There is more good news for retirement accounts this year. The IRS has released the updated contribution limits for 2026, and several of the adjustments will allow investors to save even more. As you can see below, these new limits continue the trend of expanding opportunities for retirement savers.

Last year, we highlighted the new SECURE 2.0 rule introducing a higher catch-up contribution for employees aged 60, 61, 62 and 63. For 2026, that enhanced “super” catch-up window remains in place, giving late-career savers another year to take advantage of the increased limit.

How do these changes impact your savings in the upcoming year? Are there any changes you should be making? Schedule a time to meet one-on-one with our team. We look forward to working with you in 2026!

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Benjamin Franklin’s quote applies to many choices we make, including personal finances. If we don’t take his message to heart, then a lack of planning can be costly.

There are traditionally two paths one will take when preparing for a large expense. They will either build a plan ahead of time to achieve a financial goal, or the more common path, wait until the expense arises and deal with it then. It’s important to consider the hidden cost of financing a large future purchase instead of planning for it in advance.

NOT PLANNING AHEAD MAY COST YOU MORE THAN YOU THINK

Let’s take the example of a future expense of $25,000 for any situation*:

Fill in the blank: year of college for a child, down payment for a home, wedding, car purchase, or a dream vacation.

How do you pay for the $25,000 future expense?

(A) Make a monthly investment over the next 10 years, or
(B) Borrow the $25,000 and make monthly payments to pay off the debt over the next 10 years.

Note: This is for illustrative purposes only. Investment returns, interest rates, and loan periods will vary.

SO WHAT ARE YOU PLANNING FOR TOMORROW?

Building a savings plan and starting early provides around 27% in savings over 10 years, with a total out-of-pocket cost of approximately $18,240 (assuming a 6% annual investment return).

Conversely, the cost of convenience by borrowing adds more than 33% to the overall cost, raising the total to about $33,360 (assuming a 6% interest rate).

Unfortunately, much consumer debt is financed on credit cards, where the average APR in 2025 is over 21% according to the Federal Reserve. At that rate, the total cost of financing a one-time $25,000 purchase could more than double over 10 years, pushing the total cost well past $50,000.

This illustration provides a two-sided lesson. As shown above, building a financial plan can save thousands of dollars over time. On the other hand, procrastinating and choosing to borrow rather than plan can just as easily cost thousands.

Either way, the takeaway is clear: it’s important to understand the real cost of any financial decision in order to make a well-informed choice for your future.

Our team at Human Investing is available if you have questions or would like help building a financial plan that fits your goals.

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Disclosure: This material is for informational and educational purposes only and should not be considered personalized tax, legal, or investment advice. You should consult your own qualified tax, legal, and financial professionals before making any decisions based on this information. The examples provided are hypothetical and are intended to illustrate general financial concepts such as saving versus borrowing; they do not represent any specific investment performance or loan terms. Interest rates, returns, and inflation assumptions are subject to change and may vary based on individual circumstances. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Advisory services are offered through Human Investing, LLC, an SEC-registered investment adviser.

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If you’re 50 or older and use catch-up contributions to bulk up your retirement savings, or you help run a plan that offers them, there’s a rule change that should be on your radar.

In mid-September, the IRS and Treasury finalized how a piece of the SECURE 2.0 Act will work. The short version: starting in 2026, certain higher-earning workers will only be able to make their catch-up contributions as Roth (after-tax) dollars.

Getting ahead of the change now will make 2026 a lot less painful.

First, What Are Catch-Up Contributions and Why Do THey Matter?

Once you hit age 50, you can put extra money into your 401(k), 403(b), or similar plan, above the standard IRS limit. That’s been true for years.

Here is the breakdown for 2026:

• Under age 50: $24,500

• Ages 50–59 and 64+: $32,500 (includes a $8,000 catch-up)

• Ages 60–63: $35,750 (includes an $11,250 “super” catch-up)

SECURE 2.0 added another layer on top: starting in 2025, workers ages 60–63 get access to “super” catch-up contributions, up to 150% of the regular catch-up limit (or 110% for SIMPLE plans).

It is possible that catch-up contribution may be required to be made as a Roth contribution, especially if your income exceeds certain thresholds.

For employees, the downside is giving up the upfront tax break on catch-up contributions. The upside? Tax-free withdrawals later.

For employers, the stakes are higher: if the plan isn’t set up to handle Roth catch-ups, some employees could lose access to them entirely.

Diving Into the New Rule: Roth Required for Some

Here’s the key change:

If you make more than $150,000 in FICA wages in 2026 (adjusted annually), all your catch-up dollars will have to go in as Roth contributions, after tax dollars, starting January 1, 2026.

This means if you fall into the higher-income category, your Roth catch-up will be automatically applied to your eligible contributions once you hit age 50.

A few quick clarifications:

• This does not apply to SIMPLE IRAs or SEP plans.

• Wages are measured using Box 3 on your W-2.

• If your plan does not include a Roth deferral option, catch-up contributions won’t be permitted in your plan regardless of income.

Congress delayed this rule once (from 2024 to 2026) to give employers time to adjust. That grace period is ending soon.

Two Types of Catch-Up Contributions

Depending on your age and plan setup, catch-ups may fall into these buckets:

1. Standard age-50 catch-ups
   These are the usual “extra” contributions, and the ones subject to the Roth rule if you’re over the wage limit.

2. “Super” catch-ups at ages 60–63
   Optional, but attractive for late-career savers (and yes, Roth rule applies to these as well).

If You Sponsor a Plan, Start Here

A survey from the Plan Sponsor Council of America says only 5% of plan sponsors feel fully ready.

Payroll providers will bear the heavy lifting here. Plan sponsors should lean on their payroll providers and ensure that there is clarity on how catch-up contributions are being made.

To facilitate administration of this new rule and employee experience, we suggest permitting “Deemed” Roth contributions. This means that there is an assumption that catch-up contributions will be considered Roth, even if an employee has elected pre-tax deferrals for their base contribution. Deemed Roth feature is typically setup as a function of payroll and must be included in your governing plan documents.

To avoid last-minute scrambling, here’s what employers should be doing in 2025 and into 2026:

• Check whether your plan even offer Roth - this is a great deferral option for all employees, regardless of income.

• Talk to payroll and your recordkeeper about tracking who’s subject to the rule.

• Permit “Deemed” Roth contributions and amend plan document(s).  

• Review catch-up provisions for ages 60–63 and for 403(b) service-based rules.

• Create employee communications, especially for those over the wage limit.

• Work with your Recordkeeper or TPA on plan amendments.

What’s the Timeline?

Here’s how the rollout shakes out:

• Now — Setup a call with payroll and recordkeeper.

• December 31, 2025 — New catch-up limits kick in.

• January 1, 2026 — Roth requirement becomes real.

• Late 2026 — Formal plan amendments are due.

