Q2 Letter to Clients

Where Things Stand

The first quarter of 2026 tested the patience of even the most disciplined investors. A combination of rising energy prices, geopolitical uncertainty, and a pullback in the large technology companies that led markets higher in recent years produced the worst quarterly performance for U.S. stocks since 2022. The S&P 500 declined approximately 4.6% for the quarter, the Nasdaq Composite fell roughly 7.1%, and the Dow Jones Industrial Average dropped in similar fashion. Meanwhile, the Russell 2000 index of smaller domestic companies held up notably better, finishing the quarter roughly flat. At the sector level, energy was the clear standout, posting its best quarterly gain on record as oil prices surged. These numbers are a useful reminder that diversification across asset classes, market capitalizations, and sectors continues to serve long-term investors well, even when individual parts of the market come under pressure.  It is very difficult to capture the value in diversification if you are holding individual stocks.

Much of this quarter’s volatility was driven by the conflict in the Middle East. The war in Iran and disruption around the Strait of Hormuz sent oil prices sharply higher, contributing to renewed inflation concerns and creating uncertainty across global markets. Brent crude posted its largest monthly percentage increase on record during March, and the ripple effects were felt well beyond the energy sector. As the quarter drew to a close, reports emerged suggesting that both U.S. and Iranian leadership may be open to ending hostilities, and markets rallied meaningfully on the final trading day of March. Whether that optimism translates into a lasting resolution remains to be seen. No one knows with confidence how current geopolitical conflicts or trade disruptions will ultimately play out, and reacting emotionally to that uncertainty is rarely helpful for long-term investors. For a useful overview of how Q1 unfolded across the major indexes, Reuters published a helpful summary via U.S. News & World Report.

Why Staying the Course Matters

Markets are forward-looking. By the time a recession, policy shift, or geopolitical event becomes front-page news, much of that information is often already reflected in prices. This is one reason why making portfolio changes in response to headlines can be counterproductive. A diversified portfolio is designed with uncertainty in mind. Consider that the S&P 500 has now posted a negative first quarter in back-to-back years, yet history shows that a down first quarter has been followed by a positive full year far more often than not. Markets have historically moved through wars, recessions, political change, and crises while continuing to reward disciplined long-term investors over time. There is no proven way to consistently time the market, and missing even brief periods of strong performance can meaningfully affect long-term outcomes. For investors interested in the historical context around negative first quarters and what tends to follow, Motley Fool published a thoughtful analysis at fool.com.

For that reason, we will not adjust portfolios in response to market whims or short-term movements. Short-term declines do not necessarily lead to down years, and many years with significant intrayear drops have still finished with positive calendar-year returns. In fact, one of the most notable themes of Q1 was the divergence in performance across different parts of the market. While large-cap technology names bore the brunt of the selling, small-cap domestic companies in the Russell 2000 were largely insulated from the geopolitical disruption, and the energy sector delivered exceptional returns. This kind of rotation is exactly what a well-diversified portfolio is built to capture. Staying invested and focused on the long term helps ensure you are in position to benefit when markets recover and leadership shifts.

Planning Opportunities

Market turmoil can still serve a useful purpose if it prompts a review of the things that actually matter. Short-term market moves are not, by themselves, a reason to change a well-constructed long-term allocation. But when your life changes, it may be appropriate to revisit your financial plan. Retirement timing, spending needs, charitable goals, liquidity needs, estate intentions, and tolerance for risk can all justify thoughtful updates. If your plan still aligns with your values, goals, and time horizon, staying the course is often the most appropriate response.

Periods like this can also create planning opportunities worth evaluating in the context of your broader strategy. Depending on your circumstances, volatility may create room for disciplined rebalancing, tax-loss harvesting, cash-flow review, or future Roth conversion planning.

What Your Plan Is Really For

Most importantly, we would encourage you to focus on living your great life right now. Your financial plan is not meant to compete with your life; it is meant to support it. Even in periods of turmoil, your plan should prepare for important transitions, care for the people you love, and continue making progress toward the life you want to live. That may mean spending meaningful time with family, protecting time for travel or rest, supporting a cause that matters to you, or simply being more present in your day-to-day life. The headlines matter, but they are not the whole story. A well-built plan allows you to keep perspective and remember what your money is for in the first place.

As always, we are here to help you think through decisions in the context of your long-term plan rather than the emotion of the moment. If anything in your life has changed, or if you would like to revisit your plan together, please reach out.

The 3 Biggest Tax Questions We’re Hearing Right Now

Every year brings its share of tax changes, but 2026 is different. The One Big Beautiful Bill Act, signed into law on July 4, 2025, made sweeping updates to the federal tax code — some permanent, some temporary, and nearly all of them generating questions from the families and individuals we work with. Rather than try to cover everything at once, we wanted to focus on the three topics that have come up most often in recent conversations and break them down in plain language.

“How Does the New SALT Deduction Cap Affect Me?”

If you live in a state with meaningful income or property taxes, you’ve probably felt the sting of the $10,000 cap on the state and local tax (SALT) deduction that’s been in place since 2018. Good news: the new law raises that cap to $40,000, effective for the 2025 tax year. For 2026, it ticks up to $40,400 and will continue increasing by one percent annually through 2029.

