KF Update – New Tax Legislation and Business Updates

7 Minute Read 
 
I hope you’re doing well and enjoying your summer! I wanted to share some important details about the recently passed tax legislation. We’ve also made some exciting additions and updates to the Kane Financial team. I hope you find this information helpful.

Markets & Economy 
Here are the 2025 year to date returns of several notable asset classes:
 
Dow Jones – Large US Value Companies – 5.54%
S&P 500 – Large US Companies – 9.42%
Nasdaq – Large US Growth Companies – 9.31%
Russell 2000 – Small/Mid US Companies – 2.14%
MSCI EAFE – Large International Companies – 21.12%
Barclays Bond Index – Aggregate US Bonds – 3.60%
Gold – 28.15%
Silver – 34.01%
Bitcoin – 24.50%
*source Kwanti as of July 28th, 2025

We have seen a swift rebound in equity markets after the early spring selloff caused by tariff and inflation uncertainty.  Major indexes have not only recovered, but are in positive territory for the year, as highlighted above.  Economic data in the United States and abroad continues to be strong, particularly consumer spending. 

The reason we focus so closely on consumer spending is that it makes up almost three quarters of gross domestic product (GDP) in the United States.  A simple analogy I use is to equate GDP to a household’s income.  If a household earns $100,000, consumer spending accounts for $75,000!  That is why that metric along with consumer confidence & sentiment is so important, and metrics we monitor closely.

Over the coming weeks we will be making updates to client portfolios, with a small increase to international companies.  In short, many of the fundamentals, particularly price to earnings ratios of international companies have become extremely attractive.  If you have any questions on these updates, please don’t hesitate to contact our office.  Here is a detailed analysis behind the update:

Kane Financial Investment Update

KF Team Updates
We’re excited to share that Danielle Hartman has joined Kane Financial as an Investment Advisor Representative and Investment Analyst, having recently passed her Series 65 exam. In this role, Danielle will help strengthen our investment management program, with a focus on:

• Executing ongoing trading and portfolio rebalancing
• Conducting investment research and due diligence
• Overseeing portfolio monitoring to ensure alignment with client goals and market conditions

Danielle brings a unique blend of business leadership and investment strategy to the team. Before joining Kane Financial, she held senior roles in the Consumer-Packaged Goods industry. Most recently, she was the Managing Director of Marketing & Ecommerce at SHEN Beauty, leading all digital sales growth and marketing initiatives. Prior to that, she served as the Global Director of Consumer Experience at Edgewell Personal Care, where she oversaw global e-commerce strategy and operations.

She also brings an entrepreneurial spirit, having founded and currently serving as President of a Rochester-based Investment Club that promotes investment strategy and overall financial literacy for its members.

Renee Jarosz, our longest-tenured team member, has recently celebrated her fourth year at Kane Financial and has been promoted to Chief Operating Officer. In this new role, she will oversee all aspects of our operations and client service platform, as well as the key daily functions of our office. Renee has been instrumental in developing our operations and client service platform from the ground up and is eager to take on this new responsibility and continue to build an exceptional service model for our clients.

Kristi Kosmoski recently celebrated her first anniversary at Kane Financial. Although her title remains unchanged, she will be assisting Renee with a significant portion of the day-to-day operations and client service, as well as many of our compliance responsibilities.

I cannot put into words the excitement I feel to have such a talented team of individuals supporting our clients. I eagerly anticipate the opportunity to meet with you and showcase the numerous new initiatives we have planned to enhance the client experience.

Tax Legislation (Below I have attached the updated tax tables)
Earlier this month, the Tax Cuts and Jobs Act of 2017 was extended along with several important changes.  Below are the highlights of the legislation.  There is a lot here, don’t worry about remembering it all as I will be discussing these changes at our next meeting, and review any that may affect your individual financial situation.

• The standard deduction rose from $15,000 to $15,750 for single filers, and from $30,000 to $31,500 for married filers.  All else remaining equal, clients should see a small reduction in taxes from this change.
• Those age 65 and over will receive an additional deduction of $6,000 per person, $12,000 per couple.  This came as a compromise to eliminating social security taxes all together.  Think of it as an add on to the standard deduction.  If you are age 65 or older, all else remaining equal, your tax bill will go down.  As far as opportunities, Roth Conversions become even more attractive to clients 65 and older.
• The Child Tax Credit increased from $2,000 per child to $2,200 per child, and going forward will be indexed for inflation.
• The SALT cap increased from $10,000 to $40,000.  Essentially, if you itemize and pay more than $10,000 in real estate taxes, this will be a benefit for you.
• An additional deduction for tip and overtime income up to $25,000.
• You can now deduct $1,000 of charitable contributions for single filers, $2,000 for joint filers, even if you do not itemize, so save those charitable receipts!
• New ‘Trump Accounts’ for children born 2025 – 2028, a $1,000 contribution would be made from the United States treasury and parents/grandparents can contribute an additional $5,000 per year.  These are tax advantaged accounts, meaning the funds grow tax free until distributions.  More to come on this, we haven’t had any guidelines as far as who would custody these accounts.

We hope you find this information helpful, and look forward to seeing you all soon.
 
Best, 
Clint, Renee, Kristi, & Danielle