Deborah Cook Financial Planner

02/26/2026

What’s Your Effective Tax Rate?

Most people can rattle off their top federal tax bracket (their marginal rate), but don’t always know their effective tax rate.

Here is the difference.

Marginal Tax Rate:
●The rate on the last dollar of taxable income
●Tied to the highest bracket reached

Effective Tax Rate:
●Total federal income tax divided by total taxable income
●Always lower than the top bracket in a progressive system

Using simplified 2025 federal numbers for married filing jointly (Federal income taxes only, simplified illustrative figures only).

At $100,000 Taxable Income:
●Top federal bracket: 22 percent
●Effective federal rate: about 12 percent

At $250,000 Taxable Income:
●Top federal bracket: 24 percent
●Effective federal rate: about 18 percent

At $400,000 Taxable Income:
●Top federal bracket: 32 percent
●Effective federal rate: about 21 percent

Each layer of income is taxed at a different rate, so only the top slice hits the highest bracket.

Knowing both the marginal and effective rates can help keep tax conversations in perspective and make decisions more grounded. Your tax professional can provide additional insights.

See more on our website here: https://www.soundfinancialsolutionsnc.com/blog

02/25/2026

What if your most expensive tax decision in 2026 happens long before you file your return?

Tax prep looks backward; tax strategy looks ahead, and that gap is where real after-tax outcomes get decided.

A few high-impact levers to keep on the radar:

➡️ When Income Lands: Timing bonuses, self-employment income, and retirement distributions can help manage brackets.

➡️ How You Might Save: Consider taking advantage of the higher 401(k) limits in 2026, and catch-up provisions—but be sure to look into whether you need to use a Roth for those catch-up contributions.

➡️ Where Giving Shows Up: New rules change how charitable gifts and Adjusted Gross Income (AGI) limits work together.

➡️ What You Do in Down Markets: Tax loss harvesting can turn volatility into a tool, not just noise.

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

Preparing year-round can help shape future cash flow, flexibility, and choices.

See more on our website here: https://www.soundfinancialsolutionsnc.com/blog

02/23/2026

How confident are you that you are truly on track for retirement?

Vanguard’s latest outlook says only 42 percent of Americans are pacing toward their retirement income goals.

That means most might need to save more, work longer, adjust spending, or some mix of all three.

Workplace strategies can make a big difference:
● 54 percent are on track, vs. 28 percent without access
● Those with access are projected to have a $1,000 surplus in retirement
● Those without access face an $8,000 shortfall

If you're unsure which side of the 42 percent you are on, let us help you develop a strategy that can help you get on track.

See more on our website here: https://www.soundfinancialsolutionsnc.com/blog

02/23/2026

Do your kids have the right stuff for college?

Preparing for college means setting goals, staying focused, and tackling a few key milestones along the way.

02/21/2026

😰 Fear and greed are two of the biggest pitfalls for investors. Emotional investing often leads to buying high and selling low—exactly the opposite of what you want to do. Staying rational and sticking to your strategy is crucial.

Our eBook reveals practical ways to avoid emotional traps and keep a steady course, no matter what the market throws your way.

Get your free copy: https://www.fmgwebsites.com/acc9d4a3-6851-48db-a676-32e5aee71c42/8-timeless-principles-of-investing

02/21/2026

Every year since 1947, the U.S. President pens an economics textbook.

The Economic Report of the President can help identify the forces driving — or dragging — the economy.

02/20/2026

When was the last time you checked the beneficiaries on your retirement accounts? 📄

A November 2025 Wall Street Journal article, titled “Leaving the Wrong Beneficiary on Your IRA Plan Can Be a Costly Mistake,” shared some examples that highlight how important it is to keep them updated:

● A young professional named his sister as beneficiary when his retirement account was tiny. Years later, he died without changing the form. By then, it was his largest asset. His sister inherited the account, not his wife and children.

● An employee with a $300,000 company-sponsored plan died without updating his beneficiary after his wife passed away and never named a contingent heir. His two stepsons expected to inherit. The money went to other relatives instead.

● Even the columnist writing the piece thought everything was in order, then checked and discovered no beneficiary listed.

A few simple steps can help manage trouble for heirs:

● Confirm every retirement account has a beneficiary and contingent beneficiary

● Think twice before naming your estate as the beneficiary

● Update forms after marriage, divorce, deaths, births, or when moving accounts to a new provider

Once something happens, these forms can be challenging to fix.

A quick review now might help with delays and conflict later on ✅

See more on our website here: https://www.soundfinancialsolutionsnc.com/blog

02/19/2026

⚖️ Investing isn't just about returns—it's about managing risk. Balancing potential rewards with the proper level of risk for your goals is a key principle when investing. Understanding risk tolerance and having a strategy in place can help you confidently weather market downturns.

Our free eBook, "8 Timeless Principles of Investing," explores risk management techniques for managing wealth.

Get your copy here: https://www.fmgwebsites.com/acc9d4a3-6851-48db-a676-32e5aee71c42/8-timeless-principles-of-investing

02/18/2026

First-time homebuyers in America are now an avg. of 40 years old.

Let that sink in. 🏠

The generational gap is stark.

At Age 30:
➡️ 48 percent of baby boomers owned homes
➡️ 42 percent of Gen X owned homes
➡️ 33 percent of millennials owned homes

It's not about ambition or work ethic. It's about timing and economics.

Today's young buyers are entering the market when mortgage rates are higher, without any existing equity to leverage.

JPMorgan Chase CEO Jamie Dimon summed it up: "In the old days, you could be in 10th grade, go get a factory job in Detroit, and eventually you could afford a family, a home, a car, and that may not be true anymore."

For those of us guiding clients, this matters.

Many of our kids face a completely different wealth-building landscape than we did.

Curious, how old were you when you bought your first home? 💬

See more on our website here: https://www.soundfinancialsolutionsnc.com/blog

02/17/2026

🔗 Don't put all your eggs in one basket!

Diversification is a key principle for managing, but not eliminating, investment risk in the event that security prices decline. By spreading your investments among and within different asset classes, your portfolio can be positioned to manage market volatility.

Discover how diversification works in our comprehensive guide.

Get your free eBook now: https://www.fmgwebsites.com/acc9d4a3-6851-48db-a676-32e5aee71c42/8-timeless-principles-of-investing

02/16/2026

Some of the most lasting presidential legacies show up in everyday financial life.

🤔 Quiz time: can you name the presidents who are credited with each of these milestones in America’s retirement policies?

Q: Which president created the foundation of America’s retirement safety net by signing the Social Security Act?
A: President Franklin D. Roosevelt in 1935

Q: Which president strengthened protections for workers’ pensions by signing the Employee Retirement Income Security Act?
A: President Gerald Ford in 1974

Q: Which president signed the Revenue Act that included the provision that became the 401(k)?
A: President Jimmy Carter in 1978

The day marks the weight of that role, the continuity of the office over time, and the commitment to serve the country at the highest level.

02/16/2026

How many ways can you pay for college? Loans, grants, savings and investments, to name a few.

This calculator can help you estimate how much you should be saving for college.