When Dad Is Ready to Step Back: Succession Planning for Family Businesses

Picture this scenario: A successful business owner has spent decades building his company, and now his two adult sons are involved in the operation. One son is clearly positioned to take over as CEO, while the other plays a more supportive role. The father wants to be “fair” to both sons, but isn’t sure what that means in practice—should he split ownership equally?

How does he balance family relationships with business realities?

If you’re a family business owner, this hypothetical situation probably sounds familiar. You might be facing similar questions right now, or you know it’s a conversation you’ll need to have in the coming years. At Gatewood Wealth Solutions, we regularly work with families navigating these exact challenges, and this scenario illustrates why succession planning is about much more than just deciding who gets what—it’s about preserving both business success and family harmony.

The Challenge: When “Fair” Isn’t “Equal”

In our hypothetical family, the father initially thinks the solution is simple: split ownership equally between his two sons. After all, he loves them both equally, so equal ownership seems fair. But as we dig deeper with clients facing this situation, it becomes clear that “equal” might not actually be “fair.”

The son stepping into the CEO role would be carrying the day-to-day responsibility for the business, making tough decisions, and being accountable for results. The other son, while contributing to the business, wouldn’t be taking on the same level of responsibility or risk. Equal ownership could potentially create resentment on both sides—the CEO son feeling he’s doing more work for the same reward, and the other son feeling pressured to justify his ownership stake.

This dilemma highlights one of the most crucial questions in family business succession: How do you balance family relationships with business realities? As a Certified Exit Planning Advisor (CEPA), I’ve seen how this tension plays out in countless families, and there are proven strategies to address it.

The Questions That Matter Most

When Gatewood works with families in situations like this, we help them identify several critical questions that every family business should address:

About the transition itself:

 

About ownership and control:

 

About the founder’s retirement:

 

These aren’t just theoretical questions—they’re the foundation of every sound succession plan we develop at Gatewood.

The Hidden Landmines

Our team’s deep bench of experience has shown us that family business successions often fail not because of poor financial planning, but because of unaddressed emotional and structural issues. Here are the most common pitfalls we help families avoid:

 

At Gatewood, we’ve developed frameworks to help families identify and address these issues before they become problems.

A Better Approach: Structure Meets Heart

Let’s return to our hypothetical family and explore how Gatewood might advise them to structure their succession plan:

 

This type of comprehensive planning is what we do every day at Gatewood—combining technical expertise with an understanding of family dynamics to create solutions that work for everyone involved.

The Roadmap Forward

If your family is facing a similar transition, here’s where Gatewood typically recommends starting:

  1. Get Professional Help Early: This isn’t just about legal documents—you need advisors who understand both the technical and emotional aspects of family business transitions. Our team’s diverse expertise allows us to address every aspect of succession planning.
  2. Have the Hard Conversations: Don’t avoid difficult topics hoping they’ll resolve themselves. Address expectations, fears, and concerns directly. We often facilitate these conversations to help families navigate sensitive territory.
  3. Plan for Multiple Scenarios: What if the chosen successor becomes disabled? What if family members have a serious disagreement? What if someone wants to sell their stake? Our exit planning process considers all these possibilities.
  4. Focus on Communication: Establish regular family business meetings separate from operational discussions. Create safe spaces for honest dialogue about both business and family concerns.
  5. Think Beyond Taxes: While tax efficiency is important, don’t let it drive decisions that create family discord or business dysfunction. Gatewood takes a holistic approach that considers all aspects of wealth transfer.

 

The Ultimate Goal

Imagine our hypothetical family one year after implementing their succession plan. The business is thriving, the brothers are working well together, and Dad is enjoying his newfound freedom while still feeling connected to the enterprise he built.

Their success wouldn’t come from finding the perfect legal structure or tax strategy—it would come from honest communication, careful planning, and a willingness to address both the business and emotional aspects of succession. This is exactly the type of outcome we help families pursue at Gatewood Wealth Solutions.

Remember, family business succession isn’t just about transferring ownership—it’s about preserving what matters most: the business that supports your family and the relationships that define it. When done thoughtfully, succession planning can actually strengthen both the enterprise and the family legacy for generations to come.

The key is starting the conversation before you need to. Don’t wait until retirement is imminent or health issues force the decision. The families who navigate succession most successfully are those who begin planning early, communicate openly, and get professional guidance to help them through the process.

Why Choose Gatewood?

At Gatewood Wealth Solutions, we understand that every family business is unique, but the challenges are remarkably similar. My background as a Certified Exit Planning Advisor, combined with our team’s deep bench of expertise, allows us to provide comprehensive solutions that address both the technical and emotional aspects of succession planning.

We don’t just create plans—we help families implement them in a way that honors their legacy. Our holistic approach considers your business operations, family dynamics, tax implications, and personal goals to create a succession strategy that works for everyone involved.

If you’re a family business owner facing succession planning questions, or if you know these conversations are on the horizon, the time to start planning is now. Your future self—and your family—will thank you for it.

 

 

About the Author

Jared Freese, CFP®, CLU®, CEPA, ChFC®, is a Wealth Advisor Manager for Gatewood Wealth Solutions, specializing in family business succession planning and wealth transfer strategies. He helps families navigate the complex intersection of business operations, family dynamics, and financial planning that aims to ensure successful transitions across generations.

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This is a hypothetical example and is not representative of any specific investment. Your results may vary.

How to Build a 401(k) Lineup with Passive and Active Fund Strategies

In designing a 401(k) lineup, empirical research favors passive index funds for core exposure, complemented by a few targeted active funds where managers have historically added value. Studies show that index funds generally outperform active peers in most asset classes (Morningstar, 2023)[1]. Meanwhile, certain market segments (international equity, fixed income, small-cap value, large-cap growth) exhibit inefficiencies that skilled active managers can exploit. The resulting hybrid strategy combines a passive core with selected active satellites to improve net outcomes.

Passive Style-Box Coverage

Passive core funds should cover all nine equity style boxes (large/mid/small crossed with value/blend/growth) at low cost. This broad coverage ensures participants receive market-like exposure without stock-picking risk. Passive funds have low fees, minimal turnover, and reduce behavioral risk.

 

Rationale for Active International Equity

 

Rationale for Active Fixed Income

 

Rationale for Active Small-Cap Value

 

Rationale for Active Large-Cap Growth

 

Cost and Fiduciary Considerations

 

Conclusion

A 401(k) lineup built on passive index funds for full style-box coverage plus a targeted set of active funds in inefficient asset classes offers the best of both worlds: cost efficiency, fiduciary alignment, potential for excess return, and improved risk management.

By combining the reliability of passive investing with selective active management in four time tested categories — international equity, fixed income, small-cap value, and large-cap growth — sponsors can create a modern, research-backed lineup that supports participant success over time.

Are you reviewing your plan’s investment lineup? At Gatewood, we help plan sponsors apply fiduciary standards while building smart, efficient lineups that support long-term participant success.

 

Sources:

  1. Morningstar. Active/Passive Barometer: U.S. Fund Landscape. July 2023.
    https://www.morningstar.com/lp/active-passive-barometer

  2. S&P Dow Jones Indices. SPIVA® U.S. Scorecard – Year-End 2023.
    https://www.spglobal.com/spdji/en/research-insights/spiva/

  3. U.S. Department of Labor. Employee Retirement Income Security Act of 1974 (ERISA), Section 404(a)(1)(B).
    https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/understanding-retirement-plan-fees-and-expenses

  4. Vanguard Research. The Case for Active Management in International Markets. 2022.
    https://advisors.vanguard.com/insights/article/the-case-for-active-management-in-international-markets

  5. Morningstar. Why Indexing Works. Morningstar Research Article. 2023.
    https://www.morningstar.com/articles/1132679/why-indexing-works

  6. Vanguard. Vanguard Large-Cap Value Index Fund (VVIAX) Prospectus and Fact Sheet. 2024.
    https://investor.vanguard.com/investment-products/mutual-funds/profile/vvifax

  7. Morningstar Direct. Intermediate Core Bond Fund Category Performance. Accessed 2024.

  8. FTSE Russell. Russell 1000 Growth Index Fact Sheet. 2024.
    https://www.ftserussell.com/products/indices/russell-us

 

Important Disclosures:

This information was developed as a general guide to educate plan sponsors but is not intended as authoritative guidance or tax or legal advice.  Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.  In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations..

Investing involves risk including loss of principal.  No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets

Bonds are subject to credit, market, and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

The prices of small cap stocks are generally more volatile than large cap stocks.

The Case for Tariffs (Yes, Really): A Surprising Solution to the Deficit Debate

There’s a glaring contradiction in today’s economic discourse, and it clouds the investment outlook. The loudest voices warning about America’s unsustainable federal deficit are often the most reflexive critics of tariffs, an essential tool that could help address the crisis. They demand “fiscal responsibility” but fall silent when asked what they’d cut from the budget. Suggest entitlement reform, and they’ll tell you it’s political suicide. Propose higher income taxes, and they bristle at the economic drag. Ask how they’d raise $2.0 to $2.8 trillion annually to close the federal budget gap, and the conversation ends.

That’s why tariffs—unfashionable, imperfect, and deeply misunderstood—may be one of the only practical tools left that can meaningfully address the deficit until the country is ready for major changes to how the government collects revenue and spends.

D.O.G.E. Promised a Trillion-Dollar Fix. It Delivered a Rounding Error.

The Department of Government Efficiency (D.O.G.E.) was supposed to be the bold solution to government waste. Originally pitched as a vehicle for cutting $1 trillion in inefficiencies, the agency—backed by Elon Musk and restructured under President Trump—quickly revised expectations downward to $150 billion. D.O.G.E. operates as a consultant would, examining costs and structure and recommending changes to achieve efficiencies across various departments.

D.O.G.E. impact is a subject of some debate.  As of mid-2025, D.O.G.E. has claimed between $150 billion and $ 90 billion in savings, although independent audits dispute much of that figure. More troubling, aggressive cuts to revenue-generating agencies like the IRS reduced government income. By some estimates, DOGE’s efforts may have cost taxpayers $135 billion through re-hires, overtime, legal settlements, and lost tax collections.

While well-intentioned and fundamentally a good idea, the shortfall was a strategic failure that exposed the limits of the “cut spending” approach. D.O.G.E. aimed to trim fat but ended up delivering a rounding error instead of transformational change.

Growth Alone Won’t Save Us

With a less-than-spectacular D.O.G.E. impact, and large Government spending cuts off the table — at least for now — the bipartisan default in Washington has long been to grow the economy and let increased tax receipts shrink the deficit as a percentage of GDP over time. It’s an appealing theory that consistently fails in practice. Despite periods of strong GDP growth, federal spending continues to outpace revenue by unprecedented margins.

While the growth strategy is politically palatable and will help over time, the U.S.’s current fiscal situation, with annual deficits of over $2 trillion, is dire. We don’t have the luxury of waiting for growth to solve a crisis that compounds daily. Growth matters, but it’s not enough. We need substantial revenue, and we need it soon.

Understanding Tariffs: A Tax, Not Inflation

Let’s address the elephant in the room: tariffs are, in fact, a tax. But they are emphatically not inflation.

Inflation is a monetary phenomenon—the expansion of the money supply that dilutes currency value and drives broad-based price increases. Tariffs don’t expand the money supply or devalue the dollar. They are a targeted consumption tax applied to imported goods, with three key differences from domestic taxes:

  1. Revenue generation: Unlike inflation, tariffs generate federal government revenue, potentially $300 billion annually
  2. Targeted impact: They affect specific imported goods rather than the entire economy.  Imports are roughly 15% of the U.S.’s GDP today.
  3. Importer and Corporate absorption possibility:  Who absorbs the cost increase from U.S. tariffs is an interesting and complex question, with the absorbing party differing by item and by importer. With energy costs roughly 10% lower than two years ago, many corporations have absorbed most of the tariff costs rather than passing them through

 

Despite persistent warnings from economists, tariffs have not triggered the runaway inflation they predicted.

