Offering a 401(k) plan is a powerful way to help your employees save for retirement, but the plan’s true value is only realized when employees actively participate and regularly contribute. Employee engagement in your 401(k) plan can lead to stronger financial security for your workforce and a healthier benefits program overall.

If you’re looking to increase participation and get your employees more involved in their retirement savings, here are five practical tips that can energize engagement and make your 401(k) plan work harder for everyone.

1. Communicate Clearly and Often

Effective communication is a key component of the foundation of employee engagement. Use simple, jargon-free language to explain the benefits of the 401(k) plan and important deadlines. Regular updates via email, newsletters, and education meetings keep the plan top of mind and reduce confusion.

2. Leverage Automatic Enrollment and Contribution Escalation Options

Automatic enrollment helps increase participation by signing up eligible employees by default, while automatic escalation gradually raises their contribution rates over time. Together, these features encourage consistent saving without requiring employees to take action and potentially greatly improving engagement.

3. Provide Targeted Education

Employees can have very different levels of financial knowledge. Work with your plan advisor to offer tailored education sessions, whether beginner workshops or advanced webinars so everyone can better understand their options and make more confident decisions about their retirement savings.

4. Utilize Digital Tools and Resources

Many 401(k) providers offer online portals, mobile apps, calculators, and interactive planning tools. Ensuring that employees are aware of these resources can help them track their progress and adjust their contributions easily.

5. Highlight the Employer Match

If your plan includes an employer match, make sure employees fully understand its value. Emphasize that the match is essentially “free money” that can significantly boost their savings over time. Clear communication about the match can motivate higher participation and contribution rates.

Final Thoughts

Employee engagement can be key to unlocking the full potential of your 401(k) plan. At Confluence Retirement Plan Services, we prioritize education and ongoing communication to help employees understand and maximize their retirement benefits. Our dedicated team works closely with plan sponsors to implement strategies that drive participation, boost savings, and create a retirement plan experience that truly supports your workforce.

If you’re interested in learning more about how Confluence can help you energize employee engagement in your 401(k) plan, we’re here to help.

Compounding is often viewed through the financial lens, but its magic can extend far beyond money and can be instrumental in shaping a richer life.  In this reflection, we will explore two powerful forms of compounding that intersect in remarkable ways.

1. The Financial and Mathematical Power of Compounding
2. The Human Potential Behind Goals, Growth, and Purpose

Compounding Wealth

First, financial compounding is the amazing ability to make money with money over time.  Albert Einstein famously said that “compounding interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it”. 

The beauty lies in the math of compounding: 

1 → 2 → 4 → 8 → 16 → 32

Said differently in financial terms:

$100,000 → $200,000 → $400,000 → $800,000 → $1,600,000 → $3,200,000

This illustration shows us the importance of getting the process started as soon as possible.  That is why time is arguably the most important variable in the compounding equation. 

The Rule of 72 is a simple way to figure out how long it would take to double your money at a specific rate of return.  If your money is earning 7%, dividing 72 by 7% shows your money will double roughly every 10.3 years.  At 9%, $1,600,000 will double in 8 years to $3,200,000. 

Fundamentally, compounding relies on rate of return, time, discipline, risk/reward, and strategic asset allocation.  But the real ‘secret sauce’ is truly your savings rate.  You must save consistently to unlock compounding’s full potential.  For instance: setting up systematic monthly contributions to your 401(k), brokerage account, Roth IRA, 529 plan; and letting the process do the heavy lifting.

Financial freedom doesn’t come from what you earn – it comes from what you save and own.

Compounding Life: Growing Joy, Purpose, and Momentum

Wealth is not the only thing that compounds.  In fact, the most meaningful kind of compounding happens when you apply the same principles to your life. 

What are you really saving for? 

What matters most to you?

What is your why? 

Just as money compounds, so do tiny efforts in the areas that can help maximize life:  

• Learning something new (e.g., language, sport, hobby)
• Building strong relationships (family/friends/colleagues)
• Prioritizing health and mindset
• Creating memorable experiences
• Growing a business or team
• Surrounding yourself with positive growth-minded people
• Volunteering, mentoring, or giving back to others in your community

Small daily actions like reading ten pages of a book in an evening, having one thoughtful conversation, taking a walk around the neighborhood with your significant other – they may seem insignificant in the moment, but over time these tiny wins snowball into momentum, resilience, and joy.

