As we close out 2025, markets delivered a positive finish during a shortened holiday trading week. While trading volume was light, returns across most asset classes were encouraging, providing a constructive backdrop as we head into 2026.
This week’s update covers market performance, economic data, interest rates, and important financial planning reminders to help you start the new year informed and prepared.
Market Performance Update: Stocks Finish 2025 on a Strong Note
Major stock indexes moved higher during the final trading week of the year:
- Dow Jones Industrial Average: +1.19%
- S&P 500: +1.40%
- Nasdaq Composite: +1.22%
- Russell 2000: +0.19%
- International Stocks: +1.16%
- Emerging Markets: +1.81%
Bond markets were steady, with the 10-Year U.S. Treasury ending the week yielding 4.13%.
Despite a challenging year that included inflation concerns, interest-rate volatility, and geopolitical uncertainty, both stocks and bonds delivered solid results in 2025.
Economic Update: GDP Growth and What It Means for Federal Reserve Policy
The most significant economic data release last week was the third-quarter U.S. GDP report, which showed annualized growth of 4.3%, well above the consensus estimate of approximately 3.2%.
Given the recent government shutdown, it’s reasonable to question whether this figure fully reflects underlying economic conditions. A final GDP revision is scheduled for January 22, 2026, which may provide additional clarity.
Even if growth is ultimately revised closer to consensus, the U.S. economy remains resilient. This strength may lead the Federal Reserve to pause interest-rate cuts in the coming months unless economic data begins to weaken.
2026 Key Financial Data for Tax, Retirement, and Medicare Planning
Each year, we publish our Key Financial Data reference sheets, and the 2026 edition is now available.
These planning guides summarize:
- Federal income tax brackets and deductions
- Medicare premiums and IRMAA thresholds
- Retirement account contribution limits
- Other key financial planning thresholds
These figures form the foundation for proactive tax planning, retirement income strategies, and Medicare planning throughout the year.
👇Click here to access your 2026 Key Financial Data reference sheets:
- 2026 Key Financial Data
- 2026 Social Security Quick Reference Guide
- 2026 Medicare Quick Reference Guide
Why Reviewing Your Tax Return Matters for Ongoing Financial Planning
Once your 2025 income tax return is complete, please forward a copy to our office. Reviewing your return allows us to:
- Forecast your 2026 tax liability
- Identify tax planning opportunities
- Evaluate strategies to potentially reduce future taxes
This review helps ensure your financial plan remains coordinated, tax-efficient, and aligned with your long-term goals.
Professional Update: Advanced Tax Planning Education
I’m pleased to share that I have earned the Tax Planning Certified Professional (TPCP®) designation from The American College of Financial Services.
This advanced coursework further deepened my tax knowledge with one purpose: delivering an even higher level of insight, planning precision, and service for our clients. We’ll be sharing more details on how this benefits you in an upcoming blog.
What’s New at Retirement Refined
We are also excited to announce the launch of a new Retirement Refined website in early January 2026. The updated site will feature improved navigation, expanded educational resources, and a better overall client experience.
Looking Ahead to 2026
While challenges are inevitable, 2025 demonstrated the power of disciplined investing and thoughtful planning. As we enter 2026, our focus remains on long-term strategy, risk management, and proactive decision-making, rather than short-term market noise.
A Personal Note as We Enter the New Year
As we begin 2026, I want to wish you and your family a happy, healthy, and prosperous New Year.
I am deeply grateful for the trust you place in us and for the relationships we share with our clients. Serving you is not just my profession: it’s my passion, and I appreciate the opportunity to work with you every day.
Warm regards,
Paul Levin, CFP®, ChFC®, RICP®, TPCP®
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All market data sourced from The Wall Street Journal, December 26, 2025.
