Ballast Magazine - 1.2

BALLAST ISSUE 2

FALL 2025

OPTIMIZING THE EVERYDAY Practical Strategies, Lasting Impact

Q&A With John Boardman

From loss came leadership and the foundation of Ballast.

“Where did all the money go?”

And how to stop asking that question.

Contents A BALANCED VIEW ON TARIFFS BUDGET AROUND EMPLOYMENT BONUSES MARKET COMMENTARY VARIABLE INCOME TO PAY STRUCTURE STEFAN HENDRICKSON ON OBBBA + TAXES THE BALLAST BULLETIN

2 2 3 4 6 7

Q&A WITH JOHN V. BOARDMAN, III 8 SHOULD I CONSIDER A TRUST? 9 LIQUIDITY AND EXIT PLANNING 10 ESTATE LAW WITH JEFFREY L. GEHRING 11 INVESTING IN HEALTH SAVINGS ACCOUNTS 11 TOP 5 - CAREER CHANGE 12 STAY CONNECTED & WATCH LIVE 12

CONTRIBUTOR S

John V. Boardman, III

Andy Reynolds

Brian Burton

Cameron Hamilton

CFP®, CPWA® Founder, CEO

CFP®, CEPA®, MBA Partner, COO

CFP®, CIMA® Partner, CIO

CFP®, MBA, CPWA® CFP®, J.D., LL.M. in Taxation Partner, Financial Planning Estate Planning & Tax

Frank E. Yozwiak

Trent Lakes Paraplanner

ECONOMICS

A BALANCED VIEW ON TARIFFS Restrictive trade policies such as tariffs, import quotas, and export bans can elevate inflation by raising the cost of goods and services throughout the economy. At their core, these measures disrupt global supply chains and reduce the efficiency gains that free trade typically delivers. When tariffs are imposed, the immediate effect is often higher import prices, which get passed along to businesses and consumers. For example, research from the Peterson Institute for International Economics found that U.S. tariffs imposed between 2018 and 2019 effectively raised consumer costs by tens of billions of dollars annually, despite being intended to protect domestic industries. ¹ John Boardman

Policymakers sometimes argue that tariffs and restrictions provide a dual benefit: protecting domestic jobs and generating government revenue. Historically, tariff collections were a major source of federal income before the introduction of the income tax, and even today, new tariffs can provide a short-term boost to government

coffers. However, this revenue often comes at the expense of higher prices for households and businesses, effectively acting as a regressive tax on consumption.

The inflationary impact is not limited to directly affected goods. Because many sectors rely on intermediate inputs such as semiconductors, steel, or energy, higher costs cascade through multiple industries. A Federal Reserve analysis has noted that tariffs tend to reduce competition, allowing domestic producers to raise prices as well. ² The International Monetary Fund has further warned that protectionist measures fragment supply chains, weaken resilience, and keep prices elevated. ³ Ultimately, while restrictive trade may offer fiscal benefits and political appeal, it risks embedding persistent inflationary pressures into the broader economy.

1. Bown, C., & Kolb, M. (2021). Trump’s Trade War Timeline. Peterson Institute for International Economics.

2. Flaaen, A., & Pierce, J. (2019). Disentangling the Effects of the 2018–2019 Tariffs on a Globally Connected U.S. Manufacturing Sector. Federal Reserve Board.

3. International Monetary Fund. (2023). World Economic Outlook: Trade Fragmentation.

PERSONAL FINANCE

BUDGET AROUND EMPLOYMENT BONUSES An employment bonus can feel like a windfall, but smart budgeting ensures it supports your financial goals. Taxes should be accounted for off the top, if not already withheld via payroll. An assessment of your financial situation would then be helpful in determining what to do with the rest.

Frank Yozwiak

Taking a portion of the bonus to build (or rebuild) your emergency fund could be a high priority. Saving a portion into your retirement accounts may also be a good idea. If you have outstanding debt – such as high interest credit cards, student loans, or a car payment – this is an opportune time to make a lump sum payment.

