2025 delivered one of the most resilient economic outcomes imaginable given the policy shocks introduced early in the year, including trade-war concerns, immigration crackdowns, and shifting political dynamics, yet markets absorbed these developments with remarkable composure.

International leadership finally broke through

U.S. equity concentration persisted

U.S. leadership remained narrow, with only two of the “Magnificent Seven” outperformed the broader market in 2025. Sector leadership was led by:

The small-cap renaissance

Crypto

Gold and silver

Fixed income: “Fiscal dominance” entered the conversation

Despite Fed cuts, the 10-year Treasury yield ended the year around 4.16%, defying assumption that cuts automatically translate into lower yields.

2026 Macroeconomic Outlook

We expect real GDP growth of roughly 1.8% to 2.3%. This represents a deceleration from 2025’s stronger pace but remains respectable for a mature economy with an aging population.

The U.S. economy should continue to be supported by large infrastructure, clean-energy, and domestic manufacturing incentive programs. The latest fiscal package adds another burst of spending velocity in 2026, reshaping relative value across sectors and accelerating deployment.

By year-end 2025, the U.S. was adding only about 50,000 jobs per month, a sharp slowdown from 2024. Unemployment rose to 4.6%, the highest level since 2021. In a traditional cycle, those figures would signal recession risk. Yet in 2025 the consumer kept spending, companies kept investing, and the economy kept moving. We expect this underlying resilience to persist in 2026.

Sector and Asset Class Positioning: What we expect to pay off in 2026

We maintain neutral U.S. market exposure overall, with portfolio overweights to:

International Outlook: Opportunity outside the U.S.

Opportunities remain abundant outside the U.S. in 2026. We expect to focus international exposure as follows:

Fixed Income Outlook

Following the announcement of Kevin Warsh as the new Chair of the Federal Reserve, we expect:

Gold and Silver Outlook

Following heavy speculative positioning in silver and gold’s persistent rally in January, we observed a blow-off top marked by unusually large intraday reversals (approximately -30% in silver and -12% in gold).

Looking ahead to 2026, the dispersion between the physical and paper markets remains wide. We expect this gap to narrow over time; after a period of consolidation and churn, the metals could resume a gradual grind higher. We do not plan to add at current levels, but we will maintain our existing positions.

Closing Thoughts: Conviction Requires Execution Discipline

This sets the central question for 2026: will AI translate into higher software sales and durable pricing power, or will it compress the sector by lowering barriers to entry? With the One Big Beautiful Bill allowing 100% expensing in year one, we expect elevated capex and continued investment by Big Tech to function as a form of stimulus.

The current administration’s policy posture appears supportive of business investment and equity markets. It remains prudent to stay invested in line with your risk profile. However, successful investing is not about having the “right” macro narrative—it is about executing that narrative with discipline:

The 2026 landscape combines compelling opportunity with meaningful risk. An easing Fed, fiscal deployment, and transformative AI investment provide real tailwinds for equities. Yet labor-market ambiguity, sticky inflation, and valuation concentration demand portfolios built to both participate and endure.

We intend to capture a broadening opportunity set including small caps, selected cyclicals, and international value while avoiding concentration risk that can masquerade as conviction.

High-net-worth investors are often described as if they have an “infinite” tolerance for risk — the assumption being that once you have enough money, market swings don’t matter.

Meaningful losses feel as real at $10 million as they do at $1 million. Wealth may increase your capacity to withstand volatility, but it doesn’t automatically raise your comfort level with it. In many cases, it does the opposite: once you’ve built something substantial, the fear of going backward can become even more intense.

At Grey Ledge Advisors, we believe the right question isn’t, “How much risk can I theoretically afford?” but rather, “How much risk do I actually need — and how much can I live with without losing sleep?”

Below, we explore three key ideas:

The Myth of Infinite Risk Tolerance

We see two common misconceptions among affluent investors:

1. “I’m wealthy, so I should be aggressive.” Higher net worth does expand risk capacity. You likely have more time, more flexibility, and more cushion for short-term volatility. But that doesn’t mean you must or should take maximum risk. If a 25–30% market drawdown would cause you to change course at the worst possible moment, the portfolio is too aggressive—regardless of your balance sheet.

2. “Playing it safe means staying in cash.” On the other side, some investors respond to uncertainty by piling into cash or ultra-short-term instruments. While liquidity has an important role, staying too conservative for too long can quietly erode purchasing power once inflation and taxes are factored in.

The goal is not to be labeled as “aggressive” or “conservative.” The goal is to be appropriately exposed to risk in a manner that aligns with your goals, time horizon, and temperament.

Determining Your Real “Pain Point”

Most risk questionnaires attempt to quantify your comfort with volatility on a scale. That can be a helpful starting point, but it often overlooks the emotional reality of managing a portfolio over time.

We focus instead on understanding your pain point — the point at which market losses would cause you to feel compelled to change course. To get there, we ask practical, scenario-based questions, such as:

We then overlay this with a detailed financial plan. The aim is to align risk tolerance (what you can emotionally handle) with risk capacity (what your financial situation can bear), so that the portfolio stays within a zone where you are unlikely to panic or feel forced into making poor decisions.

Why We Prioritize Public Markets

You may read that many wealthy investors build portfolios heavily tilted toward private equity, private credit, venture capital, or other illiquid “alternative” investments.

While these strategies have their place for certain investors, our investment philosophy prioritizes liquidity, transparency, and flexibility.

We believe public markets are sufficient: High-quality stocks and bonds provide robust tools to build diversified portfolios for the families we serve, without the need for opacity.

We value access to capital: Many private investments come with long lockups (often 7–10 years), limited information, and complex fee structures. We believe you should have access to your wealth when you need it, or when market opportunities shift.

Complexity vs. Benefit: In our experience, the illiquidity and complexity of private investments often conflict with the desire for a simplified, streamlined financial life.

For these reasons, we prefer to seek long-term results through well-designed, diversified portfolios of public securities, where risks, costs, and tax implications are clearly understood.

Strategies to Manage Volatility

Once we understand your objectives and pain points, we design a structure—practical measures that help limit the impact of market shocks and reduce the likelihood of emotionally driven decisions.

