Crestwood Advisors, Author at Crestwood Advisors

Beyond the Numbers: How Women Are Redefining the Experience of Wealth

For many women, wealth is not just about accumulation, it’s about flexibility, independence, and the ability to navigate life’s complexities with confidence. That perspective is increasingly shaping how financial decisions are made and what long-term success looks like.

March offers a natural moment to pause and reflect on the achievements, influence, and evolving roles of women. In the U.S., it’s recognized as Women’s History Month, and globally, March 8th marks International Women’s Day. In that spirit, it is also an opportunity to consider how women often experience life, and wealth, a bit differently. Not in ways that need to be overcomplicated, but in ways that are important to recognize.

For many women, the financial journey is shaped less by a straight line and more by the rhythm of life itself, periods of momentum, pause, responsibility, and reinvention. Careers may evolve alongside family needs, raising children, supporting aging parents, or recalibrating priorities as circumstances change. These decisions are rarely made in isolation; they reflect values, relationships, and a broader definition of what it means to build a life of purpose.

At the same time, women often carry a longer time horizon. Living longer on average can mean more chapters, more time spent building, supporting others, and eventually navigating life independently. Over time, many women step into greater financial responsibility, sometimes gradually, sometimes all at once. What begins as a shared effort can become more individual, bringing both opportunity and complexity.

These shifts don’t always come with a clear roadmap. Historically, many women were less involved in day-to-day financial decisions, often by design or circumstance. That dynamic is changing. More women are engaging earlier, asking thoughtful questions, seeking context, and wanting to understand not just what decisions are being made, but why. Confidence tends to build not from having every answer, but from developing a clear sense of direction over time.

There are also broader realities that shape this experience. Differences in earnings and career paths still exist, and while they may feel incremental in the moment, they can compound over time. What stands out, however, is how many women approach these dynamics, with a steady, long-term mindset and a focus on making thoughtful, intentional decisions. That discipline, grounded in consistency rather than reaction, can be a meaningful advantage over time.

We are also in the midst of a broader shift. As wealth transitions across generations, women are increasingly stepping into the role of primary decision-maker. Often, this occurs during already significant life moments, times that require both reflection and action. With that comes an opportunity to shape not just financial outcomes, but the role wealth plays more broadly: supporting family, enabling flexibility, and creating a sense of stability and independence.

This Women’s History Month, it is worth recognizing not just how much has changed, but how women continue to shape what comes next, within families, communities, and across generations. While every path is different, the desire for clarity and confidence remains consistent.

At Crestwood, we work closely with women navigating these moments, whether that means stepping into greater financial responsibility, balancing competing priorities, or simply wanting a clearer understanding of where things stand. If this resonates, we would welcome the opportunity to continue the conversation.

Refocus, Refresh, and Reset Your Financial Life This Spring

Spring cleaning is a familiar ritual. We open the windows, clean out closets, and refresh the spaces we inhabit every day. But just as dust accumulates in the corners and under the beds of our homes, financial clutter can quietly accumulate in our accounts, documents, and financial plans.

Financial “spring cleaning” is not necessarily about making dramatic changes. Rather, it’s about restoring clarity and intention. By organizing accounts, updating beneficiaries, reviewing account titles, reevaluating cash flow, savings, and retirement assets, and refreshing your financial plan, you can keep your financial life aligned with your goals.

Update Beneficiaries
One often-overlooked aspect of financial housekeeping is designating beneficiaries. Retirement accounts, life insurance policies, and certain brokerage accounts pass directly to named beneficiaries, outside of your will. Outdated designations, especially following major life events like marriage, divorce, birth of a child, or death of a loved one, can result in unintended consequences.

Review each account and confirm that both primary and contingent beneficiaries reflect your current wishes. Don’t ignore the “per stirpes” option to ensure your intended split. If your estate plan includes a revocable trust, ensure that beneficiary designations align with that structure.

Update Estate Planning Documents
In addition to beneficiary updates, review core estate planning documents such as wills, trusts, powers of attorney, and healthcare directives. Laws change, family circumstances evolve, and financial complexity increases over time. An estate plan drafted years ago, or in another state, may no longer reflect your current circumstances.

Confirm that executors, trustees, or guardians remain appropriate choices. Ensure that your powers of attorney are current and recognized by financial institutions. Don’t forget to address digital assets, including instructions for accessing online accounts.

Simplify Your Financial Life
Financial clutter often results from career transitions. Many individuals accumulate multiple employer-sponsored retirement plans over time. Leaving assets scattered across several 401(k) accounts can make investment management more complicated and may increase fees.

Rolling these into one or two IRAs (Rollover and/or Roth, depending on the tax treatment) can centralize investments, broaden available investment options, and reduce administrative complexity.

