INSIDER January 2026 In This Issue 2 Q4 2025 Review and Initial Outlook for 2026 3 What’s New for 2026: Tax Brackets and Retirement Contribution Limits 4 When Should Retirees Consider Downsizing or Selling Real Estate? 6 Sometimes Even the Happiest of Farewells are Difficult! 7
Team News
Q4 2025 Review and Initial Outlook for 2026 Brandon Cawley, CFA®
Director of Investment Management Brandon.Cawley@MWAteam.com
Financial markets once again exceeded expectations in 2025. Despite notable policy headwinds—including tighter government spending, uncertainty around tariffs, aggressive immigration reform, and a softening labor market—equities delivered double-digit gains while fixed income generated mid- to highsingle-digit returns. Diversification proved essential, as international markets outperformed the U.S. and dispersion across sectors and factor exposures remained elevated.
As we look toward 2026, the benefits of diversification remain clear. The S&P 500 has now returned more than 17% annually for three consecutive years, leaving valuations somewhat stretched. Index concentration remains high, and while many highly appreciated sectors may still have room to grow, we see increasing opportunity in more under-owned areas of the market that could generate alpha relative to passive indices. Internationally, equity market performance has been driven largely by more accommodative policy frameworks, as economic growth outside the U.S. has generally lagged. In 2026, this dynamic may begin to reverse, with global economies strengthening as ultraaccommodative policies gradually become less so at the margin.
Setting the Stage for 2026 Although U.S. policy is likely to become more supportive, risks in the labor market persist. Employment conditions weakened meaningfully in the second half of the year, with job growth averaging fewer than 17,000 additions per month since June—down sharply from over 100,000 per month in the first five months of the year and more than 200,000 per month in both 2023 and 2024. The unemployment rate rose to 4.7% in November, its highest level since September 2021. This combination of moderating employment and elevated equity valuations represents a key risk in the early part of 2026.
Portfolio Implications Several portfolio adjustments were implemented heading into year-end. We reduced exposure to more cyclical value equities and reallocated toward quality growth, reflecting our expectation that these companies would continue to outperform until the impact of OBBBA-driven spending becomes more evident. Quality growth is also expected to be more resilient in a downside scenario where unemployment rises meaningfully.
That said, several policy measures are positioned to offset some of this weakness. The One Big Beautiful Bill Act is expected to meaningfully support domestic capital expenditure through tax incentives for business investment, along with the individual tax rebates anticipated in the second quarter. Additionally, a newly appointed Federal Reserve Chair will likely advocate for a lower federal funds rate than currently projected, potentially unlocking credit creation among smaller, less profitable banks and materially increasing lending activity. Assuming labor market conditions stabilize, these dynamics could drive a re-acceleration in industries that lagged during the restrictive monetary policy and countercyclical policy mix of 2025. A key risk to this outlook would be a renewed uptick in inflation, which has remained surprisingly stable in recent months.
We also reallocated a portion of our smaller-cap emerging markets exposure into an Asia-focused technology and innovation fund. In our view, innovative Asia-based companies remain undervalued relative to comparable U.S. peers, despite benefiting from many of the same global tailwinds. While we maintain these views, we do not believe prediction alone constitutes a sound investment process. As the opportunity set evolves, portfolios will be adjusted accordingly. A dynamic market environment requires an adaptive approach, and we will continue to monitor and allocate capital to areas that best support our clients’ longterm objectives and financial plans.
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What’s New for 2026: Tax Brackets and Retirement Contribution Limits Louis ‘Louie’ Wilson, CFP®, CIMA® Senior Planning Analyst louis.wilson@MWAteam.com
As we approach the 2026 tax year, the IRS has announced key updates that may affect your tax planning and retirement savings strategy. These updates include inflation-adjusted federal income tax brackets, higher standard deductions, and increased retirement plan contribution limits.
2026 Federal Tax Bracket Adjustments
Tax Rate
Single Filers
Joint Filers
For 2026, the federal income tax system continues to use seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The income ranges for each bracket are adjusted upward for inflation, meaning you can earn more before moving into a higher tax rate. Here are the approximate 2026 taxable income thresholds by filing status:
10%
up to $12,400
up to $24,800
12%
$12,400 up to $50,400
$24,800 up to $100,800
22%
$50,400 up to $105,700
$100,800 up to $211,400
24%
$105,700 up to $201,775
$211,400 up to $403,550
32%
$201,775 up to $256,225
$403,550 up to $512,450
The standard deduction also increases for 2026: $16,100 for single filers and married individuals filing separately, $24,150 for heads of household, and $32,200 for married couples filing jointly. Taxpayers 65 or older and those who are blind can claim additional standard deductions. These increases reduce your taxable income before the brackets apply.
