Hey, it’s Noah here. I’ve been sharing some financial planning tips in these blog posts lately, but I want to know what works best for you. Do you find the financial planning tips helpful, or would you prefer I focus more on the economy and interesting stories for a shorter, quicker read? Just reply to this email with your vote. As a Spokane financial advisor, I want to ensure that these Friday emails are useful, relevant, and easy to digest for people in Spokane. Thanks for your feedback!
Let's dive into a two-minute look at the economy, an interesting story, and a financial planning secret.
📊 Economy – Fed’s 2025 Prediction
At its June 18 meeting, the Fed kept rates steady at 4.25%–4.50% and now expects just two small rate cuts by the end of 2025, fewer than previously projected. Chair Powell emphasized uncertainty, pointing to risks from tariffs, rising wages, and geopolitical tensions in Iran and Ukraine that are keeping inflation high.
The Fed forecasts:
- GDP growth slowing to 1.4% in 2025
- Unemployment rising to 4.5%
- Inflation staying around 3.0% through 2027
This signals slower growth and persistent inflation, prompting a more cautious stance on rate cuts. For anyone reviewing their retirement plan or investment strategy, especially here in Spokane, now’s a good time to revisit your approach with a trusted Spokane financial advisor.
🌍Interesting Stories – AI Took Away 3.5% of White-Collar Jobs
White-collar jobs at publicly traded U.S. companies have dropped by 3.5% over the past three years, driven by AI-driven efficiency gains. These job reductions are unique—they’re not tied to a recession but are happening during periods of strong corporate profits. This marks a shift in how companies view workforce size and automation.
Today, hiring depends on whether tasks can be automated, leading to:
- Smaller teams
- Heavier workloads
- Fewer advancement opportunities
Some experts estimate that 30–40% of white-collar jobs could be replaced or reshaped by AI over the next decade. For professionals in cities like Spokane, getting ahead of this curve could be important. If you're concerned about how AI might impact your financial future, work with a Spokane advisor who understands the impact of technology and create a long-term plan that can withstand a potential AI-job market shift.
💡Financial Planning Secret – Washington’s Estate Tax Exemption Jumps to $3M
Starting January 1, 2026, Washington State will increase its estate tax exemption from $2.193 million to $3 million per individual.
Key changes include:
- Estates valued at $3 million or less will owe no state estate tax
- The exemption will rise annually with inflation
- However, the top estate tax rate will increase from 20% to 35% on estates over $9 million, making Washington’s estate tax the highest in the country at the state level
For families and retirees in Spokane, these changes highlight the need for proactive estate planning. A local Spokane financial advisor can help you assess whether your estate is exposed and develop strategies to minimize future tax burdens.
To talk with a Spokane financial advisor, schedule a no-cost, no-commitment discovery call today.
About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, helping retirees with $ 1M+ maximize their 401(k) with Roth conversions and tax strategies.
- No commissions or insurance
- Investment management, tax and financial planning
