Tax planning is different than tax preparation. Tax preparation is backward-looking and it focuses on accurately reporting what already happened to comply with the law and file your return. Tax planning is forward-looking and it involves proactively structuring decisions throughout the year to minimize your tax liability and improve your after-tax outcomes. In short, preparation records history, while planning helps shape it.
Entering 2026, almost every analyst forecasted that equity markets would experience a rise throughout the year. By late January, the S&P 500 reached new highs, and in early February the Dow Jones Industrial Average (DJIA) hit a record high, closing above the 50,000 mark for the first time. These moves were supported by expectations of interest rate cuts, continued earnings growth and improving economic and market trends. By mid-quarter, rising geopolitical tensions, particularly in the Middle East, introduced a new wave of uncertainty. At the same time, evolving expectations around the Federal Reserve’s policy path added to investor concern. Together, these factors reignited volatility, marking a departure from the relatively smooth market environment investors had grown accustomed to.
Tax planning should always be a key focus when reviewing your personal financial situation. One of our goals as financial professionals is to identify as many tax saving opportunities and strategies as possible for our clients. We believe that a proactive approach to looking at your tax situation can lead to better results than a reactive approach. We hope you find this report helpful.
We hope you and your loved ones enjoyed a wonderful holiday season. Thank you for allowing us the opportunity to help you pursue your financial goals. We look forward to our continued relationship with you and seeing what the year ahead will bring. The year 2025 was filled with many significant events, from ushering in a new president, to a brief but alarming market correction. Overall, it proved to be a great year for investors. Investors enjoyed strong returns, and major indexes reached multiple new highs. The Fed’s decision to lower interest rates in the latter half of the year, a continued healthy and resilient economy, and strong corporate earnings fueled positive investor sentiment
Equity markets closed out the fourth quarter of 2025 on a strong note, buoyed by an interest rate cut from the Federal Reserve in December. Delighting investors, 2025 marked the third consecutive year in which equities delivered double- digit returns. This extended bull market was powered largely by three federal rate cuts during the second half of the year, robust AI-driven technology earnings, and broadly positive investor sentiment.
One of our main goals as holistic financial professionals is to help our clients recognize tax reduction opportunities within their investment portfolios and overall financial planning strategies. Staying current with the ever-changing tax environment is a key component to helping our clients benefit from potential tax reduction strategies. As you probably know, 2025 brought significant changes to tax code. The One Big Beautiful Bill Act (OBBBA) brought many new tax law changes that commence this year as well as made permanent many of the 2017 Tax Cuts and Jobs Act (TCJA) provisions that were scheduled to sunset at the end of this year. This report focuses on information that could be helpful for individuals when tax planning for the calendar year 2025.
Resilience illustrates the ability to withstand challenges or recover quickly from difficult conditions. Resilience can also be used to describe U.S. equity performance over the past year—including the third quarter, as markets surged past record highs despite numerous potential sources of volatility.
On July 4, 2025, President Trump signed a new bill that will change financial planning for millions of Americans. Referred to as the “One Big Beautiful Bill Act (OBBBA)”, this complex bill includes a myriad of tax issues over hundreds and hundreds of pages. Most taxpayers have seen news, commentary, opinions, and reports about the OBBBA, but many just want to know the answer to one question - How does this affect me?