We’re here to help

For the workers affected, the downside is giving up the upfront tax break on catch-up contributions. The upside? Tax-free withdrawals later.

For employers, the stakes are higher: if the plan isn’t set up to handle Roth catch-ups, some employees could lose access to them entirely.

Bottom line: Roth is about to move from optional to unavoidable for a lot of savers. Getting ahead of the change now will make 2026 less stressful. If you or someone you know may need assistance, let’s meet!

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Disclosure: This material is for informational and educational purposes only and should not be considered personalized tax, legal, or investment advice. You should consult your own qualified tax, legal, and financial professionals before making any decisions based on this information. Tax laws and regulations, including those discussed here, may change and can vary based on individual circumstances. The examples and explanations provided are for general understanding and should not be relied upon to predict or guarantee outcomes. Investing and retirement planning involve risk, including possible loss of principal. Past performance does not guarantee future results. Advisory services are offered through Human Investing, LLC, an SEC-registered investment adviser.

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Knowing where to allocate your next dollar can be confusing for those looking to save and invest. There are many choices available. Just like building a house, it’s important to start with a strong financial foundation. Focus on the basics like budgeting and an emergency fund as you begin building your wealth.

Let’s break down each layer and explore why it matters.

Step 1. Emergency Reserve: Your Financial Safety Net

Before investing, it’s crucial to build an emergency fund as your safety net. Life happens: cars break down, kids get sick, jobs change. Without a cushion, these unexpected events can derail long-term financial goals.

We recommend saving three to six months’ worth of living expenses. You might save closer to three months’ worth of expenses if your household is dually employed with strong job stability, or closer to six months if you are a single filer, self-employed, or have dependents.

Parking these dollars in a money market or high-yield savings account can provide a modicum of interest while maintaining liquidity, so you can easily withdraw these funds, not if an emergency happens, but when.

 Step 2. Maximize Employer Match: Don’t Leave Free Money Behind

If your employer offers a match on retirement contributions, take full advantage. For example, if you elect 3% of your pay to go towards your retirement plan, your employer will contribute an additional 3% to your account that you wouldn’t receive otherwise.

Ensure you are contributing the minimum to receive the full match; otherwise, you’re leaving free money on the table.

Step 3. Pay Off High-Interest Debt (Interest Over 7%)

High-interest debt, especially credit cards, can erode wealth faster than investments can grow. The average credit card interest rate in 2025 is over 21% , making it a top priority to eliminate.

Paying off high-interest debt quickly is not only an immediate return on investment but will also provide additional cash flow and wiggle room in your budget.

This assumes that a diversified portfolio may earn 7.0% over the long term. Actual returns may be higher or lower. Generally, consider making additional payments on loans with a higher interest rate than your long-term expected investment return.

Step 4. Health Savings Account (HSA): Triple Tax Advantage

A Health Savings Account (HSA) is one of the most tax-advantaged saving tools. You can put money in tax-free, which can then use it tax-free for qualified medical expenses. Consider investing your HSA funds once you’ve built up a sufficient cash buffer for near-term medical expenses. This allows you to take full advantage of the triple tax benefit!

The 2025 annual HSA contribution limit (for all contributions made by both you and your employer) are $4,300 for individuals and $8,550 for family coverage. Additionally, individuals age 55 or older can contribute an extra $1,000.

Bonus: After age 65, funds can be used for non-medical expenses without penalty (though taxed as income), making HSAs a powerful retirement supplement.

A high-deductible health plan is needed to contribute to an HSA. This investment vehicle may not be the best choice for you if you have frequent medical expenses. Those taking Social Security benefits age 65 or older and those who are on Medicare are ineligible. Tax penalties apply for non-qualified distributions prior to age 65; consult IRA Publication 502 or your tax professional.

Step 5. Additional Defined Contribution Savings

Once you’ve maxed your employer match in your 401(k), consider contributing beyond the match percentage, as your cash flow and budget will allow.

Compound growth and tax deferral make these accounts ideal for long-term wealth building. A general rule of thumb is to aim for 15% of your income going toward retirement. The earlier you start, the more compound interest works in your favor.

In 2025, employees can contribute up to $23,500 to a 401(k), with an additional $7,500 catch-up for those 50 and older.

Roth 401(k) Option: Many plans offer a Roth 401(k) feature, allowing you to contribute after-tax dollars. While you don’t get a tax deduction up front, qualified withdrawals in retirement are tax-free. This can be a powerful strategy for younger savers or those expecting higher tax rates in retirement.

Step 6. Pay Down Lower-Interest Debt (Under 7%)

While not as urgent as high-interest debt, paying off loans under 7% still improves cash flow and reduces financial stress.

Step 7. IRA Contributions: Flexibility and Tax Benefits

You’ve paid off your debts, have a solid emergency fund, and are maxing out your 401(k) and HSA accounts. What’s next?

Traditional and Roth IRAs offer additional retirement savings options. In 2025, the contribution limit is $7,000, or $8,000 for those 50+. Income limits for deductibility and Roth eligibility have increased, making these accounts more accessible.

Roth IRAs allow for after-tax contributions with tax-free growth and withdrawals in retirement.

Income limits may apply for IRAs. If ineligible for these, consider a non-deductible IRA or an after-tax 401(k) contribution. Individual situations will vary; consult your tax professional.

Step 8. Taxable Accounts: For Flexibility and Liquidity

Finally, once all tax-advantaged accounts are maximized, taxable investment accounts provide flexibility. They’re ideal for goals that fall outside retirement, like early retirement, home purchases, or estate planning.

Our favorite part: there are no annual contribution limits and no penalties for withdrawal.

Final Thoughts

Saving wisely for your future doesn’t have to be complicated. By following a structured approach, you can make confident decisions about where to allocate your money, step by step, dollar by dollar.

Want help applying this to your own financial picture? Let’s talk!

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Disclosure:This content is for informational and educational purposes only and is not intended as investment, legal, or tax advice. The strategies and steps outlined—such as building an emergency fund, contributing to employer-sponsored plans, paying down debt, or using HSAs, IRAs, and taxable accounts—are general in nature and may not be appropriate for every individual. You should consult a qualified financial or tax professional before making decisions based on your personal circumstances. There is no guarantee that following any financial strategy will achieve your goals or protect against loss. References to interest rates, contribution limits, or tax rules reflect information available at the time of publication and may change. Past performance is not indicative of future results. Advisory services are offered through Human Investing, an SEC-registered investment adviser.

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How many retirement accounts do you have?

The typical baby boomer will have an average of 13 jobs over their working career, according to the Bureau of Labor Statistics. While job moves are practically unavoidable, there are both internal and external challenges to navigate. A common mistake that many investors make is abandoning their old company’s retirement plan with the hopes of figuring it out later. If this is you, you’re not alone! According to USA Today, Americans have more than $1.65 trillion worth of lost or forgotten 401(k) accounts.

