Happy New Year!
from Ken Luckinbill!
Happy New Year, everyone! As we kick off 2026, I’m excited to share some fresh insights to help you navigate your financial journey. Whether you’re planning for retirement, protecting your legacy, or eyeing market opportunities, we’ve got actionable ideas here. Let’s dive in—this’ll be a quick, fun read to get you motivated.
Let’s start 2026 strong with proven strategies for smarter taxes and smoother wealth transfer.
In our recent December seminar, we explored powerful ways to reduce future tax burdens on your retirement savings and make it easier to pass assets to your loved ones. Key highlights included:
- Roth conversion strategy — Move money from a traditional IRA to a Roth IRA by paying taxes on it now (ideally when your tax rate is lower). Once it’s in a Roth, your money grows tax-free forever, and withdrawals in retirement are tax-free with no forced distributions during your lifetime. The problem with traditional accounts? Starting at age 73 (or 75 if born in 1960 or later), the IRS makes you pull out money every year—even if you don’t need it—which could push you into a higher tax bracket. A smart conversion strategy lowers your lifetime taxes and lets your heirs inherit more without a big tax surprise. It’s like paying a small bill today so your family gets the full amount tomorrow!
- Revocable trusts (presented by attorney Chad Eichorn of Bollman Law) — These flexible tools help you skip the long, expensive, and public probate process. Your affairs stay private, and assets pass directly and smoothly to your loved ones. Fun fact: In Iowa, if real estate (like land) isn’t in a trust or jointly owned, it goes through probate—and attorney/executor fees can reach up to about 2% of the probate assets’ value (often thousands or more, depending on estate size). A trust avoids that hassle and cost entirely!
These aren’t just theoretical ideas—they’re practical moves many clients are using right now to protect their legacy amid changing tax rules and market shifts. If you’re curious how they might fit your situation, let’s chat!
Three Takeaways to Jumpstart Your Goals This Month
No overwhelming to-do lists here—just three simple, high-impact steps to get moving. Think of these as your January turbo-boost!
- Review Your Roth Eligibility: Check if a conversion makes sense based on your tax bracket. Aim to convert just enough to fill lower brackets—could save thousands long-term.
- Set Up a Revocable Trust Chat: Grab coffee with an estate pro (like Chad) or me. It’s easier than you think and avoids court drama for your family.
- Audit Your Portfolio for Legacy Fit: Ensure your retirement accounts have updated beneficiaries. Bonus: Add a “transfer on death” designation to non-retirement assets for seamless passing.
Do one this week, and you’ll feel the momentum. Small wins add up fast!
Market Pulse – The Last 30 Days in Review
Quick snapshot of stocks, bonds, and precious metals from mid-December to mid-January. Markets were a rollercoaster, but here’s the gist:
- Stocks: Started strong with gains across the board (S&P 500 up ~0.6% early on, Dow +0.5%, Nasdaq +0.5%). Holiday vibes and AI buzz fueled optimism, but tariff threats and geopolitical jitters (e.g., Trump’s Greenland comments) sparked a sharp sell-off on Jan. 20—the worst daily drop since Oct. 2025. Recovery kicked in Jan. 21 with Dow up 0.6%, S&P 0.4%, Nasdaq 0.1%. Overall: Volatile but resilient, with tech and cyclicals leading.
- Bonds: Yields ticked up slightly (10-year Treasury from ~4.17% to 4.22%), reflecting inflation worries and policy uncertainty. But bonds held steady with modest returns, outperforming in a choppy environment. High-yield and mortgages shone, up ~8% for 2025 overall.
- Precious Metals: The stars of the show! Gold surged from ~$4,444 to nearly $4,900 (+~10%), hitting fresh highs amid dollar weakness and safe-haven demand. Silver exploded from ~$69 to $95+ (+~38%), driven by supply squeezes from China export curbs and industrial needs. By the way, you don’t have to buy physical gold and silver to invest. Let’s talk if you are looking for alternative appreciation in metals.
In short: Equities wobbled, bonds stabilized, metals soared. Volatility’s the name of the game lately!
Looking Ahead – Navigating Uncertainty with Smart Hedging
2026’s forecast? Buckle up for volatility from geopolitical curveballs—like ongoing tariff talks, trade tensions with Europe, and global hotspots (Middle East, Eastern Europe). These could spike inflation and rattle markets, but resilient growth (GDP ~2-2.5% U.S.) and AI-driven earnings offer upside. Expect Fed pauses on rates, with yields steady at 4-4.5%.
That’s why we hedge smartly using ZEGA Investment’s strategies: We use options-based “buy and hedge” approaches to protect gains while capturing upside. Think of it as an insurance policy for your portfolio—limiting downside during wild swings without missing the rally. In volatile times like these, it’s a game-changer for peace of mind.
Want to explore how this fits your plan? Let’s talk—hedging could be your 2026 secret weapon.
Thanks for reading—here’s to a prosperous 2026! If this sparked ideas, hit reply or call me at Luckinbill Financial Advisors (515) 462-0020. Stay tuned for more tips.
P.S. I’m partnering again with Chad Eichorn from Bollman law and offering a Free Value-Packed Asset Protection Workshop on March 3rd, 2026 at the Winterset Public Library at 6:30 PM.
Check out details and RSVP to secure your spot!
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