Tip of the Month: Protecting Yourself From Cryptocurrency Scams

Scams involving cryptocurrency, also known as digital currencies, are on the rise across the United States. These scams use common techniques, such as impersonating authorities or using online relationships to build trust. However, with the use of cryptocurrency, investigating and recovering funds has become even more difficult.

How can I avoid falling victim to a cryptocurrency scam?

• No legitimate business or government agency will require you to pay using cryptocurrency.

• If someone promises you free money or guaranteed investment returns that sound too good to be true, they are.

• If you meet someone online who later pitches you an investment opportunity involving cryptocurrency, this is very likely a scam.

• If you receive an unexpected email, phone call, text, or social media message, slow down and analyze the message. These tactics work by evoking urgency and fear. If you stay calm and work slowly, you will better recognize the red flags of a scam.

What should I do if I suspect I have been scammed?

• The first step is to report the suspected fraud to the authorities. We also recommend notifying your advisor so that we can assist you with the process.

• Report to the Federal Bureau of Investigation (FBI) through the Internet Crime Complaint Center (IC3).

• Report to the Federal Trade Commission (FTC).

• Report to the U.S. Securities and Exchange Commission (SEC)

• Try to record as much information as possible to provide to the authorities. This could include:

  • Identifying information about who contacted you and how.

  • Any communication you had with the suspected scammer, including all instructions they may have provided to you.

  • Financial transaction details such as the cryptocurrency type and address, the date, time and amount of transaction, and a transaction ID or hash.

• Do not pay additional fees or taxes to withdraw your money and do not pay for a service promising to recover your funds. These are likely attempts to scam more money from you.

What if I am interested in investing in digital currency?

• Reach out to your advisor first to discuss. We can help you assess an appropriate method of investing as well as watch for any red flags of potential fraud.

• With highly volatile securities like digital currency or individual stocks, one should never invest more than one is willing to lose. We can help determine an appropriate amount of money for you to invest without putting strain on your overall financial plan.

• Do your research and stick to established currencies that are time-tested. Bluestem does not include digital currencies in our investment philosophy, so we can not provide advice on specific options. But as a rule, we are wary of investments that are new to the market.

• Understand the technology behind digital currency and evaluate the founders and developers who contribute to the currency’s operation. Also, select a safe storage for your digital currency whether it’s a hardware wallet or a trusted custodian.

References:

What To Know About Cryptocurrency and Scams | Consumer Advice

www.fbi.gov

10 Rules of Investing in Crypto

Faculty Phased Retirement at Illinois: A Practical Guide for Tenured and Specialized Faculty

In late 2025, the University of Illinois rolled out a new Faculty Phased Retirement Program (FPRP). This program offers tenured and other select faculty a way to build a glidepath into retirement while maintaining access to health insurance and other employee benefits. This guide offers our clients and those interested in this program an overview of the program as well as considerations for your retirement and financial plan.

Introduction to the FPRP

To qualify for the program, you must be tenured or specialized faculty at UIUC who will otherwise be eligible for retirement under the State University Retirement System (SURS) by the end of the 3-year program. Here is the eligibility for retirement under SURS (State Universities Retirement System, 2025a):

• SURS Retirement Savings Plan, or Tier 1 Traditional / Portable - Age 55 with 8 Years of Service Credit, Age 62 with 5 Years of Service Credit, or any age with 30 Years of Service Credit.

• Tier 2 Traditional or Portable participants - 10 Years of Service Credit at age 62.

Once accepted by your leadership and Dean, your appointment can be phased down over a period of up to three years. This allows you to stay involved in a part of your position you enjoy such as teaching, research, or supervising graduate students, and give up parts of your position you wish to reduce or eliminate. (Illinois Human Resources, 2025)

Impacts with your Pension and Retiree Health Insurance

It is important to understand this program does not change any of your elections within SURS or elect retirement under SURS. This reduces your appointment with UIUC with an agreement to fully retire by an agreed upon date. While health insurance is subsidized during this transition period, your retirement pension and health insurance benefits may be impacted.

SURS Traditional and Portable

Whether you are Tier 1 or Tier 2, your retirement benefits are determined based on a formula that factors in your years of service and final average salary. By opting into this program and reducing your appointment, you may accrue less service credit.

