In this episode of Retire with Style, Alex and Wade break down the key tax changes coming in 2026, including the return of standard ACA subsidies, the extension of current tax rates, and updates to standard deductions. They cover inflation-related adjustments, itemized deductions, charitable giving rules, estate tax exemptions, and what the alternative minimum tax means for retirees. The conversation also explores the new Trump accounts launching in July 2026 and wraps up with a lighthearted discussion on New Year’s resolutions. Listen now to learn more!

Takeaways

• The ACA subsidies are reverting to pre-2021 levels in 2026.
• Tax rates remain unchanged from previous years, providing stability.
• Standard deductions continue to be higher, affecting itemization rates.
• Inflation adjustments will impact the thresholds for tax brackets.
• Charitable contributions now have a deduction floor based on AGI.
• Estate tax exemptions are increasing significantly for 2026.
• The alternative minimum tax may affect more high-income earners.
• 529 plans have expanded eligible expenses for education.
• Trump accounts will allow contributions for minors starting in July 2026.
• New Year's resolutions can be a time for reflection and planning.

Chapters

00:00 Welcome to 2026: New Beginnings 02:13 Affordable Care Act Changes 07:25 Tax Rates and Standard Deductions 09:16 Inflation Adjustments and Tax Planning 11:34 Itemized Deductions and Charitable Contributions 20:32 Estate Tax Exemptions and Business Income 24:44 Alternative Minimum Tax and 529 Plans 28:19 Trump Accounts and Future Planning 29:42 New Year Reflections and Resolutions

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

As we close out 2025 and head into the New Year, we’re sharing one final Best of episode before returning with new conversations in January. This week’s replay is Alex’s top pick from the year, a conversation that stood out for its relevance, insight, and the questions it generated from listeners.

We’ll be back soon with brand new episodes in 2026. Until then, Happy New Year, and thank you for being part of the Retire With Style community!

Repost from Episode 174

In this episode of Retire with Style, Wade Pfau and Alex Murguia sit down with Dr. Daniel Crosby, a leading voice in behavioral finance, to unpack the psychological side of investing in today’s volatile markets. Together, they examine how market swings and media noise shape investor behavior—and why having a thoughtful media diet and disciplined decision-making framework is more important than ever. This conversation lays the foundation for next week’s episode, where the discussion will shift toward deeper questions of wealth and meaning. Listen now to learn more!

Takeaways

• Market volatility can trigger anxiety—even among professionals.
• It’s normal to feel fear during downturns, but those emotions don’t have to drive your decisions.
• Limiting exposure to financial news may help you stay focused and make better choices.
• Recognizing the incentives behind financial media can help you consume it more critically.
• More information isn’t always better—clarity often comes from less, not more.
• Patience matters. Reminding yourself that “this too shall pass” can be grounding.
• Uncertainty often causes more stress than bad news itself.
• Taking time to reflect before acting can lead to better financial outcomes.
• We tend to give others better advice than we give ourselves—pause and consider what you’d tell a friend.
• Automation and structured plans are powerful tools to reduce emotional decision-making.

Chapters

00:00 Introduction to Behavioral Finance and Market Volatility 02:56 Understanding Market Reactions and Investor Psychology 06:01 The Impact of Media on Financial Decision Making 08:47 Navigating Uncertainty in Financial Markets 12:05 The Importance of Patience and Discipline in Investing 15:03 Frameworks for Better Financial Decision Making 17:55 Conclusion and Transition to The Soul of Wealth

Links

Click here to watch this episode on YouTube: https://youtu.be/6pMFE_-u0YM

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”

As the year comes to a close, we’re taking a moment to revisit a few of our favorite Retire With Style episodes from 2025. This week, we’re replaying one episode that stood out in particular as Wade’s favorite conversation of the year, based on both the discussion and the questions it sparked from listeners.

We’ll be back with brand new episodes after the holiday break. Thanks for listening this year, and we look forward to continuing the conversation in 2026.

Repost from Episode 195

In this episode of Retire with Style, Wade Pfau and Alex Murguia talk with William Bengen, pioneer of the 4% rule in retirement planning. They explore the rule’s evolution, how inflation and market valuations shape sustainable withdrawals, and Bengen’s current recommendations. The discussion highlights the role of asset allocation, the importance of withdrawal strategies, and why ongoing monitoring is essential for a secure retirement.

Takeaways

• William Bengen modernized retirement income planning with the 4% rule.
• Inflation is a critical factor in determining sustainable withdrawal rates.
• Market volatility can significantly impact retirement portfolios.
• A comprehensive withdrawal plan should consider multiple factors.
• Current recommendations suggest a withdrawal rate of around 5.5%.
• Asset allocation plays a vital role in retirement planning.
• Investors should consider a rising equity glide path strategy.
• Regular monitoring and adjustments to retirement plans are essential.
• High inflation can permanently elevate withdrawal amounts.
• The 4% rule is not a one-size-fits-all solution.

Chapters

00:00 Introduction to Retirement Income Planning

01:14 The Birth of the 4% Rule

03:03 Understanding Withdrawal Rates

09:15 The Impact of Inflation on Withdrawals

12:45 Market Valuation and Its Effects

18:07 Current Withdrawal Rate Recommendations

21:10 Asset Allocation Strategies

24:04 Free Lunches in Investment Strategies

27:34 Key Takeaways from A Richer Retirement

31:15 Future Research Directions

Links

Get Bill Bengen’s New Book – A Richer Retirement Want to dive deeper into the research behind the 4% rule and how retirement income planning has evolved? Bill Bengen’s new book, A Richer Retirement, is now available—visit bengenfs.com to learn more and get your copy.

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”