Thank you to everyone who joined our first Town Hall of 2026. Tyler Hirth, CFP and Jack Garrison covered critical updates across economic trends, investment strategy, and tax planning. Here are the key takeaways.
Economic Update & Market Outlook
Economy & Labor Market
AI and capital expenditure are driving a multi-year economic expansion comparable to major historical buildouts. Corporate balance sheets remain underleveraged, supporting continued spending.
Productivity is accelerating meaningfully to levels comparable to the 1960s and 1990s, driven by AI adoption, automation, and emerging deregulation. The labor market remains resilient with unemployment rising slowly from historically low levels, and small business hiring plans are increasing.
Fixed Income & Interest Rates
The Fed is likely finished cutting rates. Market pricing reflects confidence in economic strength, with long-term yields rising despite cuts signaling solid growth expectations. Rate stability is a major tailwind benefiting smaller companies, cyclicals, and credit-sensitive sectors.
Equity Markets
Current market strength is earnings-driven, not speculative, with strong revenue, earnings, and productivity-based margin expansion. Market leadership may begin broadening in 2026 as small caps and cyclicals benefit from falling rates. The relationship between mega-cap AI leaders and the rest of the market is shifting.
Changes to Our Investment Models
The only change to our models this quarter is the swap of one of our large-cap growth positions. The new fund doesn't have as strict guidelines on its weightings to specific names, giving the fund manager more discretion. Our team continues to monitor markets and trends to identify strategic changes going forward.
Tax Season Updates
Tax Filing Season Is Here
The tax deadline is April 15th. Our team is now processing tax returns, and 1099s and W-2s should be available to all taxpayers by mid-February. Our tax team still has capacity to complete your 2025 tax return—reach out to your advisor to get set up.
Tax Bracket Updates for 2026
The 10%, 12%, 22%, 24%, 32%, 35%, and 37% tax brackets remain intact with normal annual inflation adjustments. In 2026, the 10% and 12% brackets receive an additional inflation "bump," widening slightly more than under prior law. This results in modest savings—typically a few hundred dollars for higher earners and more meaningful benefits for lower-income filers.
Charitable Contributions & 0.5% AGI Floor
The 60% AGI limit for cash donations to qualified charities is now permanent. Starting in 2025, a new 0.5% AGI floor applies to charitable deductions, meaning small portions may be disallowed until income exceeds this threshold. Donor-advised fund strategies remain helpful to avoid the effect of this floor on annual giving.
SALT Deduction Changes
The SALT cap has been raised from $10,000 to $40,000 for most filers, with phaseouts applying over $500,000–$600,000 AGI for joint filers and $250,000–$300,000 for single filers. The phaseout can create roughly a 10% increase in marginal tax within those ranges, and this framework increases the marriage penalty for high earners.
Enhanced Senior Deduction
A new additional deduction applies to taxpayers age 65+, in addition to the current age-based standard deduction increase. The new deduction is phased out over $150,000–$250,000 AGI (joint) and $75,000–$125,000 AGI (single).
Key Takeaways
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2025 Team Highlights
Exciting Growth: Lino Lakes Office
We're thrilled to announce that Strategic Wealth Group has expanded with the addition of our Lino Lakes office! We've welcomed an exceptional team who share our commitment to client service and comprehensive financial planning:
Wealth Advisors:
- Mike Trudeau, CFP
- Matt Merrick
- Ben Ollila, CFP
- Ben Prchal
Support Team:
- Kati Koch- Office Manager
- Steven Popowitz- Paraplanner
- Abby Nelson- Client Service Specialist
Personal Milestones
Congratulations toJared Lea, CFPandCharlie Hutchinson, CFPwho each got married in 2025!
Sam Archer, CPAand his wife are expecting a baby in March! Sam will be out for appointments during the first two weeks of March.
Ben Prchaland his wife are expecting their 3rd child towards the end of April!
After 38 years of dedicated service to clients,Steve Doylehas retired. We wish him all the best in his well-deserved retirement!
Welcome to the Team
Wealth Management:Charlie Hutchinson CFP (Wealth Advisor), Mira Viner (Operations Manager), and Grace Schulte (Client Service Specialist)
Tax & Accounting:Stan Ponkin EA and Greg Thompson CPA (Tax Preparers), Joan Pouchnik (Bookkeeper), plus Maryam Ibrahem, Matt Rachey, and Rishabh Goyal (Administrative Support)
Missed the meeting? Watch the recording: | |
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