Investing/ Markets

“Trump Accounts” May Not Be What They Seem (Before You Open One, Read This)

December 15, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

Every time a new financial account or piece of legislation hits the news, the headlines are designed to create a sense of urgency, excitement, and opportunity. This is exactly what is happening with the new Qualified Savings Accounts (QSAs), often referred to as “Trump Accounts“.

As an investor, you might be asking: Is this the next big thing? Should I open one? Should I stop funding my existing college savings plans?

At Intelligent Investing, we believe a significant part of our value is helping you ignore the “noise and siren songs that are always blaring” in the media. The difference between successful long-term investing and unsuccessful market-oriented investing is simple: successful investing is goal-oriented and planning-driven.

This new account is a classic example of why having a financial accountability partner is vital. We believe our ability to coach and hold you accountable is one of the most under-appreciated, yet most valuable things an advisor can provide clients.

The Temptation of the New Financial Fad & Its Caveats

The new QSA is certainly a headline-grabber. It is structured somewhat like a custodial Traditional IRA, but with unique rules.

Key details and caveats to consider before you rush to open one:

Contributions & Government Seed: Families can contribute up to $5,000 annually per child. Crucially, there are no income limits to contribute. The government provides a $1,000 seed deposit for certain children.
The Big Lockup: Generally, no withdrawals are allowed from the account until the beneficiary turns 18. The money is locked up during the child’s most formative years.
Tax Caveat: QSA contributions are after-tax (non-deductible). The funds grow tax-deferred. Once the account converts to an IRA at age 18, withdrawals of the earnings are taxed as ordinary income, not at the lower capital gains rate.
Limited Investments: During the child’s minor years, the account must be invested in one or more low-cost diversified U.S. stock index funds.

QSA vs. 529 Plan

When considering a savings vehicle for a child’s education, the battle-tested 529 plan still offers clear and powerful tax advantages. The choice between them depends entirely on your specific goals.

Feature	529 Plan (Education-Focused)	Qualified Savings Account (QSA)
Tax Treatment on Withdrawals	Tax-Free growth and Tax-Free withdrawals for qualified education expenses.	Withdrawals of earnings are taxed as Ordinary Income.
Contribution Limits	Ultra-high federal limits, with state limits often $300k – $500k+ per beneficiary.	Limited to $5,000 per year in private contributions.
Access/Liquidity	Controlled by the parent/owner; withdrawals permitted anytime for qualified expenses.	Funds are generally inaccessible until the beneficiary turns 18.
Investment Flexibility	Wide range of mutual funds and portfolios are offered by the state plan.	Limited to U.S. Stock Index Funds during the minor years.

Intelligently Integrating Your Financial Life

A new account is simply another entry in your “financial junk drawer”. If you have a separate plan for your 529s, one for your current employer’s 401(k), and another for your new QSA, how do you know if they are all working efficiently together?

As our clients’ advisors, we act as the quarterback for their entire financial picture. We use our proprietary financial technology, Intelligrations®, to organize their financial “junk drawer” and focus on the important financial measurements that matter.

This includes:

Managing Held-Away Assets: We proactively monitor, manage, and trade our clients’ held-away assets, such as their 401(k) and 403(b) accounts, to ensure they align with their overall strategy. We believe an annual static review is not enough.
Aligning Risk: We ensure our clients’ entire portfolio is aligned with their personalized risk number. This prevents them from panicking and helps them control their emotions during volatile market cycles.
Minimizing Fees (Including Taxes): We help with proper tax location to ensure their money is working as efficiently as possible, minimizing the biggest fee—taxes.

We cannot control the markets or how long you may live. However, by investing prudently, managing risks, and coaching you to control your emotions, we may provide a smoother path on this journey called life.

Ready to Minimize Your Financial Stress?

Don’t let market noise and new financial fads distract you from your long-term goals. If you’re ready to get organized and minimize your financial stress so you can maximize your life, the next step is simple:

We’d love to help minimize your financial stress in your life by organizing your “financial junk drawers.” Click here to schedule a complimentary call or coffee to get started.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

20 Essential Year-End Tax Tips: Intelligent Investing’s Guide for Smart Tax Planning

December 11, 2025 by Hans Blake, CFA, CPA

Reading Time: 5 minutes

As the year draws to a close, it’s an ideal time to review your financial situation and make strategic moves to optimize your tax picture. At Intelligent Investing, we believe proactive tax planning is essential to effective wealth management. Thoughtful, year-end tax strategies can reduce your tax burden, enhance your financial flexibility, and maximize the value of your investments. By carefully managing taxes, you’re not only keeping more of what you’ve earned—you’re aligning your financial plan with your future goals.

