In the world of IRA and 401(k) savings, maximum contributions have increased!
Here are the “data points” to get 2026 started on a positive note:
Category: Retirement
Spooktacular Investing Times
It is Halloween, so with an intended pun it must be said: spooktacular times in markets and the economy continue.
AI (Artificial Intelligence) is simultaneously spooky and spectacular. Nvidia, this week, reached a new milestone surpassing all other US companies with a $5 trillion market valuation. Nvidia’s market cap is now larger than the largest semiconductor companies AMD, Arm Holdings, ASML, Broadcom, Intel, Lam Research, Micron Technology, Qualcomm and Taiwan Semiconductor Manufacturing combined.*
Year-End Tax Planning 2025
The countdown to year-end will begin soon. With nearly four (4) months remaining in 2025, consider the following Year-End Tax Planning Checklist.* Several of these items, if addressed now, could make a meaningful difference come tax filing season AND add to savings.
- How are you doing on maxing out your 401k? Many people do not know they can temporarily increase their 401k contributions through December 31st to reach the $23,500 maximum contribution (higher max for those age 50, and even higher for those age 60-63).
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- Lots of 401k or 403b plans allow participants to contribute 25-30% of pay – or even 100% of pay (100% can be a temporary measure in order to max out for 2025).
- These 401k contributions can be tax-deductible, unless you are contributing to a Roth 401k. It is not too late!
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Shrinkflation & Jackson Hole
Today is a day that has become quietly (or not so quietly) famous in market and global economic circles. Today is the Friday of the annual Jackson Hole Economic Symposium held in the city of same name in Wyoming since 1978. The “summit” is organized by the Federal Reserve Bank of Kansas City and gathers central bankers, economists and policy makers from around the world. Friday at Jackson Hole has evolved to become an occasion when the US Federal Reserve Chairman serves up his or her keynote speech.
One key topic of the speech will be inflation: is inflation still around and how to contain it. Fed Chair Jerome Powell will probably not mention shrinkflation but he will mention inflation.
Knock, Knock (No Joke)
Compliments to one of my colleagues for highlighting this disturbing trend – under the heading, “this could never happen to me”:
Apparently, there is a new trend emerging in the ever-evolving landscape of fraud. In this case, fraudsters are showing up at victims’ homes or arranging in-person meetings with the aim of collecting physical cash, gold bars or other valuables. This in-person, “show up at the door” version of fraud is a significant shift from digital scams – where the victim’s financial and other assets and data are at risk – to a scenario in which the victims could end up in imminent danger of physical harm.
TGIF Meets OBBBA (One Big Beautiful Bill Act) Inbox
The One Big Beautiful Bill, now OBBB Act, was…. big. TGIF 2 Minutes is all about giving as complete and concise a message as possible. There will be follow-ups to the OBBBA, and as one analyst concluded, the “2026 Surprise” will come with “patches” to various wordings and actual applications of parts of the OBBBA, similar to the Secure Act – in particular referencing “patches” that came over time to the Secure Act for required minimum distributions from Inherited IRAs.
The OBBBA is far too BIG to be summarized by any one person. Although several nuggets can be highlighted, followed up by more highlights and so on. Here are a handful of major topics, with brief explanations. These are meant to spur questions and conversations that are relevant and unique to each client and each person.* Also, important – please keep in mind that due to the relatively higher wealth and income of most folks reading today, income phase-outs of lots of these provisions make a number of them less impactful (perhaps a “quality problem” to have?).
Continue reading “TGIF Meets OBBBA (One Big Beautiful Bill Act) Inbox”
Critical Mid-Year Tax-Related Ideas
Mid-Year is an important time to review several significant saving and spending decisions, possibly affecting taxes too. With just under 6 months remaining in the tax year – there’s still time to make a meaningful difference. Consider:
- Confirming amounts being deferred pre- or post-tax into 401k and other retirement accounts (and whether to max out?)
- Evaluating savings goals versus reality
- If not begun yet, giving savings goals a jump start
- Quantifying college savings account contributions
- Creating and funding Trusts
These and other important decisions can be evaluated or adjusted – think of the process as forming goals or “mini-goals”.
Mid-Year Tax Tips
The calendar is about to turn to June – and that means nearing the halfway point of 2025. For those contributing to 401k, 403b and TSP accounts, adjustments or tweaks at this time can make a real difference overall for the current tax year and future savings overall.
The most basic considerations are in the dollar amount and tax classification of how 401k/403b/TSP contributions are made.
Checking in on New Year’s Resolutions
It may be a key time – before mid-year – to check in on goals made back in January. These goals could have focused on saving more or differently, spending reduction or realignment and areas of investment focus and diversification.
How is your progress on certain goals? Can tweaks be made? Can specific ones be scrapped and new goals or ideas formed?
One particular goal from January was something I nicknamed FSP:
“Focus on Saving in order to maintain Patience” – in the event of the inevitable market decline, or volatility similar to that of 2025.
Pope Francis on “Old Age”
The words of Pope Francis often had very down-to-earth meaning. Here are excerpts from an encouraging reflection, merely two months ago, on “old age” from the late Pontiff*:
“Yes, we must not be afraid of old age, we must not fear embracing becoming old, because life is life, and sugarcoating reality means betraying the truth of things. …Restoring pride to a term [“old age”] too often considered unhealthy is a gesture for which we should be grateful…
