Happy New Year!!! We ended fairly sideways again for the S&P 500. Other than the expected rate cut by the Fed of 0.25%, there didn’t seem to be too much market moving news.
If you’re already receiving your social security payments, the cost-of-living adjustment will be 2.8% for 2026.
I often get asked if people are saving “enough.” Of course, the actual dollar amount varies wildly based on your past spending and current expenditures. Basically, I’ve never heard anyone say that they’ve saved too much. Here’s an article that is along those lines. It says that 72% of people say they’d be happier if they saved or invested more money—far more than those that said spending would make them happier.
I’m including the retirement account limits again below.
Here are some housekeeping updates for your 2026 401k and/or IRA for under/to 50+ years old.
- IRA max contribution $7,500/8,600 (Don’t forget that IRA’s have income limits so check with us before you max out.)
- 401k max contribution $24,500/32,500 (“Super” catch-up now for ages 60-63 allows up to $35,750.)
- SEP IRA max contribution $72,000 (Watch out for the 25% cap)
- SIMPLE IRA max contribution $17,000/21,000
If you’re a high-earner and get an Employer match, it might be worth it to use static dollar amounts rather than a percentage of salary to avoid maxing out before the end of the year.
Again, Happy New Year and THANK YOU for being part of our firm!
Larry Mroczkowski
President
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.