Consolidate them into one account

Working with a trusted partner like Human Investing to consolidate your old 401k’s (or 403b) into a single IRA is the best choice. This article outlines the three key benefits of rolling over your old employer retirement plans into an IRA. Consolidating accounts can help you track your hard-earned dollars and simplify your financial household. One account. One Statement. One password. One clear Retirement goal.

Take advantage of the universe of investment options with an IRA

The investment options in a 401k can be limited. According to Vanguard, the average 401k plan has 27.6 investment options for employees to choose from. The graphic below demonstrates how your investment plan may get out of hand quickly as your list of ex-employers grows. Consolidating your 401k into an IRA can give you access to a greater universe of investment options tailored to your needs.

Build a retirement income plan

Saving money in a retirement account is not a means to an end. There is a purpose to it, and for most the goal is retirement. You put money into a retirement account so that you may withdraw it someday when you are no longer receiving a paycheck. Our Human Investing advisors are specialists when it comes to building a retirement income plan.

 When converting hard-earned savings into retirement income, an IRA is superior to a 401k. An IRA affords a retiree the ability to do two crucial things:

1) Increase the tax-efficiency of their withdrawals; and

2) Strategize how they will withdraw money to not violate the first rule of investing: buy low, sell high.

Which account type is right for you as you plan for retirement? For most, an IRA makes sense. An IRA can provide consolidation, more investment options, and efficiencies in retirement.

Start your rollover

Deciphering what to do with your old retirement account can be intimidating and we want to be here to help. If you worked for a publicly traded company and owned shares in your 401k, there are other rollover rules that apply. If you have more questions or would like to discuss your retirement plan with an advisor, schedule an appointment below.

Sources:

[1] U.S. Bureau of Labor Statistics. "Number of Jobs, Labor Market Experience, and Earnings Growth: Results From a National Longitudinal Survey." Accessed August, 2025.

[2] USA Today, July 30, 2025

[3] The Vanguard Group, How America Saves Report - 2025.

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Disclosure: This material is for informational and educational purposes only and is not intended as personalized tax, legal, or investment advice. You should consult your own tax, legal, and financial professionals before making any decisions based on the information provided. Tax laws and regulations are subject to change, and their application can vary based on your individual circumstances. While the strategies discussed may be appropriate for some individuals, there is no guarantee that any specific tax outcome or investment result will be achieved. Any examples, scenarios, or case studies are hypothetical and for illustrative purposes only. They do not represent actual client situations and should not be relied upon to predict or project results. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. All investments and tax strategies carry certain risks and may not be suitable for all investors. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

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If you’re receiving a settlement from a life-altering event, such as personal injury, property damage, or an employment dispute, know this: you're not alone, and it is normal to ask, “What now?”

This may be the most significant sum of money you’ve ever received. But it’s more than just a windfall. It’s a crossroad. What you do next can shape your financial peace for decades to come.

At our firm, we’ve guided many families through life transitions like this one. Here are five smart, grounded steps to help you avoid common pitfalls and build a future marked by clarity, confidence, and purpose.

Step 1: Pause and Protect

Your first move? Nothing, for now. It’s normal to want to take immediate action. But when it comes to significant financial decisions, taking a beat is often the wisest choice.

What to do:

• Park the funds in a safe, highly liquid account such as FDIC-insured high-yield savings or U.S. Treasury bills.

• Avoid large purchases, gifts, or new ventures for at least 90 days.

• Take time to think, grieve, and breathe.

What to watch out for:

• FDIC insurance has limits. Coverage is capped at $250,000 per depositor, per institution. Large dollar settlements need to be spread wisely or placed in programs with extended coverage.

• Be cautious of unsolicited “investment opportunities.” Scammers often target settlement recipients.

Smart alternative:

Beyond FDIC-insured accounts, another safe option is short-term U.S. Treasury securities. They are backed by the U.S. government, give you steady access to your money, and often provide competitive yields. The interest is also tax-free at the state and local level, which makes them a reliable choice for keeping your settlement secure.

Our take: The best first step is often no step at all. Create safety and space before making decisions.

Step 2: Build a Trusted Team

You don’t have to figure this out alone and you shouldn’t. A coordinated team can help you avoid costly mistakes and make confident, informed decisions.

When you are managing a life-changing settlement, success is not only about making smart choices. It is about making coordinated choices. The best outcomes happen when professionals work together to support your full financial picture.

Who should be at your table:

• A fiduciary financial advisor to help design your long-term strategy, coordinate decisions, and ensure all the moving parts align with your goals.

• A CPA to clarify your tax liability and help reduce it when possible.

• An estate attorney to protect your assets and plan your legacy.

Why the fiduciary distinction matters:
Unlike brokers or sales-driven advisors, fiduciary financial advisors are legally and ethically obligated to put your interests first. They do not earn commissions from products. They earn trust by giving objective guidance based solely on what is best for you.

What to watch out for:

• Conflicted advice: If someone is recommending products they are also paid to sell, they are not held to a fiduciary standard.

• Lack of collaboration: A team that does not work together can create missed opportunities, inconsistent strategies, or unnecessary tax costs.

• Advice in isolation: Each professional plays a role, but without coordination important details can easily be overlooked.

Our take: A fiduciary advisor serves as your financial quarterback, bringing leadership, clarity, and coordination across your team. At our firm, we embrace that role with care and seriousness. We sit on the same side of the table as you, and every recommendation is grounded in what is best for you now and in the years ahead.

Step 3: Understand the Tax Picture

The more you keep, the more you can use for yourself, your family, and the legacy you want to build.

Not every dollar from a settlement is treated the same under the tax code. Some portions may be completely tax-free, while others could create a significant tax bill if not managed carefully. Knowing the rules up front helps you make smarter choices, avoid surprises, and keep more of your money working toward what matters most.

What to know:

• Compensation for property loss or personal injury is often not taxable

• Payments for emotional distress, lost income, or punitive damages are typically taxable

• Any investment gains after receiving the funds will be taxed

What to watch out for:

• Misclassifying different portions of the settlement, leading to avoidable taxes or penalties

• Underestimating your future tax bill, especially if you invest and grow the fund.

• Overlooking tax-smart giving strategies, such as donor-advised funds, that can lower taxes while increasing your impact

Our take:

A proactive tax strategy is not just about reducing what you owe. It is about maximizing what you keep so you can enjoy your life, provide for future generations, and give generously to the causes you care about. As fiduciary advisors, we work closely with your CPA or bring in trusted tax partners to help you make confident decisions that reflect your values and protect your wealth.

Step 4: Create a Life-Driven Financial Plan

The goal is not just to manage your money. The goal is to use it to create a life that feels meaningful, secure, and aligned with what matters most.

This settlement creates a powerful opportunity to pause and ask deeper questions:

• What does peace of mind actually look like for me?

• Where do I want to live and how do I want to live?

• How can I provide for loved ones or give generously without putting my own future at risk?

