Financial Wellness Archives

FedNow: What Is It and How Does It Affect Me?

Posted on March 11, 2025March 12, 2025 by elaina

What is FedNow?

After nearly 10 years of research across several committees, FedNow was officially launched by the Federal Reserve on July 20, 2023, FedNow is the instant digital money transfer tool introduced by the Federal Reserve. FedNow is not replacing existing digital money transfer tools like PayPal, Venmo, CashApp, Google Pay or Zelle. It is an alternative that your bank may choose to participate in.

Is It a Digital Currency?

No. FedNow is not a digital currency and is not intended to replace the US Dollar. The Federal Reserve has not made a decision on whether or not to pursue a central bank digital currency (CBDC). In March 2023, Chair Powell expressed that a CBDC is “something we would certainly need Congressional approval for.”

Why Did the Federal Reserve Roll Out FedNow?

Stemming from a public consultation paper from 2013, the Federal Reserve launched the Faster Payments Task Force (FPTF) in 2015. The FPTF was tasked with identifying and assessing alternative methods for safe and ubiquitous instant payment capabilities. The results of the FPTF findings launched the creation of the Governance Framework Formation Team which made way for the US Faster Payments Council to be established in 2018.

Come 2017, FPTF’s final report requested the Federal Reserve develop a 24-hour, 7 day a week, 365 day per year settlement service to support instant payments plus explore and assess the need for other operational roles in faster payment. As a result, the US Treasury recommended “the Federal Reserve move quickly to facilitate a faster retail payments system, such as through the development of a real-time settlement service, that would also allow for more efficient and ubiquitous access to innovative payment capabilities”.

This prompted the Board to publish a request for comment in 2018. Next was a public notice to be published in August 2019, announcing Reserve Banks would develop FedNow. Finally on August 6, 2020 the Board published a final notice with details on the features at launch, which was initially targeted for 2023 of 2024.

How Does FedNow Work?

FedNow is an instantaneous transfer directly to/from your bank account with funds transferred within seconds. It can be used 24/7, even on days that banks are closed. There are some limitations though, this service is only available for money transfers within the United States and the default limit on transfers is $100,000. Participating banks are allowed to raise their transfer limit up to $500,000. FedNow is a real-time settlement system, and payments are irreversible.

Does My Bank Use FedNow?

FedNow is optional for banks to opt in. You can use this link to see if your bank or credit union participates: https://www.frbservices.org/financial-services/fednow/organizations. As of February 2025, over 1200 local, regional, and national banks are part of the FedNow service.

Resources:

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Credit Freeze vs Lock: Which One Should You Choose?

Posted on March 11, 2025March 12, 2025 by elaina

When it comes to protecting your financial well-being, safeguarding your credit is a critical step. Whether you’ve been a victim of identity theft or just want to add an extra layer of security, you may have heard about locking and freezing your credit. But what’s the difference, and which option is best for you?

Why Choose a Credit Freeze vs Lock?

Both locking and freezing your credit serve the same fundamental purpose: preventing unauthorized access to your credit report. This can help stop identity thieves from opening fraudulent accounts in your name. However, while these tools are similar, they aren’t identical, and understanding their differences can help you make the best choice for your situation.

Credit Freezes: Federal Protection for Your Credit

A credit freeze is a powerful, federally regulated tool that restricts access to your credit report. Here’s what you need to know:

Cost: Free, thanks to federal law.
How It Works: You must request a freeze from each of the three major credit bureaus — Equifax, Experian, and TransUnion. This request can be done online, by phone, or by mail. Once your credit is frozen, lenders and creditors cannot access your report, making it much harder for identity thieves to open accounts in your name.
How to Unfreeze: You can temporarily or permanently lift a freeze at any time, but it requires a PIN or password and may take a little longer to process compared to a lock.

A credit freeze is a great option if you’re looking for a strong, no-cost solution to prevent fraudulent activity on your credit file.

Credit Locks: More Flexibility with a Possible Fee

A credit lock functions similarly to a freeze but offers more convenience:

Cost: Some credit bureaus offer credit locks as part of a paid service.
How It Works: You can lock and unlock your credit report through the credit bureau’s app or online portal, giving you more control if you need to grant temporary access.
How to Unlock: Unlike a freeze, which requires a PIN and a manual request, a credit lock allows for near-instant access restoration.

If you frequently need to allow access to your credit report — for example, when applying for loans or credit cards — a lock may be a more convenient choice.

Credit Freeze vs Lock: Which One Should You Choose?

