We recently completed our semi-annual rebalancing process. Overall, we continue to favor high quality, strong balance sheet companies and our portfolios reflect that sentiment. We are willing to forego occasional short-term speculative gain for long-term sustainable performance.

What’s New/Updated in Our Portfolios:

Increased Small Cap holding

• We added to an actively managed small cap fund in all portfolios.
• Why? Smaller cap companies offer a compelling combination of growth potential and attractive valuations, particularly relative to their larger peers. This potential for growth in this sector is supported by prospects of steady to declining interest rates.

Increased Global Value holding.

• We added to our global value-oriented stock fund which focuses on well-established multinational companies with durable competitive advantages.
• Why? With over 1/3 of the world’s largest and most profitable companies domiciled outside the US, it makes sense to participate and diversify in the international space. We take a low correlation to the broader market approach here with a focus on strong balance sheets, high margins, and contractually obligated revenues.

Reduced Large-Cap Allocation, specifically largest growth stocks.

• We exchanged portions of our large cap growth allocation for opportunistic high-quality funds.
• Why? We believe that AI speculation has pushed many of the large tech companies into extremely high valuations. We also believe there are many excellent opportunities beyond the largest tech names and that this approach can lower risk while remaining opportunistic. 

Our Investment Management Process

We follow a disciplined and diversified asset allocation process to build our portfolios. We believe in long-term investing, not short-term speculation. We lean on our Commonwealth Research team of 25+ professionals for ongoing asset allocation and fund screening. Commonwealth offers no proprietary products, which enables us to make objective decisions. Then we use a secondary screening through Morningstar (a third party investment research company) for another layer of due diligence.

Philosophy Remains Consistent

These latest changes reflect our commitment to thoughtful diversification and positioning portfolios for long-term success.

As always, thank you for your trust. If you have questions about these updates or your specific portfolio, don’t hesitate to reach out.

Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved. Securities and Advisory services offered through Commonwealth, a registered investment advisor. Member FINRA & SIPC.

Tax Document Reminders

When to Expect Your Tax Documents

Our custodian, National Financial Services, posts and mails 1099 forms in four waves, running from January 16 through March 15. Timing depends on the type of accounts and the investments held.

Where to Find Your Documents

For accounts we manage, tax documents are typically available electronically through www.investor360.com as soon as they’re released:

• If you are enrolled in e-notification, you will receive an email when your tax forms are ready to view online.
• If you are not enrolled in e-notification, your forms will be mailed within five business days of their online posting.

Here’s a short, helpful video with step-by-step instructions on accessing your documents.

A Few Reminders

• It’s normal for 1099s to be corrected or delayed if funds issue late tax information.
• If you receive a document titled “Preliminary 1099,” it’s best to wait until the final version. If you work with a CPA, they may request that you wait until all forms are finalized.

We’re Here to Help

If you’re unsure whether you’ve received everything you need—or if you have questions about a specific form—don’t hesitate to reach out. We’re happy to help you track things down or coordinate with your tax professional.

As always, thank you for trusting us with your planning.

Beware of Tax Scammers

What’s happening: Phone scams claiming you owe back taxes are on the rise.

Here’s why: The IRS began accepting tax returns on January 26. That spurred con artists to prey on taxpayers, impersonating IRS agents or reps of a “resolution oversight company” or “tax mediation and resolution agency.” Their goal: to steal personal information, like Social Security numbers, or charge bogus tax debt relief fees, according to the Federal Trade Commission.



What it means for you: The IRS will always reach out by mail first, so tax-related calls, text messages, and emails are likely phony. Do not answer, call back, respond, or reply to any phone, email, or texts received that portray to be IRS or tax related AND never provide anyone you don’t know personally with any personal or financial information that is requested.

As always, please do not hesitate to reach out if you have any questions.

Sincerely,

Matt Gazaway, CFP®  |   Greg Dillard, CFP®

(913) 276-7110

matt@bridgequest.com | greg@bridgequest.com

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Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.

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