Streamlining can also apply to non-retirement accounts. Consolidating accounts may improve reporting efficiency, reduce paperwork, and enhance coordination with your advisor. Fewer accounts often mean fewer blind spots and fewer online passwords to remember. Always use strong, unique passwords to safeguard your online presence and update them periodically.

Refresh Your Investment Strategy
Over time, market movements can cause portfolios to drift away from their intended allocation. In addition, there may have been changes to your situation that can affect your investment strategy. Spring cleaning provides an opportunity to review asset allocation, risk exposure, and performance of your investments with your team to determine if your asset allocation should be adjusted to restore alignment with your goals and risk tolerance.

Evaluate whether your portfolio still reflects your time horizon, liquidity needs, and current economic circumstances. For retirees or those nearing retirement, confirm that sufficient liquid assets are still available to fund short-term needs without forced selling during periods of volatility. For younger investors, ensure that growth-oriented allocations remain consistent with long-term objectives.

Check Your Coverage
It can also be a good time to reassess insurance coverages. Review life insurance amounts relative to income replacement needs, debt obligations, and education funding goals. Confirm that disability insurance remains adequate, especially if income has increased. Evaluate property and umbrella liability coverage to ensure sufficient asset protection.

As your net worth grows, so does your risk exposure. Proper coverage provides peace of mind and preserves financial stability in the face of unexpected events.

Plan For the Future
Finally, spring offers a natural opportunity to refresh your perspective and plan for the future. It can be a time to speak with your advisor to revisit and clarify short- and long-term goals including cash flow, retirement savings and timing, education funding, home purchases, charitable giving, business succession, or travel plans.

Cash flow planning is key. Reexamining your cash inflows and outflows allows you to best align resources with priorities. If extra cash exists, deploy it strategically toward investment or debt reduction. If constraints exist, adjust spending or savings accordingly.

Restoring Order
Spring cleaning is not always fun, but the sense of order it brings is rewarding. The same is true when you take time to bring clarity and organization to your financial life. By stepping back to organize, streamline, and revisit your plan, you can help ensure your finances remain aligned with your goals and priorities.

Just like spring cleaning your home, organizing your finances is easier with a plan. Start by building a checklist of priorities and let your Crestwood team guide you through each step with clarity and confidence.

If you are not yet a Crestwood client, we welcome the opportunity to connect and support you, contact us.

March 2026 Economic Update: The Markets Shifts on AI Expectations

February delivered rotation, drama, and a useful reminder that not all markets move in the same direction at once.

The AI Trade Gets More Complicated
Nvidia posted a genuine blowout fourth quarter, with revenue up 73% year over year and data center demand still accelerating, yet shares fell more than 5% the day earnings were released.¹ The Magnificent 7 is now down roughly 7% year to date.² It was a clean illustration of where the AI trade stands heading into 2026: fundamentals remain strong, but the market has moved from pricing in potential to demanding proof.

Disruption anxiety: Mentions of AI disruption on S&P 500 earnings calls nearly doubled from the prior quarter.³ That is encouraging if your company is building the infrastructure. It is considerably less so if your business model might be disrupted by AI. In the market’s crosshairs are software stocks, which have been hit hard over concerns that AI will be easily able to create competing solutions. The stock prices of private credit firms that lend to these software companies likewise pulled back on similar worries.
The Counterpoint: Fundamental earnings for most software stocks have remained stable. Many firms have reiterated guidance and some companies like Salesforce announced a massive share buyback, indicating that investors may be overestimating the depth and breadth of AI disruption. So too with private credit funds, where the loan books of higher quality lenders appear healthy.
Belief in future success of AI remains high: Open AI raised $110 billion in their most recent round of funding, bringing the estimated valuation to $840 billion.⁴ This reflects private capital’s seemingly insatiable appetite for AI models. For perspective, at an $840 billion market capitalization, OpenAI would be the 12^th largest company in the S&P 500. OpenAI’s revenue is growing quickly, but the path from revenue to durable, defensible profit remains years away.

Implications for Investors: The AI trade is just starting to evolve. The era of rewarding any company with “AI” in its investor deck is giving way to one that demands evidence of monetization, defensible competitive position, and a credible path to returns on capital. Infrastructure providers with genuine pricing power remain attractive. Owning broad, diversified exposure rather than concentrated bets on any single theme, whether hardware, model providers, or AI-adjacent software, remains the prudent strategy. The winners of the next phase may look quite different from the leaders of the last one.

Tariffs, the Supreme Court, and a Messy Macro Backdrop

February produced the most dramatic tariff development since early 2025 when the Supreme Court ruled 6-3 that the president exceeded the International Emergency Economic Powers Act (IEEPA) authority used to impose broad reciprocal tariffs. Those tariffs had pushed the average effective U.S. tariff rate to roughly 16% at their peak, the highest level since the 1930s. The court struck down President Trump’s use of tariffs under IEEPA.