Go with a credit freeze if you’re looking for a free and secure way to block all access to your credit report. It’s a great long-term option for those who don’t need frequent access.
Opt for a credit lock if you prefer the flexibility of quickly unlocking and locking your credit through an app. Just keep in mind that some credit bureaus may charge for this service.

Take Control of Your Credit Security

At BentOak Capital, we believe in empowering you to make informed financial decisions. Whether you choose a credit freeze or a credit lock, the most important step is ensuring your credit remains protected against fraudulent activity.

If you’re unsure which option is right for you or have questions about other financial security strategies, we’re here to help. Contact BentOak Capital today for expert guidance on protecting your financial future.

Navigating Market Uncertainty: The Value of Staying Invested

Posted on March 10, 2025March 12, 2025 by elaina

In today’s market environment, we’re witnessing a notable disconnect between investor sentiment and actual market performance. Warren Buffett’s timeless wisdom to be “fearful when others are greedy and greedy when others are fearful” remains particularly relevant. Despite numerous economic and political concerns creating market anxiety, historical evidence continues to demonstrate that maintaining investment discipline through volatility ultimately rewards patient investors.

Despite widespread worries about economic conditions, potential tariff impacts, and interest rate uncertainties, many fundamental market drivers remain robust. As an example, we saw tremendous earnings growth in 2024 (especially in the fourth quarter). Even with the recent developments, many analysts are looking for growth to continue, albeit more modest. During such periods of uncertainty, successful investing isn’t about reacting to daily market fluctuations but rather maintaining a strategically diversified portfolio that is aligned with your financial plan and personal risk tolerance. How might investors maintain proper perspective amid market volatility and alarming headlines?

Earnings Have Historically Tracked the Economy

market uncertainty the stock market and earnings

Recent data from the AAII Investor Sentiment Survey indicates bearish sentiment has exceeded bullish views by up to 19% – representing the highest level of pessimism since late 2023 when recession fears were prevalent. As illustrated in the chart, these sentiment patterns can shift dramatically over relatively short periods.

Sentiment Surveys Reveal Growing Investor Concerns

A significant disparity often exists between market perception and actual performance. Despite increasing negative sentiment and day-to-day volatility, major equity indices have delivered positive returns over recent months. This reinforces the observation that investor sentiment frequently serves as a contrarian indicator. As Buffett suggests, market opportunities typically emerge when investor anxiety peaks.

This pattern exists because emotional reactions can transform rapidly and don’t necessarily reflect future market drivers accurately. Markets have repeatedly rallied despite widespread pessimism – following the 2008 financial crisis in what many called an “unloved bull market,” during 2017’s trade tension concerns, after the 2020 pandemic shock, following 2022’s bear market decline, and numerous other instances. Paradoxically, periods of extreme investor confidence often warrant greater caution.

Emotions and Staying Invested are Among the Most Important Principles of Investing Across All Cycles

Headlines about investor sentiment should be considered within their proper historical context. Similarly, we should approach our own portfolio evaluations with appropriate perspective, finding reassurance that well-constructed financial plans can withstand changing market conditions while remaining focused on long-term objectives, even when recent market movements create discomfort.

Several economic fundamentals continue showing strength: unemployment remains at historically low levels, manufacturing activity is reviving for the first time since 2022, business leadership confidence is improving, interest rates are lower than recent high levels, and productivity metrics have strengthened over the past year. Simultaneously, equity valuations are approaching historic highs, suggesting potential challenges for broad market indices over extended timeframes.

When confronted with contradictory market signals alongside pessimistic investor sentiment, attempting to time market entries and exits or completely abandoning market participation isn’t advisable. Instead, these circumstances highlight the critical importance of thoughtful portfolio construction. The chart demonstrates the intrinsic relationship between risk and reward, illustrating why these factors must be managed in tandem. If elevated valuations indicate increased risk within certain asset classes or sectors, strategic allocation adjustments toward less sensitive or correlated securities may be warranted.

When executed effectively, a well-balanced mix of stocks, bonds, and other asset classes helps navigate various economic and market conditions, optimizing risk management and return potential while staying aligned with financial goals. Additionally, market corrections can present valuable opportunities, including:

Allocating cash or money market funds to high-quality bonds at interest rates not seen in over 17 years.
Rebalancing portfolios to acquire strong investments at more attractive valuations.
Utilizing tax-loss harvesting strategies to offset future capital gains.
Considering Roth conversions to take advantage of lower asset values and lock in historically low income tax rates.