Some of the key strategies we employ include:

Diversification across public asset classes.

A thoughtful mix of global equities and high-quality fixed income can help buffer shocks in any one area of the market. Within equities, diversification across sectors, styles, and geographies helps reduce the risk that a single theme or region derails your plan.

Liquidity for near-term spending.

Rather than stretching for return with illiquid vehicles, we typically advocate holding enough cash and short-term fixed income to cover several years of planned withdrawals. Knowing that near-term spending needs are funded can make it psychologically easier to remain invested through market cycles.

Limits on concentration risk.

Many high-net-worth investors accumulate concentrated positions — often through the sale of a business, stock compensation, or legacy holdings. We work to define clear parameters for prudent exposure to a single company or sector, and we may design gradual diversification strategies to reduce risk over time while managing taxes effectively.

Rebalancing with discipline.

Market volatility can cause portfolios to deviate from their target allocation, inadvertently transforming a moderate portfolio into an aggressive one during bull markets. Systematic rebalancing fosters a discipline that maintains consistent risk exposure with your plan, regardless of market sentiment.

Tax-aware implementation, not tax-driven risk.

Tax considerations matter, but they should not dictate your risk level. Techniques such as tax-loss harvesting and thoughtful asset location can enhance after-tax outcomes without forcing you into strategies or risk levels that don’t align with your comfort zone.

Stress-Testing: Seeing Risk Before You Feel It

Understanding that “markets go up and down” is one thing; seeing how your own portfolio might behave in a severe downturn is another.

We routinely stress-test portfolios using historical and hypothetical scenarios—for example:

By modeling these outcomes in advance, you gain a clearer understanding of potential drawdowns, recovery paths, and liquidity requirements. That, in turn, helps ensure that your chosen level of risk is one you can realistically live with before the next crisis arrives.

Intentional Risk, Not Accidental Risk

There is no such thing as a risk-free portfolio. The real question is whether the risks you are taking are:

For high-net-worth investors, “how much risk is too much” is ultimately personal. The correct answer strikes a balance between your desire for growth and your need for stability, taking into account your time horizon and emotional comfort with volatility — utilizing tools that are transparent, liquid, and aligned with your values.

At Grey Ledge Advisors, our role is to help you define that balance and build portfolios that respect both sides of the equation: protecting what you’ve worked hard to build, while still giving your capital an opportunity to grow.

This material is for informational purposes only and is not intended as individualized investment, tax, or legal advice. Opinions expressed are subject to change without notice. All investing involves risk, including the possible loss of principal. Diversification and asset allocation do not ensure a profit or guarantee against loss in declining markets. Past performance is not indicative of future results.

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Grey Ledge Advisors (GLA), a wholly owned subsidiary of Ascend Bank, is pleased to announce the appointment of Michael Schulitz, CFP®, CAIA, as President. Michael joins GLA as the firm continues its strong trajectory of growth and commitment to delivering an exceptional client experience.

In his new role, Michael will report to Ken Russell, who remains the firm’s Chief Executive Officer, focusing on the firm’s vision and strategic direction, as well as seeking new opportunities for inorganic growth.

“Our success has always been built on the strength of our people and the trust of our clients. Mike brings both deep expertise and genuine care for clients, and I’m proud to support him as he takes on this leadership role,” said Russell.

Over the past five years, Grey Ledge Advisors has grown from just over $200 million in assets under management to more than $620 million as of October 31, 2025—a testament to the firm’s disciplined approach, personalized guidance, and the trust clients continue to place in its team.

Mike brings more than two decades of experience in investment management, financial planning, and institutional leadership, including senior roles with RMC Investment Advisors, Withum Insurance Advisory, Voya Financial, Wilshire Associates, and Lincoln Financial Group. His extensive background in portfolio management, capital markets, and strategic client advising aligns seamlessly with GLA’s mission of providing thoughtful, high-touch financial guidance.

A Certified Financial Planner® and Chartered Alternative Investment Analyst, Michael holds an MBA in Finance and Marketing from New York University’s Stern School of Business and a B.S. in Mathematics from Union College. He is also an active member of his local community, serving on the Town of Simsbury Sustainability Committee.

“We’re excited to welcome Mike to Grey Ledge Advisors,” added Russell. “His leadership and expertise will help us build on our strong foundation and continue delivering the kind of personal, trusted service our clients expect.”

Michael lives in Simsbury with his wife and two sons.

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Many small business owners wonder if their company is financially and organizationally ready to offer a retirement savings plan (such as a 401(k) or IRA-based plan) to employees. It’s an important decision that involves weighing your business’s financial health, the needs of your workforce, the types of retirement plans available, and how to sustain the plan over the long run.

In the United States, there is no federal requirement for employers to offer a retirement plan. However, this is not the case at the state level, as several states have enacted mandates to employers to offer a qualified retirement plan or facilitate enrollment in a state-sponsored program. Connecticut now requires employers with five or more employees to enroll in MyCTSavings if they do not offer a qualified private savings plan.

Offering a plan can yield benefits in terms of employee satisfaction and retention. Yet, 43% of U.S. small businesses (those with fewer than 100 employees) do not offer any retirement benefits. Surveys show that cost (cited by 37% of employers) and administrative complexity (22%) are the primary barriers.   

This article breaks down the key factors to help you decide if your small business is positioned well enough to start a retirement savings plan.

Assess the Financial Health of Your Company

Before adding any new benefit like a retirement plan, take a hard look at your business’s finances. Is your cash flow stable and sufficient to handle the extra costs of a retirement program? A period of consistent revenues or a recent growth milestone can be a green light – increased, steady cash flow is a key indicator that you may be ready to implement a plan.

You will need to be confident that your company can cover any employer contributions (if you choose to offer matching or profit-sharing) as well as administrative expenses such as plan setup fees or ongoing maintenance costs. It is essential to determine if your business is financially stable enough to handle the administrative costs of a plan.

