Opinion | The Big Picture: AI, Crypto, and a Shifting Investment Landscape
By Jan Gleisner, CEO | Hafnia Financial Inc. Artificial Intelligence isn’t coming — it has already arrived. And if recent earnings reports, corporate capital expenditures, and M&A activity are any indication, the largest players in the global economy are doubling down. Microsoft, Alphabet, Amazon, Meta, and Apple have collectively poured over $200 billion into AI infrastructure, data centers, and talent acquisition in the past 18 months alone, according to PitchBook and public 10-Q filings from each firm (PitchBook, 2024 AI Infrastructure Report (1); Microsoft Q2 FY2024 Earnings (2)). This race is about owning the rails of tomorrow’s digital economy. OpenAI, backed by Microsoft, and Anthropic, which has secured multi-billion-dollar funding from both Google and Amazon, have demonstrated that having deep pockets isn’t just an advantage — it’s a requirement. “The barrier to entry in foundation models is increasing, not decreasing,” notes a 2024 report from Stanford’s Institute for Human-Centered AI (Stanford HAI Foundation Model Transparency Index (3)). As AI embeds itself in everything from supply chains to search engines to customer service bots, the investing public is grappling with a hard truth: this is an oligopoly. For now, betting on the “big boys” may be the only sensible strategy. As Goldman Sachs notes, AI spending is becoming “central to capital allocation decisions across the S&P 500” (Goldman Sachs Global Investment Research, July 2024 (4)). At the same time, another technology once seen as fringe is moving toward the mainstream: cryptocurrency. The U.S. Securities and Exchange Commission’s begrudging approval of spot Bitcoin ETFs in early 2024 marked a turning point (SEC Press Release, January 2024 (5)). While regulatory ambiguity still plagues the industry — just ask Coinbase or Ripple — the direction of travel is becoming clearer. Congress is considering bipartisan bills like the Financial Innovation and Technology for the 21st Century Act (FIT21)(6), which would give the Commodity Futures Trading Commission (CFTC) oversight of digital commodities, reducing jurisdictional overlap with the SEC (Congress.gov – H.R.4763 FIT21 (6)). “The U.S. is finally starting to take crypto seriously as a financial instrument, not just a speculative sideshow,” says Kristin Smith, CEO of the Blockchain Association (Fortune, Jan 2024(7)). Major financial institutions seem to agree. Fidelity, BlackRock, and JPMorgan are all quietly building infrastructure for digital assets (Bloomberg, March 2024 (8)). Meanwhile, consumer-facing fintechs like PayPal and Robinhood are expanding their crypto offerings, even rolling out stablecoin-based payments (PayPal Press Release, Aug 2024(9)). The broader economic picture remains messy. Global trade policy is in a state of flux. The U.S.-China relationship continues to veer between confrontation and cautious engagement, as evidenced by tensions over semiconductors and rare earth minerals (Council on Foreign Relations – U.S.-China Trade Tracker (10)). Meanwhile, tariff battles and supply chain reshoring initiatives — especially under the CHIPS and Science Act — are altering long-held assumptions (U.S. Department of Commerce – CHIPS Act Updates, 2024 (11)). In this environment, the classic passive approach may no longer be enough. “Broad market exposure masks a lot of underperformance,” says Liz Ann Sonders, Chief Investment Strategist at Charles Schwab. “This is a stock-picker’s market now.” (Schwab Market Perspective, July 2024(12)). Themes that defy the old playbook — like AI infrastructure, regulated digital assets, or nearshoring beneficiaries in Mexico and Southeast Asia — demand a more tailored, active approach. Patterns are breaking. Assumptions are failing. Precision is not optional. References Pitch Book. (2024). AI Infrastructure Report. (2024). Q2 FY2024 Earnings Report. Stanford HAI. (2024). Foundation Model Transparency Index. Goldman Sachs. (2024). Global Investment Research, July 2024. S. SEC. (2024). Approval of Spot Bitcoin ETFs. Press Release, January 2024. gov. (2024). H.R.4763 – FIT21 Act. (2024). Crypto Becomes a Financial Instrument. January 2024. (2024). Wall Street Builds Crypto Infrastructure. March 2024. (2024). Launch of Stablecoin Payments. Press Release, August 2024. Council on Foreign Relations. (2024). U.S.-China Trade Tracker. S. Department of Commerce. (2024). CHIPS and Science Act Implementation. (2024). Market Perspective, July 2024. DISCLOSURE: HAFNIA FINANCIAL, INC., is a registered Investment Adviser. Information presented, and general correspondence are provided for educational purposes only and not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. This correspondence and information are not intended to provide investment, tax, or legal advice. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. Insurance products and services are offered and sold through Jan Gleisner an individually licensed and appointed insurance agent, CA Ins Lic # 0D77385.