Maintaining this disciplined approach while developing appropriate strategies underscores the importance of partnering with a trusted financial advisor and reviewing your financial plan.

For these reasons, perhaps no investment principle holds greater importance for long-term investors than maintaining market exposure. Historical evidence consistently demonstrates that remaining invested across market cycles represents one of the most effective wealth-building approaches over years and decades. Regardless of what triggers short-term market uncertainty, attempting to time market entries and exits proves challenging and frequently produces counterproductive results.

The chart illustrates that over the past 25 years, maintaining positions through market declines has consistently outperformed strategies involving temporary market exits. While past results cannot guarantee future outcomes, the rapid shifts in investor sentiment explain why disciplined investors frequently achieve superior results.

Maintaining Market Exposure Through Volatility Yields Superior Results

It’s natural to feel concerned about market volatility and economic uncertainty, especially with the way they are portrayed in the news. However, reacting emotionally to market “noise” can lead to impulsive decisions that may negatively impact long-term financial success. History has shown that staying informed, following a well-structured financial plan, and maintaining disciplined investment principles can lead to more favorable financial outcomes.

Support During Market Uncertainty

Our team is here for you in both stable and volatile market conditions. If you have any questions, please don’t hesitate to reach out to your advisor at BentOak Capital. If you’re not currently working with us and aren’t having these important conversations with your advisor, we would welcome the opportunity to speak with you.

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BentOak Capital [“BentOak”]), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of its services should be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. Please remember that it remains your responsibility to advise BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.

A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request at www.bentoakcapital.com/contact-us. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement.

Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.? It should not be assumed that your account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your accounts; and, (3) a description of each comparative benchmark/index is available upon request.

Copyright (c) 2025 Clearnomics, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company’s stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security–including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

Biblically Responsible Investing (BRI): An In-Depth Explanation

Posted on March 6, 2025March 6, 2025 by elaina

Investing is an essential part of financial stewardship, and many individuals seek to align their investment choices with their values and beliefs. For Christians, this can mean investing in a way that honors biblical principles and promotes moral integrity. Biblically Responsible Investing (BRI) is an investment strategy that seeks to honor God by aligning financial decisions with biblical teachings. BRI involves selecting investments that promote Christian values while avoiding companies or industries that engage in activities contrary to those values.

Defining Biblically Responsible Investing

Biblically Responsible Investing is an approach to financial management that integrates biblical ethics with investment decisions. It is often compared to other values-based investing strategies such as Socially Responsible Investing (SRI) and Environmental, Social, and Governance (ESG) investing, but it is distinct in its foundation upon biblical morality rather than secular ethical frameworks.

BRI seeks to ensure that a Christian investor’s portfolio reflects their faith and biblical convictions by avoiding companies involved in practices that conflict with Christian teachings while actively supporting those that promote godly principles.

Principles of Biblically Responsible Investing

There are several key principles that guide Biblically Responsible Investing:

Avoiding Investments in Immoral Activities: BRI investors seek to exclude companies that are involved in activities contrary to biblical teachings. This includes businesses that profit from:
- Abortion (e.g., funding, promoting, or supporting abortion providers)
- Pornography (e.g., adult entertainment industry or explicit media production)
- Alcohol, Tobacco, and Gambling (e.g., companies that manufacture or distribute these products)
- Unethical Business Practices (e.g., exploitative labor, fraud, human trafficking, or corruption)
Investing in Companies That Promote Biblical Values: Beyond avoiding negative investments, BRI also encourages investing in companies that actively promote:
- Family values and ethical business practices
- Respect for human dignity and life
- Stewardship of creation and responsible environmental care
- Charitable giving and corporate responsibility
Stewardship and Wise Financial Management: The Bible teaches that financial resources are entrusted to individuals by God, and they should be managed wisely. BRI aligns with the biblical concept of stewardship (Genesis 1:28, Matthew 25:14-30), ensuring that investments are handled prudently to honor God and support ethical business practices.
Engaging with Companies for Positive Change: Some BRI investors believe in engaging with businesses to encourage them to adopt more biblically responsible practices. This could include:
- Shareholder advocacy (e.g., voting on shareholder resolutions that align with Christian values)
- Constructive dialogue with corporate leadership about ethical concerns
- Encouraging transparency and corporate accountability

Biblical Foundation of Biblically Responsible Investing

Several biblical passages support the principles behind BRI:

1 Corinthians 10:31 – “So whether you eat or drink or whatever you do, do it all for the glory of God.”
Proverbs 3:9 – “Honor the Lord with your wealth, with the first fruits of all your produce.”
Colossians 3:23-24 – “Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ.”
Matthew 6:19-21 – “Do not lay up yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal.”
2 Corinthians 6:14 – “Do not be unequally yoked with unbelievers. For what partnership has righteousness with lawlessness? Or what fellowship has light with darkness?”