The legal response and new tariff authority: President Trump responded by invoking Section 122 of the Trade Act of 1974, a narrower authority that permits tariffs of up to 15% for up to 150 days to address balance-of-payments deficits. A 10% global tariff took effect February 24; the following day the president announced his intention to raise the rate to 15%. Previously negotiated bilateral framework agreements with major trading partners remain in place, for now.
Tariff Layer Cake: The IEEPA tariffs were the largest single layer, but not the only one. Other tariffs remain intact: 50% on steel and aluminum, 25% on imported automobiles, and 10% on lumber. The U.S.-China truce also remains in effect. The average effective tariff rate fell from roughly 16% at its peak to an estimated 13.7% following the ruling and the Section 122 replacement.^{7, 8}
GDP and the macro backdrop: Fourth quarter growth came in at 1.4%, well below the 2.8% consensus, partly due to the 43-day government shutdown, which likely reduced GDP by 1-2% according to the Congressional Budget Office (CBO). Consumer spending and business investment were both positive underneath the headline, suggesting underlying momentum remains intact.^{5, 6}
Inflation and the Fed: January PPI rose 0.5% for the month versus a 0.3% forecast. Core PPI gained 0.8%, more than double expectations. That combination may encourage the Federal Reserve to remain cautious about cutting rates. The next FOMC meeting is March 17 to 18, with updated economic projections to follow. Rate cuts remain possible in 2026, but a re-acceleration in wholesale prices as well as inflationary pressures coming from the new conflict in Iran makes this less certain.^{7, 8}

Implications for Investors: The tariff story has a new chapter but is far from over. The Section 122 tariff expires around mid-July 2026 absent congressional action, creating a near-term policy cliff. New tariff authority is being pursued through additional legal vehicles while companies like Costco who were heavily impacted by the tariffs will seek reimbursement. For investors, diversified geographic exposure remains the sensible hedge. The combination of tariff uncertainty, the evolving situation in Iran and sticky inflation may limit the Fed’s ability to respond if growth weakens.

Trends Worth Noting

Buybacks hit a record: Corporate America authorized $233 billion in February repurchases, the largest February on record. Salesforce, Walmart, and Verizon led.⁹ Companies buying their own stock at this scale represents sustained, informed demand for equities.
Small caps outperformed: The Russell 2000 is up roughly 6% year to date while the S&P 500 is essentially flat.¹⁰ Smaller companies draw more revenue domestically and stand to benefit most from any eventual Fed rate cuts.
International markets led: Developed markets outside the U.S. gained roughly 10% year to date, with the MSCI EAFE logging 14 consecutive weekly gains late in the month.¹¹ Emerging markets added 14%.¹² European earnings momentum and a slight dollar decline both helped.

The Takeaway
Earnings season confirmed healthy fundamentals: roughly 14% year-over-year earnings growth, the fifth consecutive quarter of double-digit expansion.¹³ The underlying economy is slowing from its recent pace but still growing. The rotation toward smaller companies and international stocks validates the case for diversification we have been making for months. Patience and discipline remain the appropriate posture.

RETURN OF MARKET INDICES
Global equity markets (MSCI ACWI) were positive for the month (+1.3%) led by non-U.S. Equities. U.S. large caps were down slightly in February (S&P 500 -0.8%) while U.S. small caps (Russell 2000) were the reverse mirror image, rising by 0.8%. International developed (MSCI EAFE) and emerging market equities (MSCI Emerging Markets Index) were the standouts rising by 4.7% and 5.5%, respectively. Bonds provided quiet ballast as yields drifted lower on slowing growth data, with prices rising 1.6% for the month.

Source: Bloomberg. EAFE is MSCI EAFE Index⁽¹⁾, Emerging Markets is MSCI Emerging Markets⁽²⁾ and U.S. Bonds is Barclays U.S. Aggregate⁽³⁾. ACWI is the MSCI ACWI Index⁽⁴⁾. Small Caps is the Russell 2000 Index⁽⁵⁾. S&P 500 is the S&P 500 Index⁽⁶⁾. The above information is as of 2/28/2026.

Sources

¹ Bloomberg Equity Markets; Nvidia Q4 FY2026 earnings release, February 26, 2026.

² Bloomberg Magnificent 7 Index, year-to-date return as of February 27, 2026.

³ Bloomberg transcript analysis of S&P 500 Q4 2025 earnings calls, February 2026.

⁴ Bloomberg News, OpenAI Series G financing, February 2026.

⁵ U.S. Bureau of Economic Analysis, Advance Estimate of Q4 2025 GDP, released February 20, 2026.

⁶ U.S. Congressional Budget Office, estimate of partial government shutdown impact on Q4 2025 GDP growth, February 2026.

⁷ U.S. Bureau of Labor Statistics, Producer Price Index news release for January 2026, released February 27, 2026.

⁸ Federal Reserve, FOMC meeting calendar. The March 17 to 18, 2026 meeting will include a Summary of Economic Projections (federalreserve.gov).