Additionally, federal incentives enacted as part of the SECURE 2.0 Act can significantly offset expenses. These credits are twofold:

  1. Plan Startup Credit: For businesses with 50 or fewer employees, this credit covers 100% of eligible startup and administrative costs, up to $5,000 per year for the first three years. For businesses with 51-100 employees, the credit covers 50% of those costs, up to a maximum of $5,000.   
  2. Employer Contribution Credit: A new credit is available for businesses with 50 or fewer employees. It provides a credit for employer contributions, capped at $1,000 per employee (earning less than $100,000). This credit begins at 100% of contributions in the plan’s first two years and gradually phases out over a five-year period.   

Beyond these credits, remember that any employer contributions you make (such as a 401(k) match or profit-sharing) may be tax-deductible as a business expense.

It’s also wise to consider your own financial goals here. As a small business owner, you need retirement savings too – offering a plan can give you a tax-advantaged way to start building your own nest egg for the future. If your company’s profits allow, contributing to a retirement plan on your own behalf (while benefiting from the same tax-deferred growth as your employees) can be a smart move. In sum, if your company has achieved consistent profitability, built some financial cushion, and can budget for the additional costs (especially with tax incentives in play), it’s a sign you might be financially ready to offer a retirement savings plan.

Consider Your Workforce 

Your employees’ characteristics and needs are the next primary consideration. Start with the basics: How many people do you employ, and what is the makeup of your team? As your workforce expands, offering benefits such as a retirement plan becomes increasingly important to attract and retain top talent. In a competitive job market, workers are increasingly expecting employers to assist with retirement savings as part of a comprehensive benefits package.

Small businesses sometimes assume their employees aren’t interested in a retirement plan. However, surveys show that uninterested employees are rare (only about 17% of employers cited lack of employee interest as a reason for not offering a plan). Offering a retirement benefit can help attract and retain top talent who might otherwise choose a company with better benefits.  

Consider your team’s unique situation. Do you have key long-term employees you want to reward and keep? Are you competing for skilled workers in an industry where benefits make a difference? A 401(k) or similar plan can be a powerful retention tool, signaling that you’re investing in your employees’ future. Retirement plan options are available even for owner-only businesses (via a Solo 401(k) or SEP IRA) or those with a small staff. Employees of all ages and income levels can benefit from having an easy mechanism to save for retirement out of their paycheck.

By considering your workforce’s needs and preferences, you can decide if providing a retirement plan will solve a problem (such as high turnover or low job satisfaction) or confer a competitive advantage in recruiting.

Research the Available Retirement Plans for Small Businesses 

If you decide to explore offering retirement benefits, the next step is to understand the types of plans available for small businesses and the pros and cons of each. Different plans are designed for various situations – for example, some are geared toward very small firms or self-employed individuals. In contrast, others accommodate a growing company with a large number of employees. Here’s an overview of the most common small-business retirement plan options and their features:

401(k) Plans 

A 401(k) is the classic employer-sponsored retirement plan. Employees can contribute a portion of their salary through payroll (pre-tax or Roth), and you, as the employer, may choose to contribute via matching or profit-sharing, though it’s not required. An advantage of a 401(k) is its high contribution limits and flexibility. It allows the most significant total annual contributions of any defined contribution plan, and you can design eligibility, vesting, and contribution matches with considerable flexibility.

401(k)s are also highly valued by employees as a benefit. On the downside, 401(k) plans require more complex administration and may incur higher costs compared to simpler plans. There are annual IRS filing requirements (Form 5500) and nondiscrimination tests to ensure that the plan benefits rank-and-file workers, not just owners or highly paid employees. (Choosing a safe harbor 401(k) design can automatically satisfy testing, but it requires giving a minimum employer contribution to all participants.)   

It is critical to note that due to the SECURE 2.0 Act, 401(k) plans established after December 29, 2022, must generally include an automatic enrollment feature beginning with the 2025 plan year. This requires employers to automatically enroll eligible employees at a default contribution rate (ranging from 3% to 10%), which employees can then opt out of or adjust. Exceptions to this mandate apply, most notably for new businesses (in existence < 3 years) and small businesses (10 or fewer employees).   

For self-employed individuals or owner-only businesses, a Solo 401(k) is an option – it follows the same rules as a traditional 401(k). Still, it covers only the business owner (and spouse), allowing high contributions without the complexity of covering employees.

SIMPLE IRA (Savings Incentive Match Plan for Employees) 

A SIMPLE IRA is a plan created for small businesses with 100 or fewer employees. It lives up to its name in being relatively simple to administer. Employees have the option to contribute part of their salary to their SIMPLE IRA, and the employer must make either a matching contribution (up to 3% of pay) or a fixed contribution (2% of pay for all eligible employees) each year.   

SIMPLE IRAs are generally easier and less expensive to set up and operate than 401(k)s, with no annual IRS filing required (Form 5500) and no complex discrimination testing needed. This makes them attractive for businesses that want to offer a retirement benefit with minimal bureaucracy.   

However, SIMPLE IRAs have lower contribution limits for employees than 401(k) plans, and the required employer contributions are mandatory each year and must vest immediately. Additionally, a business that offers a SIMPLE IRA cannot offer any other retirement plan concurrently. In short, a SIMPLE IRA is designed for small firms seeking a low-cost, straightforward plan, accepting some limitations in exchange for ease of use.

SEP IRA (Simplified Employee Pension) 

A SEP IRA is often ideal for very small businesses or self-employed owners, especially those who want maximum flexibility with contributions. Traditionally, in a SEP, only the employer contributes – contributions are made to each eligible employee’s SEP-IRA account. (Note: SECURE 2.0 introduced provisions that permit employers to offer a Roth SEP feature, which would involve employee contributions, though this is not yet widely available from all providers.)   

The appeal of a SEP is that it’s extremely easy and inexpensive to administer (no annual filings or testing), and the employer can decide each year how much to contribute – even choosing to skip contributions in a lean year. It also allows a relatively high contribution limit per employee (up to 25% of their compensation, capped at an IRS-defined dollar limit). This makes the SEP popular among sole proprietors or small family businesses where the owner wants to contribute significantly in profitable years.   

The drawback is that a SEP must cover all eligible employees with equal percentage contributions. If you contribute 15% of your own pay to your SEP, you must also contribute 15% of each employee’s pay into their accounts. There is no flexibility to reward only certain employees – everyone gets the same percentage, and contributions are immediately vested. Also, since employees generally can’t defer their own salary, the entire funding burden is on the employer. A SEP is best suited for businesses with only a few employees, where the employer is comfortable making all contributions.   

