Welcome to The Horizon – a monthly article of insights from our Financial, Tax, Investment, and Insurance professionals here at Mach 1 Financial Group.
Trump Accounts: $1,000 for Your Child/Grandchild as of July 4th!
Eli Freeman, CFP® | Vice President of Planning – Mach 1 Financial Group
If you or someone you know is having—or has had—a baby between 2025 and 2028, please read this.
A new savings opportunity is available for children born during this four-year window through the new Trump Account program. Eligible children receive a $1,000 government-funded contribution at birth, providing a head start on long-term investing.
While $1,000 may not seem significant today, time can be one of the most powerful drivers of wealth.
Parents, grandparents, and other family members may also have the opportunity to make additional contributions, allowing the account to grow even further over time. There is a $5,000 limit per child and the contribution does not reduce your lifetime gifting exemption.
Whether you’re welcoming a new child, grandchild, or know someone who is, this is an opportunity worth understanding.
If you’d like to learn more about how these accounts work and the planning opportunities they may create, I recently covered the topic in a Data Brief video on YouTube. The video walks through the rules, eligibility requirements, and planning considerations, such as whether you should contribute to the Trump account or a 529.
Watch the full video here: https://youtu.be/69nZAmDGqiU
150(ish) Years of Income Tax
William Martens , CPA | Director of Tax Planning – Mach 1 Financial Group
As we celebrate our nation’s 250th birthday this month, I figured I might do a little reading up on the history of the U.S. income tax.
Lest you immediately think “Wow, only a nerdy CPA would ever think of that as a birthday celebration,” remember that this whole thing started because of “taxation without representation” – who knows where we would be without that tea tax! The following facts are taken straight from the IRS website:
- 1862: The nation’s first income tax – 3% on incomes between $600 and $10,000 and 5% on incomes more than $10,000 – was signed into law by President Lincoln to help pay for Civil War expenses (That’s right, for almost the first hundred years of our history there was no such thing as personal income tax) It was repealed in 1872 (So, it didn’t last long.)
- 1868 – 1913: Ninety percent of all government revenue came from taxes on liquor, beer, wine, and tobacco. For comparison, that number is about 0.5% today. I’m not sure if that says more about Americans’ self-control or the government’s lack of self-control…
- 1913: Personal income tax was re-introduced and the Form 1040 was created
- 1944: Standard deductions were created, lowering your taxes just for being you
- 1986: Significant legislation known as the Tax Reform Act was signed into law by President Reagan and limited electronic filing introduced
- 1996: IRS launches “Digital Daily” on the worldwide web, which eventually became IRS.gov
- 2018: The IRS added Instagram to its online social media presence, an account you hope never slides into your DMs…
The U.S. taxation system has changed significantly as our nation has grown, from 100 years of zero income tax, to a high of 94% (1944), to the current brackets we have now.
While future changes to the system are uncertain, I’m pretty confident those changes won’t include a reversion to the first 100 years of zero tax – but hey, at least we have representation.
*Tax strategies are based on current law and individual facts; results are not guaranteed.
June 2026 Market Performance & Macroeconomic Overview
John Martfeld | Vice President of Investments – Mach 1 Financial Group
The stock market in June 2026 experienced a notable sector rotation, retreating from the aggressive rally of previous months. After hitting record highs in May, major indexes like the S&P 500 and Nasdaq ended June slightly lower, pressured by a sharp pullback in mega-cap technology and AI-linked stocks.
Key Market Themes
- Tech Sell-Off & Rotation: High-valuation technology, communication services, and consumer discretionary sectors faced significant selling pressure. Investors rotated capital into defensive and value-oriented areas, lifting Health Care, Utilities, and Consumer Staples.
- Energy Relief: Oil prices experienced relief; Brent crude and West Texas Intermediate (WTI) trended downwards throughout June, alleviating prior inflationary pressures and dragging down gas prices.
- Macro & Interest Rates: Hotter-than-expected personal income, PCE inflation, and robust employment reports caused Treasury yields to move higher. The Federal Reserve shifted toward a “higher for longer” stance, with some markets even pricing in the possibility of an additional rate hike.
Index Performance
- S&P 500: Posted minor weekly losses near the month’s close, but hovered historically high as non-tech and equal-weight sectors remained resilient.
- Nasdaq & QQQ: The Nasdaq 100 experienced steeper weekly declines, down over 3% as semiconductor and software momentum cooled off.
- Dow Jones: The Dow saw modest gains late in the month, briefly topping the 52,000 threshold, buoyed by the addition of Alphabet to the index
*Market commentary reflects current views and is not a forecast or guarantee of future results; investing involves risk.
Annuities When Bonds Fall Short
Isaac Johnson, CFP® | Vice President of Insurance – Mach 1 Financial Group
Recent market trends highlight that even with higher yields, bonds have experienced periods of limited price appreciation and, at times, negative returns. Fixed index annuities (FIAs) are sometimes considered as an alternative for portions of the fixed income allocation within a portfolio. FIAs are insurance products that provide principal protection, subject to the claims‑paying ability of the issuing insurer. They offer returns that are linked, in part, to the performance of a market index (such as the S&P 500), along with tax‑deferred growth. Unlike traditional bonds, FIAs are designed to help protect principal from market declines, while still allowing for participation in certain market movements. Some contracts also include optional features, such as lifetime income benefits.
During periods when bond performance is challenged, FIAs may offer different risk and return characteristics than traditional fixed income investments. However, they also come with important considerations, including caps on returns, surrender charges, and additional fees for optional riders.
While FIAs are not a complete replacement for bonds, they may serve to complement a diversified income strategy. Evaluating whether an annuity is appropriate depends on individual financial goals, time horizon, and overall portfolio structure. Talk to a financial advisor to discuss how annuities may fit within your broader financial plan and potentially enhance your retirement income.
Content prepared by Mach 1 Financial Group
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