Another aspect that really spoke to me during my time with DWM was how broad the world of wealth management truly is. Prior to being exposed to this industry firsthand, I mostly just associated it with investing and stock portfolios, with some smaller financial services on the side. However, being here at DWM helped me learn that wealth management stretches far beyond that. The team works closely with clients on a variety of matters, including retirement planning, taxes, investment management, and collaborating with attorneys and bankers to help clients achieve both short- and long-term goals.

                DWM’s process focuses heavily on the three crucial services, which they refer to as the “three-legged stool.” With financial planning, tax efficiency, and portfolio stewardship, each area depends on the others to create the strength and stability clients need to achieve peach of mind within their financial lives.

                The meetings that I had the chance to observe, and even contribute to in some cases, showed me the importance of communication and listening in this field. While always staying professional, the conversations were authentic and personal. It felt as though DWM approached every interaction like a sponge, trying to absorb each client’s personal goals, concerns, future plans, and more. The more they were able to understand a client’s aspirations, the more they could put together the most fitting, personalized plan for each client.

                One of the biggest surprises to me was the sheer amount of teamwork and preparation that goes into every interaction. From an outside perspective, meetings seem almost like spontaneous conversations. After being in the office throughout each day, I began to realize the true amount of planning, organization, and collaboration between team members that goes into each one. Preparation and trust, not only within the team but also with clients, are crucial to driving long-term success for both parties.

                This lesson correlates very strongly with my own personal journey throughout college. I was born in Chicago, Illinois, and grew up most of my life in Glen Ellyn, a suburb outside of the city. When I first entered college, I started as a Computer Science major because I enjoyed both problem-solving and technical work. However, over my first semester, I realized that I desired a career that combined analytical thinking with a much stronger social aspect. This realization led me to the business world, where I chose to switch my major to Finance, which has proven to be exactly the fit that I was looking for.

                Throughout my college career, I have developed many skills, making me efficient in things such as formulas, software, financial concepts, and analytical thinking. These abilities I gained are important and will continue to help me throughout my future career. However, my experience at DWM taught me that there was an extra level to all of this. Behind every formula, transaction, and financial plan are real people with unique goals, backgrounds, and stories. You can crank out the “best numbers” on paper, but the truth is, if it is not personalized toward the human behind it, then it is just another financial plan with little personal value to them. The relationships and understanding that are built between people, both personally and professionally, are often what is most valuable in the long term.

                As I look back on these two weeks, I am incredibly grateful for the opportunity to dive deep into the world of finance through DWM. Every single person I met within the DWM community was so welcoming and willing to share their experiences and the knowledge they gained throughout their careers. I would say that one of my final learning experiences, and maybe the hardest to get through, was stopping myself from eating all the office cookies. Jokes aside, my time at DWM taught me far more than I would have expected coming into the internship. It gave me a much clearer understanding of what wealth management is truly about and reinforced my enthusiasm for pursuing a career in finance as I move into the future. I came into this internship thinking that wealth management revolved around number crunching and data, but I left realizing that relationships and trust are the foundation that holds it all together.

Editor’s Note: Caden Detterbeck is Brett’s second son, age 20, and a senior at Iowa State University, majoring in Finance.

The post The True Heart of Business: My Wealth Management Experience appeared first on Detterbeck Wealth Management.

As many charitable organizations continue capital campaigns and major fundraising initiatives, donors are increasingly asking about the current tax implications of charitable giving. Recent tax legislation has introduced several new rules that may affect both cash and non-cash charitable contributions, while long-standing planning opportunities involving appreciated assets and Qualified Charitable Distributions (QCDs) remain extremely valuable.

The following is a high-level overview of several important charitable giving considerations for donors and advisors.

New Deduction Available for Non-Itemizers Beginning in 2026

Beginning in 2026, taxpayers who claim the standard deduction will once again be permitted to deduct certain charitable contributions in addition to their standard deduction.

Under the current rules:

• Single taxpayers may deduct up to $1,000 of qualifying charitable cash contributions.
• Married taxpayers filing jointly may deduct up to $2,000 of qualifying charitable cash contributions.

This deduction is available even if the taxpayer does not itemize deductions. However, it generally applies only to cash gifts made to qualified public charities and does not apply to contributions of appreciated property such as securities, artwork, or collectibles.

This provision is intended to encourage charitable giving among taxpayers who otherwise receive no direct tax benefit from making charitable contributions because they utilize the standard deduction.

New 0.5% AGI Threshold for Itemized Charitable Deductions

Also beginning in 2026, taxpayers who itemize deductions will generally be permitted to deduct charitable contributions only to the extent total annual charitable gifts exceed 0.5% of adjusted gross income (AGI).

This operates somewhat similarly to the historical treatment of medical expense deductions, although at a much lower threshold.

For example:

• Taxpayer AGI: $100,000
• Total charitable contributions: $10,000
• 0.5% AGI threshold: $500

Under this rule, the taxpayer would generally receive an itemized charitable deduction of $9,500, since the first $500 of contributions would not be deductible.

This new threshold applies broadly to itemized charitable deductions, including many cash and non-cash gifts.

Cash Contributions to Charity

Cash contributions remain one of the simplest and most common methods of charitable giving.

For taxpayers who itemize deductions, cash gifts to qualified public charities are generally deductible up to 60% of adjusted gross income (AGI). Amounts exceeding those limits may typically be carried forward for up to five additional tax years.

