Four Common Money Questions, Answered in Plain English

At Ridgeline Wealth Advisors, we believe financial literacy should feel practical, not intimidating. Here are four common questions we hear, with straightforward answers to help you think clearly about cash, investing, and market headlines.

Is investing in gold or other metals worth it?

Maybe for some people as a small, specialized part of a broader plan—but not as a guaranteed shield against inflation or market stress.  Gold has had significant price swings and has not reliably tracked inflation over long periods. If someone is focused specifically on inflation protection, Treasury Inflation-Protected Securities, or TIPS, have historically been a more direct inflation-linked tool, though no approach is perfect.

Possible benefits of precious metals can include:

  • Diversification in some environments
  • A tangible asset some people find psychologically reassuring
  • Potential value during certain inflationary or crisis periods

But there are also tradeoffs:

  • Prices can be volatile
  • Gold is not an investment…there are no future expected cash flows so no way to discount cash flow to determine a fair present value share price.  It is pure speculation.
  • Metals generally do not pay interest or dividends
  • Physical ownership can involve storage, insurance, and transaction costs
  • Tax treatment can differ from stocks and mutual funds

At a high level, physical gold and many precious metals are generally taxed when sold. Some structures may be treated as collectibles, which can mean different tax treatment than stocks. Some gold ETFs may also be taxed differently depending on how they hold the metal. In some states, sales tax may apply when buying physical metals.

In short, precious metals may have a role for some investors, but they are not a one-size-fits-all solution.

What does it really mean when the stock market drops, and when should we worry?

A market drop usually means investors are willing to pay less for many publicly traded companies than they were willing to pay before. That can feel unsettling, but downturns are a normal part of investing and the ‘price of admission’ to get higher expected returns in the long-term. Short-term volatility by itself is usually not a reason to abandon a long-term plan. The better question is often not, “What is the headline today?” but, “Have my own needs changed?”

The S&P 500 is a widely followed index of 500 large U.S. companies, so it is often used as a quick snapshot of how large U.S. stocks are doing. But indexes are not available for direct investment and do not reflect actual portfolio expenses.

Market declines can be uncomfortable, but they are also part of how long-term investing works. For many people, the more important issue is whether their own liquidity needs, time horizon, or risk tolerance have changed—not whether markets are simply having a difficult week.

Is it ever okay to keep cash in a shoebox or under your mattress?

A small amount of physical cash for convenience is a personal choice. But for reserve cash, source materials support prioritizing liquid, interest-earning, FDIC-eligible options over storing large amounts at home.  An emergency fund, or protective reserve, exists to help cover unexpected expenses and near-term spending needs without forcing you to sell long-term investments at the wrong time. The exact amount depends on your situation, but the core idea is simple: keep enough cash accessible for real-life surprises.

There is also a tax angle. Money in a savings account may earn taxable interest. Cash at home does not generate taxable interest because it earns nothing. But that comes with tradeoffs: cash at home is easier to lose, steal, or destroy, and it can be harder to document.

How does a CD work?

A certificate of deposit, or CD, is a bank savings product. You agree to leave money at the bank for a set term—such as 3 months, 1 year, or 5 years—and in exchange the bank pays a fixed interest rate. If you take the money out early, the bank will usually charge an early withdrawal penalty. When the CD reaches maturity, you can typically:

  • Withdraw the money
  • Move it into a new CD
  • Let it renew automatically, depending on the bank’s terms

At a high level, CD interest is generally taxable as ordinary income in the year it is credited or made available, even if you do not withdraw it. Banks typically report that interest on Form 1099-INT. Early withdrawal penalties may be deductible on a federal return, and state tax treatment can vary.

Closing Thought

Good financial decisions often start with matching the tool to the goal: cash for short-term needs, savings vehicles for reserves, and long-term investments for long-term objectives.  Most financial options are not bad tools to have in the toolbox as long as you know when it’s appropriate to use which tool.  Don’t let me find you trying to fix your mirror with a hammer…it won’t go well.  Neither will using the incorrect financial tool.

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.

Q4 Letter to Clients

I could sit and watch a stream or river all day long.  There is constant movement, and yet, the water is always right there in front of me, covering the same ground, falling over the same rocks and touching the same boundary on each side.  The water isn’t in a hurry. It shapes rock by returning to the same line again and again. That felt like a useful reminder for investing but really, for life – we make real progress by showing up with purpose and relentless consistency, not by forcing outcomes.  It’s a lesson that I seemingly must learn over and over again, but also continues to inform my approach to good, sound financial planning.

