Meaningful Spending | Market Fluctuations

WHAT ARE THEY REALLY SELLING? Black Friday season is here, and as usual, advertising budgets are hitting all-time highs. Author John Mark Comer plays a game with his kids when they see advertisements. It’s called “What are they really selling?” My alternative to it might be called, “What am I trying to buy?”

A similar question that has resonated with me is the difference between “What else do I want?” and “What am I being shaped into?” Growing wealth means more of our wants come within reach, and discernment becomes all the healthier to practice. A few questions that I think are worth revisiting before large purchases or habitual spending:

• What is this stirring in me, and what do I hope to gain (or feel) by spending on this?
• What have we purchased recently that did not produce contentment?
• What have we spent money on recently that has resulted in contentment?
• Does this large expense align with our desired family identity and mission?

It’s not an advisor’s job to tell you how to spend your money, but I do hope that we encourage meaningful spending that produces lives of contentment and purpose. Let’s not miss the opportunity to grow in this practice.

—By Matt Kane, CEPA

FAMILY GIFTING: There is considerable confusion surrounding family gifting. Too often this leads to inaction or anxiety. In 2025, the annual gift exclusion is $19,000 per recipient, per year. Gifts under this threshold typically require no IRS reporting and are not taxable to the recipient. If you give more than $19,000 to any one person in a year, you or your CPA need to file a gift tax return (Form 709). This is very easy for your CPA. This doesn’t automatically mean you’ll owe gift tax—it just reduces your lifetime estate and gift tax exemption. Current lifetime gift tax exemptions: $13.99M for individuals or $27.98M for couples. How can we help  you explore or implement your family gifting?

NORMALIZING MARKET FLUCTUATIONS: History shows us that the S&P 500 has spent 62.4% of the time in a drawdown of 3% or more, and over half the time (51.5%) in a drawdown of at least 5%. Even larger declines are not uncommon. Market fluctuations are not anomalies but the norm.

ANNUAL RETURNS: In case the previous chart had you channeling your inner “Chicken Little” and thinking, “the sky is falling,” consider the historical returns of the S&P 500 since 1928:

Worth noting, the returns skew toward positive annual returns.

FINANCIAL HOUSEKEEPING: U.S. consumers paid approximately $12.1B in overdraft and NSF fees in 2024. Just a reminder to close any unused bank accounts. Consolidate any low-balance bank accounts. As we wrap up the year, simplify your financial life.

WHAT WE’RE WATCHING: Tom Petty’s career spanned 4 decades. How were his simple songs relevant in decades when Elton John, Michael Jackson, Pearl Jam, and Beyoncé all had radio hits? Years after this death, his daughters and band discovered footage of the recording process of his magnum opus–Wildflowers. It is a captivating documentary on Tom’s creative process. Fun fact, Wildflowers was supposed to be a double album–but the label executive forced Tom to cut tracks. Trailer 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.

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