To substantiate charitable cash contributions:

• Contributions under $250 generally require a bank record or written documentation.
• Contributions of $250 or more require a contemporaneous written acknowledgment from the charity.

Gifts of Appreciated Securities and Other Non-Cash Assets

Many larger charitable gifts involve appreciated assets rather than cash. Common examples include:

• publicly traded stock,
• closely held business interests,
• artwork,
• collectibles,
• real estate,
• cryptocurrency, and
• other investment property.

When appreciated property held longer than one year is donated to a qualified public charity, donors may generally receive two significant tax benefits:

1. A charitable income tax deduction for the fair market value of the asset, and
2. Avoidance of capital gains tax that would otherwise apply if the asset were sold.

For many donors, avoiding the capital gains tax can create a substantial additional economic benefit beyond the charitable deduction itself.

AGI Limitations for Appreciated Property

Contributions of long-term appreciated capital gain property to public charities are generally deductible up to 30% of adjusted gross income (AGI) when deducted at fair market value.

Any unused deduction may typically be carried forward for up to five years.

Additional Rules for Non-Cash Contributions

The IRS imposes additional substantiation requirements for larger non-cash gifts.

Contributions Over $500

Donors contributing more than $500 of non-cash property during the year are generally required to file IRS Form 8283 with their income tax return.

Contributions Over $5,000

For non-cash contributions exceeding $5,000, donors generally must obtain a qualified appraisal prepared by a qualified appraiser.

Exceptions exist for certain publicly traded securities, which generally do not require an appraisal because market quotations establish value.

The charity receiving the gift typically provides a written acknowledgment of the donation but generally does not determine or certify the value of the donated property.

Artwork and Collectibles

Special rules may apply to artwork and collectibles. In certain circumstances, the donor’s deduction may depend on whether the charity’s use of the property is related to its charitable mission or exempt purpose.

Because of the complexity of these rules, donors considering significant non-cash gifts should consult their tax advisors before completing the contribution.

Qualified Charitable Distributions (QCDs)

Qualified Charitable Distributions continue to be one of the most tax-efficient charitable planning tools available for retirees.

Individuals age 70½ or older may currently direct funds from an IRA directly to a qualified charity through a QCD up to $111,000 per year.

QCDs offer several potential advantages:

• The distribution counts toward the taxpayer’s Required Minimum Distribution (RMD).
• The amount transferred to charity is excluded from taxable income.
• The donor does not need to itemize deductions to receive tax benefit.
• Lower AGI may reduce exposure to Medicare premium surcharges, taxation of Social Security benefits, and other AGI-sensitive tax calculations.

Unlike a normal charitable contribution, a QCD does not produce a separate charitable deduction because the distribution is excluded from income in the first place.

For many retirees, QCDs can provide one of the most efficient methods of charitable giving available under current tax law.

Final Thoughts

The charitable giving landscape continues to evolve, particularly with the upcoming changes affecting both itemizers and non-itemizers beginning in 2026.

At the same time, long-standing strategies involving appreciated assets and Qualified Charitable Distributions continue to provide meaningful planning opportunities for donors seeking both philanthropic impact and tax efficiency.

Because the rules surrounding charitable deductions can vary significantly based on asset type, holding period, AGI limitations, substantiation requirements, and individual tax circumstances, donors should consult their tax advisors, such as DWM, before implementing major charitable gifting strategies.  This article is intended for educational purposes only and should not be construed as legal or tax advice.

The post Charitable Giving Strategies and New Tax Rules for Donors appeared first on Detterbeck Wealth Management.

There have been real scientific breakthroughs, major private investment, high-profile commercial agreements, and more government support than the industry has seen in decades. But from an investment perspective, the key question is not whether fusion is exciting. It is whether investors can reasonably expect to benefit from it in a timeframe that matters. The answer is: maybe, but probably not in the simple way people imagine.

What Fusion Actually Is

Fusion is the process that powers the sun and stars. Instead of splitting atoms apart, like traditional nuclear fission, fusion combines light atoms together and releases energy. If that process could be recreated here on Earth in a controlled and cost-effective way, it could eventually provide a massive source of reliable power. That is why the technology is so exciting. It is not just another clean energy idea – if we can make it work commercially, it could revolutionize the energy industry.

However, the important word is commercially. Creating fusion is not the same thing as creating a business that can sell fusion power at a profit. That distinction is where most of the investment conversation should begin.

The Milestones So Far

The first big milestone was proving that humans could create fusion at all. That happened in 1934, when Ernest Rutherford, Mark Oliphant, and Paul Harteck demonstrated fusion in a lab using deuterium, a heavier form of hydrogen. To simplify, we can compare the fission reaction to an apple. At that point, we proved we could “grow” or create an apple. That was an enormous scientific achievement, but it did not mean we had solved hunger or created a profitable apple farm. If someone burns 500 calories to grow an apple that contains 100 calories, the apple is still real and valuable, but the process does not yet make practical sense. That was fusion for a long time: proof of concept, not a power plant.

The next meaningful benchmarks came from controlled fusion experiments that started to look more like the kind of process that could eventually matter for power production. On November 9, 1991, the Joint European Torus, or JET, carried out the first deuterium-tritium experiment and produced fusion power from that fuel mix. Then in 1997, JET produced 16 megawatts of peak fusion power, a major step forward at the time. In apple terms, we had moved beyond simply proving an apple could be grown. We were learning how to grow better apples, in a more controlled setting, using a process that might someday resemble a real production system. But we still had not proven that the farm worked.

