Introducing Warren Street Global Equity ETF (WSGE) – An Informed Approach to Diversification

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We’re thrilled to announce a major milestone for our firm and our clients: the launch of the Warren Street Global Equity ETF (NASDAQ: WSGE)!

This new Exchange-Traded Fund (ETF) is now available, bringing our disciplined investment philosophy to the public in a convenient, accessible format. This is an exciting step forward as we continue to provide sophisticated investment solutions while delivering on our fiduciary commitment.

The Warren Street Wealth Advisors team celebrates the launch with a visit to the NASDAQ MarketSite in Times Square, New York.

What is WSGE and Why Did We Create It?

The Warren Street Global Equity ETF (WSGE) is designed to be a smarter way to invest in the global stock market. The traditional choice has always been either a simple, broad index fund or a complicated, expensive actively managed fund. We created WSGE to give you the best of both worlds: global diversification with a smart strategy built to enhance returns.

Focus on You: The Key Client Benefits

While the investment strategy is robust, the most important reason we created WSGE is to provide direct, tangible benefits to you, our clients, and to uphold our fiduciary standard:

  • Embedded Tax Efficiencies: As an ETF, WSGE is structured to minimize capital gains distributions compared to traditional mutual funds. This powerful tax efficiency helps you keep more of your investment returns, making your portfolio work harder over the long term.
  • Economies of Scale: By bundling diverse global exposures and our proprietary strategy into a single vehicle, we achieve significant economies of scale. This approach reduces complexity and overall costs, effectively providing you with institutional-quality management at a lower expense.
  • Uniformity Across Clients: WSGE ensures every client benefits from the exact same research-driven exposure and proprietary factor tilts. This uniformity across clients leads to greater consistency, streamlined execution, and clearer reporting, regardless of account size.
  • Time Savings & Simplicity: The single-fund structure drastically simplifies trade execution, rebalancing, and overall portfolio maintenance. This provides time savings for both our advisory team and you, the client, allowing us to focus more on your comprehensive financial plan, retirement goals, and tax strategies.

Learn More

When you invest in WSGE, you’re accessing the same level of rigorous due diligence that defines Warren Street Wealth Advisors. We meticulously select the fund’s underlying investments, focusing on quality management, low cost, and alignment with our goals.

We are proud to bring this innovative solution to market and look forward to partnering with you on your journey toward long-term capital appreciation.

To learn more about the fund, view the prospectus, and review important disclosures, please visit warrenstreetetf.com.

Phillip Law, CFA

Senior Portfolio Manager, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Important Information

The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. This and other important information is contained in the prospectus, which may be obtained by following the links Prospectus and Summary Prospectus or by calling +1.714.876.6200. Please read the prospectus carefully before investing.

The Fund is actively-managed and is subject to the risk that the strategy may not produce the intended results. The Fund is new and has a limited operating history to evaluate.

Median 30 Day Spread: is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.

Basis Points (bps): A unit of measure used in quoting yields, changes in yields or differences between yields. One basis point is equal to 0.01%, or one one-hundredth of a percent of yield and 100 basis points equals 1%.

Equity Investing Risk. An investment in the Fund involves risks similar to those of investing in any fund holding equity securities, such as market fluctuations, changes in interest rates and perceived trends in stock prices. The values of equity securities could decline generally or could underperform other investments. In addition, securities may decline in value due to factors affecting a specific issuer, market or securities markets generally.

Fixed-Income Risk. The market value of fixed-income securities will change in response to interest rate changes and other factors, such as changes in the effective maturities and credit ratings of fixed-income investments. During periods of falling interest rates, the values of outstanding fixed-income securities and related financial instruments generally rise. Conversely, during periods of rising interest rates, the values of such securities and related financial instruments generally decline. Fixed-income investments are also subject to credit risk.

Large-Capitalization Companies Risk. Large-capitalization companies may trail the returns of the overall stock market. Large-capitalization stocks tend to go through cycles of doing better – or worse – than the stock market in general. These periods have, in the past, lasted for as long as several years.

Mid-Capitalization Companies Risk. Investing in securities of mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. Often mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Depositary Receipt Risk. ADRs and GDRs are generally subject to the risks of investing directly in foreign securities and, in some cases, there may be less information available about the underlying issuers than would be the case with a direct investment in the foreign issuer. ADRs are U.S. dollar-denominated receipts representing shares of foreign-based corporations. GDRs are similar to ADRs but are shares of foreign-based corporations generally issued by international banks in one or more markets around the world.

Risk of Investing in Other ETFs. Because the Fund may invest in Underlying ETFs, the Fund’s investment performance is impacted by the investment performance of the selected Underlying ETFs. An investment in the Fund is subject to the risks associated with the Underlying ETFs that then-currently comprise the Fund’s portfolio. At times, certain of the segments of the market represented by the Fund’s Underlying ETFs may be out of favor and underperform other segments.

Focus Investing Risk. The Fund seeks to hold the stocks of approximately 40 companies. As a result, the Fund invests a high percentage of its assets in a small number of companies, which may add to Fund volatility.

Foreign Investment Risk. Returns on investments in foreign securities could be more volatile than, or trail the returns on U.S. securities. Investments in or exposures to foreign securities are subject to special risks,  including differences in information available about issuers of securities and investor protection standards. In addition, foreign securities denominated in other currencies could decline due to changes in local currency.

