August 2025 Newsletter

We hope you and your families had a great summer!

It is only fitting August’s newsletter focuses on education. Below you will find some helpful tips, updates, and guides to 529s and education planning. Please reach out to our team if this is a goal for you, your children, or your grandchildren.

As always, this month’s newsletter also includes a monthly market update and insights from Sanctuary Wealth’s CIO, Mary Ann Bartels.

We look forward to cooler weather and all that’s in store for Fall 2025!

*Our office will be closed Monday, September 1st for Labor Day.

The secular bull market continues to charge ahead in a summer rally driven by robust economic growth, consumer resilience, and transformative technologies such as Artificial Intelligence (AI), Blockchain, Web 3.0, Virtual Reality (VR), and Robotics. Strong corporate earnings, rising profit margins, healthy returns on equity, along with nearly $7.1 trillion in money funds allow for further gains. Our year-end target for the S&P 500 is 7000 with 7200 being reached next year. Our secular bull market target sees the S&P 500 reaching 12,000–13,000 by 2029–2030. We believe that any seasonal weakness can provide investors with opportunities to enter into positions  at more attractive levels. 

What should an investor do in this economic era of uninspired, but not terrible, data? We believe you stay the course and stay long equities for 2025. Yes, we are fully expecting a fall swoon as September is often ghastly to the market but we believe the data could continue to improve. Markets care much less about current conditions, and care much more about the trend – are things getting better or getting worse?

EDUCATION PLANNING: A 529 account can be a useful addition to a financial plan for a child’s education. Recent legislative changes have provided clients more options for 529 accounts, as distributions from 529 accounts can soon be used to give the beneficiaries a retirement boost.

Effective in 2024, you have the ability to convert tax- and penalty-free from a 529 to a Roth IRA owned by the 529 beneficiary. This rollover is subject to annual Roth IRA contribution limits and a lifetime limit of $35,000.

Back to School for our 6 Degrees Family!

We wish your children and grandchildren a great school year!

Our team had the opportunity to volunteer at Back to School Bonanza. We are so grateful to be a part of such generous community.