I celebrated my birthday last weekend with a trip to Mt. Spokane—a perfect bluebird day. It was amazing! As a firm, we're kicking off the year with exciting client events, so stay tuned. Now, let's dive into a two-minute look at the economy, an interesting story, and a financial planning secret.
Economy – U.S. Growth & AI Disruption
The U.S. economy grew at a 2.3% annualized rate in Q4, down from 3.1% in Q3. Consumer spending remained strong, but business and government spending slowed. This is the first estimate, with two revisions expected in the coming months.
Meanwhile, DeepSeek, a Chinese AI company, is shaking up the tech industry by delivering top-tier AI performance at a fraction of the cost. Its app is now the most downloaded on U.S. iPhones, spooking AI investors. Nvidia lost over $600 billion in market value—the largest single-day market cap drop in history.
Interesting Story – Deadliest U.S. Aviation Accident in Two Decades
For over 15 years, the United States has set a global benchmark for aviation safety. However, that streak came to a tragic end Wednesday night when an American Airlines regional jet collided midair with a U.S. Army helicopter near Washington, D.C., killing all 67 people aboard. The deadliest U.S. aviation accident in over two decades, this disaster has reignited concerns about ongoing safety issues in the industry. The investigation could take over a year.
Financial Planning Secret – Donor Advised Fund
A donor-advised fund (DAF) is a tax-efficient way to give to charity while reducing taxes. By donating real estate, stock, or cash, you receive an immediate tax deduction and avoid capital gains taxes. You also control how the money is invested and when it is distributed to nonprofits.
Many retirees pair a DAF with a Roth conversion to minimize taxes on their IRA or 401(k) RMDs. If you're wondering whether a Roth conversion makes sense in 2025, check out our article: "Should I Do a Roth Conversion in 2025?"
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About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping retirees with 401k tax strategies.
- Fiduciary. No commission, no insurance products
- Offering investment management and financial planning
