Tag Archives: Wealth Management

Navigating Tariff Uncertainty: Staying the Course

3/2025

By Stetson Ponder

Recent US tariff actions targeting China, Mexico and Canada have heightened market volatility and have raised many concerns regarding Cahaba Wealth Management’s positioning given this environment moving forward. While these geopolitical developments demand attention and analysis, our investment philosophy remains anchored in long-term outlooks, rather than short-term policy shifts. Here’s why:

The uncertainty regarding implementation of these tariffs leaves analysts and economists unsure what to expect of long-term effects. Even in stable conditions, tariffs are hard to predict because they affect many interconnected aspects of the economy. They can raise prices for consumers, force businesses to change how they get their supplies, and lead other countries to respond with their own tariffs. These effects make it challenging to accurately model the impact of tariffs.

It is hard enough to predict market movement without tariffs, harder still with tariffs being implemented in a slow and methodical approach. Tariffs announced on a Friday and implemented on the following Monday leave investors in a nearly impossible situation. To attempt to predict how to best position any given portfolio in today’s market climate would be metaphorically throwing a dart at a spinning dart board while blindfolded and attempting to hit double twenty.

The motive for these tariff implementations remains complex. The rising speculation is that they are being used as transactional bargaining chips, rather than long term economic strategy. We have already seen Mexico’s 25% tariffs be delayed for a month after President Sheinbaum of Mexico agreed to allocate resources to the continued effort to secure the US’s southern border with its neighbor. Canada’s 25% vehicle import tariff was recently delayed one more month after President Trump spoke with prominent US automakers. What could be viewed as permanent economic shift one day could result in reversal of government policy the next.

This has been the case throughout recent history. Consider:

  • Research shows that 68% of modern U.S. tariffs are repealed/modified within 24 months, according to Brookings data.
  • Modern tariffs average 137 days before amendment/repeal.
  • Since inception, 65% of historical S&P 500 selloffs linked to tariff news are reversed within 3 months as policies shifted (Market Insider, 2025).

Data suggests that we will not see a long-term impact from these tariff negotiations on our domestic markets. While tariff discussions will continue to dominate headlines, our internal focus remains on each individual client’s specific needs. Volatility creates fluctuations, not strategy shifts. Your unique investment plan continues to be an excellent driver of future returns to help achieve your long-term financial goals.

We acknowledge that the current negotiating tactics can be emotionally taxing but continue to remind ourselves and clients that sticking to your plan has proven to be the best long-term strategy.

Sources:

  1. Stock Market Outlook: S&P 500 to Drop 5% As Trump Tariffs Hit Earnings – Markets Insider
  2. S&P 500 Cuts Most of Its Losses on Tariff Hopes: Markets Wrap – SWI swissinfo.ch
  3. Goldman Sachs says Trump’s tariffs could bruise stocks, estimating every 5-percentage-point increase would slash S&P 500 earnings per share by 1%–2%

Stetson Ponder is a Financial Planning Analyst in the Atlanta office of Cahaba Wealth Management, www.cahabawealth.com.

Cahaba Wealth Management is registered as an investment adviser with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser does not constitute an endorsement of the firm by the SEC nor does it indicate that the adviser has attained a particular level of skill or ability. Cahaba Wealth Management is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Content should not be construed as personalized investment advice. The opinions in this materials are for general information, and not intended to provide specific investment advice or recommendations for an individual. Content should not be regarded as a complete analysis of the subjects discussed. To determine which investment(s) may be appropriate for you, consult your financial advisor.

Key Medicare Changes for 2025: What You Need to Know

11/2024

By Charlotte Disley and Stetson Ponder

As we look ahead to 2025, some important changes are set to shake up Medicare. It’s crucial to understand how these updates might impact your coverage, costs, and access to healthcare. Here’s a straightforward overview of the upcoming changes that all beneficiaries should keep in mind.

Drug Benefits – Part D

$2,000 Out-of-Pocket Cap – One of the biggest changes in 2025 is the introduction of a $2,000 cap on out-of-pocket costs for Part D prescription drugs. Here’s how it breaks down:

  • Deductible Phase: If your plan has a deductible, you’ll need to spend up to $590 out of pocket before coinsurance kicks in.
  • Coinsurance Phase: After you hit that $590 threshold, you’ll pay 25% of the cost for covered drugs until your total out-of-pocket expenses reach $2,000.
  • Catastrophic Phase: Once you hit the $2,000 cap, you won’t have to pay anything else out of pocket for the rest of 2025.

Payment Plans – Starting in 2025, if you’re enrolled in a Medicare drug plan (or a Medicare Advantage plan with drug coverage), you can opt to spread your out-of-pocket drug payments throughout the year through the new Prescription and Copay Payment Schedule Option. There’s no cost to join, but keep in mind this option won’t lower your total drug costs—it just helps manage your payments better!

