2025 Predictions

The first step is to acknowledge where you currently find yourself in life. Are you comfortable with the status quo? Do you desire more out of life? By evaluating your prior activities and performance in life you will gain an understanding of how you arrived at your present state. What changes have you made in life to arrive at your current net worth, savings, happiness in life? Why were you motivated to make those changes? These are the types of introspective questions you should be examining to determine the predictive future you wish to achieve.

To adequately predict activities and factors that will influence you in 2025, you must understand that there are certain variables that you do not control. However, there are many that you do control and that is where you will focus your energies. For example, you cannot control the economy; however, you can control your participation in it. You cannot control the government’s actions toward policy; however, you can control your reaction to it.

For 2025, the following predictions may give you a greater sense of purpose, achievement, and self-esteem:

• I predict your outcomes this year will be reliant on your discipline and willpower to create the results you desire.
• I predict your savings will grow in the manner you intend them to grow by being proactive in the process of achieving a certain balance in your account and understanding the impact the economy has on your resources.
• I predict you will find greater health benefits in 2025 when you intentionally make time in your day to exercise and wiser choices of eating properly.
• I predict your family will become closer and enjoy more memory-making because you plan, organize, and spend quality time with each of your loved ones in an intentional manner.

Notice the predictions listed above do not rely on anyone, or anything, other than you. Once we acknowledge that our future relies more on our own efforts than the government or any other resource, we become empowered to enjoy life more abundantly. I believe you will experience a prolonged higher interest rate for borrowers as the U.S. Federal Reserve Board of Governors continues to work to maintain efficient labor markets and control inflation. To believe the reduction in rates will be rapid is to assume the economy will immediately improve and the excess cash in the system will simply deplete. The target rate of 2% set by the Fed will not be realized for another couple of years based on the possibility of tariffs and deportations to be implemented by the incoming administration. Therefore, it is important that you understand this economic factor to invest appropriately for the future.

Further, and this is a little bit of a challenge to determine, the Tax Cuts and Jobs Act of 2017 will be reaching sunset on December 31, 2025. With a majority in both Houses of Congress, the Republicans’ thin margins will require assistance from the Democrats to accomplish the continuance of the law. The law has a direct impact on individuals in that it reduced the top rate of income taxation to 37%. However, it also reduced the amount of state income tax deduction allowed by individuals to $10,000. There will be significant debate but I believe the law will be extended in some form.

Perception is reality. This is a true statement. Your future reality is dependent on your ability to focus on the most important goals you wish to achieve and the “why” you wish to accomplish them. Discipline is an exponential catalyst for accomplishment. If you want to predict your future, it is critical that you define it with clear objectives and seek steps toward the completion of the tasks required to reach the goals.

If you wish to establish accountable and responsible goals for a bigger future, contact a CERTIFIED FINANCIAL PLANNER^® professional and learn how you can gain more control of your future. One of my favorite quotes is attributed to Abraham Lincoln and Peter Drucker, “The best way to predict the future is to create it.” Reach down deep and make 2025 your best year ever experienced!

Registered Principal Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Jimmy J. Williams is an Investment Advisor Representative of Compass Capital Management, LLC, a Registered Investment Advisor. Cambridge and Compass Capital Management, LLC are not affiliated. 215 E. Choctaw, Suite 101, McAlester, OK  74501. Cambridge does not offer legal and tax advice. Please consult your legal and tax advisor for specific estate and income tax planning strategies.

The information in this article is for educational purposes only and is not intended to be tax advice. Further, you should not rely on this information to make investment decisions.