An Investing Pro's 5 Moves to Help Ensure 2025's Banner Year in the Markets Continues to Work Hard for You in 2026

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As 2025 winds down, many investors are reflecting on what has been, by most measures, a very strong year for stock market performance.

From robust corporate earnings and moderating inflation to a lower interest rate environment, many asset classes have enjoyed significant tailwinds.

The question now isn't simply how much you've gained, but how you'll position those gains for lasting success in the years ahead.

Periods of strong performance can create a false sense of security, but seasoned investors know that wealth preservation and long-term growth require ongoing discipline.

Market conditions and personal circumstances evolve, meaning that proactive, strategic planning is key as we turn the page to 2026.

Here are several year-end considerations to help ensure your wealth continues to work hard for you in the year ahead:

1. Re-invest with purpose

A strong year often leaves investors with excess cash or concentrated positions. Rather than simply re-investing in the prior year's winners, take the opportunity to revisit your long-term objectives.

Your investment strategy should reflect your goals, not short-term market movements.

Consider opportunities in sectors or asset classes that might be better positioned for future growth rather than those that peaked in 2025.

2. Rebalance your portfolio

After a year of robust returns, portfolio allocations might have drifted away from their original targets.

Rebalancing helps realign investments with your intended risk profile, ensuring you don't unintentionally take on more risk than you're comfortable with.

It's also an effective way to lock in some of this year's gains and re-invest strategically into areas that could offer better long-term value.

4. Prepare for market uncertainty

Even after a strong year, markets remain unpredictable. Geopolitical risks, policy shifts or changing consumer trends could easily introduce volatility in 2026.

Building flexibility into your plan, through diversification, defensive assets and a clear understanding of your time horizon, can help protect your wealth while keeping you positioned for opportunity.

5. Avoid being swayed by short-term noise

Momentum-driven markets can tempt investors to chase returns or make reactionary decisions.

Instead, position your strategy on your broader financial plan. Short-term corrections are a normal part of investing; maintaining perspective and patience will serve you far better than trying to time the next move.

Final thoughts

A standout year like 2025 is a cause for celebration, but lasting financial success comes from disciplined planning, not short-term excitement. The transition into a new year is an ideal time to reassess, not overhaul, a financial plan.

By managing gains strategically, preparing for uncertainty and keeping long-term goals at the forefront, investors can turn achievements into a launching pad for continued growth and financial confidence in 2026.

Staying engaged with an adviser, reviewing plans regularly and making intentional adjustments can help investors work toward building a portfolio that continues to evolve alongside goals and aim for the strong results of 2025 to translate into steady, sustainable performance in the years ahead.

Rebalancing a portfolio might cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Asset allocation does not ensure a profit or protect against a loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations to any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.