Perspective as We Enter 2026
New Milestones – Retirees vs. Pre-Retirees
2022 was a very difficult year in the U.S. stock market. Stock prices fell at levels comparable to previous crises such as Covid, the 2008 financial crisis, and the Y2K internet tech bubble. In January of 2023, I estimated that it would take until late 2024 for pre-retirees to hit new milestones and possibly until late 2025 for retirees to reach new highs.
My logic was straightforward. There would not be government or Federal Reserve stimulus coming to the rescue. In fact, this downturn was potentially the result of too much stimulus already. Instead, the Federal Reserve would work aggressively to slow the economy and bring us to the brink of recession. This meant the recovery would need to happen the old-fashioned way.
Pre-retirees could benefit from volatility by continuing to save and invest into it, allowing them to reach new milestones sooner. Retirees experienced the opposite effect. Instead of saving, they were spending. From a net-worth perspective, spending rate determines recovery time. For example, if a $1 million portfolio grows by $100,000 but $70,000 is withdrawn, net worth increases by only $30,000. The higher the withdrawal rate, the longer it takes to recover.
Now, entering 2026, we can see this logic clearly played out. Pre-retirees who continued investing reached new milestones some time ago and remain wealthier than before. Many retirees are also wealthier than they were prior to the crash. Some retirees, however, who withdrew at higher rates, are still below their December 2021 levels. For many, this was intentional — a conscious choice to enjoy the savings they worked a lifetime to build.
The Broad Market vs. AI-Driven Recovery
2025 finally brought a healthier market recovery — one no longer limited to the largest technology companies. Nvidia, Google, Microsoft, Apple, Meta, Tesla, and Amazon — the “Magnificent 7” — accounted for most gains in 2023 and 2024 as AI emerged. While welcome, it is not healthy for only a handful of stocks to drive the entire market.
Toward the end of 2024, the broader market began to rise. When President Trump took office in 2025, tariff headlines dominated and markets reacted negatively. Following the declaration of “Liberation Day” on April 2nd, markets sold off sharply. But shortly after, something notable occurred. Around April 9th, a broad-based recovery began and continued through most of the year.
In late March, we significantly restructured portfolios — reducing reliance on the Magnificent 7 and increasing exposure to stocks that had been left behind. The result was a more balanced, resilient, and sustainable recovery.
Revelations Since Covid
The years since Covid have revealed stark realities that are difficult to ignore.
Federal Debt and Deficits
At the end of 2025, U.S. national debt stood at approximately $38.5 trillion and continues to grow by about $2 trillion per year. This is not sustainable. Debt service alone now exceeds $1 trillion annually — more than double pre-Covid levels. Consider what $1 trillion per year could accomplish if deployed productively instead of servicing interest.
Income and Tax Disparity
The top 10% of taxpayers earn roughly 50% of national income and pay about 70% of federal taxes. Both numbers represent extreme disparity and differ significantly from historical norms. This reflects a deeper erosion of the middle class. Framing deficits as a result of the wealthy “not paying their fair share” distracts from the structural income imbalance that must be addressed.
Since the 1980s, manufacturing has declined from roughly 30% of the U.S. economy to about 10%. Along with jobs, we lost skills, infrastructure, and the ability to compete globally. Covid, wars, and geopolitical instability exposed the risks of heavy reliance on foreign — and often adversarial — nations for essential goods.
The loss of manufacturing jobs correlates with the increase in income disparity. For years the message has been that rich people don’t pay enough in taxes and income re-distribution through taxation. I believe that is a distraction. We need to re-shore our manufacturing for the disparity issues to be resolved.
National Security
To better understand today’s concerns, I closely reviewed both the 2022 Biden National Security Strategy (NSS) and the 2025 Trump National Security Strategy. Despite differing methods, the underlying concerns and objectives are strikingly aligned.
