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The Value of Guidance

The Value of Guidance: Why Working with a Financial Advisor Can Increase Your Returns

Do Financial Advisors Really Add Value? The Data Says Yes.

In an age where investing apps and online platforms make DIY investing seem simple, many people wonder whether working with a financial advisor is really worth it.

The short answer? Yes — and there’s proof.

Multiple independent studies — from Vanguard, Russell Investments, and Morningstar — have found that investors who partner with financial advisors often see higher net returns, make better decisions, and achieve greater long-term financial confidence.

While technology can help you invest, only human guidance can help you plan, adapt, and stay disciplined through the ups and downs of life and markets.

Why Advice Matters More Than Stock Selection

Working with an advisor isn’t just about picking investments. It’s about creating and following a personal financial plan designed to help you:

  • Minimize taxes and expenses
  • Manage risk and volatility
  • Stay focused on long-term goals
  • Avoid costly emotional mistakes

It’s not just what you earn that matters — it’s what you keep and how you use it to live your best life.

Study 1: Vanguard’s “Advisor Alpha®” — Quantifying the Value of Advice

Vanguard, one of the world’s largest investment management companies, developed the “Advisor’s Alpha®” framework to measure how professional guidance adds measurable value beyond investment returns.

The study found that advisors can add up to 3% in net annual returns through:

  • Behavioral coaching: Helping clients avoid emotional decisions during volatility
  • Disciplined rebalancing: Maintaining consistent, long-term allocations
  • Tax-efficient investing: Structuring portfolios for maximum after-tax growth
  • Cost-effective strategy: Reducing internal fees and inefficiencies

In other words, the greatest value isn’t from “beating the market,” but from guiding investor behavior and aligning strategy with purpose.

Study 2: Russell Investments’ “Value of an Advisor” — A Decade of Evidence

Russell Investments’ long-term research, “The Value of an Advisor”, has analyzed investor performance over the past 25 years.
 Their 2023 update introduced a simple but powerful formula:

A + B + C + T = Advisor Value

  • A: Active rebalancing of portfolios
  • B: Behavioral coaching
  • C: Customized experience and family wealth planning
  • T: Tax-smart investing and financial planning

According to Russell, these combined benefits add 1.5% or more per year to long-term returns.

But more importantly, they help clients stay the course during turbulent markets — preventing emotional decisions that can set investors back years.

Study 3: Morningstar’s “Gamma” — The Science of Smarter Decisions

Morningstar’s influential paper, “Alpha, Beta, and Now…Gamma,” expanded the conversation by quantifying the impact of better financial decision-making.

The study introduced the concept of Gamma — the additional value that comes from intelligent financial planning, not from market outperformance.

Examples include:

  • Tax-efficient withdrawal strategies in retirement
  • Optimal asset allocation
  • Behavioral discipline and coaching

Morningstar found that personalized advice can generate the equivalent of 1.59% more annual income in retirement — meaning investors can enjoy more financial stability simply by planning smarter, not riskier.

Why Advisors Create Measurable Value

Across all three studies, the findings are consistent: professional guidance leads to better outcomes.
 Here’s why:

  1. Behavioral Coaching
     Advisors help you stay disciplined during volatility and avoid emotional decisions.
     (Research shows emotional mistakes are one of the biggest drains on investor performance.)
  2. Asset Allocation & Risk Management
     Advisors help construct portfolios tailored to your goals, risk tolerance, and time horizon — balancing growth and protection.
  3. Tax Efficiency
     Strategic investment placement, harvesting losses, and optimizing withdrawals can dramatically increase after-tax wealth.
  4. Comprehensive Planning
     Beyond investing, advisors coordinate estate planning, insurance, retirement income, and education funding to create a cohesive long-term roadmap.

Partnering for Success: The Carver Approach

At Carver Financial Services, we use our proprietary Personal Vision Planning® process — a holistic, four-step framework that connects your financial strategy to your life goals.

Unlike traditional firms that focus solely on markets or portfolios, we focus on you — your values, priorities, and vision for the future.