For a household earning $400,000 and paying $30,000 in combined state income and property taxes, this is a significant change. Under the old rules, only $10,000 of that was deductible. Now, the full $30,000 qualifies. That’s a real reduction in taxable income.

However, the expanded cap comes with an income-based phaseout. If your modified adjusted gross income exceeds $500,000 (or $250,000 for married filing separately), the cap is reduced by 30 cents for every dollar above that threshold. By the time income reaches roughly $600,000, the deduction phases back down to $10,000. So a couple earning $550,000 would see their maximum SALT deduction reduced to about $25,000 — still much better than $10,000, but not the full benefit.

A few things worth noting. First, if you’ve been taking the standard deduction because the old SALT cap made itemizing less worthwhile, it’s time to run the numbers again. Second, business owners using pass-through entity tax elections can still deduct state taxes at the entity level — the new law didn’t restrict that workaround. And third, this expansion is temporary. The cap reverts to $10,000 in 2030, which means there’s a planning window worth being intentional about.

“With the Estate Tax Exemption at $15 Million, Do I Still Need an Estate Plan?”

For years, families were on edge about the federal estate tax exemption. Under the 2017 Tax Cuts and Jobs Act, the exemption had been roughly doubled to about $14 million per person, but it was set to drop back to around $7 million at the end of 2025. The new law resolved that uncertainty by permanently raising the exemption to $15 million per individual — $30 million for married couples — effective January 1, 2026. Beginning in 2027, it will be indexed for inflation, and unlike the prior law, there’s no sunset provision.

So does that mean estate planning is no longer necessary? Not at all. The federal exemption is only one piece of the puzzle. Eighteen states plus the District of Columbia impose their own estate or inheritance taxes, often with much lower thresholds — in some cases as low as $1 million. A couple with $20 million in assets might owe nothing federally but could face a significant state tax bill depending on where they live.

Beyond taxes, a good estate plan addresses guardianship for minor children, powers of attorney, the orderly transfer of business interests, and probate avoidance. These things matter regardless of exemption levels.

The higher exemption also creates interesting planning opportunities. If your estate is comfortably below $15 million, the focus may shift from estate tax reduction toward income tax efficiency. Holding appreciated assets until death to take advantage of the step-up in basis, for example, could eliminate capital gains taxes on decades of growth. On the other hand, families with larger estates should continue using trusts and other transfer strategies, because the 40 percent federal estate tax rate on amounts above the exemption hasn’t changed.

“What Are All These New Deductions I Keep Hearing About?”

The new law introduced several targeted deductions that are genuinely new to the tax code. Here are the ones generating the most conversation.

Tips. Workers who receive tips can now deduct up to $25,000 in tip income from their taxable earnings. This applies to anyone in a tipped occupation — servers, hairstylists, rideshare drivers, and more — and it’s available whether you itemize or take the standard deduction. The deduction phases out at higher income levels and is temporary, running through the 2028 tax year.

Overtime. Overtime wages now qualify for a similar above-the-line deduction. If you earn time-and-a-half or double-time under the Fair Labor Standards Act, a portion of that income may be deductible. This is aimed at hourly and non-exempt workers, and it requires that your employer accurately report overtime pay on your W-2.

Auto loan interest. Perhaps the most surprising new break: interest paid on auto loans is now deductible up to $10,000 per year. This applies to personal vehicles, not just business ones. The deduction phases out starting at $100,000 of adjusted gross income for single filers ($200,000 for joint filers) and is fully eliminated at $150,000 ($250,000 for joint filers). Your lender is required to provide a statement of interest paid by January 31.

Senior deduction. Taxpayers 65 and older can claim a new deduction of up to $6,000 per qualifying individual, or $12,000 for married couples filing jointly where both spouses qualify. This sits on top of the existing standard deduction and the additional standard deduction for seniors. It phases out at six percent of modified adjusted gross income above $75,000 for single filers ($150,000 for joint filers) and is available for tax years 2025 through 2028.

Higher standard deduction. Finally, the standard deduction itself increased to $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household for the 2026 tax year. These higher amounts are now permanent.

Putting It All Together

The common thread across all three of these topics is that the tax landscape has shifted in ways that create real opportunities — but also real complexity. Some provisions are permanent, others expire in a few years, and many come with income-based phaseouts that can change the math quickly depending on your situation.

Our advice? Don’t assume last year’s strategy still works. Whether it’s revisiting whether to itemize, rethinking your estate plan, or making sure you’re capturing every new deduction available to you, a fresh look at your tax picture is well worth the effort. As always, we’re here to help you think through it.

This article is provided for educational purposes only and does not constitute tax, legal, or investment advice. Tax laws are complex and individual circumstances vary. Please consult with a qualified tax professional or your financial advisor before making any decisions based on the information presented here.

New Tax Season, New Tax Code: What Changed In 2026 – And Why It Matters

As we approach another tax filing season, it’s a good time to take stock of the most meaningful changes that affect U.S. taxpayers for the 2026 tax year (returns you’ll file in 2027). This year’s filing period reflects not just inflation adjustments but also significant provisions of the One, Big, Beautiful Bill Act (OBBBA), the major tax law signed in 2025 that locked in and updated several key tax provisions. (IRS)

Understanding these changes can help you plan earlier in the year — not just react at tax time.