The Hidden Costs of Corporate Absorption

However, when corporations absorb tariff costs, the economic impact doesn’t simply disappear—it gets redistributed. Companies facing compressed profit margins from tariff absorption experience a cascade of effects that ultimately flow back to the broader economy:

Reduced profit margins lead to lower corporate earnings, which translate to decreased stock valuations. This creates a diminished wealth effect as portfolio values decline, prompting consumers to reduce spending. Meanwhile, lower capital gains tax revenue partially offsets the government’s gains in tariff income.

This redistribution means that while tariffs may not be directly reflected in consumer prices, their costs still flow through the economy via financial markets and reduced economic activity.

The Regressive Reality of “Targeted” Impact

While tariffs don’t affect every sector equally, describing their impact as merely “targeted” obscures an important truth: if passed through, they disproportionately burden lower-income households. These families spend a higher percentage of their income on goods (versus services), have less flexibility to substitute away from imported products, and are more price-sensitive to increases in everyday items.

This regressive effect means that tariffs could function as a consumption tax that hits hardest those least able to absorb the cost—a significant trade-off that must be weighed against their revenue-generating potential. Kitchen table economics won 2024 for the Republicans, but it could be the reason they lose the 2026 midterm elections.

Why Income Tax Hikes Hit a Wall

One truism of taxes: Anything you tax, you get less of.  That reflects human behavior and rational economic actors. Raising income taxes sounds straightforward until you encounter the Laffer Curve’s hard ceiling. Beyond a certain point, higher rates reduce total tax revenue by discouraging work, saving, and investment. Historical data suggests we may already be approaching that point, considering total income taxes collected rose when Trump dropped rates in his first administration.

The federal government’s share of GDP rarely exceeds 20%, regardless of marginal tax rates. Taxing productivity has diminishing returns and penalizes the very economic activity we need to encourage. Tariffs, conversely, are harder to avoid and don’t punish domestic output. For revenue generation with minimal collateral damage to productivity, tariffs offer a superior approach, though they come with their own distributional consequences.

Tariffs as Statecraft: Economic Leverage Without Bloodshed

One of tariffs’ most under appreciated benefits is their geopolitical utility. Unlike sanctions or military action, tariffs exert pressure with fewer human costs and less international conflict.

Consider Canada’s Digital Services Tax proposal earlier this year, which targeted U.S. tech firms. The Trump campaign’s swift threat of retaliatory tariffs prompted Canada to reverse course within days. No troops, no diplomatic standoff—just credible economic pressure accomplishing what traditional diplomacy might have taken months to achieve.

In an increasingly multipolar world where military intervention grows costlier and less popular, tariffs represent a powerful, non-violent tool of statecraft.

The Mainstream Economics Blind Spot

The loudest tariff opposition comes from economists who forecasted a Great Depression during COVID, predicted inflation was “transitory,” and missed nearly every major market rebound of the past five years. Now they’re warning of recession if tariffs increase.

Perhaps they’re right this time. But their track record suggests their models are shaped more by ideological assumptions than empirical evidence. As investors and fiduciaries, we must remain disciplined and objective, recognizing that markets rise under both Democratic and Republican administrations because innovation and capitalism transcend partisan politics.

A Nuanced Approach: Targeted Implementation

Smart tariff policy requires acknowledging both benefits and drawbacks. The mainstream economic consensus identifies legitimate concerns: tariffs can raise consumer prices, potentially trigger trade wars, and may reduce competitive pressure on domestic industries.

The solution isn’t to abandon tariffs but to implement them strategically:

Who are the most inelastic exporters? 

What option do they have?  Early returns on inflation and the “Liberation Day” April 2, 2025, tariffs reveal higher government revenues and little to no increased inflation or inflation expectations. This result goes against conventional economic groupthink and needs further exploration. One idea is that exporters where trade deficits are large and long running are “inelastic” and as a result have little recourse but to absorb the tariffs if they wish to continue their export volumes.

Target critical industries:

Focus on sectors vital to national security—steel, defense, critical minerals, and advanced manufacturing—rather than blanket applications that raise consumer costs across the board.  Tariffs have an additional “incentive impact,” where importers may choose to build plants and manufacture in the U.S., thereby avoiding the tariff cost altogether.  This is not a simple calculation for these importers as U.S. production costs could be higher, negating the profitability improvement from moving production to the U.S..

 

The Implementation Gap

However, a significant disconnect appears to exist between this strategic approach and current practice. The administration has largely deployed blanket tariffs across broad categories, including items that the U.S. cannot efficiently produce domestically, such as coffee, bananas, and numerous other products. This approach is a shock-and-awe approach to international trade, and if the intent was to draw everyone’s attention to this issue, the approach succeeded.  Unfortunately, this approach creates exactly the problems that strategic implementation could avoid: higher consumer prices on necessities, economic inefficiency from protecting non-strategic industries, and diplomatic tensions without clear negotiating objectives.

This gap between theory and practice undermines many of the arguments in favor of tariffs. The current approach resembles less a surgical instrument and more a blunt tool, impacting the U.S. investment landscape as we saw in the April-May timeframe and making it harder to achieve the revenue and strategic benefits while minimizing economic disruption.

Trump 2.0: Tariffs as Economic Policy

In his first term, Trump deployed tariffs more surgically, targeting China, steel, and automotive sectors. In his second term, tariffs are expected to anchor his economic strategy alongside tax cuts, deregulation, and energy dominance.

The Trump approach may be unpredictable, but it’s not irrational. His focus on significantly altering the terms of U.S. trade across all trading partners can provide near-term economic growth.  The mixed stock market performance that we have seen since April 2 creates a dynamic that appears to be high risk, high reward in terms of effective policy implementation. Tariffs can help the Trump administration achieve its objectives. Trump seeks a legacy of bringing industries back to the U.S., delivering on his promises of higher real wages to blue-collar workers, resulting in a booming economy.  The question is how far he can take this fundamental restructuring of U.S. trade relations without incurring significant international and domestic opposition.,

Markets Recover From Tariff Shocks

History offers a perspective on tariff-related market volatility. In April 2025, markets dropped 19% on tariff news—eerily similar to December 2018’s 19% decline over trade tensions. In both cases, markets recovered as investors recognized the temporary nature of the disruption. Both recoveries were swift once investors had better visibility into the impact and scope of the tariffs on industries and trading partners.

This pattern suggests markets can adapt to tariff policies more readily than economists predict, especially when those policies generate tangible economic benefits. The chart speaks for itself:

bar graph showing the days from period start by percentage for the 2018-2019 drawdown compared to the 2025 drawdown from day 0 to day 120.

I am proud of the Gatewood Investment Committee and its successful navigation of the market correction this year. On the morning of April 7th, when the market was at its low point for 2025 (easy to see this in hindsight, hard at the time), our CEO said the following to our advisors at our Monday morning all-hands meeting:

“I would keep some powder dry. Since 1957, we’ve had 12 corrections in the S&P 500 greater than 20%. Assuming we’re in a bear market now, half of them were between 20-30%, three were between 30-40%, and another three were greater than 40%. If you have a lot of cash, don’t overcomplicate it. Invest half now, another quarter at a 30% drop, and go all-in, buying everything you can at a greater than 40% drop. You might only get one or two opportunities at that level in your lifetime.”

–Aaron Tuttle CFA® CFP® CLU® ChFC® | Partner | Chief Executive Officer

Since April 7th, the S&P 500 has risen by over +25%. Our clients are the beneficiaries of our continued commitment to long-term, methodical investing on their behalf. That’s the Gatewood way.

The Bottom Line: Tariffs May be the Only Tool We Have Left

We can’t cut our way out of this deficit at least for now, D.O.G.E. proved that. We can’t tax our way out through income taxes—the Laffer Curve won’t allow it. We can’t inflate our way out without destroying the currency. And while growth will certainly help, our fiscal situation requires exploration of all possible revenue sources.

That leaves tariffs as one of our most viable short-term options for meaningful deficit reduction until the country is ready for major changes to how the government collects revenue, what services it provides its citizens, and the cost of those services.

Tariffs have the potential to generate substantial revenue, though with significant distributional consequences. Tariffs create geopolitical leverage. Tariffs can strengthen strategic industries when properly targeted. The impact of tariffs may fall unequally on exporters, importers, nations, and consumers.  They offer a possible path to start closing the deficit before it reaches crisis levels.

The key is honest acknowledgment of their costs and who absorbs these costs: the regressive burden on lower-income households if passed through, the hidden effects of corporate absorption flowing through financial markets, the impact on exporters and importers, and the critical importance of strategic rather than blanket implementation.

You don’t have to love tariffs to recognize their potential impact as a bridge solution until the country is ready for significant changes to how the government collects revenue and spends. At this point, they represent one of the only tools with a credible shot at improving our fiscal trajectory before time runs out, provided we implement them thoughtfully rather than as a blunt instrument.

The deficit is the fire. Tariffs are the hose. But we need to aim carefully, or we risk dousing the wrong things while the real problem continues to burn.

Curious About the Counterpoint?

Read Gatewood CEO Aaron Tuttle’s perspective on why tariffs might distract from the real work of fiscal reform.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Counterpoints: Tariffs, Temptation, and the Illusion of a Solution

Why solving our fiscal problems requires more than populist revenue

Dan’s recent blog on tariffs sparked great debate—and it’s exactly the kind of back-and-forth that makes Gatewood special. We don’t always agree, but we’re united by a deeper goal: helping clients—and the country—move forward with clarity.

In fact, Dan and I agree on much more than we disagree. We both want fiscal sanity. We both want a more secure, more sovereign America. But where I start to diverge is in how we get there—and more importantly, what costs we may be ignoring along the way.

The Patriotic Appeal

Tariffs have an undeniable surface-level appeal. They feel like we’re standing up for ourselves. They’re visible, easily framed as constitutional, and unlike the income tax, they don’t require the IRS knowing the color of your wallpaper.

For those of us who believe in limited government, sound money, and national sovereignty, tariffs can feel like a clean swap: ditch the bloated tax code, bring back duties on imports, and reignite American industry.

But that’s the illusion. We’re not replacing anything—we’re adding.

If Tariffs Fix It… Why More Debt?

Let’s be honest about the timing. If tariffs were the fix, why did the same legislative push include a $5 trillion hike to the debt ceiling?

Yes, our tax system is bloated and full of misaligned incentives. But changing the source of tax revenue without reducing the need for tax revenue just feeds the same appetite with a different spoon.

Dan—and even the Trump administration, at times—have argued that no one is offering serious spending cuts. But that’s not quite accurate. DOGE is actually an example of a proposed constraint with substantial support, at least among the public.[1]

Likewise, leaders like David Stockman, Rand Paul, and Thomas Massie have consistently proposed concrete spending reductions.[2] Think tanks like the Heritage Foundation have published full spending-cut blueprints—for example, their “Blueprint for Balance” report offers detailed proposals across discretionary and mandatory spending categories.[3] The problem isn’t a lack of ideas—it’s a lack of political will. And when the addiction runs this deep, adding more revenue doesn’t promote sobriety—it just buys more drinks.

As an aside, entitlement reform is where the real fiscal reckoning lies. These off-balance sheet liabilities are rapidly becoming on-balance. Means testing, extending age eligibility, and protecting those already relying on Social Security is likely the responsible, principled path forward. But that requires honesty—and the courage to call these programs what they legally are: welfare benefits.[4]

Tariffs Are Taxes—Let’s Not Pretend Otherwise

We can debate whether tariffs are inflationary (and I tend to agree with Dan: they’re not in the strict monetary sense). But they are a tax. Like all taxes, they distort prices, create inefficiencies, and protect the politically connected.

Tariffs rarely stop at revenue. They become vehicles for cronyism. Industries seek shelter, not strength. Consumers pay more, often unknowingly. The economy shifts—not through innovation, but through manipulation.

We may “win” a few trade skirmishes, and no, this isn’t Smoot-Hawley 2.0. But if our goal is genuine economic progress, tariffs risk lowering our standard of living—especially if they mask the real disease: runaway spending.