At Intelligent Investing, we’re passionate about helping our clients navigate the complexities of tax planning with personalized advice and strategies tailored to your unique financial situation. If you’re looking to make the most of this year’s opportunities and set yourself up for success, we’re here to help.

Here are 20 essential year-end tax tips to consider:

1. Make Last-Minute Charitable Donations If you itemize, consider charitable contributions to maximize your deductions. Be mindful of your deduction limits so you can make the most of your generosity.
2. Optimize Your Annual Gift Exclusions The annual gift exclusion for 2025 is $19,000 ($19,000 for 2026) per individual. Maximize tax-free transfers to family or friends as part of your long-term gifting strategy.
3. Evaluate Capital Gains and Losses Review your portfolio for potential capital gains and losses. Tax-loss harvesting allows you to offset gains with losses, which can reduce your taxable income. If your net capital loss exceeds the $3,000 annual limit, you can use the remaining amount to lower your ordinary income up to this limit each year and carry forward any additional losses to future tax years. This strategy can help manage your tax bill both now and in the years ahead.
4. Use the Kiddie Tax Threshold If your child has unearned income, consider the kiddie tax rules. Up to $2,700 ($2,700 for 2026) of unearned income can be taxed at your child’s lower rate—helping you reduce the family’s overall tax burden.
5. Contribute to Retirement Accounts Max out contributions to IRAs, 401(k)s, and other retirement accounts. For 2025, the 401(k) limit is $23,500 ($24,500 for 2026) and the IRA limit is $7,000 ($7,500 for 2026). These contributions reduce taxable income and help fund your retirement.
6. Consider Donating Appreciated Stock Donating appreciated investments (held for over a year) can yield a double tax benefit: avoid capital gains tax on the growth and receive a charitable deduction for the full value. For investments held less than a year, your charitable deduction is generally limited to the cost basis (what you originally paid for the stock), not its current market value. This means you won’t be able to deduct the full appreciated value of the stock.
7. Confirm RMD Compliance If you’re over 73, ensure you’ve taken your required minimum distribution (RMD) from traditional retirement accounts. Missed RMDs can incur a steep penalty. We handle this for all our clients to ensure no RMDs are missed.
8. Maximize Tax-Free Accounts Check your Flexible Spending Accounts (FSAs) and dependent care accounts to ensure you’ve spent funds that won’t roll over into the new year. For 2025, the FSA contribution limit is $3,300 ($3,400 for 2026). Make the most of those contributions.
9. Plan for Roth IRA Conversions Consider a Roth IRA conversion if it aligns with your tax strategy. Converting now can create tax-free growth in future years, especially if you’re in a lower tax bracket.
10. Review W-2 Withholdings If you expect a significant change in income or deductions, adjust your W-2 withholdings for the upcoming year to avoid surprises.
11. Contribute to a 529 College Savings Plan If saving for a child’s or grandchild’s education is one of your goals, consider contributing to a 529 plan before year-end. Many states (like South Carolina) offer a tax deduction or credit for contributions, and the funds grow tax-free if used for qualified educational expenses. It’s a valuable tool to help reduce future education costs while potentially lowering your current tax burden.
12. Consider Tax-Advantaged Health Accounts Fully fund your Health Savings Account (HSA) if you have a high-deductible health plan. For 2025, the limit is $4,300 for individuals ($4,400 for 2026) and $8,550 for families ($8,750 for 2026). HSAs offer a triple tax benefit—tax-free contributions, growth, and withdrawals for qualified expenses.
13. Make Final Estimated Tax Payments If your withholding or estimated payments are falling short, make a final estimated tax payment by January 15 to avoid potential penalties.
14. Organize Your Tax Forms List expected 1099s, W-2s, and other tax forms. Preparing early makes filing smoother and helps catch any errors from financial institutions.
15. Consider Accelerating Deductions or Deferring Income If you’re able, consider accelerating deductions into this year, such as paying property taxes or making mortgage interest payments early. Conversely, if you anticipate being in a lower tax bracket next year, you might choose to defer income to the following year. This strategy can help you manage your taxable income and potentially lower your overall tax liability, depending on your current and future financial situation.
16. Plan for AMT Exposure High earners may be subject to the Alternative Minimum Tax (AMT). Review deductions that could trigger AMT, like state and property taxes, and adjust your plan accordingly.
17. Pay Off Deductible Expenses Early Similar to the idea mentioned in 15, consider prepaying certain deductible expenses—such as mortgage interest or medical bills—if you’re close to maximizing your itemized deductions this year.
18. Rebalance Your Portfolio for Tax Efficiency Rebalance your investments as part of year-end planning. This helps align with your target allocations and can minimize potential tax surprises next year. We monitor and rebalance our clients’ portfolios throughout the year.
19. Plan for Non-Cash Contributions Donated items like clothing or household goods can be deductible if donated to a qualified charity. Remember to get a receipt and document the fair market value.
20. Prepare for Higher Standard Deductions Similar to ideas mentioned earlier, if you won’t exceed the standard deduction this year $15,750 for singles ($16,100 for 2026) and $31,500 for joint filers ($32,200 for 2026), consider bunching deductions into every other year (e.g., doubling up on charitable gifts) to maximize tax savings.

