Well Balanced

Medicare is an important part of retirement planning, and for many is a topic that can feel overwhelming—especially with significant changes on the horizon. In our latest video, Joe Grochowski, Senior Wealth Advisor at Vector Wealth Management, breaks down what you need to know about Medicare, upcoming changes, and how to prepare.

Understanding Medicare: The Basics

Medicare is the government’s health insurance program for people 65 and older. It’s made up of four main parts:

• Part A: Hospital insurance (usually premium-free if you’ve worked long enough)
• Part B: Outpatient care, like doctor visits (monthly premium applies)
• Part C: Medicare Advantage, a private plan that bundles A and B, sometimes with extra perks
• Part D: Prescription drug coverage

You’re eligible at age 65, with a seven-month window to sign up (three months before your birthday month, your birthday month, and three months after). Missing this window can result in penalties.

What’s Changing in 2026?

Several important updates are coming, especially for clients in Minnesota:

• UCare Exit: UCare is leaving the Medicare Advantage market at the end of 2025, affecting about 158,000 Minnesotans. If you’re on a UCare plan, you’ll need to select new coverage during the annual enrollment period (October 15 – December 7, 2025) to avoid losing coverage in January 2026.
• Medigap Flexibility: Minnesota is expanding guaranteed issue protections for Medigap (Medicare Supplement) plans in 2026. This means more people can switch plans without medical underwriting—a win for those with pre-existing conditions. However, premiums are expected to rise by about 6% on average.

National Changes:

• Part D drug costs will be capped at $2,100 per year starting in 2026, with no more out-of-pocket costs for covered prescriptions after that.
• Medicare will begin negotiating prices for high-cost drugs, which could lower pharmacy bills.
• Medicare Advantage plans will face tighter rules on extra perks, focusing on real health outcomes.
• Expect increases in Part B premiums and IRMAA surcharges, especially for higher-income individuals.

What Next?

Here are a few key action items to keep in mind:

• If you’re on a UCare Advantage plan, mark October 15, 2025, on your calendar for open enrollment.
• Considering Medigap? 2026 brings more flexibility, but likely higher premiums—start exploring your options now.
• Using Part D? Budget for the new drug cap and check which medications will be covered under negotiated pricing.
• Each fall, review your annual notice of change to stay ahead of updates.

Stay Proactive

Medicare isn’t a “set it and forget it” program. The rules, costs, and your health needs can all change. Whether you’re preparing for your first enrollment or looking to optimize your current coverage, staying informed and proactive is essential.

Stay well balanced!

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All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

vectorwealth.com/regulatory

Fall is the perfect time to do a little “financial spring cleaning.” At Vector, we’re committed to helping our clients achieve long-term goals, but there are also some small steps you can take right now to set yourself up for success.

 

Here are five easy financial tasks you can tackle this fall:

 

1. Review Your Beneficiaries

Take five minutes to log into your retirement accounts, life insurance, or old 401(k)s and make sure your beneficiaries are up to date. Life changes—marriages, divorces, new family members—can happen quickly, and keeping your paperwork current can save your loved ones stress down the road.

 

2. Refresh Your Passwords

Just like changing the batteries in your smoke detector, updating your passwords is routine maintenance that protects your most valuable assets. Update weak or duplicate passwords, enable two-factor authentication, and make sure a trusted family member knows how to access your key accounts if needed. Consider using a password manager for extra security.

 

3. Sweep Out Old Subscriptions

Take a look at your bank and credit card statements for recurring charges—subscriptions, apps, streaming services—that you no longer use. Canceling these can feel like finding extra cash in your pocket and gives you back control over your finances.

 

4. Review Your Insurance Coverage

Insurance is easy to set and forget, but it’s important to make sure your coverage still fits your life. Review your home, auto, umbrella, life, and disability policies. Have you added new valuables? Has your liability protection kept pace with your needs? A quick review now can prevent surprises later.

 

5. Organize Your Key Documents

Make sure your wills, trusts, healthcare directives, powers of attorney, and insurance policies are all in one place—whether digital or physical—and that someone you trust knows where to find them. This organization provides clarity for your family during stressful times.

 

A Little Maintenance Goes a Long Way

None of these tasks should take more than a few minutes, but together they’ll give you a clearer, more confident financial picture heading into the new year.

 

If you have questions or want help prioritizing areas of your financial life, please reach out to your team at Vector Wealth Management. We’re here to support you every step of the way.

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Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. All investment strategies have the potential for profit or loss. Past performance is not indicative of future performance. Form CRS and other regulatory information is available on our website: vectorwealth.com/regulatory
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Fall is a natural time to pause, reflect, and make sure your financial plan is aligned. At Vector, we proactively look across our client’s financial picture to identify opportunities that could improve tax efficiency before December 31st.