The right financial plan turns those answers into action.

What your plan should include:

• A strong emergency reserve for flexibility and resilience

• A clear approach to debt, housing, and insurance coverage

• Strategies for healthcare and long-term care needs as you age

• Defined goals for retirement income, giving, and legacy planning

What to watch out for:

• Lifestyle creep. Small upgrades can quickly become big ones, and without intention your wealth can disappear faster than you realize.

• Unspoken family expectations. Money can create tension if roles and boundaries are not clear.

• Analysis paralysis. Without a plan, it is easy to get stuck, make impulsive choices, or avoid decisions altogether.

Our take:
A thoughtful plan gives your dollars direction so they serve your values, your goals, and your future. We help clients design plans that are flexible, grounded in what matters most, and built to bring clarity and confidence to every decision.

Step 5: Invest With Intention

Once your immediate needs are secure and your goals are defined, it’s time to grow your wealth thoughtfully.

A settlement is more than a chance to invest. It is an opportunity to shape the next chapter of your life and legacy. With the right strategy, your wealth can support your lifestyle, create opportunities for the next generation, and give you the ability to be generous along the way.

What to do:

• Diversify across stocks, bonds, and other investments

• Match your strategy to your timeline, risk tolerance, and income needs

• Use tax-smart investment accounts like Roth IRAs, brokerage accounts, or 529 plans

• Stay disciplined and consistent rather than reacting to fear or headlines

What to watch out for:

• High-fee products or promises that sound too good to be true

• Concentrating too much wealth in real estate or a single business

• Making emotional investment choices (especially during market volatility)

Our take:

Investing done well is steady, strategic, and deeply personal. It is not always about chasing the highest return. It is about creating peace of mind and building a life that lasts. As fiduciary advisors, we help clients invest with intention so their money grows in line with their values, their freedom, and the legacy they want to leave.

You Have a Rare Opportunity

A settlement can mark a new beginning. With the right plan and trusted guidance, it can bring peace, purpose, and even lasting impact.

Our firm helps individuals and families navigate these transitions, whether your goal is to protect, grow, or give with intention.

If you or someone you love is receiving a settlement, we invite you to a complimentary 60-minute strategy session. Together we can design a plan that reflects your goals, tax picture, and values.

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Disclosure: This material is provided for informational and educational purposes only and should not be construed as tax, legal, or investment advice. Examples are hypothetical and for illustration purposes only; actual results will vary. Tax laws are subject to change, and their application may vary depending on individual circumstances. Clients should consult their own tax and legal advisors before making any charitable giving decisions. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

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New Tax Breaks and Rules for Charitable Donations

People give because they care. That’s the heart of generosity. Yet the rhythm of giving is often set by the tax code. It can make giving feel natural and rewarding, or it can add friction that makes it harder.

When the One Big Beautiful Bill Act was signed on July 4, 2025, the headlines focused on spending and tax rates. Less noticed were the provisions that quietly change how Americans give.

Starting in 2026, millions of households, high-income donors, and businesses will face new incentives and new hurdles when they decide how much to give.

The details are technical, but the story is simple: with the right strategy, you can give more, save more, and make sure your money tells the story you want it to.

A Universal Deduction for a Majority of Taxpayers

For years, most families gave to charity without any tax benefit. Unless you itemized, your generosity was invisible to the IRS. You gave because it mattered, not because it saved you money.

That changes in 2026. Under the new law, taxpayers who claim the standard deduction will also be able to deduct charitable contributions. This is no longer a benefit limited to those who itemize. According to the Tax Foundation, a nonpartisan research group, roughly 85% of taxpayers take the standard deduction, making this one of the broadest incentives for charitable giving.

Here is how it works: taxpayers who claim the standard deduction can now also deduct up to $1,000 in cash contributions each year, or $2,000 for married couples. The gifts must be made in cash, not appreciated assets, and they must go directly to eligible charities.

Why it matters: After 2025, everyday giving like your monthly tithe, your holiday donation, or your support of a local nonprofit will show up on your tax return. The small checks you were already writing now carry extra weight.

What this means for you: For illustrative purposes, take a family who does not itemize and donate $100 each month to charity. That is $1,200 over the year. Beginning in 2026, that full amount can be deducted from their taxable income, up to the $2,000 limit for married couples, $1,000 single filers. A family in the 22% bracket giving $1,200 saves about $264 in taxes.

Note: The figures here represent Federal tax savings. For Oregonians, there may be an extra layer of benefit. If the state aligns with the new Federal rules, that same $1,200 donation could also reduce state taxes by up to 10%, or $120. States are currently evaluating whether to adopt these provisions, so this piece is still unfolding.

The catch is that families used to the standard deduction often don’t track their giving. It never mattered before. Starting in 2026, it will. The habit of generosity now comes with a second habit: record keeping.

‘Bunching’ and a New Hurdle for Itemizers

Beginning in 2026, all itemizers will also face a new rule. Charitable contributions will only be deductible above 0.5% of your adjusted gross income (AGI).

Here is how it works: Suppose your AGI is $200,000 and you itemize deductions. If you give $10,000 to charity, the first $1,000 ($200,000 x 0.5% = $1,000) does not count. Only $9,000 reduces your taxable income. Any 0.5% disallowed amount will be suspended and carried forward for up to 5 years, to hopefully be deducted in a future year when eligible.

Why it matters: On paper, half a percent sounds small. But in practice, this will likely shift how people give. Smaller, steady donations may no longer deliver the same benefit, nudging families to think more strategically about timing and structure.

What this means for you: It is not the size of your gift that changes, but the rhythm. Two larger checks can sometimes be more effective than four smaller ones. Instead of giving the same amount every year, consider making larger gifts less often, a strategy often called “bunching.”

For example, donating $20,000 every two years rather than $10,000 annually. In the larger year, your gift clears the new floor and provides a stronger deduction. In the smaller year, you take the standard deduction and still come out ahead. A $20,000 gift, above the 0.5% AGI floor, in the bunching year may yield roughly $6,400 in tax savings (assuming 32% bracket).

The increased State & Local Tax (SALT) deduction in 2026 can make this even more attractive. Take a household with $25,000 in SALT deductions and $20,000 in charitable giving every other year. That totals $45,000 of deductions, easily clearing the standard deduction and ensuring the charitable contribution counts well above the 0.5% threshold. In the off years, they simply return to the standard deduction.

Donor-advised funds (DAFs) make this easier. You can contribute a larger amount in one year, capture the deduction, and then spread your giving out over time so your favorite causes don’t feel the gap. Many DAFs even allow you to invest the balance, which means your dollars can grow before they’re granted. In that sense, a DAF turns one act of generosity today into even more generosity tomorrow. 

A 37% Deduction, Now 35%

If you itemize deductions and are in the top tax bracket, another change arrives in 2026. The maximum tax benefit you can receive from charitable deductions is limited to the equivalent of a 35% tax rate.

