OUR APPROACH
OUR APPROACH
Insights
Market Highlights
Looking back on 2025, the market delivered strong gains despite some volatility. The S&P 500 rose about 16%, the Nasdaq nearly 20%, and the Dow Jones around 14%; this marked the third straight year of double-digit returns. Key events included tariff announcements in April that briefly erased trillions in value, including the largest one day drop since COVID-19, there was a prolonged government shutdown in October that introduced uncertainty and prompted a modest market pullback, the Federal Reserve made 3 rate cuts over the course of the year bringing the federal funds rate down from roughly 4.25-4.50% to 3.50-3.75%, and all the while AI enthusiasm fueled continued gains in the tech and communication services sectors.
January 8, 2026
Every month we highlight best and worst performing asset classes. This month, we take a look back over their performances, not only over the past year, but over the last 10 years. The Periodic Table of Returns ranks asset class performance year by year. It demonstrates that the leading asset class one year, can be worst the next and vice versa; for example Emerging-Market Stocks in 2017 and 2018. This dynamic underscores the importance of good diversification and the fruitlessness of trying to time to the market or chase returns. The Table reinforces our long-term investment principles.
Reminders
January 1 marked the start of the General Enrollment Period for Medicare Part A and Part B, it was also the start of the Open Enrollment Period of Medicare Advantage. Fourth Quarter estimated tax payments are due January 15.
We wanted to point out that the various retirement account contribution limits and catch up amounts have increased for 2026. Please refer to the chart below and let us know if you would like to make any adjustments to your periodic deposits to increase or max out your annual contributions. (Please keep in mind contributions and limits are subject to income phaseouts.)
Thoughts from the Team
The start of the New Year is the perfect time to review your financial plans and make sure everything is on track. Please let us know if you would like us to complete a financial plan with you, update your existing plan, or review a financial plan that you have received elsewhere. During any annual financial review, we recommend taking the following steps:
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Review your account beneficiaries
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Review your will
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Evaluate your automatic deposits into retirement accounts—can you contribute more?
Are you or a loved one reaching a milestone age this year? Here are some key ages and their significance to your financial plan:
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Age 50: Eligible to make catch up contributions to retirement accounts.
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Ages 60–63: Eligible for increased catch up contributions to certain retirement accounts.
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Age 55: Eligible to make catch up contributions to your Health Savings Account (HSA).
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Age 64 + 9 months: Start of your initial enrollment period for Medicare.
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Age 65: Eligible for Medicare coverage.
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Age 70: If you’ve delayed Social Security, you’ve reached your maximum benefit; it is time to file your application.
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Age 73: You may now be subject to Required Minimum Distributions (RMDs) from your retirement accounts.
If you are reaching one of these milestones, we would love to meet with you to discuss how they may impact you and how you can you make the most of any financial opportunities.
Happy New Year
Lastly, legendary investor Warren Buffett retired as CEO of Berkshire Hathaway the end of 2025 and as we begin 2026, we wanted to share with you all one of our favorite quotes from his famous annual letters to shareholders.
"Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it's hard to beat The Golden Rule as a guide to behavior".
We wish you a happy, healthy and prosperous New Year!
Be Well,
Disclaimers
The information contained herein, including summary/prices/quotes/statistics have been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Any comparison to a benchmark is for comparative purposes only and actual account composition may differ. Investments cannot be made directly into an index. Past performance is not indicative of future results. Past results are not indicative of future returns. This material is provided for informational purposes only and is not intended as and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. This material does not intend to address the financial objectives, situation or specific needs of any individual investor.
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