35%
$256,225 up to $640,600
$512,450 up to $768,700
37%
over $640,600
over $768,700
Retirement Plan Contribution Limits for 2026 The IRS has also raised contribution limits for many retirement accounts, giving you more room to save taxefficiently:
Important Note on Catch-Up Contributions
Planning Considerations for 2026 1. Adjust your contribution strategy early. If you’ll be subject to Roth-only catch-up rules, plan for the fact that your taxable income may increase since you’ll lose the pretax deduction on catch-up dollars.
401(k), 403(b), 457(b), and Thrift Savings Plans:
$24,500
2. Increase retirement contributions in January. Spreading contributions throughout the year makes it easier to reach the higher limits.
Employee deferral limit Catch-up contribution
$8,000 for age 50 and over
3. Review your Roth vs. Traditional mix. With Roth-only catch-ups, some clients may want to adjust their base (non-catch-up) contributions to maintain their preferred tax balance.
$11,250 “Super” catch-up unchanged
$72,000
contribution for ages 60-63
Total employee plus employer limit
4. Reevaluate your tax withholding. With updated brackets and Roth catch-up rules, you may need to update withholding or estimated payments to avoid surprises at tax time.
Traditional and Roth IRAs:
$7,500
Annual contribution limit
5. Take advantage of other tax-advantaged accounts. HSA and FSA contribution limits are also rising for 2026, offering additional ways to save efficiently.
IRA catch-up
$1,100 contribution (age 50+)
Under the SECURE 2.0 legislation, beginning in 2026, all catch-up contributions for individuals earning more than $145,000 in wages from their employer must be made as Roth contributions. This applies to 401(k), 403(b), and governmental 457(b) plans.
Key Takeaway The 2026 tax year brings higher retirement contribution limits, inflation-adjusted tax brackets, and new rules requiring certain catch-up contributions to be made as Roth. Reviewing your tax projections and retirement savings strategy early can help you stay ahead of these changes and make the most of the planning opportunities they create.
This means: • Catch-up contributions will not be tax-deductible for higher-earning employees. • Contributions will grow tax-free in a Roth account. • This rule does not affect regular (non-catch-up) employee deferrals. 3
When Should Retirees Consider Downsizing or Selling Real Estate? John ‘Jack’ Lombardo, CFP®
One of the most common questions retirees face is if and when they should sell their real estate. This applies to rental properties, vacation homes, and primary residences that no longer fit a family’s needs.
Senior Planning Analyst Jack.Lombardo@MWAteam.com
So, when is the right time to sell? As with most financial planning decisions, the answer is different for every household. There is no universal age or market condition that makes selling the “right” move. Instead, the decision should be driven by how the property fits into your lifestyle, cash flow, and long-term plan. Below are several reasons retirees may want to consider selling or exchanging their real estate.
1. Y ou’re Feeling Overwhelmed by Maintenance and Upkeep This is often the number one driver behind a decision to sell, because it applies to all types of real estate. For rental properties, rising maintenance costs, insurance, and property taxes can quietly erode cash flow. If expenses are growing faster than rental income, or if managing the property feels like a job, it may make sense to sell before the property becomes a drag on retirement income. For vacation homes, the question is often one of efficiency. If annual upkeep, taxes, and insurance far exceed what it would cost to rent a comparable property for the same amount of time, it may be worth evaluating whether that equity could be put to better use elsewhere. For primary residences, maintenance can become more burdensome with age. Tasks like landscaping, snow removal, painting, and minor repairs can shift from manageable to stressful, turning what was once a source of pride into a source of frustration.
