

Economic Overview

Five Risks of Roth Conversions

Five Risks of Roth Conversions

My Portfolio Is Fine: Why Do I Need a Financial Advisor?

My Portfolio Is Fine: Why Do I Need a Financial Advisor?

Highland Celebrates 19 Years!

2nd Quarter 2025 Market Review

Market Performance

2Q25

Economic Overview

Smart Cash: An Easy Fix for a Common Missed Opportunity

Smart Cash: An Easy Fix for a Common Missed Opportunity

Bear Market Survival Guide

Bear Market Survival Guide

👉 1st Quarter 2025 Market Review

Market Performance

1Q25

Economic Overview

Price Is What You Pay, Value Is What You Get: Choosing an Advisor

It's Tax Time. Again. Essential Credits and Deductions

MCAT for Financial Success: A Doctor’s Guide to Smart Money Moves

👉 4th Quarter 2024 Market Review

Market Performance

4Q24

Economic Overview

Start 2025 with confidence in your financial future!

Investment Management

Financial Planning

Estate Administration & Tax Planning

Successful ESTATE ADMINISTRATION means that your intentions are met and your family is cared for.

Critical Questions Highland Can Help You Answer:

Smart TAX PLANNING Identifies Opportunities to Reduce, Defer, or Eliminate Taxes—Now and Over Your Lifetime

Critical Questions Highland Can Help You Answer:

New Office in Brookfield Wisconsin

Highland welcomes Scott Keipper CPA/PFS to the team!

Highland Investment Advisors, LLC welcomes Russ and Adam Stoeckler to the team!

Ponte Vedra, Florida & Brookfield, Wisconsin: April 6, 2023

Time the Market at Your Peril

Fourth quarter 2022 David Booth, Executive Chairman and Founder, Dimensional Fund Advisors

Highland in the News

Ponte Vedra, Florida & Brookfield, Wisconsin:
April 6, 2023

Fourth quarter 2022
David Booth, Executive Chairman and Founder, Dimensional Fund Advisors