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BUDGET AROUND EMPLOYMENT BONUSES

the horizon. Taking a percentage approach can help to avoid emotional decisions that you may later regret. For example, you may allocate 25% of the after-tax cash to your retirement, 25% to debt, 15% to a child’s college savings, 15% to a home project, and the remaining 20% to a vacation or just for fun.

Everyone’s situation and goals are different. The key is to be intentional so you can be confident that you’ve done some of the things you should, and not just the things you want to do.

MARKETS & INVESTMENTS

MARKET COMMENTARY Brian Burton

Markets entered September with a cautiously optimistic tone following a mixed August that was marked by softening labor data, persistent inflation pressures, and renewed speculation around Federal Reserve policy direction. The S&P 500 posted modest gains last month, driven largely by strength in AI-related tech, semiconductors, and megacap growth stocks. At the same time, small-caps, cyclicals, and international equities lagged amid rising global uncertainty. Volatility picked up in the latter half of the month as investors reassessed the timing and magnitude of potential policy shifts.

Bond yields remain elevated, although they’ve recently edged lower as investors grow increasingly confident that the Fed will begin easing before year-end. The 10-year Treasury yield is now hovering around 4.25%, down from recent highs, reflecting a mix of softer economic data and rising expectations of an imminent rate cut. Credit spreads, meanwhile, have widened modestly, indicating a degree of caution returning to fixed income markets.

The Federal Reserve remains the primary driver of market sentiment.

While inflation data from August showed some reacceleration in headline prices—driven in part by tariffs, shelter costs, and energy costs—core inflation continues to moderate slowly. This dynamic has complicated the Fed’s decisionmaking. While the labor market is showing clear signs of cooling, Fed officials remain publicly cautious, reiterating their data-dependent stance.

Markets are now pricing in 50-75 bps of rate cuts by the end of 2025, though some uncertainty remains.

several non-tech sectors, pointing to potential headwinds.

Meanwhile, second- quar ter earnings season wrapped up on a mixed note. The standout performers remained concentrated in tech, particularly firms tied to AI infrastructure, cloud services, and digital automation. However, margins remained under pressure in consumer-facing sectors like retail, transportation, and manufacturing, where inflation and tepid demand continue to weigh on profitability.

Guidance for the remainder of the year has been conservative in

In the months ahead, markets will remain highly sensitive to inflation trends, central bank signals, and geopolitical developments. While hopes of a soft landing persist, elevated valuations and policy uncer tainty warrant caution.

Investors should stay agile, focusing on quality assets and diversification as volatility remains a key theme.

A data-driven, balanced approach will be essential as the economic and political landscape continues to evolve through year-end.

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C A S E S T U DY

TRANSFORMING VARIABLE INCOME INTO A RELIABLE PAY STRUCTURE Andy Reynolds

“Where does all the money go?”

This is a question financial professionals hear far too frequently, particularly from individuals and families whose income varies from month to month. Whether from freelance work, commission-based sales, business ownership, or other professional arrangements, managing irregular income can feel as elusive as finding the end of a rainbow. When income is unpredictable, it becomes all too easy to overspend, delay saving, and fall into unhealthy financial cycles of feast and famine.

Fortunately, there is a smarter, more structured approach that can restore order to financial chaos. At the heart of this strategy lies a simple but transformative concept: the Buffer Account.

The Complexity of Cash Flow For many households, the movement of money is unnecessarily complicated. Income may be deposited into several accounts, divided between spouses, or mixed with business revenue. Bills might be paid from a mix of credit cards, debit cards, and checking accounts. The result is a lack of cohesion, making it difficult to understand what is truly available for spending, saving, or long-term planning.

This kind of volatility makes it exceedingly difficult to adhere to a steady budget or to plan effectively.

The solution lies in separating income collection from monthly spending. This is done by establishing two distinct accounts:

Without a clearly defined system, budgeting becomes more reactive than intentional—often leading to confusion, stress, and missed opportunities for financial growth.

• Collection Account (Savings): All income—monthly paychecks, bonuses, and irregular payments—is deposited into this account.

