Walmart is Winning Over the 1% | Stewardship Concepts Financial Advisors

Happy Friday, everyone! Yesterday, our Stewardship Concepts team reflected on the past year and strategized how to better serve our clients in 2025. Afterward, we headed to Lilac Bowling for some fun. We played two rounds—Amy won one, and I won the other. We’ve decided to settle the tiebreaker next year, so stay tuned! Thank you for joining me today for two minutes on the economy, an interesting story, and a financial planning secret.

Economy – Inflation Decided Election

Inflation has cooled from its peak down to 2.6% in October. However, core expenses like housing, food, and energy remain stubbornly high for most households. The “average household” isn’t feeling the same relief as the official inflation rates suggest.

Here’s a breakdown:

For a one-income household of three (parents and one child) without daycare expenses, core costs consume 73.5% of income.

With childcare, that jumps to 97.6% of income—leaving almost no room for savings or discretionary spending.

Two-income households fare better, with core costs at 36.7% without childcare and 48.8% with childcare.

For prices to fall meaningfully, consumer spending must decrease significantly (often tied to recessions), or new, cheaper competitors must disrupt the market.

While the Federal Reserve and economists might be encouraged by slowing inflation growth, many Americans feel differently. Post-election surveys reveal inflation and high prices were top concerns for voters. Policies on both sides of the aisle have the potential to impact prices further, for better or worse. Tariffs and labor market changes may have more negative effects, while others may have positive effects, like boosting productivity through tax cuts and regulatory reduction. Here's a financial planning tip: Let’s jump in!

Interesting Story – Walmart is Winning Over the 1%

It's time to change your perspective on Walmart! This quarter, Walmart is celebrating big wins from an unexpected source—the wealthier shoppers. The retail giant reported gaining market share from customers earning $100K+ annually, a group typically far from Walmart in higher-end stores like Whole Foods.

Here’s what’s driving the shift:

Walmart has started introducing premium store-brand groceries and expanded its electronics and home goods offerings, appealing to higher-income earners.

Customers in the $100K+ income bracket accounted for 75% of its market share growth last quarter.

Strong holiday sales projections and popular items like Apple AirPods and toys suggest Walmart’s strategy has staying power.

To maintain this momentum, Walmart plans to expand its e-commerce offerings and improve delivery services to compete with Amazon.

Financial Planning Secret – Backdoor Roth IRA

A backdoor Roth IRA isn’t an official account type but rather a strategy for high-income earners who exceed the income limits for contributing to a Roth IRA. By making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA, individuals can enjoy the tax-free growth and withdrawals that Roth IRAs offer—without being subject to the usual income restrictions.

Things to keep in mind:

This strategy is for those who make $146k filing single or $230k filing jointly.

A backdoor Roth IRA is a great alternative to a brokerage account because it avoids tax on interest, income, or capital gains.

The strategy doesn't work well if you have a SIMPLE, SEP IRA, or IRA.

This is a complex strategy with many nuances that aren't covered in this short paragraph. For more information, check out this link.

If you’re looking to fine-tune your financial plan or navigate today’s economy, schedule a no-cost, no-obligation discovery call with one of our Spokane financial advisors.

Have a great Thanksgiving, and I'll talk to you soon.