The annual checkup is critical for your long-term health and your wealth

Each year, we visit a doctor – not because we’re sick, but to make sure we’re not. Preventive care detects early issues and provides confidence that we’re on track. The same principle applies to your financial life.

An annual financial review is your fiscal physical: a chance to confirm your plan’s vitality, adjust course, and sleep better at night. Yet many people delay or skip it. Let’s explore why that’s a mistake – and how you can use your yearly financial checkup as a source of strength.

Why Annual Reviews Are Critical

Your financial life is not static. Markets change. Tax laws change. You change. What worked last year might be out of step now.

A solid financial plan must evolve. Without consistent review, even the best-laid plans grow brittle. Annual reviews offer a structured space to address:

• Progress toward goals
• Life transitions
• Portfolio risk
• Legislative shifts
• Emotional reactions to the market

What a Comprehensive Review Should Include

1. Goal Assessment
   • Are you on track for retirement, home purchase, or education savings?
   • Have your priorities shifted?

2. Investment Strategy
   • Is your asset allocation still right?
   • Has your risk tolerance changed with age or experience?

3. Account Review
   • Are any accounts redundant, outdated, or underperforming?
   • Is your contribution strategy tax-efficient?

4. Spending Plan
   • Are you living within your means?
   • Could you save more, or reallocate current savings?

5. Debt Management
   • Are you managing debt wisely?
   • Is refinancing or consolidation an option?

6. Tax Planning
   • Could you benefit from Roth conversions or charitable giving strategies?
   • Are you using all available deductions?

7. Estate Planning
   • Are your documents updated?
   • Are you coordinating asset titling, trusts, and beneficiary designations?

8. Insurance Audit
   • Do you have enough – and the right type – of coverage?

Emotional Dimension of Financial Reviews

A financial checkup is not just about numbers – it’s about peace of mind. Reviews offer reassurance during volatile markets and reaffirm your values.

They’re also a chance to talk through financial stressors, family dynamics, or big decisions like downsizing, retiring early, or changing careers. A good advisor doesn’t just listen – they help guide.

What Happens If You Don’t Review Annually?

• You might be exposed to unnecessary risk.
• You might miss new opportunities.
• You might assume you’re on track when you’re not.

In short: life moves fast. Your plan should move with it.

Copyright © 2026 FMeX.

It’s been 36 years since “Barbarians at the Gate” hit bookstores. That book turned the RJR Nabisco buyout into a cultural moment. Now we have a new record holder.

Electronic Arts just agreed to go private in a $55 billion deal. It’s the largest leveraged buyout in history. And it’s worth comparing to what happened in 1989.

The Numbers

Silver Lake, Saudi Arabia’s Public Investment Fund, and Affinity Partners are putting up $36 billion in equity. J.P. Morgan committed $20 billion in debt financing. EA shareholders get $210 per share, a 25% premium.

RJR Nabisco went for about $25 billion back then. Adjust for inflation and you’re still looking at something smaller than EA. But the similarities matter more than the size.

Why These Deals Worked

Both companies had predictable cash flows. RJR had tobacco and food products. People bought Oreos and cigarettes regardless of the economy. EA has sports franchises like Madden and FIFA. Gamers buy them every year.

That’s what private equity looks for. Stable revenue. Strong margins. Products that generate cash without massive capital expenditure.

What Changed

The RJR deal was messy. Management tried to buy the company themselves. A bidding war broke out. KKR won with a lower guaranteed offer because the board didn’t trust management’s incentives.

The drama around executive compensation and golden parachutes defined that era. Congress held hearings. People questioned whether LBOs served anyone besides dealmakers.

EA’s buyout looks different. No public bidding war. No management trying to cut themselves in. The board evaluated one offer and took it. Sovereign wealth funds are involved, which wasn’t common in 1989.

The Junk Bond Era vs Today

KKR used high-yield debt to finance RJR. Junk bonds were relatively new as an LBO tool. Michael Milken at Drexel Burnham Lambert pioneered the market. It was controversial.

Today, leveraged finance is standard. Banks structure debt packages. Private credit funds compete with traditional lenders. The EA deal uses $20 billion in debt, but nobody’s calling it reckless.

Interest rates matter here. The RJR deal happened when rates were high. EA benefits from years of low rates and the expectation that the Fed will cut soon.

What It Means

Gaming is now attractive enough for the biggest private equity play ever. That says something about how investors view tech-driven content businesses.

RJR showed that any company with cash flow could be a target. EA shows that tech companies with recurring revenue are the new blue chips for buyouts.

The market has matured. What shocked people in 1989 is routine now. Sovereign wealth funds deploy capital globally. Private equity firms write checks that would have seemed impossible.

But the basic logic hasn’t changed. Historically, leveraged buyouts have involved acquiring businesses with stable cash generation, using debt as a financing tool, and aiming to manage the company so that it can service its obligations and potentially provide an eventual exit opportunity.

Questions Worth Asking

Can EA’s revenue stay predictable in private hands? Sports games depend on licensing deals with leagues. Those deals can change.

What happens to game quality when a company optimizes for cash flow? EA already has critics who say it prioritizes monetization over innovation.