Factor-Based Investing Risk. There can be no assurance that the factor-based investment selection process employed by the Sub-Adviser will enhance the Fund’s performance. Exposure to the different investment cycles identified by the Sub-Adviser may detract from the Fund’s performance in some market environments.

ETFs may trade at a premium or discount to their net asset value. ETF shares may only be redeemed at NAV by authorized participants in large creation units. There can be no guarantee that an active trading market for shares will exist. The trading of shares may incur brokerage.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. We make no representation or warranty as to the accuracy or completeness of the information contained herein including third-party data sources. The views expressed are as of the publication date and subject to change at any time. No part of this material may be reproduced in any form, or referred to in any other publication without express written permission. References to other funds should not to be interpreted as an offer or recommendation of these securities.

An investment in the Fund involves risk, including possible loss of principal. Exchange-traded funds (ETFs) trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value (NAV), and are not individually redeemable directly with the ETF. Brokerage commissions and ETF expenses will reduce returns. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the Fund, which should be considered carefully when making investment decisions. For a complete description of the Fund’s principal investment risks, please refer to the prospectus.

Shares of the Funds Are Not FDIC Insured, May Lose Value, and Have No Bank Guarantee.

The Fund is distributed by PINE Distributors LLC. The Fund’s investment adviser is Empowered Funds, LLC, which is doing business as ETF Architect. Warren Street Wealth Advisors, LLC serve as the Sub-advisers to the Fund. PINE Distributors LLC is not affiliated with ETF Architect or Warren Street Wealth Advisors, LLC. Learn more about PINE Distributors LLC at FINRA’s BrokerCheck.

ETFAC-4941235-10/25

Claiming Social Security: What’s a Break-Even?

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When you’re deciding when to start claiming Social Security benefits, you’re facing a trade-off. Claim as early as age 62, and you’ll receive a larger number of smaller payments. Delay as late as age 70, and you’ll receive a smaller number of larger payments. To weigh your options, it’s helpful to find your “break-even” point—the age at which waiting longer to claim Social Security will result in a greater lifetime benefit. 

Picking the Right Horse

To begin, here’s a little scenario to help illustrate what a break-even is. Imagine a race between two horses—Early Bird (No. 62) and Late Breaker (No. 70). Late Breaker is a faster horse than Early Bird, no question. So to keep the competition interesting, Early Bird gets a half-lap head start. 

We know that, given enough time, Late Breaker will eventually catch up to Early Bird. Let’s call that moment the break-even. If the race ends any time after that break-even point, Late Breaker is a sure thing. If the race ends any time before the break-even, all the smart money is on Early Bird.

We can think of the way Social Security benefits accumulate in a similar way. Claiming early gives you a head start in accumulating benefits, but they come at a slower pace. Claiming later can earn you bigger checks, but it will take time before it catches up to the total accumulated benefits of claiming earlier. If you live past that break-even point, you will ultimately receive more income by claiming later. If you don’t, you will receive more by claiming earlier.

A Concrete Example

In reality, there are more than two horses in a race, and there are more than two options for when to start claiming Social Security benefits. In fact, you can choose any point after you reach your early retirement age of 62. For every year between the ages of 62 and 70, your monthly benefits will increase. (You can wait longer than age 70, but your benefits won’t continue to grow.) Any two points between ages 62 and 70 will have their own break-even.

Let’s consider three scenarios:

  • 1. You claim your benefits at age 62.
  • 2. You wait until full retirement age (67 for anyone born in 1960 or later) to claim. 
  • 3. You wait until age 70 to claim.

If you claim at 62—60 months before you reach full retirement age (FRA)—your checks will be 30% smaller than your full Social Security benefit. If your full monthly benefit is $2,000, your checks will be pared back to $1,400.

If you claim at full retirement age (67), you will receive the full $2,000 every month. 

If you delay your claims until age 70, your checks will be 24% larger than your full benefit. Instead of $2,000, you receive $2,480.  

If you chart the accumulated benefits of those three scenarios on a line graph, you’ll find the break-evens where the lines intersect:

You’ll notice that the break-even between claiming at 62 and claiming at 67 is around age 78. Meanwhile, the break-even between claiming at 67 and claiming at 70 is around age 82, and the break-even between claiming at 62 and claiming at 70 is around age 80.

There’s a lot of math to consider—including a key variable we haven’t discussed: how long you expect to live. If you expect to live past 78, claiming benefits at full retirement age may be worth more over time than claiming at 62. If you expect to live past 83, then claiming benefits at age 70 may be worth more over time than claiming at 67. If you expect to live past 80, then claiming benefits at age 70 may be worth more over time than claiming at 62. 

Of course, none of us can predict our life expectancy with any certainty. But we can make some educated guesses based on factors like our current health and our family medical history. For instance, if both of your parents lived well into their 90s, you might have more confidence in your own life expectancy.

Other Important Considerations

Break-evens are a useful tool in deciding when to start claiming Social Security benefits, but they aren’t the only factor. For example, you may prefer to have more money in the early part of your retirement so you can spend more on the experiences money can buy. Coming out ahead in the final tally may be less important to you.

Depending on your specific circumstances, there may be strategic reasons to claim early or claim late—say, to reduce your tax burden or to fill in a necessary income gap. These reasons make this decision about more than simply pitting your expected longevity against different break-even points.

