Happy Holidays and Year-End Reflections
As the holiday season arrives, it’s a great time to reflect on the past year. Financial markets reminded us in 2025 that progress is rarely straightforward. While markets swung between highs and lows, one principle remains:long-term wealth is built through diversification, discipline, and thoughtful planning.
A key part of that planning is theyear-end review. If you haven’t yet checked whether your portfolio is positioned for success in 2026, consider these points as the year draws to a close:
Mind Your Portfolio Drift
Stock markets delivered strong returns this year. TheS&P 500andNasdaq Composite Indexesare set for a third consecutive year of double-digit gains, according to Barron’s. While that’s great news, it can cause a portfolio to stray from its intended allocation.
For example, a portfolio originally set at 60% stocks and 40% bonds in 2020 could now be skewed to 76% stocks and 24% bonds, unintentionally increasing risk.Year-end rebalancinghelps realign your portfolio with your long-term objectives and maintain your risk tolerance.
Tax-Smart Moves Before Year-End
There may be opportunities to reduce your 2025 tax bill before the clock strikes midnight on December 31. TheOne Big Beautiful Bill Actintroduced new benefits tied to income levels, making tax planning more critical than ever.
Some strategies include:
Maximizing tax-deferred contributions:
401(k) contributions: $23,500 if under 50
Catch-up contributions: $31,000 for those 50+
Super-catch-up: $34,750 for ages 60–63
Charitable giving:
Taxpayers 70½ and older can make aQualified Charitable Distribution (QCD)of up to $108,000 from a traditional IRA to a qualifying charity, which also counts toward required minimum distributions (RMDs), reported by Kiplinger.
These actions not only help reduce taxable income but also align your finances with your values.
Market Snapshot
Last week, theS&P 500andNasdaqposted modest gains, while theDow Jones Industrial Averagedeclined slightly. Yields on most U.S. Treasury maturities also moved lower.
| Data as of 12/12/25 | 1-Week | Y-T-D | 1-Year | 3-Year | 5-Year | 10-Year |
| Standard & Poor’s 500 Index | -0.6% | 16.1% | 12.8% | 19.6% | 13.4% | 12.9% |
| Dow Jones Global ex-U.S. Index | 0.7 | 26.7 | 22.5 | 13.4 | 5.3 | 6.0 |
| 10-year Treasury Note (yield only) | 4.2 | N/A | 4.3 | 3.6 | 0.9 | 2.2 |
| Gold (per ounce) | 2.0 | 63.9 | 59.8 | 34.2 | 18.8 | 15.1 |
| Bloomberg Commodity Index | -2.7 | 10.3 | 10.0 | -1.1 | 7.7 | 3.4 |
S&P 500, Dow Jones Global ex-US, Gold, and Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested in directly. N/A means not applicable.
Who’s Happy? Insights from the World Happiness Report
It’s that time of year: theWorld Happiness Report (WHR)is out! The report evaluates 147 countries using surveys on life satisfaction, social support, health, freedom, generosity, and corruption perception. Rankings are based on athree-year average of quality-of-life assessments.
Top and Bottom Rankings
Happiest countries:
Finland (8th year in a row)
Denmark
Iceland
Sweden
Netherlands
Least happy countries:
Zimbabwe
Malawi
Lebanon
Sierra Leone
Afghanistan
TheUnited Statesfell to its lowest ranking ever, moving from 11th in 2012 to 24th in 2024. The report also highlights age differences: Americans60 and olderare among the happiest globally, while thoseunder 30report the lowest life satisfaction and social connection. Interestingly,sharing meals correlated strongly with stronger social bonds.
A Reminder About Human Kindness
Amid all the statistics, there’s hopeful news: people are oftenkinder than we think. The “wallet drop” experiment in North America found that two-thirds of wallets were returned—far more than participants expected.
“Happiness isn’t just about wealth or growth – it’s about trust, connection, and knowing people have your back. If we want stronger communities and economies, we must invest in what truly matters: each other.”
— Jon Clifton, CEO of GallupWeekly Focus – Think About It
“Happiness is not something ready made. It comes from your own actions.”
— Dalai Lama