Example 1:

Sally is a 62-year-old professor in SURS Traditional that planned to work until age 65. She is interested in the FPRP program to see her graduate student through completion of his PhD as well as finish out her current grant funded research project. She currently has 17 years of service credit.

If she did not elect FPRP, she would accrue 3 more years of service credit and retire with 20 years at age 65. Assuming final average earnings of $150,000 and using the 2.2 rule, her pension would be $66,000 per year ($150,000 x 2.2% x 20). (State Universities Retirement System, n.d.)

If she elected FPRP, with a 66% appointment through age 65, she would only accrue 2 years of service credit over the final 3 years, ending with 19 years of service credit. Assuming Final Average Earnings of $150,000 and using the 2.2 Rule, her pension would be $62,700, a reduction of $3,300 per year.

Keep in mind, many of our faculty clients have additional sources of salary while working in a full-time appointment, such as drawing summer salary or salary supplements for leadership roles. If you were to give up these sources of income under the PFRP, you may see other impacts on your final pension calculation. These impacts would need to be calculated at the individual level as it can vary based on your final average salary and considering impacts of cost-of-living adjustments you may be entitled to if you retire earlier.

SURS Retirement Savings Plan

This pension plan determines benefits based on contributions and investment growth on the plan rather than years of service. By opting into this program, your salary would be reduced and therefore your own contributions and matching by your employer would be reduced.

Example 2:

Same facts as Example 1, except Sally is in SURS RSP. Sally contributes the mandatory 8% of her income to RSP and her employer matches this with 7.3% for total contributions of 15.3%.

Over the next 3 years and working full-time, her SURS RSP would receive contributions of $68,850 ($150,000 x 15.3% x 3).

If instead, she opts into the FPRP, her SURS RSP would receive contributions of $45,441 ($150,000 x 66% x 15.3% x 3) .

The exact impacts on retirement income are unknown as we cannot predict future investment returns or annuity rates. In either Example 1 or 2, Sally could consider “making up” some of this lost retirement income be increasing her voluntary retirement contributions via the 403b or 457 Deferred Compensation programs. However, this would further reduce her take-home pay beyond reduction in salary.

Health Insurance while Working

One of the primary benefits of the FPRP is the ability to maintain access to health insurance during the program at the same rates you pay during a full-time appointment. Normally, taking a reduced appointment that reduces your full-time equivalency below 1.0 would also come with a prorated increase in premiums to make up for the employer insurance premium subsidy. Under this program, your employer will make up that increased cost on your behalf. The details of these premium subsidies can be found at HR Resources Website - Insurance Impact Scenarios.

Health Insurance in Retirement

Once you complete the FPRP program and fully retire, you may have access to Retiree Health Insurance benefits. Eligibility of these benefits is based on your annuitization of your SURS pension and number of years of service credit. Read more about these benefits and eligibility requirements at Retiree Health Insurance Under SURS: An Explainer.

Notably, if you have less than 20 years of service reducing your appointment may reduce your eligibility for retiree health insurance benefits.

Example 3:

Going back to the facts in Example 1, if Sally does not opt into the FPRP and works until age 65, she will obtain 20 years of service credit. If she annuitizes her SURS pension, her retiree health insurance benefit is fully vested, and she will pay no premiums towards this benefit.

If she does opt into the FPRP and works until age 65 at a 66% appointment, she will only obtain 19 years of service credit. Upon annuitizing her SURS pension, she will be eligible for Retiree Health Insurance Benefits but will be responsible for 5% of the total cost each year. This is because health insurance premiums for retirees are based on number of years of service (State Universities Retirement System, 2025b).

Please note, at age 65, most participants will be required to opt into a Medicare Part A and Part B policy. While Part A generally has no premium when retired, Part B does have a Premium. You are responsible for Part B premiums, which are paid directly to Medicare, regardless of number of years of service credit. Upon reaching age 65, you would enroll in the Total Retiree Insurance Illinois Plan (TRAIL), which is currently a Medicare Advantage plan. The premiums on this are very low and therefore having less than 20 years of service credit has a minimal financial impact with regard to premiums. The impact is much larger for those retiring before age 65 or if Medicare Advantage premiums were to rise significantly later in retirement.