Key 2026 Tax Changes at a Glance

Below are three major areas where taxpayers will see meaningful adjustments for the 2026 tax year:

1) Updated Federal Income Tax Brackets

The IRS annually adjusts tax brackets for inflation. For 2026, the seven familiar federal income tax brackets remain (10%, 12%, 22%, 24%, 32%, 35%, 37%), but the income thresholds have shifted upward, helping many taxpayers avoid “bracket creep.”

2026 Federal Income Tax Brackets (Taxable Income) (OneDigital)

Tax Rate

Single Filers

Married Filing Jointly

10%

Up to $12,400

Up to $24,800

12%

$12,401–$50,400

$24,801–$100,800

22%

$50,401–$105,700

$100,801–$211,400

24%

$105,701–$201,775

$211,401–$403,550

32%

$201,776–$256,225

$403,551–$512,450

35%

$256,226–$640,600

$512,451–$768,700

37%

Over $640,600

Over $768,700

These adjustments don’t lower rates, but they mean you can earn more before moving into a higher bracket. That matters for retirement planning, RMD timing, Social Security taxation, and portfolio withdrawals.

2) Standard Deduction and Senior Deduction Updates

Along with bracket changes, the standard deduction rises for most taxpayers. For 2026:

  • $16,100 for single filers
  • $32,200 for married couples filing jointly
  • $24,150 for heads of households (NerdWallet)

For many taxpayers, these deduction increases reduce taxable income before rates are even applied.

Additionally, OBBBA introduced a new senior deduction lasting through 2028: taxpayers age 65 or older may be eligible for a $6,000 deduction ($12,000 if both spouses qualify), regardless of whether they itemize or take the standard deduction. (AARP)

3) Expanded Credits and Other Key Changes

The 2026 tax year also reflects broader changes that can impact refunds or tax liabilities:

Child Tax Credit: Indexed for inflation and slightly increased under the OBBBA for qualifying children. (IRS)

Itemized Deduction Changes: The bill significantly expanded the cap on state and local tax (SALT) deductions for many filers, although limits and phaseouts still apply.

Charitable Deductions: Non-itemizers can now deduct cash donations up to $1,000 (single) or $2,000 (joint) – a change that broadens tax benefits to more filers.

Preparation and Filing Notes: The IRS has updated forms, encouraged direct deposit for refunds, and provided resources and checklists for this filing season. (IRS)

Why This Matters for Your Planning

These tax changes are not just numbers on a chart – they affect when and how you plan income, retirement distributions, Social Security strategies, Roth conversions, and charitable giving.

Some actionable reminders for 2026 and beyond:

  • Review whether standard vs itemized deductions benefit you (especially with SALT changes).
  • Consider the timing of income that could push you into higher brackets.
  • Coordinate retirement distributions with Social Security claiming to manage taxable income.
  • Use expanded credits and deductions to your advantage throughout the year, not just at filing time.

Taxes are a major lifetime expense – often bigger than market returns or fees. Planning with the current tax code in mind helps you make decisions that support the life you want to live.

 

Finding Meaning In Retirement: When The Calendar Is Full But The Soul Isn’t

For many people, retirement planning starts with a number.

“How much do I need?”
“Will my money last?”
“Can I afford to stop working?”

Those questions matter. But after years of walking alongside retirees, we’ve learned something important: financial security alone does not guarantee fulfillment.

In fact, one of the most common challenges retirees face has very little to do with money. It’s the quieter, often unexpected loss of purpose, identity, and connection that can surface once work is no longer the organizing force of daily life.

The Transition No One Warns You About

Work does more than generate income. It provides structure, responsibility, and a sense of contribution. It answers questions we don’t always realize we’re asking:

Who needs me today?
What am I accountable for?
Where do I belong?

When work ends, freedom arrives – and for many, so does a subtle sense of disorientation.

Research supports this experience. Multiple studies show that retirement can lead to a measurable decline in a person’s sense of purpose if it isn’t replaced intentionally. This highlights the guidance we give to clients years in advance of retirement: make sure that you are retiring toward something and not just away from something.

One large review published in The Gerontologist highlights how meaning, not activity alone, plays a central role in how well individuals adjust to retirement. In other words, staying busy is not the same as feeling fulfilled.

Activity Is Not the Same as Meaning

We often meet retirees who are financially secure, healthy, and “doing all the right things” – traveling, golfing, volunteering, and staying active. Yet something still feels missing.

That’s because meaning tends to come from deeper sources.  These can include:

  • Contribution – being genuinely useful to others
  • Connection – relationships that go beyond surface-level social interaction…make note, fitting in is NOT the same thing as true authentic connection
  • Growth – continuing to learn, stretch, and engage with life

Psychology research consistently shows that retirees who maintain a strong sense of purpose experience better mental health, greater life satisfaction, and even improved physical outcomes.

Designing Retirement With Intention

The most fulfilling retirements we see are not accidental. They are designed with the same thoughtfulness people once applied to their careers.

That might look like:

  • Remaining involved in a part-time, advisory, or mentoring role
  • Sharing hard-earned wisdom with younger professionals or family members
  • Committing to a cause, board, or organization where presence truly matters
  • Creating weekly rhythm and responsibility, not just open time
  • Pursuing challenge and adventure, not just comfort

Research on “meaning-making” in retirement suggests that individuals who actively redefine who they are after work – rather than simply replacing work with leisure – experience a far healthier transition. The key question is not “How do I stay busy?”
It’s “Who do I want to be useful to in this season of life?”

