vectorwealth.com/contact

-

High-earning families often do everything right: they save, they invest, and they plan ahead. But many still bump into a frustrating limitation—income limits that prevent direct Roth IRA contributions.

In this episode of Well Balanced, Senior Wealth Advisor Mike Nesheim shares a story that highlights a potential solution for high earners: the backdoor Roth IRA.

The household: a physician and spouse were saving diligently, but their high income meant they couldn’t make Roth IRA contributions. They assumed that opportunity was simply off the table. It wasn’t. After reviewing their situation together, Mike showed them how a backdoor Roth IRA could be a powerful long-term planning strategy.

How the Strategy Works

When income is too high for a direct Roth IRA contribution, you may still be eligible to:

        1.     Make a nondeductible (after-tax) contribution to a traditional IRA.

        2.     Convert it to a Roth IRA, where future growth and qualified withdrawals are tax-free.

        3.     Repeat annually if it aligns with your household tax picture.

For this couple, the spouse—who wasn’t working full-time—was still eligible to contribute to an IRA because they filed jointly. That alone opened the door to decades of potential tax-free growth via Roth conversion.

A Word About Rules: The Pro Rata Rule

This isn’t a one-size-fits-all approach. The IRS looks at all your IRA balances when calculating how much of a conversion is taxable. This is known as the pro rata rule. If you only have after-tax IRA contributions with no pre-tax IRA balances, the conversion is generally tax-free. However, if you have pre-tax IRA balances, the conversion will be prorated.

It’s these nuances that make thoughtful planning and coordination with your advisor and tax professional essential.

Done thoughtfully, this strategy may be a meaningful lever in your long-term plan.

If you’re wondering whether a backdoor Roth IRA—or any type of Roth conversion—fits your household, connect with your Vector advisor. We’re here to help you explore your options thoughtfully and in the context of your broader plan.

And if this story resonates or reminds you of someone in your life, feel free to share it. Sometimes the right idea at the right time makes all the difference.

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Learn more: vectorwealth.com/regulatory

-

V25324292

A Moment of Low Consumer Confidence — and What’s Behind It

In the most recent episode of Well-Balanced, Vector’s Jason Ranallo discusses the latest drop in U.S. consumer sentiment. November’s reading from the University of Michigan fell to 50.3, the second-lowest point since the pandemic recovery. The decline spanned age groups, income levels, and political affiliations — though households with larger stock ownership were noticeably more optimistic after a strong market year.

Uncertainty continues to be the biggest drag. Concerns around the government shutdown and signs of a cooling labor market have made consumers hesitant heading into the holidays. Yet inflation expectations — how we believe future prices will behave — remain fairly steady.

Economic Cycles vs. Market Cycles

Cycles are normal. Historically:

(*based on the S&P 500 index over the last ~100 years)

Each downturn feels unique while we’re in it — the 1970s, the dot-com era, the financial crisis, the pandemic — yet markets have recovered every time, often stronger than before.

Where Things Stand Today

Despite low sentiment, several fundamentals remain supportive:

Periods like this — when confidence is low but fundamentals are stabilizing — have historically preceded some of the strongest one-year market returns.

A Framework for Uncertain Environments

Two core principles that guide Vector’s planning approach:

Take Aways

Low consumer confidence doesn’t always signal weakness in markets. Sometimes, it simply reflects uncertainty during transition — and history shows that patient, long-term investors have often benefited by sticking to the plan.

If you’d like to review how your own financial buckets are positioned for the next few years, feel free to reach out.

And if you found this helpful, share this Well-Balanced episode with anyone who might appreciate the perspective.

vectorwealth.com/contact

vectorwealth.com/regulatory

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Some lessons are too valuable to keep to ourselves.

If there’s someone in your life—a child, grandchild, or friend—who’s just beginning to save or invest, consider passing along this episode of Well Balanced. David Moser shares a simple, yet powerful illustration of how compound interest turns small, consistent investments into lasting wealth over time.

Even for those already living off their portfolios, it’s a powerful reminder of why time and consistency matter.