Bluestem’s View

The primary benefit of this program is providing flexibility in transitioning into retirement. We have seen some clients struggle with a sudden retirement, going from working full-time to fully retired. After the initial honeymoon period wears off, some feel a lack of structure and purpose without a longer period of transition. This program can provide a structured way to glide into retirement rather than making the transition from full-time work to retirement suddenly. If the time offered under this program is used to begin building post-retirement interests and purpose, it could be a positive program to consider.

See more on purpose in Money and Happiness Part II: Relationships, Purpose, and Fulfillment.

The maximum length of three years is also a downside of the program. It limits flexibility for those who still want to contribute over the long-term but adapt their work to their skills. Drawing on Arthur Brooks’ central theme from Strength to Strength, as our brains age, our cognitive strengths shift from problem-solving (“fluid intelligence”) to wisdom-based skills (“crystallized intelligence”) such as teaching, mentoring, and synthesizing knowledge. This transition can be a tremendous asset to both the university and the faculty member, as seasoned faculty can offer invaluable guidance, historical perspective, and mentorship to younger colleagues and students. Extending opportunities for experienced faculty to stay engaged beyond a fixed period allows the institution to benefit from these evolving strengths, while enabling faculty to continue making meaningful contributions in roles that leverage their accumulated expertise and insight.

Financial Considerations

The reality is, any decision to retire early is a “net negative” for the balance sheet as you are reducing your capacity to earn income, contribute to savings, and often drawing on savings sooner. That being said, if you are at or nearing financial independence, retirement is an opportunity to trade financial resources for something even more valuable — your time. As discussed above, the FPRP is likely to have some impacts on retirement income, but for many it may be manageable.

A more important consideration is, can you handle the salary reduction during the phased period? As you are not actually retired, you will not be eligible to draw your pension. Additionally, if you are not yet full retirement age for Social Security Benefits (typically 67), continued salary may limit your ability to draw benefits until you are fully retired.

In Summary

The Faculty Phased Retirement Program can offer welcome flexibility and a dignified glide path into retirement. Success depends on aligning your workload, annuitization date, and health insurance timing, subject to securing unit/dean approval. If you’d like a second set of eyes to weigh the trade‑offs and tailor a plan, especially around SURS options, retiree health insurance, and cash‑flow modeling our team is here to help. We’ve helped hundreds of faculty navigate SURS, retiree health insurance, and retirement decisions with clarity and confidence.

Schedule a call for an introductory call to learn more.

Further Reading

Illinois Human Resources. (2025). Faculty Phased Retirement Program. University of Illinois Urbana‑Champaign. https://humanresources.illinois.edu/faculty-phased-retirement-program/

University of Illinois System Human Resource Services. (n.d.). Retirement & Investment Plans. https://www.hr.uillinois.edu/benefits/retirement

State Universities Retirement System. (2025). Retiree Health Insurance and Rates. https://surs.org/benefits/insurance/

State Universities Retirement System. (2025). Retirement Eligibility. https://surs.org/retirement/eligibility/

State Universities Retirement System. (n.d.). Traditional Benefit Package – Guide [PDF]. https://surs.org/wp-content/uploads/Guide-TRD.pdf

Important Disclaimers

This content has not been reviewed by or endorsed by State Universities Retirement Systems - SURS. Bluestem Financial Advisors, LLC, is an independent advisory firm not affiliated with SURS.

How USPS Postmark Changes Could Affect Your Tax Filing and Payment

Late in 2025, the U.S. Postal Service changed procedures around its postmarks. Now, mail will not be postmarked until processed by a regional facility, which could be some time after the date actually dropped off at the mailbox or post office. 

This could have effects on mail-in ballots, but also directly affects tax filings or payments to tax authorities made via mail. Federal tax law, for many decades, has provided that tax returns, filings, or payments received by the IRS after the due date are nevertheless treated as timely if it was postmarked on or before the due date. This applies to individual and business returns, extension requests, refund claims, payments, and petitions filed with the U.S. Tax Court. The Illinois Department of Revenue also follows these rules. 

Thus, a late postmark can cause the filing or payment to be deemed to be late and have real consequences, like denial of refund, penalties, fees etc. 

