Wealth Intelligence

What’s Your Effective Tax Rate?

Most people can rattle off their top federal tax bracket (their marginal rate), but don’t always know their effective tax rate.

Here is the difference.

Marginal Tax Rate:
●The rate on the last dollar of taxable income
●Tied to the highest bracket reached

Effective Tax Rate:
●Total federal income tax divided by total taxable income
●Always lower than the top bracket in a progressive system

Using simplified 2025 federal numbers for married filing jointly (Federal income taxes only, simplified illustrative figures only).

At $100,000 Taxable Income:
●Top federal bracket: 22 percent
●Effective federal rate: about 12 percent

At $250,000 Taxable Income:
●Top federal bracket: 24 percent
●Effective federal rate: about 18 percent

At $400,000 Taxable Income:
●Top federal bracket: 32 percent
●Effective federal rate: about 21 percent

Each layer of income is taxed at a different rate, so only the top slice hits the highest bracket.

Knowing both the marginal and effective rates can help keep tax conversations in perspective and make decisions more grounded. Your tax professional can provide additional insights.

How confident are you that you are truly on track for retirement?

Vanguard’s latest outlook says only 42 percent of Americans are pacing toward their retirement income goals.

That means most might need to save more, work longer, adjust spending, or some mix of all three.

Workplace strategies can make a big difference:
● 54 percent are on track, vs. 28 percent without access
● Those with access are projected to have a $1,000 surplus in retirement
● Those without access face an $8,000 shortfall

If you're unsure which side of the 42 percent you are on, let us help you develop a strategy that can help you get on track.

Recent data shows that about 4 in 10 U.S. adults say stress about money is harming their mental health, more than politics or world events, according to a study in the May report by PressReader.

That stress can quietly shape how you save, spend, and invest.

💡 Where Behavior and Money Collide
Common emotional triggers we see:
● Panic during market downturns
● Fear of missing out during rallies
● Clinging to outdated assumptions
● Avoiding all risk after a bad experience

These reactions are human; they are also why even a strong financial strategy can go off track if it ignores the emotional side of decision-making.

🤝 How We Help
Our role is part strategist, part coach:
● Clarifying realistic long-term goals
● Keeping focus on direction, not headlines
● Using structure to help manage risk
● Creating “emotional circuit breakers,” like waiting periods before big moves

Your financial strategy should support your life, not the other way around. If you are feeling anxious or your goals have shifted, this can be a good moment to talk. 💬

Stocks climbed in January as solid economic data offset geopolitical tensions. The S&P 500 rose 1.37%, the Dow gained 1.73%, and Canada's TSX picked up 0.66%, setting multiple record highs early in the month. The Fed held rates steady as expected, with all eyes now on the March meeting. From \$27.5 billion spent in the U.S. to \$97.80 per person in Canada, Valentine's Day spending spans the globe. Check out this month's by-the-numbers.

Monthly Market Insights | February 2026 Stocks climbed in January as the tailwinds of solid economic data offset the headwinds of geopolitical tensions that rattled investors during the month.