Additional Items to Consider

New Higher Catch-Up Limits (Ages 60–63): Effective for 2025, the “catch-up” contribution for 401(k) participants aged 60 to 63 has increased to $11,250. This is significantly higher than the standard catch-up for those age 50+.
Estate Tax Exemption Increase: The federal estate and gift tax exemption is approximately $13.99 million for 2025 and rises to $15 million for 2026. This is a critical update for high-net-worth estate planning.
529-to-Roth Rollovers: You might consider adding a note about the ability to roll over unused 529 funds to a Roth IRA (up to a $35,000 lifetime limit), provided the account has been open for 15 years. This rule is now fully effective.
Claim the New Senior Bonus Deduction If you are age 65 or older, you may now claim a new $6,000 bonus deduction ($12,000 for couples where both are 65+) on top of your regular standard or itemized deductions. Be aware that this benefit phases out for Modified Adjusted Gross Incomes (MAGI) over $75,000 for singles and $150,000 for couples. Ensure you meet the income requirements to claim this significant tax break for 2025 and 2026.

At Intelligent Investing, we view these tax strategies as essential components of your financial plan. Our fiduciary approach ensures that each strategy aligns with your long-term goals, reduces tax burdens, and preserves wealth for the future.

Feel free to reach out for a complimentary call or coffee. Now’s the time to take action, and we’re here to help every step of the way. Let’s end the year with a strategic approach that sets you up for financial success in 2026 and beyond.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Is a 50-Year Mortgage an Affordability Solution, or a Financial Trap?

November 14, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

The housing market is facing a legitimate affordability crisis. With high interest rates and soaring home values, many Americans, especially first-time buyers and young families, feel locked out of the American Dream. Recently, one proposed “solution” has been making headlines: the 50-year mortgage.

While the immediate thought is to cheer for lower monthly payments, at Intelligent Investing, our deep commitment to our core values—especially Truth and putting the CLIENT first—compels us to look beyond the headline. We believe this idea is a short-term political palliative that ultimately creates a longer-term financial problem. Lengthening the debt term is not a true fix; it’s a way to institutionalize debt and exacerbate the wealth gap.

The Real Cost: A Lifetime of Debt

The primary appeal of a 50-year loan is a seemingly lower monthly payment, which is designed to make a house “affordable” on paper. But this is a classic example of financial short-sightedness winning out over long-term financial prudence.

Consider a hypothetical example:

Loan Amount: $360,000 (assuming a $400,000 home with 10% down)
Interest Rate (Hypothetical): 6.25%

Loan Term	Monthly Payment (P&I)	Total Interest Paid Over Loan Life	Slower Equity Accumulation
30-Year	Approx. $2,217	Approx. $438,156	After 10 years, approx. 24% equity
50-Year	Approx. $2,036	Approx. $816,396	After 10 years, approx. 14% equity

A 50-year mortgage, even with the same rate, would cost the homeowner roughly 86% more in interest than a 30-year loan. Furthermore, because a higher portion of early payments goes toward interest, building wealth through home equity is significantly slower.

This financial structure is a gift to the banks and lenders, who would earn nearly double the interest income, all while trapping consumers in what critics are calling “intergenerational debt”. This actively works against our goal of helping clients minimize fees (including taxes).

Inflating the Bubble: The Supply vs. Demand Problem

The second core issue, and one that echoes the mistakes leading up to the 2008 housing crisis, is the failure to address the root cause of the affordability problem: the limited supply of homes.

The 50-year mortgage essentially increases the borrowing power of consumers without creating a single new home. By lowering the required monthly payment, it allows buyers to stretch their budgets for a more expensive house, which simply increases demand for an already scarce resource.

In the world of economics, when you boost demand for a fixed supply, prices go up. This proposal would likely drive up home prices across the board, completely negating the original argument of “making homes more affordable”. The only people who win are the home sellers, builders, and lenders.

A Return to Risky Behavior?

While the Dodd-Frank Act put safeguards in place to prevent the ultra-risky lending practices of 2008 (such as those that led to non-Qualified Mortgages), we are always cautious about policies that encourage poor investor behavior.

Higher Interest Rates: Longer loan terms carry higher risk for lenders, which means the interest rates on a 50-year mortgage would likely be higher than on a 30-year one. This higher rate would erode any small monthly payment savings.
Rate Shock Risk: For those who opt for an adjustable-rate mortgage (ARM) or a balloon structure, the risk of a massive payment shock later in life, when one’s income may be reduced in retirement, becomes a huge liability.