We don’t expect you to calculate break-evens for every possible scenario. Understanding the concept of break-even will help you take a more informed approach to this important decision on your retirement journey. We’re happy to work with you to do the math for different claiming strategies and how they might fit in with your larger financial picture and retirement goals. As always, the best choice is the one that makes the most sense for you.

Justin D. Rucci, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Decoding the AI Hype: How Today’s Market Compares to the Dot-Com Bubble

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You’ve likely seen headlines comparing today’s AI-driven market to the late-1990s dot-com era. We take those comparisons seriously. This note outlines what’s different today, what still deserves caution, and, most importantly, how we’re positioning your strategy to hold up across a range of outcomes.1

Where Valuations Stand

Stock prices have climbed, and by simple measures of “price versus earnings,” the market looks more expensive than its long-term average. That’s a reason for discipline. However, it’s also true that the broad market remains below the most extreme levels reached in the late 1990s. You can see this in the valuation charts that track the relationship between prices and earnings over time.2

What’s Different From Dot‑Com Era

Back then, Barron’s magazine cover story in March 2000, called “Burning Up,” reported that 74% of 207 publicly traded internet companies had “negative cash flows” and at least 51 of those companies were projected to run out of money in the next 12 months. In contrast, today the largest parts of the market are producing real earnings, and overall profit margins across the major U.S. index remain above their five-year average. That doesn’t remove risk, but it does mean prices are supported by business results that we didn’t see from some companies in the dot-com cycle. FactSet’s latest quarterly review provides a good snapshot.3

AI Isn’t Just a Story—There’s Heavy Investment Behind It

A big reason certain companies have led is the build-out of the “plumbing” for AI: data centers, chips, software, and power. You can see this in government data, which shows manufacturing construction near record highs, much of it related to chip facilities, and in rising business spending on information-processing equipment and software. Those are dollars going into real plants, servers, and tools that support future productivity.4,5

Real Fundamentals – But Are AI Profits a Distant Dream?

Today’s AI landscape, where players boast robust business models and real fundamentals stemming from their core businesses, still is not without questions. While fortress balance sheets, resilient revenue, and strong earnings growth remain in place, the central point becomes: does the uncertain return on investment for AI justify the existing valuation levels, even if they aren’t as extreme as the Dotcom era? 

We have to remember that many of today’s leading AI companies still look expensive based on profits they made last year. Meanwhile, the forward looking bull-argument rests entirely on whether their earnings will grow to meet the evergrowing mountain of expectations. 

Intertwining Illusions of Growth

Beyond the frothy valuations, the AI hyperscaler ecosystem can feel like an Ouroboros (i.e.,  a snake that eats its own head). Okay, maybe that’s a bit extreme. However, it doesn’t take away from the increasingly circular dance of chipmakers, cloud providers, and foundational AI companies increasingly investing in one another.

Take for example, Microsoft’s $13billion investment in OpenAi in exchange for OpenAI agreeing to purchase $250 billion in Azure cloud services over the next decade. Microsoft is relying on OpenAI to find real, external customers to honor commitments in due time. 

However, readers should ask – even if OpenAI succeeds in building an Artificial Generative Intelligence (AGI), will there be enough downstream demand for its products and services (especially if AI is displacing jobs)? Or will the primary customer base for AGI simply be the same tech giants who funded its creation? With more interdependence, one setback amongst one of these players could ripple across the entire industry. 

Put simply, today’s “booming” AI revenue isn’t necessarily from new, organic customers with demand for AI services – it’s an internal recycling of investment capital that creates an illusion of growth where economic profit from external customers remains largely hypothetical. While long-term prospects for AI remain strong and we aren’t predicting a bubble, does being invested in an “expensive,” concentrated space predicated on nascent technologies warrant a closer look?  We think it does.

How We’re Managing Your Strategy

That brings us to AI and concentration levels in US Markets. While we’re not sounding alarm bells or declaring an “AI Bubble,” we do recognize concentrated exposure in US Markets (and especially to AI) presents vulnerabilities. That’s why we continue to build adequately diversified portfolios that not only invest around the globe, but also across asset classes such as bonds, gold, and commodities. Recently, we’ve performed a partial rebalance of our market-cap weighted S&P 500 holdings (heavily concentrated to AI) towards US companies with stronger balance sheets and profitability (i.e., “quality” characteristics). Ultimately, we believe we’re in a state where diversifying our client’s sources of “risk” will be prudent for meeting their long-term goals.

If you’d like to meet and discuss how your portfolio is positioned for both stronger and more challenging environments, please give us a call to schedule a meeting.9,10

Bottom line, your portfolio is being actively managed with vigilance and care, and we’re always here if you’d like to discuss further.

Phillip Law, CFA

Senior Portfolio Manager, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Sources:

1. Insights.com, October 08, 2025. “This Is How the AI Bubble Bursts” https://insights.som.yale.edu/insights/this-is-how-the-ai-bubble-bursts Yale Insights

2. Yardeni.com, 2025. “Stock Market P/E Ratios“ https://yardeni.com/charts/stock-market-p-e-ratios/ Yardeni Research

The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.

The term “Magnificent 7” refers to a group of seven influential companies in the S&P 500, including Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Tesla, and Meta Platforms.

The S&P MidCap 400 is a benchmark for mid-sized companies. The index is designed to measure the performance of 400 mid-sized companies,

The S&P SmallCap 600 is a benchmark for small-cap companies. The index is designed to track companies that meet inclusion criteria, which include liquidity and financial viability.

