Stonebridge Wealth Advisors, LLC

A lot of what drives outcomes is below the surface.

For example, in 2022, when the S&P 500 fell more than 18 percent, two-thirds of mutual funds still made capital gains distributions, according to a 2025 Fidelity report.

That is not a headline most investors expect, and it is a reminder that taxable distributions from mutual funds do not always reflect market performance.

What’s really going on:
A mutual fund can distribute taxable capital gains when the manager sells underlying holdings at a profit, even if you don’t sell any shares of the fund.

It can happen in a down year; gains on individual holdings can occur while the overall fund value declines.

Buying a mutual fund late in the year can still leave you responsible for distributions tied to that full calendar year.

Fidelity cites a Morningstar study showing taxes may reduce portfolio returns by up to 2 percent annually on average when not accounted for.

There are ways to manage surprise distributions, including tax-smart account placement, tax-managed funds, and evaluating ETFs, where appropriate.

Remember, mutual funds and ETFs are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.

This is not about avoiding mutual funds. It is about the benefits of working with a financial professional who can show you what mutual funds pay capital gains and what funds are designed to manage payouts. Your tax, legal and accounting professionals can show you how a capital gain will affect your tax situation.

Think “tax-loss harvesting” is only for bad markets or complicated portfolios?

At a simple level, it is this: using certain investment losses to manage taxes while keeping focus on your long-term strategy.

How it works in plain English:

➡️ Sell an investment at a loss, then replace it with a different investment that plays a similar role in the portfolio.

➡️ Use the realized loss to offset realized investment gains.

➡️ If losses exceed gains, up to $3k per year (for married filing jointly) may offset ordinary income on federal taxes, and the rest carries forward.

➡️ Losses can be saved to offset future gains.

➡️ Watch the wash sale rule, which is buying the same or substantially identical security within a 30-day period before or after the “tax-loss harvesting” sale (61 days total).

➡️ We can show you how tax-loss harvesting works. Your tax, legal, and accounting professionals can show you how your decision will affect your tax situation.

The goal is not to chase tax savings. It’s to keep more of the portfolio working over time while staying aligned with the strategy.

Your Social Security claiming age doesn't just affect you. It could affect your spouse's income for life. 👇

If you're the higher earner, the age you claim shapes what your spouse receives as a survivor benefit after you're gone.

Claim at 62, and that smaller payment could follow them for decades.

A few things that surprise people when we walk through the math:

✅ Max monthly benefit in 2026: $2,969 at age 62 vs. $5,181 at age 70. Same person, very different outcome.

✅ Up to 85 percent of benefits may be taxable. A new $6,000 senior deduction helps, but it expires in 2028.

✅ Divorced after 10+ years? You may be eligible for benefits based on your ex-spouse's record without affecting their payments.

The break-even point between claiming early and delaying benefits falls between ages 78 and 81.

With the potential for one spouse in a married couple reaching 90, this decision deserves more than a guess. 💡

Any guess how much you’ll spend on healthcare costs in retirement?

A 2025 study by Fidelity puts the after-tax cost at about $330k for an average retired couple and $165k for a single person, excluding long-term care.

Did you know…

⚠️ The $330k and $165k estimates are after-tax and do not include long-term care.

⚠️ Healthcare costs have typically risen faster than the average rate of inflation, the Fidelity report showed.

⚠️ Costs can vary by medical conditions and where someone lives, so rules of thumb can miss.

A lot of people underestimate this line item, enough that if you haven’t included assumptions for it in your retirement strategy, you should.

It deserves an in-depth financial conversation.

💡 Get this—investors working with a financial professional are about half as likely to report high financial stress (Source: Vanguard 2025). That gap makes sense.

April is National Stress Awareness Month, and the American Psychological Association has repeatedly found that money is a source of stress for many Americans. 😟

Do any of these questions worry you?

❓ Do I have enough for the retirement I’ve imagined?
❓ Do we have enough to support parents or other family members in need?
❓ What if the markets get choppy?

Clarity does not eliminate uncertainty, but it can help manage the mental load.

CFP® Board research from 2025 also points in the same direction; 49 percent of CFP® clients reported less financial anxiety through an advised relationship.

A good strategy does not promise outcomes. It replaces worry with decisions and decisions with a process that holds up when life changes.

What a $5 Frappuccino can teach your teen about building wealth 👇

April is National Financial Literacy Month, and here's a number worth sharing at the dinner table.

If your teen opens a Roth IRA at 18 with $1,000 from a part-time job and adds $1,000 a year, that single account could be worth nearly $500,000 by age 65. Tax-free.

Think they can't save $1,000 a year? Skipping the daily Frappuccino more than covers it. ☕

But the best financial education isn't about the math. It's about real decisions with real consequences.

A few things that actually work:

✅ Hand them cash instead of a credit card for shopping. Let them keep what they don't spend.

✅ Give them a clothing budget for the year. If they blow it by October, that's the lesson.

✅ Have the college money talk before they fall in love with a school. As one counselor put it, "Have the conversation before they buy the hoodie."

✅ With the Roth IRA, you can show them that there are certain rules with certain accounts. For example, to qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Also, tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.

What's one money lesson you wish someone had taught you earlier? 👇



Please consult with a tax and finance professional before making any decisions.

