The Dilligent Investor - December 2024

Welcome to the December Edition of The Dilligent Investor.

Happy Thanksgiving from our family to yours! We hope your celebrations were filled with laughter, delicious food, loved ones, laughter, and plenty of delicious food. This year, I decided to take on a new challenge: smoking my first turkey. The family assured me it was a hit, though I can’t help but think their praise may have been a little too enthusiastic. One thing everyone agreed on was the pecan pie—an undeniable triumph to cap off the day.

November was an eventful month, both personally and professionally. We had a great time with many of you at our annual client event, cheered on the LSU Tigers at my first SEC

football game, and I ended the month taking Level II of the CFA exam, which was both a challenge and an exciting milestone.

As we reflect on the past year, we’re grateful for the trust you have placed in us. It’s been an incredible journey stepping into the role of CIO and Head of Planning at Aucoin Wealth Management, and I’ve truly enjoyed helping our clients create, manage, and protect their wealth.

Let’s finish 2024 on a high note together. Whether you’re planning for 2025, reviewing investments, or just celebrating the holidays, we’re here to support you every step of the way. Here’s to a successful and joyful new year ahead!

Financial Tip of the Month: Setting SMART Financial Goals for 2025

As we approach the new year, take time to craft financial goals using the SMART approach, but with a financial planning twist. Here’s how to make your goals work for you:

- Significant: Focus on goals that matter most, like saving for a home, building a retirement nest egg, or paying off high-interest debt. Prioritize what will make the biggest positive impact on your financial health.

- Meaningful: Tie your goals to your values and long-term dreams. For instance, create an education fund for your children or plan for early retirement to pursue personal passions.

- Achievable: Set realistic targets. Instead of saving $50,000 in one year, aim to save 15-20% of your income, or start smaller with an emergency fund equal to three months of expenses.

- Rewarding: Celebrate milestones along the way. Reward yourself when you reach a savings target or reduce debt, reinforcing positive financial habits.

- Timely: Set deadlines. For example, aim to pay off a credit card by June 2025 or fully fund your IRA by the tax deadline in April 2025.

Year-End Financial Checklist: Before the clock strikes midnight on December 31, tackle these critical financial tasks:

1. Maximize Workplace Retirement Contributions: If possible, contribute the maximum to your 401(k) or 403(b) plans to reduce taxable income and grow retirement savings.

2. Use Unused PTO or FSA Funds: If your benefits don’t roll over, schedule time off and spend flexible spending account (FSA) funds on eligible medical expenses before they expire.

3. Estimate 2024 Taxes: Email your CPA to calculate potential tax liabilities, so you can allocate funds now for April.

4. Save Your Year-End Bonus: Apply the 90/10 rule: save 90% of any year-end bonus and use the remaining 10% for a treat or experience.

5. Control Holiday Spending: Be mindful of spending during the holiday season. Address debt, fund your emergency savings, or meet other financial priorities before splurging.

6. Finalize Charitable Giving: Donations made before December 31 can be tax-deductible, so give with purpose and keep records for tax filing.

Start planning now and set yourself up for financial success in 2025. If you'd like a personal review of your financial plan, schedule time with us today to map out your goals!

1-Minute Market Update

The overall market in November showcased resilience, reflecting a shift in investor sentiment following October's uncertainty. The month began with volatility surrounding global events, but a surprising election outcome and a Federal Reserve rate cut provided a boost to equities. Economic data, including inflation easing to manageable levels and steady GDP growth, painted a cautiously optimistic picture. Market participants are now focusing on potential policy shifts under new leadership

and their implications for 2025, with a general expectation of stability and moderate growth.

Stocks saw significant movement, driven by strong performances in technology and small caps. The Dow gained an impressive 6.8%, and the S&P 500 rose 5.3%, fueled by investor confidence in consumer spending and corporate earnings resilience. The tech-heavy NASDAQ climbed 5.36%, supported by positive earnings from major players like Nvidia. International equities, however, lagged behind, with the MSCI EAFE index down 1.46%, reflecting geopolitical pressures and concerns in Asian markets. Going forward, the focus will be on how corporate fundamentals align with macroeconomic tailwinds and sector-specific opportunities.

The bond market experienced a more subdued recovery, with the S&P U.S. Aggregate Bond Index posting a 1.15% gain in November. Treasury yields initially surged following the Fed's 0.25% rate cut but stabilized as investors sought havens amid geopolitical uncertainty. The potential for further rate cuts in 2025 could provide a tailwind for fixed-income investments, while continued vigilance will be needed to navigate credit quality and duration risks. As we enter December, the bond market remains a critical element in diversified portfolios, offering balance and income potential amid an evolving economic landscape.

Market Returns Year-to-Date

Stock Indices as of 11/30/2024

? S&P 500 Index: 26.47%

? Dow Jones Industrial: 19.16%

? Russell 2000 (Small Cap): 20.11%

? NASDAQ (Tech): 28.02%

? MSCI EAFE (International): 3.56%

Bond Indices as of 11/30/2024

? S&P U.S Aggregate Bond Index: 2.93%

Recommended Reads

How To Budget Better And Pay Off Debt Faster In 2025: According to Experian, the average American’s debt is $104,215 including credit cards, mortgages, auto loans, and student loans. If budgeting feels dreadful and boring, you're not alone—but it doesn’t have to stay that way. A few simple shifts in how to budget better can turn it into a tool that empowers your financial goals. (Forbes)

Expect Secure 3.0 and a Major Tax Bill Next Year: A tax bill will likely be fast-tracked since Republicans control the White House and Congress, former Labor official Preston Rutledge says. Expect a clamor for revenue-raisers to offset the $4.5 trillion renewal of the 2017 tax cuts. Efforts to derail the DOL fiduciary rule will likely not be part of the budget process. (Think Advisor)

Open enrollment tips: Don't overlook these three key benefits: Here are two good reasons not just to check the same boxes as last year: First, your company might be rolling out new benefits, and second, your own life might be changing in important ways. So do a little fortune-telling and figure out what Future You might require. (Reuters)

12 Best Free Online Personal Finance Courses: If you want to learn how to make smart financial decisions, save more and eliminate debt, you're in luck. Today there are plenty of free online personal finance classes to sharpen your money-management skills. (US News)

10 Habits Happy Retirees Have In Common: What people do with that money can often be the difference between a happy and unhappy retirement. (Forbes)

How to optimize your holiday travel budget on ‘Travel Tuesday’: If you still haven’t booked your holiday travel plans, take note: Prices tend to rise the closer you get to the days you’re looking to travel. (CNBC)

In 10 Seconds, An AI Model Detects Cancerous Brian Tumors Often Missed During Surgery: Researchers have developed an AI-powered model that can determine in 10 seconds during surgery if any part of a cancerous brain tumor that could be removed remains. (Good News Network)

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