At Intelligent Investing, we believe our greatest value is acting as a prudent behavioral coach. We strive to help clients maintain a Discipline of doing the right things, ignoring the “siren songs” of quick fixes, and fostering the Patience to let strategies play out over time.

The Real Solution is Deeper

The affordability crisis is real, but extending the repayment period to half a century is not the answer. It’s an unsustainable way to mask a structural problem. We need policies focused on increasing housing supply, streamlining the construction process, reducing regulatory barriers, and reining in inflation, not simply making it easier to take on more debt.

We are committed to helping you minimize financial stress so you can maximize your life. Financial freedom is built on eliminating debt, not extending it across multiple generations.

Take the first step toward financial peace of mind. Click here to schedule a complimentary call or coffee with one of our advisors. Let us help you turn the page on financial stress and move forward with confidence.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Self-Inflicted Financial Stress: How to Find Relief

September 28, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

At Intelligent Investing, one of our core goals is to minimize financial stress and help maximize the joy and fulfillment in our clients’ lives. However, we understand that many clients and prospects come to us already burdened by financial stress—often stemming from decisions made without a full understanding of the implications. Whether it’s an investment in a venture they didn’t fully understand or a financial product like an annuity with a costly surrender charge, these situations can leave individuals feeling stuck, embarrassed, and overwhelmed.

Understanding the Situation

Financial stress is often magnified when clients feel trapped in a decision. A recent example involved a client who invested in a venture capital real estate fund. They discovered they were locked into the investment for several more years, with additional stress added by a recent capital call. If they didn’t participate, their original investment would be diluted, creating a sense of pressure and uncertainty.

At Intelligent Investing, we work tirelessly to assist clients in these situations. In this case, we were able to connect with the fund’s CFO to explore options and provide guidance. While we can often offer solutions, there are times when certain limitations prevent us from making immediate changes. This underscores the importance of partnering with a fiduciary who prioritizes your best interests from the outset.

Why Work with a Fiduciary?

As a 100% fee-only fiduciary, Intelligent Investing’s compensation structure is aligned with our clients’ success. We get paid based on the assets we manage, meaning our fees rise and fall with the performance of your portfolio. This alignment ensures we are always on the same side of the table as you, striving to make decisions that are in your best interest.

This commitment to transparency and client-first service helps reduce the likelihood of encountering financial products or investments that may cause stress down the road.

Annuity Rescue Program

For those who feel trapped in high-fee annuities or products with surrender charges, Intelligent Investing offers an Annuity Rescue Program. Utilizing specific provisions within the tax code, we can potentially transfer your annuity into a more flexible and transparent investment vehicle. This allows us to tailor your portfolio to your goals and risk tolerance while providing greater control over your investments. Many of our clients have found significant relief through this program, and we’re here to help determine if it’s the right fit for you.

Find Relief Today

If you’re feeling the weight of financial stress from past decisions, know that you’re not alone. At Intelligent Investing, we’re here to help guide you toward a solution that works for your unique circumstances. Whether it’s navigating a complex investment, exploring our annuity rescue program, or simply gaining clarity on your financial situation, we’re ready to help.

Join Our Newsletter!

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Understanding 529 Education Savings Plans

September 28, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

A 529 plan is a state-sponsored, tax-advantaged savings plan designed to help families save for education expenses. Contributions are made with after-tax money, but the funds grow tax-free, and qualified withdrawals are also tax-free. Some states even offer tax deductions or credits for contributions.

Key Benefits & Recent Expansions (The “One Big Beautiful Bill Act“)

Recent legislation significantly broadens the utility of 529 plans, making them more versatile than ever before:

Tax-Free Growth & Withdrawals: Your savings grow free from federal taxes, and withdrawals for qualified education expenses are tax-free.
Expanded Qualified Expenses:
- K-12 Education: Now includes up to $20,000 annually per beneficiary (previously $10,000) for tuition, curriculum, books, online resources, tutoring, and educational therapies for students with disabilities. This is particularly beneficial for homeschool families.
- Workforce Development: Covers tuition, materials, and fees for certificate programs, trade schools, and other federally recognized credentialing programs.
- Standardized Testing: Fees for standardized tests are now qualified expenses.
- Dual Enrollment: Fees for college courses taken in high school are included.
Roth IRA Rollover Option: Up to $35,000 in unused funds can be rolled into a Roth IRA for the beneficiary under certain conditions, offering a valuable long-term savings option if education plans change.
Beneficiary Flexibility: You can change the beneficiary to another qualified family member if needed.