High Dividend Portfolio with Tax Advantages
A Master Limited Partnership (MLP) is a type of investment—usually in the energy industry—that works like a stock but gives you high income and tax advantages. You invest in a pipeline or energy company (like oil or gas transportation). They pay you regular cash distributions (like dividends), often 6–9% per year. Most of that income is tax-deferred, meaning you don’t pay taxes on it right away. You get steady income. You avoid taxes on most of that income for years, until you get back what you originally invested. Ideal for people looking for cash flow in retirement or tax-smart investing. This example involves investing $500,000 in Master Limited Partnerships (MLPs) to generate high, mostly tax-deferred income, and later using charitable giving to continue receiving tax benefits once the investment has paid back its original value. Step 1: Earning 8% Tax-Deferred Income as an example Investing $500,000 in MLPs paying 8% annually provides $40,000 per year in income. Most of this is considered a return of capital, which means you don’t pay income tax on it immediately. Step 2: Tax Impact in Your Bracket Assuming you’re in the 24% federal and 9.6% California income tax brackets, normally you’d owe $13,440/year in taxes on $40,000 of income. With MLPs, this income is mostly tax-deferred for over 12 years. Chart: Estimated $13,440/year in tax savings through tax deferral. Step 3: When Principal is Repaid After about 12.5 years, you’ve received your $500,000 back through the annual dividends. Future income is now taxable unless you take further action. Step 4: Charitable Giving for Continued Tax Savings Once MLP income becomes taxable, you can donate $50,000/year in dividends or shares to charity. This avoids taxes and earns you a deduction worth $16,800/year at your combined tax rates. Summary of Benefits Strategy Step Benefit Invest $500K in MLPs paying 8% $40K/year mostly tax-deferred for 12+ years Tax deferral No federal or CA tax until capital is repaid Post-tax phase Donate income or shares to charity Charitable donations Avoid tax + receive $16.8K/year deduction DISCLOSURE: HAFNIA FINANCIAL, INC., is a registered Investment Adviser. Information presented, and general correspondence are provided for educational purposes only and not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. This correspondence and information are not intended to provide investment, tax, or legal advice. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. Insurance products and services are offered and sold through Jan Gleisner, an individually licensed and appointed insurance agent, CA Ins Lic # 0D77385.
