Transitioning into adulthood

The financial and emotional investments parents make.

Think about how different growing up is now compared to 30 years ago. Back then, there was a clearer, more linear path to adulthood: finishing school, starting a job, getting married and having children. Society had specific expectations of when these milestones should happen. With such structured societal norms, parents felt pressured, and any deviation from this path often lead to worry and disappointment.

Today, parents feel just as much pride and hope as they watch their children transition into adulthood, but the path to what society calls “success” is, perhaps, more winding than before. Drawing from a recent survey by the Pew Research Center, new data provides insights into how adulthood has evolved and how these changes are shaping the lives of young adults today.

Parenting past and present
Many parents believe their children’s successes and failures reflect their own parenting, with 71% holding this view. In the last 30 years, young adults have been less financially independent, so parents are more involved in their lives, reflecting societal changes and evolving family dynamics.

Traditionally, it was expected that young adults would become financially independent not too long after earning their degree — finding a full-time job, leaving the nest and supporting themselves without parental help. That expectation isn't reflected today, with many young adults relying on their parents for financial support well into their mid-thirties. Household expenses and cellphone or streaming bills are the top two areas where parents provide financial assistance.

It’s not that parents haven’t provided their children with a roadmap to independence. The survey indicates that 66% of young adults say their parents prepared them either a great deal or a fair amount to be independent adults. This varies by income with a large majority of upper-income (85%) and middle-income (73%) young adults feeling well prepared.

Why, then, is financial dependency so common? It’s no longer the ‘90s, and young adults trying to establish themselves face a very different playing field. Young adults today aren’t encountering the same economic and social landscape their parents did. While more young adults have full-time jobs and higher wages than those in the early 1990’s, they face higher living costs. Housing, healthcare and education prices have increased significantly. Rising education costs are a large reason why their debt has soared, and young adults today are more likely to be college graduates. Additionally, delayed marriage and parenthood have risen sharply among 25- to 29-year-olds, with only 29% married in 2023 compared to 50% in 1993. Pushing out these transitional events often means that young adults are spending more time on education and career development, resulting in more student debt and prolonged financial dependence.

Economic challenges and delayed milestones are factors that contribute to why many parents continue to support their adult children financially. This has also led to a cultural shift toward this dependance becoming more socially acceptable, with many parents feeling the responsibility to help their children succeed.

Emotional reliance
Not only are parents financially invested in their children's futures, but there’s also a deep emotional connection. They view themselves as ongoing supporters rather than stepping back once they reach adulthood.

The strength of the parent-child relationship plays a crucial role in emotional reliance. Parents who rate their relationship as excellent or very good are much more likely to say their child depends on them for emotional support.

Age also plays a factor; parents of younger adults (ages 18-24) are more likely to feel this emotional reliance than those with children in their early 30s. When it comes to mothers, particularly those with daughters, emotional reliance is more pronounced, with 52% of moms reporting a high level of emotional dependence. And these emotional bonds often remain strong well into adulthood.

According to the survey, 73% of parents text and 54% talk on the phone with their children a few times a week. Surprisingly, many young adults are accepting of that, with 7 in 10 saying their parents are as involved in their daily lives as they’d like them to be.

Thirty years ago, young adults did seek their parents' advice, but generally less often than they do today. A little more than half rarely or never asked for their parents' guidance. However, with closer emotional relationships now, the tides have shifted, making young adults more comfortable with seeking advice on topics from finances and jobs to health and dating.

Positive outlook
These days, young adults are more likely to be living with their parents, but that doesn’t mean they’re not pitching in financially. In fact, 72% help with household expenses like groceries, utilities, the rent or mortgage. And among young adults that aren't fully financially independent yet, three-quarters are confident they'll get there eventually. Parents are optimistic too, with 72% believing their child is extremely or very likely to become financially independent in the future.

Is the path to adulthood straightforward? No, but the bond between parent and child has become stronger as young adults face unique circumstances unlike those of their parents' youth. This makes the journey a bit easier, knowing that parents are supportive of their path to independence, whether through financial assistance or emotional support.