Important Considerations & Potential Drawbacks

While 529 plans offer significant advantages, they may not be suitable for everyone:

Limited Investment Choices: Most plans offer a restricted selection of mutual funds, often age-based target funds, which might limit potential earnings growth compared to a broader market index or individual stock investments.
Financial Aid Impact: Funds held in a 529 plan are considered an asset on the Free Application for Federal Student Aid (FAFSA) and can modestly reduce eligibility for need-based financial aid.
State-Specific Rules: While federal law governs tax-free growth, specific state tax benefits and what qualifies for a state-level deduction/credit can vary significantly. Some states may still tax withdrawals for K-12 expenses even if federally qualified.
Rigid Rules: Despite expansions, there are still caps and specific requirements on how funds can be used (e.g., a $10,000 lifetime cap for student loan repayments).
Awareness: It’s possible for beneficiaries to be unaware a 529 plan has been opened for them, leading to unused funds.

529 plans, especially with recent expansions, are powerful tools for saving for a wide range of educational and career development expenses. However, their suitability depends on individual circumstances and financial goals.

At Intelligent Investing, a boutique wealth management firm, we specialize in serving high-net-worth individuals and families, providing tailored financial guidance. We are committed to our core values, encapsulated by the acronym CLIENT: Compassion, Legacy, Integrity, Excellence, Nimbleness, and Truth. We encourage you to contact us to discuss how a 529 plan or other strategies can best fit into your comprehensive wealth management strategy. Learn more at investedwithyou.com.

Join Our Newsletter!

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Poor Charlie’s Almanack: Life Lessons from Charlie Munger

September 28, 2025 by Hans Blake, CFA, CPA

Reading Time: 6 minutes

I love reading about fellow investors and immersing myself in their biographies. For my birthday this year, I received a copy of Poor Charlie’s Almanack, and I’ve been thoroughly enjoying reading about one of the most significant financial partnerships in our country’s history. From the book, I’ve learned that Warren Buffett perfectly captures the purpose of this book by comparing it to the timeless wisdom of Ben Franklin’s Poor Richard’s Almanack. From 1733 to 1758, Franklin’s almanac dispensed useful, timeless advice on virtues like thrift and hard work. Two centuries later, Charlie Munger stepped forth to become the last word on the subject of timeless wisdom.

Charlie’s Hardships

Munger’s life journey is a testament to the power of resilience, discipline, and the profound value of an accountability partner. While his immediate family was not dramatically affected by the Great Depression, he saw firsthand the struggles of those less fortunate, from hobos seeking handouts to individuals willing to sweep driveways for a sandwich. This experience, which he observed as a young boy in Omaha, likely made a lasting impression on him.

Just like many of our clients today, Charlie Munger faced his own significant ups and downs. After leaving Omaha for the University of Michigan, his education was interrupted when he enlisted in the Army Air Corps. Later in life, he endured a painful divorce and, at just 29, the terminal illness and death of his adored son, Teddy, from leukemia. A friend recalls Charlie visiting his dying son and then walking the streets of Pasadena, crying. These difficult, emotional experiences are something we can all relate to, and they highlight why having a trusted partner is so critical during life’s inevitable hardships.

Despite his lack of a bachelor’s degree, the Army measured Charlie’s IQ at the top of the curve, and he used his God-given abilities to get into and succeed at Harvard Law School, graduating magna cum laude in 1948. This success provided him with the financial independence to pursue his own path, eventually leaving law to focus on investing. This is a journey many of our clients can relate to—building a successful career to achieve the financial freedom to pursue what matters most, whether that’s an entrepreneurial venture or an early retirement.

The Importance of an Accountability Partner

Like many of our clients, Charlie was smart and successful on his own. He built a law practice and even a successful investment partnership, which compounded at a gross rate of 28.3% for its first 11 years. However, the real turning point came when he partnered with Warren Buffett. Warren was unenthusiastic about Charlie’s continued practice of law, saying it was a far less promising business than investing. It was Warren’s logic and influence as an accountability partner that helped Charlie decide to leave his law practice at the earliest opportunity.

This partnership was tested in the brutal bear market of 1973 and 1974. Despite Munger’s conviction that his major investments were “virtually sure of eventually being salable at prices higher than the quoted market prices,” the partnership was hit hard, falling 31.9% and 31.5% in back-to-back years. The emotional stress of managing other people’s money through a difficult downturn led Charlie to a key realization: he no longer wanted to manage funds directly for investors. This difficult experience was the final push he needed. It solidified his resolve to follow Warren’s example, and he eventually joined him to build equity through stock ownership in a holding company, which became Berkshire Hathaway. Their partnership, founded on mutual respect and shared principles, provided the discipline to navigate these storms and achieve extraordinary long-term success.