The breakthrough that really changed public perception came on December 5, 2022, at the National Ignition Facility at Lawrence Livermore National Laboratory. In that experiment, researchers achieved fusion ignition, meaning the reaction produced more fusion energy than the laser energy delivered directly to the target. Going back to the apple analogy, this is the moment where the apple finally contained more calories than the direct effort used to grow that specific apple. That is a real breakthrough, but this is also where headlines can get ahead of reality. The experiment produced more energy than the laser energy delivered to the target, not more energy than the entire facility consumed. In other words, the apple beat the farmer’s direct effort, but it still did not cover the cost of running the whole farm.

Since then, the results have continued to improve. Lawrence Livermore reported that an April 2025 experiment produced 8.6 megajoules of fusion energy from 2.08 megajoules of laser energy delivered to the target, which was a target gain greater than four. That means the apples are getting better, the farmer is becoming more efficient, and the science is clearly advancing. This is why the old joke about fusion always being 30 years away feels less certain than it used to. We are not talking about a vague concept anymore. We are talking about repeated experiments producing better results.

Where We Stand Today

Where we stand currently is somewhere between scientific breakthrough and commercial power plant. Fusion has not yet proven that the entire system can produce net useful energy after accounting for all energy inputs, equipment, maintenance, materials, fuel supply, downtime, regulation, financing, and grid connection.

That is the next major hurdle. It is not enough to grow an impressive apple. It is not even enough for the apple to beat the direct calories spent growing it. The whole farm has to work.

The Investment Reality

Private money is clearly paying attention. The Fusion Industry Association reported that fusion companies raised $2.64 billion in private and public funding in the 12 months leading to July 2025, bringing total funding for the surveyed fusion companies to about $9.766 billion. There are also early commercial signals, including Helion’s announced power purchase agreement with Microsoft for a planned fusion plant expected in 2028.

Those are meaningful developments, but they do not change the basic investment question. A signed agreement is not the same thing as delivered electricity, and funding is not the same as profitability. Fusion still has a long road ahead until it can breakthrough to business model.

Final Takeaway Fusion is worth watching closely, but it is not yet something most investors should rely on. Unfortunately, until someone proves that the full “apple farm” can operate reliably, sell energy at a competitive price, and generate consistent cash flow, fusion should be viewed as a fascinating underdeveloped technology, not the next great investment opportunity. In the meantime, a diversified portfolio is still the most sensible way to participate indirectly, since many of the companies funding, supporting, or eventually benefiting from fusion are represented in the major stock and corporate bond indexes.

The post Fusion Energy: Breakthrough Technology or Premature Investment? appeared first on Detterbeck Wealth Management.

Below are some of the most important developments—and the strategies you should be thinking about right now.

1. “Trump Accounts”: A New Long-Term Savings Vehicle for Children

One of the most talked-about additions for 2026 is the introduction of so-called “Trump Accounts,” a new tax-advantaged savings option for children. These accounts function somewhat like retirement accounts for minors—but importantly, they do not require earned income, making them far more flexible than traditional IRAs. They will be available July 4, 2026, with banks and custodians like Schwab offering them.

Key Features:

– $1,000 government seed contribution for eligible children born between 2025–2028

– Maximum annual contribution: $5,000 per child (under age 18)

– Contributions can come from parents, grandparents, employers, or others

– Funds grow tax-deferred during childhood

– At age 18, the account converts into a traditional IRA

-If $5,000 is contributed annually for 17 years, using a hypothetical 7% return, the account could grow to approximately $154,000 by age 18.

Planning Takeaway:

You should strongly consider these accounts as a foundational wealth-building strategy for your children or grandchildren. This is not just savings—it is long-term financial capital formation.

Once the child is 18, start converting the IRA to a Roth IRA, probably over three years to get a 12% federal tax rate. So, at 21, the child could have a $180,000 Roth account. This could be used for a downpayment on a house, starting a business or kept long-term. This $180,000 Roth earning a hypothetical 7% return over the 44 years between age 21 and 65 could be worth over $3.5 million at age 65. BTW, even a $1,000 annual contribution for 17 years can hypothetically grow to $500,000 when the child is 65. What a fantastic legacy!!

2. 529 Plans: Now a Broader “Human Capital” Tool

529 plans continue to evolve, and 2026 brings meaningful enhancements that increase both flexibility and usefulness.

Key Updates:

– K–12 withdrawal limit increased from $10,000 → $20,000 per student annually

– Expanded qualified expenses including tutoring, test fees, and homeschooling

– Broader coverage for career-oriented education such as trade programs and credentials

Planning Takeaway:

529s continue to offer powerful tax advantages that have expanded. You should begin thinking of your 529 plan as more than just a college fund. It is now a multi-purpose “human capital investment” account that can be used by more beneficiaries in many more ways. 

3. Charitable Giving: New Rules Create New Strategies

Key Changes:

– $1,000 (single) / $2,000 (married) deduction for non-itemizers

– 0.5% AGI threshold for itemizers- like medical expenses but much smaller percentage

Planning Takeaway:

You should revisit how and when you give. Consider bunching contributions or using donor-advised funds. If age 70½+, consider Qualified Charitable Distributions.