And what does this mean for other gaming companies? If EA can command this valuation, others will attract interest. More consolidation seems likely.

The RJR deal ended badly for KKR initially. They eventually made money, but it took restructuring and asset sales. Large LBOs carry risk. Bigger isn’t always better.

End Game

EA’s buyout is historic by size. But it follows a playbook written decades ago. Find cash flow. Add leverage. Take it private.

The gaming industry just became the newest candidate for this old strategy. We’ll see if it works better than it did for tobacco and cookies.

This material is published and distributed by Financial Media Exchange for informational and educational purposes only. It is not intended as investment advice or a recommendation to buy or sell any security. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results.

Private equity and leveraged buyouts involve significant risks, including leverage risk, liquidity constraints, and conflicts of interest related to deal structures

The information presented is believed to be reliable but is not guaranteed. You should consult your own financial professional before making any investment decisions. This content complies with SEC and FINRA guidelines for educational communications and does not promote any specific products or strategies.

Copyright © 2026 FMeX.

Questions rise about the accuracy of recent and upcoming inflation numbers

As a financial planner, one of the most critical pieces of information I rely on to make informed investment decisions is the U.S. inflation rate. This metric, published by the Bureau of Labor Statistics (BLS), is a cornerstone of economic analysis and policy-making. However, recent developments have raised concerns about the accuracy and reliability of this data. The BLS has reported that staffing shortages have hampered its ability to conduct its massive monthly survey, leading economists to question the quality of recent and upcoming inflation reports.

The Role of the Bureau of Labor Statistics

The BLS is responsible for calculating the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. This index is a key indicator of inflation and is used by policymakers, businesses, and investors to make critical decisions. The process involves hundreds of government workers, known as enumerators (government workers who visit businesses to check prices), who visit businesses and check prices for a wide range of products and services, from blue jeans to accounting services.

The Impact of Staffing Shortages

Recently, the BLS has faced significant staffing challenges. A hiring freeze at the agency has forced the survey to cut back on the number of businesses where it checks prices.

This reduction in the workforce means that the BLS has had to rely more heavily on less precise methods to estimate price changes.

In the April inflation report, for example, government statisticians had to use a process called different-cell imputation (a method where statisticians use data from other regions or less comparable products to estimate price changes when specific data is unavailable) more extensively than usual. While this is a standard practice when specific data is unavailable, the increased reliance on it due to staffing shortages has raised eyebrows among economists.

Why Accuracy Matters

The accuracy of inflation data is crucial for several reasons:

• Economic Policy: The Federal Reserve and other policymakers use inflation data to set monetary policy. If the data is inaccurate, it could lead to misguided decisions, such as raising interest rates too soon or too late, which can have significant implications for economic growth and stability.
• Investment Decisions: Investors rely on inflation data to make informed decisions about asset allocation. Inflation can erode the purchasing power of fixed-income investments and affect the performance of stocks and other assets. Accurate data helps investors adjust their strategies to protect their wealth.
• Consumer Confidence: Inflation data influences consumer confidence and spending behavior. If consumers believe inflation is higher or lower than it actually is, it can affect their purchasing decisions and overall economic activity.
• Contractual Agreements: Many contracts, such as those for wages, rents, and pensions, are indexed to inflation. Inaccurate data can lead to unfair adjustments in these agreements, affecting the financial well-being of individuals and businesses.

The Concerns of Economists

Economists are beginning to question the quality of recent U.S. inflation data due to the staffing shortages. While there is no evidence of intentional efforts to publish false or misleading statistics, the increased use of imputation methods can introduce errors and biases into the data. These concerns are not trivial, as even small inaccuracies can have major implications for the economy.

• Data Reliability: The more the BLS relies on imputation, the less reliable the data becomes. Imputation is a necessary tool when specific data is missing, but it is not as precise as direct price checks. This can lead to an overestimation or underestimation of inflation.
• Regional Disparities: The BLS may have to use data from other regions to estimate prices in areas where enumerators are scarce. This can mask regional differences in price changes, leading to a less accurate national inflation rate.
• Product Substitution: When using less comparable products to estimate price changes, the BLS may not capture the true cost of living accurately. For example, using cargo pants instead of slacks might not reflect the same price trends, leading to potential inaccuracies in the CPI.

What Investors Can Do

Given the potential issues with the quality of inflation data, investors should take a few steps to protect their financial interests:

• Diversify Investments: Diversification is always a good strategy, but it becomes even more important when economic data is uncertain. Consider spreading your investments across different asset classes to mitigate the impact of inflation on your portfolio.
• Monitor Multiple Indicators: Relying on a single measure of inflation can be risky. Investors should monitor multiple economic indicators, such as the Personal Consumption Expenditures (PCE) index, which is another measure of inflation used by the Federal Reserve. This can provide a more comprehensive view of price changes.
• Stay Informed: Keep an eye on news and updates from the BLS and other economic agencies. Understanding the context and limitations of the data can help you make more informed decisions.
• Consult Financial Professionals: If you are concerned about the impact of inflation on your investments, consult with a financial planner or economist. They can provide insights and help you navigate the uncertainties in the data.

The stakes are high, and the quality of the data you rely on can make all the difference in your financial well-being.

Copyright © 2026 FMeX.