Quarterly Client Letter – Q3 2025

Q3 2025

Dear Clients,

This quarterly recap for the period ending September 30th, 2025, continues the trend of very positive market performance this year. As mentioned in our most recent monthly market commentary, equity markets continue to rally while interest rates continue to gradually move lower. Lower interest rates contribute to the following:

• Positive– longer dated bonds are performing well, as bonds typically have an inverse relationship with interest rates. If rates continue to move lower, bonds should continue to make sense.
• Negative-your cash isn’t earning as much as it was last year. Rates on money markets and high-yield savings accounts have moved lower than their historic rates from 2023. While cash isn’t a bad short-term strategy, we believe that bonds and even stocks offer higher long-term returns.
• Back to Positive– lending rates for auto loans and even mortgages are starting to move slightly lower. This should help affordability issues for all Americans.

Garet Strange actually spoke about the impact of declining interest rates on his interview with Mike Switzer of the South Carolina Business Review; you can find his interview on the blog section of our website: https://hobbsgroupadvisors.com/switzer-interviews-garet-strange/

HGA Behind the Scenes

This quarter, I’d like to take you behind the scenes so you can get a glimpse of the work we do for you throughout the year. I will start off by saying that we want to have an annual sit-down review meeting with every client. This can be done in-person or virtually. We also want to be the first people you call when you need to make a large financial decision. I truly believe an objective third party can help talk you out of bad decisions just as much as we can help you confirm good ones. That’s always part of the deal if you work with us. What happens between phone calls and formal review meetings? Here’s how we do it.

We have established a quarterly client check-in process for our team to ensure we are reviewing certain items throughout the year. Each advisor in our firm has a list of clients that they must review each week. They then assign certain tasks to our support team to

help make sure every client is getting the attention they deserve. Below are just some of the items we hope to cover internally. I hope this list also serves as a memory jogger for you if you think we need to address one of the following for your household:

• Make sure client and family information are up to date in our database.
• Review notes from previous client meetings/calls/emails. Send a check-in email if needed. Did we have any follow-up items from the last interaction?
• Review investment accounts for accurate allocation. Ensure no excess cash if not needed for income purposes.
• Review client income needs if applicable, like recurring portfolio withdrawals, annual withdrawals, and required minimum distributions/qualified charitable distributions from retirement accounts for clients age 73 or older.
• Check beneficiary designations. Ensure HGA has a copy of estate planning/legal documents.
• Review a retirement income plan for clients nearing or in retirement.
• Review previous year’s tax return and review items that may impact the current year’s tax return.
• Update client tax reporting letter with strategies performed throughout the year.

It’s 4th Quarter:

In the last quarter of the year, we will be focusing heavily on tax planning strategies and year-end deadlines. One such deadline is the Required Minimum Distribution rule. This rule requires distributions from certain individual Retirement Accounts and 401(k)s, for clients turning 73 in 2025, and every year thereafter. This distribution is calculated at the beginning of each year, and it typically increases each year after age 73. Fidelity and other custodians may have already sent notice if you are required to tax such a distribution. There are options and tax considerations, so we intend to send further communications to clients subject to this requirement.

Warm Regards,

Peter A. Pigeon, CFP®