Welcome to the Horizon – a monthly article of insights from the desks of our Planning, Tax, Investment, and Insurance professionals here at Mach 1 Financial Group.
Should You Hold More Cash?
Eli Freeman, CFP® | Vice President of Planning – Mach 1 Financial Group
One of the more overlooked pieces of a financial plan is cash.
In strong markets, holding excess cash can sometimes feel unproductive—especially when investment accounts are reaching new highs. However, from a planning perspective, cash often serves a much more important purpose than simply generating a return.
A healthy cash or low-risk reserve can provide flexibility during market downturns. If short-term spending needs are already covered, investors are less likely to feel pressure to sell long-term investments during periods of volatility. In many cases, the true value of cash is not just the interest earned in a high-yield savings account, but also the investment growth preserved by avoiding poorly timed selling decisions.
Historically, some of the market’s strongest recovery periods have occurred shortly after significant declines.
Missing those rebounds can have a meaningful impact on long-term outcomes. Having appropriate reserves in place can help create the patience needed to allow a long-term portfolio to recover.
With markets near all-time highs, this can also be a good time to review whether your cash and low-risk allocation still align with your spending needs and comfort level. In some cases, periods of market strength present an opportunity to replenish reserves that may have been drawn down over time.
Cash may not always feel exciting, but within a financial plan, it can be one of the most valuable tools for maintaining discipline and flexibility.
How the OBBA Affects Your 2026 Tax Year
Will Martens, CPA | Director of Tax Planning – Mach 1 Financial Group
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025 and contains provisions that deserve consideration as we think about the 2026 tax year.
Effective for tax year 2026, the federal estate, gift, and GST lifetime tax exemptions are now permanently set at $15 million per individual and $30 million per married couple, indexed for inflation going forward.
Remembering that it was only 9 years ago that this exemption was about $5.5M, the rapid increase in this tax-free estate amount is continuing to create meaningful wealth transfer opportunities.
The OBBBA made two notable changes to the charitable deduction beginning in tax year 2026. First, there is now a 0.5% AGI floor that must be overcome before any itemized charitable deductions can be taken. For example, if a married couple’s AGI was $150,000, then the first $750 of charitable contributions would not be deductible if the couple chooses to itemize.
Second, the OBBBA created a universal charitable deduction for those who choose the standard deduction, $1,000 for single taxpayers and $2,000 for married taxpayers. What this means is that even if you choose the standard deduction for 2026, up to $2,000 of charitable contributions can be deducted, provided they are cash contributions (DAF contributions notably do not qualify).
Considering new charitable gifting strategies such as “bunching” are even more important in 2026 with these provisions and all-time high standard deduction levels.
Tax laws, as we know, can change drastically with new administrations. Taking advantage of current tax law now can help hedge against the uncertainty of future adverse tax law changes.
*Tax strategies are based on current law and individual facts; results are not guaranteed.
May 2026 Markets Defined by Resilient S&P 500, Geopolitical Shifts over US-Iran Peace Talks, High Benchmark Borrowing Costs, and Surging AI Tech Investments
John Martfeld | Vice President of Investments – Mach 1 Financial Group
Macroeconomics & Geopolitics
- Strait of Hormuz Tensions: Oil prices experienced high volatility, surging past \(\$110\) due to geopolitical blockades before cooling off amid tentative diplomatic progress on a US-Iran peace agreement.
- Treasury Yields at Decade Highs: Yields for the 30-Year Treasury reached 5.15%—the highest levels seen since 2007. Consequently, U.S. mortgage rates also hit a 9-month high.
- Federal Reserve Stance: The central bank maintains strict inflation vigilance, with Fed governors actively warning against further rate cuts in the short term to avoid reigniting price pressures.
Corporate & Technology
- Nvidia’s AI Dominance: Nvidia reported $81.6 billion in revenue (an 85% year-over-year jump) and announced an $80 billion stock buyback. The numbers cemented continued enterprise spending on AI infrastructure.
- Earnings Divergences: While tech and industrial stocks pushed the S&P 500 to new milestones, specific sectors struggled. For example, Zoetis shares plummeted 21.5% following an earnings miss, while Becton Dickinson climbed 5.9% on earnings beats.
* Market commentary reflects current views and is not a forecast or guarantee of future results; investing involves risk.
Why Now is the Perfect Time to Review Your Old Annuities
Isaac Johnson, CFP® | Vice President of Insurance – Mach 1 Financial Group
If you’ve held a growth annuity for over ten years or have an income annuity that’s already turned on, now is the ideal time to review your policies. Just like any financial product, annuities evolve, and the features, rates, and benefits available today are often far superior to those offered a decade ago.
Interest rates and economic conditions change, and insurers frequently update their products to remain competitive. This means your old policy may no longer offer the best growth opportunities or income options available. Today’s annuities often come with lower fees, enhanced income features, improved death benefits, and greater flexibility for beneficiaries.
A fresh review can reveal cost savings, better performance, or stronger guarantees that are now available. For those already receiving income from their annuity, a reassessment can help ensure you’re maximizing your retirement income and legacy planning options. Replacing outdated policies with more modern, efficient solutions can often lead to a stronger financial outcome.
Content prepared by Mach 1 Financial Group
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