Introducing the Buffer System: One Income, One Number

• Operating Account (Checking): This account is used exclusively for monthly expenses and day-to-day spending.

To illustrate the buffer system approach, consider the example of an individual who earns approximately $240,000 per year after taxes. Rather than receiving a consistent monthly paycheck of $20,000, they earn a base salary of $3,000 per month and receive substantial quarterly bonuses. In some months, their account balance may hover near zero; in others, it may spike to $100,000.

Each month, a fixed amount—for example, $15,000—is transferred from the Collection Account to the Operating Account. This monthly transfer effectively becomes a consistent, artificial “paycheck,” regardless of when or how actual income is received. This structure introduces the appearance of a steady salary, providing the consistency necessary for disciplined budgeting.

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TRANSFORMING VARIABLE INCOME INTO A RELIABLE PAY STRUCTURE

Account Type

Purpose

Target Amount

Collection Amount

Holds all income; stores emergency fund

$90,000 minimum

Operating Account

Used for all monthly expenses

$15,000/month

Monthly Transfer

Simulates a stable paycheck

$15,000

Surplus Allocation

Directed towards debt and goals

Quarterly review

Chart 1: Buffer Account Structure

Establishing the Foundation: Emergency Fund and Operating Buffer To ensure long-term sustainability, it is important to create two financial safety nets: • Emergency Fund: Six months of expenses, held in the Collection Account. In this scenario, that would amount to $90,000.

• Operating Buffer: One month of expenses, or $15,000, retained in the Operating Account to protect against shortfalls or unexpected fluctuations in spending.

This foundation helps the individual remain financially stable during lower-income periods and allows them to avoid the roller coaster effect of fluctuating monthly cash flow.

Allocating the Surplus with Intention Once the emergency fund and operating buffer are established, any excess funds in the Collection Account can be strategically allocated toward predefined financial goals.

Allocation Category

Percentage

Dollar Amount

Mortgage Principal Paydown

25%

$7,500

Auto Loan Payoff

15%

$4,500

Student Loan Payoff

10%

$3,000

Home Renovation Fund

20%

$6,000

Travel Savings

10%

$3,000

College Fund Deposit

20%

$6,000

Chart 2: Sample Surplus Allocation Strategy (Quarterly Bonus of $30,000) This chart is illustrative and can be customized based on personal financial goals.

A Simpler, More Focused Financial Framework The brilliance of the buffer system lies in its simplicity.

Once implemented, the individual need only monitor one number: the balance of the Operating Account. As long as the account remains above the buffer threshold—in this example, $15,000—and income continues to arrive at expected intervals, everything is proceeding according to plan.

There is no need to analyze complex spreadsheets or scrutinize every transaction. Savings occur automatically through the Collection Account, and surplus funds are deployed with clarity and intention. The structure fosters peace of mind, transparency, and measurable progress toward financial goals.

Returning to the example, the individual might choose to divide their quarterly bonuses as follows:

Guilt-Free Spending, Planned in Advance

• 50% toward Debt Reduction: Paying down the mortgage, auto loans, student loans, or other liabilities.

One of the most compelling psychological advantages of this system is its ability to eliminate guilt from spending.

When the time comes to make a lump-sum debt payment or book a long-anticipated vacation, it does not feel impulsive or indulgent. The decision was already made weeks or months ago; the action is simply the fulfillment of a plan.

• 50% toward Future Goals: Funding home improvements, family vacations, education savings plans, or other significant aspirations.

Because the Collection Account is removed from daily spending, it becomes much easier to stay disciplined.

There is no temptation to splurge impulsively when a bonus arrives, because the funds are not immediately accessible for discretionary use. Instead, each dollar is given a purpose before it is spent.

There is no regret, no hesitation—only confidence in knowing that the expenditure fits within the larger financial framework.

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TRANSFORMING VARIABLE INCOME INTO A RELIABLE PAY STRUCTURE

Adaptable Across Income Types While the example above centers on an individual with commission-based income, this strategy can be tailored to suit a wide range of financial situations, such as: • Quarterly bonuses • Performance-based incentives • Supplemental income from moonlighting or extra shifts Although the structural change may seem simple, its long-term impact on clarity, savings behavior, and financial well-being can be substantial.