HSA, Health Savings Accounts
Trump’s 2025 Tax Plan Aims to Supercharge Health Savings Accounts Health Savings Accounts (HSAs), long favored by savers seeking a triple tax advantage on medical expenses, could soon get a major facelift under former President Donald Trump’s 2025 tax proposal, recently passed by the House. Dubbed the “One Big Beautiful Bill,” the sweeping legislation includes significant changes aimed at expanding access to and increasing the utility of HSAs for millions of Americans. Doubling Contribution Limits One of the most consequential shifts is the proposal to double the annual contribution limits. Under the plan, individuals could contribute up to $8,600 annually, while families may be allowed up to $17,100. This marks a dramatic increase from current limits of $4,150 and $8,300, respectively (as of 2025). The increases may begin to phase out for higher-income households—those earning more than $75,000 for individuals and $150,000 for married couples. Expanded Eligibility Another notable reform may allow working seniors on Medicare Part A to contribute to HSAs, a reversal of a long-standing rule that effectively excluded retirees from this popular savings vehicle. Additionally, married couples may be allowed to make catch-up contributions to the same account, rather than splitting them into separate ones—a move aimed at simplifying HSA planning. More Ways to Spend, More Ways to Save The proposed legislation may also expand the types of expenses HSAs can cover. Gym memberships, fitness programs, and other wellness-related services may become eligible for tax-free reimbursement, in a bid to encourage preventive care and healthier lifestyles. Another important tweak: individuals may be permitted to use HSA funds for medical expenses incurred up to 60 days before officially opening the account, provided they were already covered by a high-deductible health plan. That flexibility could benefit those who experience sudden medical costs early in the plan year. Finally, the bill may ease rules around account transfers, allowing more Americans to roll over funds from Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) into HSAs, consolidating health funds in a single, tax-advantaged account. What’s Next? While the bill passed the House largely along party lines, its fate in the Democrat-controlled Senate remains uncertain. Negotiations are expected to continue into the summer, and revisions are likely. For now, our position is to stay informed but not make any immediate changes. If passed in its current form, the bill’s HSA provisions may take effect in 2026. Source: https://www.congress.gov/bill/119th-congress/house-bill/1/text DISCLAIMER: www.hafniafin.com, information therein, and general correspondence are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice. Insurance products and services are offered and sold through Jan Gleisner an individually licensed and appointed insurance agent, CA Ins Lic # 0D77385.
Prospective 2025 Tax Breaks
Prospective 2025 Tax Laws Explained: What It Means For Your Wallet -from Bigger Deductions to MAGA Savings Accounts In a landmark budget bill narrowly passed by the House this week, Americans are facing some of the most significant tax changes since 2017. While the bill still awaits action in the Senate, the House version already offers a clear glimpse at how federal tax rules may shift starting in 2025 — and what that might mean for families, workers, and small business owners. This article breaks down the major tax provisions of the bill, focusing on three main areas: extended tax cuts, the creation of MAGA (or “Trump”) Savings Accounts for children, and a major revision to the SALT deduction. Let’s walk through them in plain English. 1. Permanent Extension of the Trump-Era Tax Cuts One of the core features of the bill is the permanent extension of the individual tax cuts originally passed in 2017 under the Tax Cuts and Jobs Act. Without Congressional action, those cuts were set to expire after 2025. Here’s what stays under the new law: – Lower Income Tax Brackets Stay in Place – 20% Pass-Through Deduction Made Permanent for pass-through entities (Sole proprietorships, S corporations, Partnerships, Some LLCs) – Standard Deduction Gets a Boost – Child Tax Credit Raised (Temporarily) – New Exemptions: Tips, Overtime Pay, and Car Loan Interest 2. MAGA (Trump) Savings Accounts: A New Option for Children The bill introduces a brand-new type of government-backed tax shelter: the MAGA account, now officially called the Trump Savings Account. Here’s how they work: – Who Qualifies: Children born between January 1, 2024, and December 31, 2028 – How They’re Funded: $1,000 from federal government, up to $5,000/year from others – How to Open One: Through approved financial institutions – How the Money Grows: Invested in low-cost equity index funds, tax-deferred – Withdrawals: Partial access at 18, full access by 30 – Tax Benefits: Growth taxed at long-term capital gains rates 3. SALT Deduction Cap Raised to Help High-Tax States SALT stands for State and Local Taxes, and under current law, taxpayers can only deduct up to $10,000 in state and local tax payments from their federal return. What’s changing: – Cap raised to $40,000 for incomes under $500,000 – Deduction phases out gradually above $500,000 – Particularly beneficial for residents of high-tax states like CA, NY, NJ What Does It All Mean? For most taxpayers, this bill (if passed into law) means: – Lower income taxes remain in place – New deductions for tips, overtime, and auto loan interest – More support for families through higher child tax credits (Current credit per child: $2,000, Increase through 2028: Temporarily boosted to $2,500 per child)Post-2028: Reverts to $2,000 per child, Refundable portion (the part you might get as a refund): Up to $1,700 in 2025 – A new way to save for kids’ futures with MAGA/Trump accounts – Increased tax relief for people in high-tax states via the SALT deduction As of today, the list of financial institutions offering this MAGA savings account have not been published. Stay tuned for updates as the Senate reviews the bill. Source: https://www.congress.gov/bill/119th-congress/house-bill/1/text DISCLAIMER: www.hafniafin.com, information therein, and general correspondence are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice. Insurance products and services are offered and sold through Jan Gleisner an individually licensed and appointed insurance agent. CA Ins Lic # 0D77385.