However, be aware that these changes might lead to some unexpected shifts. For instance, medications could be reclassified to tiers with higher copayments, or some might not be covered at all. It’s important to do your homework—check which prescriptions are included in your plan and get an estimate of their costs for 2025.

Medicare Advantage Plans – Part C

Increased cost of coverage – Medicare Advantage plans might also see higher costs or fewer coverage options due to expected decreases in government funding. Providers will take on more responsibility for prescription drug coverage under the new $2,000 cap, which could lead to changes in available plans.

Scrutiny of prior authorization policies – There is set to be more scrutiny of prior authorization policies by Medicare, which had seen a rise in denials for coverage in recent years. Medicare Advantage plans will need to assess how their prior authorization policies affect different groups and will be required to make this information publicly available on their websites. Responses to prior authorization requests must be given within seven days, down from the previous 14-day requirement.

Unused Benefits – Starting in July 2025, enrollees will receive notifications about any unused benefits in their plans. With an average of 23 supplemental benefits—like hearing aids, fitness programs, and dental services—available in many plans, it’s essential for participants to be aware of what’s offered. Last year, about 30% of Medicare Advantage plans had unused benefits, underscoring the importance of being proactive in managing your options.

Expanding Support in Other Areas

Enhanced Mental Health Services – The availability of licensed mental health professionals who are covered by Medicare is set to expand. This includes Licensed Mental Health Counselors (LMHCs) and Licensed Marriage and Family Therapists (LMFTs), and addiction counselors. This is a significant step toward improving access to mental health care for Medicare beneficiaries.

Family Caregiver Support – Earlier this year, a new program, Guiding an Improved Dementia Experience (GUIDE), was implemented to support patients with Dementia and their unpaid caregivers. GUIDE offers services including a 24/7 support line, a care navigator to help find medical and community-based services, caregiver training, and up to $2,500 per year for at-home, overnight, or adult day care respite services. Typically, patients and their caregivers won’t face copayments. In 2025, the GUIDE program is set to quadruple in size, serving far more of the population experiencing these challenges.

Stay Informed and Prepared

With these major changes on the horizon for Medicare in 2025, it’s vital for beneficiaries to review their prescriptions and healthcare needs to ensure continued coverage. Staying informed and proactive will empower you to navigate these updates and maximize your Medicare benefits.

Reach Out

If you have any specific questions about your situation or enrollment, please reach out to the Cahaba Team directly and we are happy to provide additional resources for Medicare related inquiries.

Sources

  1. https://www.aarp.org/health/medicare-insurance/info-2024/medicare-changes-coming-in-2025.html
  2. https://www.investopedia.com/major-medicare-changes-for-2025-8713206
  3. https://www.panfoundation.org/everything-you-need-to-know-about-medicare-reforms/
  4. https://www.nerdwallet.com/article/insurance/medicare/medicare-changing-2025
  5. https://www.usatoday.com/story/news/health/2024/10/15/medicare-enrollment-changes-for-2025/75671849007/
  6. https://www.wsj.com/health/healthcare/medicare-plans-are-making-big-changes-for-2025-heres-how-to-navigate-them-5c81fd05

Charlotte Disley and Stetson Ponder are Financial Planning Analysts in the Atlanta office of Cahaba Wealth Management, www.cahabawealth.com.

Cahaba Wealth Management is registered as an investment adviser with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser does not constitute an endorsement of the firm by the SEC nor does it indicate that the adviser has attained a particular level of skill or ability. Cahaba Wealth Management is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Content should not be construed as personalized investment advice. The opinions in this materials are for general information, and not intended to provide specific investment advice or recommendations for an individual. Content should not be regarded as a complete analysis of the subjects discussed. To determine which investment(s) may be appropriate for you, consult your financial advisor.

Cahaba Welcomes Landon Cobbs

Landon Cobbs
Administrative Assistant

Cahaba Wealth Management is excited to share that Landon Cobbs has joined our Nashville team as an Administrative Assistant!

Landon brings expertise in administrative support as she joins us from working with a boutique business management firm. In her previous role, she provided comprehensive support to her team, utilizing Quickbooks and offering valuable assistance in bill processing, invoicing, and payment procedures. Landon holds a Bachelor’s degree in Psychology with a minor in History from Sewanee: The University of the South. During her time at Sewanee, she was actively involved in philanthropic activities and event coordination within a sorority.

Originating from Birmingham, AL, Landon has also resided in San Francisco and Seattle before settling in Nashville. Outside of work, she enjoys outdoor activities such as walking and white water kayaking, as well as spending time with friends and family. Eager to contribute to the Cahaba team, she is committed to continuous learning and growth within the organization.