These verses emphasize the importance of ensuring that all aspects of life, including financial investments, reflect a commitment to honoring God.

How Biblically Responsible Investing Works

1. Screening Companies

BRI employs negative screening to filter out companies that engage in immoral or unethical practices and positive screening to find businesses that promote Christian values. Screening criteria may include:

Moral concerns (e.g., abortion, pornography, gambling, substance abuse industries)
Business ethics (e.g., fair wages, responsible leadership, environmental stewardship)
Community impact (e.g., charitable giving, social responsibility, ethical supply chains)

2. Investing in Faith-Based Funds

Many financial firms offer faith-based mutual funds or ETFs that follow BRI principles. These funds actively select stocks that align with biblical principles while excluding those that conflict with Christian values.

3. Shareholder Advocacy and Influence

Rather than simply avoiding unethical companies, some BRI investors engage with businesses to encourage them to operate more ethically. They may:

Vote on shareholder resolutions
Participate in corporate discussions
Advocate for policies that align with Christian ethics

4. Aligning Personal and Church Finances with Biblical Values

BRI is not only for individuals but also for churches, ministries, and Christian organizations seeking to ensure that their financial resources align with biblical principles. Many Christian institutions apply BRI principles to their endowments and retirement plans.

The Impact of Biblically Responsible Investing

BRI seeks to transform the financial industry by demonstrating that investors can achieve both strong financial returns and moral integrity. Some of its key impacts include:

Encouraging Ethical Business Practices: By directing investments toward companies with high ethical standards, BRI fosters a business culture that values integrity, transparency, and social responsibility.
Strengthening Christian Witness in the Marketplace: BRI investors use their financial power to promote Christian principles in business, reinforcing the message that faith should influence all aspects of life.
Promoting Long-Term Sustainability: Many businesses that align with BRI principles also practice sustainable and responsible management, leading to long-term financial stability and ethical success.
Empowering Believers to Invest with Purpose: BRI helps Christians make financial decisions that reflect their faith, allowing them to invest with confidence, knowing their money is being used in a way that honors God.

Challenges and Criticisms of BRI

Despite its advantages, BRI faces some challenges:

Limited Investment Options: Some critics argue that filtering out many companies reduces investment opportunities and diversification.
Subjectivity in Screening: Different Christian groups may have varying definitions of what qualifies as “biblically responsible,” leading to inconsistency.
Potential for Lower Returns: Some investors worry that avoiding large, profitable industries (e.g., alcohol, gambling, entertainment) may impact financial performance. However, studies suggest that ethical investing can still yield competitive returns.
Measuring True Impact: Ensuring that a company genuinely upholds Christian values can be challenging, as corporate practices may not always be transparent.

Conclusion

Biblically Responsible Investing is an investment philosophy that integrates faith and finance, ensuring that investment decisions reflect Christian principles. By avoiding immoral industries, supporting ethical businesses, and engaging in shareholder advocacy, BRI allows believers to honor God through their financial decisions. While challenges exist, the growing availability of faith-based investment options provides Christians with meaningful opportunities to steward their resources biblically.

Ultimately, BRI is about more than financial gain. It is about investing with purpose, demonstrating faith in action, and advancing God’s kingdom through wise financial stewardship. If you are interested in learning more about biblically responsible investing, please give us a call today!

Top Risk Management Strategies for Families

Posted on February 26, 2025March 18, 2025 by elaina

For high-net-worth families and trusts, risk management is about more than just protecting assets — it’s about securing financial stability for generations to come. Without a proactive strategy, even the most substantial wealth can be eroded by market volatility, tax inefficiencies, legal disputes, and family mismanagement. Here are the top risk management strategies to safeguard your family’s financial future.

1. Establish a Comprehensive Estate Plan

A well-structured estate plan ensures that wealth is preserved and transferred according to your wishes. Key components include:

Trusts: Protect assets from estate taxes, creditors, and potential family disputes while ensuring continuity in financial management.
Wills: Clearly define how assets will be distributed to avoid probate delays and legal battles.
Power of Attorney & Healthcare Directives: Ensure decisions are made by trusted individuals in the event of incapacity.
Regular Reviews: Estate plans should be updated periodically to reflect changes in tax laws, family dynamics, or financial goals.