Our process includes:

  1. Defining Your Vision: What does your best life look like?
  2. Developing the Plan: Structuring investments and tax strategies around your goals.
  3. Implementing with Discipline: Executing a plan that evolves with you.
  4. Monitoring and Adjusting: Keeping your strategy aligned through life’s changes.

Our team brings decades of experience and the collective knowledge of 300+ years of advisory expertise, ensuring that your plan isn’t just managed — it’s guided, refined, and protected over time.

The Bottom Line: Advice Isn’t a Cost — It’s an Investment

Financial advice doesn’t just manage money; it creates clarity, confidence, and better decisions.

When you partner with an experienced advisor, you gain more than performance — you gain a strategy, a partnership, and peace of mind.

At Carver Financial Services, we’re not here to chase markets — we’re here to help you live your best life possible with purpose and precision.

Because the true return on advice isn’t just financial — it’s personal.

Any opinions are those of Randy Carver and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. The results in the studies described are hypothetical in nature and not actual investment results or guarantees of future results. 

Navigating Generational Friction

Carver Financial Services hosted Chris DeSantis, author of “Why I Find You Irritating”, a book about generational differences, and how to navigate them in the workplace, at home, and in social settings.

Living with Intention: Holistic Planning for a Comprehensive and Fulfilling Future

 

Beyond the Numbers: A New Way to Think About Financial Planning

Traditional financial planning has long focused on the numbers — savings, investments, and retirement accounts. While these are crucial, true well-being involves much more than wealth.

Today, more people are embracing a holistic planning approach — one that integrates not only finances but also physical, emotional, and mental health, along with personal values and purpose.

At Carver Financial Services, we call this approach Personal Vision Planning® — a process we’ve developed and refined for over 30 years to help clients live intentionally and design a future that is both financially stable and deeply fulfilling.

What Is Holistic Financial Planning?

Holistic planning is about seeing the entire picture of your life — not just your portfolio balance.

It connects financial success to emotional balance, health, relationships, and long-term happiness. Our approach combines advanced technology with personalized human guidance to help clients live with clarity and intention.

Here are the six essential components of a high-quality holistic plan:

1. Comprehensive Financial Well-Being

Financial stability is just one part of a fulfilling life. Holistic planning weaves it together with other dimensions — family, health, purpose, and peace of mind.

At Carver Financial Services, we not only guide your investments and retirement strategies but also connect you with professionals for travel planning, healthcare advice, and personal development.

2. Physical and Mental Health

Your health is the foundation of your wealth. A healthy lifestyle doesn’t just improve your quality of life — it also reduces long-term healthcare costs and improves financial resilience.

Our planning philosophy encourages clients to maintain wellness routines and supports preventive health strategies that protect both body and budget.

3. Lifestyle and Aspirations

A holistic plan begins with your vision for life — not just your retirement balance.

What do you value most? What gives your life meaning? Whether it’s traveling the world, mentoring others, or leaving a meaningful legacy, we help you build a plan that funds your goals and aligns with your deeper purpose.

4. Family and Relationships

Money is most meaningful when it strengthens the people and relationships that matter most.

Holistic planning includes family dynamics, communication, and legacy planning. We help facilitate family meetings and legacy conversations to ensure your wealth supports connection, not conflict.

5. Emotional Well-Being and Stress Management

Financial uncertainty is one of the leading sources of stress for adults.

Our holistic approach helps reduce anxiety by creating clarity and structure. We incorporate strategies for stress management, emotional resilience, and confidence in decision-making, helping you find peace of mind while pursuing your goals.

6. Continual Adaptation

Life evolves — and your plan should too.

A truly effective financial plan is dynamic, not static. We meet regularly with clients to adjust strategies based on life changes, market shifts, and new priorities. This adaptability ensures that your plan remains relevant and aligned with your vision as it grows.

The Benefits of Holistic Planning

When your plan considers every aspect of your life — not just your assets — the results can be transformative.

1. Enhanced Life Satisfaction

By aligning your finances with your personal values and goals, you gain a greater sense of fulfillment, purpose, and overall well-being.

