Three Tax Priorities Investors Need to Know Going into 2026 

Six Things You Should Know

1. Equity Markets – were mixed this week with U.S. stocks (S&P 500) down -0.37% while international stocks (EAFE) were up +0.43%.
2. Fixed Income Markets – were up this week with investment grade bonds (AGG) increasing +0.07% and high yield bonds (JNK) gaining +0.07%.
3. U.S. GDP – Most recent updates to Q3 data show that the U.S. economy grew by 4.4% annualized, beating expectations. Upward revisions to business investment and net exports were enough to offset downward revisions to consumption. The “Core” GDP reading (Consumer Spending, Business Fixed Investment, and home building) grew at 2.9%. 
4. Personal Incomes – Both wages and spending were up to kick off the 2025 Holiday season, with incomes up 0.3% while consumption rose 0.5%. Year-over-year personal incomes for Americans are up 4.3%, while spending rose 5.4%. 
5. Cybersecurity Reminder- Scammers are increasingly using Remote Access Tools (RATs) along with phishing emails or texts to take control of devices like phones, tablets, and computers. Once installed, these tools can give cybercriminals access to sensitive information, including your Schwab accounts. These attacks can be hard to spot, so if something doesn’t feel right- like unusual account activity or suspicious messages- trust your instincts. If you sense suspicious activity, please call us immediately or report any concerns to Schwab at 800-515-2157. 
6. Key Insight – [VIDEO & ARTICLE] Lots of us think April is the time to focus on taxes, but prioritizing a few things early in the year can help build a more robust tax strategy. This week, Amy Jo and Daryl detail three things to prioritize.

Insights for Investors

By Daryl Geffken 

Three Tax Priorities Investors Need to Know Going into 2026 

Are you curious about tax issues to prioritize going into 2026? Stay tuned for our top three! 

Today we’re talking about three tax priorities investors should be thinking about as we head into 2026.  

Tax planning isn’t just something you do in April—it’s an ongoing strategy that can significantly impact your after-tax returns and long-term financial outcomes. Over the next few minutes, we’ll walk you through three areas where smart planning can make a real difference.  

Priority One: Capital Gains and Loss Planning 

The first priority is being intentional about capital gains and losses.  

How and when you realize investment gains matters just as much as how much you make. Long-term capital gains are taxed differently than short-term gains, and higher-income investors may also be subject to the Net Investment Income Tax.  

Without planning, it’s easy to trigger unnecessary taxes—especially when selling appreciated assets during high-income years.  

One of the most effective tools investors have is tax-loss harvesting. Realizing losses can offset gains today and, in some cases, future gains as well. Another strategy is spreading gains over multiple tax years rather than realizing everything at once.  

The key takeaway here is timing. Coordinating investment decisions with income planning can improve after-tax results without changing your overall investment strategy.  

Priority Two: Retirement Contributions and Distributions 

The second priority involves retirement accounts—and this is where taxes often catch investors off guard.  

Contribution limits continue to rise, which means more opportunities to save in tax-advantaged accounts. At the same time, recent rule changes are pushing some higher-income investors toward Roth treatment for certain contributions, meaning taxes are paid now rather than later.  

On the distribution side, required minimum distributions can significantly increase taxable income in retirement. That can impact not only income taxes, but also Medicare premiums and the taxation of Social Security benefits.  

This is why Roth conversions can be powerful—especially in years when income is temporarily lower. Converting strategically can reduce future required distributions and help manage taxes over your lifetime.  

The goal isn’t to eliminate taxes. It’s to control when you pay them.  

Priority Three: Estate, Gifting, and Deduction Planning 

The third priority looks beyond your own lifetime.  

Estate and gift tax exemptions may change in the coming years, which could expose more wealth to taxation without proper planning. At the same time, deduction limits have reduced the effectiveness of some traditional strategies.  

That doesn’t mean planning opportunities are gone—it means they need to be more intentional. Tools like donor-advised funds, qualified charitable distributions, and strategic gifting can still provide meaningful tax benefits when used correctly.  

Estate planning works best when it’s proactive. Waiting until the rules change often limits your options.  

As we approach 2026, the most important takeaway is this: tax planning works best when it’s integrated, forward-looking, and personalized.  

Review your tax strategy now. Allow us to help model scenarios rather than relying on guesses.  

If you haven’t reviewed your tax strategy recently, now is the time. Planning ahead—rather than reacting—can help protect your wealth and improve long-term outcomes.  

Have a wonderful weekend, 

Daryl and the team at TEN Capital 

Data, Just the Data

• U.S. Jobless Claims – initial claims fell by 1,000 last week to 200,000, well below expectations of 212,000 claims. Continuing claims also fell by 26,000 to 1,849,000. 
• U.K. Retail Sales – rose 0.4% month over month in December despite expectations for a decline. Year-over-year sales are up 2.1%  

• U.S. Housing Starts – fell by 4.6% in October to a seasonally adjusted rate of 1.246 million units. This marks the lowest reading since Q2 of 2020.  
• U.K. Unemployment – rate unchanged at 5.1% in November but remains at its highest level since March 2021.