What Actually Works

Here’s what history supports:

We’ve seen it repeatedly: prosperity isn’t determined by how you collect revenue, but by how much is taken and how little the market is distorted in the process.

History shows that income taxes, even with rate changes, tend to remain a steady share of GDP—an observation often attributed to Hauser’s Law, which suggests that federal tax revenues rarely exceed 19–20% of GDP regardless of marginal tax rates. This pattern is also supported by Congressional Budget Office (CBO) data over the past several decades.[5] What shifts is who shoulders the burden. And corporate taxes—despite political rhetoric—have declined significantly as a share of overall federal revenue, falling from over 10% in the late 1980s to under 7% in recent years.[6] It’s no wonder Washington is eager to find new tools.

The Real Discipline Test

In theory, tariffs could be a more visible and arguably more constitutional source of revenue—if they were replacing something.

But they’re not. And they won’t. Not without structural reform. Not without Congress giving up its favorite excuse: “We just need more revenue.”

Dan and I agree: America needs to get its fiscal house in order.

But the discipline we need won’t come from patriotic branding or populist packaging.

It will come from restraint. From honesty. And from the courage to say no—not just to foreign imports, but to our own worst habits.

Want to talk about how policy changes might affect your financial plan? Reach out—we’d love to help you navigate it.

 

Want to hear the other side?

Gatewood’s COO, Dan Goeddel makes the case for tariffs as a practical, if imperfect, fiscal tool. [Explore Dan’s View →]

Family Footnote

Fun fact: I had a family member involved in the Boston Tea Party. Contrary to popular belief, it wasn’t about high taxes. It was about removing a tax that gave British tea a price advantage over American-smuggled tea. The rebellion wasn’t over taxation alone—it was over losing an advantage because of taxation. And some things never change.

[1] Axios. “House passes bipartisan DOGE Act aimed at ending government waste.” https://www.axios.com/2023/11/15/doge-act-house-bill-wasteful-spending

[2] Rand Paul’s “Festivus” Reports, David Stockman’s works like “The Triumph of Politics,” and Thomas Massie’s repeated bills and votes targeting discretionary spending.

[3] Heritage Foundation. “Blueprint for Balance.” https://www.heritage.org/blueprint-balance

[4] I sympathize with those who say, “I paid into the system.” Many were led to believe Social Security was a personal savings or insurance program. But as the Supreme Court confirmed in Flemming v. Nestor (1960), Social Security is a general welfare benefit—not a contractual right. That doesn’t mean we shouldn’t protect those counting on it, but it does mean we need to be honest about the structure going forward.

[5] Congressional Budget Office. “The Long-Term Budget Outlook.” 2023. https://www.cbo.gov/publication/58946

[6] Tax Policy Center. “Corporate Income Tax as a Share of Federal Revenue.” https://www.taxpolicycenter.org/statistics/corporate-income-tax-share-total-revenue

 

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

From Job Loss to New Leadership: A Financial Roadmap for Executives in Transition

You never see it coming.

One moment, you’re leading meetings, finalizing strategic plans, preparing for next quarter. The next, you’re sitting in a conference room—or worse, on a video call—hearing words you’ll never forget: “Your role has been eliminated.”

You wonder, “How could this happen to me?”

The first wave is disbelief. The shock is immediate. Then fear. Then the sinking realization: you now have to explain this to your spouse, face your children, and figure out what’s next in a world that suddenly feels unrecognizable.

Take a deep breath.

Job loss—especially at the executive level—can feel like the floor has disappeared beneath you. But it’s also a powerful opportunity to reset, regroup, and rebuild something stronger. With the right plan, this disruption can become a catalyst for transformation – a launchpad for something better.

This roadmap is here to guide you through that process—step by step.

 

From Free Fall to Flight Plan: An Analogy for the Journey Ahead

Losing a job—especially as an executive—can feel like being suddenly ejected from a jet mid-flight. One moment, you’re moving fast and in control. The next, you’re spiraling through the air with no map, no warning, and no sense of where you’ll land.

It’s disorienting. It’s overwhelming. But just as a pilot turns to their training and mission control during a crisis, you need the right support team to help you stabilize, regain altitude, and chart a new course.

That’s what smart financial planning does during a career transition. It brings structure to the chaos, replaces fear with strategy, and transforms uncertainty into clear next steps.

At Gatewood, we serve as your mission control. We guide you through the turbulence, help you evaluate your options, and design a flight plan for the future. Instead of just surviving the transition, you rise from it—with clarity, lift, and forward momentum.

 

Avoid Common Mistakes: Lessons From the Field

We’ve worked with many executives through transitions. Here are some of the most common (and costly) missteps we’ve seen:

 

Navigating job loss as an executive isn’t just about making a few quick decisions—it’s about managing a complex web of financial, professional, and personal changes, often under pressure.

The Four Phase Process

That’s why we break the process into four structured phases:

 

Each step is designed to bring order to the chaos, helping you move from immediate uncertainty to long-term clarity. This isn’t just theory—it’s a practical framework that puts you back in control and positions you for what’s next.

This roadmap exists to help you avoid those traps—and make each decision with confidence.

Phase One: Financial Triage & Stabilization

This is your moment of pause—your chance to stabilize and breathe.

Emotions are high, and there are real financial decisions that must be made quickly and carefully. The goal here is control, clarity, and cash flow.

Gatewood’s Role:

Think of Gatewood as your Financial First Responder, bringing calm, clarity, and order when things feel uncertain. We then stay by your side, as your personal CFO, turning crisis into strategy.

We help you prioritize, analyze, and act with purpose—so you’re not making rushed or emotional decisions with long-term consequences. The key steps are as follow:

Evaluate Your Severance Package Thoroughly:

Unpacking your separation agreement helps you avoid missed opportunities and surprises: Is compensation a lump sum or salary continuation?

 

Handle Your Retirement Accounts with Intention:

Avoid triggering taxes or penalties by proactively managing your retirement accounts:

 

Stock Options & Equity Compensation Decisions:

Stock options can become worthless—or cost you more than you gain—if mismanaged:

 

Cash Flow & Liquidity Management:

Make sure your financial runway is long enough to give you breathing room:

 

Close the Insurance Gaps:

Losing employer coverage can leave you exposed:

 

This phase is about building a financial runway. When done right, it gives you the time and space to thoughtfully plan your next chapter.

Gatewood helps you triage decisions, organize your financial picture, and build a plan that keeps your options open. You’ll walk away from Phase One with a roadmap, not just a list of to-dos.

 

Phase Two: Exploring What’s Next

Stabilized? Good. Now let’s look forward.

You may not know your next role yet—but that doesn’t mean you can’t plan. In fact, this is the perfect time to explore options and model scenarios that inform your future path.

Whether you plan to rejoin the corporate world, launch your own venture, or pursue consulting, each path requires its own set of decisions and financial assumptions.

What Path Are You Considering?

Each of the following directions carries distinct income variability, tax consequences, and risk dynamics. We help you pressure-test what each would mean for your financial future:

 

Gatewood Helps You Model and Compare:

You don’t need all the answers today. What you need is a partner who can help you navigate uncertainty with confidence— someone to help you weigh the tradeoffs, test your assumptions, and build optionality into your plan.

Gatewood’s Role:

We serve as your strategic thought partner, modeling what-if scenarios and helping you understand how today’s decisions shape your long-term success. You’ll leave Phase Two with a clear understanding of your options—and a plan that grows with your evolving vision.

 

Phase Three: Evaluating the Next Opportunity

The offers arrives. Now what?

When the right opportunity and new offer come in, it’s time to switch from stabilization to evaluation. This is more than a salary negotiation.

This phase is not just about understanding what’s being offered. It’s about how it fits into your broader financial, professional, and family life goals.

You’ve already created a baseline financial plan during your transition. Now, we integrate the new compensation and benefits package into that plan to evaluate its impact—and identify any gaps, risks, or opportunities.

 

Evaluating the Offer:

A job offer is more than just salary. We help you analyze:

 

Key Questions to Consider:

 

Gatewood’s Role:

We translate complex offer terms into clear financial implications. By layering the offer into your existing plan, we show you:

 

Insurance & Risk Considerations:

Many executives overlook the insurance shifts that come with a new role or company. We help you evaluate:

 

This is about more than accepting a job—it’s about aligning your next chapter with your life vision.

The right role should advance your career and your financial goals. We help make sure it does both.

 

Phase Four: Long-term Planning & Integration

This is where clarity becomes momentum.

Once you’ve accepted your next role, the real work begins – integrating your new financial life into a long-term strategy that supports your goals, protects your family, and grows your wealth intentionally.

This phase is about moving beyond the transition— it’s time to align every aspect of your financial life with your goals—across investments, tax strategy, risk management, and legacy planning.

Update Your Financial Plan:

Now that compensation is more predictable, we revisit your plan to ensure:

 

Optimize Retirement & Investment Strategies:

Your investment plan must evolve with your life stage and risk profile. We help you:

 

Estate, Risk & Legacy Planning:

With a new financial foundation, it’s time to reassess your long-term preservation and legacy goals:

 

Ongoing Review and Accountability:

Life, tax laws, and the economy evolve. We provide:

 

This is not the end of your transition—it’s the beginning of a new financial trajectory with clarity and intention.

 

Bringing It All Together

Losing a job at the executive level isn’t just a career event—it’s a life event. It can feel like free fall, like chaos. But with the right process, it becomes a chance to take stock, pivot wisely, and launch your next chapter from a position of strength.

These four phases—triage, exploration, evaluation, and integration—are designed to bring structure to what feels unstructured. To bring clarity to the chaos. To move you from reaction to strategy.

While this guide offers a framework, it’s not just about having a checklist—it’s about having a partner who helps you make the right decisions, at the right time, for the right reasons.

We’ve helped executives in this moment before. And we can help you, too.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

 

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

 

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

 

A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer’s plan, if permitted; 2. Roll over the assets to their new employer’s plan, if one is available and rollovers are permitted; 3. Roll over to an IRA; or 4. Cash out the account value

Financial Planning Before & After a Divorce: A Guide for Women Navigating Life’s Transition

Divorce is one of life’s most emotionally charged and financially complex transitions. Whether you are just beginning to consider it, actively going through the process, or finding your footing after it’s finalized, your financial life will inevitably change. For many women—whether a successful professional or a full-time caregiver to children—this can feel overwhelming, isolating, and uncertain.

At Gatewood Wealth Solutions, we recognize that divorce is not just a financial event—it’s an emotional journey filled with grief, fear, uncertainty, and sometimes betrayal. It affects more than just the couple—it ripples into relationships with children, in-laws, mutual friends, and shared professionals who may now be forced to choose sides.

Trust can be deeply shaken. That’s why our approach is grounded in empathy, discretion, and partnership. We walk with our clients through every stage—supporting them not just as financial advisors, but as steady, compassionate allies in a time of profound change.

This guide outlines the key considerations you need to think through—and the actions you should take—as you navigate this pivotal chapter.

When You’re Considering a Divorce

Before any paperwork is filed, it’s essential to take stock of your situation:

 

This stage is about preparation. Quietly gathering information and creating a plan helps protect your interests and gives you space to process what’s ahead emotionally.

Types of Divorces and Their Implications

Understanding the process can help you choose the right path:

 

The choice impacts your financial, emotional, and relational outcomes. Working with a financial advisor early can help you evaluate settlement options from a long-term planning lens and ensure you’re emotionally supported throughout the process.

Financial, Legal & Emotional Challenges for Women

Whether you’re a professional earning a significant income or a stay-at-home parent managing the household, divorce introduces several issues: 

For Working Professionals:

For Stay-at-Home Mothers:

 

For All Women:

 

We understand that many women feel lost in this transition. Trust in others—even professionals—can feel fragile. That’s why working with a firm like Gatewood, where we prioritize empathy, clarity, and transparency, can be a stabilizing force. Our goal is to rebuild your sense of control and confidence in your future.

A financial advisor can act as a steady hand through these transitions, helping ensure nothing falls through the cracks.