2. Diversify Investment Portfolios

Market volatility can significantly impact family wealth, making diversification a key risk management strategy. Consider:

Investment Correlation: Spread investments across equities, bonds, real estate, and alternative assets to reduce exposure to any single market event.
Income Correlation: Explore opportunities to create additional income streams uncorrelated to your primary business.
Liquidity Management: Maintain a balance between liquid assets and long-term investments to provide flexibility during economic downturns.

3. Implement Tax-Efficient Strategies

High-net-worth families often face complex tax obligations, making strategic tax planning essential.

Gifting Strategies: Utilize annual gift tax exclusions and family trusts to transfer wealth efficiently.
Charitable Giving: Donor-advised funds and charitable trusts can reduce taxable income while supporting philanthropic goals.
Tax-Advantaged Accounts: Maximize contributions to retirement accounts, 529 plans, and other tax-deferred vehicles.
State & International Tax Considerations: For families with multi-state or global assets, careful structuring can minimize tax liabilities.

4. Leverage Insurance for Asset Protection

Insurance plays a vital role in protecting family wealth from unforeseen events:

Life Insurance: Provides liquidity for estate taxes and income replacement.
Liability Insurance: High-net-worth individuals are often targets for lawsuits; umbrella policies can provide additional coverage.
Long-Term Care Insurance: Helps cover medical expenses in later years without depleting family assets.
Property & Casualty Insurance: Ensures real estate, collectibles, and valuables are properly protected.

5. Establish a Strong Family Governance Structure

Wealth mismanagement and family disputes are common risks in high-net-worth families. A clear governance framework can help avoid conflicts.

Family Constitution: Define values, financial goals, and succession plans to guide decision-making.
Regular Family Meetings: Promote transparency and alignment on financial matters.
Financial Education: Equip future generations with financial literacy to maintain and grow family wealth.
Trusted Advisors: Work with experienced financial planners, attorneys, and CPAs to guide wealth management strategies.

6. Protect Against Cybersecurity and Identity Theft

With growing digital threats, protecting financial and personal information is crucial.

Cybersecurity Measures: Use strong passwords, multi-factor authentication, and encrypted communication.
Fraud Monitoring: Regularly review financial statements and set up alerts for unusual activity.
Family Training: Educate family members on phishing scams and online security best practices.
Digital Asset Planning: Include digital accounts and cryptocurrencies in estate plans.

7. Stress Test Your Financial Plan

Conducting regular stress tests ensures your wealth management strategy is resilient under various economic and life scenarios.

Scenario Planning: Evaluate how different market conditions, tax changes, or economic downturns could impact your wealth.
Liquidity Analysis: Ensure access to cash reserves for emergencies or opportunities.
Contingency Planning: Develop action plans for potential business, investment, or family-related risks.

Risk Management Strategies to Assist Families

Effective risk management strategies for high-net-worth families requires a proactive and strategic approach. By integrating estate planning, investment diversification, tax efficiency, insurance protection, strong governance, cybersecurity, and financial stress testing, families can secure their wealth for future generations.

If you’re ready to develop a tailored risk management plan, BentOak Capital’s experienced advisors can help guide you through every step. Contact us today to start protecting your family’s financial future.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

The Investment Proxy Effect: Blockchain & Bitcoin

Posted on February 24, 2025March 12, 2025 by elaina

I get asked about cryptocurrency a lot. From a compliance standpoint, I’m not able to provide specific investment recommendations on cryptocurrency. But I do think I can offer some insight into why people are so captivated by it. Specifically, I believe much of the enthusiasm around Bitcoin isn’t just about digital currency – it’s about blockchain technology and all the possibilities it presents.

But what exactly is blockchain?

At its core, blockchain is a type of database – a digital ledger that records transactions in a secure and decentralized manner. Unlike traditional databases, which are controlled by a single entity, blockchain is distributed across a network of computers. Each transaction is verified by multiple participants (or nodes) in the network before being added as a new “block” in a continuous chain of data. This makes it nearly impossible to alter past records, providing security and transparency. Because of these properties, blockchain has the potential to revolutionize industries far beyond finance.

