Prescott Private Wealth Inc.

07/14/2025

This weeks Market Overview. This is what you will want to understand about the week ahead for the markets and the economy.

Stay ahead of the financial game with this week’s Weekly Market Update! We break down the critical economic and geopolitical events shaping your money moves. From President Trump’s new 30% tariffs on EU and Mexico imports to the kickoff of Q2 earn...

06/20/2025

🔥 Did you know that the top 10% of earners account for nearly half of all U.S. consumer spending?

According to a 2025 report in "The Wall Street Journal", high earners (those making $250K+) are keeping the economy afloat, while much of the country tightens its belt.

Here are a few key takeaways:

👀 The top 10% now drive ~50% of consumer spending—up from 36% in the 1990s.

👜 The top 10% spent 10% more on luxury goods abroad compared to the prior year.

⚖️ This creates risk—if wealthy households scale back their spending due to market declines, the effects could ripple through the broader economy.

📊 Spending power is more concentrated than ever—making the economy more vulnerable to the behaviors of a small group.

👉 As this trend continues, it’s worth watching how shifts in markets or inflation might impact consumer spending and economic resilience.

06/19/2025

Here’s a look at what goes into creating a \$20 bill and what determines when a bill’s lifespan ends.

How long does a $20 bill last?

06/17/2025

How much could you receive from Social Security? Here’s what to expect.

Calculating your potential Social Security benefit is a three-step process.

06/13/2025

Is the Dow Jones Industrial Average still the gold standard for tracking the stock market?

According to a February 2025 article in “The Wall Street Journal”, the Dow’s relevance is being questioned due to its purported outdated structure and methodology.

Here are some key points to consider:

📉 The Dow is an unmanaged index generally considered representative of large-capitalization companies on the U.S. stock market.

🏢The Dow uses a price-weighted system, meaning that companies with higher stock prices have more influence, regardless of their overall market value.

🔄 Tech is underrepresented—Meta and Tesla are absent, while Apple and Microsoft carry less weight than in the S&P 500, where tech plays a larger role.

📉 Performance gap: The Dow has trailed the S&P 500 in recent years, exposing differences between the indices. The S&P 500 Composite Index is a market-capitalization weighted index that is considered representative of the overall U.S. stock market.

🏢 Index performance does not reflect the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index.

As financial professionals, we believe benchmarks can offer useful context—but on their own, they rarely reflect the goals or risk tolerance that most investors actually need.

06/12/2025

You can start Social Security benefits as soon as you reach 62. Know the rules before deciding.

Monthly Social Security payments differ substantially depending on when you start receiving benefits.

06/11/2025

“The four most dangerous words in investing are: ‘This time, it’s different.’”
– Sir John Templeton

It’s normal to feel uneasy during periods of market volatility—especially when uncertainty around policies, the economy, or tariffs adds to the noise.

Nevertheless, history offers some perspectives that are hard to ignore.

Here’s what the data shows:

▪️ Missing just the 10 best days in the market over the last 30 years cuts your return in half.
▪️ Past performance does not guarantee future results.
▪️ Missing the 30 best days in the market cuts your total return by 83%.
▪️ Stocks are represented by the Standard & Poor’s Composite Index. However, index performance does not necessarily reflect the past performance of any particular investment.
▪️ Here’s the kicker: 78% of those “best days” happen during bear markets or within the first two months of a recovery.

Markets move fast. Reacting to short-term headlines might feel like playing defense—but over time, investors with a disciplined approach often come out ahead.

We help clients maintain perspective, manage risk thoughtfully, and focus on what’s within their control. Remember, however, that the return and principal value of stock prices will fluctuate as market conditions change. Moreover, shares, when sold, may be worth more or less than their original cost.

If you’re wondering whether your investment strategy is built for times like these, let’s talk.

06/10/2025

Could your portfolio benefit from a zero-coupon bond?

Understanding some basic concepts may help you assess whether zero-coupon bonds have a place in your portfolio.

06/05/2025

Think you’re saving money by not having health insurance? Think again. Medical debt can be a major cause of financial woes. Read more now.

Learn about the risks of not having health insurance in this informative article.

06/05/2025

Nearly half a million Americans were victims of tax identity theft in 2024. Could you be next?

Here’s how it happens:

A scammer uses your personal info—like your Social Security number—to file a fake tax return and claim a refund.

When you file your real return, it’s rejected. Then comes the paperwork, delays, and frustration.

The good news: according to a 2025 report in “The Wall Street Journal”, there’s a simple way to protect yourself.

✅ The IRS offers a six-digit Identity Protection PIN (IP PIN) designed to prevent fraud. If a return is filed without the proper IP PIN, it’s automatically rejected.

✅This PIN is unique, is changed annually, and can even be issued for your dependents.

✅ It also helps manage delays caused by “false positives”—returns that are flagged incorrectly for fraud.

If you filed an extension and plan to submit your return by October, now’s the time to take action. Taking this small step now could help you avoid a major headache later.

This post is not a substitute for professional advice. If you have more questions, we encourage you to consult your tax, legal, or accounting professional.

06/03/2025

Have you considered how long-term-care costs could affect your retirement budget? Find out more.

Determine your potential long-term care needs and how long your current assets might last.

06/02/2025

What happens when inflation sticks around and the economy slows down?

That’s the concern the Federal Reserve shared in its latest meeting. With rising trade tensions and the potential for new tariffs, Fed officials warned that we could be heading toward a tricky economic crossroads: higher costs without the strong growth to match.

So what does that mean for you?

If inflation remains high, everyday essentials—from groceries to gas—could stay expensive. And if growth slows, it may be harder to see progress in wages, savings, or investments. That’s why the Fed is holding interest rates steady for now and watching the data closely.

It's a reminder that the bigger economic picture can have a real impact on your financial life, whether you're spending, saving, or investing.

Officials were concerned that tariffs could aggravate inflation and create a difficult quandary with interest rate policy.