Take Control of the Narrative Money does not have to be confusing, even when income is unpredictable. With the right structure in place, any budget can shift from reactive to intentional. If you frequently find yourself asking, “Where did it all go?”

This strategy may offer the clarity and control you have been seeking.

By implementing the buffer account method, you gain more than a new budgeting tool—you gain the confidence that comes from financial consistency, even in the face of income variability.

CONNECTIONS

STEFAN HENDRICKSON ON OBBBA & TAXES

CPA/ABV, Tax Associate Director, Dean Dorton Andy Reynolds

Most important provisions of the OBBBA (One Big Beautiful Bill Act)? It extends many 2017 Tax Cuts and Jobs Act provisions, the 37% top rate, higher standard deduction, limits on tax and mortgage deductions, and the QBI deduction. It also raises the SALT deduction to $40,000, adds a $6,000 senior deduction, allows auto loan interest deductions, creates a $1,000 charitable deduction for nonitemizers, and increases the estate tax exemption to $15 million, with many provisions indexed for inflation.

How do the changes under the OBBBA impact small business owners? Beyond the extended QBI deduction, reinstating 100% bonus depreciation, including for Qualified Improvement Property, creates significant planning opportunities.

Are there any overlooked opportunities clients could benefit from? Yes, income management.

With extended brackets and rates,

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timing income and deductions can yield major savings.

in 2026, a floor and cap on deductions will sharply reduce benefits.

If you could give clients one piece of advice? Focus on eligibility.

Many deductions phase out with income, so timing with advisors is key.

How do you collaborate with other professionals? By maintaining open, timely communication between the client’s advisor circle to identify opportunities early.

Tell us about your background.

I grew up in a family of self-employed business owners, was drawn to the financial side, and became a CPA to help solve problems proactively.

What types of clients do you serve and what do you specialize in? Closely held businesses and their owners. I cover accounting, tax planning, succession, M&A advisory, and estate/gift planning.

What are the most common tax planning mistakes? Failing to plan.

Year-round communication allows for better results; waiting until filing season limits options and raises costs.

What proactive strategies should families or businesses consider now? Plan charitable giving before December 31, 2025. Starting

What do you enjoy most about serving clients? Lexingtonians care deeply about our city and families, which is represented in the quality of life we have here. So, anything I can do to help the people that create that community motivates me.

Outside of work, what do you enjoy? I have teenage children and am involved in their activities and school, but also have a passion to help charitable organizations within the community. I’m a long time golfer who loves to get in a round whenever possible, but have also become a recent convert to pickle ball.

Portions of this interview have been condensed. For the full conversation, visit ballastplan.com/resources.

THE T H EBALLAST B A L L BULLETIN AST BULLETIN Did You Know...

Ballast Book Club

Behind Ballast

...WE IMPLEMENT CHARITABLE PLANS VIA DONOR ADVISED FUNDS, ENDOWMENTS, FOUNDATIONS.

BOOKS AND CONVERSATIONS WE’VE ENJOYED LATELY

UPDATES, MILESTONES, AND THE PEOPLE BEHIND BALLAST

Charitable planning is a meaningful way to align your financial strategy with your personal values.

At Ballast, it is a cornerstone of our client conversations. We are often the first call when individuals, couples, or families begin envisioning their own impactful giving opportunities. Our role is to help clients explore and implement thoughtful, creative, and customized solutions that reflect their goals and the values that matter most.

This process typically begins with clarifying the causes they care about and identifying opportunities to make a lasting difference. From there, we guide clients through a range of strategies, such as donoradvised funds, family foundations, endowments, or scholarships.

If a client can imagine a charitable way to benefit others, we work to design practical steps to bring that vision to life. Whether supporting your community today or creating a legacy for the future, charitable planning is a powerful way to connect wealth with purpose.