Lessons from Charlie Munger

As I read Munger’s biography, several lessons jumped out at me that align perfectly with our core values at Intelligent Investing.

Integrity: Do the Right Thing When No One Is Looking

During a family ski trip, Munger took a 10-minute detour to fill the gas tank of a borrowed Jeep, even though it was still half full. When his son asked why, given they were pressed for time to catch their plane, Munger admonished him, “When you borrow a man’s car, you always return it with a full tank of gas”. This anecdote perfectly illustrates our core value of integrity—doing the right thing when no one is looking. Our moral compass enables us to put your interests first.

Excellence: Do the Job Right the First Time

Another powerful lesson Munger taught his children was, “Do the job right the first time.” This can be a humbling lesson in an impatient world. However, at Intelligent Investing, we never settle and constantly want to improve our clients’ experience by listening to our clients’ feedback and implementing it immediately.

Responsibility and Resilience

When Munger’s son lost his grandmother’s car keys in five feet of murky lake water, Charlie didn’t just give him a new set. Instead, his solution was simple: “Go out with your friends and keep diving till you get those keys and don’t come home without them”. This lesson in responsibility and resilience aligns with how we approach behavioral coaching. We help you stay accountable to your financial plan, ensuring you don’t panic when markets get difficult. We want to help you remove the emotion out of investing and help you maintain the course towards your financial goals.

Contrarian Thinking and the “Circle of Competence”

Munger also raised his children to be skeptical, even contrarian. His daughter, Molly Munger, said this was a particularly helpful way of thinking to carry into the maelstrom of the late 60s. As advisors, we consider ourselves to be professional skeptics. We look for what is tried and true and has always worked—such as diversification, asset allocation, and keeping emotions at bay. We believe this is a far more reliable path to success than chasing the latest trends.

This contrarian mindset is closely linked to one of Munger’s most valuable lessons for investors: understanding your “circle of competence.” Munger argues that true intelligence isn’t about knowing everything, but rather about knowing the boundaries of what you know. He suggests that if you stay within this circle—a defined area where you have real expertise—you significantly increase your chances of success.

Durability and Partnership

One of Munger’s most affectionate memories with his father was shopping for durable clothes at Brooks Brothers. His father admired the store because it was a durable institution and its merchandise was too, and fairly priced. Munger’s father said, of a brown tweed coat, “This will always keep its crease”. This belief in durability is a first-rate virtue, and it is something we strive to do for each of our clients. We have built a durable, repeatable process that is designed to help you navigate market cycles and achieve your long-term goals.

At Intelligent Investing, we believe a trusted advisor should serve as your financial accountability partner. This means being on the same side of the table as you, working together to achieve your financial independence and freedom—whether that’s pursuing an entrepreneurial business, retiring early, or simply gaining peace of mind. Just as Warren Buffett spoke the truth to Charlie, even when it may have stung a little, we strive to speak the truth in love to our clients. You can learn more about this core value and the others that guide our work by visiting our Core Values page.

Leveraging Technology and Fiduciary Duty

Understanding your financial position and staying disciplined is one thing; staying on track is another. Our proprietary software, Intelligrations®, intelligently integrates your financial life to help minimize stress and maximize your life. We help you organize your financial “junk drawer” and proactively manage your entire portfolio, including held-away assets like 401k and 403b accounts. Intelligrations® helps align your financial plan, risk tolerance, and portfolio in real-time, helping you focus on what truly matters.

As an independent, fee-only fiduciary, our responsibility is to always act in your best interest. This removes conflicts of interest and places us on the same side of the table as you. We are incentivized to ensure you are in the right portfolio based on your unique goals and risk tolerances.

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As Charlie put it, we would love to be in your “Circle of Competence” especially if you don’t have or trust your current advisor. Our passion truly is to minimize your financial stress and maximize your life. To get started on organizing your “financial junk drawers”, click here to schedule a complimentary call or coffee.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

How a Game of Solitaire Help Solve the Retirement Puzzle

September 27, 2025 by Hans Blake, CFA, CPA

Reading Time: 5 minutes

With a staggering number of people approaching retirement, the pressure to know you are truly prepared is immense. Over the next two decades, an estimated $84 trillion will be transferred between generations, with much of that wealth going to millennials and Gen X. Meanwhile, a record number of Americans—more than 11,000 per day from 2024 to 2027—are turning 65. This historic “Peak 65” surge means that a lot of people need to be confident in their financial future.

For me, this idea of financial confidence started not in a finance classroom, but with a deck of cards. As a young boy, I would visit my grandparents and we’d play Rook around their card table, which my family still has today. The game’s instructions held a secret—a way to play Solitaire. I taught myself, and I became fascinated by why some games were won and others were lost. I knew it wasn’t random; there had to be a pattern, a probability that I just couldn’t solve on my own.