2. Reduced Stress and Anxiety

With a clear plan addressing your finances, health, and emotional resilience, you can move forward confidently — without fear of running out of money or running out of time.

3. Improved Decision-Making

Holistic planning promotes self-awareness and perspective, empowering you to make informed, meaningful decisions that reflect who you are and what you value most.

When you know what you’re striving for — and have a plan that supports it — you can truly live with intention.

Carver’s Personal Vision Planning®: Turning Purpose Into a Plan

At Carver Financial Services, we’ve spent three decades refining a proven, client-centered process that bridges financial planning and life design.

Our Personal Vision Planning® process helps you:

  • Define what “living well” means for you
  • Build a plan that balances today’s needs with tomorrow’s dreams
  • Adapt as life, markets, and goals evolve
  • Enjoy the freedom to live with confidence and intention

We look beyond wealth management to help clients align every decision with their values and vision.

Live Intentionally, Plan Holistically

A fulfilling life isn’t built by chance — it’s built with purpose, clarity, and a plan that supports both your financial goals and your personal well-being.

If you’d like to explore a holistic approach to your financial future, our team is here to help — without cost or obligation.

You deserve more than a financial plan. You deserve a life plan that works — for you.

Any opinions are those of Randy Carver and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

Resource Breakfast 2024

Carver Financial Services hosted its’ 28th Annual Resource Breakfast featuring Liz Koehler, CFA, Managing Director at Blackrock. You can download a copy of the 2024 Resource Breakfast Handout here.

8.16.24 35th Annual Client Appreciation Event

35th Annual Client Appreciation Lake County Captains Game – CLIENTS ONLY

 

 

Save the date for our 35th Annual Client Appreciation Event on Friday, August 16th, 2024.

The game is at 7:00 p.m. vs the Great Lakes Loons. Clients will have early entry beginning at 5:30 pm, a food voucher, and receive a T-shirt at the game.

Call us to reserve your tickets at (440) 974-0808 or email carverfinancialservices@raymondjames.com.

Tickets can be picked up starting July 5th and by August 13th. Any tickets not picked up at the office will be at the “CFS Will Call” table at the game.

Reservations must be made by August 7th.

End 68 Hours of Hunger Food Drive

We are excited to be having another food drive for End 68 Hours of Hunger at the Client Appreciation baseball game. The MOST NEEDED items are canned fruit, peanut butter, jelly (plastic containers only), and canned soup. 

Through this effort, we have been able to donate over 140,000 pounds of food over the years. We are excited to make it a successful event again this year. If you have any questions, please feel free to call the office at (440) 974-0808 or email carverfinancialservices@raymondjames.com.

This event is reserved for clients of Carver Financial Services. 

Carver Financial Services named to Forbes’ 2024 Best-In-State List of Top Wealth Management Teams

January 12, 2024 – Carver Financial Services was named to Forbes “Best-In-State Wealth Management Teams” for the state of Ohio. There were a total of 10,144 team nominations received. Carver Financial Services ranked #10 out of 167 in the state of Ohio. This is the second year that Carver Financial Services has been included on this prestigious list of top wealth management teams.   

While founder and President of Carver Financial Services Inc. has received numerous awards personally, he commented on the team recognition.

“I believe that our team is the reason for our continued success.  It’s an honor, and gratifying, that our entire team has been recognized by Forbes as part of this exclusive list of Best In State Wealth Management Teams’, commented Carver. He went on to say, “We are honored that Forbes has recognized the exceptional service and commitment that each member of our team provides to our clients and community”.

The 2024 Forbes ranking of America’s Top Wealth Management Teams Best-In-State, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. This ranking is based upon the period from 3/31/2022 to 3/31/2023 and was released on 01/9/2024. Advisor teams that are considered must have one advisor with a minimum of seven years of experience, have been in existence as a team for at least one year, have at least 5 team members, and have been nominated by their firm. The algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 10,000 team nominations, 4,100 advisor teams received the award based on thresholds. This ranking is not indicative of an advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please see https://www.forbes.com/lists/wealth-management-teams-best-in-state/ for more info.