Unprecedented Market Changes
Unprecedented Event Why Today’s Reaction Could Be the Start to the Next “2008” or “Covid” Moment in the Markets Today, the stock market experienced a dramatic and historic selloff—one that may ultimately be remembered alongside 2008 and the Covid crash of 2020. The velocity and magnitude of the decline left even seasoned investors stunned. While the specific catalyst is still being dissected, the overall message from the markets is clear: uncertainty has returned in force, and capital is running for cover. This Is Not Normal. This Is a Shift Made by the US President. Major indices plunged from the opening bell and never found footing. Breadth was overwhelmingly negative, volatility spiked, and sectors that had shown relative strength were suddenly caught in the storm. This wasn’t just a tech unwind or a rotation out of high-beta names—this was indiscriminate selling, and it often signals something deeper. Our Strategy Was Working—Until the Game Changed Our positioning heading into this event reflected a high-conviction, long-term thesis. Our recent additions of European defense contractors and German infrastructure companies had been performing well. These were selected not just for their fundamentals, but for their strategic value in a reshaping global landscape—rising defense budgets, EU-backed infrastructure upgrades, and a post-pandemic rebuild narrative. And while we continue to believe these companies will deliver value over the long term, even the best strategies are not immune to the effects of a global trade war or financial panic. Today was a powerful reminder of that. No Reason to Ride It Down In volatile environments like this, the smartest position can be no position. We are choosing to sit on the sidelines, protect capital, and wait for confirmation that the market has found a bottom. Trying to guess where that bottom lies is a dangerous game. We have seen too many investors try to “buy the dip” during moments like this—only to watch it dip further, and harder. Cash is a position. Patience is a strategy. We will Be Watching Closely For: Capitulation signs—volume spikes, volatility blowouts, and technical washouts Bond market behavior—particularly credit spreads and liquidity gaps Policy response—whether central banks or governments step in Market internals—like relative strength, sector rotation, and breadth recovery Tarif negotiations In Summary Today changed the tone of the market. What started as concern may now be evolving into crisis—and while we are not sounding the alarm bells of a full-blown meltdown yet, we are adjusting accordingly. We remain confident in our long-term strategy. The themes we are currently invested in are defense, infrastructure, and de-globalization—are not going away. But right now, capital preservation takes precedence. We will wait, observe, and act when the dust settles. The opportunity will come again and just like it did after the 2008 collapse and just like it did with vaccine stocks and after Covid. Hafnia Financial, Inc., is a registered investment adviser. Information presented is for educational purposes only and is not intended to make an offer or as a solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Impacts to Global Investments
The Administration’s Authoritarian Ambitions May Affect Global Investments Money is Green. Not Red or Blue. I am always writing from the standpoint of a money manager as we are privileged to manage their assets and their trust. I see and say things the way they are. This article is not a political debate. Rather an attempt to decipher the current state of the union. The economic future in the United States is marked by significant uncertainty, a situation that could ripple across global markets. Stock markets, historically sensitive to instability, tend to react negatively to such uncertainty. For those involved in global investments, monitoring developments in the US to understand the direction of its economic policies under the current administration is critical, and time consuming. Unclear Economic Plans in the US The current administration’s economic policy appears to lack a well-structured, coherent strategy, raising concerns about its long-term stability. There has been widespread speculation and over-interpretation about the intentions behind current US policies. While some may argue that there’s a larger, undisclosed plan, there’s little concrete evidence to suggest a comprehensive strategy is at play. The administration has proposed several bold economic measures that could reshape US policy dramatically. These include: Trade War: The US has already imposed tariffs on steel and aluminum from various countries, with additional tariffs threatened on goods from China, Canada, Mexico, and potentially the European Union. If these tariffs escalate, it could trigger a global trade war. [i] Currency Manipulation: Economic advisors within the administration have floated the idea of leveraging US military power to force both allies and adversaries into a currency agreement that would weaken the US dollar, thereby making American exports more competitive. [ii] Debt Restructuring: Discussions are also circulating around restructuring US debt, particularly by forcing foreign investors who hold short-term US government bonds to convert them into long-term bonds, potentially lasting 50 or 100 years. This would allow the government to delay repayments, shifting the debt burden further into the future.