3. FactSet.com, October 31, 2025. “Earnings Insight” https://www.factset.com/earningsinsight factset.com

4. Fred.StLouisFed.org, September 25, 2025. “Total Construction Spending: Manufacturing (TLMFGCONS) (manufacturing construction near record highs)” https://fred.stlouisfed.org/series/TLMFGCONS FRED

5. Fred.StLouisFed.org, September 25, 2025. “Private fixed investment in information processing equipment and software” https://fred.stlouisfed.org/series/A679RC1Q027SBEA FRED

6. FederalReserve.gov, October 29, 2025. “Statement” https://www.federalreserve.gov/newsevents/pressreleases/monetary20251029a.htm Federal Reserve

7. Reuters.com, October 29, 2025. “Fed to end balance-sheet reduction on Dec 1, 2025; cuts rates by 0.25%” https://www.reuters.com/business/finance/fed-end-balance-sheet-reduction-december-1-2025-10-29/ Reuters

8. Bloomberg.com, September 30, 2025. “What a US Government Shutdown Means for Markets” https://www.bloomberg.com/news/newsletters/2025-09-30/what-a-us-government-shutdown-means-for-markets Bloomberg 

9. Corporate.Vanguard.com, 2025. “Vanguard’s Principles for Investing Success” https://corporate.vanguard.com/content/dam/corp/research/pdf/vanguards_principles_for_investing_success.pdf Vanguard

10. Morningstar.com, April 1, 2025. “Q1’s Biggest Lesson for Investors: Diversification Works” https://www.morningstar.com/markets/q1s-biggest-lesson-investors-diversification-works

Your Year-End Financial Planning Checklist

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As the year draws to a close, it’s the perfect time to review your financial situation and set yourself up for a strong start in the new year. Year-end financial planning can help you optimize your tax situation, review your investment performance, and make sure you’re on track to meet your long-term goals.

Here’s a checklist to guide you through the process:

1. Maximize Your Retirement Contributions:

  • 401(k) or 403(b): If you haven’t already, now is the time to max out your employer-sponsored retirement plan. For 2025, the contribution limit is $23,500, with an additional $7,500 catch-up contribution for those age 50 and over. For those aged 60 to 63, you can contribute up to $11,250 as a “super catch-up”, for a total of $34,750.
  • IRA: Contribute to your traditional or Roth IRA. The 2025 limit is $7,000, with a $1,000 catch-up contribution for those age 50 and over. Remember, you have until the tax-filing deadline in April 2026 to make these contributions. 
  • Solo 401(k) or SEP IRA: If you’re a small business owner or self-employed, consider making contributions to these plans to reduce your taxable income.

2. Review Your Investment Portfolio:

  • Rebalance: Check your asset allocation to ensure it aligns with your risk tolerance and financial goals. If one asset class has significantly outperformed, you may need to sell some of it and buy into an underperforming one to get back to your target allocation.
  • Tax-Loss Harvesting: This is a strategy that involves selling investments at a loss to offset capital gains and up to $3,000 of ordinary income. This can be a great way to reduce your tax bill, but be mindful of the wash-sale rule. If you are a client of ours, we do this automatically.

3. Optimize Your Tax Situation:

  • Charitable Giving: Donations to qualified charities are tax-deductible. Consider making year-end contributions, or even donating appreciated stock to avoid capital gains tax.
  • Flexible Spending Account (FSA): Use up the funds in your FSA before the year-end deadline. You could lose any money left in the account.
  • Health Savings Account (HSA): If you have an HSA, you can contribute up to $4,300 for an individual or $8,550 for a family in 2025. HSAs offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
  • Deductible Expenses: Gather receipts and documentation for potential tax deductions, such as property taxes, mortgage interest, and medical expenses.

4. Review Your Estate Plan:

  • Wills and Trusts: Ensure your will and trust documents are up to date and reflect your current wishes.
  • Beneficiaries: Check the beneficiary designations on your retirement accounts, life insurance policies, and annuities. These designations supersede your will, so it’s crucial to make sure they’re accurate.
  • Power of Attorney: Confirm that you have a durable power of attorney and a healthcare proxy in place.

5. Look Ahead to the New Year:

  • Budget Review: Analyze your spending from the past year to identify areas where you can save more.
  • Financial Goals: Revisit your short-term and long-term financial goals and make a plan to achieve them.
  • Meet with Your Financial Advisor: A comprehensive year-end review is the perfect opportunity to discuss your progress and make any necessary adjustments with your financial advisor.

By taking the time to review these key areas, you’ll not only gain a clearer picture of your current financial health but also lay the groundwork for a successful and prosperous new year.

Veronica Cabral

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

What Should I Do With an Inherited IRA?

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Inheritances come in all shapes and sizes, whether an heirloom left to you by a loved one or a life-changing financial windfall. Regardless of the form it takes, figuring out what to do next can be a crucial question. This is especially true with inherited IRAs, which can be very well funded, but also come with very specific and complicated rules you must follow to unlock the assets within them. 

This guide will walk you through the basics of what to do. From there, we can review your personal situation together to help ensure you don’t overlook anything important.

What Kind of Beneficiary Are You?

When you inherit an IRA, the very first step is to figure out what type of beneficiary you are. Here’s why: There are three main types, and the rules around key issues like withdrawal requirements will differ depending on which type you are. 