4. Higher Retirement Contribution Limits

Key Limits:

– 401(k): $24,500

– Catch-up (50+): $8,000 (If wages exceed $150,000, catch-up must be Roth contributions)

– Super catch-up (60–63): $11,250

– Total (with employer): $72,000

– IRA: $7,500 (+$1,100 catch-up)

Planning Takeaway:

You should aim to maximize retirement contributions when cash flow allows it. Consider balancing pre-tax and Roth contributions. 

5. Estate and Gift Tax Considerations

Key Limits:

– Annual gift tax exclusion: $19,000

– Lifetime exemption: $15M per individual, $30M per couple

Planning Takeaway:

Make sure to review the lifetime exemption in your residence state. IL has a $4M exemption, SC has no estate tax. You should evaluate both current and potential future estate values and consider strategies to eliminate or reduce tax. Consider loans to children to buy a home or start a business and forgive the note over time using annual gift tax exclusions to keep your full life-time exemption.

6. Roth Conversions: A Strategic Opportunity

Key Changes:  U.S. Debt. It keeps growing and it seems likely that tax rates will need to be higher in the future. When I started preparing income tax returns in 1968, the top marginal federal tax bracket was 70%. Today it is 37%. Rates of 22%, 24%, 32%, 35% and 37% may not be available ten years from now.

Planning Takeaway:

You should consider that tax planning is not just about minimizing taxes this year—you should focus on optimizing taxes over your lifetime. Roth conversions are one of the most powerful tools available to help you do that. Roth conversions before your RMDs start and even before social security starts at rates of 24% or even 32% tax may be super “bargains.”  An installment program of conversions up to a certain tax rate can turn pre-tax money into Roth IRAs, growing tax-free forever and converted at rates equal to or lower than what future rates might be.

Final Thoughts

The 2026 tax landscape introduces a mix of new opportunities and complexities. The most effective approach is to be proactive—making thoughtful decisions today that improve your long-term tax and financial outcome. At DWM, we love solving problems proactively. Long-term tax efficiency is our goal for our clients. Please give us a call.

The post Tax and Planning Strategies for 2026: Key Opportunities to Consider Now appeared first on Detterbeck Wealth Management.

Sure, there are a few “fire drills” in the final days before April 15 (see our team photo above), but even those are part of the process. It’s always a sprint to the finish but I’m happy to report things went great for our clients and us. We truly enjoy the work.

Personally, this was my 59th tax season, going back to 1968 when I started as a junior in college working for a local CPA firm. A lot has changed since then, but one thing hasn’t: helping clients navigate taxes thoughtfully is both challenging and rewarding.

We love preparing returns because they’re a critical piece of a much bigger objective—tax efficiency.

What We Mean by Tax Efficiency

Tax efficiency has three key elements:

1. Knowing the tax law 

We stay current through ongoing education, professional courses, and research. When there’s uncertainty, we dig in to verify the right approach.

2. Knowing our clients 

This is where we have a real advantage. We meet with our clients 3–4 times each year, and taxes are always part of the conversation. We review life events, financial decisions, and run tax projections throughout the year—not just at filing time.

3. A willingness to do the work 

We roll up our sleeves, sharpen our pencils, and look for opportunities to reduce taxes. It’s a challenge we enjoy—finding thoughtful, creative, and fully compliant solutions that benefit our clients.

More Than Just Taxes

Of course, tax efficiency is just one part of what we do.

Our work is built on three core services:

– Financial Planning

– Tax Efficiency

– Investment Management & Stewardship

Everything starts with financial planning—for both our clients and their businesses. Planning is focused on key objectives for our clients:

– Achieving financial independence without unnecessary sacrifice 

– Using their wealth confidently to support their families 

– Living fully today while planning for tomorrow 

– Aging without financial fear 

Financial planning leads the way and DWM’s disciplined investment management brings the plans to life.  

These three areas are interconnected. Together, they form DWM’s holistic process—designed to help ensure your financial life is organized, intentional, and aligned with your goals.

Looking Ahead to 2026

With tax season behind us, we’re already turning our attention to what’s next.

Our quarterly client meetings resume next week. These meetings cover not only financial planning, tax efficiency and investment stewardship but also estate planning, insurance review and charitable giving. The current meetings will be updating financial plans and continuing work on 2026 tax projections. In fact, we’ve already started this process with many clients earlier this year.

There are several new developments on the horizon for 2026. We’ll be sharing a more detailed update in a blog later this month, but here’s a preview of a few key areas:

“Trump Accounts”

– Available starting July 1 

– Particularly beneficial for children born between 2025–2028, with a $1,000 government contribution per account 

– Children under 18 can also receive contributions from parents and grandparents up to $5,000 per year.  

– Funds grow tax-deferred (similar to an IRA) and, under current rules, can be converted to a Roth IRA when the child turns 18 or later. 

Charitable Giving Changes

– Non-itemizers can deduct up to $2,000 (for married couples) in cash contributions starting in 2026 

– Itemizers will see a reduction equal to 0.5% of adjusted gross income (AGI) 

– Example: A couple with $250,000 of AGI would see a $1,250 reduction in deductible contributions 

529 Plan Enhancements

– Expanded use for K–12 education 

– Annual withdrawal limit increased to $20,000 per student (up from $10,000) 

-Last year’s law includes use of 529 withdrawals for education and licensing in trades and bar and CPA exams as well.