Planning for a Meaningful Life, Not Just a Long One

Good financial planning creates margin. Great planning helps you use that margin well.

When we talk with clients about retirement, we often ask non-traditional questions:

  • What will give your days structure?
  • Who will you see regularly?
  • Where will you feel needed?
  • What are you still growing toward?

Organizations that focus on thriving in retirement, not just retiring, emphasize the same themes: purpose, connection, and intentional transition.  Money supports those answers – but it cannot replace them.

If retirement is approaching, or already here, it’s worth stepping back and asking not just “Can I retire?” but “What am I retiring to?”

That question matters more than the number if you truly want to continue to live your great life. In fact, retirement done well starts looking much more like exchanging one work purpose for a different kind of purpose. Retirement is not the Great Checkout if you want to thrive. So let’s all agree to stop using retirement as a goal to ‘be done,’ and start viewing it as financial freedom to pursue the things that make us feel most alive (Contribution, Connection, and Growth)! 

Q1 Letter to Clients

As we close the fourth quarter of 2025 and step into a new year, I want to take a moment to reflect – not just on markets and portfolios, but on the purpose behind the plan itself.

Quarterly statements naturally draw attention to short-term market movements. They are part of the story, but never the whole story. At Ridgeline, our work together has always been grounded in a longer view: helping thoughtful, capable people design financial lives that support not only security, but meaningful experiences along the way.

Many of you I would describe as Everyday Explorers – people who take responsibility seriously, but who also want to remain curious, engaged, and fully present in your lives. Financial planning, done well, should make room for both.

The Market Backdrop: Q4 2025

The final quarter of 2025 reminded investors of a familiar truth: markets are dynamic, unpredictable, and often uncomfortable in the short term.

U.S. equities experienced continued volatility as investors weighed inflation data, evolving Federal Reserve policy, geopolitical uncertainty, and questions around economic growth. Leadership rotated within the market, sentiment shifted quickly, and headlines offered no shortage of reasons to feel either optimistic or uneasy depending on the day.

This kind of environment can test confidence – especially if investing is viewed as a quarterly scorecard. But volatility is not an anomaly. It is a feature of markets, not a failure of them.  Uncertainty is not a flaw in the system – it is the system.  The real question is not whether volatility exists, but whether your plan is built to withstand it.

Why We Don’t Chase Returns or Predictions

One of the most important principles I want to reinforce – especially during uncertain periods – is that investment decisions should never be about chasing returns or predicting where markets will go next.

No one can consistently forecast short-term market outcomes. Acting as though we can often lead to unnecessary stress, poor timing decisions, and behavior that undermines long-term success.

Instead, our planning framework begins with a different foundation: ensuring that your future liabilities are matched or offset with safe, liquid resources.

When near-term spending needs, lifestyle costs, and known future obligations are covered by appropriate reserves and conservative assets, the long-term investment portfolio can do its job without interference. Growth assets are then free to compound over time, through inevitable cycles of optimism and uncertainty.

When this structure is in place, year-to-year market movements become background noise rather than a source of anxiety.

Planning With Intention – and With Life in Mind

One of the themes I continue to emphasize with clients is that planning should support living now, not just preparing for later.

For Everyday Explorers, that often means intentionally building room for travel, time away, outdoor pursuits, family experiences, and personal challenges that make life richer and more memorable. These experiences don’t happen accidentally. They require planning, margin, and clarity.

This is why our conversations extend beyond investments. Cash flow, liquidity, tax strategy, and risk management all play a role in creating the flexibility to say yes to meaningful experiences when the opportunity arises.

Tax and Planning Updates

As we move into 2026, several changes in the tax and legislative landscape are worth noting. Recent federal budget and benefits legislation is beginning to affect real-world planning decisions, including:

  • Adjustments to retirement contribution limits and age-based catch-up provisions
  • Ongoing evolution of required minimum distribution rules and inherited account timelines
  • Shifting income thresholds that affect deductions, credits, and phase-outs
  • The approaching sunset of certain prior tax provisions, increasing the importance of multi-year planning

None of these changes require reactive decisions. They do, however, reinforce the value of proactive coordination – aligning tax strategy, investment structure, and lifestyle goals well before deadlines appear.

Staying Grounded in What We Can Control

Market volatility tends to pull attention toward what we cannot control: headlines, forecasts, and short-term performance.

Your plan, however, is built around what is controllable:

  • Spending and savings decisions
  • Liquidity for known obligations
  • Asset allocation aligned with time horizons
  • Risk exposure that reflects your goals and temperament
  • A disciplined, long-term approach

When these elements are aligned, the plan does not rely on perfect market conditions to succeed. It relies on preparation, patience, and perspective.

Looking Ahead

As we enter the new year, my commitment to you remains unchanged. I will continue to approach planning through the lens of your life, not quarterly market noise. We will continue to design plans that prioritize resilience over prediction and flexibility over optimization.

Most importantly, we will continue to use money as it was intended to be used: as a tool that supports security, opportunity, and a life well lived along the way.

Thank you for your trust and partnership. I look forward to our upcoming conversations and to navigating the road ahead together.