Source: Pew Research Center

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

New tax law makes 2025 a strategic year for giving

Highlighting key provisions for itemizers, non-itemizers and corporations.

At nearly 900 pages, US legislation known as the One Big Beautiful Bill Act introduced numerous tax law provisions. With so much to decipher, it would be understandable if you skipped over the changes related to charitable giving since they don’t go into effect until 2026.

The coming changes, however, have strategic implications for 2025.

Notably, you may want to maximize the deduction benefits of current tax law ahead of new floors and caps that will be introduced for itemizers in 2026. Non-itemizers may want to do the same, if possible, though for some it could be more strategic to let the calendar flip.

Considerations:

• Accelerating plans for giving to 2025
• Bunching multiple years of giving into a single year
• Using a donor advised fund for increased flexibility
• Deferring qualified cash donations to 2026 (for non-itemizers)

Key provisions for itemizers

Beginning in 2026, itemized charitable deductions will apply only to contributions that exceed 0.5% of your adjusted gross income (AGI). For example, if your AGI is $350,000, only donations above $1,750 will be deductible. For high earners, charitable deductions will be capped at 35% of the donation amount, down from the current top marginal rate of 37%.
The tax law that remains in effect for 2025 has no AGI-related floor and maintains the slightly higher allowance for the 37% marginal tax rate.
This is where itemizers may want to consider accelerating their planned giving in 2025 or utilizing a donor advised fund (DAF), which is a charitable investment account that allows for a same-year tax deduction for contributions of cash, stocks or other assets while allowing you to recommend grants to charities over time. Once funds are in a DAF, they cannot be withdrawn for other purposes, but for those committed to giving, a DAF offers strategic flexibility.
A DAF accommodates what is referred to as a bunching strategy, which combines the donations of two or more years into a single year. The tax benefit comes in the year the lump sum contribution is made into the DAF. And with the flexibility of a DAF, gifts or donations can be made to eligible charities into the future on a cadence of your choosing.
Also, assets in a DAF can be invested, potentially increasing the value and, therefore, power of your original contribution.

Key provisions for non-itemizers

The new law will reintroduce and increase an above-the-line deduction for qualified charitable contributions, making a deduction available to taxpayers who do not itemize. Starting in 2026, individuals can deduct up to $1,000, and joint filers can deduct $2,000. Once it takes effect, this provision does not expire.
Donations made in 2025, however, remain subject to existing tax law and cannot be deducted by non-itemizers.
It’s worth noting that even once the new deduction goes into effect, gifts to DAFs and private foundations will not be eligible for deductions by non-itemizers. So, for a non- itemizer who plans to open or contribute to a DAF or a private non-operating foundation in 2026 and beyond, it could be strategic to accelerate your giving to 2025 if the total of your eligible deductions would enable you to itemize on your 2025 tax return.
If your total deductions remain below the itemizing threshold for 2025, and you are not contributing to a DAF or private foundation, a donation made on December 31, 2025, would not be deductible. A donation made on January 1, 2026, would potentially qualify for the above-the-line deduction.

Key provisions for corporations

Starting in 2026, corporate entities will be able to deduct only charitable contributions that exceed 1% of taxable income, though an overall cap of 10% remains.
Similar to the new provisions for individuals who itemize, businesses that give back to their communities through donations or would like to implement a planned giving strategy may want to accelerate their giving to 2025 or consider using a DAF to maximize tax efficiency and giving power.
For example, if a company typically donates 3% of its taxable income each year, the first 1% of that donation will no longer be deductible starting in 2026. Bunching two or even three years’ worth of donations into a single year would allow the business to deduct all but 1% of the total donation.

A single-year donation just below the 10% cap could prove to be most tax efficient in the long term. Making grants from the DAF to a company’s chosen causes can be done into the future, either on a planned cadence or as need arises.

What about donations from IRAs?