Each of these plan types has variations, but at a high level, those are the main options. It’s important to tailor the plan to your business’s size and objectives. Take the time to research the specifics of each plan type. Being informed about these options will enable you to select a retirement plan that suits your specific situation.

Set It Up for Long-Term Sustainability

Deciding to offer a retirement savings plan is not a one-time event – it’s a long-term commitment. As such, sustainability is key.

Start with a Solid Plan Design: Set up the plan with features that suit your business. If cash flow variability is a concern, utilize the plan’s built-in flexibility – for instance, a SEP IRA allows discretionary contributions. In a 401(k) plan, you can design the employer match as optional or profit-sharing each year (except in safe harbor plans).

Budget and Plan for Contributions: Treat employer contributions (if any) as part of your ongoing compensation budget. In a SIMPLE IRA, you have some flexibility, as you can reduce the 3% match to as low as 1% in two out of any five years. The key is to avoid over-committing. Also, take advantage of any tax breaks available each year – beyond the startup and contribution credits, your business can deduct its contributions. Small businesses may also be eligible for a three-year, $500 annual tax credit to help defray the costs of implementing a mandatory (or optional) automatic enrollment feature.   

Manage Administrative Responsibilities: Running a retirement plan entails ongoing duties, including managing contributions, providing disclosures, filing Form 5500 annually (for 401(k) plans), and ensuring compliance. You don’t have to do this all alone. Many small businesses work with plan providers or third-party administrators. Pooled employer plans (PEPs) are an option that allows multiple small businesses to participate in a single plan. While PEPs allow an employer to transfer many administrative and investment fiduciary functions to the Pooled Plan Provider (PPP), recent Department of Labor guidance clarifies that the employer retains the fundamental fiduciary duty to select and monitor that provider prudently.   

As a plan sponsor, you will have fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA). These include the duties to act prudently, diversify plan investments, follow the plan documents, and act solely in the interest of plan participants. This involves selecting and monitoring investment options, as well as ensuring that plan fees are reasonable. It is important to understand these obligations or consider hiring an advisor to help fulfill them.   

Educate and Engage Your Employees: A retirement plan provides the most value when employees participate. Offer educational resources on how the plan works, the concept of compound growth, and any employer match. For new 401(k) plans (as of 2025), automatic enrollment is now generally mandatory, which helps build a savings culture from day one.   

Periodic Review and Adjustment: Treat your retirement plan as a dynamic component of your overall business strategy. Review the plan annually. Are the fees still competitive? Do the contribution levels still make sense? Keep an eye on legislative changes and consult with your financial advisor or accountant as needed to stay informed.

Offering a retirement savings plan can benefit both your employees and your business. Take the time to assess your company’s financial footing, understand your employees’ needs, compare the available plan options, and plan for a sustainable implementation. By approaching the process thoughtfully, you’ll be able to determine whether your small business is doing well enough to support a retirement plan.

Each situation is unique, so consider consulting with a fiduciary advisor or accountant who can provide guidance tailored to your circumstances. That way, you can move forward confidently, knowing you’ve weighed the considerations and set the stage for long-term success in offering retirement savings to your workforce.

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Planning your legacy is ultimately about stewardship — aligning money with meaning so family, causes, and commitments are cared for long after you’re gone. Below is a practical framework we use with clients to reduce avoidable friction, protect intent, and keep more of what you’ve built in the hands of people and purposes you choose. Because every situation is unique, you should decide on specific steps after consulting a qualified professional who can review your complete financial picture.

Set Up a Comprehensive Estate Plan

A thorough plan does more than distribute assets; it reduces delays and disputes, anticipates taxes, and gives your fiduciaries clear marching orders. At minimum, aim for:

Tax Signposts (2025–2026) You Should Know

Practical To‑Dos:

Identify and Address Potential Conflicts

Most estate blow‑ups aren’t about tax — they’re about people. Common pressure points:

  • Beneficiary designations that contradict the will or trust (remember: designations usually win).
  • Unequal (or “fair but not equal”) bequests among children or across blended families.
  • Illiquid assets (closely held businesses, real estate, collectibles) that are hard to split.
  • Roles and power dynamics: Who’s the executor, trustee, or business successor?

What helps:

Why this matters: Surveys repeatedly show family conflict is a leading source of estate plan failure — beneficiary designations and blended‑family issues often top the list.

Communicate with Your Beneficiaries

Silence can lead to suspicion. Even a brief, well‑structured conversation can head off years of conflict.

A simple agenda we use with families:

  1. Intent & values: Why does this plan exist, and what does a “good outcome” look like?
  2. Roles: Who does what—and why did you choose them (executor, trustee, health‑care agent)?
  3. What’s in scope: Overview of assets (not necessarily dollar amounts), liquidity sources (insurance, cash), and timetables.
  4. Ground rules: How disagreements are resolved and expectations for communication.
  5. Education: Explain the 10‑year timeline and potential annual RMDs under the new IRS rules to heirs inheriting retirement accounts.

When plans are openly discussed, heirs better understand the “why,” and you may dramatically reduce the likelihood of litigation or resentment later.

Review Regularly

Life (and law) changes. We recommend a check‑in every few years, and immediately after major events: marriage/divorce, births/deaths, relocation, liquidity events, buying/selling a business, large charitable commitments, or significant market moves.

What to watch now:

Why is This Urgent?

We are in the midst of the largest wealth transfer in U.S. history. Research projects $84.4 trillion moving through 2045 — most to heirs, with a meaningful share to charities. Planning determines how much of that supports your intent versus getting lost to taxes, delays, and disputes. 

How Grey Ledge Advisors Can Help

As fiduciaries, we coordinate the whole picture—investments, tax‑aware cash flows, trust funding, beneficiary alignment—and work side‑by‑side with your estate attorney and CPA so your documents, titling, and strategy sing from the same sheet of music. If you’d like, we can customize a one‑page action plan from this framework based on your family, assets, and state of residence.