The Role of the Financial Advisor in a Divorce

A qualified financial advisor does more than analyze numbers—they provide clarity, structure, and emotional steadiness. They:

 

At Gatewood, we are skilled at guiding clients through emotionally sensitive transitions with the care and confidentiality they deserve.

We build comprehensive plans tailored to your new life—empowering you to move forward with confidence.

What Documents Should You Have

 

These help define marital vs. separate property and inform negotiation strategy. Having them prepared gives you a stronger voice in conversations that may feel emotionally loaded.

Evaluating Employee Benefits

Benefits can be an overlooked asset. Make sure to:

 

If you’re covered under your spouse’s benefits, have a plan for transitioning off.

Practical Steps to Take During a Divorce

  1. Assemble a professional team: attorney, financial advisor, therapist
  2. Open individual bank and credit accounts
  3. Track your income and spending
  4. Freeze or monitor credit
  5. Establish a post-divorce budget
  6. Update passwords and secure personal information
  7. Review estate plan and insurance needs

 

We guide clients through each of these so they feel supported and informed—not alone.

 Two Examples of Planning in Action

Case Study 1: Sarah, Corporate Executive

Sarah was a high-earning executive who handled investments but never paid much attention to cash flow. During her divorce, we:

 

Sarah walked away empowered, informed, and with a clear roadmap for her financial future.

Case Study 2: Emily, Stay-at-Home Mom

Emily had been out of the workforce for 15 years, raising her three children. We:

 

Emily gained financial confidence and clarity, with a plan that gave her options.

A Final Word and Where You Can Turn

Divorce doesn’t have to mean financial confusion or fear. With the right team and the right plan, you can take control of your future, protect what matters, and make empowered decisions.

At Gatewood Wealth Solutions, we specialize in helping women plan through and beyond divorce. Whether you’re just starting to consider it or have finalized it and need help rebuilding, we’re here for you.

Let’s talk. Your next chapter deserves a solid plan.

 

Important Disclosures
This material was created for educational and informational purposes only and is not intended as tax, legal or investment advice. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither LPL Financial nor any of its representatives may give legal or tax advice.

 

This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.

Major Tax Bill Clears the House {Updated 07/09/2025}

[Updated as of 07/09/2025]

On July 7, 2025, the “One Big Beautiful Bill,” a major tax and spending package we’ve been closely tracking, was officially signed into law by the President. We’ve broken down the new changes to help you easily understand how this might affect you, your family, and your financial plans.

What’s in the Final Law?

Permanent Lower Taxes for Individuals

Good news! Lower tax rates and the bigger standard deduction that came from the 2017 tax law (often called the TCJA) are now permanent. This means most people will continue paying less in taxes long-term.

Increased SALT Deduction Cap

If you live in a state with higher taxes, you’ll appreciate this one: The deduction limit for state and local taxes (SALT) has increased from $10,000 to $40,000. However, this benefit phases out if your income is above $500,000.

Special Deductions for Workers and Seniors

 

Estate Tax Exemption Increase

The exemption for estate taxes is now permanently set at $15 million per person, helping families pass more of their wealth to their heirs without tax penalties.

Good News for Business Owners

 

Energy and Community Investments

 

Families and Children Benefit Too

 

Social Program Changes

 

What Did NOT Pass?

 

Who Benefits, and Who Might Face Challenges?

Winners:

 

Those Facing Challenges:

 

We understand that these changes might have mixed impacts depending on your situation. Our priority is making sure you have a clear, easy-to-follow plan.

How Gatewood Wealth Solutions is Here for You

We’re already working to help our clients:

 

As always, please reach out to us if you have questions or would like personalized advice on navigating these new changes. We’re here to guide you every step of the way.

 

 

[Original Article from 06/03/2025]

On May 22, 2025, the U.S. House of Representatives narrowly passed a nearly $4 trillion tax bill known as the “One Big Beautiful Bill” by a 215-214 vote. The legislation includes the most significant tax changes proposed since 2017, including permanent extensions of key provisions from the Tax Cuts and Jobs Act (TCJA), new deductions, and revised rules for both individuals and businesses.

While this is a major step, it is not yet law. The bill now heads to the Senate, where changes are likely. The administration has signaled an interest in seeing legislation finalized by July 4, though many expect the timeline may extend into August or beyond, depending on the pace of negotiations.

Here’s what you need to know — and what we’re doing to help you prepare.

Key Highlights from the House Bill

For Individuals:

 

Estate Planning Updates:

 

For Business Owners:

 

Other Notables:

 

What Happens Next?

The Senate is expected to take up the bill in June, possibly bypassing committee review in favor of direct negotiations. Any significant changes made by the Senate would require another vote in the House before the bill can be enacted. While many core elements of the bill enjoy broad Republican support, there are competing priorities among Senate members — particularly around energy credits, international taxation, and the scope of permanent provisions.

How Gatewood Is Preparing Our Clients

With major tax changes on the horizon and year-end planning season approaching, timing and strategy will be critical. At Gatewood Wealth Solutions, we’re preparing our clients for all possible outcomes — and we’re starting now.

Here’s how we’re helping:

You don’t need to wait for the final vote to start planning. Strategic action today can create lasting benefits regardless of how the final bill takes shape.

If you’re ready to review your plan or want to understand how this legislation could impact your financial goals, let’s talk. We’re here to guide you through it — with clarity, strategy, and purpose.

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

Money Considerations When Becoming a Caregiver for Aging Parents

As Americans live longer, more adult children are stepping into a new and emotionally complex role: caregiver for aging parents. While this caregiving journey is often rooted in love and duty, it comes with significant financial, legal, and emotional challenges—many of which families are unprepared to navigate.

 

At Gatewood Wealth Solutions, we help families prepare for life’s key moments. Becoming a caregiver is one of those moments, and having the right plan in place can help you support your parents without jeopardizing your own financial well-being or confidence.

The Situation Many Couples Face

The typical scenario starts subtly. One parent begins needing help with errands, then medications, then transportation. Eventually, the need grows to include daily support—bathing, dressing, managing bills—or even full-time care.

For couples in their 40s, 50s, or 60s, this can be a difficult balancing act. They may still be working full-time, saving for retirement, or even supporting children in college. When caregiving duties grow, it creates stress, financial strain, and difficult decisions:

 

These are deeply personal—and deeply financial—questions.

Financial Considerations for Caregiving

Caring for a parent can quickly become a financial responsibility. Common costs include:

 

Medicare Vs. Medicaid: What They Cover (and what they don’t)

Medicare is health insurance primarily for those 65 and older. It covers hospital care, doctor visits, and short-term rehabilitation—but NOT long-term custodial care such as help with bathing, dressing, or eating.

 

Medicaid, on the other hand, is a needs-based program that can cover long-term care in a facility or at home—but only for individuals with very limited income and assets.

 

Coordination Between the Two:

In some cases, individuals can qualify for both Medicare and Medicaid (known as “dual eligibility”), but coordinating these benefits is complex and often requires professional guidance. Timing, asset structuring, and proper documentation are key to avoiding disqualification or delays in coverage.

Legal and Estate Planning Issues to Address

When you step into a caregiving role, you also step into a world of legal responsibilities. The following should be reviewed or created:

 

Gatewood can work alongside estate attorneys to help ensure the proper legal structures are in place and coordinate with elder law specialists when necessary.

Emotional and Lifestyle Strain

Many caregivers experience:

 

We often remind families: you cannot pour from an empty cup. Planning ahead financially and legally can ease the stress and allow more energy for the emotional and relational aspects of caregiving.

Resources for Caregivers

You’re not alone in this journey. Here are a few reputable resources:

 

How Gatewood Can Help

At Gatewood, we guide families through the complexities of caregiving—from financial planning to legal coordination to emotional support strategies. We:

 

A Final Thought

You may never feel fully ready to become a caregiver—but with thoughtful preparation and the right support, you can approach it with confidence, clarity, and compassion.

If you’re facing—or anticipating—the responsibility of caring for an aging parent, let’s have a conversation. We’re here to help you prepare financially and emotionally for one of life’s most important roles.

 

 

Important Disclosures:

This material was created for educational and informational purposes only and is not intended as tax, legal or investment advice.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither LPL Financial nor any of its representatives may give legal or tax advice.

Gatewood Glide: Asset Allocation by Wealth Stage

Investing isn’t one-size-fits-all. At Gatewood Wealth Solutions, we’ve built a tailored approach—The Gatewood Glide—designed to support investors through each stage of their financial journey, from early accumulation to meaningful legacy-building.

Phase 1: Cultivating – The Habit-Builder

Persona: Early-career professional (entry-level), often single, establishing money habits.

Primary Goals:

 

Recommended Allocation:

Account Type
401(k)
Allocation100% equities
Emergency Fund
Allocation3–6 months (cash in hub account)
Bonds
Allocation0%
Alternatives
Allocation0%
Account Type Allocation
401(k) 100% equities
Emergency Fund 3–6 months (cash in hub account)
Bonds 0%
Alternatives 0%

 

Planning Tips:

 

Phase 2: Building – The Growth-Engine Household

Persona: Dual-income couples, high earners, on track to wealth accumulation.

Primary Goals:

 

Recommended Allocation:

Account Type
401(k)
Allocation100% equities (maximize contributions)
Emergency Fund
Allocation6 months (dual-income) or 12 months (single-income)
Bonds
Allocation0%
Alternatives
Allocation0%
Account Type Allocation
401(k) 100% equities (maximize contributions)
Emergency Fund 6 months (dual-income) or 12 months (single-income)
Bonds 0%
Alternatives 0%

 

Planning Tips:

 

Phase 3: Activating – The Glide Begins (10 Years Pre-Retirement)

Persona: Peak-earning years, retirement horizon in sight.

Primary Goals:

 

Recommended Allocation:

Account Type
Equities
Baseline Allocation80%
Range70–90%
Fixed Income
Baseline Allocation20%
Range10–30%
Alternatives
Baseline Allocation0% (default), up to 10%
Range0–10%
Cash
Baseline Allocation12–24 months (gradually increase toward retirement)
Account Type Baseline Allocation Range
Equities 80% 70–90%
Fixed Income 20% 10–30%
Alternatives 0% (default), up to 10% 0–10%
Cash 12–24 months (gradually increase toward retirement)

 

Planning Tips:

Phase 4: Enjoying – The Confident Retiree

Persona: Retired, financially independent individuals.

Primary Goals:

 

Recommended Allocation:

Account Type
Equities
Baseline Allocation65%
Range55–75%
Fixed Income
Baseline Allocation30%
Range20–40%
Alternatives
Baseline Allocation5% (up to 15%)
Range0–15%
Cash
Baseline Allocation24 months of expenses (cash-flow strategy)
Account Type Baseline Allocation Range
Equities 65% 55–75%
Fixed Income 30% 20–40%
Alternatives 5% (up to 15%) 0–15%
Cash 24 months of expenses (cash-flow strategy)

 

Planning Tips:

Phase 5: Giving – The Legacy Builder

Persona: Ultra-high-net-worth retirees, philanthropically inclined.

Primary Goals:

 

Recommended Allocation:

Account Type
Equities
Allocation~65%
NotesPotentially higher if longevity risk is minimal
Fixed Income
Allocation~30%
Notes5–10 years of projected spending
Alternatives
Allocation5–15%
NotesGreater access to institutional strategies
Cash
Allocation24+ months (flexible)
NotesDependent on philanthropic activities
Account Type Allocation Notes
Equities ~65% Potentially higher if longevity risk is minimal
Fixed Income ~30% 5–10 years of projected spending
Alternatives 5–15% Greater access to institutional strategies
Cash 24+ months (flexible) Dependent on philanthropic activities

 

Planning Tips:

 

What Sets Gatewood Glide Apart?