The new law does not alter the rules for qualified charitable distributions from IRAs. In 2025, if you are 70 1/2 or older, you can donate up to $108,000 annually directly from your IRA to a qualified charity without it counting as taxable income.
With so much to consider, a team of experienced professionals can help you maximize your gifting power and your tax efficiency in 2025 and beyond.

Changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors we are not qualified to render advice on tax or legal matters. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax purposes.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Chicken Cacciatore

1.5 kg (3.5 lbs) whole chicken with skin (you can also buy chicken pieces, bone in, skin on)
250 gr (8.8 oz) pitted green olives
2 medium-sized red onions
180 gr (6.3 oz) salted capers
½ cup of table white wine
3 rosemary sprigs
EVOO
Mediterranean Sea Salt
Ground black pepper

Finely chopped onions, capers and olives.

Directions

If using a whole chicken, cut into thighs, legs and breasts.

Heat a large sauté pan. Brown the chicken, and as soon as a golden patina is reached on both sides, add EVOO, finely chopped onions, capers, olives and rosemary sprigs. Stir it. Pour in the white wine and let it blend into the sauce. Once the alcoholic part has been reduced, season with salt and ground black pepper, stir and then cook over medium heat for about 15 minutes.

source: https://www.lacucinasabina.com/recipe/chicken-cacciatore/

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

It’s spooky season, but what if the scariest thing isn’t ghosts or ghouls, but your investment performance? A dip in the market can feel downright haunting and can raise some horrible specters, such as "What if I lose everything?" and "What if I should have made different investment choices?" Is it time to get out?

Everyone sometimes gets nervous about their portfolio, but reacting in fear is not the way forward. Let's see if we can chase off that spooky shadow.

Feel the Fear, Master the Response

It's called a stock market panic for a reason. When many people get spooked and sell, the markets can tumble. Panicking during a short-term dip isn’t a smart long-term plan, especially as the dip deepens.

In fact, selling as stocks tumble can be far worse for your financial future than staying the course. Even a dip of a few months doesn't determine your success for longer-term investment performance. What is more important is that your investments remain aligned with your goals, risk tolerance, and time horizon. You might not think you are on track, but you are.

History Offers Some Perspective

Basic fact: The market has always rebounded. Even from the worst dips. Even the Great Depression didn't last forever. Past performance doesn’t guarantee future results, but history shows that staying invested, no matter how challenging, has typically rewarded investors more than jumping ship (and the water can be cold).

Remember 2008? That was a bad dip, and a lot of people got out. Many people suffered real hardship, too, but those who stuck with it through the downturn and beyond saw the market recover and were able to not just recoup their losses but thrive.

Of course, a dip might be a good time to adjust some investments, but it's generally not the right time to flee.

How to Face the Monster Calmly

Emotions are tricky, though. If you see your retirement portfolio act like a downhill skier, you might even feel the spooky shadow of "What if I can't retire?" Dealing with those emotions can be a challenge.

But instead of pulling your money, this is a good time to review your plan:

1. Check your long-term goals. Has anything changed in your life? If you have had a drop in income, then it might be time to review a few things. Otherwise, though, just audit your life and lifestyle and any immediate plans.
2. Assess your risk tolerance. Your peace of mind does matter. Is your portfolio aligned with your comfort level for market volatility? Are you discovering your tolerance may be lower (or higher) than you thought?
3. Speak with your advisor. This is what financial advisors are for. Because we aren't emotionally invested, we can help you go over your portfolio and talk you out of emotional decisions that will only cause you and your family harm.

You Don't Have to Face the Fear Alone

At CrossleyShear Wealth Management, we are here to help you meet your financial goals. If the “What if Monster” is under your bed or peering through the windows, we can help you deal with it and keep focused. It's not just our job to help you succeed but also to help you stay the course and reason, not emotionally. We can calm the "What if Monster" for you.

So, if you're starting to feel a bit uneasy about your investment performance right now, remember that you aren't alone, and talk to us. Let us help you review and adjust your strategy and make those calm decisions that keep fear from driving your future.

Contact us at any time to help chase the monsters away. Or schedule your annual review today. We really can help and are dedicated to your financial goals.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.