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Divorce is as much a financial transition as it is a personal one. The goal is not to make reactive decisions but to thoughtfully update your financial framework. This guide outlines the key considerations for refreshing your savings, investment approach, and retirement planning after a divorce while keeping tax rules, account mechanics, and long-term goals at the forefront.

Re-establish Your Financial Baseline

Before looking forward, you need a clear picture of your new starting point.

Reframe Your Goals, Time Horizon, and Risk

Your financial plan’s foundation may have shifted. It’s essential to rebuild it with intention.

Update Titles, Beneficiaries, and Authorizations

This administrative task is critically important and often overlooked.

Beneficiaries: Review and update the beneficiary designations on all relevant accounts, including ERISA plans (401(k)s, 403(b)s), IRAs, HSAs, life insurance policies, and annuities. Remember, beneficiary designations on these accounts typically override instructions in a will.

Legal Authorizations: Update legal documents such as powers of attorney and healthcare directives to reflect your current wishes. Review any “Transfer on Death” (TOD) or “Pay

Account Security: Change your passwords and strengthen security with two-factor authentication on all financial accounts. Remove your former spouse from any shared access or authority where it is no longer appropriate.

Understanding Retirement Account Division

Dividing retirement assets involves specific legal and financial processes.

Rebuild a Tax-Aware Strategy

Your tax situation will almost certainly change.

A Post-Divorce Financial Checklist

[ ] Inventory all accounts, secure your logins, and close or retitle any remaining joint accounts.
[ ] Pull and review your credit reports.
[ ] Update beneficiaries on all retirement plans, IRAs, HSAs, and insurance policies.
[ ] Coordinate with legal counsel on any QDRO or IRA transfer.
[ ] Establish a new budget, rebuild your emergency fund, and automate your savings.
[ ] Re-evaluate your risk tolerance and capacity, and update your Investment Policy Statement (IPS).
[ ] Confirm your investment strategy aligns asset allocation and location with your new goals.
[ ] Update your will, powers of attorney, and other estate planning documents.
[ ] Clarify your new tax filing status, withholding, and cost basis on transferred assets.
[ ] Schedule regular financial reviews to track progress and make adjustments.

Navigating Your New Path with a Fiduciary Partner

The checklist above can feel overwhelming, especially during an already emotional time. Making sound, objective financial decisions is challenging when you are navigating so many other changes. This is where a professional partner can provide significant value.

The role of a fiduciary financial advisor is to serve as your thinking partner—helping you bring order, clarity, and discipline to your financial life. At Grey Ledge Advisors, we work with clients to translate their new goals into a coherent and durable financial strategy. This process involves not just reviewing investments, but also helping to coordinate with your legal and tax professionals to ensure all pieces of your financial picture work together.

If you are navigating a divorce and seeking a partner to help you confidently manage this transition, Grey Ledge Advisors is equipped to help you build a clear path forward.

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Throughout your life, you’ve worked hard to pay bills, put food on the table, secure your family’s future, and save for retirement. Still, questions linger: Am I saving enough? Are my investments well-allocated? How should my strategies change as retirement approaches?

Imagine your retirement savings journey as building a house. Initially, you construct a strong foundation and solid framework. Later, you focus on finishing touches and security. Similarly, your investment strategies must evolve, adapting to your life’s changing circumstances.

This guide provides straightforward, age-based principles for retirement investing and outlines how, for most, the investment mix should shift from early career through retirement.

Understanding Age, Risk, and Time Horizon

Successful retirement investing hinges on two key factors:

Time Horizon: The duration until you need access to your money. Younger investors have longer horizons, while older investors nearing retirement have shorter horizons.

Risk Tolerance: Your comfort level with potential losses in pursuit of higher returns.

A longer time horizon typically allows for greater risk, as you have more opportunities to recover from market fluctuations. Conversely, as retirement nears, your risk tolerance should decrease to safeguard your savings.

Early Career Investing: Growth and Opportunity

When beginning your career, your most significant asset is time, allowing you to emphasize growth. Most young investors benefit from a portfolio primarily focused on stocks (equities).

Why Stocks? Historically, equities offer the highest long-term returns. Your extended timeline lets you weather market ups and downs.

Common Allocation: Typically, a large percentage in stocks, with a smaller portion in bonds or other fixed-income investments.

Diversification Matters: Avoid “putting all your eggs in one basket” by investing across different sectors and markets, balancing risk and potential returns.

Mid-Career Investing: Achieving Balance

In your peak earning years, your goals shift toward balancing growth with preservation. Gradually adopting a more balanced portfolio protects your accumulated wealth.

The Importance of Bonds: Bonds, less volatile than stocks, offer stability and steady income, anchoring your investments during market downturns.

Commonly Allocation: As you enter the middle of your career, the mix shifts to incorporate more bonds (approximatelty 25%-35%) and slightly fewer stocks (65%-75%)

Regular Rebalancing: Life events and market changes can shift your investment balance. Periodically adjusting your portfolio—much like rotating your car tires—keeps your financial plan aligned.

Approaching Retirement: Safeguarding Your Savings

As retirement nears, preserving your capital becomes paramount. Your investment focus shifts from aggressive growth toward maintaining your wealth and generating income.

Transition to Income: Shift toward bonds and dividend-paying stocks that provide reliable, steady income streams.

Common Allocation: A conservative approach might include 40-50% stocks and 50-60% bonds and fixed-income investments.

The allocation mixes presented are for illustrative purposes only and reflect commonly used investment strategies. Actual investment allocations should be tailored to each investor’s unique goals, financial circumstances, and risk tolerance. Please consult with your financial advisor to determine the strategy that’s appropriate for you.

The Ease of Target-Date Funds

Target-Date Funds (TDFs) offer a convenient, “set-it-and-forget-it” investment solution. Selecting a life-cycle fund aligned with your expected retirement year allows automatic adjustments to its mix of stocks, bonds, and cash as a specified retirement date approaches. They offer:

  • Automatic rebalancing and a built-in glide path.
  • Broad diversification in a single vehicle.
  • Professional oversight of asset allocation.

Importantly, one size doesn’t always fit all: glide paths, underlying fund costs, and risk profiles vary by provider. Therefore, it’s still important to consult a trusted advisor to make sure your investment solutions align with your unique goals.

