Q4 Newsletter & Market Review

Hi All, 

Happy New Year!  Welcome to the Q4 newsletter & market review.  

Q4 Market Performance 

The market finished strong in the 4th quarter resulting in another terrific year for investing.  The S&P 500 returned 16.64% in 2025.  International funds performed exceptionally well returning 28.32%. Small and mid cap funds had positive years posting gains of 4.53% & 6.19% respectively.  

Year-to-date Returns (2025)  

S&P 500 +16.64%

Total Market +15.91% 

Tech +20.41%

Mid Cap +6.19%

Small Cap +4.53%

International +28.32%

Thoughts to Begin 2026

Investing Goals -  January is a great month to review your annual investing goals. How much are you trying to invest and in which accounts? Start contributing to those goals early in the year to keep yourself from having to play catch up in the second half of the year.  

Income Needs- If you’re retired, it’s important to know which areas of your portfolio to pull from to create your annual income.  This is where your portfolio allocation becomes very important.  Understand how much money the fixed income portion of your portfolio will produce.  That will give you clear goals for the equity side of the portfolio.  We will monitor performance throughout the year and make adjustments as needed to meet your income needs. 

Rebalancing Accounts - The market produced another outstanding year of returns in 2025.  Let’s make sure your portfolios are rebalanced and mirror your appropriate allocation.  You will likely find yourself overweight in some of the higher performing funds.  Rather than let those funds continue to run (which can be tempting), it’s vital to pair them down within your planned allocation.  Just because they were high performers in 2025, doesn’t guarantee they will be in 2026. 

Updating Beneficiaries - Be sure to review each of your accounts and make sure your beneficiaries are up to date, the beginning of the year is a great time for this.  Many platforms (Fidelity, Vanguard, Schwab etc.) will prompt you to review.   

Review Your Monthly Budget - Your monthly budget is an essential part of your financial picture regardless of what stage of life you’re in.  Understanding your expenses and income needs are crucial when it comes to meeting your goals.  Use a simple spreadsheet or the budgeting tool in Right Capital to track your expenses.     

Fund your IRA - If funding a Roth IRA is in your financial plan, it’s not too late to fund for 2025.  You can fund your account up until you file your taxes.  The individual maximum contribution is $7,000 for 2025, plus $1,000 catch up if you’re over 50 years of age. 

Gather Tax Documents - Tax season is around the corner.  Take some time and begin to gather the documents you’ll need to complete your taxes.  If you plan on using a CPA or tax professional, I recommend engaging them sooner than later.  They get very busy early in the year.  

Review Your Net Worth -  Your net worth is a great tool to monitor the overall health of your financial situation.  I recommend reviewing your net worth every year as it can assist in making big picture decisions surrounding your finances.  Assets - Liabilities = Net Worth.  Or take a peek at your dashboard in Right Capital and you’ll see your number.