We’ll be providing more detailed insights on these and other changes in the coming weeks.

Now it’s time to take off our fireman uniforms (though we will stay in our “firefighter mode”)—and enjoy a well-earned weekend.

The post 2025 Taxes Done — Time to Work on 2026 appeared first on Detterbeck Wealth Management.

According to a recent WSJ article, the IRS is accelerating a shift that’s been years in the making: moving away from paper checks and toward fully electronic payments.

The IRS says you will get your refund quicker if you give them your checking account information.  They will send you the money electronically- much more quickly than if they print a check and mail it to you. The IRS prioritizes digital processing systems and says taxpayers choosing paper checks should expect delays of several weeks compared to electronic refunds.   And, if you need to make a payment to the IRS or your state, instead of writing them a check, you can give them your checking account information and it will be done quicker.  Going digital is not only quicker, but safer and easier for you.

Paper checks are expensive, slow and vulnerable. They can be lost in the mail-stolen, altered or delayed for weeks.  By contrast, electronic payments, primarily direct deposits are faster, more secure, and significantly cheaper for the government to process.

The IRS has been encouraging direct deposit for years, but now the push is becoming more forceful. The federal government more broadly has signaled a goal of reducing or even eliminating paper-based payments where possible.

From the government’s perspective, this shift reflects a broader effort to modernize its financial systems.  The objectives are to reduce administrative class, improve payment security, and streamline operations. Frankly, federal and state governments are catching up with the way most businesses operate.

Importantly, this is good for all of us.  Direct deposit refunds are designed to be delivered in a of number weeks as opposed to months for paper.  And now with interest rates at 7%, the IRS and state governments have systems in places to easily assess lots of interest and penalties for late payments. Used to be we’d send out our balance due check on April 15^th and hope it didn’t get received for a week or two. That doesn’t work anymore.  Online payments allow you to know that your payment has been made timely.

On top of this, you can provide both the IRS and state governments with the authority to go ahead and make automatic estimated tax payments for you for 2026.  The only thing you have to do is make sure the money is in the account to cover the payment.  And for our clients that’s not an issue, since if we prepare their tax returns and estimates are made, we keep track of that and remind them to make sure the money is in the account before the automatic payment comes through.  Think of it- no more quarterly estimated tax checks to write, put in an envelope, attach a voucher, write out the address, put a stamp on the envelope and take it to a mail box.  Priceless.

If you still want to be “old school”, i.e. get a paper check refund or write checks to the IRS or your state check, you can do it. We don’t recommend it.  Refunds will come later. Payments may get lost. And worse, scammers can grab your refunds and payments in transit and leave you with a mess to clean up.

Many of us, including me, have resisted giving out our checking account information to the IRS or anyone else.  I gave in two years ago. I’ve been doing everything electronically and it’s working great.  No guarantee that everything will be perfect.  But, it’s time to convert to digital.

Conclusion: Let’s face it. No one enjoys paying taxes. We’d rather keep our money. But it’s our civic duty, so we do it. And DWM works to make the amount you pay as small as legally possible.  And, no one enjoys writing out checks to the government or watching the mail to see when their refund is received.  It makes sense to pay our taxes- not only in the most efficient way, but also in the simplest, safest and fastest method.  Going digital is “One less thing to worry about.”

The post IRS Refunds and Payments- Time to Go Digital appeared first on Detterbeck Wealth Management.

The first quarter of 2026 began on a strong note. Across equities, fixed income, and alternatives, markets moved higher through the early part of the year, supported by resilient economic data, steady earnings, and continued investor optimism. For a time, it appeared that the positive momentum from late 2025 would carry into the new year.

That narrative changed abruptly at the end of February.

Escalating geopolitical tensions culminated in a major conflict involving Iran, triggering a sharp and immediate shift in market sentiment. Volatility increased, risk assets pulled back, and global markets began to reprice a more uncertain environment. Disruptions to global trade and energy markets added further complexity, reinforcing concerns about inflation and global growth.

What had been a steady, constructive start to the year quickly turned into a more volatile and unpredictable landscape. Importantly, however, the strength seen earlier in the quarter helped cushion the impact. While many major benchmarks ultimately finished in negative territory, diversified portfolios — supported by alternatives and select areas of equities — remained positive.

The first quarter serves as a reminder of how quickly conditions can change, and why maintaining a diversified, well-balanced portfolio remains critical when unexpected events reshape the market environment.

Equities: Leadership Shifts

Equity markets delivered a volatile and uneven quarter. Broad benchmarks declined, with the S&P 500 falling -4.3% and the MSCI All Country World Index down -3.2%. Beneath the surface, however, the story was far more nuanced.

Leadership shifted meaningfully. Value outperformed growth, and international equities outpaced domestic markets — a notable change from recent years. Small-cap value was a standout (+8.61% as represented by the Avantis Small Cap Value Fund), while emerging markets* (+3.6%) and international strategies** (+3.0%) also contributed positively.

In contrast, leadership shifted away from the highest-valued segments of the market. The “Magnificent 7” — which had driven much of the market’s gains in recent years — declined approximately 11% during the quarter, while the remaining S&P 500 constituents were roughly flat. This divergence highlights an important theme we continue to preach: valuation matters. After an extended period of outperformance, this pullback can be viewed as a healthy rotation rather than a deterioration in fundamentals, as investors broadened their focus beyond a narrow group of market leaders.