Here is how it works: Charitable gifts must first clear the new 0.5% of AGI floor. On top of that, the benefit of any eligible gifts above that floor will be limited to 35% rather than today’s 37%.

For example, with an AGI of $1,000,000 and a gift of $100,000, the first $5,000 provides no tax benefit today because of the 0.5% floor. The remaining $95,000 is deductible, producing a maximum tax savings of $33,250 in 2026. Under the current rates, a $95,000 gift would save $35,150.

The 0.5% floor can carry forward, but the difference between the 35% and 37% deduction rates does not.

Why it matters: For wealthy donors, the change is modest in dollars but meaningful in psychology. Even small shifts in after-tax cost can alter behavior at the margins, which is why thinking ahead about timing and tools matters more than ever.

What this means for you: For wealthy donors, every dollar still counts, but in 2026, each one counts a little less. It may make sense to accelerate some giving into 2025 before the new rules take effect.

C-Corp Business Owners and the New 1% Floor

Starting in 2026, C Corporations (C-Corp) will also face a new threshold. Charitable giving will only be deductible once it exceeds 1% of taxable income.

Here is how it works: If your company is a C-Corp and earns $1,000,000 and donates $8,000 (0.8% of income), you’ll no longer get a tax deduction for that gift. But if you give $15,000, you’ve crossed the 1% threshold, and the portion above $10,000 (the first 1%) is deductible.

The long-standing 10% cap on corporate deductions still stands, along with the five-year carryforward. The key difference is that smaller contributions that once carried a tax benefit may no longer qualify.

Why it matters: This rule discourages token giving and pushes companies toward more intentional generosity. Businesses that want their contributions to count, for both taxes and impact, will need to plan gifts as part of a larger strategy rather than as one-off gestures.

What this means for you: For C-Corp business owners, this change means smaller charitable gifts may no longer have a tax benefit. To maximize impact, you may choose to either increase your giving to clear the 1% threshold or bunch donations in certain years to secure the deduction.

A Special Planning Window in 2025

Before the new rules take effect, 2025 offers a unique chance to be more strategic with your generosity. The changes do not begin until 2026, which means as an itemizer you can still give under today’s more favorable framework: there is no 0.5% AGI floor for individuals, no 1% floor for corporations, and top-bracket donors can still receive up to a 37% deduction.

Why it matters: 2025 is one of the most favorable years in recent memory for charitable giving for itemizers. Acting before the rules change can mean more tax savings and more dollars flowing to the causes you care about.

What this means for you:

• A family giving $20,000 in 2025 can deduct the full amount. In 2026, with a $200,000 AGI, only $19,000 would count toward a deduction.

• A high-income donor with an AGI of $1,000,000 giving $100,000 in 2025 could reduce their taxable income by up to $37,000. The same gift in 2026 would shrink to $33,250 in savings, raising the after-tax cost of generosity.

• C Corporations who typically make smaller annual gifts may want to accelerate donations into 2025 before the 1% corporate threshold applies.

For those who want to keep supporting their favorite charities steadily, donor-advised funds can be especially effective. By contributing a larger amount in 2025, your secure today’s tax benefits while giving yourself flexibility to distribute grants to nonprofits over time.

Bringing It All Together

The new law will change how taxpayers experience charitable giving. Some will gain new opportunities, while others will need to be more intentional to keep their giving tax efficient.

1. Individuals & Families who do not itemize will now enjoy a tax break for giving.

2. Itemizers will need to plan gifts to rise above the new floor.

3. High-income donors will face a slightly smaller size tax benefit.

4. C Corporations will need to give more intentionally to secure deductions.

5. 2025 offers a last-chance window to maximize giving before the new rules take hold.

Why it matters: These rules will shape how generosity shows up, but not why we give. With planning, your giving can still tell the story of what matters most to you. The new law will not change the reasons we give, but it will change the timing, structure, and strategy that make generosity as efficient as possible.

At Human Investing, we see our job as more than managing investments. We help align your values with your financial life so that every dollar reflects what matters most. That way, your giving becomes not only a tax-smart decision, but a lasting legacy.

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Tax Foundation. (2025). FAQ: The One Big Beautiful Bill Act tax changes. Retrieved from https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/ Tax Foundation

Government Publishing Office. (2025). Public Law 119-21: One Big Beautiful Bill Act. Retrieved from https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf

Kitces, M. (2025, July). Breaking down the “One Big Beautiful Bill Act” (OBBBA): Tax planning, SALT cap, senior deduction, QBI deduction, Tax Cuts and Jobs Act (TCJA), AMT, “Trump Accounts”. Nerd’s Eye View. Retrieved from https://www.kitces.com/blog/obbba-one-big-beautiful-bill-act-tax-planning-salt-cap-senior-deduction-qbi-deduction-tax-cut-and-jobs-act-tcja-amt-trump-accounts/

Disclosure: This material is provided for informational and educational purposes only and should not be construed as tax, legal, or investment advice. Examples are hypothetical and for illustration purposes only; actual results will vary. Tax laws are subject to change, and their application may vary depending on individual circumstances. Clients should consult their own tax and legal advisors before making any charitable giving decisions. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

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Rebalancing is the idea that you are bringing your investment portfolio back to its targets. For example, if you invest your account as 60% stocks and 40% bonds (60/40) and never trade, in ten years your account will not be 60% stocks. Because stocks have historically tended to perform better than bonds over most ten-year periods, you will likely have a higher weight of stocks than bonds after ten years. If you don’t rebalance, your portfolio may not align with your intended allocation, which could change the risk and return characteristics.

WHY is it NECESSARY

Deciding how much to invest in various asset classes is a critical determinant of long-term performance[1]. Since asset allocation matters, maintaining it through rebalancing matters. As we’ve written previously, over time stocks typically outperform bonds[2]. There are also certainly times bonds outperform stocks, usually in recessions. The logic of rebalancing boosting returns is simple: You are selling what has relatively outperformed and buying what has underperformed (buy low, sell high). Especially in today’s world, where most ETFs are commission free, making the transaction costs of rebalancing minimal. Taxable investors should consider the tax implications of rebalancing, and also consider the change in risk and return of not rebalancing.

TWO APPROACHES

In financial theory, there are two main approaches to rebalancing: calendar-based and tolerance-based.

Calendar-based rebalancing ensures the long-term risk-return profile of your portfolio is consistent. This gets implemented on a set frequency (monthly, quarterly, annually) and ensures a consistent cadence.

Tolerance-based rebalancing takes advantage of buy low, sell high opportunities as they arise. This assumes you rebalance only if you hit certain thresholds of one asset class over or under performing. For example, say your target is 60/40, and you set a 3% absolute tolerance; if the equities drift to 64%, that prompts a rebalance back to 60/40. The alternative is relative tolerances, the same percentage of the target for each piece of the model. So, if a 60/40 portfolio had a 20% relative tolerance, the equities would be rebalanced if off by a relative 20% (20% of 60% target = 12% tolerance) and the bonds would have a 4% tolerance for rebalancing. There has been research suggesting tolerance-based rebalancing is more beneficial for long-term performance[3].