You will fall into one of the following categories:

Designated beneficiary. You are the person named as the beneficiary on the retirement account itself.

Eligible designated beneficiary. You are a designated beneficiary who is also any one of the following:

  • Spouse or minor child of the account owner.
  • Someone not more than 10 years younger than the account owner. (Someone whose age is equal to or greater than the age of the account owner minus 10.)
  • Someone who meets the IRS’s definition of chronically ill or disabled.

Nondesignated beneficiary. You are not named as the beneficiary on the retirement account itself, but you may inherit the IRA through a will or estate.

Another important step you might have to take early: If the owner of the account you inherit was taking required minimum distributions (RMDs)—the mandatory withdrawals from tax-deferred retirement account that start when the account owner reaches age 73—you’ll need to make that withdrawal before the end of the current calendar year. If you don’t, you’ll risk triggering a 25% penalty on the amount of that distribution. 

Options for Your Inherited IRA

When you inherit an IRA, you have several choices for how to handle that account.

Disclaim it: If for any reason you don’t want to accept the IRA—such as avoiding tax consequences from additional income—you can refuse it by disclaiming it. If you decide to take this route, you must disclaim within nine months of the account owner’s death. The IRA will then be passed to an alternate beneficiary or to the estate.

Take a lump-sum: You can opt to withdraw all the funds of the IRA at once. If it’s a traditional IRA, the IRS will tax the withdrawal as income, which may bump you into a higher tax bracket. If it’s a Roth IRA, the withdrawal is tax-free, but the account must be at least five years old to avoid incurring a 10% penalty.

Withdraw assets over time: If you don’t want to take a lump sum, you can keep the assets in an inherited IRA, where they can continue to grow tax deferred. This is where things get a bit more complicated depending on what type of beneficiary you are. 

If you’re a designated beneficiary (but not an eligible designated beneficiary), you must empty the inherited IRA within 10 years to avoid penalties on undistributed amounts. The clock starts ticking a year after the original owner’s death. So if the original owner died in 2024, you’d have until December 31, 2034 to empty the account. Also, if the original account owner had already started taking RMDs, you’ll have to continue taking them based on your own life expectancy each year to avoid penalties. (Don’t worry about calculating your own life expectancy. The IRS does that for you through its life expectancy tables, and we can work with you to make sure you get it right.)

If you’re an eligible designated beneficiary, you generally aren’t subject to the 10-year rule. You’ll have to take RMDs, but you can calculate the amount based on your own life expectancy and hold onto the inherited IRA indefinitely. An exception to this is minor children. For them, the 10-year rule will kick in at age 21.

If you’re a nondesignated beneficiary inheriting the IRA through a will or an estate, your requirements are determined by the account owner’s age. If the account owner hadn’t reached the age where distributions were required, you must empty the account within five years. If the account owner had begun taking RMDs, you will continue to take RMDs based on the same timeline.

Transferring funds to your own IRA: If you are a surviving spouse, you have the option to roll the assets from an inherited IRA into an IRA in your own name. If the original account owner hadn’t taken an RMD for the current year, you’ll have to take that RMD on their behalf before moving the funds.

Let Us Simplify the Process for You

Inheriting an IRA, like receiving any inheritance, can feel both meaningful and overwhelming. It’s a reminder that someone cared for you, but it comes with important financial decisions. 

Making the right choices around an inherited IRA can help you avoid big tax bills and penalties. But of all the things there are to know about inherited IRAs, the most important is that you don’t have to figure those choices out alone. We’re here to help you understand your options and move forward with a tax-efficient strategy that supports your financial goals. 

Veronica Cabral

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Introducing Our New Client Service Associate, Nicole Pepper

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We are excited to introduce you to the newest member of the Warren Street team, Nicole Pepper! As a Client Service Associate, Nicole is a key part of our commitment to providing exceptional support to our clients. 

We recently sat down with her to learn more about her role, what motivates her, and how she’s an invaluable asset to our team and, most importantly, to you.

In your role as Client Service Associate, how do you assist Warren Street’s clients?

I support clients with any questions and transactional needs they might have. This also means I get to know clients and walk alongside them as they reach their financial goals, which is fun to see.

As part of the Operations team, I also think of the Warren Street team as a client. It’s my job to help everyone be more effective, whether that be through communication, continuous improvement projects, or just taking tasks off someone’s plate. All of which, ultimately serve our clients.

What impact do you hope to make at Warren Street?

How does Warren Street align with your personal values?

Warren Street tends to stand out and, as I like to say, “they come by it honest.” Everyone is incredibly intelligent, good at what they do, and sincere in how they do it. It creates an effusive, unfeigned environment where everyone has license to be the best version of themselves.

This aligns with my values on so many levels, but especially my faith-driven belief that goodness is personified in each and every one of us, and the sum total can be incredibly effective. 

Who or what motivates you?

Family. I constantly strive to be as kind, as grateful, and as hard working as them. It’s not just one particular person either – my aunts, uncles, parents, grandparents, and in-laws are all so big-hearted and down to earth.

The older I get, the more I recognize how much good they put into the world just by being themselves. It motivates me to continue the legacy, so to speak.

What do you enjoy doing outside of work?

I enjoy cooking, reading, and just about anything that involves being outside. I also love spending time with close friends and family. Some of my favorite memories are conversations over the dinner table, or the board games we played after.