Imagine planting a single acorn as your first “learning seed”.  You water it daily by practicing that new skill or reading/asking questions or simply staying curious.  At first, there is no sign of progress.  But then, a shoot appears.  A few leaves and a tiny tree.

Decades later, that acorn becomes a mighty oak – a living testament to your consistency and care.  The leaves?  They’re the skills you’ve learned, the insights you’ve gained, the confidence you’ve earned. 

The Parallel Truth

Compounding in finance teaches us that lasting wealth is built quietly over time and not through quick wins.  The same is true in life. Whether in dollars or days, the power of compounding rewards those who begin early, act consistently, and stay the course. 

Whether you are saving for retirement or learning to play the piano, the formula is similar:

Start now.  Have a plan. Stay consistent.  Be patient.  Water the seed!

Do you have a plan for maximizing your life?  Act now.   

Sources: The Psychology of Money (Morgan Housel), Rethinking Investing (Charles D. Ellis), Simple Wealth, Inevitable Wealth (Nick Murray), Mindset (Carol S. Dweck).

For charitably inclined individuals, giving isn’t just about generosity—it’s also about strategy. With careful planning, your philanthropic efforts can go further, both in terms of impact and tax efficiency. Two tools often underutilized are IRA Qualified Charitable Distributions (QCDs) and Donor-Advised Funds (DAFs). When used together or independently, they offer powerful ways to amplify the tax benefits of charitable donations.

What is an IRA Qualified Charitable Distribution?

An IRA Qualified Charitable Distribution allows individuals aged 70½ or older to donate up to $108,000 annually from their traditional IRA directly to a qualified charity—tax-free. The limit is indexed for inflation and can change each year; for 2025, the maximum is $108,000. This strategy is especially valuable for those subject to Required Minimum Distributions (RMDs) who do not require the funds to sustain their retirement lifestyle.

Benefits of IRA QCDs:

• The distribution counts toward your RMD but is excluded from taxable income, lowering your adjusted gross income (AGI).
• Reducing your AGI may have a positive ripple effect on Medicare premiums and Social Security taxation.
• It’s a direct and efficient way to support the causes you care about without itemizing deductions.

What are Donor-Advised Funds?

A Donor-Advised Fund (DAF) is a charitable investment account, managed by a sponsoring organization, that allows you to make contributions, receive an immediate tax deduction, and route grants to your favorite charities over time.

Key advantages:

• Immediate deduction: You can contribute in a high-income year for maximum tax relief, then distribute the funds gradually.
• Donation of Appreciated Shares: Donating appreciated securities (such as stocks) directly to charity allows you to avoid paying capital gains tax while still receiving a charitable deduction for the fair market value of the asset.
• Investment growth: Contributions can be invested and grow tax-free, increasing your potential for long-term giving.
• Flexibility: You choose when and where the grants go, without the administrative burden of managing a private foundation.
• Privacy: DAFs allow for anonymous giving if desired.

The Strategic Power of Combining Both

While you can’t use QCDs to fund a Donor-Advised Fund directly (per IRS rules), you can use these tools in tandem to optimize both your current and future giving:

• Use QCDs to satisfy RMDs and support charities directly in the near term, reducing taxable income.
• Use DAFs for planning larger or future gifts, especially during high-income years, to maximize itemized deductions.

This dual approach can give you the freedom to strategically time your donations for both personal tax advantages and philanthropic impact.

How a Wealth Management Firm Can Help

Understanding how to structure your giving—especially across multiple vehicles like IRAs and Donor-Advised Funds—requires personalized insight.

Confluence Financial Partners can help clients:

• Evaluate the tax benefits of charitable donations in the context of their broader financial plan
• Strategically time and structure gifts for maximum impact
• Set up and manage Donor-Advised Funds
• Coordinate with tax and legal professionals to ensure compliance and efficiency

Our approach is tailored to your unique financial goals, values, and legacy aspirations. Whether you’re new to charitable giving or looking to enhance your current strategy, we’re here to help your generosity flow with intention and intelligence.