If you choose to mail your tax filing or payment, here are a couple of options for ensuring a timely filing:

1. Request a manual postmark - post office customers may present a mail piece at a retail counter and request a "manual (local) postmark". This postmark is applied at the time of acceptance, so the date aligns with the date the USPS took possession.

2. Send the item via registered mail or certified mail. These options have costs, but also provide a receipt that can serve as evidence of timely filing. These must be kept by the taxpayer as the USPS does not keep this information for customers. 

It should be noted that the IRS is phasing out accepting tax payments by check. Modern systems offer many opportunities to file and pay various tax filings and payments electronically, including setting up electronic withdrawal from a bank account, or paying via the IRS and state revenue websites (here is the Illinois payment site). The easiest way to not run afoul of deadlines due to these new USPS rules would be to take advantage of those online methods.

Here’s What You Need to Know About the New “Trump” Accounts

What are they?

Trump accounts are a type of IRA for minors which allows for tax-deferred investments.  Basically, a child-focused IRA that’s designed to encourage early savings for retirement.

When are they available?

They can be set up and funded after July 4, 2026.

Who qualifies?

U.S. citizens under age 18 with a valid Social Security number. Parents, guardians, and family can establish these accounts on behalf of the child.

How does one make contributions?

• You will open the account through a custodian which offers them. Examples of custodians likely to offer them would be Charles Schwab, Fidelity, Vanguard, etc. If you are working with a financial advisor, they could assist as well.

• Annual contribution limit: $5,000 per child, to be indexed with inflation.

• The child does NOT need earned income to receive contributions (this is different than an IRA or ROTH IRA).

• Contributions are not deductible, by parents or kids.

• Contributions must be made in taxable year — there is no retroactive ability to contribute to the “prior year” up to the tax return due date like with IRAs and ROTH IRAs.

• Employers may contribute up to $2,500 per year to a Trump account on behalf of an employee’s child without it being treated as income to the employee.

• The government will provide a one-time “seed” amount of $1,000 to Trump accounts for children born between Jan 1, 2025 and Dec 31, 2028. 

How are investments handled?

Investment growth inside the account is tax-deferred until distribution. During the “growth period” (before the account beneficiary turns 18), funds must be invested in certain eligible low-cost index funds or ETFs. Money market funds are not eligible investments.

How do distributions work?

Once the beneficiary reaches age 18, Trump accounts are treated like traditional IRAs for tax purposes. Distributions are generally taxable as income and early withdrawal penalties can apply. Distributions are prohibited until age 18, except for a rollover or the death of the beneficiary.

Most contributions will result in “basis” and can be distributed tax free. This is because no tax deduction is allowed on contributions so these can later be withdrawn without tax.  Government contributions, employer contributions and growth, however, will be taxed. 

How do these accounts compare to a 529 account?

529 accounts would be a preferable form to save for higher education given that distributions, if used for qualified expenses, would not be subject to income tax at all. Trump account distributions, if used for college, would be subject to income tax, even if they could be used penalty-free for college after age 18. 

How do these accounts compare to a UTMA account?

UTMAs do not necessarily grow tax free, which is a disadvantage compared to Trump accounts. During growth, dividends, interest, capital gain distributions, as well as gain from any investment changes would be taxable. However, UTMAs would have capital gain treatment on sale at distribution rather than the ordinary treatment of Trump account income. Depending on the beneficiary’s tax situation this may be preferable.  

UTMAs would also not be subject to penalty if the funds need to be used for purposes like a vehicle purchase or wedding. Distributions from a Trump account for these uses would be subject to tax AND penalties. 

What is Bluestem’s take?

These accounts have merit, and might be recommended for some and not others:

• Anyone with a child born in 2025-2028 should take advantage of the free $1,000 “seed” amount.

• For those with kids and plenty of disposable income, who are already maximizing other tax deferred contributions like 401k, 403b, ROTH IRA, HSA amounts, etc., and are already on track saving for college for their kids (if desired) should consider funding these accounts to their maximum. 

• For those who are not taking advantage of their employer match, not on track for retirement, not on track for college savings, or otherwise short of cash or liquid funds to make contributions should think carefully before directing resources to a Trump account. 

• Trump accounts are a good vehicle to save for a child’s retirement, but saving for college, a home purchase, vehicle purchase, wedding, etc. would best occur with a 529 plan or UTMA. Therefore, which type of account to choose would be driven by the expected usage of the funds.