⁹ Birinyi Associates, U.S. corporate buyback authorization data, February 2026, as reported by Bloomberg. $233.3 billion authorized in February, the largest February on record. Individual company figures from company investor relations announcements: Salesforce $50 billion (February 25, 2026); Walmart $30 billion; Verizon $25 billion.

¹⁰ Russell 2000 Index and S&P 500 Index, year-to-date total returns as of February 27, 2026. FTSE Russell; S&P Dow Jones Indices.

¹¹ MSCI EAFE Index, year-to-date net total return as of February 27, 2026. MSCI Inc.

¹² MSCI Emerging Markets Index, year-to-date net total return as of February 27, 2026. MSCI Inc.

¹³ FactSet Earnings Insight, S&P 500 Q4 2025 earnings season, week of February 27, 2026 (factset.com). Blended earnings growth rate of 14.2% with 96% of S&P 500 companies reporting; fifth consecutive quarter of double-digit earnings growth.

Financial Alignment for Couples: Expectations vs. Reality

Most couples feel confident about how they communicate around money. Fidelity’s 2024 Couples & Money Study found that nearly 9 in 10 couples say they communicate well or very well about finances, and many report making important financial decisions together.¹

Yet money remains one of the most common sources of tension in long-term partnerships. While many couples report feeling aligned, a meaningful number still experience recurring disagreements, stress, or avoidance as financial decisions become more complex or emotionally charged.¹

Money decisions are rarely just about numbers.

Different Backgrounds, Different Assumptions
Each partner brings their own financial history into the relationship. How money was handled earlier in life, whether it was discussed openly, avoided, or treated as a source of security or stress, often influences attitudes toward spending, saving, and risk.

Even in strong relationships, these differences are not always fully understood. Fidelity’s related research notes that more than one-third of spouses do not know what their partner earns, and many couples disagree about how much they need to save for long-term goals.²

These gaps often reflect deeper differences in assumptions and expectations. What feels responsible to one partner may feel overly restrictive or unnecessary to the other. These differences are rarely about right or wrong, but they can quietly drive misunderstandings if left unaddressed.

Managing Financial Complexity as a Shared System
For many couples, the challenge is no longer simply combining finances. It is managing a growing and increasingly interconnected financial picture together.

Multiple accounts, investment strategies, concentrated positions, business interests, real estate, charitable planning, and estate considerations all introduce layers of complexity that require coordination and clarity. As that complexity grows, so does the impact of each decision.

Choices around investment strategy, tax planning, philanthropy, or legacy planning no longer affect just one individual, but the broader financial system the couple has built together. When roles, expectations, or levels of involvement have not evolved alongside that complexity, even well-established couples can experience frustration and misalignment around money.

Decision-Making Under Stress
Even couples who communicate frequently about money can struggle when decisions feel high-stakes or emotionally charged.

Research suggests that individuals experiencing financial stress are significantly less likely to engage in productive financial conversations with their partner.³ Anticipating conflict or discomfort can lead couples to delay or avoid conversations altogether, reinforcing miscommunication and unmet expectations.

This helps explain why confidence in communication does not always translate into confidence in decision-making.¹ It is not simply whether couples talk about money, but how they navigate decisions when uncertainty, complexity, or pressure are present.

The Role of an Advisor
For couples navigating these dynamics, professional guidance can be an effective resource. An experienced financial advisor can help bridge the gap between expectations and reality. An advisor offers a neutral perspective that can help de-escalate emotionally charged discussions and refocus conversations on shared goals rather than blame or fear.

Differences in financial knowledge can create unintentional imbalances. Advisors can help raise the overall level of understanding, so both partners feel confident participating in decisions that affect their shared financial system. Structured conversations create space for discussions that may not happen organically, while ensuring both partners remain equally engaged.

A formal financial plan provides a clear roadmap that reflects both partners’ priorities. Seeing decisions and trade-offs documented helps transform abstract goals into actionable strategies. By involving both partners consistently, advisors foster transparency and accountability.

Supporting Financial Alignment
At Crestwood, we work alongside couples to bring clarity and perspective to these conversations. Through objective guidance and shared planning, we support confident financial decisions aligned with long-term goals and legacy priorities.

If you would like to explore how these dynamics show up in your own financial decision-making, your Crestwood team is always available to serve as a thoughtful sounding board.

1 2024 Fidelity Investments Couples & Money Study
https://preview.thenewsmarket.com/Previews/FINP/DocumentAssets/660835_v4.pdf

2 Fidelity Learning Center – What Spouses Need to Know
https://www.fidelity.com/learning-center/wealth-management-insights/what-spouses-need-to-know

3 Discussing Money With the One You Love: How Financial Stress Influences Couples’ Financial Communication,
Journal of Consumer Psychology, June 15, 2024
https://myscp.onlinelibrary.wiley.com/doi/abs/10.1002/jcpy.1430

Caring for Others While Carrying So Much

More than 63 million Americans serve as family caregivers, often dedicating significant time each week to supporting a loved one, frequently for years at a time. Many are also managing careers, children, households, and broader responsibilities.*

Caregiving can be deeply meaningful, but it can also be physically exhausting, emotionally layered, and quietly overwhelming.

