Quarterly Insights - Q3 2025

Whether you’re trekking through nearby foothills or scaling the heights of Mount Kilimanjaro, the journey is often a mix of exhilaration and challenge on your way to the peak. Investing during times of volatility can feel the same way.  

As we approach the final quarter of 2025, investors find themselves in a markedly different environment than just a year ago. The exuberance of 2024—fueled by aggressive rate cuts, a booming AI sector, and broad-based equity rallies—has given way to a more cautious, uneven terrain in 2025. While markets have shown resilience, they’ve also revealed fault lines that demand sharper focus and strategic recalibration. 
 
Will the dollar continue to slide or is this a short-term blip? How do we prepare for ever-changing tariffs?  Will interest rate cuts continue? Is there an AI bubble forming or will the Magnificent 7 continue growing? These are some of the questions we heard throughout the year. Though there is a lot of uncertainty, volatility is not new, and we encourage our clients to focus on things we can control.

• Rebalance with purpose: Revisit your financial plan and adjust for any short-term goals and expenses that you are considering as we enter 2026. If your holding period is less than 5-7 years, let’s review your overall asset allocation to prepare you for any volatility.
• Harvest tax losses: Even in good years, there are bear markets. Use market dips to offset gains and optimize your tax position.
  Stress-test your plan: If you are approaching retirement, model multiple economic scenarios, from best-case to worst-case. This can give you peace of mind knowing how to prepare for any weak spots in your plan. 
• Fortify your defenses: Review cybersecurity and your estate plan. Create liquidity buffers in anticipation of choppy waters ahead.
• Stay globally aware: As global supply chains are realigning, international markets are not an asset class to ignore. Diversifying your stock portfolio should include companies outside of the U.S.

2026 won’t reward passive optimism. It will favor intentional investing, adaptive thinking, and a clear-eyed view of risk. The future belongs to investors who can navigate complexity with clarity—and we’re here to help you do just that. 

• Expanded Standard Deduction – Raised to $15,570 (single) and $31,500 (married filling jointly) 
• SALT Cap Raised – The State and Local Tax deduction cap increased from $10,000 to $40,000 for 2025-2028, with phaseouts for higher incomes. 
• Deduction for Seniors – Adults over 65 can claim a new deduction of $6,000 filing single and $12,000 married filing jointly (both over 65), with phaseouts for incomes over $75,000 ($150,000 for joint filers) through 2028. 
• Estate and Gift Tax Exemption – Raised to $15 million in 2026 ($30 million for joint filers), indexed for inflation. 
• Qualified Opportunity Zones – First available from the Tax Cuts & Jobs Act 2017 but now made permanent, this allows investors to defer capital gains from a business or investment sale if they invest the proceeds into economically distressed communities. The tax incentive is to encourage growth and development to revitalize communities. 
• New Tax Deferred Accounts for Children – Automatically created for every American child born between 2025-2028 with $1,000 seed money funded by the US Treasury. These are expected to launch Summer 2026.
• Mandatory Roth Catch-Up Contributions – If you are aged 50 or older and earned more than $145k the previous year with your employer, you must make your catch-up contributions to the Roth (after-tax) account. If your plan doesn’t support Roth, no catch-up contributions are allowed.
• Standard & Enhanced Catch-Up Limits – In 2025, the age 50+ catch-up limit is $7500, making the total contribution limit $31,000. If your plan allows, for those aged 60-63, individuals can contribution up to $11,250, for a total of $34,750.