Tip of the Month: 2026 Retirement Contribution Limits

Once again, January (or late December) is a good time to make sure your retirement contributions are on track to be maximized for the upcoming year, if cash flow allows. These thresholds are higher for 2026 than they were for 2025, so if you were already maximizing them in 2025, an adjustment may be necessary. In addition, there’s a new(er) law that allows those aged 60-63 to contribute an even larger amount. 

The new limits are $24,500 per year or $2,042 per month for those under the age of 50. For those who are over or will achieve the age of 50 during 2026, the limit is $32,500 for the year or $2,708 per month.    

Beginning in 2025, those who turned 60-63 by the end of the year are eligible for an increased “catch up” contribution. This would increase their annual maximum contribution to $35,750, or $2,979 per month. After age 63, the maximum is the $32,500 stated above. 

These limits apply to 401k, 403b, and 457 accounts. Making the adjustment as early in the year as possible, or in late December to be picked up on the first payrolls of January, will help to ensure you will hit the maximum by the end. Your Bluestem meetings where we look at your progress towards the maximum would be several months into the year, and could result in a “late” adjustment to get you on track for the maximum. 

Contact your HR, or payroll provider to make the adjustment. Or, if you are with the University of Illinois, you can make the adjustment at the following links:

403b: https://www.hr.uillinois.edu/benefits/retirement/403b/sra

457: https://www.hr.uillinois.edu/benefits/retirement/457/enroll

IRA and Roth IRA limits are increased for 2026 as well, with the under 50 maximum at $7,500 for the year and the 50 and over maximum at $8,600 for the year.

Tax Planning for Illinois Retirees and Pre-Retirees: Navigating the One Big Beautiful Bill

At Bluestem Financial Advisors, we believe that proactive planning starts with staying informed. Our commitment to clients goes beyond investment advice. We monitor tax and related legislative changes to help you understand what new laws and regulations mean for your financial life. Recently, we had the opportunity to share an overview of the most recent tax bill, the One Big Beautiful Bill Act (OBBA), with members of the State Universities Annuitants Association (SUAA). Here is a summary of what we covered, including key strategies and planning opportunities for retirees and pre-retires.

Overview of Tax Legislation Since 2017

We began with a broad overview of tax law changes since 2017, including the Tax Cuts and Jobs Act (TCJA) and the significant overhauls brought by the SECURE Act. These changes have shaped the retirement landscape, especially regarding how retirement accounts are treated after the owner’s death. The SECURE Act, for example, eliminated the “stretch IRA” for many non-spouse beneficiaries, requiring faster distributions and potentially higher taxes for heirs.

The OBBA: What’s New and What’s Extended

The One Big Beautiful Bill Act (OBBA) primarily extends the lower tax rates and higher standard deductions introduced by the TCJA, with new inflation adjustments. For retirees, the new “enhanced senior deduction” offers an additional $6,000 per person age 65+, though it phases out at higher incomes and is set to expire after 2028. We discussed how these provisions can impact your annual tax bill and why it’s important to review your filing strategy each year.

State and Local Tax (SALT) Deduction – Especially for Illinois Residents

The increased cap up to $40,000 on state and local tax (SALT) deductions can be a game-changer. We highlighted how this opens the door for “bunching” strategies: by timing property tax and charitable payments, you can maximize deductions in alternating years. This is especially relevant in Illinois and other states where property taxes and state income taxes are significant.

Charitable Giving Opportunities

We explored several ways to make your charitable giving more tax-efficient:

• Above-the-line charitable deduction (starting in 2026) for those who don’t itemize.

• Qualified Charitable Distributions (QCDs) from IRAs for those age 70½+, which can reduce taxable income, lower Medicare premiums, and help maintain eligibility for senior deductions.

• Why QCDs remain a powerful tool even as other charitable deduction rules change.

Roth Conversions: Leveraging Lower Tax Brackets

We highlighted how to utilize lower tax brackets before and early in retirement to avoid higher taxes later. By converting traditional retirement assets to Roth IRAs during lower-income years before Social Security and Required Minimum Distributions (RMDs) begin you can reduce future tax burdens and gain more flexibility in retirement income planning.

