KF Update – Reflecting on the Year and Preparing for 2026

Kane Financial Update – Reflecting on the Year and Preparing for 2026

7 Minute Read 
 
We hope you’re doing well and gearing up for the holidays! We wanted to send a quick note with updates on the markets and economic data, plus a few things to keep an eye on as we wrap up the year and move into 2026.  We hope you find this information helpful.

Markets & Economy 
Here are the 2025 year to date returns of several notable asset classes:
 
Dow Jones – Large US Value Companies – 9.18%
S&P 500 – Large US Companies – 15.32%
Nasdaq – Large US Growth Companies – 18.44%
Russell 2000 – Small/Mid US Companies – 9.54%
MSCI EAFE – Large International Companies – 23.88%
Barclays Bond Index – Aggregate US Bonds – 7.25%
Gold – 56.45%
Silver – 73.12%
Bitcoin – (6.63)%
*source Kwanti as of November 25th, 2025

Despite a backdrop of persistent global uncertainty, we have seen another strong year for equities in 2025. Developed international markets — which have trailed the S&P 500 for much of the past decade — staged an impressive resurgence and emerged as some of the strongest performers. A weakening U.S. dollar, improving economic conditions abroad, and more attractive starting valuations all contributed to this renewed momentum. U.S. markets also continued their advance, with large-cap growth companies once again leading the domestic indices, while small- and mid-cap companies delivered more modest but still positive results.

Outside of traditional equities, several alternative assets delivered remarkable outcomes. Precious metals, particularly gold and silver, were standout performers as investors sought inflation hedges and portfolio diversifiers amid evolving monetary policy expectations. Fixed income markets also benefited from stabilizing interest rates, contributing to a constructive year for bonds. Meanwhile, digital assets experienced a more muted performance amid ongoing volatility and regulatory uncertainty. Taken together, 2025 has been a year in which diversification — across geographies, sectors, and asset classes — played a meaningful role in supporting portfolio resilience.

Updated Retirement Plan Limits
Retirement plan contribution limits have recently been announced, here are the updated numbers for 2026:

• 401k/403b/Deferred Comp: $24,500 for those under age 50, $32,500 for those over age 50
  • There is also a special catch up for those ages 60 to 63, $35,750 total for 2026.
• IRAs: $7,500 for those under age 50, $8,600 for those over age 50.
• Simple IRAs: $17,000 for those under age 50, $20,500 for those over age 50.

Updated Tax Brackets and Deductions

The standard deduction for individual filers will be $16,100 and $32,200 for married couples filing jointly.  Those over the age of 65 will receive an additional $6,000 plus the normal bump that has been received in the past.

Reflecting on the Year and Preparing for 2026
Equity markets are on track to deliver a third straight year of strong performance which is great to see—but it’s also a good reminder not to get too comfortable. Now is a perfect time to make sure your portfolio still matches your time horizon, your goals, and—most importantly—your comfort with risk. If this spring’s market pullback made you uneasy, or if anything in your life has changed, please reach out. We’re always happy to sit down and review things with you.

If you’re still working, it’s worth taking a quick look at your paystub to make sure your tax withholding is accurate—no one likes surprises come tax time. We’re already far enough through 2025 that adjusting your withholding now may not make a big difference for this year, but it’s a great way to ensure everything is correct going into 2026. We’ve also seen several cases recently where the new W-4 forms don’t sync well with payroll systems, which can lead to inaccurate withholding.

The end of the year is a great time to take a fresh look at your estate planning documents and beneficiary designations. We review these with you during our meetings, but it’s still worth taking a moment to check any outside accounts or older documents to make sure everything truly reflects your wishes. Life moves fast, and little things like outdated beneficiaries can create big headaches later on. If you don’t have these documents in place yet, no worries—we can connect you with several trusted local attorneys who can help you get everything set up.

For those of you age 70½ or older, this is a good time to think about Qualified Charitable Distributions (QCDs). A QCD allows you to give directly from your IRA to a qualified charity, and the amount you donate can count toward your Required Minimum Distribution—without showing up as taxable income. It’s a simple, tax-efficient way to support causes you care about. If you’re considering a QCD for 2025 or want to plan ahead for 2026, we’d be happy to walk you through the process and make sure everything is set up correctly.

Review Meeting 
If you would like to sit down and review your accounts, discuss tax or estate planning, or just have a few questions, always feel free to email Kristi directly at kristi@kanefp.com or call/text the office at (315) 801-9028.  

Our office will be closed for the next three days and throughout Christmas week, but I (Clint) will still be in the office and available if anything comes up. If you need help with a service item or have a question, please don’t hesitate to reach out. I’m always happy to assist.
  
We hope you find this information helpful. Wishing you a wonderful holiday season, and we look forward to seeing you soon.
 
Best, 
Clint, Renee, Kristi, & Danielle