Planning 2026 with intention: 10 financial and life considerations for the year ahead

The start of a new year naturally invites planning. But for most people, planning quickly turns into optimization – more efficiency, better returns, tighter projections.

The more meaningful work often starts earlier than that.

Before adjusting numbers, it’s worth stepping back to ask whether your financial life is aligned with the life you want to live. As we look ahead to 2026, with several new planning rules and legislative changes becoming active under the OBBBA framework, this is an ideal moment to reset both direction and strategy.

As a kid of the ‘90’s and a David Letterman fan, I always waited for the part of the show when he revealed his (sometimes crazy, but almost always funny) Top 10 List.  Here is my attempt and a nod to Mr. Letterman with 10 financial and life planning considerations worth reviewing as you prepare for the year ahead, with a particular emphasis on building margin, clarity, and adventure into 2026.

1. Define What You Want 2026 to Feel Like

Before reviewing accounts or projections, clarify the experience you want the year to deliver.

Do you want 2026 to feel spacious or packed? Grounded or mobile? Predictable or exploratory?

Financial plans are most effective when they support a clearly defined life vision. Without that anchor, even strong financial results can feel disconnected.

2. Plan Adventure First, Not Last

Adventure is often treated as optional – something to squeeze in if time and money allow.

In practice, that usually means it doesn’t happen.

Whether adventure for you means extended travel, meaningful family trips, endurance events, or simply more time outdoors, plan it intentionally. Block the time on the calendar. Estimate the cost. Create a dedicated savings bucket.

When adventure is designed into the plan, money becomes an enabler rather than a gatekeeper.

3. Understand What’s Changing Under the OBBBA

Several provisions tied to recent federal budget and benefits legislation are now becoming relevant for 2026 planning. While the specifics vary by household, common planning areas affected include retirement contribution limits, including updated catch-up provisions for certain age ranges; required minimum distribution rules and beneficiary timelines impacting inherited retirement accounts; income thresholds for tax credits and deductions, with tighter phase-outs at higher income levels; and sunsetting provisions from earlier tax law, increasing the importance of proactive, multi-year tax planning.

The key takeaway is that understanding these changes early creates flexibility. Waiting until year-end often removes good options.

4. Revisit Your “Enough” Number

As income and assets grow, old targets often linger long after they stop serving your life.

Revisit what level of income actually supports your desired lifestyle, how much work is enough, and which trade-offs are no longer worth it.

Clarifying “enough” is often the most powerful financial decision you can make.

5. Align Cash Flow With Experience, Not Habit

Instead of asking where to cut spending, ask where your money is working well for you.

Which expenses consistently add meaning or enjoyment? Which ones feel automatic or outdated?

Redirecting cash flow toward experiences, travel, and flexibility often improves quality of life without increasing overall spending.

6. Strengthen the Safety Net

Adventure is easier to pursue when the foundation is solid.

The new year is a good time to review emergency reserves, insurance coverage, estate documents, and beneficiary designations.

These items rarely feel urgent – until suddenly they are. Proactive review reduces stress and creates confidence.

7. Simplify Where Complexity Has Crept In

Over time, financial lives naturally become more complex.

Multiple accounts serving similar purposes, legacy strategies that no longer apply, and complexity that adds confusion without value can quietly accumulate.

Simplification improves clarity, reduces friction, and makes decision-making easier when life changes quickly.

8. Use Tax Planning to Support Lifestyle Decisions

With updated thresholds and evolving rules, tax planning for 2026 should align with life choices.

This may include timing income around travel or sabbaticals, evaluating Roth strategies during lower-income years, or coordinating charitable giving with tax efficiency.

The goal is not minimizing tax in isolation, but ensuring tax decisions support the life you want to live.

9. Decide What to Stop Doing

Borrowing from the annual review approach popularized by Tim Ferriss, one of the most powerful planning exercises is deciding what to stop.

What commitments, habits, or financial behaviors create stress without meaning, consume time without return, or reflect an outdated version of you?

Stopping often creates more freedom than starting something new.

10. Build Margin Into the Plan

Finally, leave room.

Margin in your calendar allows spontaneity. Margin in your cash flow absorbs surprises. Margin in expectations builds resilience.

A plan with no margin may look efficient, but it is fragile. A plan with margin can flex and support opportunity when it appears.

Final Thought

Planning for 2026 isn’t about predicting every outcome. It’s about creating a framework strong enough to support responsibility and exploration.

When financial planning is aligned with experience, when adventure is treated as essential rather than optional, and when decisions are made intentionally rather than reactively, money becomes what it was always meant to be – a tool in service of a well-lived life.

The top 8 financial items to review before the end of the year

As the year draws to a close, many people feel an instinct to wrap things up. It’s a natural moment to pause, take inventory, and make sure nothing important is left undone.

In financial planning, year-end reviews aren’t about scrambling or chasing last-minute tactics. Done well, they’re about clarity – confirming that your financial decisions still align with the life you’re building.

Here are the most important areas worth revisiting before the calendar turns.

  1. Taxes: Reducing Regret, Not Just the Bill

    Year-end tax planning isn’t about perfection – it’s about intention. This is the time to review realized gains and losses, assess whether tax-loss harvesting makes sense, and confirm that income timing aligns with your broader strategy. For many families, charitable giving also plays a role here – not as a tax trick, but as a thoughtful extension of their values.