OUR PROCESS

At Human Investing, we combine both calendar-based and tolerance-based rebalancing to give our clients the best of both worlds. Tolerance rebalancing allows us to take advantage of market dips and rallies as they happen, while our annual reviews ensure no portfolio drifts too far off course. This approach keeps every account aligned with the level of risk and return our clients expect and provides discipline, consistency, and confidence over the long run.

While rebalancing can sometimes feel counter intuitive, like selling bonds and buying stocks in March 2020, it is a helpful practice for any investor. It both keeps your portfolio consistent in the long run, and may improve risk-adjusted returns over time.

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[1] Ibbotson, R. G., & Kaplan, P. D. (2000). Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance? Financial Analysts Journal, 56(1), 26–33. https://doi.org/10.2469/faj.v56.n1.2327

[2] https://www.humaninvesting.com/450-journal/equity-risk-premium

[3] Daryanani, Gobind (2008). Opportunistic Rebalancing: A New Paradigm for Wealth Managers. FPA Journal. January 2008.

Disclosure: This material is provided for informational and educational purposes only. It should not be construed as investment, legal, or tax advice, nor does it constitute a recommendation or solicitation to buy or sell any security. Investors should consult with a qualified financial professional before making any investment decisions. Rebalancing and asset allocation strategies do not ensure a profit or protect against loss in declining markets. There is no guarantee that any investment strategy will achieve its objectives. Any references to historical performance, academic studies, or research are based on past data and should not be considered indicative of future results. Past performance is not a guarantee of future outcomes. Advisory services offered through Human Investing, an SEC-registered investment adviser.

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Many small businesses are behind.

There are several retirement solutions that can help you secure your future and that of your employees, but the decision-making process can be challenging.

A survey of nearly 2,000 small business owners in 2017 found that over a third (34%) don't have a retirement plan. The main reason for this cited (by 37% of those respondents) was that they could not generate enough revenue to save. Another 18% of the business owners without retirement savings are looking at selling the businesses as a retirement plan.

Many small business owners avoid or are unaware of the crucial elements of planning for their futures. Here are a few questions to ask yourself before deciding on a retirement plan:

Do you have employees or expect to in the future?

Is it important that employees can contribute to a retirement plan?

Is your priority higher contributions or ease of administration?

Would you like plan contributions to be deductible as a business expense?

What retirement plan options do you have?

With help from Vanguard, we put together a one-sheeter that gives details and considerations on several small business retirement plans, including Small Plan 401(k), Individual 401(k), SEP IRA, Simple IRA, Traditional IRA, and Roth IRA.

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Source: Vanguard

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Keep in mind that Oregon law requires all employers who do not offer a qualified retirement plan to facilitate OregonSaves.

As of 2025, all existing Oregon businesses should already be registered with OregonSaves or have a certified exemption. Newly formed businesses must register or certify exemption by July 31, 2025. The rules are identical to a Roth IRA, where employees contribute post-tax dollars to the plan and distribute savings tax-free.

If your business already sponsors or wants to sponsor a 401(k) or another qualified retirement plan, you are not required to participate in OregonSaves but must certify the exemption online. Exemption certificates are valid for three years from the filing date.

Employers who don’t sponsor a retirement plan or participate in OregonSaves by the appointed deadline may be penalized $100 per affected employee. The maximum fine per year is $5,000. More details can be found here: OregonSaves

Which plan is best for you?

401(k): Best retirement plan for large and established small businesses.

Safe Harbor 401(k): Best retirement plan for small businesses with less than 100 workers to avoid expensive annual compliance testing.

Solo 401(k): Best retirement plan for maximizing contributions.

SEP IRA: Best retirement plan for a sole proprietor who wants easy administration.

Simple IRA: Best retirement plan for employee participation in funding the retirement account.

Profit Sharing Plan: Best retirement plan for business owners who want more 401(k) contributions and tax benefits.

The responsibilities of owning and operating a small business can be overwhelming, but having the right retirement plan and advocates on your side can make all the difference. If you would like assistance making the best decision for your business, we invite you to schedule an appointment on the calendar below.

Source: Best Retirement Plans for Small Business

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On July 4, the One Big Beautiful Bill Act (OBBBA) became law, as a broad tax and spending package aimed at easing inflation and delivering financial relief to Americans. One of the most notable provisions for retirees is a new $6,000 “senior bonus deduction” for individuals age 65 and older.

The $6,000 bonus deduction is available to all eligible seniors, whether they take the standard deduction or choose to itemize. This is different from the age-based standard deduction, which is only allowed if you take the standard deduction.

Unlike the age-based standard deduction, this new bonus stacks on top of your existing deductions, making it one of the most generous tax breaks retirees have seen in years.

Here’s what’s changing and how to take advantage of it in your retirement plan.

How the stacked tax deduction will work

Starting for tax year 2025, taxpayers age 65 and older will be able to combine:

• A standard deduction of $15,750 (single) or $31,500 (married filing jointly), with

• An age-based addition of $2,000 (single) or $1,600 per spouse if married, and

• A new $6,000 senior bonus deduction under the OBBBA.

That means a single filer over 65 could deduct up to $23,750(previously $16,550). A married couple where both spouses are 65 or older could deduct $46,700 (previously $32,300).

The catch?

Eligibility is income-based. The full deduction is available to those with modified adjusted gross income (MAGI) up to $75,000 for single filers or $150,000 for joint filers. The deduction begins to phase out once above those thresholds and is fully phased out at $175,000 for single filers and $250,000 for joint filers.

It’s also worth noting that this senior bonus deduction is temporary. As of now, it only applies for the 2025 through 2028 tax years. It’s possible Congress could extend it further, but we likely know until 2028.

Why It Matters: Five Planning Opportunities Worth Exploring

This deduction will reduce taxes for many retirees. But its real value lies in the doors it opens for proactive planning. Here are several strategies we’re helping clients explore:

1. Rethinking Roth Conversions

Roth conversions allow you to shift money from traditional IRAs to Roth IRAs, paying tax now to enjoy tax-free withdrawals later. The bonus deduction gives retirees more room to convert IRA dollars at lower effective tax rates.

By combining the standard deduction, the age-based addition, and this new $6,000 bonus, some retirees may be able to convert dollars each year with minimal tax impact. This can lower future required minimum distributions (RMDs), reduce lifetime taxes, and create more income flexibility down the road.

There’s a sweet spot between retirement and RMDs where this approach can have the most impact.

2. Smoothing Income Over Multiple Years

Retirees often experience uneven income from asset sales, business wind-downs, or large IRA distributions. With this senior bonus deduction in place for four years, now is the time to think about spreading income more evenly across tax years, so you can qualify for this deduction while it’s available.