Both administrations believe that manufacturing must be reshored, China must be constrained, Taiwan must not fall by force, Middle East exposure should decline, allies must contribute more, and the Western Hemisphere must be protected from adversarial influence.
A key point emphasized in both strategies is that domestic strength underwrites national security. This represents a shift from the post–Cold War assumption that globalization, financial dominance, and military superiority alone were sufficient. That assumption proved flawed. It allowed domestic industry, cohesion, resilience, and household financial stability to weaken.
Where the strategies diverge is in execution.
· The Biden administration focuses on altering systems so behavior changes over time.
· The Trump administration focuses on altering behavior directly, forcing systems to adjust — or become irrelevant.
For example, Biden sought to improve labor conditions in China which might eventually raise manufacturing costs. Redirecting manufacturing elsewhere away from China. Trump’s tariffs raise them immediately. While the end goals may align, Trump’s approach forces action and can’t be ignored. People inherently resist change and sometimes don’t grasp the gravity of its necessity. And thus, many see this abrupt approach as unsettling.
Educational Outreach
In 2008, I wrote the book Wealth Is a Choice. The core principles remain true today. 2025 marked a renewed commitment to education. We launched an expanded education section of our website featuring videos, blogs, and the book, and officially launched the Wealth Is a Choice podcast.
We define wealth as abundance — not just financial, but across family, health, fitness, community, business, and knowledge. Through conversations with people doing meaningful work, we explore behaviors that lead to success across all forms of abundance. We hope that through conversations from a wide range of people, others will make connections in their lives and discover clearer pathways to achieving the “Wealth” they desire.
Artificial Intelligence in Practice
AI is here to stay. Early fears focused on job replacement. In practice, AI has proven to be a powerful tool that amplifies capable professionals. I like to say that it makes “smart people smarter”. Used without understanding, it can be counterproductive. Used responsibly, with proper cybersecurity and data protections, it creates opportunity.
We have integrated AI into our practice thoughtfully, with a strong emphasis on protecting client information. As AI becomes more embedded in daily life, both professionals and consumers must be diligent in how information is stored, learned, and used.
Gaining Control — Nationally and Personally
We are living through stratospheric change. Noise is constant. Whether these times feel frightening or exciting depends largely on perspective.
Certain realities are unlikely to change regardless of political leadership. Borders will be protected. Manufacturing will be reshored through one method or another. Deficits and debt will force difficult decisions. AI will continue to reshape productivity. The cost of health care - not just measured by insurance premiums - will need to be addressed.
The livelihood of all Americans depends on a thriving government and private sector. It is in our best interests to have successful governance and business, no matter if we like who is in charge. Our lives are more intertwined than ever before.
For example, everyone with a 401k that has a target-date-retirement fund investment owns a small slice of companies like Tesla. To wish that Tesla - or most American companies - to fail is also to wish of that retirement account to decline. Our outcomes are far more connected than many realize.
Individually, control comes from focusing on what you can influence:
· Save into Roth accounts where possible
· Learn productive financial behaviors
· Stay informed without emotional overload
· Focus time and energy on what you can control
· Strive for success and recognize when the success of others advances your own situation
The pendulum will always swing. We are a nation of checks and balances. Understanding the issues — rather than reacting emotionally to the methods — allows us to participate constructively in shaping the future.
The world is changing quickly, and that can feel unsettling. But change does not mean instability, and it does not mean loss of control. When we take the time to understand what is happening — economically, politically, and structurally — fear gives way to perspective. Progress is rarely smooth, but it is often productive. By focusing on what you can control, making thoughtful financial decisions, and staying engaged without becoming consumed by the noise, you put yourself in a position to adapt, participate, and move forward with confidence. The years ahead may challenge us, but they also offer opportunities for those willing to approach them with clarity rather than emotion.
2026 and the years ahead may feel uncomfortable at times. They may also be filled with opportunity. I find greater confidence and productivity when I understand the issues and look for opportunity rather than fear.