  2. Required Minimum Distributions (RMDs)

    For retirees and those nearing retirement, RMDs deserve careful attention. Confirming distributions are made on time, in the correct amount, and from the appropriate accounts is critical. It’s also worth reviewing how RMDs integrate with your overall cash-flow plan. This is ideally done in the first half of the year, but if you haven’t gotten to it yet, do not delay. The penalty for missing your RMD is significant!

  3. Charitable Giving with Purpose

    Year-end giving often happens quickly. A pause can make it more meaningful. Review how and where you give, and whether you’re giving still reflects what matters most to you. Going back to your RMD’s, if you are over 70.5, you can consider using a Qualified Charitable Distribution (QCD) from your IRA to fund those giving goals!

  4. Portfolio Alignment and Risk Exposure

    Markets have a way of feeling louder in December. Year-end is a natural time to rebalance, reassess concentration, and confirm that your portfolio still supports your long-term plan. Have you set aside enough funds in safe cash and short-term bonds to match several years’ worth of coming expenses? If you’re not sure, we should talk.

  5. Estate Planning and Beneficiary Reviews

    Time with family has a way of surfacing important questions. Review beneficiary designations, trustee and executor choices, and guardianship decisions if applicable. Your beneficiary designations on retirement accounts, insurance policies, etc. are legal agreements between you and the financial institution. This means that what ever is on file will trump what is stated in your will, so make sure they line up!

  6. Retirement Readiness Beyond the Numbers

    For those approaching retirement, year-end reflection often brings deeper questions. Financial readiness and emotional readiness don’t always arrive at the same time. Both deserve attention. I’ve seen the emotional transition into retirement impact clients much more significantly than the financial transition. Make sure you have spent time preparing yourself for both.  If you are only focused on what you are retiring away from and haven’t spent any time thinking about what you want to retire towards, then you’re not ready.

  7. Simplification and Organization

    Many people enter a new year craving less complexity. Consolidating accounts and reducing unnecessary financial clutter can create a surprising sense of relief. Everyone has a financial ‘junk drawer’, where things accumulate over the years, but have no rhyme or reason or coordination. Spend time emptying out the junk drawer to assess what you have and then be intentional about what you keep and what you get rid of.  Does it serve you anymore? 

  8. Family Support and Legacy Planning

    Supporting adult children or aging parents requires balance. These decisions are rarely about math alone – they’re about boundaries and stewardship. I have noticed that there is no magic formula or one-size-fits-all approach. Every family dynamic is different and requires a thoughtful, intentional approach to what is best for everyone.

Closing the Year Well

A thoughtful year-end review isn’t about checking boxes. It’s about asking:
Does our financial plan still serve the life we want to live?  If it doesn’t or you’re not sure, give us a call….we’re here to help.

3 financial scams happening right now (and how to outsmart them)

I have a very high skepticism about any phone call I receive and almost all emails. This hypervigilance is from years of training and preparation about how the bad guys are trying to take advantage, not just of the vulnerable, but of everyone. And even with that defensive stance, they still got me. It is embarrassing to admit. I will add more detail to the story at a different time but hopefully, this reminds us that we need to always keep our guards up. 

Scammers have always evolved with technology, but the rise of artificial intelligence has supercharged their reach, realism, and results. Today’s fraudsters don’t just send suspicious emails or fake sweepstakes – they impersonate your loved ones, hijack legitimate business processes, and build entire fake investment platforms complete with chat support and real-time dashboards. The goal is the same – get your money – but the methods are more convincing than ever. Here are three of the top financial scams trending right now, how they work, and the signs that something’s not right.

1. AI-powered impersonation scams: The “it sounded just like them” con

The setup: You get a call from your spouse, your boss, or your bank’s fraud department. The voice sounds perfect. The number matches your contacts. The message is urgent – “We detected suspicious activity” or “I need help right now.”  In reality, scammers have cloned a voice using a few seconds of audio (often pulled from social media or YouTube) and spoofed the caller ID. Once you’re hooked, they’ll push you to move funds to a “safe account,” share one-time passcodes, or install “security” software that gives them control.

Why it’s worse now: Voice-cloning AI and deepfake tools are cheap, convincing, and widely available. The Federal Communications Commission recently banned AI-generated robocalls, but enforcement is slow, and overseas scammers don’t care. These fake voices can fool even the most cautious listener.

Red flags:

  • Requests for secrecy or speed: “Don’t hang up or your account will be frozen.”
  • Urgent money moves or code-sharing requests.
  • Claims that funds must be “moved to safety.”

Protect yourself:

  • Create a family or team “safe word” for emergencies.
  • Never act on an inbound call – hang up and call the known number yourself.
  • Use strong, app-based multi-factor authentication.
  • If it feels urgent and secret, slow it down.
2. “Pig butchering” investment scams: Fake profits, real losses

The setup: You meet someone online – through social media, dating apps, or friendly chat forums. They build trust over time, then casually introduce an investment opportunity. The platform looks professional, and when you deposit a small amount, you can even withdraw “profits.” That’s how they earn your confidence. Soon you’re encouraged to invest more for “VIP” access or higher yields. Then, when you try to withdraw again, you hit “verification” fees, tax holds, or sudden silence. The site disappears – and so does your money.

