What Does History Tell Us About Geopolitical Events? | Defining Success

THE ASSETS MANY DIVORCE SETTLEMENTS MISS: Many divorces focus on what’s easy to see: accounts, real estate, and retirement balances. However, a surprising amount of value lives in places that don’t show up on a standard financial statement, and if you don’t know to ask about it, it disappears.

There’s a whole gray area of assets that are still valuable from an experiential standpoint. The dollar value of these things may be modest, but the personal stakes are not:

• Family mementos
• Pets
• Rights to Google Drive with family photos
• Airline miles
• Credit card points
• Club memberships
• Artwork
• Wine collections

For business owners and high earners, the list gets more complex.

• Stock options (vested and unvested)
• RSUs
• Deferred compensation
• Private equity stakes
• HSA balances
• Life insurance cash value
• Privately held companies
• Family businesses

If you or someone you know is considering a divorce, we may be able to help with financial planning considerations, depending on individual circumstances.

THE ATTENTION ECONOMY: How are your news sources impacting your net worth, taxes, cash flows, and investments? Chances are, the Financial Entertainment Complex is unhelpful along your path to durable wealth. Who or what do you need to cut from your consumption habits? In the wise words of Morgan Housel, “Every past market decline looks like an opportunity, every future decline looks like a risk.”

THE JOY OF HOMEOWNERSHIP: True or false: When you buy a house, you are really just purchasing a maintenance schedule.

DEFINING SUCCESS BY WEALTH: In 1976, 36% of girls and 55% of boys said having “lots of money” was important in life. In 2024? 75% of girls. 74% of boys. What’s driving an entire generation to tie success more closely to “lots of money”?

TAXES BY ACCOUNT TYPE: Every account type is taxed differently…

Roth Funds go in post-tax. There is no tax on interest, dividends, capital gains, etc. Funds can be withdrawn tax-free after age 59½.

Pre-tax Funds go in pre-tax. There is no tax on interest, dividends, capital gains, etc. You pay income tax when funds are withdrawn after age 59½.

Taxable Funds go in post-tax. You are taxed yearly on interest, dividends, and capital gains distributions. You pay long-term or short-term capital gains rates when you sell an investment at a gain. If you sell at a loss, current IRS rules allow you to write off up to $3,000 in losses per year and carry over any excess balance to future years.

Tax planning can be an important part of financial planning.

IT GOES FAST: Graduation season is here, and just maybe we all need reminders of what matters most. Watch here.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.