Well Balanced

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

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

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: Don’t call the number. If you see a pop-up or urgent message, close your browser window. Never grant remote access unless you initiated the request with a verified company. Call your advisor or a trusted family member if you’re unsure whether something is legitimate. A quick conversation can stop a phishing attempt or scam in its tracks. Have a trusted contact on file at Vector. This gives your advisor someone to reach out to if something looks suspicious and you’re unavailable. If you think you’ve been targeted, act fast. Contact your advisor or financial institution right away. Even if you’ve already shared personal information, firms and custodians have safeguards that can help freeze accounts and limit damage. 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: Introduction (0:00) The Scam Threat (0:49) Real-Life Example (1:09) How Scams Work (1:49) Protecting Yourself (2:28) Trusted Contacts (3:00) Regulatory (4:57) - 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: Review Your Beneficiaries 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. Refresh Your Passwords 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. Sweep Out Old Subscriptions 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. Review Your Insurance Coverage 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. Organize Your Key Documents 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

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

In this edition of the Well Balanced podcast, we dive into three major financial stories making headlines: Stock Market Highs: The S&P 500 and NASDAQ have reached record highs, driven by optimism over potential interest rate cuts and strong corporate earnings. Earnings Season Highlights: Overall strong corporate earnings for Q2, with significant earnings growth across sectors like technology, communication, and financials. Interest Rate Outlook: Recent inflation report showed higher-than-expected price levels for producers in the economy. Despite this recent report, we anticipate the Fed will still cut interest rates in 2025, with implications for borrowing costs and investment. Watch, listen or read this week’s Market Perspective with Jason Ranallo. For more: vectorwealth.com/blog - Regulatory: visit 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. - V25226266

In this conversation, Tom Lyons, founder of a mergers, acquisitions, and advisory firm, and Vector’s Sharon Calhoun, discuss the intricacies of business valuations, exit strategies, and how to maximize the value of a business. They explore the importance of planning and preparation for business owners considering selling their business, the role of management in enhancing enterprise value, and common mistakes to avoid during the exit process. The discussion emphasizes the need for business owners to understand their goals and plan for retirement effectively. Video and audio versions, along with a transcript of this conversation may be found on our blog. Vectorwealth.com/blog Takeaways Business valuations are an important part of planning an exit strategy. Understanding enterprise value may help owners to maximize their business worth. Planning for an exit (and retirement) should start early, ideally years before selling. A strong management team can increase a business's attractiveness to buyers. Not preparing adequately for a sale is a common mistake Business owners should seek multiple valuations to better understand worth. Tax implications play a significant role in business sales. Have a clear vision of life after business ownership. About Thomas Lyons Tom Lyons has 40+ years of experience in business brokerage and mergers & acquisitions helping owners maximize the value of their companies. A Vietnam-era Air Force veteran, he’s also the author of Exit Strategy, a host of Minnesota Military Radio, and a passionate advocate working on veterans’ food security and family support through nonprofit initiatives like the Minnesota Veterans Pantry. Visit www.faelon.com/thomas-lyons to learn more about Tom and connect with his various causes and interests, including the Minnesota Veterans Pantry. -- V25210263 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.

All-Time Highs: What They Mean—and What They Don’t Today, we’re exploring a topic that’s hitting headlines, stirring conversations, and maybe even finding its way into your family group texts: all-time highs. Markets Are Up Let’s begin with the markets. Despite a turbulent first half of the year—rife with tariff negotiations, interest rate debates, geopolitical tensions, and the occasional curveball—the U.S. stock market has shown remarkable resilience. As of this week, major indices like the S&P 500 and Nasdaq are trading at or near record highs. But before jumping to conclusions: an all-time high in prices alone doesn’t mean the market is “due” for a drop. Think of it like your car’s odometer rolling past 100,000 miles—it doesn’t signal an imminent breakdown. In fact, hitting new highs is a normal part of long-term investing. This year alone, we’ve reached seven new highs. For perspective, there were 57 record-setting closes last year. Other items we are watching: corporate earnings, market valuations, volatility, interest rates. So far this year, the market is up about 7%. That journey hasn’t been smooth. In April, markets dropped nearly 20% from previous highs—only to rebound 26% from the bottom. April 9th even saw a record-setting one-day performance. As we like to say: the market takes a bumpy road to the long-term average. Another Kind of All-Time High: National Debt Ceiling Let’s shift to a different milestone—one that’s perhaps less celebratory. Recently, the U.S. passed the budget reconciliation law known as HR1, or informally, “one big beautiful bill.” Along with it came a $5 trillion increase to the national debt ceiling, from $36 trillion to $41 trillion. That’s a staggering number. For context: in 1996, the entire debt ceiling was $5 trillion. The debt ceiling operates like Uncle Sam’s credit limit—it doesn’t authorize new spending, but allows the government to meet its existing obligations like Social Security, defense, and interest payments. Since 1960, it’s been raised nearly 80 times to keep pace with our economy and obligations. Raising the ceiling helps avoid default, which is crucial. But rising debt levels raise questions about sustainability. It’s akin to continually raising your credit limit—the spending may continue, but so do the minimum payments. Eventually, the lender starts to worry. That’s why markets tend to focus more on debt sustainability than the absolute number. As long as our economy grows and trust in our institutions remains strong, the system is expected to hold. The All-Time High That Hits Home: Gap Between Home Prices and Housing Affordability Finally, let’s talk about an all-time high that’s hitting close to home—literally. The gap between home prices and affordability is near historic highs, posing a real challenge for new prospective homebuyers. While home values have climbed steadily—accelerating during the low-rate pandemic years—today’s higher mortgage rates have sharply increased the cost of borrowing. Mortgage rates now hover between 6.5% and 7%, more than double what they were just five years ago. That means even if a home’s price hasn’t changed, the monthly payment on a new mortgage has—by a lot. Historically, affordability crunches have created pressure for change, whether through falling rates, policy shifts, or increased housing supply. But none of those solutions happen overnight. At Vector, we believe the financial landscape is always a blend of opportunity and complexity. That’s why staying informed, grounded, and committed to a financial plan is essential—especially during times of record highs. Thanks for tuning in to Well Balanced. If you have questions or want to explore how these dynamics might impact your strategy, we’re here to help. vectorwealth.com/start - 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