Tailoring Your Retirement Strategy

Building a secure retirement requires a dynamic investment strategy that evolves through different life stages. Fundamental principles—starting early, understanding risk, and maintaining appropriate asset allocation—remain constant. Typical investment strategies progress from aggressive growth early in life, to balanced growth during mid-career, and finally shift to capital preservation as retirement approaches.

Simple guidelines, like the “100-minus-your-age” rule or automated tools like target-date funds, provide useful starting points. Yet, they don’t capture your unique risk tolerance, financial goals, and evolving economic conditions.

Ultimately, your financial path is personal. This guide aims to equip you with foundational knowledge, helping you ask insightful questions and make informed decisions. Engage with a qualified financial professional who can tailor these principles to your specific goals, ensuring your retirement plan fits your life perfectly.

More From Grey Ledge Advisors

When the markets entered 2025, they were riding a wave of euphoria, a veritable sugar high born from the 2024 election results. The new administration, with its tagline of being the “Most Business-Friendly” in history, sparked a significant rally. We, however, remained upbeat but professionally skeptical, primarily because of the lack of clarity regarding two critical and potentially disruptive issues: the administration’s Tariff doctrine and the proposed Department of Government Efficiency (DOGE) cuts. Our caution was ultimately validated when the “April Liberation Day” tariff announcements took Wall Street completely by surprise, serving as a stark reminder of the complexities ahead.

Navigating the New Doctrine of Tariffs & Trade

While it is a prudent exercise for any administration to periodically review its trade agreements, it remains to be seen if addressing all of them simultaneously yields more favorable deals or, in fact, worse ones. Some of the administration’s calculations for reciprocal tariff rates have been a headscratcher for us, as they seem to imply that even small countries should purchase U.S. goods in quantities nearly equal to our own. The United States is a wealthy nation, so of course, it will always have different trade dynamics with countries that have lower GDPs per capita. We believe the strategic goal should be to strive for freer markets, with tariffs at or near zero on both sides, to promote robust competition and provide greater access for our companies to new global consumers.

The economic landscape has fundamentally shifted. Today, with service-based companies (primarily software) representing a staggering 40% of the S&P 500‘s market capitalization, and with our economy being a net importer (we import approximately $4 trillion vs. exporting $3 trillion annually), we have departed from our historical doctrine. For decades, America conquered new markets through the commercial and cultural victories of brands like Coca-Cola, McDonald’s, and Nike. Now, as President Trump puts it, the strategy is to “sell access” to our domestic markets in the form of tariffs.

The market had been expecting tariffs in the range of 10%, which made the “Liberation Day” announcement a significant shock. Following the self-imposed August 1st deadline, the market now anticipates an average tariff rate of 14%, excluding those already levied on China. Anything more than this would be detrimental to consumers, who are already showing signs of financial strain. It remains a critical question as to how much of these tariff-related costs will ultimately be passed on to them at the checkout counter.

After the significant market slump in April, this administration has shown that it is more sensitive to market stability than was previously known. They have extended deadlines and now make major tariff announcements (such as the 30% tariff on the EU and Mexico on July 12th) on Saturdays, a tactic seemingly designed to allow markets time to digest the news over a weekend. Even the recent escalation in the Middle East began and concluded before Sunday futures trading opened. President Trump was quick to tweet about the spike in oil prices when the Straits of Hormuz were at risk of closing following the U.S. strike on Iran’s nuclear sites, a move that forced traders to cover their positions and calmed nerves. This indicated he could ease market fears with strategic oil inventory releases and signaled a willingness to punish Iran if it tried to block the vital strait. While parts of the investor community remain skeptical, we remain optimistic, given what has been dubbed the “TACO Trade” — the theory that the administration is ultimately responsive and takes direct feedback from the markets to avoid major downturns.

The “Big, Beautiful Bill” and the AI-Fueled CapEx Boom

While the DOGE cuts and tariffs were initially seen as significant drags on consumers and consumption, their perceived impact has been recalibrated. The mandate for DOGE has been reduced to saving billions rather than the trillions previously implied. This, combined with benefits aimed at lower-end consumers within the “Big, Beautiful Bill” and other government spending, is expected to significantly boost capital expenditure (CapEx).

We do not agree that all onshoring will be a net benefit for the USA, particularly for low-margin items like clothing and shoes, which even China is now outsourcing. We are, however, focused on the immense strategic value of this policy shift. The onshoring of semiconductors, computer chips, robotics, automobiles, batteries, and other high-end precision manufacturing would not only bring more high-quality jobs to American shores but, more critically, would increase the security and resilience of our nation’s supply chain in any adverse global scenario.

A technological arms race is currently underway between the “Hyperscalers” to quench the seemingly unquenchable thirst for the unlimited computing power needed by Artificial Intelligence (AI). Current demand has beaten sober estimates from just two years ago by an order of 100 times. With the advent of agentic AI, robotics, and self-driving cars, the race to build this capacity is one of the defining economic stories of our time.

This trend was already in motion, but it has been supercharged by what the administration calls “tariff sterilization” via the “Big, Beautiful Bill.” This legislation is designed to directly offset the impact of tariffs by encouraging a domestic investment boom through several powerful provisions:

The enthusiasm for AI is palpable, as corporations are now using it to write almost 50% of their code. They are training AI to be more “agentic” — capable of navigating different websites and taking control to perform required tasks. This is driving a level of unprecedented productivity growth not seen since the advent of the personal computer. The evolution of AI, fueled by massive private CapEx and explicitly encouraged by government policy, is a transformative event more akin to the development of the national railway system in the 19th century.

The Federal Reserve’s Dilemma

We began the year with a very positive overtone, with markets expecting 100 basis points in cuts from the Federal Reserve to start in the second half. As we now enter that second half, the probability of such significant rate cuts has diminished, if not been eliminated entirely. The primary reason for this shift has been the prospect of higher-than-expected tariffs. The tariffs that were modeled at closer to 5% at the beginning of the year are now suddenly between 10% and 30%.

