Framing Your Decisions | I Bonds & Social Security

Framing Your Decisions

Many of our newer clients are surprised to learn that we try to avoid outright telling them what they can and can’t do–within reason, of course.

In most cases, our primary role is to frame the financial implications of a decision for you. We explore what is possible and, equally important, what decisions are necessary to accomplish those outcomes.

It’s helping you count the cost: if you want to do X, you’ll need to do Y.

One other interesting way to frame it: Worth = Reward minus Cost

With both reward and cost in view, we get a sense of what decisions are truly worth the most.

The cost may have a dollar sign attached to it. It might take the form of habits or commitments. It might involve a sale, such as a business or a property. Whatever the circumstance, our #1 goal is not to tell you what you can and can’t do. It’s to help you accomplish what’s most important to you.

I Bonds: If you previously purchased I Bonds from treasurydirect.gov, the rates have dropped. They are currently at 3.11% (fixed rate: 1.20%; variable rate: 1.90%). Rates are no longer competitive. The 3.11% rate is down from the 4.28% yield offered last May and the 5.27% yield rate offered in November 2023. The I bond yield hit a record high of 9.62% in May 2022. Once you’ve transferred your I bond proceeds to your bank account, contact your advisor to discuss reinvestment strategies.

Roth IRA vs. Traditional IRA: The dominating factor that most drives decisions about whether a Roth or traditional IRA is best is a comparison of an individual’s current versus future marginal tax rates. If rates are higher in the future, it’s better to convert to a Roth now; if rates are lower in the future, it’s better to keep a traditional IRA, wait, and pay taxes when rates are lower.

S&P 500 Averages:

Social Security Dates for 2025: If you’re a Social Security recipient, there are important details to remember throughout the year.

December 2024: if you haven’t already, you will receive information about the increase in your monthly benefit. This year’s COLA increase is 2.5%.
December 31, 2024: COLA increases are applied and sent to individuals who receive a beginning-of-the-month payment since January 1 is a holiday.
January 8, 2025: Checks paid to individuals who were born between the first and 10th day of the month.
Rest of January: those born between the 11th and 20th will receive increased benefits by January 15. Those born between the 21st and 31st will receive theirs by January 22.
October 2025: Cost of Living Adjustment (COLA) increase announced for 2026.

If you have any questions about your Social Security benefits that we can help with, please don’t hesitate to reach out.

*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, 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 at www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.