2023 Year in Review

The primary vision for Carver Financial Services, Inc. is to have an enduring firm that will serve to make the lives of our team, our clients, and our community better for generations to come. Take a look at 2023 to see our milestones and achievements during this extraordinary year.

How “Fair” Is the U.S. Tax System?

 

There continues to be ongoing debate about how fairly the U.S. tax system taxes individuals based on their income. One of the most hotly debated issues is how much tax the top 1 to 10 percent of America’s income earners should pay. This is something that we have written about for more than a decade. Moreover, we have discussed the counterintuitive, yet historically proven, idea that reducing the top marginal tax rates increases government revenue. It can also shift the burden of tax from lower- and middle-income citizens to the highest earners.

According to the Tax Foundation, in 2017, the top 50 percent of all taxpayers paid 97 percent of all individual income taxes, while the bottom 50 percent paid the remaining 3 percent. The top 1 percent share of federal individual income taxes rose to 38.5 percent, from to 37.3 percent in 2016. In contrast, the top 1 percent of all taxpayers (taxpayers with adjusted gross income of $515,371 and above) earned 21.0 percent of all AGI in 2017 and paid 38.5 percent of all federal income taxes. In 2017, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined.

The top 1 percent paid a greater share of individual income taxes (38.5 percent) than the bottom 90 percent combined (29.9 percent). The top 1 percent of taxpayers paid a 26.8 percent average individual income tax rate, which is more than six times higher than taxpayers in the bottom 50 percent (4.0 percent).

As the country faces a mounting national debt it is important to grow the overall economy and also increase tax revenues. The debate is how to do this – yet we have seen that by reducing the highest tax brackets both can be achieved.

Our progressive tax system taxes people at different rates based on their income; and adjusts the annual tax brackets each year to account for inflation. Your taxable income and filing status determine which rate applies to you.

Typically, the income thresholds that determine the tax brackets are adjusted each year to reflect the rate of inflation. The purpose behind these changing levels is that they can help prevent taxpayers from ending up in a higher tax bracket as their cost of living rises, and they can lower taxes for people whose compensation has not kept up with inflation.

However, the U.S. federal tax rates will remain the same until 2025 as a result of the Tax Cuts and Jobs Act of 2017. In 2023 and 2024, there are seven federal income tax rates: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.

Different Types of Taxes

The U.S. government collects many different types of taxes as sources of revenue. Individual income taxes are the largest source of tax revenues, representing more than half (54 percent) of total annual receipts. Income taxes are levies on wages and salaries, income from investments and other income.

The issue of tax “fairness” can be confusing because the taxes that Americans pay differ at various points in the income distribution. For example, affluent Americans pay a larger share of their income in individual income taxes, corporate taxes and estate taxes than lower-income groups do. In contrast, lower-income groups owe a greater portion of their earnings for payroll and excise taxes than those who earn more money. In fact, taxpayers whose incomes are in the bottom 80 percent of all incomes pay, on average, more in payroll taxes than they do in income taxes.

Because of the U.S. system of tax benefits and transfers, such as taxpayer-funded programs like Medicaid and public housing assistance, the lowest-earning Americans actually receive more from the government than they pay in income taxes, according to a recent analysis of tax data from the Tax Foundation.

The Laffer Curve: A Counterintuitive Paradox

Sometimes, when the conversation turns to making sure the top 1 to 10 percent pay “their fair share,” people argue that the solution is to increase the marginal tax rates. However, that’s not true. Ironically, and somewhat counterintuitively, increasing the marginal tax rates will lower the effective amount the government collects. This phenomenon is illustrated by the Laffer Curve.

The Laffer Curve is a theory that supply-side economist Arthur Laffer (who is from Youngstown) developed in 1974 to show the relationship between tax rates and the amount of tax revenue collected by governments. The curve is used to illustrate Laffer’s argument that sometimes, cutting tax rates can increase total tax revenue. The Laffer Curve was used as a basis for tax cuts in the 1980s, with apparent success. However, some people criticized the theory on the basis of its simplistic assumptions and on the economic grounds that increasing government revenue might not always be optimal.