COSMOS: A PERSONAL VOYAGE Book by Carl Sagan

“A unique exposition of humanity’s connection to the universe.” - Christopher Benge

ALL-IN Podcast

“A great mix of analysis, debates, and insider perspectives” - Frank Yozwiak

THE HAPPINESS ADVANTAGE: THE SEVEN PRINCIPLES OF POSITIVE PSYCHOLOGY Book by Shawn Achor

“A research-backed book that proves that happiness is a choice and leads to better brain function, motivation, resilience and creativity” - John Boardman

CAN’T HURT ME Book by David Goggins

“Showed me my mind’s toughness can outlast any obstacle.” - Trent Lakes

As you may have seen across our social media channels, all 21 of the Ballast kids are back to school - from a 6-month-old in daycare to a junior in college, we hope they all have a wonderful school year!

A few other updates: Brian Burton recently got a new puppy named Cruz, and Madeline Flynn got married in August.

BRIAN’S PUPPY, CRUZ

And lastly, we’ve recently welcomed an intern to the Ballast team, Madelyn Mozeleski! She attended Morehead State University for her undergraduate degree and was a member of the women’s soccer team. Currently, she’s pursuing a dual JD/MBA at the University of Kentucky.

As an intern, Madelyn will learn about financial planning while shadowing Ballast advisors.

Cheers to a great quarter!

A WALK IN THE WOODS Book by Bill Bryson

“An engaging and humorous journey down the Appalachian Trail.” - Brian Burton

SAY HELLO TO MADELYN MOZELESKI

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MADELINE FLYNN’S WEDDING DAY

BALLASTPLAN.COM

TE AM MEMB ER SPOTLIGHT

Q&A WITH JOHN V. BOARDMAN, III

Ballast Founder and CEO, CFP®, CPWA® Madeline Flynn

Q: When you first began your career, what did you expect it to look like?

A: I pictured a life behind a computer, researching companies, trading securities, and managing portfolios. That is what I thought success in finance looked like. But when the firm I worked for was acquired, I was introduced to financial planning, which at the time was still fairly new. I quickly realized this was not just about spreadsheets, it was about people. It was about solving problems, building relationships, and helping families make decisions that could change their future. That discovery lit a spark in me that has never gone away.

Q: What is the biggest situation in your life that shaped who you are today?

A: Without a doubt, it was losing my dad after his battle with cancer when I was 23. He had remarried and was living in Florida, and when he passed at just 51, I suddenly had to step into a role I never expected.

As the oldest relative of my 94-yearold grandmother, I made sure she was cared for. I moved her from Florida, got her settled in a nursing home near me, and visited her most days through the end of her life. At the same time, I was looking out for my younger brother and trying to guide him through an incredibly difficult time. Alongside that, I was

navigating complicated estate and financial matters I had never faced before. I was young, overwhelmed, and unprepared, but I figured it out. That experience opened my eyes to how overwhelming financial decisions can be, even for capable families. It was my light bulb moment, the one that convinced me people need true leadership in their financial lives. That became my mission, to build something steady, reliable, and rooted in care. In 2005, that is how Ballast was born.

Q: Do you remember signing your very first client?

A: Clear as day. I was young, looked even younger, and honestly had no idea how people would respond to me. But that first family saw something in me, trusted me with their financial future, and that trust still shapes how I approach my work today. Once someone gives you their trust, you have to honor it with everything you have. That moment gave me both confidence and a lasting reminder of what responsibility really means. That is the foundation of Ballast.

Q: Can you give an example of a challenge that demanded everything you had?

A: After my dad passed, I needed an outlet for my grief and a test for my willpower. In 2006, I trained for and completed Ironman Lake Placid.

I was not doing it to prove I was an athlete; I was doing it to prove I

could endure. The training tested my discipline every single day, and the race itself required every ounce of grit I had. I raised money for cancer research along the way, but at its core it was about resilience.

Just like with my grandmother’s care, my younger brother, and my dad’s estate, I figured it out. It showed me that no matter how painful or difficult life gets, you can push through and finish what you start. That mindset has shaped how I lead Ballast. If I commit to something, whether a family, a client, or a teammate, I do not quit.

