August 2025 - Fundamentals | |
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"Easy" Can Still Be Effective | When it comes to exercise, many people assume that the harder it feels, the more effective it must be. Sweat equals progress, right? But as physical therapists remind us, gentle, “easy” exercises often build the fundamentals that matter most. They retrain your pain system, strengthen overlooked muscles, and lay the groundwork for more challenging movements later.
The same principle applies to your financial life.
It’s easy to believe that wealth-building requires intensity - constantly tracking markets, chasing high returns, or outsmarting the system. If it feels “too easy” (like steadily contributing to your 401(k) or automating your savings), you might wonder, is this really helping?
The answer: ABSOLUTELY!
- Just as gentle exercises rebuild the fundamentals of strength and mobility, small financial habits reinforce the fundamentals of financial health - discipline, consistency, and resilience.
- “Easy” financial moves like reviewing spending, setting up auto-pay, or raising savings contributions by 1% are fundamental building blocks. They may feel subtle, but they support your entire financial foundation.
This is the very reason we designed our Purpose-Built Planning process the way we did. It's not about flashy, one-time moves, but it's about eastablishing the fundamentals and staying consistent. From the first steps of organizaing your finances, to ongoing tax, investment, and retirement planning, each stage builds a stronger foundation. Over time, that consistency gives you the confidence and flexibility to pursue bigger goals without the stress of wondering if you're "doing it right."
What feels simple now is fundamental to achieving long-term success.
So next time you wonder, “Shouldn’t this be harder?” remember: in both health and wealth, progress starts with the fundamentals. Easy doesn’t mean ineffective - it means you’re building a foundation that lasts.
Visit lecontewealth.com to explore how our team can help you build the fundamentals. | | | |
| | My Journey to LeConte Wealth | From Canada to East Tennessee, Doug's journey has been shaped by a search for something deeper than success - purpose. That pursuit has guided his life, relationships, and career, and ultimately led him to LeConte Wealth, where he found a team that feels like family and a planning process built on meaning, not speculation.
Read more of Doug's story here. | | | | | |
| | Back-to-School, Back to Planning: 529 Plans | As families settle into back-to-school routines, it’s also a great time to revisit education savings. One of the most powerful tools available is the 529 plan. 529 plans are flexible, tax-advantaged accounts that has recently gained even more benefits. From expanded K–12 uses to Roth IRA rollovers for unused funds, the 529 plan is no longer just about tuition - it’s about creating options for your child’s future.
Read more about the new rules and how they can impact your family’s education strategy. | | | | | |
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Recently Published On Financial Friction | | |
| | Economy In Focus | The Data: - 3.0% - U.S. real GDP growth in Q2 2025, beating the expected 2.4%
- 4.2% - Unemployment rate holding steady in July, ticking up from 4.1%
- 2.8% - Core PCE inflation rate in June 2025, still above the Fed's 2% target
- 73k - Nonfarm payrolls added in July 2025, below the 110K forecast
Commentary: As August comes to a close, the U.S. economy is showing mixed signals, with strong growth in some areas but lingering concerns about jobs and prices. GDP grew 3% in the second quarter, driven by robust spending from both consumers and businesses, exceeding economists’ expectations. This rebound from a slow start to the year offers hope that the economy can continue expanding despite challenges such as high costs and global uncertainties.
At the same time, the job market is slowing. In July, only 73,000 new jobs were added, well below expectations (and hefty revisions for May and June), and unemployment rose to 4.2 percent. Companies are slowing hiring, which could make it harder for workers to find opportunities or secure raises. Wages continue to rise, but not fast enough to fully keep up with increasing costs for essentials such as food and rent.
Inflation remains persistent. Core PCE, the Fed’s preferred measure, was 2.8 percent in June, slightly lower but still above the 2 percent target. While falling energy prices have helped, housing and service costs remain high, putting pressure on household budgets.
A key moment this month came with Fed Chair Jerome Powell’s speech at Jackson Hole on August 22nd. He noted that inflation risks are easing but warned that prolonged high rates could lead to job losses. Powell suggested that rate cuts might be on the horizon to support employment, even with potential price pressures from tariffs. He emphasized the Fed’s dual focus on keeping inflation low while maintaining full employment, which lifted investor confidence. St. Louis Fed President Jim Bullard also mentioned the possibility of a 100-basis-point cut over the next year (when he speaks about cuts, you should listen)
Markets reacted positively to Powell’s speech. The S&P 500 rose 1.5% on August 22nd, approaching record highs and bringing year-to-date gains to ~10%. The Dow reached a new record. Investors are clearly expecting lower rates ahead.
For income-focused investors, Powell’s comments drove Treasury yields lower. The 10-year yield fell roughly six basis points to 3.8%, boosting bond prices. Those already holding bonds benefited, and if cuts come soon, buying longer-term bonds could be attractive before yields drop further. Inflation remains a factor that could push yields back up.
Looking ahead, potential Fed cuts could lower mortgage and loan rates, making homes and cars more affordable. Risks remain, including trade tensions, a slowing job market, or other economic shocks. The best approach is to diversify investments, continue saving, and plan for uncertainty. Lower rates may help, but steady economic growth is not guaranteed. | | |
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| LeConte In The News | UW Campaign Kickoff
On Friday, August 22nd, the United Way of Blount County held its Campaign Kickoff Breakfast. Our own Alex Willard, serving as the 2025 Board Chair, opened the event and encouraged attendees to come together to reach the campaign fundraising goals of $2,002,026.
Early next year, United Way staff will guide community members through an allocations process, distributing funds to Blount County organizations that support the area's most vulnerable residents. | | | |
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| | Copyright 2025 LeConte Wealth Management, LLC. All Rights reserved. Advisory services offered through LeConte Wealth Management, LLC. an SEC registered investment adviser. |
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