Today, that same curiosity drives our work at Intelligent Investing. We believe you don’t have to play this “financial game” alone. We’re here to help you move from a game of chance to a game of confidence by using principles that have guided scientists for centuries, from nuclear physics to modern data science.

From a Coin Flip to a Retirement Plan

To understand how we provide a high degree of confidence in your financial future, you can think of a simple coin flip. If you flip a coin 10 times, you might get six heads and four tails. It’s an unpredictable, random result. However, if you keep flipping the coin hundreds or even thousands of times, the results will consistently converge toward the expected 50/50 outcome. This is a core principle in probability known as the Law of Large Numbers.

The key concept behind modern financial prediction is the Monte Carlo method, a powerful statistical technique that uses this very principle. Its origin story is just as captivating as the math. In 1946, while recovering from a severe illness, mathematician Stanislaw Ulam found himself playing countless games of Solitaire. He realized that analytically solving the probability of winning a randomly shuffled game was “hopeless” due to the immense number of possible arrangements. His simple idea was to just play hundreds of games and count the wins to get a good estimate.

Ulam and his colleague John von Neumann then applied this random sampling concept to their top-secret work on the Manhattan Project. They needed to model how neutrons behaved inside a nuclear core, a problem with an immense number of possible outcomes that made direct computation impossible. This groundbreaking method of using random sampling to approximate complex problems with high stakes was named the Monte Carlo method, a fitting name given the element of chance in games like Solitaire and the nature of their work. The name was a clever code word, a nod to the famous gambling city of Monaco where games of chance are central.

The Nobel Prize-Winning Theory of Risk

While the Monte Carlo method handles the probabilities of the markets, we also know that investor behavior is the dominant determinant of long-term returns. This is where a second Nobel Prize-winning theory comes into play: Prospect Theory, developed by Nobel laureates Daniel Kahneman and Amos Tversky. This theory tells us that investors are more sensitive to losses than they are to gains.

A simple illustration of this is the “mug experiment” often used in behavioral economics. Imagine you’re in a room, and you’re given a mug. A few minutes later, you’re asked if you’d like to sell the mug back. Most people refuse, even for a price higher than what they would have been willing to pay to buy it in the first place. This is because the emotional pain of “loss aversion”—losing the mug you now own—is much greater than the potential joy of gaining the money from selling it. We’re wired to feel losses more acutely than we feel gains.

This fundamental bias is why an investor may hold onto a losing investment for too long, as they don’t want to “lock in a loss” and admit a poor choice was made. We all have these behavioral blind spots. We convince ourselves that everyone else thinks the same way we do. This is why we need to remove our emotions from investing and have a plan we can stick with.

At Intelligent Investing, we use technology based on this theory to quantify your personal comfort with risk. We use Nitrogen, a cutting-edge software that determines your unique Risk Number—a score from 1 to 99 that objectively quantifies your risk tolerance. By using real dollar amounts to gauge your acceptable level of potential loss, we move beyond subjective terms like “conservative” or “aggressive” and align your portfolio with your true risk tolerance. This helps you avoid misbehaving and allows us to act as your prudent behavioral coach.

Part of this accountability is solidified through our Investment Policy Statement, or IPS. Both the client and the advisor sign off on this document, which formally agrees to a specific risk level for the portfolio. This ensures that expectations are set and emotions are kept on the sidelines, providing a clear audit trail and keeping everyone accountable.

Bringing It All Together: A Plan for a Changing World

Your financial life is an incredibly complex, dependent system. Your future success depends not only on market factors but on a chain of interconnected factors: inflation, market volatility, and personal spending habits.

At Intelligent Investing, we believe in partnering with our clients on their financial journey. For clients with a financial plan, we use both the Monte Carlo method to run over 1,000 scenarios and Nitrogen’s Risk Number, which serves as a valuable tool to help track your progress. Think of it as a helpful “report card” that provides clear, transparent expectations for potential gains and losses in dollar amounts. This powerful combination helps to reduce emotional and subjective guesswork, giving you a clear “probability of success” for your retirement and a sense of confidence in your plan.

Our proprietary fintech solution, Intelligrations®, intelligently integrates your financial life to help you gain this crucial clarity. By leveraging technology, we help you gain confidence in your financial future and remove the emotions from investing.

Are you ready to stop guessing and start knowing? Download our complimentary e-book entitled, “Is Your Portfolio on Track” , and if you enjoyed this blog, consider joining our monthly complimentary Intelligent Insights newsletter by clicking here. For those of you who are ready to stop guessing what your financial future may hold, reach out for a complimentary call or coffee. We’d be honored to serve you and your family.

If you found this blog interesting and would like to stay informed about financial topics like this, consider joining our monthly complimentary Intelligent Insights newsletter.

