Better Questions | Gifting: Now & Later

ASKING THE RIGHT QUESTIONS

I’ve found that most couples aren’t looking for more generic advice. The internet doesn’t need more “5 tips to fund a 529” or “What is a HELOC?” content. They have their place, but usually, clarity doesn’t come from yet another article or “helpful” text from your brother-in-law. It comes from better questions. Questions like:

‘Are you modeling your vacation home around how you’ll use it or just the idea of it?’
‘What would surprise your kids most if they read your will tomorrow?’
‘What would it look like to prepare your heirs to steward wealth well?’

When our team engages with families to run the numbers, we don’t just stop there. We get honest about the values behind the math. Both matter. It’s time for less advice and better conversations.

ALL-TIME HIGHS: For many households, 2025 is a year full of all-time highs in real estate, cash compensation, Bitcoin, stock compensation, public markets and many private market strategies. As we approach the year-end, we can educate you and model tax benefits and charitable giving and/or generational gifting. If you’ve never considered a Donor Advised Fund (DAF), this is the season to get curious and start conversations with us and your CPA.

WORTH NOTING:

GDP is still strong.
There is weakness emerging in the labor market.
Our crystal ball is still broken. And more importantly, run from anyone who tells you they can predict the future.

“Compounding doesn’t rely on earning big returns. Merely good returns sustained, uninterrupted for the longest period of time- especially in times of chaos and havoc- will always win.” -Morgan Housel

DO VALUATIONS EVEN MATTER?: Markets quickly bounced back from the Tariff Tantrum. In Q1 the Financial Entertainment Complex was contemplating the end of capitalism or the collapse of the US dollar. Now they turn their attention to historic valuations and impact of MAG7 and AI related spending. In our opinion, valuations will always matter. And we happen to believe diversification is an investors best friend. We’ve never invested in “just” the S&P 500. Now is a great time to review your allocation, cash reserves, income expectations, and personal circumstances with your advisor. Prudent portfolio management happens only in the context of a personal financial plan.

Source: Bloomberg

NOW AND LATER: It’s not just a candy that was created in Brooklyn in 1962. It’s a helpful and relevant gifting strategy. Just consider:

You give your 30-year-old married daughter $120,000 for a house down payment. She’s not spoiled. She and her husband have 2 kids, give 10% of their income to charity, no “lifestyle” debt, save as much as they can and work hard.

In 2018, their $60,000 saved could have been a solid 20%down.

Today, it’s closer to 5% and closing costs ($600,000 house =$120,000 down + ~$25,000 for closing/moving costs).

Previous generations valued extreme financial privacy. They often kept tight control and never talked about financial matters. Inheritances happened only after they died. Today, matriarchs and patriarchs are critical of the past and open to change. We continue to encourage wealth holders to accelerate family gifting. Start small, start now.

DIVORCE RECOVERY SEMINAR: If you, or someone you know, is going through divorce, or in the wake of divorce – please know you are not alone. The Divorce Recovery Center, chaired by Compass Ion’s Luke Porter, CFP®, is a non-profit organization providing a Zoom-based, 8-part workshops starting on October 6. More info here or email [email protected].

*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.