Let’s Talk About Your Giving Strategy

If you are curious how to integrate IRA distributions and donor advised funds into your financial plan, Confluence Financial Partners can help you explore how your generosity can go further—with clarity, purpose, and confidence.

Imagine this:

The Smith family gathers around their living room—three generations in one space, from a retired patriarch to young adults just entering the workforce. They aren’t here for a holiday or a celebration. Instead, they’ve come together for something just as meaningful: a family meeting.

On the agenda? The family’s shared values, long-term financial goals, philanthropic interests, and how their wealth can serve future generations—purposefully.

This isn’t a one-time conversation. It’s a recurring practice that’s become a pillar of the Smiths’ legacy—and a powerful example of how family meetings can turn wealth building into a shared vision across generations.

Why Family Meetings Matter

We often think of generational wealth in terms of dollars passed down—but the true strength of a legacy lies in clarity, communication, and shared purpose. That’s where family meetings come in.

These gatherings create space for:

• Open dialogue about wealth, values, and vision
• Education for younger generations around financial literacy and responsibility
• Alignment around philanthropic goals or business succession plans
• Assistance in Preventing misunderstandings or disputes down the line

When done right, they can reduce uncertainty and build trust—two essentials for sustaining generational wealth.

The Role of Family Meetings in Wealth Building

Wealth building isn’t just about smart investments or tax-efficient strategies. It’s also about intentional planning that spans decades and generations. Family meetings support this by:

• Clarifying goals: What does the family want their wealth to accomplish—in their lifetimes and beyond?
• Preparing heirs: Future generations are more likely to steward wealth responsibly when they understand its origins and intentions.
• Fostering unity: Shared decision-making can reduce the risk of family conflict and builds a stronger foundation.

When families come together regularly to revisit these topics, they can be more resilient in times of change and more proactive about their financial future.

Why You Don’t Have to Do It Alone

Leading a family meeting—especially one about money—can feel intimidating. A trusted wealth management partner can make all the difference.

At Confluence, we can help guide family meetings with:

• Facilitation and structure that keeps conversations productive and inclusive
• Customized agendas aligned with your family’s goals, values, and unique dynamics
• Financial insights to inform key decisions about estate planning, charitable giving, and more

We serve as a neutral voice, helping to create an environment where every generation feels heard, and every goal is clear.

Start the Conversation That Builds Your Legacy

Whether you’re navigating a business transition, planning your estate, or simply want to pass down values alongside wealth, family meetings are a powerful tool. When approached with intention and guided expertise, they can become more than a discussion—they become a defining part of your family’s story.

Retirement planning is one of the most important financial steps you can take to help create a comfortable and secure future. Typically, the earlier you start, the better positioned you’ll be to achieve your financial goals. Whether you’re just beginning your career or are approaching retirement, having a structured plan is essential. In this blog, we’ll explore key tips for effective retirement planning, review the various savings vehicles available, and discuss how a wealth management firm like Confluence Financial Partners can help you stay on track. 

Start Retirement Planning Early 

We believe one of the best things you can do for your future self is to start retirement planning as soon as possible. The power of compound interest can allow your savings to grow exponentially over time, meaning the earlier you begin, the less you need to contribute later. Even if retirement feels far off, taking small, consistent steps today can make a significant impact. 

For example, Mia saves $200 per month for 40 years, while Jennifer waits 10 years to start but doubles her contribution to $400 per month for 30 years. Despite contributing twice as much, with a 6% return, Jennifer would have $827,062, whereas Mia, also with a 6% return would have $987,428. By waiting just 10 years to start, even twice the monthly contribution is not enough to catchup. This demonstrates the power of compound interest—starting earlier, even with smaller contributions, can yield greater long-term benefits than larger contributions made later. 

For many parents, the desire to fund their child’s education is strong. Striking the right balance between saving for college and ensuring a secure retirement, however, requires careful financial planning. With the right strategies, families can make progress towards both priorities without unnecessary financial strain. 