In David’s story, four friends each invest $1,000 per month, earning the same, for illustration purposes, 7% annual return but starting at different ages:

·      At 52, the total grows to about $170,000 after 10 years.

·      At 42, roughly $520,000 after 20 years.

·      At 32, over $1.1 million after 30 years.

·      At 22, about $2.5 million after 40 years.

Each invests the same monthly amount—but the ones who start earlier let time do most of the work.

It’s a great reminder for all investors: compound interest rewards patience, not perfection.

💡 Share this episode with someone who could use a head start—or a fresh perspective—on the power of saving early.

-

Chapters

0:25 Introduction to Compound Interest

1:44 The Scenario

3:02 Comparing Outcomes

4:30 The Hockey Stick Effect

5:21 Key Takeaways and Action Steps

5:56 Regulatory

-

vectorwealth.com/regulatory

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

-

V25300287

If you own property in Minnesota but live elsewhere, you could face estate tax liabilities.

Let’s say you live in Florida but own property in the great state of Minnesota—perhaps a summer cabin or investment real estate—understanding Minnesota’s estate tax laws is crucial for your financial planning.

In this week’s Well Balanced podcast episode, Vector’s Managing Director, Sharon Calhoun discusses estate taxes and what out-of-state property owners need to know.

Minnesota is one of only a dozen states that still impose a state-level estate tax, with an exemption of just $3 million (as of 2025). This is significantly lower than the federal exemption of $13.9 million, meaning many families who wouldn’t owe federal estate tax could still face a substantial Minnesota tax bill. Tax rates range from 13% to 16%, and the state’s overall tax burden is among the highest in the nation.

Even if you’re domiciled in a tax-friendly state like Florida, your Minnesota-based assets may be subject to this tax. The calculation is pro-rated: the tax is first determined as if you were a Minnesota resident, then adjusted based on the proportion of your estate located in Minnesota.

Key considerations include the lack of portability for married couples, the inclusion of certain gifts made within three years of death, and the treatment of property held in entities like LLCs.

Estate planning in this environment is complex, but proactive strategies can help minimize surprises for your heirs. If you think these rules may affect you or your family, please reach out to your Vector Wealth Management advisor for personalized guidance.

-

This material is for informational purposes only and is not intended as, nor should it be relied upon for, tax, legal, or accounting advice. Always consult your own tax, legal, and accounting advisors before making decisions or implementing strategies. Learn more vectorwealth.com/regulatory

-

V25294285

Online Scams: How to Spot and Stop Them Before It’s Too Late

Fraudsters are getting smarter — and more personal. One in three adults will face an online scam attempt this year, and even the most tech-savvy among us can be caught off guard.

In this recent Well Balanced podcast, Chief Compliance Officer Suzy Klapperich and Vector advisor Charlie Gruys discuss the rising threat of online scams, including a real client experience that shows just how convincing these attacks can be.

“My client saw a big red warning on his screen saying his computer was infected,” Charlie explains. “The message told him to call Microsoft immediately — but that number went straight to the scammers.”

These scams are designed to create panic. They mimic trusted companies, use countdown timers, and even include robotic voices warning you not to shut down your computer. In the rush to “fix” the problem, many victims unknowingly give criminals remote access to their devices and financial information.

Prevent and Protect

Suzy and Charlie share a few key steps to prevent — and respond to — fraud attempts:

These scams are designed to trick you into opening the door. By staying alert and knowing scammer’s tactics, you can stop or limit the impact if something does occur.

The Bottom Line

Scams aren’t going away, but with awareness, communication, and the right safeguards, you can manage and limit risk. Remember — if something feels urgent, frightening, or too good to be true, it probably is.

If you’d like to learn more about protecting your financial accounts, reach out to your advisor at Vector Wealth Management. Visit vectorwealth.com/cyber-security for more information.

Chapters:

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

vectorwealth.com/regulatory

-

V25288284

Medicare is an important part of retirement planning, and for many is a topic that can feel overwhelming—especially with significant changes on the horizon. In our latest video, Joe Grochowski, Senior Wealth Advisor at Vector Wealth Management, breaks down what you need to know about Medicare, upcoming changes, and how to prepare.