What are three fun facts about you?

  1. As a kid, I went to the library every week, and to this day, I still check out/read 100+ books a year.
  2. I speak fluent Spanish.
  3. In high school, I was voted “Most Dedicated”.

We are thrilled to have Nicole on board. Her dedication to client service and her passion for helping others makes her an excellent addition to the Warren Street family. Please join us in giving her a warm welcome!

Jennifer Battles

Director of Operations, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Should I Be Using a Health Savings Account?

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Choosing a health care plan at work can be a bit of a headache—charts comparing premiums, copays and deductibles isn’t exactly light reading. One option you might have encountered in this process is the high-deductible health plan (HDHP). The name might sound intimidating. After all, who really wants to pay high deductibles? But when paired with a health savings account (HSA), an HDHP can be a powerful tool to help you save for your health care now and your future.

What is an HDHP?

An HDHP is a type of health insurance plan that comes with lower monthly premiums but higher out-of-pocket costs. In other words, you’ll pay less each month, but you’ll be on the hook for more when you actually visit a doctor. These plans shift more financial risk to you in exchange for upfront savings—and they often come with access to an HSA.

An HSA allows you to set aside pre-tax money to pay for qualified medical expenses like doctor visits, prescriptions, dental care and vision services. Unlike a flexible spending account (FSA), which is “use it or lose it,” the money in an HSA is yours to keep. It rolls over from year to year, stays with you if you change jobs and often has investment options.

What makes HSAs especially appealing are their triple tax benefits:

  • Tax-deductible contributions.
  • Tax-free growth on investments inside the HSA.
  • Tax-free withdrawals at any time if the money is used for qualified medical expenses.

These features make HSAs one of the most tax-efficient savings vehicles available. But there’s another way to get more from your HSA: It can serve as a powerful retirement savings vehicle. 

Should You Use a High-Deductible Health Plan?

Before we get to the benefits of an HSA as an investment vehicle, how do you decide whether to use an HDHP in the first place? Choosing between a traditional plan and an HDHP depends on a few key factors.

First, compare the total potential cost under each plan. That means looking at monthly premiums, deductibles, coinsurance and out-of-pocket maximums. HDHPs typically offer significantly lower monthly premiums but come with higher deductibles. If you’re generally healthy and don’t expect to need much medical care, this tradeoff could work in your favor.

But be honest with yourself about your cash flow. If you had a sudden medical emergency, would you be able to cover the high out-of-pocket costs until your insurance kicks in? For people with chronic health conditions or frequent doctor visits, a traditional plan might offer more predictable costs.

Using an HSA as a Retirement Account

Once you’ve maxed out your traditional retirement accounts, an HSA becomes an excellent next stop. HSA contribution limits are $4,300 for self-only coverage and $8,550 for family coverage in 2025. You can leave that money in cash or invest it. You can, of course, use it to pay for qualified out-of-pocket medical expenses at any time. But you can also leave it in the account untouched, letting it grow and enjoy the power of tax-advantaged compounding—just as you would with an IRA or 401(k). 

Health care is one of the biggest expenses in retirement. So building a tax-free fund dedicated to future medical needs makes a lot of sense. According to recent estimates, a 65-year-old retiring in 2024 can expect to spend around $165,000 on health care in retirement—and that number is only expected to rise.

Here’s the kicker: When you turn 65, you aren’t limited to using your HSA for medical expenses. You can make withdrawals for non-medical expenses, and these will simply be taxed as income, just like withdrawals from a traditional IRA or 401(k). In short, your HSA can function like a traditional retirement account with the added perk of tax-free withdrawals for medical expenses at any age.

Your HSA as Part of Your Investment Strategy

Your HSA is a financial asset, whether it’s sitting in cash or invested in the market. As such, it can play an important role in your strategies for long-term asset allocation, diversification and rebalancing. Managed well, it can contribute meaningfully to your future financial security.

You can manage your HSA investments on your own. Or, depending on your HSA provider, we may be able to manage the assets within the account on your behalf. Even if direct management isn’t possible, we’re here to help you evaluate your options, choose appropriate investments and determine how best to incorporate your HSA into your long-term plan.

If you’re not sure whether an HDHP and HSA are right for you, let’s talk. Together, we can evaluate your health needs, cash flow and retirement goals to determine the best path forward.

Bryan Cassick, MBA, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Rate Cut vs. Reality: Making Sense of Powell’s Mixed Signals

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Investors finally got the interest rate cut they were waiting for last month, but comments from the Federal Reserve Chair have some of them scratching their heads. Let’s see if we can make sense of these mixed signals.

Jerome Powell Brings Investors Up Short

The Fed reduced its target federal funds rate by 0.25% on September 17. Rate cuts tend to make equity investors optimistic: They figure lower interest rates will reduce borrowing costs, goosing economic activity and hopefully boosting corporate earnings and stock prices. This time around, investors may think the Fed cut helps validate the S&P 500’s nearly 35% gain since it bottomed in early April. 

Then, a week after cutting rates, Fed Chair Jerome Powell uttered these words:

“By many measures…equity prices are fairly highly valued.”

Powell’s seemingly innocuous statement sounded like a loud needle scratch to some investors. Fed chairs don’t often comment on stock prices, so the fact that he chose this moment to highlight steep valuations raised questions. 

