It Is Tax Day and Look Who Is Worried
With 2025 taxes behind us, many generations are worrying about their taxes in the future and in retirement years.
As the GenX and Millennial generations edge closer to retirement, they are worrying about how taxes will affect their “Golden Years.” Allianz Center for the Future of Retirement found in their Q1 2026 Quarterly Market Perceptions Study that 70% of Americans are having anxiety over taxes on retirement income.
When you break it out by generations, only 57% of Baby Boomers are concerned (maybe because they are already comfortable dealing with the issue) while 80% of GenX, 75% of Millennials and 74% of Gen Z are concerned. Not surprisingly, GenX is most concerned since the first of that cohort will start turning 65 in 2030.
How to “Fix” Social Security
The Social Security Trust Fund is in trouble and will run out of money sometime in the early 2030’s unless it is “fixed.” Recently, the committee for a Responsible Federal Budget developed a white paper called the “Trust Fund Solutions Initiative.” While most talk about raising the age to start receiving Social Security and raising the tax imposed on wages, this white paper offers a novel approach to cap the benefit. What?
It proposes to cap a married couple at $100,000 and an individual to $50,000 when claiming Social Security at full retirement age. The cap would be reduced to $70,000 for those starting Social Security at age 62 but increase it to $124,000 if both spouses wait until age 70 to claim their benefit. This idea probably is dead on arrival with Congress because it only impacts a very small number of people. However, without an annual inflation adjustment, it will impact more and more retirees each year.
Was It Only A Year Ago?
As 2025 unfolded, we saw the S&P 500 up about 24% in 2024, mostly led by the Magnificent Seven. During the early days of 2025, the market rested, not moving too much but come March it drifted downward and then all heck broke loose on April 8, 2025, with the President announcing the tariffs on all countries. The market took a nosedive.
But here we are about 12 months later, and the S&P 500 moved from 4982.77 on Liberation Day last year to 6,782.81 as of April 8, 2026. This represents a 36% increase. Some investors panicked and sold stocks, potentially creating capital gains as well as increased taxes. Many did not get back into the markets as they recovered from the shock created by the tariffs.
We recently spoke with a couple at a wedding who had done just that and still had not fully gotten back into the market. As long-term investors, ProVise’s approach is to avoid overreacting to short-term events outside our control. History consistently shows that shocks eventually moderate and markets resume their long-term upward trajectory. That discipline is not always easy, but we believe it is the right approach.
AI’s Role In The Modern Workforce
The world has undergone a massive shift in the way companies are planning and executing their missions. Modern artificial intelligence has taken over a decent number of operations in the business landscape within just a few years of coming online. According to Business Insider, nearly 80% of CEOs have said that they will allocate at least 5% of their capital budgets to AI this year. So, the big question is this: Will we all become antiquated in a world of automation, or has the next frontier of efficiency shown itself?
To briefly rewind, artificial intelligence is a broad term that has been employed for decades. The use of AI began conceptually with Alan Turing in the 1930s and was first put into development by NASA in the 1950s. The most basic form of AI is simply a complex calculator that works to improve at a task. For example, Deep Blue was an IBM creation in the 1990s that successfully defeated the chess world champion, Garry Kasparov, in only 19 moves. Fast forward to today: the AI that has become a groundbreaking fascination in what is known as a Large Language Model (LLM). These chatbots, or LLMs, have generated a wave of both panic and promise surrounding their capabilities and continued improvement.
To lift the veil, these AI chatbots use neural networks (much like our brains) to connect patterns and become more intelligent. They are given large amounts of information and data, which they can respond to in an intelligent and contextual way. They have become highly valuable for repetitive tasks, proofreading, idea generation, coding, historical research, and more.
Many are concerned that these LLMs will replace human workers entirely, leaving people with little recourse. In truth, this is a story we have seen before. Throughout history, as new technologies have been adopted, jobs have ultimately expanded rather than disappeared. While short‑term disruption reshapes how companies think about certain roles, employees generally become more creative, efficient, and effective with better tools at their disposal. Although uncertainty about AI’s impact on long‑term employment is understandable, it is far more likely that artificial intelligence will contribute to the creation of new roles and a more productive workforce over time.
Why Able Accounts Matter For Individuals With Disabilities
The CDC reports that more than 70 million people in the United States are living with a disability. On average, individuals with disabilities require 29 percent more income to maintain the same standard of living as those without disabilities. When considered together, these statistics make an already harsh reality even more unsettling. Despite facing higher ongoing costs, many needs‑based programs impose strict asset limits that effectively penalize saving. In many cases, individuals become ineligible for these programs if they hold more than $2,000 in cash or maintain funds in non‑ABLE checking or savings accounts, as well as certain retirement accounts.
How does an ABLE (Achieving a Better Life Experience) account work? Assets saved in an ABLE account can shield up to $100,000 from needs‑based program asset eligibility requirements for individuals whose disability began before age 46. In addition, investments within the account grow tax‑free, and withdrawals are also tax‑free when used for qualified disability expenses. These expenses include education, housing, transportation, healthcare, and other everyday living costs, making ABLE accounts a powerful planning tool for long‑term financial stability.
ABLE accounts have an annual contribution limit of $20,000 in 2026, and for individuals who are employed, these accounts can offer additional flexibility. If the account owner does not have access to an employer‑sponsored retirement plan, they may be eligible to contribute up to an additional $15,560 of their gross income in 2026, with the exact allowable amount varying by state.
When used thoughtfully, ABLE accounts can make a real difference. They allow people to save for everyday needs without constantly worrying about losing important benefits, giving individuals and families more breathing room and peace of mind.
What are ABLE Accounts? – ABLE National Resource Center
CDC Data Shows Over 70 Million U.S. Adults Reported Having a Disability | CDC Online Newsroom | CDC
Unpaid Caregiving Exceeds $1 Trillion
Last month, several of us from ProVise attended the Alzheimer’s Gala at Armature Works in Tampa along with about 340 other folks. It was a lovely event and set a record raising $790,000 for research into this terrible disease. It just goes to show how many families are facing the challenges brought on by Alzheimer’s. It got us thinking about all those who are providing care to the many who are afflicted by it.
AARP recently released a new study noting that about 59 million people in the U.S. are providing unpaid caregiving services for many diseases including Alzheimer’s. These caregivers provide 49.5 billion hours of caretaking, which equates to about $1.01 trillion in unpaid compensation, which would otherwise be provided by 24 million paid people. While a social issue at many levels including putting stress on the family, it is also a financial one as caretakers may have to suspend their career which reduces savings for their retirement and often find themselves overwhelmed psychologically and physically causing them to have medical expenses.
Up Your Assets™ Podcast
Episode 29 – The Truth About Life Insurance (Before You Buy Anything)
Most people don’t fully understand how life insurance really works or quite possibly are overwhelmed by all the options available to them. In this eye-opening episode Ray Ferrara, CFP® teams up with Barry Flagg, CLU, ChFC, CFP®, a lifelong innovator in the insurance industry who’s revolutionized how consumers and advisors understand policy costs. If you’ve ever wondered whether your life insurance policy is working for you or how to optimize one in the future…this is a worthy listen for consumers, financial advisors, or anyone puzzling through the complexity of life insurance. Don’t let your heart be troubled — tune in now and learn the from the two of the best.
Acknowledgements and Important Disclosures
From the Up Your Assets website
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