Congratulations! You made it thru another year of being an investor! 2025 was quite the ride that ended up very well for most investors. International equity markets had a stellar year, as did many commodities. US equity markets held their own and fixed income posted impressive returns as well.

All in all, 2025 was a success! Don’t spend too much time celebrating or reflecting though – markets have already moved on to 2026 (ha!). Sure, nothing miraculously changed for markets or the securities that comprise them from 12/31/2025 to 1/1/2026 but that doesn’t stop the flood of “2026 market predictions” hitting my inbox this week

As I’ve read thru these prediction decks, I realized how quickly investors (and society) move on to the “next thing.” On to the next, as they say!

Before we dive head first into a new year (let’s save that for next week’s post), I think it’s worth setting some priorities. As my spin instructor said in a recent class – “You don’t need more time. You just need more focus”

I believe that in today’s investing environment – where there is more noise and distraction than ever before – focus will be an essential part of your toolkit. What might focus look like in 2026?

Here are five areas where I believe outsized attention is deserved. You may have other areas of focus and that is perfect – just know “your list” and do all you can to minimize “the rest” during this upcoming year and beyond. Remember – you don’t need more time. Perhaps you just need more focus.

1.) Cash flow is king – This may be an overused term in the financial planning world but for good reason. Cash flow – what you earn versus what you spend – is one of the biggest determinants of the long term compounding of wealth. Very few investment returns can outrun overspending (which can include too much discretionary spending but can also include other costly items like poor tax planning, excessive debt loads and interest, results of poor insurance coverage, etc).

2.) Anchor to a useful goal – Happiness equals reality minus expectations. If your expectations are unrealistic or set improperly, you will likely not be pleased (no matter what your reality). In investing, it’s important to anchor to a useful (and often long-term) return. I personally use the expected rate of return embedded in my financial plan that allows me to reach my long-term goals. Anchoring to other expectations (headline returns on the news, returns of your neighbors, “high as possible”, etc) can be dangerous and counterproductive.

3.) Address tail risks – As alluded to in #1, an investment return cannot outrun a tail risk event (ie: low probability/high impact) that has not been properly insured against. Unfortunately, today’s world has become increasingly expensive and litigious. A complete and thorough review of your exposures and related insurance coverages is worth some attention this year. Consider the liability coverages in your home and auto policies. Ensure you have excess liability (umbrella coverage) in place that tracks with your net worth. Review life insurance benefits for your situation and also review coverage with your adult children that have debt obligations and/or dependents of their own. It’s also worth checking in on your emergency cash reserves. Does the level make sense in context of your career status, nondiscretionary spending, out of pocket max of health care coverage, etc? Tail risks are rare (thank goodness) but can be hugely detrimental if they occur without the proper protection and planning.

4.) Connect the dots – Saving and investing is far easier when you know “what it’s all for.” If you have not spent any time thinking about your future and crafting a financial plan based on your needs and wants for that future time period, it would be a very worthwhile exercise. Knowing where you want to go and how to get there can make saving and investing less an elusive concept and more of a tactical mission.

5.) Stick to the Script – It’s easy to believe the analysts, commentators, and journalists when they provide a stock recommendation or a year-end target for a given market/index. It’s even easier to believe them if they affirm your wish/hope. Just remember – no one knows what is going to happen! The world, businesses, and the markets are uncertain. Investing strategies that endure the test of time are not snazzy or complicated ( you know what they are but here’s a few: set a target allocation based on your goals, rebalance against that target, manage concentrations, add to savings over time (if still working/accumulating), stay invested – even during downturns). Revisit your script – and execute against it.

Let’s make 2026 the year of focus. You may very well have other items on your list – that’s great! Take a minute to jot them down and put them someplace you can check in on them throughout the year. I don’t know what it will be, but something (or some things) will come our way in 2026. Having your areas of focus to help recenter you in times of strain will help you get thru another year of investing!

Here we come 2026!

Onward we go,