Why Parents Should Consider Not Sacrificing Retirement for Tuition 

It’s natural to want to provide the best opportunities for your children, but delaying or reducing retirement savings to pay for college could have long-term consequences. Unlike college tuition, which offers various funding options like student loans and scholarships, there are no loans for retirement. Prioritizing your future financial security can help ensure that you won’t become a financial burden on your children later in life. 

Additionally, withdrawing from retirement accounts early or reducing contributions could mean missing out on years of compound interest, potentially making it harder to reach retirement goals. Instead, parents should aim for a balanced approach that considers both short-term education costs and long-term financial stability. 

Strategies for Funding Both Without Financial Strain 

Achieving a balance between paying for college and securing retirement requires a well-thought-out plan. Here are some key strategies to consider: 

1. Maximize Tax-Advantaged Savings Accounts 

Using tax-advantaged savings vehicles can help optimize both education and retirement savings: 

• 529 Accounts: A 529 account allows parents to save for college while benefiting from tax-free withdrawals for qualified expenses. Some states also offer tax deductions for contributions. 
• Coverdell Education Savings Accounts (ESAs): These accounts offer tax-free growth for education expenses, though they have lower contribution limits than 529 accounts. 
• Retirement Accounts (401(k), IRA, Roth IRA): Contributing to retirement accounts should remain a priority. Some retirement accounts allow penalty-free withdrawals for education expenses, but typically this should only be a last resort. 

2. Encourage Student Contributions 

Students can play an active role in funding their education. Encourage them to apply for scholarships, consider work-study programs, or take on part-time jobs to reduce the financial burden. Student loans are another option, and with strategic borrowing, they can help bridge the gap without overburdening the family. 

3. Set a Realistic Budget and Explore Cost-Effective Education Options 

Not all colleges come with a hefty price tag. Families could explore in-state public universities, community colleges, or schools that may offer generous financial aid packages. Creating a clear college budget can help costs remain manageable without derailing retirement plans. 

4. Work with Confluence Financial Partners to Optimize Your Financial Plan 

At Confluence Financial Partners, we can help families develop a comprehensive plan that balances saving for college and retirement. Our wealth managers can provide strategies for: 

• Allocating investments to optimize tax advantages 
• Adjusting financial priorities based on income and expenses 
• Identifying the best ways to use student loans strategically 
• Exploring alternative funding sources, such as employer tuition assistance programs 

We take a personalized approach, helping you create a strategy that best aligns with your unique financial goals while helping create long-term stability for both education and retirement. 

Final Thoughts 

Balancing college costs and retirement savings doesn’t have to be an either-or decision. By utilizing smart financial strategies, leveraging tax-advantaged savings vehicles like 529 accounts, and working with a financial planner like Confluence Financial Partners, families can simultaneously plan for their children’s education and their own retirement. It is key to start early, plan strategically, and make informed financial decisions that support long-term financial health. 

If you’re ready to create a customized plan that considers both your retirement and your child’s education, contact Confluence Financial Partners today. 

The first quarter of 2025 has been a period of dynamic shifts in global financial markets, marked by evolving economic policies, heightened uncertainty, and increased volatility equity markets. In this edition of Market Pulse, we analyze key investment trends, including the broad rotation from growth to value stocks, the resurgence of international equities, and the stabilizing role of fixed income markets.

Despite market volatility, history reminds us that corrections are a natural and expected part of long-term investing. The recent pullback in the S&P 500, while significant, aligns with historical trends, reinforcing the importance of diversification and disciplined investment strategies. International markets, buoyed by fiscal stimulus measures, have provided investors with new opportunities, while fixed income markets have continued their recovery.

Looking ahead to the second quarter, trade and fiscal policy developments will remain critical factors shaping investor sentiment. By maintaining a strategic and diversified approach focused on their objectives, investors can navigate uncertainty and capitalize on emerging opportunities. On behalf of Confluence Financial Partners, we thank you for your continued trust and confidence.

Bill Winkeler, CFA, CFP®
Chief Investment Officer

For many business owners, their company represents more than just a source of income—it is a legacy built through years of dedication and perseverance. Ensuring the continuity of that legacy requires careful, strategic planning. Business succession planning is the structured process of transitioning ownership and leadership, helping to secure long-term stability and success for future generations.