The Gatewood Glidepath significantly diverges from traditional target-date funds. Here’s how:

 

Final Thoughts: Why Gatewood Glide Matters

At Gatewood Wealth Solutions, our Glidepath isn’t just about reaching retirement—it’s about confidently soaring through it. By prioritizing growth through higher equity allocations, our goal is to enable our clients not just to retire, but to retire well—maintaining their lifestyles, preserving their purchasing power, and pursuing meaningful legacies.

In short, the Gatewood Glide is designed not just for longevity, but for prosperity.

Because retirement shouldn’t mean slowing down; it should mean continuing your ascent.

Ready to Glide?

Connect with our team to start your personalized journey toward financial clarity and confidence.

 

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Bonds are subject to availability, change in price, call features and credit risk

The principal value of a target fund is not guaranteed at any time, including at the target date.

Smart Cash Strategies for Today’s Investors

At Gatewood Wealth Solutions, we believe your cash should do more than just sit in a savings account. Whether you need short-term income or are planning for a future large expense, there are smart, managed strategies designed to keep your money working while staying aligned with your financial goals. That’s where our Cash Flow Advisory Strategy and Lump Sum Advisory Strategy come in.

What Are These Strategies?

Both strategies are actively managed cash and cash-equivalent allocations designed with a goal to help clients capture higher short-term yields while maintaining liquidity and stability. However, they serve two distinct purposes:

 

How Do They Work?

Each strategy is structured using a tiered bucket system, with allocations managed by our Investment Committee. The funds are invested in a mix of ultra-short-term, high-quality bond funds and cash equivalents, allowing you to earn a competitive yield while keeping the risk low.

Both strategies use the same four investment buckets but are customized by time horizon and client-specific goals. Here is a breakdown of each bucket and its role within the strategies:

 

1. Cash Sweep (0–4 months)

 

2. Cash Equivalents (4–15 months) 

 

3. Government Duration (10–16 months)

 

4. Credit (16–24 months)

 

Here’s a simplified breakdown:

Making It Simple: A Helpful Analogy

To make the distinction even clearer, think of these two strategies like packing for a trip:

 

Both “bags” are thoughtfully packed to serve a specific purpose. By separating your short-term needs from your near-future plans, you avoid overloading your portfolio with cash—or worse, being forced to sell long-term investments at the wrong time.

When Is Each Strategy Appropriate?

 

Cash Hub vs. Planning for the Future

The Cash Hub is part of our broader retirement income strategy. It represents a specific number of months’ worth of expenses we recommend keeping liquid to avoid selling long-term investments during downturns. For many retirees, we target 18 to 24 months of non-covered expenses in cash, creating a buffer for down markets.

The Lump Sum Strategy, on the other hand, is designed for one-time planned needs. Rather than letting those dollars sit idle in a checking account or risk losing value to inflation, we position the funds in a stable, managed solution.

Example: How a Client Might Use Both

Meet Sarah, age 62, recently retired. She has:

 

Her Plan: 

 

This allows Sarah to keep her distributions steady, avoid selling stocks in a downturn, and earn more on her near-term funds than she would at the bank.

Why Not Just Use a Savings Account or CD?

While savings accounts and CD’s offer less volatility, they fall short in three key areas:

 

That said, it’s important to note: unlike bank accounts, these funds must be sold before cash becomes available. However, the process is simple and only takes 1–2 business days to settle, and we handle the logistics for you.

Bottom Line: Purpose-Driven Cash Management

Your short-term cash shouldn’t be an afterthought. With thoughtful planning, strategic allocation, and active oversight, your money can stay accessible, and productive.

If you’re holding significant cash in the bank or unsure how to structure your liquidity, let’s talk about how these strategies can work for you.

 

 

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

CDs are FDIC insured to specific limits and offer a fixed rate of return if held to maturity, whereas investing in securities is subject to market risk including loss of principal.

An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible  to lose money by investing in the Fund.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing

From Firm to Family: Why Your Financial Plan Deserves a Team

At Gatewood Wealth Solutions, wealth management extends beyond mere numbers—it’s about relationships, trust, and commitment that span generations. Our distinctive Firm-to-Family model isn’t just a slogan; it’s the foundation of how we deliver lasting value across generations.

A Team Built Around You

Unlike traditional models where clients are tethered to a single advisor, Gatewood provides an integrated team of professionals, each with a specific role:

 

Expertise That Grows with You

Beyond the core Client Care Team, we have a team of specialists in investments, tax, business, and estate planning. These professionals collaborate behind the scenes to address the complexities that come with growing wealth.

Whether you’re navigating a liquidity event, transitioning into retirement, or preparing your estate plan, our in-house specialists at Gatewood team are already in place—ready to step in and support you. No matter your life stage or estate size, the right expertise is readily available.

This approach helps keep your financial strategy on track through life’s transitions and unexpected turns—so you can move forward with greater clarity and confidence.

 

Tailored Services for Every Stage

We recognize the uniqueness of each client’s financial landscape. Our Client Care Teams are structured to reflect your specific financial complexity:

 

By aligning our teams precisely with your financial circumstances, we ensure focused attention and optimal outcomes at every life stage.

The Firm-to-Family Advantage

Our Firm-to-Family approach means your relationship extends to the entire firm rather than depending solely on an individual advisor. This method provides:

 

How We Differ from Traditional Advisors

Many wealth management firms operate on a “book of business” or “my client” model, where clients rely exclusively on one advisor for their financial planning. The advisor may fly under the banner of a big national brand, but in reality, that advisor acts as a one-man band.

This traditional approach can create vulnerabilities, particularly if the advisor moves firms, retires, or experiences life changes. At Gatewood Wealth Solutions, we embrace an “our clients” culture, ensuring your relationship is with our entire firm. This commitment means you enjoy seamless continuity, collective expertise, and personalized attention from our dedicated team, free from the disruptions often associated with traditional, advisor-dependent models.

 

Real Stories, Lasting Impact

Clients frequently highlight the tangible benefits of our comprehensive approach:

“Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family. From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s reassuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives¹.” — Dr. Boyd C., Retired Corporate Executive

 

A Client Story: The Parkers’ Journey from Overwhelmed to Empowered

Before partnering with Gatewood, the Parker family—two busy professionals with three children and aging parents—felt stretched thin. Despite solid earnings, they were unsure how to balance college savings, retirement planning, elder care responsibilities, and managing their growing portfolio. Their previous advisor provided only occasional updates and general guidance, leaving them uncertain and reactive.

After engaging Gatewood Wealth Solutions, everything changed. They were introduced to their dedicated Client Care Team, including a Wealth Advisor who listened closely to their goals, a Wealth Planner who developed a dynamic, goal-driven plan, and a Wealth Coordinator who ensured nothing slipped through the cracks.

Behind the scenes, Gatewood’s investment, tax, and estate planning specialists collaborated to build a coordinated strategy. The Parkers refinanced underperforming real estate assets, implemented a multigenerational gifting strategy, optimized their retirement drawdown plan, and established an education trust for their children.

Today, the Parkers say they finally feel in control. They’re no longer juggling disconnected advice—they have a proactive team that meets with them regularly, answers questions before they even arise, and helps them make confident decisions.

 

Ready to Experience the Gatewood Difference?

If you seek a wealth management relationship built on enduring trust, tailored strategies, and a dedicated team focused on your family’s lasting financial success, we’re ready to start the conversation.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

¹ This statement is a testimonial by a client of the financial professional as of 11/13/2023. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

 

Expertise That Grows with You

Beyond the core Client Care Team, we have a team of specialists in investments, tax, business, and estate planning. These professionals collaborate behind the scenes to address the complexities that come with growing wealth.

Whether you’re navigating a liquidity event, transitioning into retirement, or preparing your estate plan, our in-house specialists at Gatewood team are already in place—ready to step in and support you. No matter your life stage or estate size, the right expertise is readily available.

This approach helps keep your financial strategy on track through life’s transitions and unexpected turns—so you can move forward with greater clarity and confidence.

 

Tailored Services for Every Stage

We recognize the uniqueness of each client’s financial landscape. Our Client Care Teams are structured to reflect your specific financial complexity:

 

By aligning our teams precisely with your financial circumstances, we ensure focused attention and optimal outcomes at every life stage.

The Firm-to-Family Advantage

Our Firm-to-Family approach means your relationship extends to the entire firm rather than depending solely on an individual advisor. This method provides:

 

How We Differ from Traditional Advisors

Many wealth management firms operate on a “book of business” or “my client” model, where clients rely exclusively on one advisor for their financial planning. The advisor may fly under the banner of a big national brand, but in reality, that advisor acts as a one-man band.

This traditional approach can create vulnerabilities, particularly if the advisor moves firms, retires, or experiences life changes. At Gatewood Wealth Solutions, we embrace an “our clients” culture, ensuring your relationship is with our entire firm. This commitment means you enjoy seamless continuity, collective expertise, and personalized attention from our dedicated team, free from the disruptions often associated with traditional, advisor-dependent models.

 

Real Stories, Lasting Impact

Clients frequently highlight the tangible benefits of our comprehensive approach:

“Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family. From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s reassuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives¹.” — Dr. Boyd C., Retired Corporate Executive

 

A Client Story: The Parkers’ Journey from Overwhelmed to Empowered

Before partnering with Gatewood, the Parker family—two busy professionals with three children and aging parents—felt stretched thin. Despite solid earnings, they were unsure how to balance college savings, retirement planning, elder care responsibilities, and managing their growing portfolio. Their previous advisor provided only occasional updates and general guidance, leaving them uncertain and reactive.

After engaging Gatewood Wealth Solutions, everything changed. They were introduced to their dedicated Client Care Team, including a Wealth Advisor who listened closely to their goals, a Wealth Planner who developed a dynamic, goal-driven plan, and a Wealth Coordinator who ensured nothing slipped through the cracks.

Behind the scenes, Gatewood’s investment, tax, and estate planning specialists collaborated to build a coordinated strategy. The Parkers refinanced underperforming real estate assets, implemented a multigenerational gifting strategy, optimized their retirement drawdown plan, and established an education trust for their children.

Today, the Parkers say they finally feel in control. They’re no longer juggling disconnected advice—they have a proactive team that meets with them regularly, answers questions before they even arise, and helps them make confident decisions.

 

Ready to Experience the Gatewood Difference?

If you seek a wealth management relationship built on enduring trust, tailored strategies, and a dedicated team focused on your family’s lasting financial success, we’re ready to start the conversation.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

¹ This statement is a testimonial by a client of the financial professional as of 11/13/2023. The client has not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

How One Business Owner Saved Over $12K by Electing S-Corp Status

When Mike started his consulting business, he did what many new entrepreneurs do—he operated as a sole proprietor. It was simple, required no formal setup, and allowed him to focus on building his client base.

But two years in, with business booming and $200,000 in net income on the books, Mike’s CPA asked a pivotal question:

“Have you thought about electing to be taxed as an S-corporation?”

Mike had heard the term before but didn’t quite understand how it worked—or why it mattered. What followed was an analysis that changed the way Mike ran his business and saved him thousands of dollars every year.

The Tax Breakdown: Sole Proprietor vs. S-Corp

As a sole proprietor, Mike was paying self-employment tax on every dollar of his $200,000 net income. That meant:

 

Ouch.

But under an S-Corp structure, things look different. Mike would pay himself a reasonable salary (let’s say $96,000) and take the rest of the profit ($104,000) as a distribution, which isn’t subject to self-employment taxes.

Here’s how the S-Corp scenario plays out:

 

The Cost of Making the Switch

Of course, S-corporation status comes with a few additional administrative requirements:

Even after subtracting these estimated costs, Mike stood to save between $12,212 and $14,212 per year.

 

Bonus Tax Benefit: State Income Tax Deduction

But that’s not all. Because S-corps are pass-through entities, Mike also became eligible for Missouri’s pass-through entity tax election, allowing state taxes to be paid at the business level—rather than being limited to the $10,000 SALT deduction cap on his personal return.

This strategy gave Mike additional federal tax savings, since he could now fully deduct state taxes paid by the S-corp.