Retailers have been anxious, restocking their inventories in huge sizes and thereby causing a numerical contraction of GDP in the first quarter as they attempted to front-run the tariffs. As we enter July, the core CPI is holding at 2.54%.

These tariffs will inevitably show up in consumers’ shopping carts, as companies cannot absorb a 30% hit to their profits; there will be price shocks. While this is predicted to be a one-time event, companies have already been gradually declining promotions and raising prices. This trend should continue for the next several quarters as they seek to avoid a significant decline in sales volume. This situation fully warrants the Federal Reserve and Chairman Powell’s stated position to keep rates stable, as monetary policy must be forward-looking. If their models project an inflation increase by the end of the year, they should not, by any means, cut 100 basis points.

The Fed’s dual mandate is price stability and full employment. The long-run unemployment rate is estimated at 6.1%, and we are currently at 4.2%. This is as close to full employment as it gets, especially when considering reduced legal immigration. This dynamic decreases the labor supply and weakens the arguments in favor of rate cuts, as the onshoring capex boom and AI-related spending will likely keep the labor market tight. Consequently, we expect there to be no significant rate cuts for the remainder of the year, barring a sudden and severe economic downturn.

Risks to the Thesis

The administration has, in our view, handled the tariff situation poorly, especially with allies who depend on the United States for their security. As Treasury Secretary Scott Bessent rightly stated at the beginning of the year, China needs to be reined in, as it attempts to manufacture its way out of its current economic glut. This is a direct threat to private manufacturing worldwide, as Chinese producers, backed by government subsidies and cheap loans, are positioned to sell goods at a loss simply to gain global market share. The administration should have coordinated with all G-7 countries and the European Union to put unified tariffs on China to safeguard national interests. Instead, singling out allies with tariffs that are often in excess of what those countries charge the U.S. is demoralizing and counterproductive.

Take, for instance, Japan, which charges very little — less than 5% on most non-agricultural items and 0% on machinery — and has been met with 25% tariffs by the administration, effective August 1st. This weakens the resolve of allied nations and doesn’t bode well for long-term trade relationships and dependence on the USA. While this may bring in a large amount of tariff revenue, it is, in effect, a tax on consumers who will have to pay more for the same products, which will inevitably drive down future consumption growth. It also weakens the case for U.S. companies and startups to expand globally.

The overall economy could weaken as federal cuts are set to begin on September 1st. Paired with the downsizing of federal employees, private companies like Microsoft and Amazon are already laying off more staff as they use AI to increase productivity. This is a bearish short-term signal for the economy.

The lowering of consumption due to the “Tariff Tax,” which should show up in prices as the 90-day pause used by retailers to load up on inventory runs out, will decrease GDP growth. GDP growth is now expected to be close to 1.4% by the end of the year, revised down from the 1.9% previously expected.

A final, significant risk is retaliation. The situation with Canada was a key example. While Canada is heavily dependent on the USA for its exports, its leadership knew precisely where to hit to cause maximum political pain: by threatening tariffs on U.S. services (specifically, software). This is our economy’s crown jewel, comprising 60% of the S&P 500’s value. The tariffs were quickly rescinded, but the move signaled to all other nations where to aim to make the administration fragile. This is a significant risk in the second half of the year. The EU, Canada, and Mexico, unhappy with proposed 30% tariffs, could team up with Korea and Japan (facing 25% tariffs) to retaliate in unison against our services— Microsoft, Netflix, Google, etc. —where we enjoy 80% gross margins and which form a massive part of our market indexes.

Last year’s 1.8% GDP growth was attributed to 1% productivity growth and 0.8% increased labor participation. This year, due to lower immigration, AI-driven productivity increases could be eclipsed by lower labor growth, potentially resulting in a lower-than-average GDP growth rate.

Conclusion

In summary, we are positive about the prospects for the second half of the year but remain exceptionally cautious regarding the risks that the market is not currently pricing in. The worries over tariffs and other policy matters have been delayed and not fully resolved by the current administration.

We have great faith that our portfolio companies and the businesses we analyze are resilient. They will be able to navigate the given circumstances and deliver strong results as they squeeze their suppliers, strategically remove promotions, and pass on costs while diligently protecting their margins.

To reflect this outlook, we have strategically positioned our portfolio. In equities, we are underweighting Consumer Staples and Consumer Discretionary stocks due to our forecast of a slowing consumer. Conversely, we are overweighting Industrials and Small-Cap companies, which are poised to benefit from the onshoring movement and a favorable deregulatory environment for American manufacturing. We maintain an equal-weight position in Technology; while we foresee significant margin expansion driven by AI productivity, the sector faces a nuanced outlook, as these companies remain in the crosshairs of trade wars, and their massive capital expenditures may be a drag on near-term earnings.

This cautious but opportunistic stance extends to our fixed-income strategy. To account for a stable Federal Reserve policy and persistent inflation uncertainty, we are overweight medium-duration and short-duration floating-rate bonds, while underweighting U.S. Treasurys and other long-duration bonds.

More From Grey Ledge Advisors

Building wealth is rarely about timing the market or chasing trends. Instead, it’s about structure, clarity, and purpose. At Grey Ledge Advisors, we work with clients to create disciplined investment strategies tailored to their goals. But before a strategy can be built, it’s important to understand the investment vehicles available — and how each fits within the broader framework of risk, return, and taxation.

By understanding the purpose and mechanics of each investment type, investors are better equipped to make decisions that align with their long-term goals. This guide offers a high-level overview of key investment types: what they are, how they function, and where they may belong in a well-designed portfolio.

Equity vs. Debt Securities

Most portfolios begin with a mix of equities and fixed income, commonly referred to as stocks and bonds. These are the building blocks of asset allocation.

Stocks (Equity Securities)
Stocks represent ownership in a company. Investors share in both the upside (capital appreciation) and downside (loss of value). Publicly traded stocks offer liquidity and, historically, the highest long-term returns of major asset classes.

Bonds (Debt Securities)
When you buy a bond, you’re lending money to an issuer—government, corporate, or municipal—in exchange for interest payments and return of principal.

A balanced portfolio may shift weight between equities and fixed income over time, depending on risk tolerance, time horizon, and cash flow needs.