Against this backdrop, DWM’s Core Equity composite† generated a positive return of +1.2%, outperforming major benchmarks. This result highlights the benefit of diversification across styles and geographies — particularly during periods when market leadership broadens.

Fixed Income: More Than Meets the Eye

At first glance, fixed income markets appeared relatively stable. The Barclays U.S. Aggregate Bond Index was basically flat, while global bonds*** lost a little ground (-1.1%) . However, these headline figures mask a more dynamic quarter.

Bond markets began the year with solid gains before reversing course as inflation concerns resurfaced and interest rate expectations shifted. At the start of the year, markets expected one or two rate cuts; today, expectations have shifted to virtually none.

In this volatile environment, DWM’s Core Fixed Income composite† generated a positive return of +0.22%, modestly outperforming the major benchmarks . One of our favorite holdings, JP Morgan Strategic Opportunities Fund, a flexible income-oriented strategy, led performance with a 0.8% return, reinforcing the role of active management in navigating shifting rate conditions.

Fixed income continues to serve as both a stabilizer and a source of return — even in a more uncertain policy environment.

Alternatives: A Strong Start Led by Gold

Alternative investments were a clear bright spot in the first quarter. The Wilshire Liquid Alternatives Index gained +3.5%, while DWM’s Liquid Alternatives composite† outperformed with a return of +4.6%.

Gold, as represented by the iShares Gold Trust, was a standout performer, rising +8.60% for the quarter. As our largest allocation within alternatives, it played a meaningful role in overall portfolio performance. Its strength reflects continued demand driven by geopolitical uncertainty, inflation concerns, and central bank activity.

Other strategies also contributed, including the Victory Market Neutral Income Fund (+6.9%) and the Standpoint Multi-Asset Fund (+7.1%). Overall, alternatives provided both diversification and, in many cases, positive returns, reinforcing their role as active contributors within portfolios.

Putting It All Together

While individual asset classes delivered mixed results, outcomes varied widely depending on how portfolios were positioned. Many investors — particularly those heavily concentrated in the S&P 500 and the Magnificent 7 — experienced negative returns during the quarter as leadership shifted.

In contrast, investors with true diversification — not only across asset classes, but also within them — had the opportunity to generate positive results in the first quarter. This divergence underscores a key point: diversification is not just about managing risk, but about improving outcomes when market leadership rotates.

The chart below highlights the wide dispersion in returns across major asset classes during the first quarter.

1Q26 BENCHMARK RETURNS

What’s Next: Navigating an Uncertain Environment

While the near-term outlook is uncertain, there are several encouraging signs worth highlighting.

Corporate profitability remains strong, with S&P 500 profit margins near record highs. At the same time, global economic activity remains resilient, with broad-based strength across both developed and emerging markets. On the consumer side, the average income tax refund for 2025 hitting people’s bank accounts around now should provide an additional tailwind, supporting spending in the months ahead. And who knows – maybe there will even be a tariff rebate at some point!

Taken together, these factors suggest that the underlying foundation of the economy remains solid.

That said, the path forward is far from clear. The recent geopolitical conflict involving Iran has introduced risks that are difficult to quantify and could have lasting implications for global markets.

Even if tensions ease in the near term, the effects are unlikely to fade quickly. Higher energy prices may keep inflation elevated, limiting the Federal Reserve’s ability to cut rates and keeping policy tighter for longer. With gasoline prices approaching $4 per gallon, the strain is being felt unevenly — reinforcing the “K-shaped” economy, where lower-income households bear a disproportionate share of rising costs. In this environment, both equities and fixed income face headwinds, as rising inflation can increase correlations between the two asset classes and reduce the benefits of traditional diversification.

In periods like this, trying to time markets becomes especially challenging — and often counterproductive.

Staying the Course

In uncertain environments like this, the focus should remain on staying invested, staying diversified, and staying disciplined.

The first quarter of 2026 reinforces why. While many concentrated portfolios struggled, diversified investors were better positioned to navigate shifting market leadership.

At DWM, our approach remains consistent: build diversified portfolios, rebalance thoughtfully, and position clients to navigate a wide range of outcomes — not just the ones expected.

Brett M. Detterbeck, CFA, CFP®

DETTERBECK WEALTH MANAGEMENT

* represented by the DFA Emerging Markets Fund, ** represented by the Goldman Sachs International Equity Fund, *** represented by the Barclays Capital Global Agg Bond Index

†Performance shown reflects composite results of multiple client accounts managed in accordance with DWM investment models. Composite results are presented to illustrate strategy performance and may not reflect the performance of any single client account. Actual client results may vary due to differences in timing, cash flows, fees, and account-specific factors. Past performance is not indicative of future results.

The post DWM 1Q26 Market Commentary: A Quarter of Sudden Change & Wide Dispersion appeared first on Detterbeck Wealth Management.

The 5-Question Financial Checkup

Question 1: Do your investment strategy and tax strategy get reviewed together each year?

Yes/ No/ Not sure

Question 2: Do you have a clear plan to reduce lifetime taxes — not just this year’s bill?

Yes / No/ Not sure

Question 3: Is your financial plan updated regularly and tied to your actual goals?