Economic activity generally responds to tax changes. If you increase the tax on cigarettes, for example, some people will smoke less, while others will shift to smoking illegal, untaxed cigarettes. Income taxes also trigger a response. If you increase the tax rate on wages and salaries, some people will work less. (Some will also work more to recoup lost after-tax income, but evidence suggests that the disincentive effect dominates.) Similarly, if you increase tax rates on returns to saving and investing — such as through interest, dividends and capital gains — some people will save and invest less. (Here, too, some people may save more to maintain the same after-tax savings, but evidence suggests that the disincentive effect, though small, still dominates.)

In many cases, lowering taxes can actually increase government revenues. If new businesses, new investments and new hiring are spurred by the prospects of better after-tax returns, the taxes paid by these new or growing businesses and employees can more than make up for the lower rates of taxation.

The Effective Tax Rate vs. the Marginal Tax Rate

Misunderstandings about two different types of tax rates — the effective tax rate vs. the marginal tax rate — often create confusion in discussions about taxes.

A taxpayer’s average tax rate, or effective tax rate, is the share of income that he or she pays in taxes. In contrast, a taxpayer’s marginal tax rate is the tax rate imposed on his or her last dollar of income.

Taxpayers’ effective tax rates are usually much lower than their marginal rates. People who confuse the two can end up thinking that taxes are much higher than they actually are. There is a big difference between these two rates. In fact, it has been the case that by cutting income tax rates for the top 1 percent of income earners, tax revenues go up, and these folks pay more tax.

According to the Tax Foundation, the top federal income tax rate was 91 percent in 1950 and 1951 and also between 1954 and 1959. However, the top 1 percent paid an effective tax of only 16.9 percent. In 2019, the top marginal rate was 37 percent, yet the effective tax rate was 26.8 percent.

Politics Drive Tax Rates

Intuitively, it makes sense that if you raise tax rates, tax revenue will go up and that if you raise tax rates on the wealthiest Americans, they will pay a larger share of the income tax. But it doesn’t work that way. In fact, policies meant to help lower- and middle-income Americans often end up hurting them. This is not an economic debate; the facts stand for themselves. This is simply and, unfortunately, politics. Never before have we seen such extremes proposed as we are seeing now.

Yet the debate continues about raising tax rates in the face of mounting government deficits. History objectively shows us the impact of lowering tax rates. Thus, any debate about their efficacy is purely political.

Some of today’s issues — such as health-care reform, Social Security and immigration — are often difficult to quantify objectively because we have not had experience with proposed changes. On the other hand, we do have objective experience with income tax cuts and their impact.

The Historical Impact of Tax Cuts

Tax cuts have historically shifted the tax burden from middle-income people to the wealthiest Americans, while creating jobs and increasing government revenue. Critics, often with the best of intentions, have said that extending tax cuts and further reducing income taxes will benefit the rich over the poor and will lead to more deficit spending. This simply is not the case.

The only reason any informed person would propose raising income tax rates is to gain votes or to intentionally hurt lower- and middle-income Americans.

Bernie Sanders proposed a 97 percent tax on the wealthiest Americans in his Corporate Accountability Plan. Elizabeth Warren has proposed a 70 percent marginal tax rate. The Biden/Harris tax plan would increase the effective tax on those making more than $400,000.

But the reality is that today, the wealthiest Americans are paying the bulk of all income tax already.

Critics of Tax Cuts Ignore History

The public is told that the country cannot afford tax cuts due to government spending on entitlements, defense and all the other important things the government does. While cutting taxes in the face of mounting deficits may seem counterintuitive, critics are ignoring history. Past income tax rate cuts have increased government revenues, boosted our economy, created jobs and shifted the tax burden away from low-income families to the middle- and upper-income folks.

There is no doubt that we will have to deal with excessive government spending to balance the federal budget. Independent of that, extending and expanding the recent tax cuts, while closing loopholes, is a proven way to increase government revenue and benefit all Americans. This strategy shifts the tax burden to those who can most afford it.

