Building on a Strong Foundation: Your 2025 Year-End Update

As we close the books on 2025, we are grateful for the trust you've placed in Michael Brady & Co. For over 30 years, we've served as builders, keepers, and stewards of multi-generational wealth, and this year has been no exception. We've worked alongside you to navigate market transitions, adapt to policy changes, and keep your financial plan on course. In this update, we'll review the year's developments and share guidance as we look ahead to 2026.

Michael Brady & Co. Family Growth

We're thrilled to share that our team has grown! In 2025, we welcomed Missy Dennis to the Michael Brady & Co. family. Missy brings over a decade of financial services experience, having held leadership roles at both Huntington Bank and U.S. Bank. Her passion for building genuine relationships and helping clients achieve their goals aligns perfectly with our firm's values and our fee-only, fiduciary approach.

Many of you have already experienced Missy's energy and dedication firsthand. Her relationship-focused approach embodies what makes the Michael Brady & Co. difference. Getting to know you and your family, understanding where you want to go, and supporting you every step of the way as you confidently navigate your transition into retirement and beyond.

Mike has been thoroughly enjoying his time with his 7 grandchildren, soaking up all the precious moments with them.

Cameron and his family enjoyed a busy summer and fall with Beau playing soccer, swimming, and loving on his baby sister. Nora is such a happy little girl who enjoys her independent play, crawling all over the house and learning from her big brother.

And of course, Woodie Brady continues in his role as Chief Security Officer, diligently patrolling the grounds and reminding us all about the importance of regular password changes and smoke detector battery replacements!

2025 Market Performance Review

2025 presented investors with a year of adaptation and resilience. Despite ongoing uncertainty around policy shifts under the new administration and global economic headwinds, markets demonstrated their characteristic ability to navigate change. Technology and healthcare sectors continued to show strength, while other areas of the market adjusted to evolving conditions.

Bond markets experienced notable volatility as investors recalibrated expectations around Federal Reserve policy and the potential impact of fiscal changes. For our clients, maintaining a diversified asset allocation strategy designed to meet their unique objectives while keeping investment risk at an acceptable level remained the cornerstone of weathering these market fluctuations. Strategic positioning helped capture growth opportunities while managing downside risk.

Economic Environment Assessment

The Federal Reserve's data-dependent approach to monetary policy continued throughout 2025. Following the cautious easing cycle that began in late 2024, the Fed carefully balanced inflation concerns with employment considerations. Interest rate decisions remained a focal point for both borrowers and investors as the economic landscape adjusted to new policy directions.

Employment trends reflected continued stability, though job growth moderated from previous years. GDP growth demonstrated an economy adapting to change while maintaining fundamental strength. These indicators reinforced our philosophy of focusing on your long-term goals and risk profile rather than reacting to short-term economic noise.

Policy and Regulatory Developments

Several significant changes took shape in 2025 that impacted financial planning. The new administration's policy initiatives began to take effect, with potential implications for tax policy, retirement planning, and investment strategies. SECURE 2.0 Act provisions continued rolling out, including enhanced catch-up contribution opportunities for those aged 60-63 and expanded retirement plan features.

Estate tax exemption amounts increased with inflation adjustments, though discussions about potential changes to estate tax policy warrant monitoring. As your fiduciary advisors, we've stayed current on these developments to ensure your financial strategy remains aligned with the evolving landscape.

Looking Ahead to 2026

As we turn our attention to 2026, several key factors remain on our radar: the continued implementation of policy changes, potential tax law adjustments, Federal Reserve positioning, and global economic dynamics that could create both challenges and opportunities.

Our approach remains unchanged: we'll continue ensuring your financial goals and objectives properly influence your portfolio construction, so your investments work to achieve what matters most to you. Portfolio diversification will remain essential, and we'll seek opportunities to optimize your asset allocation as conditions evolve. As always, we're focused on your long-term financial road map, not short-term market movements.

Year-End Action Items for Clients

As year-end approaches, several planning opportunities deserve your attention:

Tax-Loss Harvesting: We're reviewing client portfolios for positions that could offset gains and reduce your 2025 tax liability.
Required Minimum Distributions (RMDs): If you're 73 or older, ensure your RMDs are completed by December 31st to avoid penalties. We're here to help coordinate these distributions.
Charitable Giving: Qualified Charitable Distributions (QCDs) from IRAs can satisfy RMDs while supporting causes close to your heart. Other charitable contributions may also provide tax benefits.
Insurance Policy Review: Verify that your coverage levels match your current needs and life circumstances. This includes life, disability, and long-term care insurance.
Estate Planning Updates: Confirm that beneficiary designations are current and that estate documents are up to date. Including your will, durable power of attorney, healthcare proxy, and any trusts, reflect your current wishes.

If you'd like to discuss any of these action items or schedule a comprehensive review, please don't hesitate to reach out. We're here to help organize your financial information and make meaningful decisions about your financial future.

Peace of Mind and Confidence in Your Financial Future

As the year draws to a close, we're reminded that our work is about more than just numbers, portfolios, and tax strategies. It's about providing you with peace of mind and confidence in your financial future so you can focus on what truly matters, the people you love and the experiences you want to create together.

Thank you for allowing us to serve as your trusted advisors and for being part of the Michael Brady & Co. family. Whether you're still building wealth or enjoying the retirement you've worked so hard to achieve, we're honored to walk this journey with you.

From Mike, Cameron, Missy, Woodie, and the entire team at Michael Brady & Co., we wish you and your loved ones a joyful holiday season filled with warmth, gratitude, and time spent with those who matter most.

Here's to a successful and meaningful 2026!