We often see capable, high-functioning individuals assume these responsibilities without hesitation. What’s less visible is the cumulative strain that can build over time.

If you are caring for a loved one, how can you better support yourself along the way? A few considerations may help create steadiness amid the demands:

Acknowledge the Weight

Caregiving is not just a logistical commitment; it is emotional work. The decisions, the vigilance, the sense of responsibility can be constant. Recognizing that strain is not a weakness; it is awareness. Naming it is often the first step toward managing it more sustainably.

Create Space Where You Can

Even small structures can make a difference, shared calendars among family members, clear communication about roles, technology that reduces daily friction, or designated time that protects your own rest. Thoughtful organization is not about control; it is about preserving energy.

Accept That Support Is Strength

Many caregivers default to handling everything themselves. Yet support, whether from siblings, friends, community groups, or professional caregivers, can extend capacity and reduce burnout. Seeking help is not stepping back from responsibility. It is ensuring you can continue to show up well.

Monitor Your Own Well-Being

Persistent fatigue, irritability, health changes, or emotional depletion are signals worth taking seriously. Sustainable caregiving requires caring for the caregiver. Protecting your own health is not separate from supporting your loved one, it is essential to it.

Caregiving rarely unfolds in isolation from the rest of life. It affects relationships, energy, work, and often financial decisions as well. If you are carrying these responsibilities, we encourage you to bring them into the conversation.

At Crestwood, helping families navigate complexity, including the practical and financial implications of caregiving, is part of comprehensive wealth planning. You do not need to manage it alone; your Crestwood team is here to help you approach these decisions with clarity and confidence.

If you are not yet a Crestwood client, we welcome the opportunity to connect and support you, contact us.

This document is provided for general informational purposes only by Crestwood Advisors, an investment adviser. Crestwood Advisors does not endorse, sponsor, or promote any of the products or companies listed or mentioned in this material. Any references to specific products or services are purely incidental and are included solely to illustrate potential strategies or concepts. The inclusion of such references does not imply any form of partnership, relationship, or approval by the Firm.

* Caregiving in the US Research Report, AARP®, National Alliance for Caregiving, July 2025

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February 2026 Economic Update: A Fed Pause and Warsh is Nominated to Chair the Fed

January set a tone for a more cautious investor stance. Much of the U.S. was forced to trudge through snow from recent winter storms and similarly labor markets are trudging slowly along. We remain in a low-hire, low-fire equilibrium. Employers are hesitant to expand, given fiscal uncertainty but are equally loath to let go of trained staff.

While corporate earnings are projected to remain healthy, with an estimated 14% growth for the year, the variables of trade policy and central bank transition create a challenging environment.

After three consecutive cuts to end 2025, the Fed shifted stance to a wait-and-see outlook as the committee voted to hold interest rates steady at the January meeting. The FOMC’s internal debate appears centered on the neutral rate (the level at which policy neither stimulates nor restricts growth) with two of the twelve voters advocating for further cuts to support a slowing manufacturing sector.

A notable development was the nomination of Kevin Warsh to succeed Powell when his term ends in May. During his previous time as a Fed Governor (2006-2011), Warsh was initially supportive of crisis-era liquidity and low rates but opposed the second round of quantitative easing (QE2) in 2011 which he believed would lead to inflation.

Warsh has yet to be confirmed, which could be a challenging process¹, but understanding his outlook on the Federal Reserve can provide insight to how he might act as Fed Chair.

Warsh In His Own Words

In a November opinion piece in the Wall Street Journal², Warsh outlined his vision:

“Fundamental reform of monetary and regulatory policy would unlock the benefits of AI to all Americans. The economy would be stronger. Living standards would be higher. Inflation would fall further. And the Fed will have contributed to a new golden age.”

Setting aside the utopian prose, his outlook is reflected in four theses, and we examine each in the context of what they mean for investors.

1) “The Fed should discard its forecast of stagflation in the next couple of years”. He believes that ”AI will be a significant disinflationary force, increasing productivity and bolstering American competitiveness. Productivity improvements should drive significant increase in real take-home wages.”

Translation: The Fed has been driving by looking in the rear-view mirror (backward looking data that shows a slowing economy and sluggish labor market). Future productivity growth and lower inflation from AI isn’t being factored in, so the Fed is being too conservative.