Why it’s worse now: These scams have evolved into large-scale operations run like businesses. AI-generated chats and images make scammers sound fluent and trustworthy. Many use real stolen identities and cloned trading dashboards. In 2025, U.S. regulators sanctioned companies providing infrastructure to thousands of these fake platforms—evidence that this is organized, industrial-level fraud.

Red flags:

  • Rapidly developing online relationships that pivot to investing.
  • Pressure to keep the opportunity secret.
  • “Profit screenshots” that look too consistent.
  • New obstacles when you try to withdraw money.

Protect yourself:

  • Never invest through links sent via text, chat, or direct message.
  • Verify firms independently through FINRA BrokerCheck or state regulators.
  • Test withdrawals early and often on regulated platforms.
  • If you suspect fraud, stop all transfers immediately and report to your bank and IC3.gov.
3. Business email and QR payment scams: “Just pay this updated account” 

The setup: You receive an email that looks exactly like it came from your vendor or from your company’s CFO, complete with logos and an existing message thread. It asks you to update payment instructions or wire funds to a “new account.” Criminals often lurk in real email systems for weeks, studying tone, timing, and templates before striking. Meanwhile, “QR code” scams – where criminals place fake QR stickers on parking meters, invoices, or even restaurant tables – are booming. Scanning those codes can send you to cloned payment pages that drain your bank or steal credentials.

Why it’s worse now: Business Email Compromise (BEC) is still the most expensive form of internet fraud, costing companies billions annually. AI now allows scammers to craft flawless emails and even generate replies in real time. QR scams are spreading fast in the physical world, often layered onto legitimate infrastructure.

Red flags:

  • Payment or account changes sent only by email.
  • Slightly misspelled domains or odd reply addresses.  Always check the reply email.
  • QR codes taped or stuck onto surfaces that didn’t have them before.
  • Pressure to pay right before holidays or weekends.

Protect yourself:

  • Verify all payment changes with a known phone number – no exceptions.
  • Enable multi-factor authentication and monitor email forwarding rules.
  • Use “approved payee” lists and dual authorization for wires.
  • Avoid scanning random QR codes; type official URLs manually.

A Classic Scam Making a Comeback: Check Washing and Mail Theft

Old-school fraud is back in new form. Thieves steal checks from mailboxes, chemically erase details, and rewrite them for higher amounts before depositing via mobile apps. The U.S. Postal Inspection Service reports a dramatic rise in this crime since 2021. If you must mail checks, use secure indoor drop boxes, monitor your accounts daily, and switch to verified digital payments whenever possible.  We have had several clients hit by this fraud, even though they were very careful.  If you must send a check, never leave it unattended in a unsecured box.

The Bottom Line

Fraudsters have always relied on speed and fear – but now they have AI doing the heavy lifting. Whether it’s a cloned voice, a fake trading app, or a forged invoice, the key to outsmarting them is the same: slow down, verify out-of-band, and never share credentials or codes with anyone. A few extra minutes of caution can save you months of regret – and thousands of dollars.

Changes to charitable giving from OBBBA

Obviously, there were many changes to the tax code with the implementation of the One Big Beautiful Bill Act (OBBBA) earlier this summer.  No matter what your level of wealth, but especially for the ultra-high-net-worth, if you are charitably minded, you should pay attention to these changes to take full advantage of the tax code under the new bill.  Here’s what’s about to shift in charitable giving when OBBBA kicks in for the 2026 tax year, and how thoughtful donors can adapt to keep generosity impactful and tax-smart.

OBBBA was signed into law in July 2025 and includes several provisions that directly touch charitable deductions starting January 1, 2026. In short, the law changes who benefits, how much is deductible, and when timing really matters.1