Q: Beyond Ballast, where do you focus your energy?

A: I have always been passionate about education and supporting those who teach and mentor the next generation. Teachers shaped me, and I have seen how much they give with little recognition. Through my work with Kentucky Teachers Retirement and The Lexington School, I have tried to help teachers and schools get the resources to keep changing the lives of kids. I believe strongly that helping

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Q&A WITH JOHN V. BOARDMAN, III

a teacher means helping every child that the teacher touches. For me, this work is not just charitable, it is deeply personal. Education is the pathway to opportunity and supporting it is one of the most powerful ways to make a lasting difference.

Q: What excites you most about leading Ballast today?

A: Watching our people grow.

Seeing team members step out of their comfort zones, build skills, and create meaningful careers is incredibly rewarding. I am proud of the work we do for clients, but I am equally proud of the culture we have built.

Leadership, to me, means making sure others have the confidence and support to thrive. That is not just lip service, it is my responsibility every day. And when I see a team member step forward with new ideas, solve a hard problem, or gain the trust of a client, it reinforces why we built Ballast in the first place.

Q: The industry is evolving fast. How do you see Ballast adapting?

Q: And outside of work, where do you find your balance?

A: Balance for me comes back to family, friendships, and competition.

A perfect Saturday is coffee on the back porch with my wife, kids, and our dogs, a round of golf, or cheering on Kentucky football.

Those moments keep me grounded. I At it s hear t , thrive on hard work, “Families need this business is someone who knows but I also thrive on about stewardship, them... And will connection. stand with them about leading no matter what the people through And through it markets or the world complexity with all, I carry my dad’s throws their way.” care and conviction. advice with me. He Technolog y can always said, “If you enhance that, but take care of your it will never replace people, you will be just fine.” He was the human role. Families need someone never able to see what we have built who knows them, understands what at Ballast, but every day I strive to they value, and will stand with them make him proud in how we care for no matter what the markets or the our team and for our clients. world throws their way. That is where Ballast thrives.

A: Consolidation and artificial intelligence are changing the landscape, but independence is our strength.

We are nimble, client centered, and answer only to the families we serve.

TA X & E S TAT E P L A N N I N G

SHOULD I CONSIDER A TRUST? Trusts can be powerful tools for families across the financial spectrum to protect and manage assets, care for loved ones, and potentially realize generational tax savings. They can also provide privacy by avoiding public probate, and customized asset distribution, such as for health, education, maintenance, and support.

Frank Yozwiak

For those with minor children, a trust can help ensure financial security for the next generation by appointing a trustee to oversee funds until the children reach a designated age when the assets would go to them outright.

For spendthrift children, trusts can restrict distributions, protecting assets from reckless spending and/or creditors while offering structured support. Special needs trusts

can provide support for disabled family members without jeopardizing government benefits.

For high-net-worth families, trusts can aid in planning for the estate tax. Transferring assets to an irrevocable trust, for instance, can reduce the value of the taxable estate, potentially saving substantial taxes.

Charitable trusts, like Charitable Remainder Annuity Trusts (CRATs) or Charitable Remainder Unitrusts (CRUTs), can provide an immediate tax deduction, income to you or beneficiaries for a term, with the remainder going to a chosen charity.

While trusts do involve drafting fees and often ongoing administrative costs, they can offer personalized solutions to intricate problems and complex family dynamics.

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U LT R A H I G H N E T W O R T H P L A N N I N G

LIQUIDITY AND EXIT PLANNING For many business owners, the sale of their company is a once-ina-lifetime event that creates a sudden and significant infusion of wealth. While exciting, this new liquidity also presents both challenges and opportunities. To navigate the transition effectively, owners should address five critical questions.

John Boardman

First, what is my after-tax liquidity? The headline number from a sale rarely matches what ultimately arrives in your account. Taxes and fees can materially alter the outcome, and careful modeling ensures you know the true figure you’re working with.

Second, how much do I need to support my lifestyle?

Your business may have been your primary income engine.

