FINANCIALLY FOCUSED
December 2025 Newsletter
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IS THERE AN AI BUBBLE AND WHAT SHOULD I DO?
With AI dominating headlines - surging stock prices, rapid innovation, and talk of a technological revolution - it’s natural to wonder: Is this another tech bubble?
WHERE THE HYPE IS (AND ISN'T)
Some AI firms and app developers are valued far beyond their current earnings, creating pockets of speculation and potential volatility. Other AI companies-- chipmakers, data centers, and infrastructure providers - are supported by real demand and meaningful revenue.
AI isn’t just about future promise; it’s already being used across industries to automate tasks, improve efficiency, and boost productivity. The impact is measurable today.
TECHNOLOGY IS STILL ADVANCING QUICKLY
AI is improving every few months. Some companies will thrive, and others won’t - similar to the dot-com era - but AI’s long-term influence is likely to mirror the internet, only faster. That speed may create volatility, but it also reinforces AI’s staying power.
WHAT THIS MEANS FOR YOUR PORTFOLIO
The goal isn’t to chase speculative AI stocks or avoid the sector entirely. We focus on high-quality companies with solid fundamentals, real demand, and durable advantages - held within a diversified, risk-aware strategy designed to capture long-term opportunity while managing risk.
BOTTOM LINE
There is some froth in AI, but there’s also a strong, lasting foundation. Volatility may come and go, yet AI’s long-term economic impact is likely to be significant.
As always, we’re here to help ensure your financial plan stays aligned with your goals and comfort level. If you’d like to discuss how AI fits into your broader investment strategy, please reach out.
We are discussing with clients their need for income in the next year or two or even three and depending on their risk tolerance and liquidity needs we are moving some of the assets to cash inside of their account where they can earn reasonable interest and reduce or eliminate the market risk so these assets can be there when needed.
Should we talk about this?
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2026 SOCIAL SECURITY COLA: WHAT YOU NEED TO KNOW
The Social Security Administration (SSA) has announced a 2.8% cost-of-living adjustment (COLA) for 2026, which is up from 2.5% in 2025, but is still among the smaller increases in recent years, according to a Kiplinger article headlined, 2026 Social Security COLA is 2.8%: What You Need to Know.
For the average retiree, that translates into an increase of about $56 per month, with the average monthly benefit rising from roughly $2,015 to $2,071. Married couples can expect an average monthly check to climb from about $3,120 to $3,208.
PUTTING IT IN PERSPECTIVE
While the 2.8% increase is slightly above the recent average (around 2.6% over the past 20 years), it may not keep pace with rising costs in housing, health care, or other retirement-specific expenses. As the article notes, a 2.8% increase is modest, especially for retirees whose cost increases may be higher.
OTHER KEY UPDATES
Beyond the COLA, two other Social Security figures are changing in 2026. The taxable wage base, which is the maximum amount of earnings subject to Social Security tax, will rise from $176,100 in 2025 to $184,500.
Additionally, the amount needed to earn a Social Security work credit will increase slightly.
In 2026, you’ll earn one credit for every $1,890 of income. You can earn up to four credits per year, and most workers need 40 credits total (roughly 10 years of work) to qualify for full retirement benefits at their full retirement age.
WHAT YOU SHOULD DO NEXT
Review your benefit statement with your financial services professional and calculate if the increase will meet your expected costs. If you’re still working and collecting benefits early, check how earnings limits could affect your payments.
SOURCE
https://www.kiplinger.com/retirement/social-security/social-security-cola-2026
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WHAT WE’RE READING
There’s been no shortage of outstanding and informative financial news stories during the last few weeks, here’s some of our favorites:
- Thinking about purchasing a new home? Check out what this Yahoo Finance article has to say about mortgage rates, Will mortgage rates ever drop to 3% again?
- https://finance.yahoo.com/personal-finance/mortgages/article/will-mortgage-rates-ever-be-3-again-183831629.html
- An article from Kiplinger, Five Smart Moves for Retirement Health Care: Maximize Your HSA and Medigap Savings, has some tips for retirement healthcare strategy.
- https://www.kiplinger.com/retirement/retirement-planning/smart-moves-for-retirement-healthcare-from-hsas-to-medigap-policies
- An article from U.S. News and World Report, Will Younger Generations Win the Retirement Race? notes that a recent survey indicates millennials may be better prepared for retirement than previously thought.
- https://money.usnews.com/money/retirement/articles/how-the-generations-compare-on-retirement-savings
- If you’re about to begin your holiday shopping or, more importantly, setting a budget for your holiday shopping the CNBC article, Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts is a can’t miss.
- https://www.cnbc.com/2025/10/31/tariffs-are-expected-to-start-showing-up-more-in-consumer-prices-as-holiday-shopping-season-starts.html
- When approaching retirement, many people ponder enjoying their golden years abroad, assuming a lower cost of living. But the MarketWatch article, Retiring abroad is touted as a money saver — but it isn’t always cheaper explains that assumption may be wrong.
- https://www.marketwatch.com/story/retiring-abroad-is-touted-as-a-money-saver-but-it-isnt-always-cheaper-over-there-662921d4?gaa_at=eafs&gaa_n=AWEtsqcNrDsJGFBbPWaMWNjEUphnF8NkLxkBq0RyzwYcJROvdzDfziDM1Gib4bLytys%3D&gaa_ts=6905072f&gaa_sig=q2DL0z4RFZkQ8ypqXndaUUcCML3zY-jeIqmqjxEKwWmtQTDqWZ_M2bj5ZiSAsszcEQFSZaPcF4qqMT0qFKT-Dw%3D%3D
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SNOW IS WARM?
Snow is a great insulator and can keep you warm because it is made up of 90% trapped air. Many animals burrow into the snow to keep themselves warm during hibernation. The insulation is also the reason that igloos can be 100 degrees warmer on the inside, because of the body heat warming them from the inside.
SOURCE
https://www.hgtv.com/lifestyle/holidays/brilliant-fall-facts-and-autumn-curiosities-pictures
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SPINACH-ARTICHOKE CHRISTMAS SKEWERS
Bring some festive flair to your holiday spread with Spinach-Artichoke Christmas Skewers. These skewers combine creamy spinach-artichoke flavor with a colorful, cheerful presentation that’s perfect for entertaining. Easy to assemble, crowd-pleasing, and full of holiday spirit, they make a fresh, flavorful addition to any Christmas gathering.
Let's Get Baking!
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The individual sending this communication offers securities and investment advisory services through Gradient Securities, LLC (Arden Hills, MN 866-991-1539). Member FINRA/SIPC. Gradient Securities, LLC (a SEC Registered Investment Advisor) offers investment advisory services under the d.b.a. of Gradient Wealth Management. Gradient Securities, LLC and its advisors do not render tax, legal, or accounting advice. Insurance products and services are offered through Tennyson Insurance Solutions. Tennyson Wealth Management and Tennyson Insurance Solutions are not affiliated with Gradient Securities, LLC. Gradient Securities, LLC, Tennyson Wealth Management and Tennyson Insurance Solutions are not affiliated with or endorsed by the Social Security Administration or any government agency. This Email is being sent by or on behalf of a dually Registered Representative and Investment Advisor Representative. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy, or disseminate this Email or any part of it. If you have received this Email in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. The presence of this email shall in no way be construed or interpreted as a solicitation to sell any products or services to any residents of any state other than where legally permitted. Please be advised that you may conduct securities transactions only by speaking directly with your Registered Representative and/or Investment Advisor Representative. To help protect your privacy, we strongly recommend that you avoid sending sensitive information, such as account numbers and social security numbers, via email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT Act, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review.
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