[iii] Unfunded Tax Cuts: The administration’s tax cuts, intended to boost US competitiveness, could add an estimated $4.6 trillion to the national debt over the next decade, according to Senate budget experts. [iv] Uncertainty About the Rule of Law: Growing concerns exist regarding the administration’s respect for judicial decisions, which could erode legal certainty and affect international investors’ confidence in US government bonds. [v] The potential consequences of these proposed changes could be far-reaching, affecting not only the US economy but the global economic landscape as well. The State of US Economic Policy Economists agree that there is no clear or well-thought-out economic plan emerging from the current administration. Instead, what is unfolding appears to be a protectionist approach, often described as “mercantilism.” This philosophy hinges on the belief that international trade is a zero-sum game, where one country’s gain is another’s loss. This perspective significantly influences the administration’s stance on trade negotiations, where the goal seems to be to create economic advantages for the US at the expense of other nations.[vi] Risk to Global Competitiveness A central concern regarding the US’s current economic approach is the potential for a global trade war. The administration has imposed tariffs, believing that these measures will force companies to move production to the US, thereby creating domestic jobs. However, economists warn that this strategy could backfire, making US industries less competitive rather than more. [vii] The disruption of global supply chains—vital to modern manufacturing—could lead to higher production costs in the US, which would, in turn, make American products less competitive on the global market. In this scenario, tariffs could ultimately harm US industries rather than benefit them. Impact on Global Investments While the policies of the current administration primarily affect the US economy, the US is such a dominant economic player that its decisions have significant repercussions for global markets. As a result, concerns have been raised about the risks associated with continued investment in the US, particularly under the current leadership. The US has traditionally been seen as a safe-haven for investors, thanks to its stable financial system and trusted currency. However, recent shifts in policy and rhetoric have raised questions about the long-term stability of US financial markets. The risk of destabilizing moves, such as those outlined in the Mar-a-Lago Accord, could undermine investor confidence in the US economy.[viii] The Mar-a-Lago Plan A particularly concerning proposal is the Mar-a-Lago Accord, a controversial economic plan that could involve forcing major global economies into a currency agreement that weakens the US dollar. While this would make American exports more competitive, it could also lead to significant financial instability and disrupt global economic relations. The plan also includes restructuring US government debt, potentially converting short-term bonds into long-term ones. This would delay repayment to foreign bondholders, pushing the debt burden into the distant future. The strategy could create instability in the global financial system if it were implemented. Moreover, the administration has suggested using US military power to enforce these economic and currency policies, intertwining global security concerns with economic interests. This could strain relations with key economic players, such as China and the European Union, and raise the likelihood of geopolitical tensions. [ix] If such measures were enacted, the US could lose its standing as a reliable financial haven. Investors who hold US government bonds could face substantial losses if the US were to default or fail to honor its debt obligations. Positive Shifts in Europe Signal Potential Economic Growth Recent political developments in Europe have raised optimism among investors, marking a shift in the region’s economic outlook. Germany’s decision to abandon its long-standing fiscal restraint, often referred to as the “debt brake,” in favor of increased investments in defense and infrastructure comes as a surprise to many. For years, such a policy change seemed highly unlikely, yet it was recently endorsed in a referendum passed within a matter of weeks. If European leaders follow through on their commitment to enhance the business environment and ramp up public investment, it could