However, succession planning is not merely about selecting a successor. It involves developing a comprehensive strategy that mitigates risks, maximizes business value, and lays out a seamless transition path. Without a well-defined plan, companies may face uncertainty, internal conflict, or disruptions that could negatively impact operations. A thoughtfully executed succession plan can help business owners to retire with confidence, knowing their company is in capable hands.

Establishing a Business with Long-Term Vision

One of the most important decisions a business owner can make is whether they are building their company for longevity or positioning it for sale. This fundamental choice can influence leadership development, financial planning, and operational strategy.

When a business is designed solely with an eventual sale in mind, decision-making tends to prioritize short-term gains over long-term stability. Cost-cutting may take precedence over investing in innovation, employee growth, and customer relationships. While this may enhance financial performance in the short term, it can leave the business fragile and ill-prepared for a smooth transition of ownership.

Conversely, a company built with the future in mind can be better positioned to withstand the challenges of leadership transitions. Owners who focus on long-term success tend to make strategic investments in their workforce, establish strong corporate values, and implement scalable systems that help ensure adaptability in a changing market. These efforts can not only help strengthen the business but also can enhance its appeal to potential successors, whether they are internal leaders or external buyers. Ultimately, businesses with a legacy-driven approach are better positioned to thrive across generations.

Key Components of a Successful Business Exit Strategy

Ultimately, a business owner will likely want to exit the business through a well-thought out plan. If the business is going to survive into the future, the business exit strategy should carefully examine all aspects of the transition.  Here are a few key components:

1. Determine Exit Options – Whether transitioning to a family member, a trusted employee, or an external buyer, determining the best exit option is critical. This process should involve evaluating potential successors based on competency, leadership qualities, and alignment with the business’s long-term vision.
2. Financial Considerations – A successful business succession plan requires a thorough evaluation of both personal and business finances. Ensuring the company remains financially viable post-transition is essential, while also aligning the owner’s personal financial goals, such as retirement planning and wealth preservation, to secure long-term success.
3. Tax and Legal Considerations – Transferring ownership could come with complex tax and legal implications. A well-structured plan can help minimize tax liabilities and avoid potential legal pitfalls.
4. Leadership Transition – Preparing the next generation of leaders should include a structured transition period, during which the successor is trained and gradually assumes leadership responsibilities.
5. Contingency Planning – Unexpected events can arise, so having contingency plans in place helps the business continue operating smoothly under unforeseen circumstances.

The Role of a Wealth Management Firm in Business Succession Planning

Navigating the complexities of business succession planning often requires professional guidance. Partnering with a wealth management firm like Confluence Financial Partners can be invaluable in creating a smooth transition. Our team of financial professionals can assist with various aspects of the process, including:

• Comprehensive Financial Planning – Guiding a business owner in determining a sale price that makes sense and allows them to reach their financial goals. A wealth manager can also assist in the owner’s financial life post sale by developing strategies to protect and grow wealth.
• Working with Other Professionals – Collaborating with legal, tax, and financial experts to structure the transition in a way that minimizes tax burdens, maximizes financial efficiency, and helps ensure a seamless ownership transfer.
• Investment Management – Developing a strategic investment plan to help business owners grow and protect their wealth, and helping to ensure financial security both before and after their exit.

Securing Your Legacy for Future Generations

Business succession planning is not a task to be postponed. Proactively creating a structured exit strategy can help enable a seamless transition, safeguard your company’s legacy, and provide financial security for both you and your successors. Working with a trusted wealth management firm can also simplify the process and help ensure that your business remains strong for generations to come.

If you are considering business succession planning, we encourage you to take the first step. Contact Confluence Financial Partners today to discuss crafting a customized succession planning strategy tailored to your unique business needs.

Investing can be a powerful tool for building wealth and helping to secure financial stability, but to maximize its benefits, it should be aligned with your personal financial goals. A Financial Plan, supported by the professional guidance of a Wealth Management firm, such as Confluence Financial Partners, can help your portfolio reflect your long-term aspirations. Here are a few key steps to help make sure your financial plan drives your investing decisions.