Social Security: An Overview and Impacts to Retirees

We provided an overview of recent Social Security changes, including the repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These changes mean higher Social Security benefits for many SURS retirees but also create new planning considerations. We cautioned those who receive retroactive payments that could affect their tax bracket or Medicare premiums.

Watch the full webinar for detailed examples and Q&A:

At Bluestem, we see a tremendous opportunity to integrate tax planning into our retirement and planning strategies. By staying ahead of legislative changes and thoughtfully coordinating your tax, investment, and income decisions, we help you maximize your resources and adapt your plan as your life evolves.

If you’re interested in a more integrated approach to tax and retirement planning, we invite you to schedule a conversation with our team. Let’s work together to build a strategy that’s as dynamic as your life.

Shaping the Future of Financial Planning: A Resident's Perspective

Last year, Bluestem published a blog highlighting our Financial Planning Residency Program, a two-year opportunity designed to bridge the gap between graduation and becoming a client-ready financial advisor. As a current resident, I’d like to share what the experience has meant to me personally.

Over the past year, the residency has allowed me to grow in ways that go far beyond technical knowledge. I have built financial plans, participated in client meetings, and learned the inner workings of firm operations, all while earning the experience hours required for the CFP® marks. I even passed the CFP® exam during tax season, an achievement made possible by the program’s structure and support.

The residency also encourages creativity and leadership. One highlight for me was leading a project to research and integrate AI notetaking into client meetings, improving both training and efficiency. Opportunities like this, where you can take ownership and make an impact, are one of the many benefits of working in a small, collaborative firm.

What truly sets Bluestem’s residency apart is the intentional mentorship and structured development. The environment is supportive and team-oriented, with every member invested in your success. By the end of two years, residents ideally graduate with their CFP® marks, meaningful client experience, and the confidence to step into an advanced advisor role.

For students or recent graduates, this program is more than a first job. It is a launching pad for a rewarding career in financial planning. If you are looking for a place to learn, grow, and make a lasting impact, Bluestem’s Financial Planning Residency is worth exploring.

Tip of the Month: Requesting Your Free Credit Report

It’s good practice to regularly review your credit report. Not only does it allow you to monitor your credit activity and notice any signs of fraud before it becomes a larger problem, but it will also keep you aware of your broader financial picture when it comes to the varied types of credit you are using. And, if you notice any errors in your report, you can take action to report them, so you are not negatively impacted by incorrect information.

How do I do it?

There are three main credit reporting agencies: Equifax, Experian, and TransUnion. They’ve joined forces on one website (https://www.annualcreditreport.com/) where you can put in one request and get a report from each agency. Despite the name of the website, the law has changed, and you can request a credit report once a week for free. You probably have better things to do than to do this on a weekly basis, and that amount of frequency probably isn’t necessary. However, a once-a-year review of your credit report is very reasonable. You also may want to request a report prior to purchasing a home or a car with credit.

What information will it give me?

Each of the three credit reporting agencies offers an example of what your credit report might show. They tend to contain these pieces of information:

• Personal information (name, phone, current and previous addresses, date of birth, social security number)

• Credit account information, including the type of account, when it was opened, the original balance, the name of the loan company, and payment history

• Collections – past due accounts that have been taken over by a collections agency

• Bankruptcies

• Inquiries – when an entity requests a credit report. A hard inquiry indicates a lender or creditor has reviewed your report after you’ve applied for a credit card, mortgage, or auto loan. A soft inquiry is typically when you are checking your report, or when a current creditor is reviewing your credit.

If you notice an error in reporting, you can contact the reporting agency to dispute it. The Consumer Financial Protection Bureau offers guidance on how to do this.

What if it appears there’s been fraudulent activity?

Last year we shared a Tip of the Month on how to deal with possible identity theft or a data breach. You’ll find helpful information there on how to contact the credit agencies and put a freeze on your account.

References:

https://www.usa.gov/credit-reports

https://www.transunion.com/how-to-read-your-credit-report

https://www.experian.com/blogs/ask-experian/credit-education/report-basics/understanding-your-experian-credit-report/

https://www.equifax.com/personal/education/credit/report/articles/-/learn/understanding-credit-report-history/

https://www.myfico.com/credit-education/whats-in-my-credit-report