A Strategic Bet Amid Policy Shifts
Investing in European Defense Manufacturers In a seismic shift for Europe’s defense landscape, new fiscal policies and ambitious spending plans are positioning European defense manufacturers for long-term growth. The European Union recently announced a staggering expenditure of 870 billion US Dollars kroner earmarked for military modernization – a clear signal that defense will be at the forefront of the region’s economic agenda. It is important to note that, to date, there is no index available in the United States, for European defense manufacturers. You may see new names in your portfolio. These investments should be viewed as our attempt at making an unofficial index, not merely on an individual basis. We just don’t know which will potentially go up significantly or potentially down. Hence the approach of making an unofficial index. This historic investment comes as EU nations face renewed pressure to boost their defense spending relative to GDP. With member states required to increase the percentage of their GDP allocated to military budgets, the environment is set for sustained demand for cutting-edge defense technology and robust supply chains. Companies ranging from traditional military equipment, aerospace innovators, cyber defense firms are all now prime candidates for investment as governments scramble to meet these new spending targets. Moreover, the EU is rethinking its financial rules by easing restrictions on how much debt a country can incur. This policy change is designed to enable nations to fund their military build-ups without compromising economic stability or breaking EU budget rules. The shift signals a long-term commitment to defense preparedness, ensuring that European defense manufacturers have a stable flow of government contracts and strategic investments over the coming years. For investors, these developments offer a compelling case. The combination of unprecedented government backing, relaxed fiscal constraints, and a geopolitical environment that favors rearmament creates a fertile landscape for robust returns. With established players and nimble new entrants alike poised to benefit from this windfall, European defense stocks may offer an attractive hedge against broader market volatility and the uncertain dynamics of global security. The ongoing military build-up, supported by an EU willing to overhaul its fiscal rules, sets the stage for a new era in which defense contractors become not only strategic partners for governments but also lucrative opportunities on Wall Street. Remember money is Green. Not Red or Blue.
Why AI Companies Could See Massive Growth in the Future
Why AI Companies Could See Massive Growth in the Future Artificial Intelligence (AI) is not just a futuristic concept—it’s already changing the way we work, shop, drive, and even heal. From personal assistants like Alexa to self-driving cars, AI is rapidly becoming part of our daily lives. This technology has the potential to grow bigger than any invention we’ve seen, from the internet to smartphones. Here’s why AI-based companies could experience explosive growth moving forward: AI is Everywhere AI is being used in almost every industry. It powers personalized shopping recommendations on Amazon, automates repetitive tasks in offices, and helps doctors detect diseases early. As more companies adopt AI to save money and improve efficiency, the demand for AI products and services will only increase. Example: NVIDIA, a company that makes computer chips designed for AI, is seeing massive demand because its chips are the “brain” behind many AI systems. Source: NVIDIA’s Role in AI Growth – https://www.investors.com/news/sp-500-palantir-2024-stocks/ AI Saves Money and Time Businesses are turning to AI to automate jobs that are time-consuming and costly. For example, customer service chatbots can answer questions 24/7 without the need for human staff. Factories are using AI-powered robots to build products faster and more efficiently. This ability to save money makes AI technology very attractive to companies. Example: McKinsey predicts that AI could add $13 trillion to the global economy by 2030. Source: McKinsey Global Institute on AI’s Economic Impact – https://www.mckinsey.com/featured-insights/artificial-intelligence/the-future-of-ai/ AI is Still in Its Early Stages AI is like the internet in the 1990s—most of its potential hasn’t even been realized yet. Companies that invest in AI today are positioning themselves for long-term success. Just as companies like Amazon and Google became giants during the internet boom, today’s AI companies could see similar explosive growth. Example: The global AI market, worth $196 billion in 2023, is expected to grow to $1.8 trillion by 2030—a nearly tenfold increase! Source: Grand View Research on AI Market Growth – https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-ai-market