Is Powell—a renowned economist with more and better information than just about anybody—saying stocks are too highly valued? Are prices about to drop? Should you sell before it’s too late?

Are Stocks Expensive Right Now?

On the surface, it’s hard to quibble with Powell’s take. The most common way to gauge the broad stock market’s valuation is to look at the price-to-earnings (P/E) ratio of the S&P 500. And it’s high: As of September 26, the S&P 500’s P/E was 20% above the average of the past 10 years.1  

But the topic deserves a little more context. Certain parts of the stock market are driving up the average, so it’s probably more accurate to say that some equity prices are fairly highly valued. 

Specifically, tech stocks have risen on investor optimism about the potential for AI to drive future earnings. The tech sector had a P/E ratio over 30 as of October 1, compared to about 23 for the S&P 500 as a whole. By contrast, the energy, financials, health care, materials and utilities sectors all had P/Es in the teens.2  

Should You Sell When Stocks Are Pricey?

Everybody knows the investing adage “Buy low, sell high.” However, applying this in practice isn’t always straightforward. Fact is, pricey stocks can get more expensive, such that exiting stock positions solely based on valuations can materially harm portfolio outcomes in the short-term. In fact, a study by LPL Financial comparing historical stock market valuation to returns over the next 12 months found “no relationship whatsoever.”3

Just ask another renowned Fed Chair, Alan Greenspan. Almost 30 years ago, he famously described “irrational exuberance” in the stock market—and the S&P 500 surged more than 100% over the following four years.4

While valuations are a poor short-term timing tool, it’s true that high valuations can temper future returns.5 To address this, we have recently implemented a rebalancing strategy across our client accounts. This essential process automatically takes profits from assets that have become highly valued and redirects those funds to areas we believe have better forward-looking potential, ensuring your allocation stays on target.

Run-ups in the prices of some investments can throw off your asset allocation—the percentage of your portfolio you have devoted to specific investment types. That’s why we periodically rebalance your portfolio, resetting your allocations to your long-term targets. This process automatically reduces how much you have in assets that have gained the most and redirects those resources toward assets that have lagged.

Your financial plan is designed to weather the short term so you can focus on the long term. But if there’s ever a news story that gives you pause, you can always reach out to us to help put it into perspective.  

Phillip Law, CFA

Senior Portfolio Manager, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

Sources:

  1. FactSet Earnings Insight, September 26, 2025. P/E based on forward earnings.
  2. Yardeni Research, October 2, 2025. P/Es based on forward earnings.
  3. LPL Financial, “Valuations Aren’t Great Timing Tools,” March 6, 2024.
  4. “Back in the ‘90s a Fed chief warned about ‘irrational exuberance’ in the markets. Stocks rose 105% over the next four years.” Fortune, September 30, 2025
  5. LSEG, “Do valuations correlate to long-term returns?” January 23, 2025

Financial Planning for Open Enrollment: A Guide to Making Smart Choices

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Open enrollment is your annual opportunity to review and select your employee benefits for the upcoming year. While it might seem like just another task on your to-do list, the choices you make now can have a significant impact on your health and finances. Don’t simply “roll over” last year’s elections without a review. A proactive approach will ensure your benefits align with your needs and goals. 

Analyzing Your Health Insurance Options

Start by assessing your current situation. Think about your health needs from the past year: how many doctor’s visits did you have? What were your prescription costs? Do you anticipate any major life changes, such as getting married or having a baby? These factors will help you choose the right plan.

Understanding Key Terms

Before diving into plan specifics, it’s crucial to understand a few key terms:

  • Premium: The fixed monthly cost you pay for your insurance plan.
  • Deductible: The amount you pay out of pocket before your insurance coverage begins.
  • Copay: A fixed amount you pay for a doctor’s visit or prescription after your deductible is met.
  • Coinsurance: A percentage of costs you pay for covered services after the deductible is met.
  • Out-of-Pocket Maximum: The maximum amount you will pay in a year before the plan covers 100% of costs.

Comparing Plan Types: PPO vs. HDHP

The two most common types of health plans are a Preferred Provider Organization (PPO) and a High-Deductible Health Plan (HDHP).

  • A PPO typically has a lower deductible but higher premiums. It also offers more flexibility for seeing out-of-network doctors. This type of plan is generally best for people who use a lot of medical services, as the costs are more predictable.
  • An HDHP has a higher deductible but lower premiums. While you’ll pay more upfront for care, this type of plan makes you eligible for a Health Savings Account (HSA). An HDHP is often a great choice for generally healthy individuals or those who can comfortably afford the higher upfront costs if a major health event were to occur.

To help with your decision, compare the total estimated annual cost of each plan. For example, calculate the premiums plus potential out-of-pocket costs for a year with no major health events versus a year with a major surgery. This simple exercise can reveal which plan offers the most financial sense for your situation.

Maximizing Your Tax-Advantaged Accounts

In addition to health insurance, open enrollment is your chance to enroll in or update contributions to valuable tax-advantaged accounts.

Flexible Spending Accounts (FSA)

An FSA allows you to use pre-tax dollars for qualified medical or dependent care expenses, which lowers your taxable income. The key rule to remember is “use it or lose it”—funds typically do not roll over from one year to the next. Carefully estimate your upcoming year’s expenses to avoid forfeiting any money.