Understanding Medicare: The Basics

Medicare is the government’s health insurance program for people 65 and older. It’s made up of four main parts:

You’re eligible at age 65, with a seven-month window to sign up (three months before your birthday month, your birthday month, and three months after). Missing this window can result in penalties.

What’s Changing in 2026?

Several important updates are coming, especially for clients in Minnesota:

National Changes:

What Next?

Here are a few key action items to keep in mind:

Stay Proactive

Medicare isn’t a “set it and forget it” program. The rules, costs, and your health needs can all change. Whether you’re preparing for your first enrollment or looking to optimize your current coverage, staying informed and proactive is essential.

Stay well balanced!

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

vectorwealth.com/regulatory

Fall is the perfect time to do a little “financial spring cleaning.” At Vector, we’re committed to helping our clients achieve long-term goals, but there are also some small steps you can take right now to set yourself up for success.

Here are five easy financial tasks you can tackle this fall:

Take five minutes to log into your retirement accounts, life insurance, or old 401(k)s and make sure your beneficiaries are up to date. Life changes—marriages, divorces, new family members—can happen quickly, and keeping your paperwork current can save your loved ones stress down the road.

Just like changing the batteries in your smoke detector, updating your passwords is routine maintenance that protects your most valuable assets. Update weak or duplicate passwords, enable two-factor authentication, and make sure a trusted family member knows how to access your key accounts if needed. Consider using a password manager for extra security.

Take a look at your bank and credit card statements for recurring charges—subscriptions, apps, streaming services—that you no longer use. Canceling these can feel like finding extra cash in your pocket and gives you back control over your finances.

Insurance is easy to set and forget, but it’s important to make sure your coverage still fits your life. Review your home, auto, umbrella, life, and disability policies. Have you added new valuables? Has your liability protection kept pace with your needs? A quick review now can prevent surprises later.

Make sure your wills, trusts, healthcare directives, powers of attorney, and insurance policies are all in one place—whether digital or physical—and that someone you trust knows where to find them. This organization provides clarity for your family during stressful times.

A Little Maintenance Goes a Long Way

None of these tasks should take more than a few minutes, but together they’ll give you a clearer, more confident financial picture heading into the new year.

If you have questions or want help prioritizing areas of your financial life, please reach out to your team at Vector Wealth Management. We’re here to support you every step of the way.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. All investment strategies have the potential for profit or loss. Past performance is not indicative of future performance. Form CRS and other regulatory information is available on our website: vectorwealth.com/regulatory

V25269280

Fall is a natural time to pause, reflect, and make sure your financial plan is aligned. At Vector, we proactively look across our client’s financial picture to identify opportunities that could improve tax efficiency before December 31st.

Five Year-End Tax Planning Strategies

1.    Roth Conversions – Paying some taxes now at current rates may provide more flexibility in retirement.

2.    Tax Loss Harvesting – Using market downturns to offset gains and manage taxes in a disciplined way.

3.    Capturing Capital Gains – Realizing gains strategically to rebalance or step up a cost basis.

4.    Distribution Strategies – Evaluating which accounts to draw from, and when, to balance taxes and portfolio longevity.

5.    Charitable Giving – Making generosity go further with strategies like donating appreciated securities or Donor-Advised Funds.

While not every strategy fits every situation, the right ones can potentially make a meaningful difference. For more context, Vector’s Mike Nesheim dives into these topics in this week’s Well Balanced podcast.

-

vectorwealth.com/start to schedule an intro call.

-

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice. All investment strategies have the potential for profit or loss. Past performance is not indicative of future performance. Form CRS and other regulatory information is available on our website: vectorwealth.com/regulatory

-

V25258275

Why September Stands Out

If you’ve heard of the “September Effect,” you already know the reputation. Over a century of data, every month of the year has averaged a positive return for the S&P 500—except September. Its historical average is a decline of about 0.8%.

At the other end of the spectrum sits July, the strongest month, with an average gain of nearly 2%. In 2025, July (and August) lived up to that record, delivering fresh all-time highs for the index.

Is September doomed to weak performance just because it has followed the good vibes of summer? Let’s dig deeper to understand what is behind these numbers.