Yes / No / Not sure

Question 4: Do all your advisors (CPA, investment, estate) coordinate with each other?

Yes I No / Not sure

Question 5: Do you feel confident that everything is organized and working as it should?

Yes I No/ Not sure

If you answered “No” or “Not sure” to even one of these, there’s a good chance your financial life isn’t as coordinated as it could be.

That’s exactly how DWM can help. If you’re curious to know where you stand in your financial life, browse through our website to see how we operate. And we’re always happy to have a conversation… just stop by our offices on Civitas — right here in I’On.

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College is important. Take a look at the graph below. For those students who graduate college, they have that much higher earnings potential which typically leads to improved livelihood. A college degree typically pays for itself by age 30. Further, college graduates enjoy much better job security and job opportunity especially during economic downturns. Did you know that 70% of all jobs are held by workers that attended college? Further, college offers some significant social benefits including personal identity and confidence building.

But college isn’t cheap. College tuition costs have increased more quickly than just about any other household expense in recent decades with the average annual inflation rate historically around 5%+, though closer to 2–4% in recent years. The cost of college typically rises because schools continually spend more money to attract the best students as well as hire more faculty and administrative staff, while receiving less and less financial support from the states. The reality is we don’t see college costs getting cheaper any time soon.

Take a look at the graph below to see where the average cost of public and private tuition is for a four-year program now for an 18-year-old versus what it could be for a newborn. Those figures could make any parent cry! The key is to start planning early. It’s also essential to be realistic about financial aid and making sure that savings earmarked for college are being invested.

By the way, only about 40–45% of students graduate in four years, and roughly 60% within six years so keep that in mind. One way to really bring costs down is going the community college route, perhaps for the first couple years and then the college you really want for the balance. Staying close to home also allows the student to hold a part-time job where they can add to their education savings account for a few more years!

Roughly 60% of families receive some form of aid, often averaging in the $7,000–$10,000 range annually. Hence, understanding what the cost of college is per the graph above, this barely makes a dent. Further, full ‘free ride’ scholarships are extremely rare. Regarding Federal financial aid eligibility, see the graph below for details. Unfortunately, many of the families that we work with won’t qualify.

As for athletic scholarships, don’t count on it. Only about 2% of high school athletes receive scholarships to play college sports and they usually only cover some costs. Sorry, but unless you have another Caleb Williams slinging the football around in your house, it’s probably not going to happen.

Many families wonder if a merit-based scholarship is in the making for their children. Scholarships are awarded for exceptional grades, exceptional test scores, exceptional athletics, etc. But as a parent that recently went through the college application process with two children, we know that the big name colleges are extremely competitive. Merit is really hard to come by unless that student is “perfect-perfect”, think 5.0 GPA and close to 1600 SAT / 36 ACT.

The good news is that if you’re willing to go to a school that’s not in the “top 50”, your chances of a merit-based scholarship improve dramatically, and you may be able to save literally hundreds of thousands of dollars. For my younger son, we settled upon Iowa State instead of some bigger name schools, thus saving our family potentially $100,000+ on the total cost of college!!! Let’s go, Cyclones!!!

Of course, there’s always the option of student debt, but it can be a major burden. Do you really want you or your child having that heavy weight on their shoulders right when they’re trying to launch their career and possibly start their own family?!? And don’t make the mistake of considering paying for college with your own retirement funds, jeopardizing your retirement security. That’s a big-time no-no!  

By planning early, families can really make the process a feasible one versus one full of concern and anxiety. And one of the best ways to start is via a 529 college savings plan. These plans offer extremely nice benefits including:

• Tax-free investing and withdrawals for ‘qualified education expenses’.
• Account owner control for the life of the account.
• No income limits on contributions or age restrictions on beneficiaries.
• High contribution maximums (often $400,000 or more per beneficiary) depending on state.
• State income tax deductions on 529 contributions are possible in many states, including Illinois and South Carolina
• For estate planning purposes, they allow contributors, e.g. a wealthy grandparent or other family friend, to “front-load” funding by putting in five years’ worth of gifts, thus a tax free gift of up to $190,000 for a married couple, for the beneficiary in a single year!
• And a newer provision that gives you the option to make a tax-free rollover into a Roth IRA in the name of the beneficiary! Folks used to get concerned about overfunding a 529, but now you can roll up to $35K over. This can turn into an amazing retirement vehicle for your child! For example, a 25-year-old that receives this 529 money into a Roth in their name could potentially grow to hundreds of thousands over time depending on market returns!!!

A quick note on a new option coming in 2026 – “Trump Accounts”:

Beginning in 2026, the federal government is expected to roll out a new program often referred to as “Trump Accounts.” For children born between 2025 and 2028, the government is expected to provide a $1,000 seed investment into a tax-advantaged account. While details are still being finalized, these accounts could serve as a helpful supplemental savings vehicle. However, they are not expected to replace the flexibility and broader use of 529 plans, which remain the primary tool for college savings for most families. As always, we will continue to monitor updates and help families determine how (or if) these new accounts fit into their overall college planning strategy.

Further note: There are other different vehicles for college savings including custodial accounts like an UTMA/UGMA or a Coverdale Education Savings Account, but we generally see the 529 as the best fit for our family and clients. 529 can be advantageous over other ways of funding like using your own Roth IRA or life insurance, home equity loan, or private loan.