 

Five Year-End Tax Planning Strategies

1.    Roth Conversions – Paying some taxes now at current rates may provide more flexibility in retirement.

2.    Tax Loss Harvesting – Using market downturns to offset gains and manage taxes in a disciplined way.

3.    Capturing Capital Gains – Realizing gains strategically to rebalance or step up a cost basis.

4.    Distribution Strategies – Evaluating which accounts to draw from, and when, to balance taxes and portfolio longevity.

5.    Charitable Giving – Making generosity go further with strategies like donating appreciated securities or Donor-Advised Funds.

 

While not every strategy fits every situation, the right ones can potentially make a meaningful difference. For more context, Vector’s Mike Nesheim dives into these topics in this week’s Well Balanced podcast.

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vectorwealth.com/start to schedule an intro call.

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Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. All investment strategies have the potential for profit or loss. Past performance is not indicative of future performance. Form CRS and other regulatory information is available on our website: vectorwealth.com/regulatory

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Why September Stands Out

 

If you’ve heard of the “September Effect,” you already know the reputation. Over a century of data, every month of the year has averaged a positive return for the S&P 500—except September. Its historical average is a decline of about 0.8%.

 

At the other end of the spectrum sits July, the strongest month, with an average gain of nearly 2%. In 2025, July (and August) lived up to that record, delivering fresh all-time highs for the index.

 

Is September doomed to weak performance just because it has followed the good vibes of summer? Let’s dig deeper to understand what is behind these numbers.

 

Frequency and Outliers

 

What makes September unusual isn’t just the size of its average decline. It’s also the frequency. About half of all Septembers finish in the red, compared to the typical month, which is positive nearly two-thirds of the time.

 

But the averages hide the real story. If you look closer, September’s record is heavily influenced by about 10 extreme downturns since the 1920s. These coincided with global events and systemic stress—like the Great Depression, the dot-com collapse, and the 2008 financial crisis.

 

Remove just 10 outlier Septembers, including three from the Great Depression alone, and the month shifts from negative to positive. That tells us September’s reputation comes less from built-in seasonal weakness and more from a handful of extraordinary moments in market history.

 

Context for Today

 

Fast forward to today: we don’t see the same structural cracks that defined those historically bad Septembers. Surprises are always possible—markets have a way of delivering the unexpected—but current conditions look very different from the environments that produced those extreme outliers.

 

It’s also important to note the setup. After a strong 2025 summer run, with the S&P 500 posting multiple new highs, some cooling off is normal.

 

What Investors Can Do

 

At Vector, we emphasize a disciplined approach to rebalancing. After strong gains, rebalancing means trimming back what has grown ahead of expectations and reallocating towards other areas . This helps manage concentration risk and turns volatility into an opportunity.

 

So, is September truly cursed? Unlikely. More than anything, it reminds us that markets don’t move in straight lines—and even one of the world’s most consistent wealth-building engines has its off months.

 

The long-term trend remains clear: growth outweighs the setbacks. A diversified plan, paired with conditions-based rebalancing, provides the steady foundation investors need—through Septembers, through Octobers, and well beyond.

 

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Contact us: vectorwealth.com/contact or schedule an intro call: https://www.vectorwealth.com/start

 

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Disclosures and Regulatory

vectorwealth.com/regulatory

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All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

In moments when you need short-term liquidity—whether for a home down payment, a business opportunity, or bridging a timing gap—your portfolio can offer more flexibility than you might think.

In our latest podcast, Wealth Advisor David Moser explores three strategic solutions available to Vector clients through their Schwab accounts. We talk though how each solution can provide access to funds based on your existing portfolio value.

 

Overview

 

60-Day IRA Rollover

Withdraw from your IRA without tax or penalty—as long as the funds are returned within 60 days. This can be a smart strategy for short-term cash needs, such as bridging a home sale. Keep in mind, this strategy requires selling investments, which means sitting out of market participation during the rollover period.

 

Margin Loan

Borrow against your brokerage account—no credit check or approval required. Your investments remain intact, and you avoid triggering potential capital gains. This option offers quick, flexible liquidity and, as a Vector client, you benefit from reduced negotiated interest rates through Schwab.

 

Pledged Asset Line (PAL)

A more structured loan against your brokerage account, typically suited for larger borrowing needs (minimum $100K). While it requires an application and setup process, it offers potentially higher borrowing limits—often around 60–70% of your portfolio’s value—compared to a margin loan.