The Economic Recovery Act of 1981, also known as the Reagan tax cuts, was the biggest reduction in U.S. taxes of the past 70 years — possibly even the biggest ever. These cuts were then followed by a series of tax increases that, if you add them all together, were almost as big as, or even bigger than, the 1981 cuts, depending on the measure you use.

A Bloomberg analyst believes the 1981 tax law was a positive, if perhaps overdone, change in direction. He says, “Cutting the top tax rate to 50 percent from 70 percent may well have increased the amount of money coming into the Treasury, as incentives to avoid taxes were reduced and incentives to make lots of money increased.” He adds, “The positive economic and behavioral effects of the 1981 cuts recouped about a third of the revenue losses. So it also took spending cuts and tax increases to move the federal budget into surplus territory.”

TEFRA Increased Taxes and Revenue

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) is a law passed in 1982 that was designed to reduce the federal budget deficit through a combination of tax increases, spending cuts and tax reform measures. The legislation reversed some elements of the Economic Recovery Tax Act of 1981 (ERTA), also known as the Kemp-Roth Act. Both pieces of legislation were passed early in the presidency of Ronald Reagan.

Republican Senator Robert Dole, who was the chair of the Senate Finance Committee at that time, was the legislation’s architect. TEFRA was meant to raise more revenue by closing loopholes in the tax system, introducing stricter compliance and tax-collection measures, increasing excise taxes on cigarettes and telephone services and increasing corporate taxes.

TEFRA was the biggest tax increase in U.S. history, when adjusted for inflation, and quickly followed the Economic Recovery Tax Act (ERTA) of 1981, which, as mentioned, was the biggest tax cut in U.S. history. Following the passage of ERTA, the United States fell into the second half of a “double-dip” recession, and the U.S. budget deficit soared.

According to a paper published in 2006 by the U.S. Department of the Treasury, most of the bills enacted before 1982 were tax cuts. During that period, inflation was relatively high, and the individual income tax parameters were not indexed for inflation. Without indexation, inflation can push taxpayers into higher tax brackets without any increase in real income. This phenomenon is called “bracket creep,” and it increases federal revenue as a percentage of GDP without any legislative action. In fact, when inflation is relatively high and bracket creep is particularly intense, as it was through much of the 1970s, policymakers have to cut taxes repeatedly to maintain the desired level of taxes.

TEFRA was created in response to the recession at the time. The legislation faced fierce opposition from those who felt that taxes should be increased, not decreased, to offset government shortfalls. Sounds like a familiar debate, doesn’t it?

Revenue Increases Typically Come from the Wealthiest Americans

The highest-income Americans generally pay more of their income in taxes than the rest of the population. The top one-fifth of households earn 54 percent of all income and pay 69 percent of federal taxes, and the top 1 percent earn 16 percent of the income and pay 25 percent of all federal taxes, according to the Congressional Budget Office (CBO).

Across-the-board tax cuts were implemented in the 1920s as the Mellon tax cuts and in the 1960s as the Kennedy tax cuts. In both cases, the reduction of high marginal tax rates actually increased tax payments by “the rich.” It also increased their share of total individual income taxes paid. According to the IRS, in 1981, the top 1 percent of income earners paid 17.6 percent of all personal income taxes. But by 1988, their share had jumped to 27.5 percent—after the top tax rate had been cut from 69.13 percent in 1981 to 28 percent in 1988.

Reagan’s detractors point to his lack of sensitivity for social issues and the legacy of his deficit spending — yet his legacy is a positive one. In the seven years following the Reagan tax cuts, almost 20 million well-paying jobs were created. Moreover, the tax burden was shifted from low- and middle-income families.

According to the Joint Economic Committee for the US Congress report (1996), the share of the income tax burden borne by the top 10 percent of taxpayers increased from 48 percent in 1981 to 57.2 percent in 1988. Meanwhile, the share of income taxes paid by the bottom 50 percent of taxpayers dropped from 7.5 percent in 1981 to 5.7 percent in 1988.

