Letter to Stakeholders, March 2025

Thursday, March 6, 8:55 am EST. The 25% tariffs on Canada and Mexico that were delayed last month were put in place this week. Tariffs proposed on China have been doubled from 10% to 20% this week. Unsurprisingly those countries have responded and equally unsurprisingly, these tariffs are already being negotiated. Just hours after I started writing this, the administration exempted cars from the tariffs (for one month). Following the news cycle these days is an all or nothing endeavor: in 24 hours your update could be “out of date.” So, we follow the news hourly on your behalf. I read the “Breaking News” emails personally. Doug and I pay attention. 

The stock market reacts violently to short-term instability; sometimes up and sometimes down. We do not. “Volatility” – ups and downs – is what makes the stock market a market. We understand that and we know you do as well. Harder to ignore – and it will likely become harder – are the proposed cuts to the Social Security Administration and the Internal Revenue Service. As these critical, integral, pervasive government agencies lose resources we will likely feel the impact. I hope the disruption is short-term. I hope that somehow those agencies can magically do more with less. I hope.  

Like last month, if you or a friend need a guidepost for these times, we have resources to share with you. Thanks to Doug, we have 20 actions and resources to share with (especially) the federal workforce. Need more? Contact me or Doug@JasonHowell.com

Invest in Gold? 

Nope, not necessary. In the old days – like, “Founding Fathers” old days – we had an agrarian (agricultural-based) economy. Farming, not technology or finance was the hot industry. If you wanted to speculate, you participated in the “futures” contracts, promising to pay a specific price in the future for a commodity (like agricultural products, wheat oil or precious metals). You won by betting right about the pricing direction. Established in 1974, the Commodity Futures Trading Commission (CFTC) protects the public from speculators. On their website, they state that gold is not a safe investment. Although there are many advocates for gold’s stability in volatile times – times we are experiencing now – a well-diversified securities portfolio achieves similar results. You have a well-diversified portfolio comprising large and small US-based companies as well as companies located in developed and emerging countries. Many of you have access to structured notes that serve as a buffer to market fluctuations. You also have allocations to high-yielding cash. Your portfolios were made for these times. 

Spring Check-Ins

Before the end of this month, you will receive notification from Doug about scheduling your “Spring Check-in” with us (April/May). By then we hope you have been able to file an extension or your actual tax returns. If you still need a tax preparer to help you file (or extend), email me: Jason@JasonHowell.com

As per usual, during these check-ins, we want an update on your family and we will share updates about how we can serve them. Have any of your goals changed? Are there financial actions/decisions that you want to consider with help? Let us know. 

On our agenda, we will highlight areas like retirement readiness, asset protection, cash optimization, risk management, tax savings, charitable giving and of course sustainable investment allocation. Mostly we will discuss how we can ensure your financial resilience during times like these. We will also walk through your new online communication and financial documents repository. You can log in here. 

Again, if there is someone you care about who is experiencing hardship from the recent changes, we are open to talking with them too. Just copy us on an email to them. 

I look forward to our next conversation.

Oh and if you are seeking political action, there is a “bellwether” election this November!

Jason J. Howell, CFP®, CPWA®, CSRIC® 

Jason Howell Company is a family wealth management firm that strengthens the finances of families making the transition from first generation success to family wealth. We envision a world where wealthy families give, grow and govern themselves in ways that enrich their local communities. We do this by reducing the fear, isolation and guilt associated with financial success.

Jason J. Howell, CFP®, CPWA®, CSRIC® and Douglas W. Tees, MBA, CFP® CAP®, CBDA  have spent a lot of time in the Washington, DC area, and are aware that many people who are first generation wealth suffer from a kind of "financial imposter syndrome."  Successful entrepreneurs and family businesses are always looking over their shoulder; government contractors worry about the next contract; former Capitol Hill staffers privately wonder if they should "feel bad" for the money they now make. Imposter syndrome is common among people who work for the many corporate headquarters based in this area as well. These feelings get in the way of properly managing family wealth. We empower them to get organized, build a team of advisors and make decisions.

Our typical "first generation wealth" families include dual income parents who work, save and have just the right amount of fun. For long-time, family owned businesses we focus on much family preservation as we do wealth preservation. 

First generation wealth success stories and family business owners realize that they:

• Need to “do something” with the cash in their checking/savings
• Need to eventually diversify their portfolio away from the family business
• Need an investment strategy for “up” and “down” markets
• Need a plan to mitigate market, credit, inflation, and political risks
• Need to start tax planning instead of just tax paying
• Need to be sure they are choosing the right work benefits
• Need to reduce financial miscommunications between family members
• Need to separate business finances from personal finances
• Need to separate family wealth from individual wealth
• Need a plan to provide space for both family and individual philanthropy 
• Need to plan for money while alive and for what happens after death