Client Newsletter 1Q26
Dear Ambassador Family,
Times of uncertainty often invite important questions—and meaningful opportunity. As we look back on 2025 and ahead to 2026, we’re grateful to walk alongside clients who choose to plan intentionally and stay engaged.
Why True Diversification and Active Management Matter in 2025 and 2026
2025 was a solid year for U.S. stocks, yet with noticeable volatility in the first half of the year.
Client portfolios, however, extend beyond U.S. equities—and that diversification helped many clients achieve returns comparable to, and in many cases stronger than, broad U.S. markets. Clients benefited from exposure to precious metals and mining companies, which significantly outperformed equities. Select allocations—such as rare earths, uranium, and Japanese small-cap strategies—also contributed positively.
Not every area led. Some alternative strategies (including equity long/short, event-driven, and late-stage venture strategies) were more muted, and crypto ETFs declined.
Our job is to continuously evaluate risks and opportunities across asset classes—and to adjust when conditions change. Since late summer, we’ve reduced portfolio risk in several areas due to stretched valuations, open questions around the durability of AI-driven earnings, and signs of consumer headwinds.
True diversification isn’t about owning more funds. It’s about preparing for different outcomes.
Client portfolios are built to navigate multiple potential environments, including:
- Continued acceleration in AI-driven expansion and productivity
- Potential economic recession, including stress on consumers and housing
- Ongoing monetary expansion and current debasement
Political shifts, economic realignment, tax-law changes, rising geopolitical tension, and rapid technological acceleration challenged many long-held assumptions about investing, planning, and long-term security.
For some, these changes created uncertainty.
For our clients—those who planned intentionally—it created opportunity.
Why AWM is Not a Standard Investment Firm
We don’t view wealth management as chasing returns in isolation. Our philosophy centers on a simple truth: “It’s not how much you make—it’s how much you keep.”
That means:
- We evaluate investments after taxes, not before.
- We define risk by its real-world impact on your life, not just by volatility.
- We plan proactively, not reactively.
- We build portfolios around real families and real goals, not generic models.
Your family’s financial well-being deserves more than a mechanical “set it and forget it” approach—or a one-size-fits-all portfolio.
How AWM Helps You Understand What You Really Need
Most investors believe they know what they want—until someone takes the time to ask better questions.
Traditional risk questionnaires (including many online DIY tools) try to reduce a complex life to a handful of data points. They capture some quantitative inputs and emotional reactions to recent market movement, but they rarely reflect the full picture: goals, responsibilities, tradeoffs, and what matters most to your family.
Our approach is collaborative—not just at the start of the relationship, but continuously as life evolves. Family changes, career transitions, business events, health considerations, and legacy goals all shape the right investment decisions.
As a fee-only fiduciary, our structure aligns with your best interests:
- We do not use commission-based products.
- We avoid long-term products that reduce flexibility.
- We design portfolios to serve your life—not a sales agenda.
“The best strategies often feel boring in the moment—and brilliant in hindsight.”
It’s never too late. As the saying goes, “The best time to plant a tree was 20 years ago. The second-best time is now.”
Rising costs of living, healthcare, and long-term care are real planning pressures. So are changes in tax law, the growing role of digital assets, and technology-driven shifts in opportunity.
Our mission remains clear:
- Help clients accumulate and preserve wealth intentionally
- Guide the transition from working years into confident retirement
- Maintain lifestyle sustainability as expenses rise
- Build plans that adapt—rather than break—when conditions change
What Set Our Clients Apart in 2025
Clients who stayed engaged—through coordinated tax planning, estate planning, and integrated wealth management—put themselves in a stronger position. Not by accident, and not by relying on outdated models.
They did well because they focused on:
- Purposeful positioning, not passive exposure
- Tax-aware decisions that helped preserve returns over time
- Coordination across accounts, entities, and generations
- A willingness to revisit assumptions and adapt early
In 2025, success depended less on predicting markets and more on preparing for multiple outcomes.
Most IRA contributions require earned income (taxable compensation). But if you’re married and file a joint return, the spouse who didn’t earn income (or earned very little) may still be able to contribute to an IRA in their own name. This planning tool is commonly called a spousal IRA.
For 2026, the IRA contribution limit is $7,500 per person (or $8,600 if age 50+). In other words, a couple may be able to contribute up to $15,000 total (or $17,200 if both are 50+)—as long as your combined taxable compensation is at least equal to the amount contributed across both IRAs.
You can also tailor the strategy: one spouse can fund a Traditional IRA while the other funds a Roth IRA, and you don’t have to use the same custodian or contribute at the same time.
Our team can confirm eligibility, coordinate the right Traditional vs. Roth mix, and make sure your contributions align with your broader tax and retirement plan.
Looking Ahead to 2026
As we enter 2026, we see both complexity and promise.
“Wealth is not built by chance, but by choice—repeated consistently over time.”
If 2025 reinforced anything, it’s that clarity, preparation, and disciplined action still matter—perhaps now more than ever. The families who did best weren’t chasing headlines. They were thinking long-term, planning intentionally, and staying engaged.
As we look toward 2026, our commitment remains the same: to help you navigate complexity with clarity, purpose, and confidence—so what you build can endure.
Thank you for allowing us to walk alongside you.
If you’d like a proactive review of your investment strategy, tax planning, or long-term goals for 2026, please reach out—we’re here to help
Sincerely,
Petr Burunov, CFP®
President / Wealth Strategist