Implications for Investors:

Warsh’s logic is that AI productivity gains will manifest rapidly, offsetting the potential inflationary risk of lowering rates prematurely. Advances such as the widespread adoption of PCs and the internet have shown that technology that bolsters workers’ productivity has been a boon for economic growth and corporate earnings and helps to lower inflation.
We remain optimistic about the benefits of AI but believe that companies (and their investors) that adapt to this technology will see benefits long before the economy. While we agree with Warsh that AI is a rising tide, we believe some boats will rise faster than others.
If Warsh is less concerned about the potential for inflation, he’s more likely to be willing to lower rates independent of how backward-looking economy data is showing. Lower rates would stimulate the economy and encourage assets like small cap stocks and other speculative investments. This could also provide a tailwind for bond investors

2) “Inflation is a choice.”

Translation: Warsh argues that inflation isn’t the product of an overheated economy but rather the result of too much government spending and expansion of the Fed’s balance sheet. The head of the snake (the Fed) would be eating less of its own tail (buying its own debt).

Implications for Investors:

Warsh favors shrinking the Fed’s balance sheet, which could manifest in a withdrawal of meaningful government buying of Treasurys.
We agree that excessive government stimulus during the pandemic contributed to a surge in consumer spending and was a major contributor to inflation. However, the Fed’s balance sheet is used for quantitative easing (QE) programs designed to provide liquidity to markets and influence interest rates beyond short-term rates. Considering the U.S. Dollar is used globally for trade, many foreign banks and financial entities that hold U.S. Dollars need consistent access to U.S. debt markets. In periods of market stress, the Fed has used its balance sheet to support the normal functioning of cash and bond markets.
While shrinking the Fed’s balance sheet is a laudable financial goal, it may prove difficult if long-term rates crimp consumers or periods of financial stress require Fed intervention.
If this were to occur, it would likely lead to a steepening of the yield curve, which in turn would lead to higher borrowing costs across the economy (mortgages, corporate bonds, etc.). However, higher borrowing costs would slow the economy. Thus, even if the Fed decided to allow the curve to steepen, at a certain point they would be forced to resume purchases. This dichotomy raises doubt (and speculation) about the degree to which the policy might happen.

3) “The Fed’s rules and regulations have systematically disadvantaged small and medium-sized banks, which has slowed the flow of credit”.

Translation: Warsh believes that by easing regulatory requirements for smaller lenders, there will be additional availability of credit.

Implications for Investors:

Improving the availability of credit would help grease the wheels of the U.S. economy by encouraging lending. Smaller banks would have more ability to lend, which could benefit smaller businesses.
However, the benefits of this could be muted in the context of an environment where credit is available, but at higher rates. For example, a lender might be willing to offer a larger mortgage but at a higher rate of interest.
This could lead to real estate prices continuing to remain high.

3) “Fed leaders have tried to bind U.S. banks to a complicated, vaunted set of rules in the name of global regulatory convergence.”

Translation:

Warsh argues that the Fed should seek to deregulate U.S. banks and encourage them to de-couple rather than coordinate with their overseas counterparts.

Implications for Investors:

Deregulation of banks, in general, would likely lead to increased lending and profitability and therefore higher prices on bank stocks.
Many of the current regulations sprang out of past financial crises and were structured to try to prevent history from repeating. Often a crisis may start locally but have global implications. Notable examples like the 2008 Global Financial Crisis, the Great Depression, the Savings and Loan Crisis of the 1980’s-90’s, etc.
While excess regulation acts as a speed bump on the road to revenue, a lack of speed limits and guardrails wouldn’t make banks better “drivers”. It would likely result in banks using greater financial leverage, reducing loan quality and potentially repeating some of the errors that led to the Global Financial Crisis.

Capital Markets

Equity markets saw a notable rotation in January as investors grew cautious of the AI theme driving market recent gains amidst higher valuations. Notably this led to a wider breadth of stocks driving market gains including smaller companies (as measured by the Russell 2000).

Official data reported in January remains cloudy due to the late-2025 government shutdown. This data lag created a volatility vacuum where anecdotal evidence and earnings calls carried more weight than usual as earnings were released.

Emerging Market Equities lead the way returning an impressive 8.9% for the month. U.S. Small Caps (Russell 2000) and Developed International Equities (MSCI EAFE) also showed large gains, returning 5.4% and 5.2% respectively. U.S. Large Caps (S&P 500) lagged, returning 1.44% in January. Bonds, as measured by Bloomberg’s U.S. Aggregate index, were nearly flat for another month, eking out a slightly positive 0.11%.

Return of Market Indices

2025 was a year of economic uncertainty and concern, but also of resilience and growth. In this month’s Economic Update, we look back at the issues that dominated our thinking on the economy and financial markets each quarter and then look forward to what we’re focused on in 2026.