Health Savings Accounts (HSA)

An HSA is a powerful financial tool with a triple tax advantage:

  1. Contributions are pre-tax.
  2. Funds grow tax-free.
  3. Withdrawals for qualified medical expenses are tax-free.

Unlike an FSA, an HSA is portable, meaning the account belongs to you even if you change jobs. This makes it an excellent long-term savings tool. After age 65, you can withdraw funds for any reason without penalty, although non-medical withdrawals are subject to income tax. Remember, an HSA is only available if you are enrolled in an HDHP.

Reviewing Other Important Benefits

Don’t stop at health insurance; open enrollment is the perfect time to review your other benefits.

Retirement Contributions

Check your retirement contributions to your 401(k) or 403(b). If your employer offers a matching contribution, be sure you’re contributing at least enough to get the full match—it’s free money! Consider increasing your contribution rate by at least 1% each year. Small, consistent increases can make a huge difference over time.

Life and Disability Insurance

  • Life Insurance: Review your coverage needs based on your dependents and debts. Your employer may provide basic coverage, but you might need supplemental, voluntary coverage to fully protect your loved ones.
  • Disability Insurance: This benefit protects your income if you are unable to work due to illness or injury. Review your short-term and long-term disability options to ensure your income is protected.

Final Steps and Action Plan

Making your benefit selections requires a few final steps to ensure you’re fully prepared.

  1. Check Beneficiaries: In case of a major life change like a marriage or divorce, update the beneficiaries on all your accounts (retirement, life insurance) to ensure your assets go to the right people.
  2. Gather Your Information: Have all your plan documents, a list of your regular doctors, and an estimate of last year’s medical expenses ready. This information will help you make a more accurate and informed choice.
  3. Make Your Choices and Submit: Be mindful of the deadline and submit your final selections on time.

By taking the time to review your options and make informed decisions, you can ensure your benefits package is working for you and your financial well-being. Be sure to reach out to your advisor to discuss any of these items in more detail.

Justin D. Rucci, CFP®

Wealth Advisor, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.

The Power of Purpose in Retirement

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Retirement is a major life shift, one that impacts more than just your schedule. It can reshape your sense of identity, daily habits and even your health. In fact, research has shown that retirement can raise the risk of heart disease and other medical issues by up to 40%. The reason? Experts point to a loss of purpose and reduced social connection, both of which can take a toll on mental and physical well-being.

Without a plan for how to spend your time meaningfully, the transition can bring unexpected emotional challenges.

The Risks of Unstructured Retirement

Many retirees begin this new chapter with a “honeymoon phase”—a period marked by the novelty of free time, relaxation or long-awaited travel plans. But this initial high can eventually fade.

When the excitement of sleeping in and checking items off the bucket list wears off, retirees can find themselves facing unexpected emotional challenges. Common struggles include boredom, loss of routine, identity shifts and social isolation. In fact, 24% of older adults are considered to be socially isolated. Isolation can also have a ripple effect on health: It’s associated with a 50% increase in risk of developing dementia and increased risk of premature mortality.  

Designing a Retirement with Purpose

To avoid some of the potential pitfalls of an unstructured retirement, it’s important to think carefully—and proactively—about purpose. What do you want this next phase of life to look and feel like? Beyond financial planning, consider how you’ll meet the deeper needs your pre-retirement life—including work and raising kids—may have fulfilled: structure, identity, accomplishment, social connection and a sense of meaning.

What brings you pleasure and meaning? What have you always wanted to try or learn? Pursuing these activities can provide purpose and help ensure retirement’s not just a long vacation, but a rewarding chapter of your life.

Feeling stuck here? Try asking close friends or family what they see light you up. Often, others can reflect back passions or strengths that are hard to see on your own. 

Staying Connected and Active

Relationships and physical routines matter more than ever when you retire. Staying active, both physically and socially, offers measurable health benefits. Regular physical activity lowers risks, including the likelihood of dementia, heart disease, stroke and eight types of cancer. 

People-centered activity is important, too. Look for ways to stay engaged, whether through volunteering, mentoring, part-time work, creative pursuits or community involvement. Older volunteers, aged 55 and up, who gave 100 hours or more each year were two-thirds less likely to report poor health than non-volunteers. 

Spending more time with family is a high priority for many retirees and can be a great way to fulfill social needs. But make sure that vision is shared. Open conversations with loved ones about time together, expectations and boundaries can help align plans and avoid disappointment down the road.

The Retirement Identity Shift

In many ways, it’s hard to define what retirement is. After all, it’s not a single moment but a series of transitions. For instance, rather than an abrupt shift to not working at all, you may consider bridge employment—usually part-time work in a temporary position or as a consultant in your field or in a different industry. This can offer a gradual shift into retirement, providing continued income and engagement as you adjust. 

As your vision for retirement evolves, keep us in the loop. We’d love to hear what you’re planning—and we’re here to help ensure your financial strategy stays aligned with your goals.

Emily Balmages, CFP®

Director of Financial Planning, Warren Street Wealth Advisors

Investment Advisor Representative, Warren Street Wealth Advisors, LLC., a Registered Investment Advisor

The information presented here represents opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this document is a solicitation to buy or sell any securities, or an attempt to furnish personal investment advice. Warren Street Wealth Advisors may own securities referenced in this document. Due to the static nature of content, securities held may change over time and current trades may be contrary to outdated publications. Form ADV available upon request 714-876-6200.