Checking In with Ara – March 2025

Jungle Adventures, Surf Sessions, and… Tariffs?

After an unforgettable birthday trip to Costa Rica, I’m back and excited to share this month’s update with you. I spent about 10 days in Santa Teresa, a small jungle town that’s changed quite a bit since my last visit 22 years ago. Once a quiet, tucked-away surf spot, it’s now grown into a lively hub full of expats and travelers—but it hasn’t lost its natural charm.

During my stay, I surfed some great waves, devoured incredible food, and even zip-lined through the lush jungle canopy. If Costa Rica isn’t on your travel list yet, I highly recommend adding it!

Now, let’s shift gears and talk about something that’s been popping up a lot in our recent meetings: tariffs.

What’s Going On With Tariffs?

Historically, U.S. tariff rates have dropped significantly since the 1930s, thanks to increasing globalization and open trade. But recent geopolitical tensions and post-COVID disruptions have begun to reverse that trend. According to the Tax Foundation, average tariff rates on U.S. imports could jump from 2.4% in 2023 to 17.7% by 2025 if proposed policy changes go into effect. That’s a significant increase—and it could have real implications for markets and portfolios.

What Does This Mean for Your Portfolio?

Are tariffs “bad”? The truth is, it depends. While higher tariffs can hurt certain sectors, they can also create new investment opportunities elsewhere. This uncertainty is exactly why we use the Bucket Strategy®—to help weather unpredictable shifts in the market.

By making sure you have enough income in Bucket 1 and Bucket 2 to cover your needs for the next 10 to 15 years, we can allow the equities in Bucket 3 to ride out any market volatility. That built-in flexibility is key to navigating policy changes like these.

Let’s Review

At our next meeting, we’ll check on your income levels, evaluate recent gains, and determine whether value averaging makes sense for your plan. As always, feel free to reach out with any questions in the meantime.

Here’s to a great start to the new year—I look forward to catching up with you soon!