2. Your Home No Longer Fits Your Needs Many retirees hope to age in place in the home they’ve built over the years. However, physical realities can make that more difficult over time. Common challenges include: • Stairs that limit access to parts of the home • Long or steep driveways and walkways • Ongoing landscaping demands • Bathrooms or layouts not designed for aging safely This consideration also applies to empty nesters who find themselves maintaining large homes with many unused rooms. Planning ahead is critical. One-story homes and properties designed for aging in place are becoming harder to find due to limited housing supply. Waiting until a move becomes urgent can reduce both options and negotiating power. 4
3. You’re Looking for a Lifestyle Change Retirement often brings a shift in priorities. Some retirees want to travel more, live closer to family, or reduce day-today responsibilities. Others want to relocate to a lower-tax state or a community with better access to healthcare and amenities. In these cases, selling or downsizing may not be about finances alone. The decision to sell may be about aligning assets with how you actually want to spend your time. A home that once supported a busy family life may no longer match your vision for retirement.
4. R eal Estate Represents a Large Portion of Your Net Worth Many retirees are “asset-rich” but cash-flow constrained, with a significant percentage of their net worth tied up in real estate. Selling or downsizing can: • Improve liquidity • Reduce concentration risk • Create more flexibility in retirement income planning This doesn’t mean real estate is a bad investment, but it does mean it should be evaluated alongside the rest of your financial picture.
5. Tax and Planning Opportunities Are Driving the Decision The timing of a sale can have meaningful tax implications, including: • Capital gains exclusions on a primary residence • Depreciation recapture on rental properties • Opportunities to exchange rather than sell outright In many cases, the decision to sell is less about market timing and more about after-tax outcomes and long-term planning efficiency. The bottom line is that there is no single “right” time to downsize or sell real estate in retirement. The best decisions are made when lifestyle goals, cash flow needs, taxes, and emotional readiness are all considered together. For many retirees, the question isn’t whether selling makes sense, it’s when and under what circumstances it best supports the retirement they want to enjoy.
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Sometimes Even the Happiest of Farewells are Difficult! Mary Goles, FPQP™, aPHR® Director of Operations mary.goles@MWAteam.com
It’s been a great run, but effective February 1, 2026, our very own Denise Poferl will be retiring. Her last day will be Friday, January 30.
A brief history of Denise’s long career: Over 30 years ago, Denise answered an ad for a parttime job opening, for an administrative assistant for Financial Advisor, James Kenney. Having worked for Commercial Credit in Baltimore City, then leaving to raise her three daughters, Denise thought this was the perfect opportunity to get back into the workforce. Her experience was with budgets and spreadsheets, but she found this administrative job to be quite different and decided to give it a try.
She is our go-to person for estate settlements. Denise has always been known around here as the “ultimate team player.” She comes to work every day with a smile on her face and the best attitude of anyone we know. She loves the clients and they love her, and her willingness to help is endless.
Jim was a great teacher, and she learned so much from him. He encouraged her to read and learn everything she could about the business.
For me personally, I will miss Denise’s sense of humor. She somehow finds humor in almost everything and her laughter is contagious in the office.
Denise grew to love this business and the clients with whom she worked, and the feeling was mutual.
So, what’s next for Denise? First on the agenda is a trip planned to Riviera Maya in Mexico, with friends, to celebrate her retirement. Denise loves to travel and experience new places and things, so we’re sure there will be more trips in the future!
When Jim retired in 2009, he sold part of his book of business to Peter, and Denise started working for us part-time, as she knew the clients and we felt it would be comforting for them to continue to work with a familiar face. To date, many of Jim’s clients are still part of the MWA family.
She also has some projects around the house to tackle, plans to take a Pilates class, do some volunteer work, and will have more time to work in her gardens.
In 2014, Peter formed Maller Wealth Advisors (MWA), and we provided Denise with the opportunity to work with us full time, which she happily accepted.
Whatever she chooses to do, we wish her all the best and we know that you do as well!!
Denise has been an invaluable part of our team. She obtained her Life & Health insurance license and the FPQP certification (Financial Paraplanner Qualified Professional), which enhanced her credibility as a team member.
Denise, we mean this sincerely…you will be greatly missed!!
Denise’s long-time experience, knowledge and expertise have been a tremendous asset to our team.
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Team News Website Update! We’ve recently updated our website at www.mallerwealthadvisors.com. The refreshed design offers a new look and feel while highlighting our team, services, and philosophy. We invite you to visit and see what’s new.
Luke & Bri Please join us in congratulating Luke and Brianna Charlton on the arrival of their first child, Jack Lee Charlton. Jack was born on October 15, and we’re happy to report that both mom and baby are doing wonderfully. From what we can already tell, parenthood suits Luke and Brianna perfectly and we couldn’t be more excited for their growing family.