Here are some of the ways blockchain could reshape different sectors:

Secure Medical Records – Patient data could be stored on a decentralized ledger, ensuring privacy and security while allowing seamless access for authorized healthcare providers.
Data Control – Individuals could own and control their personal data rather than relying on centralized entities that monetize it.
Safe Transactions – Blockchain enables transparent, tamper-proof transactions across industries like supply chain logistics, real estate, and intellectual property.
Voting Systems – Election integrity could be significantly improved through decentralized, verifiable voting mechanisms.

People love these ideas. They recognize the game-changing potential of blockchain. But there’s a problem:

There’s no easy way to invest in “blockchain” itself.

Sure, there are companies working on blockchain applications, but no single investment truly captures the broad potential of the technology. So what do investors do when they want exposure to blockchain? They buy Bitcoin – because it’s the most visible and accessible application of blockchain, even if it only represents a fraction of what the technology can do.

This reminds me of a pattern I’ve noticed in another investment dynamic:

SpaceX is to Tesla as Blockchain is to Bitcoin: A Hypothetical Comparison

Elon Musk’s private space exploration company, SpaceX, has captivated investors and technology enthusiasts alike. It has achieved remarkable feats – reusable rockets, commercial space travel, and even aspirations for Mars colonization. The problem? It’s a private company – you can’t just buy shares in SpaceX on the stock market.

However, there is a publicly traded company that shares a deep connection with SpaceX: Tesla.

Tesla and SpaceX share leadership, innovation-driven cultures, and a common fanbase of believers in Musk’s vision. Over the years, when SpaceX has announced major milestones – like landing reusable rockets, securing massive funding rounds, or winning government contracts – Tesla’s stock has often reacted positively. Investors, lacking direct access to SpaceX, turn to the closest publicly available proxy: Tesla.

The same pattern seems to exist with blockchain and Bitcoin.

Blockchain is an extraordinary technology that could change industries, but there isn’t an obvious way to invest in it directly. So what do investors do? They buy Bitcoin, the best-known blockchain-based asset.

Examples of This Possible Proxy Effect in Action

Tesla Reacting to SpaceX News

In 2020, when SpaceX completed a successful crewed mission to the International Space Station, Tesla stock surged in the following weeks. ¹
In 2023, when SpaceX was reportedly raising money at a $137 billion valuation, Tesla stock saw positive movement, even though the companies operate in different industries. ²

Bitcoin Reacting to Blockchain Developments

When China’s government announced research into blockchain technology (even while banning crypto trading), Bitcoin saw a rally.³
When major companies like Visa, JPMorgan, and IBM have made blockchain-related announcements, the crypto market has often responded with upward momentum. ⁴

Final Thoughts

This is just a theory, but it may help explain why Bitcoin often moves in response to blockchain-related news, much like Tesla has reacted to SpaceX developments. Investors love the idea of blockchain, just like they love the idea of SpaceX. But when direct investment isn’t an option, they turn to the next best thing. This is what we are calling the “investment proxy effect.”

That’s why we seem to see Bitcoin often move on news related to blockchain, just like Tesla has historically reacted to major SpaceX developments. Does that mean Bitcoin is the best way to invest in blockchain? Not necessarily. But it may explain why people flock to it.

IMPORTANT DISCLOSURE INFORMATION: Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BentOak Capital [“BentOak”]), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of its services should be construed as legal or accounting advice. Moreover, you should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. Please remember that it remains your responsibility to advise BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure Brochure discussing our advisory services and fees is available upon request at www.bentoakcapital.com/disclosure. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement.

Trump’s New Tariffs on Mexico, Canada & China: What We’re Watching

Posted on February 24, 2025March 12, 2025 by elaina

The Trump administration’s recent tariff policies have created significant market discussions. While the 25% tariffs on Mexico and Canada have been postponed for 30 days due to ongoing negotiations, the 10% tariff on all imports from China is now in effect.

As comprehensive wealth managers, we are focused on long-term fundamentals, not short-term noise. While we’re monitoring developments, at the end of the day, we will undoubtedly talk a lot about this, but we likely won’t need to do a lot about this – because that’s what disciplined investing looks like in action.

What’s Driving These Tariffs?

The administration has pointed to several key reasons:

Trade imbalances and an expanding national debt.
Concerns over illegal immigration and drug trafficking from Mexico.
Foreign aid contributions to Canada without direct financial return.
China’s trade practices, including intellectual property concerns.

How Markets Are Reacting

Mexico & Canada: Their tariffs are on hold, with ongoing negotiations. Mexico has agreed to increase border enforcement, and Canada has pledged further efforts to combat fentanyl.
China: The new tariffs are in place, and China has responded with retaliatory tariffs on U.S. natural resources and machinery starting February 10.