What’s changing in 2026
  1. A new universal charitable deduction for non-itemizers:
    For the first time since the temporary CARES-era rules, non-itemizers will get a modest above-the-line deduction: up to $1,000 for single filers and $2,000 for married filing jointly for cash gifts to qualified charities. This creates a floor of benefit even if you don’t itemize.2
  2. A 35% cap on the tax benefit for top-bracket donors:
    This one gets wonky really quick…If you’re in the 37% marginal bracket, the value of your itemized charitable deduction will be capped at 35% beginning in 2026. Practically, a $100,000 gift produces a $35,000 income reduction instead of $37,000 under current rules. High earners should revisit multi-year giving plans with this cap in mind.3
  3. A new charitable deduction floor for individuals:
    Beginning in 2026, itemizing individuals can only deduct charitable gifts to the extent total annual giving exceeds 0.5% of their contribution base (generally AGI). Amounts below that floor aren’t deductible. The first 0.5% is basically throw-away contributions…no tax savings.  There are carryforward interactions and some relief for pre-2026 carryovers.4
  4. SALT cap dynamics can change the math of itemizing:
    OBBBA raises the state and local tax (SALT) deduction cap to $40,000 for 2025 and then increases it slightly each year through 2029 before snapping back to $10,000 in 2030. That higher cap in 2025 can push more households into itemizing for that year, which affects whether you should bunch charitable gifts into 2025 or stage them differently across 2026 and beyond.5
Strategy moves to consider now
  1. Bunch 2025 giving, then smooth 2026+:
    If you planned significant gifts in the next 12-24 months and you’re a high earner, consider accelerating into 2025 to avoid the 35% cap and the 0.5% floor that begin in 2026. Using a donor-advised fund lets you make the large, potentially pre-2026 contribution for tax purposes while pacing grants to charities over several years. This can also pair well with 2025’s higher SALT cap to maximize itemizing in one year.6
  2. For non-itemizers, plan to use the new universal deduction annually:
    Households that typically take the standard deduction should plan to give at least $1,000 ($2,000 MFJ) in cash each year to capture the new above-the-line benefit starting in 2026. Keep good receipts and ensure gifts go to qualified organizations. If your giving is sporadic, consider consolidating into a single calendar year to clear any administrative thresholds and simplify tracking.7
  3. Re-optimize appreciated asset gifting:
    Gifting highly appreciated securities still avoids capital gains tax and can be combined with a DAF to streamline execution. But because 2026 introduces a 0.5% floor for itemizers, coordinate the size and timing of appreciated stock gifts so that your total giving clears the floor and captures the full intended deduction. Large, fewer-and-farther-between gifts may be more efficient than many small ones post-2026.8
  4. Lean on QCDs for IRA owners age 70½+:
    QCDs remain a standout tool because they reduce taxable income directly rather than relying on itemized deductions, which helps regardless of floors or caps. If you’re charitably inclined and subject to RMDs, map out a multi-year QCD plan to satisfy some or all of your RMD while supporting charities.9
  5. Mind carryforwards and pre-2026 gifts:
    If you already have charitable deduction carryforwards, note that amounts carried into post-2025 years from gifts made before January 1, 2026 are not subject to the new 0.5% floor when used. Work with your advisor to prioritize using those carryforwards efficiently alongside any new giving.10
Bottom line

Generosity still works. What’s changing under OBBBA is the path to getting full tax value from your gifts. For 2025, ultra-high-net-worth families may benefit from front-loading into a DAF and harvesting appreciated positions before the new cap and floor arrive. For 2026 and beyond, standard-deduction households can finally claim a modest benefit each year, and retirees can keep leaning on QCDs to simplify taxes and amplify impact. The best plan is coordinated: tax bracket, SALT position, portfolio gains, and charitable goals aligned on a multi-year calendar.

Google-Apple-Facebook Breach Ensnares Trove of Financial Passwords

Guest post by cybersecurity experts Mark Hurley and Carmine Cicalese

According to multiple sources, it was disclosed last Friday that more than 16 billion sets of account credentials (i.e., user IDs and passwords) that were stolen from Google, Facebook and Apple over time have been aggregated into a single data set that is now easily accessible by cybercriminals. It is unclear when the data was originally taken but its aggregation has simplified cybertheft. Indeed, so much data is involved it is likely the targeted organizations are unsure of what exactly is included.

More importantly, the purloined information is much broader than just login credentials to access these companies’ platforms. Rather, it includes passwords for all kinds of client accounts, including bank, custodial, email and telecom.

How could this happen? The three organizations make billions of dollars collecting and selling customer information to advertisers. Consequently, they regularly gather immense amounts of data for all kinds of accounts.

In fact, unless a client has turned on a variety of privacy and security settings on their devices, apps, browsers and search engines, the credentials for every account accessed with that device are automatically stored in multiple places. Google and Apple also offer their own versions of password managers to store their clients’ passwords and user IDs. Further, all three offer single-sign-on (SSO) features to allow customers to access numerous accounts using just the password necessary to access their platform.

The loss and aggregation of so many credentials is potentially very bad news for advisors and their clients. Both are already frequently targeted by cybercriminals who are some of the earliest and most effective adopters of artificial intelligence software, which will enable them to quickly sort through the stolen data and identify cybertheft opportunities. Undoubtedly, many will quickly try and steal money directly from client bank and custodial accounts using compromised credentials.

However, passwords for telecom, email and social media accounts also create countless opportunities for social engineering attacks on wealth managers. Numerous ones involving deep fakes—very accurate clones of voices and images of clients and employees made from videos downloaded from social media accounts—already have been used to steal millions of dollars of client assets.

Additionally, cybercriminals routinely use passwords for telecom accounts to divert cell phones and intercept communications—including for multi-factor authentication and transaction confirmation—as well as passwords for email accounts to initiate fraudulent transactions and indirectly attack wealth managers.

Given all this, what should industry participants do? We recommend advisors immediately alert clients to these risks and encourage them to take the following steps:

1. Reset the passwords to financial, telecom, email and social media accounts using a different, lengthy (20 to 25 digit) random password for each account.

2. Engage dual authentication protocols for all financial, email, telecom and social media accounts.

3. Use a password manager—other than the ones provided by Google or Apple—to help store, manage and generate random strong passwords for every login.

4. Engage the security and privacy settings on devices—about 60 on an Apple device and 120 on a Windows/Android device—as well as on browsers and search engines so they stop automatically recording user IDs and passwords each time the user accesses an account, blocking companies from collecting them.

Long before this disclosure, wealth managers and their clients were attractive targets for cybercriminals. The aggregation of so many stolen account credentials will undoubtedly increase the frequency and sophistication of their attacks. Those firms that ignore this new, increased risk may soon pay a price.

Mark Hurley is the CEO of Digital Privacy & Protection. Carmine Cicalese, COL, U.S. Army Retired, is the President of Cyber CIC.