Mutual Funds & Portfolio Strategies

Mutual funds are pooled investment vehicles managed by professionals. They offer diversification and ease of access, but not all funds follow the same investment strategy.

Growth Funds
Seek companies with above-average earnings potential. These funds typically reinvest profits rather than pay dividends.

Income Funds
Prioritize assets that generate consistent cash flow, such as dividend-paying stocks or high-quality bonds.

Index Funds
Track the performance of a specific market index (e.g., S&P 500) through passive management.

Target-Date Funds
Structured around a projected retirement year (e.g., 2050), these funds automatically adjust from growth-oriented to conservative assets as the target date approaches.

Tax Implications: Actively managed funds can generate capital gains distributions each year, even if you don’t sell your shares. Placement in a tax-advantaged account can help mitigate this.

IRAs: Traditional, Roth, Rollover & Inherited

Individual Retirement Accounts (IRAs) offer tax incentives to encourage long-term saving. The type of IRA determines how and when taxes are applied.

Traditional IRA

Roth IRA

Rollover IRA
Used to transfer assets from a workplace plan (401(k), 403(b)) into an IRA without penalty. Offers continued tax deferral and broader investment flexibility.

Inherited IRA
Created when a beneficiary inherits an IRA. Distribution rules vary based on the beneficiary’s relationship to the original owner, but many non-spouse heirs must empty the account within 10 years (per SECURE Act guidelines).

Employer-Sponsored Retirement Plans

Workplace retirement plans are essential tools for wealth accumulation, often enhanced by employer contributions.

401(k)

403(b)

SIMPLE IRA

SEP IRA

Pension Plans (Defined Benefit Plans)

Provide guaranteed income in retirement, based on salary and years of service. These plans are less common today in the private sector but remain critical in certain public roles.

Tax Considerations: Most of these plans offer pre-tax contributions and tax-deferred growth. Distributions are taxed as ordinary income.

The Role of Strategy

Understanding investment types is important, but how they work together in a cohesive strategy is what drives results.

At Grey Ledge Advisors, we design portfolios through a lens of risk management, tax efficiency, and long-term purpose. Asset allocation, rebalancing, tax-loss harvesting, and account location (taxable vs. tax-deferred) all play roles in preserving and growing wealth. We don’t offer one-size-fits-all advice — we tailor each strategy to your financial objectives, life stage, and tolerance for volatility.

Grey Ledge Advisors brings depth of knowledge, disciplined planning, and personalized attention to each client relationship. Whether you’re just getting started or refining a multi-generational plan, we can help you make informed choices with confidence.

Contact Us to Learn More About Your Wealth Management and Retirement Savings Options

Building a business, consulting on your own terms, and driving growth. The shape of modern work has evolved, and with it, so has the definition of a career. Increasingly, Americans are investing in themselves — launching companies, working as independent contractors, or combining multiple income streams as part of the growing freelance, self-employment, and gig economy.

But while this shift brings freedom, it also brings complexity, especially when it comes to retirement planning. Without an employer-sponsored 401(k) or benefits package, how do you prepare for the long term?

Retirement isn’t just for employees. It’s for builders, creators, risk-takers, and anyone investing in themselves today with the goal of independence tomorrow.

At Grey Ledge Advisors, we partner with entrepreneurs, small business owners, freelancers, and gig workers to create sustainable, tax-efficient retirement strategies. No matter how nontraditional your work path may be, your future still deserves structure.

The Changing Face of Work

Self-employment isn’t a niche. It’s the fastest-growing segment of the American workforce. From app-based workers (Uber, DoorDash, Instacart) to freelance creatives, contractors, and solo professionals, many are building careers outside the W-2 world. And at the same time, entrepreneurs and small business owners are pushing their ventures forward, often wearing multiple hats and prioritizing reinvestment over long-term savings.

But here’s the truth: the earlier you incorporate retirement planning into your business or freelance income strategy, the more flexibility — and financial security — you’ll gain later.

Start with the Basics: IRAs

Whether you earn $5,000 from side gigs or $500,000 from your own business, IRAs remain one of the most accessible retirement vehicles available.

Traditional IRA

Roth IRA

Both Traditional and Roth IRAs are foundational tools. Still, they may not provide enough contribution capacity for high earners or business owners looking to make larger investments in retirement.

The SEP IRA: Built for the Self-Employed

The SEP IRA (Simplified Employee Pension) is a flexible, tax-advantaged solution specifically designed for self-employment — sole proprietors, freelancers, and small business owners.

Small Business Consideration: If you have employees, an SEP IRA requires proportional contributions for eligible workers, making it ideal for solo owners or those without full-time staff.

Solo 401(k): High Capacity with Added Flexibility

For self-employed individuals with no employees (aside from a spouse), the Solo 401(k)—also known as an Individual 401(k) — offers robust contribution limits and flexibility.

Best For: High-earning solopreneurs who want to maximize contributions and may want Roth flexibility.

For Entrepreneurs and Small Business Owners

Entrepreneurs often pour time and capital into building their businesses, but personal retirement planning can fall by the wayside. That’s a missed opportunity. Business owners have unique options to integrate retirement savings into their broader financial strategy.

In addition to SEP IRAs and Solo 401(k)s, business owners may consider:

The structure you choose can also support business continuity planning, succession goals, and tax efficiency, especially as your company grows or prepares for transition.

Gig Workers: Saving Despite Inconsistent Income

For app-based workers and freelancers with fluctuating earnings, the challenge isn’t a lack of options — it’s consistency. But even modest contributions, made regularly, can grow substantially with time and discipline.

Every dollar saved—especially in tax-advantaged accounts—is doing more than you might think. Compound growth and tax efficiency are powerful partners.

Why Work With a Financial Advisor?

Working for yourself often means juggling everything: income, expenses, taxes, marketing, and growth. Retirement planning shouldn’t be another burden — it should be a strategic advantage.

At Grey Ledge Advisors, we bring clarity to complex financial lives. We help self-employed professionals — from gig workers to growth-stage entrepreneurs — create retirement plans that are aligned, scalable, and designed to evolve. Whether you need to lower taxable income, invest surplus cash, or develop a long-term exit plan from your business, we serve as your partner and advocate.