 

Other Advantages of Being an S-Corporation

Beyond tax savings, Mike discovered several practical and strategic benefits:

 

Additional Considerations When Converting to an S-Corporation

Fringe Benefits May Be Less Favorable
S-corporation owners who hold more than 2% of the company are treated differently than sole proprietors or C-corporation owners when it comes to fringe benefits.

 

Reasonable Compensation Is Required

The IRS requires that S-Corp shareholder-employees pay themselves a reasonable wage before taking distributions. This is a common IRS audit focus.

Tip: A reasonable salary should be based on industry standards, the services performed, and the time spent working in the business. In our earlier example, $96,000 appears reasonable—but this figure should be justified and documented.

 

State Tax Workaround – SALT Cap (PTE Election)

Some states, including Missouri, allow Pass-Through Entity (PTE) tax elections, which can help bypass the federal $10,000 cap on state and local tax (SALT) deductions.

However, this strategy comes with caveats:

 

Tracking Basis and Distribution Rules

S-Corp shareholders must carefully track their basis (i.e., their investment in the company).

 

Timeline for Electing S-Corp Status

To be effective for the current tax year, you must file Form 2553 by March 15.

 

Exit Strategy and Flexibility

S-Corp status is relatively easy to revoke if your situation changes. However, once revoked, you generally cannot re-elect S-Corp status for five years without IRS approval.

 

Bottom Line: Is It Time to Make the Switch?

For Mike, the math was simple: Save over $12,000 a year, protect personal assets, and run a more structured, scalable business.

If you’re earning over $50,000–$60,000 in annual net income, talk to your CPA or financial advisor about whether electing S-Corp status could be right for you. With the right structure and planning, you may save thousands each year in taxes—while building a more scalable and protected business. For many small business owners, this single decision can meaningfully boost profitability and financial efficiency—without changing the work you do.

Want to explore whether switching to an S-Corp could save you thousands too? Let’s talk.

 

Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

This is a hypothetical example and is not representative of any specific situation. Your results will vary.

What Happens in Your House Is More Important Than the White House

Tariffs. Tax policy. Trump.

Turn on the news and you’ll be flooded with political noise—but let’s cut through the clutter:

What matters most to your family’s financial future isn’t in Washington, D.C.—it’s within your own four walls.

At Gatewood, we help families shift their focus away from the headlines they can’t control and toward the household habits they can. While income tends to steal the spotlight, spending is the real unsung hero of long-term financial independence. Most financial advisors avoid talking about spending—it can feel too personal, too awkward. They fear upsetting clients by confronting sensitive realities. But not us. We believe in honest conversations because financial discipline today lays the foundation for your family’s future freedom.

Understanding the Budgeting Landscape

Clients often ask us: “How much should I spend on housing?” or “Am I saving enough?”

To help answer these, here’s a comparison of how three well-known frameworks—Dave Ramsey, the CFP Board, and CFA-informed guidance—stack up:

Category
🏠 Housing & Utilities
Dave Ramsey25%
CFP Board≤ 28%
CFA-Informed25–30%
🚗 Transportation
Dave Ramsey10–15%
CFP Board≤ 15%
CFA-Informed10–15%
🍽️ Food & Groceries
Dave Ramsey10–15%
CFP Board10–15%
CFA-Informed10–15%
⚕️ Health Care
Dave Ramsey5–10%
CFP Board5–10%
CFA-Informed5–10%
🎓 Education & Childcare
Dave Ramsey5–10%
CFP Board5–10%
CFA-Informed5–10%
💳 Consumer Debt
Dave Ramsey0%
CFP Board≤ 10%
CFA-Informed≤ 10%
💰 Total Debt (incl. housing)
Dave Ramsey≤ 35–40%
CFP Board≤ 36%
CFA-Informed≤ 36–40%
🎭 Entertainment & Personal
Dave Ramsey5–10%
CFP Board5–10%
CFA-Informed5–10%
🛠️ Miscellaneous
Dave RamseyIncluded in personal
CFP Board5–10%
CFA-Informed5–10%
🛡️ Savings, Insurance, and Investments
Dave Ramsey10–15%+
CFP Board10–20%
CFA-Informed≥ 15–20%
💝 Giving & Charity
Dave Ramsey10% recommended
CFP Board5–10% (flexible)
CFA-Informed5–10% (flexible)
Category Dave Ramsey CFP Board CFA-Informed
🏠 Housing & Utilities 25% ≤ 28% 25–30%
🚗 Transportation 10–15% ≤ 15% 10–15%
🍽️ Food & Groceries 10–15% 10–15% 10–15%
⚕️ Health Care 5–10% 5–10% 5–10%
🎓 Education & Childcare 5–10% 5–10% 5–10%
💳 Consumer Debt 0% ≤ 10% ≤ 10%
💰 Total Debt (incl. housing) ≤ 35–40% ≤ 36% ≤ 36–40%
🎭 Entertainment & Personal 5–10% 5–10% 5–10%
🛠️ Miscellaneous Included in personal 5–10% 5–10%
🛡️ Savings, Insurance, and Investments 10–15%+ 10–20% ≥ 15–20%
💝 Giving & Charity 10% recommended 5–10% (flexible) 5–10% (flexible)

 

Key Differences:

The Gatewood Family Budgeting Guidelines

At Gatewood, we synthesized the best of all approaches and added real-life insight. Here’s our proprietary guide we call The Gatewood Family Budgeting Guidelines:

Category
🏠 Housing & Utilities
Gatewood Target (±5%)25%
🚗 Transportation
Gatewood Target (±5%)10%
🍽️ Food & Groceries
Gatewood Target (±5%)10%
⚕️ Health Care
Gatewood Target (±5%)7.5%
🎓 Education & Childcare
Gatewood Target (±5%)7.5%
💳 Consumer Debt
Gatewood Target (±5%)0% (yes, zero!)
💰 Total Debt (incl. housing)
Gatewood Target (±5%)25%
🎭 Entertainment & Personal
Gatewood Target (±5%)5%
🛠️ Miscellaneous
Gatewood Target (±5%)5%
🛡️ Savings, Insurance, and Investments
Gatewood Target (±5%)20% (go for more!)
💝 Giving & Charity
Gatewood Target (±5%)10%
Category Gatewood Target (±5%)
🏠 Housing & Utilities 25%
🚗 Transportation 10%
🍽️ Food & Groceries 10%
⚕️ Health Care 7.5%
🎓 Education & Childcare 7.5%
💳 Consumer Debt 0% (yes, zero!)
💰 Total Debt (incl. housing) 25%
🎭 Entertainment & Personal 5%
🛠️ Miscellaneous 5%
🛡️ Savings, Insurance, and Investments 20% (go for more!)
💝 Giving & Charity 10%

A Look Inside Our Home: My Family’s Budget Case Study

We don’t just preach these principles—we live them. Here’s a transparent look at how my family’s real monthly spending lines up with our own guidelines (below). These figures are after our 401(k) and HSA contributions are maximized. As you will see, the Goeddel family is far from perfect! I hope sharing this information and being vulnerable is helpful to you and your family.

Category
🏠 Housing & Utilities
Gatewood Guidelines (%)25%
Actual Family Spending ($)$8,400
Actual Family Spending %34%
Notes$7,000 mortgage plus extra principal payments; $1,400 bills & utilities
🚗 Transportation
Gatewood Guidelines (%)10%
Actual Family Spending ($)$500
Actual Family Spending %2%
NotesJust gas—no car payments
🍽️ Food & Groceries
Gatewood Guidelines (%)10%
Actual Family Spending ($)$3,300
Actual Family Spending %13%
Notes$2,500 groceries, $600 dining out or delivery, $200 coffee
⚕️ Health Care
Gatewood Guidelines (%)7.5%
Actual Family Spending ($)$500
Actual Family Spending %2%
NotesOut-of-pocket medical
🎓 Education & Childcare
Gatewood Guidelines (%)7.5%
Actual Family Spending ($)$2,000
Actual Family Spending %8%
Notes529 Plan contributions for two kids
💳 Consumer Debt
Gatewood Guidelines (%)0%
Actual Family Spending ($)$0
Actual Family Spending %0%
NotesNone!
💰 Total Debt
Gatewood Guidelines (%)25%
Actual Family Spending ($)$7,000
Actual Family Spending %28%
NotesMortgage
🎭 Entertainment & Personal
Gatewood Guidelines (%)5%
Actual Family Spending ($)$3,400
Actual Family Spending %14%
NotesAmazon, clothes, date nights, personal care, pets
🛠️ Miscellaneous
Gatewood Guidelines (%)5%
Actual Family Spending ($)$1,500
Actual Family Spending %6%
NotesUnplanned monthly expenses
🛡️ Savings, Insurance, and Investments
Gatewood Guidelines (%)20%
Actual Family Spending ($)$3,000
Actual Family Spending %12%
NotesTrust contributions + full insurance suite
💝 Giving & Charity
Gatewood Guidelines (%)10%
Actual Family Spending ($)$2,400
Actual Family Spending %10%
NotesCharitable giving + gifts to family/friends
Category Gatewood Guidelines (%) Actual Family Spending ($) Actual Family Spending % Notes
🏠 Housing & Utilities 25% $8,400 34% $7,000 mortgage plus extra principal payments; $1,400 bills & utilities
🚗 Transportation 10% $500 2% Just gas—no car payments
🍽️ Food & Groceries 10% $3,300 13% $2,500 groceries, $600 dining out or delivery, $200 coffee
⚕️ Health Care 7.5% $500 2% Out-of-pocket medical
🎓 Education & Childcare 7.5% $2,000 8% 529 Plan contributions for two kids
💳 Consumer Debt 0% $0 0% None!
💰 Total Debt 25% $7,000 28% Mortgage
🎭 Entertainment & Personal 5% $3,400 14% Amazon, clothes, date nights, personal care, pets
🛠️ Miscellaneous 5% $1,500 6% Unplanned monthly expenses
🛡️ Savings, Insurance, and Investments 20% $3,000 12% Trust contributions + full insurance suite
💝 Giving & Charity 10% $2,400 10% Charitable giving + gifts to family/friends

A Few Highlights

Where We’re Winning

 

Where We’re Improving

 

Take Control of Your Financial Future

Financial freedom isn’t found in the headlines—it’s built through intentional habits, month after month. At Gatewood, we help families match their money with their values—so they can create meaningful wealth and lasting legacies.

Ready to align your budget with your future? Let’s talk. We’re here to help.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

Dave Ramsey is not affiliated with or endorsed by LPL Financial and Gatewood.

 

 

Still Working, Still Planning: Why In-Service Distributions Can Be a Game Changer

For high-earning professionals, retirement isn’t a date—it’s a strategy. And one of the most overlooked ways to take control of that strategy, even while you’re still working, is through an in-service distribution (ISD).

We’re often asked this question:

 “Can I move my 401(k) into an IRA while I’m still working—so I can take full advantage of active, personalized portfolio management?”

In many cases, the answer is yes. And when done strategically, it can unlock greater control, tax advantages, and long-term flexibility.

Let’s explore how in-service distributions work—and when they make sense as part of a bigger-picture plan for your future.

What You Gain with an In-Service Distribution?

An in-service distribution allows you to move all or part of your 401(k), 403(b), or pension assets into an IRA—without leaving your job. As long as the transfer is done as a direct rollover, your funds retain their tax-deferred status and the transaction is not taxable.

The IRS permits in-service distributions from:

 

But just because you can, doesn’t always mean you should—yet for many executives, this move creates flexibility, personalization, and greater alignment with long-term goals.

A Tale of Two Executives

Consider the stories of Michael and Susan, both successful professionals at different stages in their careers:

MICHAEL, age 59½, is a senior vice president who has spent 25 years with his company. He’s still passionate about his work but is beginning to think about his long-term financial independence. His 401(k) has grown substantially, but he feels limited by the investment options in the plan.

Because his plan allows for in-service distributions at 59½, Michael transfers a portion of his account into an IRA, enabling Gatewood’s investment team to tailor his strategy, diversify his portfolio, and begin creating a tax-smart income plan for future retirement.