1. Define Your Financial Goals

Before diving into investing or reassessing your current investments, it is best to establish clear financial objectives. Are you investing for retirement, a major purchase, or perhaps even leaving a legacy for your children? Whatever your objectives are, you should evaluate your existing investments to ensure they still align. A Certified Financial Planner (CFP) or Financial Advisor can help you set realistic, time-bound goals that serve as a foundation for your investment strategy.

2. Develop a Financial Plan

A well-crafted financial plan can serve as the foundation of a successful investment strategy. It starts with a clear understanding of your financial goals, risk tolerance, and time horizon. A comprehensive plan should incorporate key elements such as budgeting, debt management, savings, and insurance to establish a strong financial footing. It should also define both short-term and long-term objectives, providing a structured roadmap for building and preserving wealth. By thoroughly evaluating your current financial situation and anticipating future needs, a strategic plan can empower you to make informed investment decisions that support your overall financial well-being.

Confluence Financial Partners takes a holistic approach to financial planning and can help provide you with actionable steps to integrate the aspects of your financial life seamlessly. Rather than viewing investments in isolation, Confluence works to align them with cash flow management, tax strategies, estate planning, and risk mitigation to create a cohesive and strategic path toward your goals. This coordinated approach can help maximize wealth accumulation and long-term financial security, give you clarity and confidence in your decisions. With a well-defined plan in place, you can move forward with greater confidence that your financial future is built on a solid, strategic foundation.

3. Optimize for Tax Efficiency

An essential component of financial planning is optimizing for tax efficiency. Tax considerations can significantly impact investment returns, and working with a Certified Financial Planner (CFP) or Financial Advisor can help minimize tax burdens through strategies such as tax-loss harvesting, asset location planning, and retirement account maximization. By integrating these tax-efficient approaches, after-tax returns could increase and more of your wealth can be put to work toward your financial future.

4. Review, Monitor, and Adjust Your Investments Regularly

Beyond initial planning, continuous review and monitoring of investments can be critical to long-term success. As your life and goals change, your investment strategies should also adapt. Regularly assessing your portfolio in light of your plan can help it remain aligned with your financial objectives. Whether you’re starting fresh or reevaluating existing investments, partnering with a wealth management firm can provide professional oversight, helping to navigate market fluctuations and build a portfolio to help you live the life you want to live. With a proactive approach and professional guidance, you can more confidently pursue financial security and long-term prosperity.

5. Work with a Wealth Management Firm

Confluence Financial Partners is committed to a disciplined approach, guided by five key principles, to shape effective investing strategies. We manage investments to achieve individual client goals, not to beat arbitrary benchmarks. Our objective approach combines active and passive strategies, strategic planning, and tax-efficient solutions to help maximize returns and minimize long-term costs.

The Five Principles of Investing at Confluence Financial Partners

1. Objective-Based
   We believe clients are best served by focusing on how their investments serve their long-term goals rather than outperforming industry benchmarks.
2. Unbiased
   We take an unbiased approach in selecting investment types—active or passive—while maintaining transparency and prioritizing objectivity in the decision-making process for a sound investment strategy.
3. Strategic
   We use a balanced approach that combines strategic planning with carefully selected opportunities to align client investment portfolios with their specific goals.
4. Tax-Efficient
   For taxable accounts, we believe outcomes should be optimized not just for what the investments return, but for what the investments return after taxes.
5. Cost-Effective
   We believe optimizing the spend of client investment dollars on investment expenses is a key determinant of long-term success.

Confluence Financial Partners offers professional guidance in investment planning, risk management, and long-term financial strategy, providing clients with confidence and clarity in their financial journey. By leveraging the knowledge of experienced professionals, we can help develop a structured approach to investing that aligns with your financial aspirations and adapts to changing economic landscapes.

Final Thoughts

Investing is more than just buying securities—it’s about strategically growing your wealth in alignment with your personal financial goals. It’s about helping make sure that you aren’t just saving for saving’s sake, but rather you are building wealth while maximizing both your life and legacy. With the guidance of a Certified Financial Planner (CFP) or Financial Advisor, you will have someone to assist you with your investment decision as you work towards the life that you want. Working with Confluence Financial Partners provides access to our dedicated team that offers strategic insight, thoughtful guidance, and tailored solutions which can help turn your financial aspirations into reality.