Ever had that moment where everything in the financial picture looks “fine,” but it is still not clear what to do next?

That is what Financial Literacy Month can be: moving from information to decisions.

A few ways it shows up in real life:

💡 Knowing which levers matter most: savings, taxes, and behavior during volatility.

💡 Streamlining overcomplexity, more accounts and products are not always better.

💡Treating retirement as a cash flow strategy, not just about investments.

💡 Preparing for healthcare and longevity costs with intention, not assumptions.

💡 Keeping estate documents, titling, and beneficiaries aligned, so everything works when it matters.

The payoff is clarity, fewer reactive decisions, and a strategy that stays coordinated as life changes.

Working with a financial professional can help translate knowledge into action across the full picture.

Did you know the typical first-time homebuyer is now 40?

That is why more parents are stepping in, nearly 80 percent of Gen Z homeowners say they received family financial help.

If you are considering helping an adult child buy a home, the key question is usually not “should we help,” it’s “how do we structure it?”

Before money moves, pressure test four things:

➡️ Gift, loan, or shared ownership? Each has different implications.
➡️ Protect your strategy. Help them without creating pressure on your own liquidity and goals.
➡️ Protect the family. Prepare such that you’re protected if life changes or the home is sold.
➡️ Keep it fair. Think ahead about sibling dynamics and future gifts.

Most families are surprised by how many options exist and how different the outcomes can be.

If you have done this, what worked best in your situation?

Ever paid a credit card off, then wondered why the credit score barely moved, or even dipped?

Here are 5 tips that might help raise your score—do you check all the boxes?

✔️ Payment history is the biggest factor; one missed payment can outweigh a lot of “good behavior.”

✔️ Credit utilization can change quickly; a common guideline is less than 30 percent, and top scores tend to be in the single digits.

✔️ Paying more than once a month can be beneficial, especially if you pay before the statement closes.

✔️ A credit limit increase can lower utilization quickly, as long as spending stays flat.

✔️ An authorized user setup can help, even without using the card, when added to a well-managed account.

When borrowing is on the horizon, aligning credit moves with the broader financial strategy may help.

We get asked this question a lot: “Can I deduct home office expenses as a self-employed business owner?”

As we always say, please consult your tax, legal, or accounting professional to confirm what’s appropriate for your situation.

Generally, the answer is like most things: It depends.

At a very high level, here are some guidelines we’ve learned when working with tax professionals:

👍 What typically qualifies
A specific area used exclusively and regularly for business, often as the principal place of business or a place to meet clients.

❓ What sometimes counts as an expense
A business shares costs such as rent or mortgage interest, utilities, insurance, and certain maintenance or repairs associated with the workspace.

👎 What usually does NOT qualify
A space that is also used personally, and expenses tied to parts of the home that are not part of the business use area.

Because the details matter, maintaining good records and having a quick conversation with a tax professional can help determine what applies and keep decisions aligned with the broader financial strategy.

Did you know that starting in 2026, if you're 50 or older with prior year wages over $150k, you must place catch-up contributions to a Roth IRA account?

That’s a big change, and here are 5 things you need to know:

1️⃣ This applies to 401(k), 403(b), 457(b) plans.
2️⃣ When catch-up contributions are put into a Roth account, you pay taxes on that money today, but qualified withdrawals and earnings can be tax-free later if requirements are met.
3️⃣ The 2026 catch-up limit is $8,000 for 50+, and a “super catch-up” limit of $11,250 may apply for ages 60 to 63 if the plan allows.
4️⃣ Regular contributions can still be elected as traditional pre-tax or Roth when a plan offers both options, while catch-up contributions may be Roth-only for those who meet the wage threshold.
5️⃣ The threshold is based on wages from the year before, specifically prior year F**A wages, so 2025 wages determine 2026 treatment.

The change eliminates what used to be a choice. For people with higher taxable income approaching retirement, this affects the approach to contribution timing and broader Roth conversion strategies.

Let’s talk if you have questions about how this could impact you. Your tax, legal, or accounting professional may also have insights.

Remember, with most retirement accounts, once you reach age 73, you must begin taking required minimum distributions. Roth accounts are the exception. Withdrawal penalties may apply if you take the money before age 59½. Roth IRA distributions must meet a 5-year holding requirement and occur after the account holder reaches age 59½.

Tax legislation can be complex, but its impact is often concentrated in a handful of lines.

The One Big Beautiful Bill Act highlights several changes that can impact household decisions in 2026, especially in high-tax states.

Key Facts to Know:

1️⃣ The State and Local Tax (SALT) cap: Increased to $40,000, begins to phase out above $500,000 of income, then reverts to $10,000 in 2030.
2️⃣ Standard Deduction: Made permanent and increased to $16,100 single and $32,200 joint, indexed for inflation after 2025.
3️⃣ Estate and Gifting: Lifetime exclusion increases to $15 million per person and $30 million for couples, indexed for inflation.
4️⃣ Charitable Giving: A permanent charitable deduction returns for non-itemizers, plus new limits and thresholds for itemizers, including a 0.5 percent Adjusted Gross Income floor and a cap for top bracket households.

When rules change, households that take a proactive approach and coordinate with their tax, legal, and accounting professionals may have a better understanding of how new rules affect them. 📌