 

SUSAN, age 67, is a chief operating officer who planned to retire at 65 but has decided to continue working for a few more years. She wants to avoid unnecessary risk and better align her retirement assets with her estate plan.

Her company’s retirement plan permits in-service distributions after age 65, and she uses the opportunity to roll assets into a professionally managed IRA. This move gives her more flexibility in charitable giving, Required Minimum Distribution (RMD) planning, and tax-efficient withdrawals—while continuing to contribute to her 401(k).

Questions to Consider Before Making an In-Service Distribution

 

If you answered “yes” to more than one of these questions, an in-service distribution may be a valuable next step.

The Strategic Advantages & Smart Tradeoffs

The Advantages

Rolling assets into a Gatewood-managed IRA opens the door to a more expansive investment toolkit. Gone are the one-size-fits-all fund menus. Instead, you gain access to custom portfolios built with individual securities, ETFs, and even alternative investments—crafted around your objectives.

You also unlock:

 

*Note: Gatewood helps ensure that rollovers retain their ERISA-level protections by correctly classifying and documenting IRA rollovers.

Important Considerations

While an in-service distribution provides significant advantages, there are tradeoffs to be aware of:

 

When Your Current Plan May Be Good Enough (For Now)

If your employer’s plan offers strong investment options, low costs, and you’re not yet focused on tax strategy or estate planning, staying the course may be appropriate—at least for now.

But if you’ve outgrown the plan’s limits, and want more alignment with your total financial life, then an in-service rollover may offer the clarity, control, and customization you deserve.

Why Gatewood for In-Service Distribution Management?

At Gatewood Wealth Solutions, we don’t just manage investments—we guide families through life’s most important financial transitions. Our in-service distribution process reflects that philosophy.

With us, you gain:

 

Final Thought: It’s Not About Leaving Your Job. It’s About Taking Control.

Taking an in-service distribution isn’t about leaving your employer—it’s about taking control of your financial future.

If you’re ready for more flexibility, more strategy, and more confidence in your retirement plan, let’s start the conversation.

Your future self will thank you.

 

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

 

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

¹A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer’s plan, if permitted; 2. Roll over the assets to their new employer’s plan, if one is available and rollovers are permitted; 3. Roll over to an IRA; or 4. Cash out the account value (38-LPL) show less

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

The 9 Essentials Every Thoughtful Estate Plan Should Include

The Unfinished Plan

David and Michelle are in their early 50’s, juggling successful careers, two teenagers, and aging parents who are starting to need more care. Like many, they meant to revisit their estate plan, but life got in the way. Their will is nearly a decade old. Their home is titled only in Michelle’s name. And their IRA beneficiaries haven’t been reviewed since David switched jobs.

They know planning is important. But between work and family, it’s hard to make the time.

Then imagine a sudden accident. Would Michelle be able to access David’s accounts or make medical decisions? Would their kids be placed with the right guardians? Without updated documents, their family could be left in legal limbo during one of the most difficult times.

What Is Estate Planning Really About?

Estate planning isn’t just for the wealthy. It’s for anyone who wants to protect the people they love and leave behind clarity instead of chaos. It involves deciding who will manage your assets, how they’ll be distributed, and who will make decisions if you can’t.

More than anything, it’s an act of care.

  1. Understand Probate and How to Avoid It

 

Probate is a public, court-supervised process for settling estates. It can be expensive and slow. Tools like revocable trusts, joint account titling, and beneficiary designations can reduce or eliminate the need for probate.

  1. Create or Update Your Will

 

Your will names guardians for minor children and explains how you want your assets distributed. While it doesn’t avoid probate, it gives clear instructions and can help reduce family conflict.

  1. Check Your Beneficiaries and Account Titles

 

IRAs, 401(k)s, insurance policies, and even bank accounts can have named beneficiaries or be set up as transfer-on-death (TOD). Review these regularly—especially after marriage, divorce, or the birth of a child.

Gatewood Guidance: These designations often override your will. We help ensure your titling and beneficiaries reflect your current wishes.

  1. Consider a Revocable Living Trust

 

A living trust can help manage assets during life and transfer them privately after death, avoiding probate. It’s ideal for blended families, out-of-state property, or complex estates.

  1. Establish Powers of Attorney and Healthcare Directives

 

Appoint someone you trust to make financial and medical decisions if you’re incapacitated. Documents include:

 

Don’t forget your family: If you have aging parents or unmarried adult children, help them get these documents in place. Without them, you may not have legal authority in an emergency.

  1. Have the Conversation

 

Talking about your estate plan with family can feel awkward. But it’s one of the most valuable things you can do. It sets expectations, reduces conflict, and ensures your intentions are understood.

Tips for a Better Conversation:

 

Gatewood Wisdom: A well-prepared family is the best legacy you can leave.

  1. Be Strategic About Taxes

 

Smart estate planning can help reduce taxes and preserve wealth:

 

We collaborate with your CPA and estate attorney to build an integrated, tax-efficient strategy.

  1. Keep It Current

 

Review your plan every three years or when life changes. New job? Move? Grandchild born? These events should prompt an update.

  1. Get Organized

     

Inheriting Money, Property, or Investments? Here’s What to Do Next

Receiving an inheritance can be a powerful and emotional moment. Whether it follows the loss of a parent, grandparent, or another loved one, it often comes with a mix of gratitude, responsibility, and uncertainty. In many cases, these inherited assets are not held in trust or managed by a trustee—they come to you directly through beneficiary designations, account titling, or the probate process.

At Gatewood Wealth Solutions, we guide clients through these transitions with the thoughtful planning and care they deserve.

Here’s what you need to know if you’ve recently been notified that you’re inheriting assets—and how to make confident, well-informed decisions that align with your long-term goals.

Types of Assets You Might Inherit

Depending on your loved one’s estate, you might inherit:

 

Inherited Assets not Held in a Trust May Pass to Heirs in One of Two Primary Ways:

By Operation of Law:

This includes assets that transfer directly to a named individual through mechanisms like beneficiary designations, joint ownership with rights of survivorship, or titling such as Transfer on Death (TOD) or Payable on Death (POD).

Common examples include retirement accounts, life insurance policies, jointly owned bank or brokerage accounts, and certain real estate titles. These assets typically bypass probate and go directly to the named beneficiary.

Through the Probate Process:

If an asset was not titled properly or did not have a valid or current beneficiary designation, it becomes part of the decedent’s estate and must go through probate.

This legal process involves court oversight and can delay distribution while ensuring debts and taxes are settled. Probate assets often include solely owned property, untitled personal items, or accounts where no beneficiary was named.

Each type of inherited asset comes with its own set of rules—governing how it transfers, when it must be distributed, and what taxes may apply.

From the timing of IRA distributions to the tax treatment of inherited property or investment accounts, it’s essential to understand the unique requirements and implications of each asset you receive.

STORY #1: Inheriting a Home Through Probate 

David, age 38, inherited his mother’s $300,000 home in St. Louis after her passing. The home had no beneficiary deed, so it did not transfer automatically upon death. Instead, it passed to David through probate, according to the terms of his mother’s will, which named him as the sole beneficiary of the property.

The house was fully paid off and had been her primary residence. David lived across the country and wasn’t interested in relocating. Emotionally attached but financially uncertain, he faced several key decisions: Should he keep the home? Rent it out? Or sell it?

Challenges: 

 

Solution:

With no beneficiary deed in place, the home passed through probate according to David’s mother’s will. As an out-of-state beneficiary, David needed help understanding his responsibilities and evaluating whether to keep, rent, or sell the property.

Gatewood helped David by:

 

Ultimately, David chose to sell the home and invest the proceeds in a diversified portfolio aligned with his long-term goals.

STORY #2: Inheriting Financial Accounts with Beneficiary Designations

Julie, age 52, inherited the bulk of her father’s estate through direct beneficiary designations. She was named on each account as the Payable on Death (POD) or Transfer on Death (TOD) recipient, allowing her to bypass probate and take direct ownership of the assets.

Her inheritance included:

 

While the process of receiving the assets was relatively straightforward, Julie wasn’t sure where to begin—and she recognized that timing and tax decisions could have long-term implications for her wealth.

Challenges:

 

Solution:

Gatewood worked closely with Julie to help her gain clarity and confidence. We:

 

With a clear, personalized plan in place, Julie could move forward with confidence—using the inheritance to strengthen her financial foundation and accelerate her path to independence.

Key Questions to Ask Yourself

Inheriting assets can be overwhelming—especially when you’re navigating grief, unfamiliar paperwork, and looming decisions. Asking the right questions early can help you stay focused, intentional, and in control:

 

Common Issues & Smart Action Steps by Asset Type

Inherited Home

 

IRA or Retirement Plan 

 

Bank Accounts

 

Investment Accounts or Stock Certificates

 

Life Insurance & Annuities

 

Vehicles & Personal Property

 

Other Real Estate

 

Business Interests

 

Why Work with Gatewood—and an Estate Attorney

Inheriting assets is rarely simple. There are legal steps to follow, tax traps to avoid, and emotional decisions to make. But you don’t have to navigate it alone.

At Gatewood Wealth Solutions, we offer the clarity and expertise to help you:

 

This is about more than just what you’ve received. It’s about honoring a legacy, avoiding missteps, and building a future that reflects your values.

Let’s start with a conversation.

Because Wealth with Purpose starts with wisdom in moments like these.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC

5 Things to Review at Age 50 to Stay Retirement Ready

As you enter your 50’s, retirement is no longer a distant dream—it’s a fast-approaching reality. For couples like David and Lisa, both busy professionals juggling demanding careers, aging parents, and two kids in college, the pressure is real. Between tuition bills, thoughts of future weddings, and a desire to retire early (or at least have the option), they’ve started asking the big questions: Are we on track? Can we afford to retire when we want to? What happens if we can’t work as long as we thought?

If this sounds like you, you’re not alone. Your 50’s are a critical decade for aligning your wealth with your future goals. Here are five key areas to review now to make sure your retirement plan stays on course:

1. Supercharge Your Retirement Savings

Now’s the time to take full advantage of catch-up contributions. In 2025, individuals age 50 and older can make a catch-up contribution of $7,500 to their 401(k), bringing their total annual limit to $31,000.

For those ages 60 to 63, an additional special catch-up of $3,750 is available, allowing a maximum contribution of up to $34,750.

David and Lisa maxed out their workplace plans and reviewed whether Roth or traditional contributions made more sense based on their tax situation.

Also consider:

 

2. Evaluate Your Investment Allocation

The portfolio that got you here might not be the one to get you through retirement. You’re close enough to retirement that preserving wealth matters—but far enough away that you still need growth.

Make sure your investment strategy reflects your time horizon, risk tolerance, and future income needs. Lisa and David worked with their advisor to assess:

 

3. Review Your Retirement Timeline and Income Plan

What if you want to retire at 60? Or take a step back at 58? It’s time to explore your options.

Your 50’s are the perfect time to start modeling different retirement ages and income strategies. At Gatewood, we walk clients through scenarios that answer:

 

And don’t forget Social Security—understanding your optimal claiming strategy can make a significant difference over time.

4. Don’t Overlook Healthcare and Long-Term Care Planning

If you retire before age 65, how will you handle healthcare costs? This is one of the biggest surprises for early retirees. Lisa and David ran a cost analysis to see what COBRA, ACA plans, or a health sharing ministry might cost if they retired early.

Also consider:

 

5. Revisit Your Estate and Family Planning

Your wealth isn’t just for retirement—it’s part of your legacy. In your 50’s, it’s time to update your estate documents, revisit beneficiaries, and plan for future family milestones.

Lisa and David:

 

This is also a great time to open up conversations with your kids about money, values, and your plans.

Bonus: Get a Professional Second Opinion

A lot can change in your 50’s—and it’s easy to overlook opportunities or risks. A financial planning team can help you:

 

David and Lisa left their meeting feeling confident—not because they had all the answers, but because they had a plan.

So, whether you’re thinking about retiring early, catching up on savings, or just want to make sure you’re on track, now is the time to pause, plan, and prepare.