Establishing an income replacement strategy aligned with long-term spending needs creates confidence that your

new wealth can sustain your family’s goals.

Third, what role should diversification and debt reduction play? Most owners have concentrated wealth in their business. A sale is the opportunity to pay down obligations and reposition assets into a balanced portfolio designed to protect and grow wealth.

Fourth, how does this impact my estate and legacy planning? A liquidity event often reshapes generational goals. Early planning can unlock tax efficiencies and support both family and charitable aspirations.

Finally, what comes next personally and professionally?

Beyond finances, many owners discover the importance of redefining their purpose—whether through new ventures, philanthropy, or family focus. Clarity here provides meaning alongside financial security.

C H A R I TA B L E G I V I N G

CHARITABLE GIVING WINS Helping families support charitable causes they care about is one of the top pleasures of my career. I like it even better when we can do it in a way that creates a tax win. Here are some great strategies that help optimize giving depending on your situation.

Cameron Hamilton

I no longer itemize deductions, or barely reach the limit to itemize.

Fewer than 10% of taxpayers itemize these days, and it often takes $15,000+ of donations for a taxpayer to see any benefit compared to itemizing. Donors in that category can make multiple years of donations via a Donor Advised Fund.

Instead of donating $20,000/yr, say they donate $80,000 at once. It’s all deductible in year one and the funds can be granted out to charities at their leisure over a period of years.

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I have appreciated stock that represents a substantial tax bill if I sell.

We see a lot of long-term investors that are reluctant to sell and recognize gains. Most charities are thrilled to accept gifts of stock because the charity can sell and not pay tax on the gains. We often help clients use this strategy to diversify their portfolio or establish new basis that increases future flexibility. This can also be paired with a Donor Advised Fund.

I am retired and likely not to itemize deductions ever again.

No working income, no mortgage interest- that’s a great place to be every day except the day you hope to count up tax deductions. Most people in this situation have substantial retirement assets in 401k’s or IRAs. Donors age 70 ½ + can donate up to $108,000/yr from an IRA and not pay tax by utilizing a Qualified Charitable Distribution (QCD).

Q&A WITH JEFFERY L. GEHRING

CONNECTIONS

ESTATE LAW WITH JEFF GEHRING

Member, Dickinson Wright

What inspired you to pursue a career in estate law, and what has kept you passionate? I love the intersection of technical rules on trusts and taxes with the “softer” aspects of family dynamics and goals. It requires a mix of skills, but it’s rewarding to find the right solution.

John Boardman

What types of clients or situations do you find most rewarding, and why? Business owners and multigeneration families. Honoring the efforts of the founders through an effective, efficient plan is very rewarding.

Most common mistakes you see families or business owners make when estate planning? Waiting until life settles down – it rarely does! Failing to communicate with beneficiaries on wishes/expectations. Assuming that everything will just work out because everyone gets along.

How has estate planning changed in the past 5–10 years, and what should people know? The estate tax exemption has risen from $5 million ($10 million married) to $15 million in 2026 ($30 million married), easing wealth transfers. At the same time, wealth and liquidity have surged for clients selling businesses or benefiting from strong markets. Lastly, family dynamics are more complex and so-called “traditional” families are less common.

For someone who hasn’t updated their estate plan recently, what are the top things they should review?

First, update your Power of Attorney (POA) every ten years. Some banks resist old ones. Second, review fiduciary designations to see if any changes are needed. Third, if your plan depends on exemption amounts, check if it still fits your current situation.

Advice for business owners or high-net-worth families preparing for a transition of wealth? Start early. Communicate your goals, expectations, and timing to other stakeholders. Treat equity ownership and management/control as separate issues.

What do you wish more people understood about estate planning that could save them time, money, or stress down the road? Identifying goals and issues is just as important as having the right documents. Trusted advisors should relieve stress, not add to it. Plans aren’t

“one and done”—they must adjust as life changes Outside of legal work, what values shape how you guide clients in long-term family decisions? Preserve family harmony whenever possible. Make wealth transitions positive for both giver and recipient. Recognize a legacy is more than just a number on a net worth statement.