The middle class also benefited — “middle class” being defined as those between the 50th percentile and the 95th percentile for income. The income tax burden of the middle class declined from 57.5 percent in 1981 to 48.7 percent in 1988. This 8.8 percentage point decline in middle-class tax burden is entirely accounted for by the increase borne by the top 1 percent.

If the so-called experts would channel all the intellectual energy, they are using to debate historically established facts into other subjective issues, and not promoting partisan rhetoric, all Americans would benefit.

Our team focuses on net returns for clients — what you make after income taxes and expenses. We take a very proactive approach for tax-smart investing to minimize the income taxes our clients are subject to. Every financial move you make has potential tax implications. We are here to guide you as you plan for the future to ensure that you are not paying more than your fair share of taxes.

________

Randy Carver, CRPC®, CDFA®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Carver Financial Services, Inc., was established in 1990 with the vision of making people’s lives better — clients, team and community. With this mission, Carver Financial Services has grown to be one of the largest independent financial services offices in the country, managing $2.3 billion in assets for clients globally, as of March 2023. You can reach Randy directly at randy.carver@raymondjames.com and in the office at (440) 974-0808.

Any opinions are those of Randy Carver and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we do not provide tax or legal advice. You should discuss tax or legal matters with the appropriate professional.

The Big 3

Don’t Let a Century of the “Big Three” Issues Take Your Focus Off Your Personal Vision

We continue to hear about ‘breaking news regarding the war in Israel, economic problems at home and the latest pandemic. The reality is that the world has grappled with this trio of seemingly intractable challenges for more than 100 years. These three issues have persisted through generations, shaping the global landscape, and leaving their indelible mark on the course of history. Despite the passage of time and numerous attempts to address them, they continue to be significant concerns and the media continues to make it seem like they are something new. They are not.

While we cannot predict the future, understanding the historical roots and enduring nature of these issues can help us develop more effective strategies to mitigate their impact and ignore the media hype. We must not let these ongoing issues distract us from our long-term vision for the future. Our team is here to help you navigate your financial journey with these challenges.

War in the Middle East: A Century of Turmoil

The Middle East has been a hotspot for conflict for more than a thousand years. The roots of the more recent conflicts can be traced back to the dissolution of the Ottoman Empire after World War I. The division of the region into new states, often with arbitrary borders drawn by colonial powers, laid the foundation for decades of instability. The Arab Israeli conflict, the Iranian Revolution, the Gulf Wars and the ongoing Syrian Civil War are just a few examples of the enduring conflicts in the region.

The Arab–Israeli War of 1948 broke out when five Arab nations invaded territory in the former Palestinian mandate immediately following the announcement of the independence of the state of Israel on May 14, 1948. The Iran–Iraq war from 1980 to 1988, the more recent Syrian civil war that began in 2011 and the ongoing struggle against extremist ideologies are just a few examples of the relentless turmoil.

One reason for the persistence of Middle Eastern conflicts is the strategic importance of the region. Its vast oil reserves have made it a battleground for global superpowers, with the United States, Russia and China vying for influence. Religious and sectarian divisions, coupled with nationalist aspirations, have further fueled these conflicts. The Middle East remains a complex web of geopolitical rivalries and ethnic tensions, making it challenging to find lasting solutions.

Economic Troubles at Home: A Centenary of Financial Flux

Economic troubles at home have been a constant backdrop to the past century, with periods of economic prosperity often followed by downturns. The Great Depression of the 1930s, the 2007–09 global financial crisis and, more recently, the economic fallout from the COVID-19 pandemic are testament to this enduring issue. Factors like inflation, unemployment and fiscal policy continue to influence the economic landscape.

In more recent times, the global financial crisis of 2008 and the challenges brought on by the COVID-19 pandemic have been stark reminders of our vulnerability to economic shocks.

Adapting to changing economic conditions requires investors to take a proactive approach — to not only maintain wealth but also to take advantage of short-term uncertainty and volatility to and grow their assets. Again, it’s important to stick with the plan your advice team has tailored for you; regardless of what’s happening in the economy or media. We utilize a combination of current income and cash for near term needs to ride out volatile periods with longer term growth investments to combat inflation. The overall allocation is specifically tailored to your personal needs, situation, and vision.