¹Warsh’s journey to become Fed Chair is unlikely to be quick. Post-nomination, the next step toward approval is for vetting to go through the Senate Banking Committee. However, committee member Senator Thom Tillis (R-NC) has indicated he would not on any Fed nominee until the Department of Justice’s investigation of Chair Powell over the Fed’s headquarters is resolved which he believes is politically motivated Senator Tillis’ term ends in 2026, and he is not seeking re-election, making him less susceptible to political pressure. The Senate Banking Committee is narrowly divided (13 Republicans to 11 Democrats), thus if Tillis refuses to support the nominee, the committee the nomination could stall.

2 Warsh, Kevin The Federal Reserve’s Broken Leadership, Wall Street Journal Opinion 11/16/25

This document contains forward-looking statements, predictions and forecasts (“forward-looking statements”) concerning our beliefs and opinions in respect of the future. Forward-looking statements necessarily involve risks and uncertainties, and undue reliance should not be placed on them. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Mindful Money Moves: How Self-Awareness Can Strengthen Financial Decision-Making

When we think about the financial decisions we make, we like to believe they’re always rational. Spend less. Save more. Invest wisely. In practice, however, emotions, habits, and social influences often play a quieter but equally powerful role.

You may find yourself maintaining a long-standing vacation routine even though your family’s schedule and interests have shifted. You might delay replacing a vehicle while weighing timing, tax considerations, or resale value. Or perhaps you’re evaluating a significant discretionary purchase after seeing peers make similar upgrades. None of these choices are inherently wrong, but they are worth considering.

Self-awareness helps surface the behavioral forces behind financial decisions. Familiarity, loss aversion, and social influence can subtly shape outcomes. When recognized, these dynamics become tools rather than blind spots, allowing you to make choices that better align with your broader financial picture and long-term priorities.

Below are several approaches designed to complement the way successful families already evaluate complex decisions.

Thoughtful Approaches to High-Quality Financial Decisions

Create distance before committing.
Significant decisions benefit from space. Allowing time between intention and execution, whether days or weeks, can surface considerations around timing, liquidity, taxes, and opportunity cost that are easy to overlook in the moment.

Clarify the objective.
Before proceeding, articulate what the decision is meant to accomplish, enhancing lifestyle, simplifying complexity, supporting family priorities, or responding to external signals. Precision around purpose sharpens judgment.

Evaluate the full context.
Consider the choice alongside your broader financial architecture: balance sheet strength, upcoming liquidity needs, investment strategy, estate planning priorities, and philanthropic objectives. Strong decisions rarely exist in isolation.

Stress-test the alternatives.
Examine credible paths rather than defaulting to a single course of action. What changes if you act now versus later? Do you allocate capital here versus elsewhere? A structured comparison often strengthens conviction.

Preserve intentional flexibility.
Well-designed financial lives include room for enjoyment and spontaneity, within a framework that protects what matters most. Defining that flexibility in advance allows decisions to feel confident rather than reactive.

We are hard-wired to respond emotionally, and opportunities to act are constant. When faced with a meaningful financial choice, pausing to ask, “How does this fit within my broader plan?” can materially change the outcome.

At Crestwood, we help families connect day-to-day decisions to long-term purpose through a comprehensive planning process that integrates investment strategy, tax efficiency, estate considerations, and philanthropy. If you would like to explore how behavioral insights fit within your own roadmap, your Crestwood team is always available to serve as a thoughtful sounding board.

2026 Brings New Rules For Your 401(K) Accounts

As we move into 2026, retirement savers are facing important rule changes in employer plans like 401(k), 403(b), and 457(b) accounts. These changes affect base contribution limits, “catch-up” contribution limits for those over 50 and between the ages of 60-63, and the tax treatment of “catch-up” contributions for higher-income savers.

Key 401(k) Changes for 2026

The Limit for Base 401(k) Contributions Rises

For 2026, the maximum elective deferral, the amount an employee can contribute from their salary to a 401(k) plan, increases to $24,500, up from $23,500 in 2025. This adjustment reflects inflation and gives savers more room to build their nest eggs each year. Note: this change applies to contributors regardless of age.

Catch-Up Contributions Rise for Older Savers

So-called “catch-up” contributions, additional amounts that older savers can put aside beyond the standard limits, are also rising in 2026. These enhanced catch-up limits are designed to help those closer to retirement age accelerate savings, especially if they started late or temporarily paused contributions in the past.

If you are 50 years of age or older in 2026, you can contribute an additional $8,000 on top of the regular $24,500 limit, for a total employee contribution of $32,500. That’s a bump up from the previous catch-up limit of $7,500.
If you are between the ages of 60 and 63, a new “super catch-up” contribution limit applies. You can contribute up to $11,250 extra in 2026, taking your overall potential employee contribution limit to $35,750.

Catch-Up Contributions Must Be Roth for High Earners

Perhaps the most significant shift for 2026 impacts how catch-up contributions are taxed.