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Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.

Navigating Required Minimum Distributions (RMDs): Why You Shouldn’t Go It Alone

September 18, 2025 by Hans Blake, CFA, CPA

Reading Time: 3 minutes

Retirement planning doesn’t end when you stop working—it evolves. One of the most crucial yet often misunderstood aspects of retirement income planning is Required Minimum Distributions (RMDs). If you’re nearing age 73 or have inherited an IRA, understanding these rules is critical to avoiding unnecessary penalties and ensuring your retirement savings work for you.

What Are RMDs and Who Needs to Take Them?

RMDs are the minimum amounts you must withdraw annually from your retirement accounts, including traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer-sponsored retirement plans (such as 401(k) and 403(b) plans). These distributions begin at age 73, thanks to changes implemented by the SECURE Act 2.0.

However, there are exceptions:

If you’re still working and participating in a workplace retirement plan, you may be able to delay your RMDs—unless you own more than 5% of the company sponsoring the plan.
Roth IRAs do not require RMDs during the account owner’s lifetime, though designated Roth 401(k)s and 403(b)s do unless rolled into a Roth IRA.
Inherited retirement accounts follow different RMD rules, especially after the SECURE Act changes.

Why You Need to Plan RMDs Strategically

Taking RMDs isn’t just about meeting IRS requirements—it’s about optimizing your financial future. Failing to withdraw the correct amount can result in a steep penalty of 25% (recently reduced from 50%) of the shortfall, making compliance crucial. But beyond avoiding penalties, there are several tax strategies to consider:

Timing Your First RMD: If you turn 73 in 2025, you have until April 1, 2026, to take your first RMD. However, delaying until April means taking two distributions in one tax year, which could push you into a higher tax bracket.
Charitable Giving Opportunities: If you’re charitably inclined, a Qualified Charitable Distribution (QCD) allows you to donate up to $100,000 from your IRA directly to charity, satisfying your RMD without increasing taxable income.
Tax-Efficient Withdrawals: Combining RMDs with Roth conversions or strategically withdrawing funds earlier may help manage future tax liabilities.

SECURE Act 2.0 and New RMD Rules

The SECURE Act 2.0 introduced several key updates to RMD regulations:

Age Increase for RMDs: The required starting age for RMDs increased from 72 to 73 (and will eventually rise to 75 by 2033).
Spousal Election for RMDs: A surviving spouse can elect to be treated as the deceased spouse for RMD purposes, potentially delaying distributions until the decedent would have reached RMD age.
New 10-Year Rule for Inherited Accounts: Most non-spouse beneficiaries must now withdraw the entire balance within 10 years, regardless of whether the original owner had started RMDs.
Updated Life Expectancy Tables: Beneficiaries taking RMDs based on life expectancy calculations can reset their figures using revised IRS tables introduced in 2022, potentially lowering required withdrawals.

Avoid Costly Mistakes—Let Us Help

Understanding the nuances of RMDs is essential, but it can be complex, especially with the evolving tax landscape. Whether you’re approaching your first RMD, inheriting a retirement account, or looking for tax-efficient distribution strategies, we’re here to guide you through the process.

As a CPA and fiduciary wealth advisor, I specialize in helping clients organize their financial junk drawers—including RMDs. The last thing you want is to miss an RMD deadline or pay more in taxes than necessary. Let’s work together to ensure you stay compliant while making the most of your retirement savings.

If you have questions about your RMDs or want to explore tax-efficient withdrawal strategies, reach out to us today. We’re here to help you navigate the rules and avoid costly missteps—so you can enjoy your retirement with confidence. Click here to get started.

Take the Next Step

Don’t let forgotten accounts derail your financial journey. Download our complimentary e-book, Is Your Portfolio on Track, and start taking control of your retirement savings today. Click here to access the e-book.

If you found this blog interesting and would like to stay informed about financial topics like this, consider joining our monthly complimentary Intelligent Insights newsletter.

Join Our Newsletter!

Disclosure: This blog may reflect the perspectives and research of Intelligent Investing and, where applicable, incorporates insights from guest interviews or expert opinions. Any external views or opinions shared do not necessarily reflect the stance of Intelligent Investing. We may also utilize tools such as ChatGPT to enhance readability, grammar, and flow, while all core ideas remain proprietary to our firm.

Please note that Intelligent Investing does not provide specific tax or legal advice. All investments carry risks, including the potential loss of principal, and past performance is not indicative of future results. Any specific securities, sectors, or investment strategies mentioned are for informational purposes only and should not be considered a recommendation. We encourage readers to consult with Intelligent Investing for advice tailored to their unique financial situation. Unauthorized reproduction or distribution of this content is prohibited without proper credit to Intelligent Investing.