At the end of the day, it’s important to not just start saving early, but also to invest ASAP. With the inflation rate of college at 5.5% per annum, simply saving money in cash won’t get the job done. The sooner you start investing, the more time you have to grow your college fund via the power of long-term compounding. Get into gear and put your college investing on auto-pilot with regular automatic monthly or semi-monthly payments and watch it grow! Here’s a great chart below to show exactly how much monthly investment is needed to achieve a public or private college funding goal. One can clearly see the importance of starting as early as possible. Many young parents may not be able to put as much into the account as the table reads below, so take advantage of other cash “bumps” like: a job bonus, a family gift, or a tax refund! Don’t spend that extra cash on something nonsensical – pave your child’s college success by contributing now!

In conclusion, we hope this blog provides those couples thinking about having children / more children a better understanding of what goes on with college planning essentials. As a financial planner and family member who has personally gone through the process twice in the last several years, I can tell you that the most essential part is getting started as early as utterly possible. Truth be told, I had a 529 plan established with auto-contribution feature in place the week of both my boys’ birth. Never too early to start!

The post COLLEGE PLANNING 101 (2026 edition) appeared first on Detterbeck Wealth Management.

If there were a pot of gold at the end of the rainbow labeled “Retirement,” we’d all just follow the map and call it a day. Unfortunately, building wealth doesn’t work that way.

It’s not about luck. It’s about consistency, discipline, and a bit of patience.

One of the most important financial decisions you’ll make is determining what percentage of your paycheck goes toward savings and investments.

Is There a Magic Number?

Everyone wants a simple answer; a clean, perfect number.

But much like finding a four-leaf clover, it’s rare. And even when you find one, it doesn’t do much without a plan behind it.

There’s no universal “right” percentage. Everyone’s situation is different – income, lifestyle, debt, age, and long-term goals all matter.

That said, a helpful guideline is to save 10–20% of your gross income.

• If you’re early in your career and still have 30+ years until retirement, you may be able to start in the high single digits (around 8–10%) and increase over time.
• If you’re 45 and haven’t saved much yet, even 20% may not fully fund your retirement goals.

The key is understanding where you stand – and adjusting accordingly.

A Simple Framework: The 50/30/20 Rule

You may have heard of the 50/30/20 rule as a starting point for organizing your finances. It’s simple, practical, and—unlike chasing luck—something you can actually control.

• 50% Needs: Housing, utilities, groceries, insurance, transportation
• 30% Wants: Dining out, travel, entertainment, lifestyle upgrades
• 20% Savings: Retirement, investments, emergency funds, and debt reduction

This framework works because it forces savings to be intentional rather than something you hope is left over at the end of the month.

Of course, real life doesn’t always follow neat percentages:

• High cost-of-living areas may push “needs” above 50%
• Late starters may need to save well beyond 20%
• Others may prioritize debt reduction first

The goal isn’t perfection; it’s progress.

Or said another way: you don’t need the luck of the Irish… just a plan you’ll actually stick to.

Why So Many People Fall Behind

For many, these numbers feel overwhelming.

It’s easy to justify one more subscription, one more upgrade, one more expense…

Before you know it, your paycheck disappears faster than a round of drinks on St. Patrick’s Day.

The reality is that many Americans are under-saving; not because they don’t care, but because saving isn’t built into their system.

But here’s the good news: small, consistent action can make a dramatic difference.

How to Increase Your Savings

You don’t need a dramatic overhaul – just a few smart moves, repeated consistently.

1. Start Small. Start Early. Start Today.

Time is the closest thing we have to financial magic. Compounding does the heavy lifting if you give it enough time.

2. Save Automatically

Align savings with your paycheck. When it’s automatic, you remove the temptation to spend first.

Consider this:
Saving $100 per week can grow to over $1.5 million at 8% over 40 years.

Not quite a pot of gold—but it’s about as close as most of us will get.

3. Use Employer Retirement Plans

401(k)s, 403(b)s, and Roth options allow your money to grow more efficiently through tax advantages.

4. Capture the “Free Lunch”

If your employer offers a match (often around 3% or more), take advantage of it.

Skipping the match is like walking past a pot of gold and saying, “No thanks, I’ll wing it.”

5. Use Auto-Escalation

Increase your savings rate gradually, 1–2% per year or whenever you get a raise.

6. Save Your Raises

When your income goes up, try to keep your lifestyle steady and redirect the difference toward savings.

7. Allocate Bonuses Strategically

Before spending it all on a trip to the Guinness brewery in Dublin, put a portion toward long-term investments.

8. Use Tax Refunds Wisely

A refund is an opportunity, not just a spending spree.

9. Reduce Spending Intentionally

Tracking your spending can uncover opportunities you didn’t realize were there.

Even small changes can add up over time.

The Most Important Decision

At the end of the day, the most important retirement decision you’ll make is accepting responsibility for funding it yourself.

Markets will change.
Tax laws will evolve.
The future will always hold uncertainty.

But your savings rate? That’s something you can control.

And while a little luck never hurts, a strong financial future is far more about good habits than good fortune.

Final Thought

Time is either your greatest ally or your greatest obstacle.

Start today.

Because when it comes to retirement, the real “luck” isn’t something you find; it’s something you build.

And if you’d like help building a plan that doesn’t rely on luck, the team at DWM is here to guide you every step of the way.

Sláinte!

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