Under a SECURE 2.0 provision taking effect in 2026, catch-up contributions made by participants with prior-year FICA wages over $150,000 must be designated as Roth contributions rather than traditional pre-tax contributions. This means you will pay tax on your catch-up contribution today rather than deferring the tax until retirement.

Note that your 401(k) plan must offer a Roth option for these contributions to take place. If your 401(k) doesn’t have a Roth feature, you might not be able to make catch-up contributions at all under the new rule. Check with your HR or plan administrator about whether your plan supports Roth contributions and, if not, whether it plans to add them.

Keeping Pace with the New Rules

By knowing the rules and planning ahead, you can make smarter decisions about when and how to save. The right moves in 2026 can help you grow your retirement nest egg while managing your tax bill and securing a more predictable income stream for later years.

If you’re unsure about how the new rules will impact your financial plan, please consult with a Crestwood financial advisor or tax professional.

Internal Revenue Service. “401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500.” IRS, 13 Nov. 2025, www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

Crafting Your Legacy

The legacy you leave behind should not be defined solely by the sum total of your estate, but by the goals, values, and purpose that shape how your wealth is created, managed, and transferred, your “why.” Strategic planning, when informed by your intentions, provides a powerful framework for crafting your legacy.

Be Intentional
Creating a strategy for your legacy begins with clarity of purpose. Before technical tools and legal structures are put in place, you must first define what you want your wealth to represent. Core values such as responsibility, generosity, independence, education, and service often shape these intentions. When planning is aligned with these principles, financial decisions gain coherence and direction. This alignment also helps ensure that wealth is not distributed arbitrarily, but intentionally, in a way that reflects both your personal beliefs and long-term goals.

Every decision in strategic planning, how your assets are structured and invested, when they are transferred, and to whom or to what, defines your priorities. When these decisions are motivated by your core values, your wealth becomes a narrative rather than just numbers on a statement. Your plan will tell a story about what matters to you, what you believe, and what you encourage future generations to embody, and that story translates into effective legal, financial, and philanthropic structures to ensure your values and intentions endure across time.

Learn how to invest with intention and continue working towards your legacy goals, even when markets are volatile.

Behavioral Investing: Overcoming Biases for Better Decision Making

February 12, 2026
12:00 pm – 1:00 pm ET
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Prepare the Next Generation.
Succession planning is essential for ensuring continuity, particularly in families with closely held businesses or significant shared assets. Effective succession planning goes beyond defining heirs and key roles, it involves preparing the next generation to manage wealth and business interests, in alignment with the family’s values and intentions. This may include defining leadership roles, establishing governance structures, and providing education or mentorship. By doing so, individuals can reduce the risk of conflict, mismanagement, or dissipation of wealth. Succession planning ensures that assets are not only transferred but entrusted with clear expectations and a shared sense of purpose.

Support Your Values.
Charitable giving offers one of the most direct ways to align wealth with values. Philanthropy allows you to support causes that reflect your beliefs, passions, and vision for a better future. Whether focused on education, healthcare, faith-based initiatives, social equity, or environmental conservation, charitable giving transforms wealth into a force for positive change.

Strategic charitable planning also enables you to give in ways that are sustainable and impactful over time. Charitable trusts, donor-advised funds, and family foundations can provide structure and continuity, allowing charitable intentions to endure beyond a single lifetime. In this way, philanthropy becomes not just an act of generosity but a defining element of your legacy.

Lifetime Gifting.
Gifting is another powerful strategy for both preserving wealth and expressing what is meaningful to you. By transferring assets to family members during your lifetime, you can reduce the size of your taxable estate while directly supporting the development and well-being of your loved ones.

More importantly, gifting provides an opportunity to model your values in action. Thoughtful gifts can be used to encourage education, entrepreneurship, or responsible financial behavior. When paired with open communication, gifting can reinforce lessons about stewardship, gratitude, and accountability. Rather than creating entitlement, values-driven gifting helps cultivate independence and purpose, ensuring that wealth serves as a foundation for growth rather than a source of complacency.

Estate Tax Mitigation.
Tax efficiency is a critical component of preserving wealth and honoring your intentions. Taxes can significantly erode an estate, reducing the resources available to support family members or philanthropic goals.

Estate tax mitigation strategies seek to minimize unnecessary tax exposure through techniques such as leveraging exemptions, utilizing trusts, and timing asset transfers appropriately to help ensure that more wealth is preserved for its intended purposes.

Guide Your Legacy.
Strategic planning guided by core values and clear intentions can play a key role in shaping the legacy you leave behind. Such strategies allow wealth to serve not only as financial security, but as a lasting expression of your purpose, responsibility, and vision. In the end, a well-planned legacy is not measured by the numbers you see on a statement, but by how faithfully it carries forward the values that give it meaning. As you look ahead to the coming year and beyond, think about the steps you can take to ensure that your legacy is the one you intend.

If you would like support in helping you plan for your legacy, your Crestwood team is here to help you move into the next stage with confidence.