Eric & Allison Also, earning our congratulations are Eric & Allison McIntyre who ran and finished the Philadelphia Marathon on November 23. This was their first full marathon, and Eric tells us that the amount they learned about themselves and what it takes to accomplish a goal like this was beyond words. They began training in July, making sacrifices and compromises in order to be prepared. They crossed the finish line in 3 hours and 58 minutes, just narrowly achieving their goal time of sub 4 hours. Eric stated “Throughout this process, I saw and experienced the full range of human emotions; joy, pain, anticipation, exhaustion, celebration, and disappointment. I feel incredibly grateful that I was able to have this experience. I learned so much about myself. It was an amazing moment that I’ll never forget, and the fact that Allison and I crossed together made it all the more special.” We commend Eric and Allison on their commitment, dedication and diligence on achieving this amazing feat!! Our team participates in many events throughout the year. In the last quarter of the year, we participated in the following:
CHARM Rescue
Our team came together for our second charitable event of the year at CHARM Rescue in Howard County, a local organization dedicated to helping homeless animals, primarily dogs and cats. Working side by side, our team spent the day transforming sections of the shelter’s haunted trail with spooky Halloween décor and characters in support of the fundraiser. The event brought families from the community together, with donations benefiting the rescue and children enjoying candy along the trail. It was a great opportunity to collaborate outside the office, give back as a team, and support a cause we care about.
Cookie Swap
Our annual holiday cookie swap is a favorite team tradition, and once again, our team brought both creativity and cheer to the table. From bright, citrusy treats to rich chocolate and caramel favorites, everyone shared homemade goodies to celebrate the season. It’s a welcome chance to pause during a busy time of year, enjoy lunch together, and celebrate the holidays as a team. Moments like these reflect the warm, connected culture we value especially during this festive season.
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Connect With Us Phone 410-771-5560 Fax 443-589-0330 www.mallerwealthadvisors.com www.linkedin.com/company/mallerwealthadvisors/ www.Facebook.com/MallerWealthAdvisors
How to Reach Us Wealth Advisory Services Matthew Aversa, ChFC® – Managing Partner, Financial Planner | Matthew.Aversa@MWAteam.com Devon G. Gluck, CFP®, CIMA® – Partner, Financial Planner | Devon.Gluck@MWAteam.com John E. Layug, MBA, CFP®, AEP® – Partner, Financial Planner | John.Layug@MWAteam.com Brandon Cawley, CFA® – Director of Investment Management | Brandon.Cawley@MWAteam.com Luke Charlton – Planning Analyst | Luke.Charlton@MWAteam.com Cristina “Tina” Kothari, MBA, CDFA™ – Associate Director | Tina.Kothari@MWAteam.com John “Jack” Lombardo, CFP® – Senior Planning Analyst | Jack.Lombardo@MWAteam.com Eric McIntyre, CFP® – Senior Planning Analyst | Eric.McIntyre@MWAteam.com Jonathan Webb, CFP®, MBA – Senior Planning Analyst | Jonathan.Webb@MWAteam.com Louis Wilson, CIMA®, CFP® – Senior Planning Analyst | Louis.Wilson@MWAteam.com Zellie Wothers, CRPS®, CFP® – Associate Director/401k Specialist | Zellie.Wothers@MWAteam.com
Operations and Scheduling Mary Goles, FPQP™, aPHR® – Director of Operations | Mary.Goles@MWAteam.com
Administrative Support and Implementation Kara Scott, FPQP™ – Director of Administration | Kara.Scott@MWAteam.com Denise Poferl, FPQP™ – Senior Implementation Specialist | Denise.Poferl@MWAteam.com Jennifer Schepers – Implementation Specialist | Jennifer.Schepers@MWAteam.com Deletha Chiu – Implementation Specialist | Deletha.Chiu@MWAteam.com
Securities and investment advisory services offered through Osaic Wealth, Inc, member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/ or marketing names, products or services referenced here are independent of Osaic Wealth. Osaic Wealth and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances. Branch address: 201 International Circle, Suite 100, Hunt Valley, MD 21030 Opinions expressed are those of Maller Wealth Advisors and not necessarily those of Osaic Wealth. Forward looking statements may be subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied.
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