The Spectrum Financial Group, Inc.

What Is Diversification? Virtually every investment has some type of risk associated with it. The stock market rises and falls. An increase in interest rates can cause a decline in the bond market. No matter what you decide to invest in, risk is something you must consider. One key to successful investing is managing risk while maintaining the potential for adequate returns on your investments. One of the most effective ways to help manage your investment risk is to diversify. Diversification is an investment strategy aimed at managing risk by spreading your money across a variety of investments such as stocks, bonds, real estate, and cash alternatives; but diversification does not guarantee a profit or protect against loss. The main philosophy behind diversification is really quite simple: “Don’t put all your eggs in one basket.” Spreading the risk among a number of different investment categories, as well as over several different industries, can help offset a loss in any one investment. Likewise, the power of diversification may help smooth your returns over time. As one investment increases, it may offset the decreases in another. This may allow your portfolio to ride out market fluctuations, providing a more steady performance under various economic conditions. By potentially reducing the impact of market ups and downs, diversification could go far in enhancing your comfort level with investing. Diversification is one of the main reasons why mutual funds may be so attractive for both experienced and novice investors. Many non-institutional investors have a limited investment budget and may find it challenging to construct a portfolio that is sufficiently diversified. For a modest initial investment, you can purchase shares in a diversified portfolio of securities. You have “built-in” diversification. Depending on the objectives of the fund, it may contain a variety of stocks, bonds, and cash vehicles, or a combination of them. Whether you are investing in mutual funds or are putting together your own combination of stocks, bonds, and other investment vehicles, it is a good idea to keep in mind the importance of diversifying. The value of stocks, bonds, and mutual funds fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost. https://lnkd.in/eyFHUiTP

Long-term care insurance does much more than just pay for care. #GetLongTermCareInsurance #LTCI

Please welcome our newest Associate, Tariq “Coop” Al-Nasir! With a distinguished career spanning over 15 years in coaching, mentorship, and financial management, Coop brings a wealth of experience to The Spectrum Financial Group. As a dedicated Life Insurance Agent, he is passionate about helping individuals and families secure their financial futures with tailored insurance solutions. Before joining The Spectrum Financial Group, Coop spent over a decade as a Life Coach and Mentor. His commitment to leadership and empowerment has been a driving force throughout his career. Coop is joining our team, All Things Services, LLC with Rodney Nichols and his team of Associates. A proud veteran of the United States Armed Forces, Coop served honorably for over a decade, demonstrating discipline, adaptability, and leadership in high-pressure environments. His service background instilled in him a deep commitment to integrity, teamwork, and excellence—values that guide his work in the financial industry today. Coop is dedicated to helping clients navigate the complexities of life insurance, ensuring they have the right coverage to protect what matters most. His diverse background in mentorship, finance, and service makes him a trusted advisor and advocate for those seeking financial security and peace of mind.

At The Spectrum Financial Group, we believe that success is built through collaboration and teamwork. When we work together, we make dreams happen! If you’re interesting in learning if you can plan ahead and retire in the zero percent tax bracket, we’ve got the knowledge and strategies to help you get there. ?? Let’s partner up and create a plan that works for YOU. Call us today to find out how we can guide you toward tax-free retirement!

How Are Mutual Funds Taxed? Many people have heard the Benjamin Franklin quote, “In this world nothing is certain but death and taxes.” Mutual fund taxes can be onerous. However, if you understand the complexities of mutual fund taxes and are prepared when tax season comes around, you may be able to lessen the blow. Dividends and Capital Gains The first thing to remember is that you generally must report any mutual fund distributions as income. Even if you reinvest your profits, the federal government still views this as personal income. Your mutual fund will send you a Form 1099-DIV describing what earnings to report on your income tax return. There are two main ways that mutual funds are taxed: dividends and capital gains. Dividends represent the net earnings of the fund. Qualified dividends, with some exceptions, are dividends received from domestic and foreign corporations after 2002. Foreign dividends must be securities that are traded on U.S. exchanges or have IRS approval. Capital gains are profits from investor trading or distributions given to shareholders after revenue is taken in from the fund manager’s sales of securities. Provisions in the tax law allow you to pay lower capital gains taxes on the sale of assets held more than one year. These are referred to as “long term” capital gains. Long-term capital gains (assets held for more than one year) and qualified dividends (dividends that meet the requirements to be taxed as capital gains), are taxed at either the 0%, 15%, or 20% rate (or breakpoint). Short-term gains — those resulting from the sale of assets held for one year or less — are taxed at your ordinary income tax rate. Higher-income taxpayers should be aware that they may be subject to an additional 3.8% Medicare unearned income tax on net investment income (unearned income includes dividends) if their adjusted gross income exceeds $200,000 (single filers) or $250,000 (married joint filers). This means that if you’ve been buying shares in a stock or mutual fund over the years and are considering selling part of your holdings, your tax liability could be significantly impacted by the timing of your sale. https://lnkd.in/gWq566nd

Happy Presidents’ Day 2025! ???? Today, we honor the legacy of America’s presidents, especially George Washington and Abraham Lincoln, whose birthdays inspired this federal holiday. Observed on the third Monday of February, Presidents’ Day is a time to reflect on the leadership and contributions of those who have shaped our nation’s history. Whether you’re enjoying a day off, taking advantage of holiday sales, or simply appreciating the ideals of democracy, take a moment to recognize the impact of our country’s leaders. Who’s your favorite U.S. president and why? Let’s discuss! #PresidentsDay #History #USA

Today, we want to take a moment to express our appreciation for the incredible partners and clients who make our journey so rewarding. Your trust, collaboration, and support mean the world to us, and we’re grateful for the opportunity to grow and succeed together. Wishing you a day filled with appreciation, connection, and maybe even a little chocolate! #HappyValentinesDay #Gratitude #Partnership #Collaboration

Today is #WorldCancerDay 2025! ??? ?? What is World Cancer Day? ?? A global initiative to raise awareness and education about cancer. ?? A call to action for individuals, communities, and governments to make a difference. ?? A recognition of the value of people-centered care and support. Together, we can create a future where everyone impacted by cancer gets the care they need. ?? #UnitedByUnique #CancerAwareness #WorldCancerDay2025

How Sequence of Returns Can Affect Your Retirement Savings! Did you know that the sequence in which you earn investment returns can affect how much you end up with? https://lnkd.in/e8bW8mcY

WIFS Indiana is hosting our Cultivating Dynamic Trusted Friendships in the Workplace Panel Discussion on February 5th. This is an OPEN event and not just for WIFS Indiana Members. RSVP with the link below! We'll dive into one of the most essential aspects of career success: building and nurturing trusted relationships in the workplace. Rebecca Lomax ?? Panel Discussion: This is more than just a talk about leadership—it's about how to create genuine, trusted relationships that can propel your career forward. Join a group of trailblazing women as they share their experiences, strategies, and advice on building credibility, fostering trust, and navigating the complex dynamics of the workplace.