Portions of this interview have been condensed. For the full conversation, visit ballastplan.com/resources.

H I G H N E T WO RT H P L A N N I N G

INVESTING IN HEALTH SAVINGS ACCOUNTS

The Overlooked Tax Strategy

For high-net-wor th individuals, minimizing lifetime taxes is essential to preserving wealth. One of the most effective, and often underutilized, tools for this is the Health Savings Account (HSA). HSA’s offer a rare triple tax advantage: Trent Lakes

01. Contributions are pre-tax if made via payroll, or tax-deductible if made directly.

02. Once funded, owners can invest their HSA dollars in the market via a Health Savings Brokerage Account (HSBA). Unlike traditional brokerage accounts, investment growth is not subject to capital gains taxes.

03. Withdrawals are completely tax-free when used for qualified medical expenses.

This structure makes HSAs more tax-efficient than most retirement or investment accounts. Additionally, HSAs provide greater flexibility than other healthcare savings options, as they aren’t subject to the “use it or lose it” rule, nor can funds be forfeited to an employer—any unused amount rolls over annually and remains yours forever.

These features make HSAs particularly valuable for retirement planning, when healthcare costs tend to rise.

The ability to contribute, grow, and withdraw HSA funds tax-free creates a versatile and powerful planning tool.

Whether you’re looking to reduce current tax liability, build long-term savings for medical expenses, or invest with tax efficiency, an HSA is a smart addition to any high-net-worth financial strategy.

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FA ST 5

TOP 5 CONSIDERATIONS WHEN MAKING A CAREER CHANGE Cameron Hamilton

1. Fit Check

Making a switch should not be solely about salary. Think about intangiblesresources, training, mentorship, flexibility, advancement track. Run your career like a business and ask: Will this opportunity make me better off in five and ten years? Is this opportunity a better fit for me and my family?

2. Relationship Continuity Every high earner has a network that is a huge source of long-term value. Plan how you will maintain those relationships. Pro-tip: start a new email unrelated to your old or new employer.

may affect your timing in making a change? Can you use those to negotiate your next opportunity?

4. Retirement Planning We have never suggested someone make a job change over retirement plan availability. But once you make the decision that’s best for you, how will we continue your long-term plan to save for the future?

5. Insurance Coverage Especially for younger workers with more debt and a longer runway of family responsibility, are you covered for death and disability separate from group/employer coverage? If not, consider that a part of the transition plan.

3. Sweeteners Are there incentives (bonuses, stock options, etc.) that

WA N T M O R E F RO M B A L L A S T ?

STAY CONNECTED & WATCH LIVE Join us for our upcoming live webinars to learn more and ask questions, or book a one-on-one meeting with our team. We’d love to connect!

Scan the QR code to tune in or visit BALLASTPLAN.COM/CONNECT for more.

Live Webinar Schedule (all times eastern): • Tuesday, October 14th at 4:00 p.m. - Q4 Market and Economic Update • Tuesday, November 18th at 4:00 p.m. - Personal Budgeting for Business Owners • Tuesday, December 9th at 4:00 p.m. - Family Financial Stewardship: When Do I Need a Trust?

Visit BallastPlan.com to learn more about our team, our services, or to set up a free consultation.

To speak to a member of our team, call 859.226.0625 or email info@ballastplan.com.

Ballast is located at 400 E. Vine Street, Suite 400, Lexington, KY 40507, however we serve clients nationwide.

Ballast, Inc. is a registered investment adviser with the SEC. Registration with the SEC does not indicate that the adviser has achieved a particular level of skill or ability, nor is it an endorsement by the SEC. All investment strategies have the potential for profit and loss. Ballast, Inc. is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Any specific strategy or market/economic commentary may or may not be appropriate for your individual situation, may not have discussed all material implications of implementing said strategy, and may be reliant on data provided by outside resources. Prior to implementing any strategy or investment decision discussed in a Ballast commentary, please consult with the appropriate professionals to confirm thoroughness of the strategy presented and the appropriateness of said strategy for your individual situation.

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