2025 was an incredibly good year for Equity investment across the board.
The S&P 500 had a total return of 16-19%
The Dow Jones had a total return of 12-14%
The Nasdaq had a total return of 20%, these returns were all reported by Investing.com.

So why are my clients upset? Their capital gains in their non-retirement accounts were higher than previous years, meaning they must pay more in capital gains tax. Another impact of the higher total returns is for my clients that they must take RMD’s, they must pull out more due to their 12/31/25 balances being higher.

As I said in the beginning, I am sorry-ish 😊.

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Before you worry, I used a burn box that was sitting in my fire pit. What did I burn? Tax
returns from 2003-2017. Here are the rules from the IRS on how long you should keep
them:
Period of limitations that apply to income tax returns.
Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
Keep records for 3 years from the date you filed your original return or 2 years from the date
you paid the tax, whichever is later, if you file a claim for credit or refund after you file your
return.
Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt
deduction.
Keep records for 6 years if you do not report income that you should report, and it is more
than 25% of the gross income shown on your return.
Keep records indefinitely if you do not file a return.
Keep records indefinitely if you file a fraudulent return.
Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

It was so cathartic and now I have an empty cupboard!

*https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-ikeep-
records
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A purchasing limit is what I am referring to. Why should you and your partner have a purchasing limit? Let me share a few reasons:
Avoid Overspending: Setting a limit helps couples avoid making impulsive purchases that could lead to debt and financial strain.
Align Financial Goals: A joint budget allows couples to align their financial priorities and work towards common objectives, ensuring they are making decisions together.
Debt: By having clear boundaries on how much they can spend couples are less likely to accumulate debt and the stress that comes with it.
Build Trust: Financial boundaries help couples understand how to manage money matters, reducing the chances of conflict and fostering trust.

On a personal note, my Husband and I have a spending limit of $500. We can each spend up to that amount without any pre-discussion.

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I often tell my clients to discuss the big life cycle items when everyone is happy and
healthy. Estate Planning documents fall under this same category. It is important to have
everything in place and up to date. Let me list some basic Estate Planning items everyone
needs:
A basic Will: a straightforward legal document that specifies how you want your property
and assets distributed after you die, names an executor to manage the process, and can
appoint guardians for minor children.
A Living Will: a legal document that outlines your preferences for end-of-life medical care,
such as life support, artificial nutrition, and resuscitation (DNR), if you become
incapacitated
Durable Power of Attorney: a legal document that designates a trusted agent to manage
your financial and legal affairs if you become mentally or physically incapacitated. Unlike a
standard POA, it remains in effect during incapacity.
Florida Designation of Health Care Surrogate: a legal document (an advance directive) that
allows you to appoint a trusted person—the “surrogate “to make medical decisions for you
if you become incapacitated or are otherwise unable to make informed decisions for
yourself.
I know this is not very romantic – have the candy and champagne after you are finish
signing everything.

Disclosures

Disclosures:

I have received so many calls from clients over the past two weeks about old 401(k) accounts they just learned about from former employers. My clients are learning about these accounts because their former employer is changing the plan and want them off the plan. Please, DO NOT LEAVE FUNDS WHERE YOU ARE NOT!
If you are changing careers by choice, loss of position, or retirement, get a copy of your latest 401(k) statement and file it some place safe and assessable.
I am happy to help you roll over those funds but I do not want you to be put in the place of getting a check in that mail for funds that are now taxable because you left your account with your former employer.

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Recently I have had a number of clients who pass away who were are single. I mention them being single because when you are married, normally, the spouse is your beneficiary and that makes things a bit easier. One sad conversation I just had was with the executor of a client’s estate, who found out they were not a beneficiary of any of the accounts I manage. I felt horrible having to ask identifying questions to make sure I could talk to this person, then inform them that they are not the beneficiary. This was crushing.

My advice has been; when you are together as a family for a happy event and everyone is healthy, this is a good, though awkward, time to discuss these issues. Ask your family members to identify items in your home that they would like. Collect pertinent information such as dates of birth, social security numbers, current address, and phone for the beneficiary listings.

The topic is never a fun one – just have it so you are all on the same page – and be done with it.

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I recently met with a client that many years ago got behind on her bills to the point that she used a credit counselor to help her get back on her financial feet. Since that time, she has implemented what she calls “Credit Cushion.” What she has done is pre-paid all of her regular bills one month in advance. If something adverse were to happen to her income, she has this built in buffer.

Along with making sure you regularly review your credit card and bank statements, this is an interesting way to make sure nothing goes unpaid.

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When it comes to resolutions 8% of people give up their resolutions after less than four months.
21.9% report their resolutions last two months, 22.2% last three months, and 13.1% last four months.
Only 1% of people say their resolutions last for 11 or 12 months.
90% of New Year’s resolutions fail by the second week of February.

If you plan to make financial resolutions, I want you to be successful. Make your resolutions reasonable and attainable. One item you can look at is how much you are saving in your payroll deducted retirement plan. An easy resolution is to save 1% above your company’s match. Another easy one is to review your credit card statements and bank statements at a regular interval, that way you will notice if anything seems off before it is too late.

Make 2026 a year for success for yourself and your family.

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This is a comment I have heard from a number of clients over the past two months. Either people have passed away, gotten divorced, gotten married, or just want to make changes. All of these life-cycle events and personal desires to make change are easy to deal with, it is just a matter of a little bit of paperwork.

My question to you is: “when was the last time you reviewed your beneficiary designations on your accounts”? We have had clients that have received funds from former spouses that never changed who were listed as their beneficiaries after their divorce.

As the year ends, I beg you to please check who you have listed and make any changes necessary now.
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Most of my clients are retired, which means I am managing some type of retirement account for
them. If they have a Traditional IRA and are age 73 or older, they must start withdrawing funds from
their IRA accounts. For anyone over age 73 and still working, you may still contribute to your
company retirement plan and not take an RMD form there. For anyone who fails to take the
required withdrawal, there is an IRS imposes an excise tax of 25% on the di􀆯erence between the
RMD amount you should have taken and the amount you actually withdrew. But did you know this:
The penalty is reduced to 10% if you withdraw the missed RMD amount and file the
appropriate paperwork within the “correction window,” which is generally within two years.
For those who have Inherited IRA accounts, you have 10years from the date of inheritance to
completely withdraw the funds and avoid penalty.

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