Dyer & Co Newsletter - February 2025

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Money & Relationships: What Really Works

After years of helping couples navigate their finances together, I've noticed some clear patterns in what works and what doesn't. While every relationship is unique, there are some fundamental principles that consistently help couples build financial harmony. Here's what I've learned from watching successful couples work together.

I Bonds: Time for a Breakup?

If you purchased I Bonds during the high-inflation period of 2022 when they were paying 9.6%, you're now earning just 1.9%. Meanwhile, new I Bonds offer 3.11% with a fixed rate of 1.2%. Even with the three-month interest penalty for early redemption, trading in your old I Bonds for new ones could pay off within seven months. Think of it as a financial fresh start - sometimes knowing when to make a change is the key to better returns.

Tax Season: Behind the Numbers

Did you know the IRS processes more than 240 million tax returns each year? That's roughly 3,000 returns every minute during tax season. The evolution of tax filing tells an interesting story: when the 1040 form was first introduced in 1913, it was just three pages long, including instructions. Today's basic instructions run over 100 pages!

Some lesser-known tax facts that might surprise you:



• Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming have never had a state income tax. New Hampshire doesn't tax earned wages, only investment income and dividends.
• The term "tax return" originated in medieval England when local sheriffs had to "return" (submit) their tax collections to the Exchequer.
• In 2024, about 94% of individual tax returns were filed electronically - we've certainly come a long way from paper forms and number 2 pencils.

Market Update: February Snapshot

Economic uncertainty around tariffs and layoffs has made for a volatile month in the stock market. The S&P 500 is down about 2.6% as February draws to a close, erasing January’s modest gain and leaving the index roughly flat for the year.

February’s economic signals have been mixed. Manufacturing data varies by region, and housing starts dropped 10% in January. Meanwhile, consumer spending remains the key driver of economic growth, but Walmart’s cautious outlook suggests that could be shifting.

Speaking of consumer trends, let's talk eggs. Bird flu outbreaks have driven egg prices to an all-time high of $4.95 per dozen nationwide, with some retailers charging up to $10. Even Waffle House has added egg surcharges. The good news? Milk prices remain steady thanks to federal price controls—though dairy farmers might not see that as a win. As always, please reach out if you have concerns about your specific allocation or circumstances.

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Planning Ahead to Ease Heartache

Reluctantly I will concede that chocolates and flowers are much more romantic, but one of the most caring things you can do for your loved ones is premortem planning. It's not sexy, but it's essential. Take time to review beneficiary designations, ensure your important documents are accessible, and create or update your "In Case of Emergency" file. Be sure it includes a section to handle your digital life. Remember, true love means making sure your loved ones aren't left scrambling to figure out your financial life if something happens to you.

We hope you enjoyed the February edition of the Dyer & Co. newsletter! As always, we're here to support your journey towards financial wellness and achieving your goals. Don't hesitate to reach out with any questions or concerns.

Thank you for reading. If you liked this content, please share with a friend. You can always reach us by replying to this email or at 704-323-6872.