Market and Economic Overview

The third quarter brought plenty of headlines around interest rates, inflation reads, and geopolitics, yet the market’s tape told a different story. U.S. stocks advanced through the quarter, with the S&P 500 posting gains in July, August, and September and notching several new record closes in September. It didn’t move in a straight line, but it did move – and more than the headlines alone might suggest. For context, late September trading steadied after inflation data came in as expected.  Day-to-day swings will keep coming, but they don’t change the core job of a long-term plan.

Developed markets outside the U.S. also showed strength. Part of their performance stems from a weaker U.S. dollar, which amplifies returns in dollar-terms for overseas equities. This has also supported returns in emerging markets, which have surpassed U.S. equities.  The theme continues to be that different markets lead at different times, and spreading risk across geographies helps steady the journey.

Planning Moves That Matter

Just like the water in my favorite stream, we’re focusing on things that compound quietly and that make meaningful changes over time:

  • Cash segmentation for spending needs – matching an appropriate amount of known withdrawals to high-quality cash vehicles (money markets, Treasuries, short-term bonds or other ladders) so the rest of the portfolio can do its long-term work.
  • Rebalance with intent – trim what has run, add to what’s lagged inside your target ranges, and redeploy new cash strategically into the asset classes most out of balance.
  • Year-end tax work – harvest losses where appropriate, manage capital gains distributions, and pair giving with taxes: direct appreciated shares to donor-advised funds, consider QCDs if you’re taking RMDs, and review state-specific opportunities before December 31.
  • Purpose-built buckets – where it fits, we’ll keep leaning into liability-driven investing that ties assets to time horizons instead of a single, generic “risk number.”

If your cash flow, goals, or time frames have shifted recently, let’s update the map now rather than after January 1.

Money and Meaning

Optimizing your money is obviously important but not if it comes at the expense of optimizing your life (I’m speaking to myself here).  Recent On Adventure conversations offered a thread worth carrying into Q4.

  • Bob Becker spoke about finishing Badwater 135 at age 80 – not with bravado, but with gratitude, routine, and a stubborn gentleness that kept him moving when it got ugly.
  • Lisa Smith-Batchen (will be released on October 3) reminded us that the best crews and mentors hold a mirror to your ‘why’ when your legs want to quit.
  • Wells Jones talked about drawing a line in the sand – not as a dare, but as a promise to live aligned with what matters.

Nature is saying the same thing right now. The light changes. The trail looks different. The real work is to keep showing up with intention. Money is just one of the tools that helps you do that – to buy time, fund experiences with the people you love, support causes that reflect your values, and create margin for the kind of adventures that make you feel most alive.

Thank you for your trust. If something in your world has changed – a new goal, a liquidity event, a move, college bills, eldercare planning – let us know and we’ll adjust the plan together.

Q3 Letter to Clients

July 2025

The days are already getting shorter – barely noticeable, but real. And while many of us in the South still have some scorcher days ahead, the halfway point of the year is a good time to pause and reflect.

Market and Economic Overview

Feeling some whiplash from the markets lately? You’re not alone. It’s been a wild ride, and once again, it reminds us why we’re such big fans of staying in your seat. Global tensions have kept uncertainty front and center, which usually means more market volatility. In plain terms, the roller coaster gets steeper—both on the way down and the way back up.

History has shown that some of the biggest market gains come right after sharp declines. The problem is, we never know exactly when that rebound will happen. Guessing wrong can be costly – and in some cases, set a portfolio back for decades (see the chart below).

In moments like the February 19th to April 8th drawdown this year – when the S&P 500 fell nearly 19% in just a few weeks – the temptation to jump off the ride can be strong. It will take your breath away.  But staying disciplined and committed to your plan is what makes the difference. It’s time in the market, not timing the market, that leads to long-term success.

One note of caution: it’s important that money needed for near-term living expenses isn’t exposed to these kinds of market swings. Lately, we’ve become strong advocates of a liability-driven investment approach – matching your investments to specific future spending needs – rather than just thinking in terms of general asset allocation. If that’s unfamiliar, we’d love to talk more at your next meeting.

Money in Service of Values

When markets get noisy, perspective matters. Money is at its best when it serves what you truly value. That’s a theme I’ve heard repeatedly from recent guests on my On Adventure podcast—entrepreneurs, musicians, conservationists. The thread that runs through all their stories? Wealth isn’t the end goal. It’s a tool to create freedom, meaning, and impact.

What’s the point of building bigger buckets if the money never gets used to shape a better life—for yourself or someone else? When aligned with purpose, money becomes transformative. It allows us to live with integrity, build what matters, and contribute beyond ourselves. And yes, to seek out a few great adventures along the way.  In that light, money becomes more than just currency. It becomes agency.

Thank you for your continued trust. Please feel free to reach out anytime.