AI is a Game-Changer for Industries AI is transforming fields like healthcare, transportation, and finance. In healthcare, AI systems are helping detect cancer earlier than ever before. In transportation, self-driving cars could eliminate traffic accidents caused by human error. The more industries AI disrupts, the more opportunities there are for AI companies to grow. Example: AI-powered tools like ChatGPT (from OpenAI) are being adopted by companies to improve communication and content creation. Source: OpenAI’s Role in Business Adoption – https://www.openai.com Conclusion: The AI Revolution is Just Starting AI-based companies are at the forefront of a technological revolution that could be bigger than anything we’ve ever seen. By saving businesses money, creating new opportunities, and disrupting industries, AI has the potential to drive massive economic growth. For investors, AI companies represent a chance to be part of the next big wave in technology. We are looking at expanding investments into the AI space. We feel that being on the forefront front could potentially benefit you, our clients as an actually AI index has not been defined yet. Neither has an AI sector. This could lead to huge potential as AI will be everywhere. Investor’s Business Daily (https://www.investors.com/news/sp-500-palantir-2024-stocks/) Palantir Is 2024’s S&P 500 King. These 9 Stocks Also Had Huge Gains. Palantir Technologies has more than quadrupled this year. https://www.investors.com/news/sp-500-palantir-2024-stocks/
Effective Fraud Prevention Tips
To protect yourself from fraud and identity theft, it’s important to take preventive measures, such as freezing your credit file with the three major credit bureaus: Equifax, Experian, and TransUnion. Since a Credit Freeze has better legal protection than a Credit Lock, it would make sense to place a Credit Freeze on your accounts with the 3 major credit bureaus. Quite frankly it seems strange to have the Credit Lock option available as it essentially does the same as a Credit Freeze, but without the same legal protections under US law. Fraud and identity theft can be financially devastating, but there are several strategies to protect yourself: Monitor All Your Financial and Insurance Accounts Regularly check your bank, insurance, and credit card statements for suspicious activity. Setting up account alerts can help you detect any unusual transactions immediately. Use Strong Passwords Use a mix of letters, numbers, and special characters for online accounts, especially financial ones. Consider using a password manager to securely store and generate complex passwords. Do not use the same password all the time. Never use same password for your non-financial accounts as for your financial accounts. Enable Two-Factor Authentication (2FA) Many banks and financial institutions offer 2FA, which adds an extra layer of security by requiring a second form of identification (like a code sent to your phone or email) in addition to your password. Beware of Phishing Scams Fraudsters often use emails, text messages, or phone calls to trick people into providing personal information. Avoid clicking on links or providing sensitive information unless you are sure of the source. Emails, Emails, Emails… You may get emails stating it from your bank, but in reality, the email is from a fraudster. The email might say peter.parker@bankof@bankofamerica.com, but if you actually check the email address it might actually be 24525htid@hotmail.com . if you Right-Click” on any email you can see the actual email address. Regularly Check Your Credit Report Under U.S. law, you are entitled to one free credit report per year from each of the three major bureaus. Checking these reports regularly can help you spot unauthorized accounts or suspicious activity. Major Credit Bureaus You can free of charge set up accounts with the 3 major Credit Bureaus, Experian, Equifax, and Transunion. How to Lock or Freeze Your Credit with the Three Major Credit Bureaus Locking or freezing your credit file can prevent criminals from opening new accounts in your name, as lenders are unable to access your credit report unless you unlock it. Equifax Credit Freeze: Visit the Equifax website, log in or create an account, and follow the instructions to freeze your credit. You can also call Equifax at 1-800-685-1111 to request a credit freeze. Credit Lock: Equifax also offers a service called Lock & Alert, allowing you to lock and unlock your credit report in real time via an app or online. Website: www.equifax.com Experian Credit Freeze: Visit the Experian website, create an account, and follow the steps to freeze your credit. You can also request a freeze by calling 1-888-397-3742. Credit Lock: Experian offers a service called CreditLock, part of its paid services, which allows for easier control over access to your credit file. Website: www.experian.com TransUnion Credit Freeze: Go to the