Pandemics: A Century of Health Crises

Pandemics have also been a recurring threat for more than a century. Various plagues, the Spanish flu of 1918, the HIV/AIDS pandemic, SARS, Ebola and the COVID-19 pandemic that began in 2019 are just some of the infectious diseases that have periodically surged to the forefront of global consciousness.

While advances in medicine and global cooperation have improved our ability to respond to pandemics, these health crises continue to disrupt societies and economies worldwide. The emergence of new infectious diseases, the interconnectedness of the modern world and challenges in coordinating a global response all contribute to the ongoing threat of pandemics. As long as human populations are vulnerable to infectious diseases, pandemics will remain a significant concern. As with the other issues this can present an opportunity for savvy investors.

The Endurance of the Big Three Issues

The “big three” — war in the Middle East, economic troubles at home and pandemics —are deeply interwoven with the complexities of our modern world, making them difficult to resolve completely. Despite concerted efforts to address them, they continue to shape the course of history and pose ongoing threats to global stability.

In the age of 24/7 news coverage and digital media, sensationalism often takes precedence over objective reporting. The media has an undeniable influence on public perception, and when it comes to covering the “big three” issues, it’s not uncommon for sensationalism to drive fear and panic. While these issues are not new, the way the media present them can contribute to public unease and anxiety. This also creates an opportunity.

A buy-and-hold strategy can result in quicker loss recuperation, than trying to time markets. By being proactive you may even benefit from the volatility.

For example if you had invested $10,000 in the S&P 500 on January 1, 2008. You might recall that in 2008, the S&P 500 lost 37 percent of its value. At the end of 2008, your investment would have been worth $6,300. If you had kept your money where it was, you would have recouped your losses by 2012, even if you made no additions to your original stock market investment. If you had chosen instead to reinvest that $6,300 in a savings account with a 3 percent interest rate, compounded monthly, it would have taken 16 years for you to recoup your losses and cross that $10,000 threshold. Had you been tactical you could have enjoyed tax benefits and grown you assets via the portfolio versus trying to time the market.

Our planning seeks to protect you from short-term volatility while guiding you to benefit from the uncertainty. We take a proactive approach based on your vision rather than market timing.

As we reflect on a century marked by the persistent challenges of war, economic instability, and pandemics, it is clear that our ability to adapt and innovate has been our greatest strength. The media would have us believe that “this time it’s different” and that the latest crisis is “breaking news” — but it’s not.

Those who panic will ultimately hurt themselves financially, and possibly emotionally, while those who have a plan and are steadfast can benefit. We are here for you and are always happy to answer any questions or concerns. Times of uncertainty can present an opportunity for longer term investors. We believe that is true today as it has been over the last 100 years.

We will continue to offer updates via video and our live events. You can access more information on these via our web site https://carverfinancialservices.com/.

Please reach out to me personally, or to any of our team, with questions or if we can otherwise be of service. We are here for you!

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Randy Carver, CRPC®, CDFA®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Carver Financial Services, Inc., was established in 1990 with the vision of making people’s lives better — clients, team and community. With this mission, Carver Financial Services has grown to be one of the largest independent financial services offices in the country, managing $2.3 billion in assets for clients globally, as of March 2023. You can reach Randy directly at randy.carver@raymondjames.com and in the office at (440) 974-0808.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Carver Financial Services and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. Past performance does not guarantee future results. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary.

Randy Carver, CRPC®, CDFA®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Carver Financial Services, Inc., was established in 1990 with the vision of making people’s lives better — clients, team and community. With this mission, Carver Financial Services has grown to be one of the largest independent financial services offices in the country, managing $2.3 billion in assets for clients globally, as of March 2023. You can reach Randy directly at randy.carver@raymondjames.com and in the office at (440) 974-0808.

Any opinions are those of Randy Carver and not necessarily those of Raymond James.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

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