Frequency and Outliers

What makes September unusual isn’t just the size of its average decline. It’s also the frequency. About half of all Septembers finish in the red, compared to the typical month, which is positive nearly two-thirds of the time.

But the averages hide the real story. If you look closer, September’s record is heavily influenced by about 10 extreme downturns since the 1920s. These coincided with global events and systemic stress—like the Great Depression, the dot-com collapse, and the 2008 financial crisis.

Remove just 10 outlier Septembers, including three from the Great Depression alone, and the month shifts from negative to positive. That tells us September’s reputation comes less from built-in seasonal weakness and more from a handful of extraordinary moments in market history.

Context for Today

Fast forward to today: we don’t see the same structural cracks that defined those historically bad Septembers. Surprises are always possible—markets have a way of delivering the unexpected—but current conditions look very different from the environments that produced those extreme outliers.

It’s also important to note the setup. After a strong 2025 summer run, with the S&P 500 posting multiple new highs, some cooling off is normal.

What Investors Can Do

At Vector, we emphasize a disciplined approach to rebalancing. After strong gains, rebalancing means trimming back what has grown ahead of expectations and reallocating towards other areas . This helps manage concentration risk and turns volatility into an opportunity.

So, is September truly cursed? Unlikely. More than anything, it reminds us that markets don’t move in straight lines—and even one of the world’s most consistent wealth-building engines has its off months.

The long-term trend remains clear: growth outweighs the setbacks. A diversified plan, paired with conditions-based rebalancing, provides the steady foundation investors need—through Septembers, through Octobers, and well beyond.

--

Contact us: vectorwealth.com/contact or schedule an intro call: https://www.vectorwealth.com/start

-

Disclosures and Regulatory

vectorwealth.com/regulatory

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.

In moments when you need short-term liquidity—whether for a home down payment, a business opportunity, or bridging a timing gap—your portfolio can offer more flexibility than you might think.

In our latest podcast, Wealth Advisor David Moser explores three strategic solutions available to Vector clients through their Schwab accounts. We talk though how each solution can provide access to funds based on your existing portfolio value.

Overview

60-Day IRA Rollover

Withdraw from your IRA without tax or penalty—as long as the funds are returned within 60 days. This can be a smart strategy for short-term cash needs, such as bridging a home sale. Keep in mind, this strategy requires selling investments, which means sitting out of market participation during the rollover period.

Margin Loan

Borrow against your brokerage account—no credit check or approval required. Your investments remain intact, and you avoid triggering potential capital gains. This option offers quick, flexible liquidity and, as a Vector client, you benefit from reduced negotiated interest rates through Schwab.

Pledged Asset Line (PAL)

A more structured loan against your brokerage account, typically suited for larger borrowing needs (minimum $100K). While it requires an application and setup process, it offers potentially higher borrowing limits—often around 60–70% of your portfolio’s value—compared to a margin loan.

Each of these tools are generally available for investors with financial assets held at a custodian like Schwab—and each comes with its own pros and cons depending on your goals, account type, and timeline.

Our role at Vector is to help you consider solutions that fits your financial plan best. If you’d like to learn more or explore which lending strategy may be right for you, we’re here to help.

-

Contact us: vectorwealth.com/contact or schedule an intro call: https://www.vectorwealth.com/start

-

Disclosures and Regulatory

vectorwealth.com/regulatory

-

All content discussed in our podcasts, videos, or related blog articles are for informational purposes and should not be construed as individualized financial advice.

Opinions expressed herein are solely those of Vector Wealth Management, our staff, and guests. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed directly and in detail with your financial advisor prior to implementation of a strategy or investment. This podcast and related content are not intended to render personalized investment advice, nor should it be viewed as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities or strategies discussed.

Please note that neither Vector Wealth Management nor any of its agents give legal or tax advice. The firm is not engaged in the practice of law or accounting. Charts, graphs, and returns do not represent the performance of Vector Wealth Management or any of its advisory clients. Returns presented do not reflect the impact that advisory fees and other expenses would on the results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment, asset category, or strategy will be suitable or profitable for a client’s portfolio.