Let’s make sure the next chapter of your life is everything you’ve worked for—and more.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

A plan participant leaving an employer typically has four options (and may engage in a combination of these options): 1. Leave the money in their former employer’s plan, if permitted; 2. Roll over the assets to their new employer’s plan, if one is available and

Living Well, Giving Well: Legacy Planning Insights

A Story of Reflection, Purpose, and Partnership

James and Evelyn, both in their early 70s, had spent the last few decades building a life they were proud of. They raised three children, enjoyed meaningful careers, and were now entering retirement with a sense of freedom—and a growing list of questions.

As they sipped coffee one morning overlooking their garden, their conversations increasingly turned to what came next—not just in terms of travel or hobbies, but how they wanted to be remembered. James had just received a letter about his required minimum distributions (RMD’s), and Evelyn had been reading about qualified charitable distributions (QCD’s). Both had been organizing old files and revisiting their estate plan.

“It’s not just about what we leave behind,” Evelyn said, “it’s about the impact we can make while we’re still here.”

Their story is one we often hear—a couple with more time to focus on family, travel, and passions, while also considering how to align their wealth with their values and legacy. Whether you’re looking to simplify, share, or steward your wealth more intentionally, your 70’s are an ideal time to revisit your financial plan. Here are five areas to focus on to live—and give—with greater purpose.

1. Intentional Giving During Your Lifetime

Giving isn’t just about what happens after you’re gone. Many couples like James and Evelyn find joy in witnessing the impact of their generosity now.

Consider:

 

2. Required Minimum Distributions (RMD’s)

RMD’s are the IRS’s way of ensuring that tax-deferred retirement savings are eventually taxed. Starting at age 73 (or 75 for those born in 1960 or later), you’re required to withdraw a minimum amount annually from accounts like IRA’s and 401(k)’s.

At Gatewood, we help ensure your RMD strategy supports both your lifestyle and your legacy. For James and Evelyn, this meant setting aside what they needed for living expenses, donating through QCD’s, and reinvesting any surplus to align with their future goals.

3. Review and Refresh Your Estate Plan

Your estate plan is your voice for the future. By your 70’s, it’s critical to ensure:

 

We recommend a full estate plan review every three years—or sooner if there’s been a major change in your family, finances, or goals.

4. Simplify and Organize for Your Heirs

Part of good legacy planning is making life easier for your loved ones when the time comes. James and Evelyn decided to:

 

These steps aren’t just practical—they’re a profound expression of care.

5. Live Fully, With Purpose

Legacy is about more than money—it’s about how you live, what you value, and how you share that with others.

James and Evelyn chose to:

 

They realized that living well now is one of the most meaningful legacies they could offer.

Let’s Build Your Living Legacy

At Gatewood, our goal is to help clients go beyond the numbers to live and give with purpose. Whether you need help structuring gifts, updating your estate plan, or simply organizing your financial life, we’re here to guide you.

Your legacy doesn’t start after you’re gone—it begins with how you live today.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.

There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification

and asset allocation do not protect against market risk.

The information provided here is general in nature. It is not intended, nor should it be construed, as legal or tax advice.  To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Fortress Gatewood: Bear Market Ready, Always. 

When markets drop sharply—like they did in response to the latest Trump tariff announcements—emotions run high, headlines swirl, and investors often make costly decisions. We get it. Downturns feel uncomfortable, especially when they’re fast, steep, or prolonged. 

But here’s what we know from decades of managing wealth through every kind of market cycle: the worst days in the market are often immediately followed by the best. Panic may feel natural—but it’s rarely profitable. 

At Gatewood Wealth Solutions, we don’t just react to volatility. We prepare for it. That’s why every client benefits from our time-tested approach we call Fortress Gatewood—a strategy purpose-built to keep you Bear Market Ready. 

 

 

 

 

A Strategy Built for Uncertainty 

Rather than try to predict the unpredictable, Fortress Gatewood is designed to weather storms, seize opportunities, and help you avoid panic-driven mistakes. It’s not just a mindset—it’s a structured plan built around time segmentation that gives each dollar a purpose and timeline: 

 

Moat Ring 1: Cash (Immediate Preservation) 

We recommend clients hold at least 2 years of spending in cash or cash alternatives. This liquidity buffer is your first line of defense—so you don’t have to sell investments during a downturn just to fund your life. 

Moat Ring 2: Fixed Income (Mid-Term Stability) 

We allocate 5–8 years of spending in high-quality fixed income. Bonds act as a second moat, with a goal of offering stability and income while giving your equities the time they need to rebound. 


Moat Ring 3: Equities (Long-Term Growth) 

The rest of your portfolio is positioned for growth, invested in globally diversified equities with a 7–10 year time horizon. This long view helps you stay focused on your goals—not the day-to-day headlines. 

Why This Works—Even in the Worst of Times 

Here’s what history tells us about market declines and recoveries: 

 

With 2 years of cash and 5–8 years of bonds, our clients don’t need to tap into their equity investments during downturns. That means they can remain confidently invested—giving their portfolios the opportunity needed for recovery and growth potential.

 

Why It Matters Now 

In times like this, when fear creeps in and markets swing wildly on breaking headlines (even false ones), our clients know they’re not at the mercy of the market. They have a strategy, a plan, and a team. Rather than letting complacency take root during the good times at all-time market highs, they set aside profits to strengthen their defenses.  

They’re not guessing. They’re prepared.  

 

The Gatewood Difference 

While others try to time the market or soothe with empty platitudes, we provide clarity, structure, and a strategy built with a goal to endure. Fortress Gatewood helps you weather volatility, stay aligned with your long-term goals, and build lasting wealth with confidence. 

Because we believe your financial future deserves more than just hope—it deserves a fortress. 

Important Clarification on Life Stage Strategy

Fortress Gatewood strategy is built around aligning your portfolio with your personal time horizon, income needs, and life stage. While the 2 years of cash and 5–8 years of bonds approach is ideal for clients in or near retirement—who are actively drawing from their portfolio—it’s not a one-size-fits-all model.

For younger clients who are still in their earning and accumulation years, we typically recommend a higher allocation to equities and lower levels of cash and bonds, since their income covers current expenses and their investment time horizon is longer. That said, maintaining strategic cash reserves (typically 3–6 months of living expenses) is still critical for emergencies and flexibility.

The core principle remains: structure your portfolio so you don’t need to sell during a downturn. Whether you’re accumulating or withdrawing, Fortress Gatewood adapts to give you confidence and preservation—tailored to your life stage.

 

Ready to Build Your Financial Fortress? 

If you’re tired of reacting to markets and ready to plan with purpose, let’s talk. Our team can help you build a resilient strategy—one that’s designed with a goal to keep you confidently invested through whatever the future holds. 

Contact us today to see how Fortress Gatewood can support your goals, your confidence in the long-term, and your family’s financial future.

Simple Wealth, Inevitable Wealth: Nick Murray’s Timeless Principles of Portfolio Construction

When it comes to investing, simplicity and discipline often outperform complexity and constant tinkering. Few voices in financial planning have championed this notion more effectively than Nick Murray, one of the most respected minds in wealth management. His philosophy centers on long-term equity investing, behavioral discipline, and the idea that financial advisors are coaches, not market forecasters.

At Gatewood, we embrace many of these foundational principles while adding our own personalized approach to support our clients’ goals in building enduring wealth aligned with their values and purpose.

Nick Murray’s Core Principles of the “Ideal Portfolio”

  1. Equities Are the Best Path to Long-Term Wealth
    Murray firmly believes that stocks are the only reliable way to outpace inflation and generate real wealth over time. While cash and bonds may offer short-term stability, their purchasing power erodes in the long run. A well-constructed equity portfolio, in contrast, provides access to the enduring growth of businesses and economies across the globe.

 

  1. Diversification Reduces Risk
    Although equities are central to a strong portfolio, diversification across industries, geographies, and asset classes helps buffer against sudden market shocks. The goal? Avoid letting any single event or sector derail your long-term plan.
  2. Bonds Have a Role—But a Limited One
    According to Murray, a traditional 60/40 “balanced” portfolio is not optimal for long-term investors. Bonds, he argues, primarily serve as a psychological cushion. For those with a lengthy time horizon, over-allocating to bonds can actually increase the risk of running out of money in retirement. The risk of a loss of purchasing power is often much greater than the risk of short-term market volatility.
  3. Investor Behavior Matters More Than Portfolio Construction
    Even the best-designed portfolio can fail if an investor succumbs to panic. Murray emphasizes that market volatility is not the true enemy—emotional decisions are. Remaining invested through bear markets is the key to compounding wealth.
  4. No Market Timing—Ever
    Attempting to forecast short-term market movements is a fool’s errand, says Murray. Rather than chasing trends or reacting to market noise, investors should rely on a disciplined, repeatable process that keeps them invested for the long haul.
  5. Retirees Need a High Allocation to Equities
    One of Murray’s more controversial stances is that retirees should still hold significant equity exposure. Why? Because the greatest threat in retirement is inflation. If a retiree’s portfolio does not grow over time, their purchasing power diminishes—often severely—in the later stages of retirement.

How Gatewood Builds On Murray’s Principles

  1. Purpose-Driven Investing
    Wealth is personal. Every portfolio we construct at Gatewood aligns with our clients’ values, goals, and long-term vision. Rather than defaulting to cookie-cutter strategies, we develop personalized allocations for business owners, high-net-worth families, and individuals navigating complex financial scenarios. Your portfolio aligns with your overall financial plan and your personal preferences.
  2. A Systematic, Process-Driven Approach
    We take the behavioral aspect of investing seriously. While discipline is crucial, relying on willpower alone is risky. Instead, we employ a structured, repeatable process that helps clients avoid emotional pitfalls—particularly during turbulent markets.
  3. Enhancing Diversification With Alternative Strategies
    Equities remain the core of our portfolios, but we also incorporate alternative investments and tax-optimized strategies to help mitigate risk and enhance long-term returns. This added layer of diversification complements Murray’s model while adapting it to today’s investment landscape.
  4. Planning for the Transition to Retirement
    Rather than defaulting to a blanket recommendation for high equity exposure, we craft personalized withdrawal strategies that consider your income needs, tax exposure, and continued growth potential. A well-constructed equity portfolio provides access to the enduring growth of businesses and economies across the globe.
  5. Data-Driven Risk Management
    Discipline matters, but data does too. We use real-time financial modeling and stress testing to keep our clients prepared for the unexpected. This helps keep both your portfolio—and your peace of mind—intact, even in worst-case scenarios.

 

The Bottom Line: Principles + Process = Success

Nick Murray’s philosophy offers a timeless foundation for building long-term wealth. However, execution matters as much as the theoretical framework. At Gatewood, we pair Murray’s principles with our own strategic process—one designed to guide you through market ups and downs with confidence.

Long-term investing is simple, but that doesn’t mean it’s easy. If you’re looking for a financial partner who blends the discipline of a seasoned advisor with the personalization that real families and businesses need, we’d love to help. Let’s develop a plan that aligns with your purpose, your goals, and your future.

 

Ready to Take the Next Step?

If you’re ready to explore how these principles can translate into real-life wealth strategies for you or your business, schedule a conversation with Gatewood today. We’re here to help you build, protect, and maximize your wealth—so you can focus on living the life you’ve envisioned.

 

 

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Investing involves risk including loss of principal.  No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value

Bonds are subject to credit, market, and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Testimonials

"Our relationship with Gatewood Wealth Solutions has evolved over the years right along with our family.  From building and protecting our wealth to retirement and estate planning, Gatewood has guided us and enabled our objectives. It’s assuring to know skilled professionals we trust are working with us to optimize what we have worked for all our lives. "

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Dr. Boyd C.
Retired Corporate Executive 11.13.23

Testimonials Disclosure

The statements provided are testimonials by clients of the financial professional. The clients listed have not been paid or received any other compensation for making these statements. As a result, the client does not receive any material incentives or benefits for providing the testimonial. These views may not be representative of the views of other clients and are not indicative of future performance or success.

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