What We’re Watching

While these tariffs could impact certain industries, the broader market effects remain uncertain. We are paying close attention to:

Supply chains & inflation – Higher import costs could pressure manufacturers, but a strong dollar may offset some of the inflationary impact.
Interest rates – If inflation remains controlled, the Fed may stay its course on rates, but trade disruptions could lead to economic adjustments.
Sector-specific risks – Energy, agriculture, and industrials are areas where tariffs could have an outsized impact.

Tax Relief to Offset Tariff Impact?

The administration has floated ideas like eliminating taxes on Social Security benefits, making tips tax-free, and introducing other tax cuts to offset economic strain. These remain in early discussion stages.

What This Means for Investors

This situation reinforces why we don’t make reactionary investment decisions based on headlines. The fact that the Mexico and Canada tariffs have already been postponed is a perfect example of why patience is key – what’s announced doesn’t always play out as expected. In fact, we have rewritten this blog post multiple times over the past week as the situation has evolved multiple times! Markets are resilient, businesses adapt, and long-term discipline always wins over short-term speculation. While we continue to monitor these developments, our investment strategy remains steady – avoiding knee-jerk reactions while staying prepared for opportunities as they arise.

If you have any questions, we’re here to provide guidance.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Financial Scams to Watch For and How to Avoid Them

Posted on February 16, 2025February 24, 2025 by elaina

Financial scams are on the rise, and scammers are becoming more sophisticated in their tactics. At BentOak Capital, we believe that knowledge is the best defense. Understanding common scams and knowing how to protect yourself can help safeguard your financial future.

Common Financial Scams to Watch For

The Grandparent Scam

One of the most heartbreaking scams targets older adults. In the ‘grandparent scam,’ a fraudster pretends to be a grandchild in distress, claiming to need money urgently for an emergency—such as bail or medical bills. These scams are emotionally manipulative and designed to cause panic, making victims act quickly without verifying the caller’s identity.

Imposter Scams

Scammers often pose as government officials, law enforcement, or even charities to deceive individuals into providing personal information or sending money. These fraudsters may demand payment for fake fines, taxes, or donations. Their messages can seem legitimate, making them difficult to spot.

Phishing Emails

Phishing emails are designed to look like they come from trusted organizations, such as banks or government agencies. These emails often contain links that lead to fraudulent websites, where scammers attempt to steal login credentials, credit card numbers, or Social Security information.

How to Protect Yourself from Financial Scams

Awareness is key to preventing financial fraud. Here are some proactive steps to keep yourself and your loved ones safe:

1. Verify Before You Act

If someone contacts you requesting money or sensitive information, take a moment to verify their identity. If the caller claims to be a family member in trouble, hang up and call them back using a known phone number. If an email or text looks suspicious, do not click any links—reach out to the company directly instead.

2. Educate Yourself and Your Family

Scammers prey on those who are unaware of their tactics. Have conversations with your family about common scams, particularly elderly relatives who may be more vulnerable. Encourage them to share any suspicious calls, emails, or messages with you before taking action.

3. Watch for Warning Signs

High-Pressure Tactics: Scammers often create urgency, insisting you act immediately. Take a step back and assess the situation.

Requests for Secrecy: If someone tells you not to inform your family about a transaction, it’s a red flag.

Unsolicited Contact: Be cautious of unexpected calls, texts, or emails, especially if they ask for personal or financial information.

What to Do If You Suspect a Scam

If you ever feel uncertain about a financial situation, don’t hesitate to seek guidance. At BentOak Capital, our advisors are trained to recognize red flags and can help you navigate suspicious scenarios to protect your financial well-being.

Staying informed and taking preventive measures is your best defense against financial scams. Share this information with family and friends to help keep everyone safe. If you have any concerns or need assistance, contact BentOak Capital—we’re here to help.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

3 Ways to Align Your Portfolio with Your Financial Goals

Posted on February 13, 2025February 13, 2025 by elaina

Your investment portfolio is a powerful tool in achieving your financial goals, but how do you know if it’s positioned correctly? At BentOak Capital, we assist clients with their portfolios to help it reflect their unique needs, timelines, and risk tolerances. Here’s how you can evaluate whether your portfolio is aligned with your financial goals.

1. Assess Your Time Horizon

Your investment strategy should be based on when you need to access your funds. Are you saving for a home in the next few years, or are you building wealth for retirement decades down the road? A shorter time horizon typically requires more conservative investments, while a longer horizon allows for a more growth-oriented approach.