TransUnion website and sign up for a free account to freeze your credit online or call 1-888-909-8872. Credit Lock: TransUnion offers TrueIdentity, a free service that allows you to lock and unlock your credit report instantly. Website: www.service.transunion.com Key Differences Between a Credit Freeze and Credit Lock Credit Freeze: Free under U.S. federal law and offers strong protection. It can be lifted temporarily or permanently online or by phone. Credit Lock: Often part of a paid service that makes it easier and faster to lock or unlock your credit file, though it may not offer as much legal protection as a freeze. Steps to Freeze or Lock Your Credit Visit each bureau’s website or call their customer service line. Provide your personal information, including your Social Security Number. Follow their verification process, which may include identity-confirming questions. Set up an account to manage your credit freeze or lock. Once your credit is locked or frozen, you can unlock or lift the freeze temporarily whenever you need to apply for credit, such as when applying for a loan or credit card. Additional Measures Fraud Alerts: You can place a fraud alert on your credit file, notifying creditors to take extra steps to verify your identity before issuing credit in your name. Credit Monitoring Services: Consider using credit monitoring services that alert you to any significant changes in your credit report, such as new account openings or inquiries. Set up a separate email only for your financial websites. Do not use your personal email like you are doing right now TAP vs credit card Always tap when you can, so no one has your credit card info. When tapping the merchant does not receive your actual credit card number. Your card essentially is a seen as a one-time use credit card number for the purpose of the specific transaction. You can set up tapping in Apple Pay or Google pay in your phone. Online you can credit a virtual credit card through privacy.com as an example Unique usernames Create a unique username and unique password. That makes it a lot harder for a hacker. Do not use the same username for financial sites as you use for non-financial sites. Same for passwords. I know it is time-consuming to do this. But at least do it for new accounts going forward and do it for passwords. At Gmail, you can use a feature to make new emails without actually setting up an email: Example: myemail+netflix@gmail.com Use: deleteme Delete information about yourself Don’t use public WiFi unless you have to. Social media can wait. Instead, tether your mobile data. Most places in the US have decent coverage. Use a VPN whenever possible to access the internet on your phone. Disconnect Bluetooth and
Contributing to a Roth IRA
What is a Roth IRA? A Roth IRA is a retirement savings account that allows your money to grow tax-free. Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, meaning you’ve already paid taxes on the money you contribute. The big benefit: no taxes on withdrawals in retirement! Who Can Contribute? Income Limits: Your ability to contribute depends on your Modified Adjusted Gross Income (MAGI). For 2024: Single filers: You can contribute the full amount if your income is below $161,000. Contributions start to phase out at $146,000. Married filing jointly: You can contribute fully if your combined income is below $240,000. Phase-out starts at $230,000. Please visit this Charles Schwab Link for a detailed Phase-Out Schedule: https://www.schwab.com/ira/roth-ira/contribution-limits (scroll down to the Tax Year 2024 Table) Age: There’s no age limit for contributing as long as you have earned income. Contribution Limits For 2024: The maximum contribution is $7,500 per year. If you’re 50 or older, you can make an additional catch-up contribution of $1,000, bringing your total to $8,000. When Can I Withdraw? Tax-Free Withdrawals: You can withdraw your contributions at any time without taxes or penalties. To withdraw earnings tax-free: You must be 59½ years old, and Your account must be at least 5 years old. Benefits of a Roth IRA? Tax-Free Growth: All earnings grow tax-free, meaning more money for you in retirement. No Required Minimum Distributions (RMDs): Unlike traditional IRAs, you’re not required to withdraw money starting at age 73. Flexibility: You can withdraw your contributions any time without penalties, providing extra financial flexibility. Backdoor Roth IRA If you’re above the income limits, consider a Backdoor Roth IRA: contribute to a Traditional IRA first, then convert it to a Roth IRA (consult a tax advisor as we cannot give tax advice). Hafnia Financial, Inc. is a registered investment adviser. Registration does not imply a certain level of skill or training. The information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Insurance products and services are offered and sold through Jan Gleisner an individually licensed and appointed insurance agent. CA Ins Lic # 0D77385.