To make the most of the deduction each year from 2025–2028, consider ways to spread income more evenly across those years:

• Delaying large sales or distributions to avoid spiking above the income threshold in a single year.

• Accelerating income from future high-tax years into lower-income years.

• Using multi-year tax projections to identify the optimal path.

This smoothing strategy can help avoid unnecessary spikes in tax liability while making full use of the available deduction each year.

Same Income, Different Results - This chart compares two retirees, each with an average annual income of $160,000 over four years.

• Uneven Income: Income spikes in 2026 and 2028 push this retiree above the $175,000 phaseout limit, causing them to miss out on the $6,000 deduction in two years. Total lost deductions: $12,000

• Smoothed Income: By spreading income more evenly across all four years, this retiree stays under the threshold and qualifies for the full $6,000 deduction every year.  Total deductions preserved: $24,000

Strategic income timing can preserve valuable deductions, even when total income stays the same.

3. Funding the Cashflow Gap Before Claiming Social Security

Delaying Social Security often results in higher lifetime benefits. The challenge is funding those interim years. The senior bonus deduction provides a helpful cushion, allowing retirees to generate income from taxable or IRA accounts without incurring as much tax.

This deduction could help bridge the gap, making it easier to delay Social Security while keeping tax costs under control.

4. Revisiting Withdrawal Order

The traditional guidance suggests pulling from taxable accounts first, then IRAs, and Roth accounts last. But with this expanded deduction, it may be worth adjusting that sequence.

You might instead:

• Draw more from IRAs early, taking advantage of low tax rates and the temporary senior deduction. You’re essentially using the government’s tax break to convert IRA assets into spending money at a low cost. This can also reduce future IRA balances (and future taxable RMDs).

• Reserve taxable accounts for later, especially after the senior bonus deduction expires.

• Preserve Roth assets for high-income years or future tax flexibility.

Coordinating withdrawals across all account types with the new deduction in mind can improve long-term tax efficiency.

5. Aligning With Charitable Giving

If you’re charitably inclined, this is a good time to revisit your giving strategy.

Qualified Charitable Distributions (QCDs) from IRAs remain a powerful tool to give directly to charity without increasing taxable income. This also keeps your MAGI lower, which may help you stay under the $250k Joint/$175k Single threshold to qualify for the senior bonus deduction.

For others, donor-advised funds can be used to bunch gifts in one year to claim a high itemized deduction, then take advantage of the standard deduction in the next. In both cases, retirees can still benefit from the new $6,000 bonus deduction each year they qualify.

This new deduction adds flexibility, helping you give with greater intention and less tax friction.

Bottom Line

If you’re 65 or older, the next few years offer a unique window of opportunity. From 2025 through 2028, this new deduction can help lower your tax bill today and create long-term planning advantages that stretch well into the future.

It’s a reminder that good tax laws are only as valuable as the plans they inspire. Used thoughtfully, this expanded deduction can help you reduce lifetime taxes, generate tax-efficient income, and leave a stronger legacy.

The next four years offer a rare opportunity to rethink how you generate income in retirement. Whether you're considering a Roth conversion, adjusting withdrawal strategies, or supporting causes you care about, we’re here to help you build a plan that puts this deduction to work.

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Disclosure: This material is for informational and educational purposes only and is not intended as personalized tax, legal, or investment advice. You should consult your own tax, legal, and financial professionals before making any decisions based on the information provided. Tax laws and regulations are subject to change, and their application can vary based on your individual circumstances. While the strategies discussed may be appropriate for some individuals, there is no guarantee that any specific tax outcome or investment result will be achieved. Any examples, scenarios, or case studies are hypothetical and for illustrative purposes only. They do not represent actual client situations and should not be relied upon to predict or project results. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. All investments and tax strategies carry certain risks and may not be suitable for all investors. Advisory services offered through Human Investing, LLC, an SEC registered investment adviser.

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401(k) plans are powerful tools individuals can use to save and invest for retirement. I would argue that with high individual contribution limits, tax advantages, and employer contributions, a 401(k) is the best tool to save for retirement. In fact, we love 401(k)’s so much as a savings tool we wrote the book on it - Becoming a 401(k) Millionaire (actually Peter Fisher our CEO did).

While 401(k)'s have helped answer the question "How to save for retirement?", they do not answer "How to turn retirement savings into retirement income?". That’s where Individual Retirement Accounts (IRAs) enter the picture. IRAs provide flexibility in retirement that towers above 401(k) plans in three key areas: investment selection, distribution strategy (taking money out), and tax efficiency.

Building an Investment strategy for retirement

Utilizing investment options that align with your retirement goals and needs is important for a successful financial plan. According to Vanguard, the average 401k plan has 27.6 investment options for employees to choose from¹. This is a positive for 401k investors to avoid choice overload, but not always optimal for distributions. Compared to a 401(k), IRAs provide for much greater flexibility on the types of investment options available. The flexibility of investment options in an IRA can help to build a customized investment strategy to align with someone's retirement needs/goals. The shortlist of investments an IRA can hold are Individual Stocks, Mutual Funds, Exchange Traded Funds (ETFs), Bonds, US Treasuries, CDs, and Annuities.

Strategizing Distributions

Saving money in a retirement account is not a means to an end. There is a purpose to it, and for most the goal is retirement. We put money into a retirement account so that we may withdraw it someday when we are no longer receiving a paycheck. When building an efficient distribution strategy, flexibility is key.

While most 401(k) plans can administer distributions in retirement, there is often less control of how the money comes out of your account. As an example, let's assume you have two different investment options inside of your 401(k) account. One investment is geared for growth and the other for conservation (short-term needs).

With a 401(k), there is less flexibility than an IRA when choosing which investment you can choose to sell to take a cash distribution. Let’s say 50% of your 401(k) is in your growth investment and the other 50% is in your conservative. For every $1,000 you take out of your 401k, $500 will come from the sale of your Growth Investment and the other $500 from your conservative investment.

What happens when your growth investment loses 10-20% of its value due to normal market volatility? When you need your next distribution, your 401k will sell both the conservative investment as well as the growth investment (whose value has just decreased). By taking money out of a 401(k) during normal market volatility, you are violating the first rule of investing: buy low, sell high.

If 401(k) distributions are an entrée, an IRA is an a la carte. With an IRA you can choose which investment to sell to fund your distribution needs. If your growth investment has lost some of its value, you don't have to sell. You can use more of your conservative investment while you wait for the market to rebound. While in a good market where your growth investment increases in value by 10-20%, an IRA gives you the flexibility to sell high on your growth investment.