 

Each of these tools are generally available for investors with financial assets held at a custodian like Schwab—and each comes with its own pros and cons depending on your goals, account type, and timeline.

Our role at Vector is to help you consider solutions that fits your financial plan best. If you’d like to learn more or explore which lending strategy may be right for you, we’re here to help.

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Contact us: vectorwealth.com/contact or schedule an intro call: https://www.vectorwealth.com/start

 

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Disclosures and Regulatory

vectorwealth.com/regulatory

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

 

In this edition of the Well Balanced podcast, we dive into three major financial stories making headlines:

• Stock Market Highs: The S&P 500 and NASDAQ have reached record highs, driven by optimism over potential interest rate cuts and strong corporate earnings.
• Earnings Season Highlights: Overall strong corporate earnings for Q2, with significant earnings growth across sectors like technology, communication, and financials.
• Interest Rate Outlook: Recent inflation report showed higher-than-expected price levels for producers in the economy. Despite this recent report, we anticipate the Fed will still cut interest rates in 2025, with implications for borrowing costs and investment.

Watch, listen or read this week’s Market Perspective with Jason Ranallo.
For more: vectorwealth.com/blog

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Regulatory: visit vectorwealth.com/regulatory

 

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed. Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

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In this conversation, Tom Lyons, chairman of the Minnesota Veterans Pantry and Vector’s Chris Wagner, discuss the importance of charitable giving and philanthropy. Tom shares his personal journey from military service to establishing the Minnesota Veterans Pantry, which addresses food insecurity among veterans.

They explore the tax benefits of charitable contributions and the role of financial planning in supporting philanthropic efforts. Tom emphasizes the need for community support and encourages others to get involved in charitable work, highlighting the fulfillment that comes from helping those in need.

 

Takeaways

• Tom's military service deeply influenced his commitment to helping veterans.
• The Minnesota Veterans Pantry addresses food insecurity among veterans.
• Charitable giving can provide tax benefits under new legislation.
• Sojourn is a valuable tool for financial planning and charitable giving.
• Tom encourages others to find a personal passion in philanthropy.
• Leaders have a responsibility to care for those they lead.

About Thomas Lyons

Tom Lyons has 40+ years of experience in business brokerage and mergers & acquisitions helping owners maximize the value of their companies. A Vietnam-era Air Force veteran, he’s also the author of Exit Strategy, a host of Minnesota Military Radio, and a passionate advocate working on veterans’ food security and family support through nonprofit initiatives like the Minnesota Veterans Pantry.

 

Visit faelon.com/thomas-lyons to learn more about Tom and connect with his various causes and interests, including the Minnesota Veterans Pantry.

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Disclosure: Tom Lyons is a current client of Vector Wealth Management. Vector Wealth Management is also a paid sponsor of Today’s Business Radio, a program hosted by Tom Lyons. Tom was not compensated for participating in this interview or for sharing it. His comments reflect his own opinions and experience and should not be construed as investment advice or a recommendation of Vector Wealth Management’s services. Past performance is not indicative of future results.

 

Regulatory

vectorwealth.com/regulatory

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

In this conversation, Tom Lyons, founder of a mergers, acquisitions, and advisory firm, and Vector’s Sharon Calhoun, discuss the intricacies of business valuations, exit strategies, and how to maximize the value of a business.

They explore the importance of planning and preparation for business owners considering selling their business, the role of management in enhancing enterprise value, and common mistakes to avoid during the exit process. The discussion emphasizes the need for business owners to understand their goals and plan for retirement effectively.

Video and audio versions, along with a transcript of this conversation may be found on our blog. Vectorwealth.com/blog

Takeaways

• Business valuations are an important part of planning an exit strategy.
• Understanding enterprise value may help owners to maximize their business worth.
• Planning for an exit (and retirement) should start early, ideally years before selling.
• A strong management team can increase a business's attractiveness to buyers.
• Not preparing adequately for a sale is a common mistake
• Business owners should seek multiple valuations to better understand worth.
• Tax implications play a significant role in business sales.
• Have a clear vision of life after business ownership.

About Thomas Lyons

Tom Lyons has 40+ years of experience in business brokerage and mergers & acquisitions helping owners maximize the value of their companies. A Vietnam-era Air Force veteran, he’s also the author of Exit Strategy, a host of Minnesota Military Radio, and a passionate advocate working on veterans’ food security and family support through nonprofit initiatives like the Minnesota Veterans Pantry.

Visit www.faelon.com/thomas-lyons to learn more about Tom and connect with his various causes and interests, including the Minnesota Veterans Pantry.

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vectorwealth.com/regulatory

 

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

 

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

 

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.