A well-structured portfolio adjusts over time. For instance, if you’re nearing retirement, it may make sense to shift from high-growth assets to more stable, income-generating investments. Reviewing your portfolio regularly ensures it continues to align with your financial goals and your evolving financial timeline.

2. Understand Your Risk Tolerance

How comfortable are you with market fluctuations? Some investors can weather volatility with ease, while others may lose sleep over short-term losses. Your portfolio should match your personal risk tolerance so you can stay invested through market ups and downs without unnecessary stress.

To gauge your risk tolerance, consider how you reacted during past market downturns. Did you remain invested, or did you panic and sell? Understanding your emotional response to market changes can help determine if your current asset allocation is appropriate for aligning your portfolio with financial goals.

3. Evaluate Your Risk Capacity

Beyond personal comfort, consider how much risk you can afford to take. Your overall financial situation—including income, savings, and other assets—determines your ability to take on investment risk. Someone with a strong financial foundation may be able to assume more risk than someone with limited savings or high expenses.

Life changes, such as a career transition, inheritance, or unexpected expenses, can affect your risk capacity. Regularly reviewing your financial standing helps ensure your portfolio remains aligned with your financial goals.

Need Help Aligning Your Portfolio?

If you’re unsure whether your portfolio is structured appropriately for your financial goals, BentOak Capital can help. Our team of experienced advisors will assess your investment strategy and ensure it aligns with your time horizon, risk tolerance, and financial capacity.

Reach out today to take the next step toward financial clarity and aligning your portfolio with financial goals.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

What Does the Social Security Fairness Act Mean for You?

Posted on January 23, 2025January 28, 2025 by elaina

On January 5, 2025, President Biden signed into law the Social Security Fairness Act, a significant change that primarily affects former municipal, state, and federal government workers, including teachers, police officers, and firefighters. This law could add hundreds of dollars to beneficiaries’ monthly Social Security checks.

What Was the Issue Before the Social Security Fairness Act?

Up to now, as a retiree or surviving spouse of a retiree, if you received both a Social Security check and a pension based on work that was not covered by Social Security, your Social Security benefit would have been reduced.

This reduction stemmed from two provisions:

The Windfall Elimination Provision (WEP)
The Government Pension Offset (GPO)

The newly enacted Social Security Fairness Act repeals both provisions, restoring benefits to those who had been impacted.

What Changes Should You Expect?

As of now, the Social Security Administration (SSA) has not officially detailed how or when the law will be implemented. However, the SSA has stated that the law applies to “benefits payable for months after December 2023.”

Here are some key takeaways:

Beneficiaries may be eligible to receive a lump sum payment for the difference between benefits actually received and what they should have received during 2024.

Based on estimates from the Congressional Budget Office, monthly Social Security payments are expected to increase by $360 on average for those affected.

What Steps Should You Take?

Most beneficiaries don’t need to take any action other than verifying their mailing address and direct deposit information with the SSA. You can do this easily through your mySocial Security account.

However, if you are a surviving spouse or ex-spouse who didn’t file for Social Security benefits due to a pension offset, you’ll need to apply for spousal benefits directly through the Social Security Administration’s website.

Who Is Affected by the Social Security Fairness Act?

The repeal of the WEP and GPO provisions impacts a relatively small group of people—about 2,730,000 individuals – roughly 4% of current Social Security recipients or approximately the population of Chicago. Additionally, future public sector retirees will also benefit from this change. While this is a small percentage of all Social Security recipients, it may have a significant impact for those affected.

The Bigger Picture: Impact on Social Security’s Future

The Congressional Budget Office estimates that this repeal could accelerate the depletion of the Social Security retirement trust fund by about six months. Insolvency is now projected to occur around 2033, a key consideration for lawmakers as they evaluate long-term Social Security reform.

What Does this Mean for You?

If you’re a public sector retiree or surviving spouse, the Social Security Fairness Act could restore Social Security benefits you previously lost due to WEP and GPO provisions.

To ensure you’re prepared, verify your information with the SSA and stay updated on implementation timelines. If you have questions about how this change impacts your financial plan, the BentOak Capital team is available to assist.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BentOak Capital (“BentOak”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from BentOak. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BentOak is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of BentOak’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a BentOak client, please remember to contact BentOak, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. BentOak shall continue to rely on the accuracy of information that you have provided or at www.bentoakcapital.com. Please Note: IF you are a BentOak client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.