Tax efficiency

If not taken into consideration, taxes can squander someone's retirement account balance. It is important to withhold and pay the correct amount as you take withdrawals from your tax-deferred retirement account. Here is how 401(k)’s and IRA’s differ with regards to tax withholding:

For 401(k) distributions, the IRS requires a mandatory withholding of 20% for Federal Income Tax purposes. The account holder can request more to be withheld federally, but not less. The account holder can also withhold applicable state income tax. For example, say the account holder needs to withdraw $1,000 (net) from their 401(k). The plan provider will make sure there is 20% withheld for federal tax purposes. For every $1,000 needed, the account holder will withdraw $1,250 (The calculation: $1,000 ÷ 0.8 = $1,250). This mandatory withholding can be very convenient. However, what happens if taxes owed in retirement are less than 20%? The extra withholding will likely come back to you as a return once you file taxes. Unfortunately, there may be an opportunity cost. By withdrawing too much, the tax-deferred compounding growth on these dollars is lost.

An IRA provides flexibility to withhold (or not withhold) at a lesser amount to avoid selling unnecessary investments from a retirement account. If the federal tax owed is 11%, 11% can be withheld from the IRA. This saves the account holder 9% or $126 from being withheld, comparing to the 401k example above ($1000 ÷ 0.89 = $1,124). If this account holder withdrawals $1,000 each month, there is an additional $1,512 withheld each year. IRA’s provide a higher level of efficiency with the flexibility in tax withholdings.

Account Type Matters

Which account is right for you in retirement? Well, it depends. If you are you planning to retire earlier than age 59 ½, 401k plans offer some advantages (See "Rule of 55"). For most, however, an IRA makes sense. An IRA can provide superior flexibility to someone in retirement that cannot be matched by company-sponsored retirement plans like 401(k) plans. This is not a knock on 401(k)’s, rather a promotion of the benefits provided by an IRA. Consider the pros and cons of different account types to make sure they match up with your investment goals.

Sources

 1 The Vanguard Group, How America Saves Report - 2025.

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The Nike stock choice window is just around the corner. While this may seem like a straightforward decision, it’s an important time to consider all aspects of your financial plan to make an informed decision that will best suit your needs. Through reflection and thoughtful planning, we often collaborate with Nike clients to walk them through this choice which serves their life goals best.

As we have worked with individuals in various life stages, we have seen a variety of needs and preferences emerge. Different people are trying to meet a diverse set of needs for themselves and their families.

We’d like to share a few stories of people in different life stages in hopes that one (or more) will resonate with you. We believe that each person has a unique story, and needs advice tailored to their specific situation. We like to know our clients by building a trusted and genuine human connection so we can serve them as a fiduciary.  

The personas profiled below are not reflective of any particular client or person. They are generalities based on years of experience working with Nike employees.

Meet John, 31, Director at Nike:

John, 31-years-old, was recently promoted to a Director role at Nike. He has been with the company for about two years and proudly considers himself a “lifer” at Nike. He believes in Nike’s long-term potential as a company and is excited about the opportunity to participate in its future growth. John likes to branch out in his investing by purchasing cryptocurrency and considers himself a risk-taker. He has a high-risk tolerance, not just in investing, but also in his love of extreme mountain biking. He is now entering his first year of participating in the annual stock choice, and is enthusiastic to partake in the future success of a company he truly believes in.

John is married with no kids, currently has little expenses and saves most of his paycheck. He is in a strong position and mindset to take more risk with his stock choices.

Our recommendation: By choosing stock options over restricted stock units (RSUs), John has the opportunity to benefit from Nike’s long-term growth. This choice provides him an approach that aligns with both his financial philosophy and comfort as well as his commitment to Nike’s future.

Meet Rachel, 42, Senior Director at Nike:

Married with young children in public school, Rachel, 42 years old, is focused on financial stability and meeting her family’s ongoing expenses. She has been at Nike for four years and currently excels in her role as a Senior Director. She has enjoyed her time at the company but is currently considering roles elsewhere. Rachel’s uncertainty about long-term tenure influences how she approaches financial decisions—particularly those tied to equity compensation.

Rachel is a conservative investor who doesn’t want to put all her eggs in one basket. Rachel tends to avoid risk and prefers stability over speculation.

Our recommendation: RSUs are a reliable source of income for Rachel. Her risk-averse mindset and need for cash have led her to select RSUs as her Nike stock choice decision in the past and sell them upon vesting. Continuing to choose RSUs allows Rachel to obtain a steady cash flow and participate in Nike’s equity program in a way that supports her personal and professional needs best.

Meet Matt, 53, VP at Nike:

Matt, a 53-year-old Vice President at Nike, has been with the company for a decade and is approaching a key transition point in his career. With plans to retire within the next one to two years, he has been closely reviewing his overall financial plan to adequately prepare for the future. Matt is uncertain about Nike in the long-term and doesn’t want to rely on his stock awards to fund all his personal goals and dreams.

Matt is nearing eligibility age for a special retirement vesting treatment. If Matt remains with Nike at age 55 this rule would extend his window to hold onto his unvested stock options (grants held for at least one year) beyond the typical 90 days.

However, with college-age children and education expenses creeping up, he also has immediate cash needs to consider.

Our recommendation: While RSUs offer a more reliable payout, options could become a strategic tool if the stock grows before the options expire. Ultimately, Matt must strike a balance of these two stock choices that fits his needs. His decision will likely be a mix of both options and RSUs to support his family and the opportunity for long-term growth.

How the Stock Choice Can Serve You

As these examples illustrate, there's no single approach that works for everyone. These stories are here to serve as a starting point for discussion around your personalized plan.

The Nike stock choice window is more than just an annual selection. It’s an opportunity to reflect on your broader financial goals and personal values. Whether you're early in your career like John, balancing family needs like Rachel, or preparing for retirement like Matt, your decision should align with where you are now and where you want to go.

Each individual’s situation is unique, and should factor in timing, risk tolerance, behavioral, and quantitative analysis. We’re here to help you think through those variables with clarity and confidence.

If you have questions or want to dive into an analysis of your own situation, take our survey below.

TAKE OUR ANNUAL STOCK CHOICE SURVEY

Get a customized score to help you make your stock choice this year.

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Disclosures: The information provided in this communication is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities. Market conditions can change at any time, and there is no assurance that any investment strategy will be successful. Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results.

Diversification does not guarantee a profit or protect against a loss in declining markets. Asset allocation and portfolio strategies do not ensure a profit or guarantee against loss.

Scenarios discussed are hypothetical and for illustrative purposes only. They do not represent actual clients or outcomes and should not be interpreted as guarantees of future results.

The opinions expressed in this communication reflect our best judgment at the time of publication and are subject to change without notice. Any references to specific securities, asset classes, or financial strategies are for illustrative purposes only and should not be considered individualized recommendations.

Human Investing is a SEC Registered Investment Adviser. Registration as an investment adviser does not imply any level of skill or training and does not constitute an endorsement by the Commission. Please consult with your financial advisor to determine the appropriateness of any investment strategy based on your individual circumstances.

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