PTM Wealth Management Annual Report: Reviewing 2025 and Introducing the Opportunities of 2026

By Paul T. Murray, AIF®, ChFC® - President of PTM Wealth Management

Happy New Year! On behalf of all of us at PTM Wealth Management, I wish you a healthy and prosperous 2026.

Last year in the financial markets was one of the most unusual that I have experienced in my 25 years in the practice of financial planning. A new president brought new ideas aimed at dramatically changing the global status quo, and change was everywhere: in market dynamics, trade policy, and interest-rate policy, to name a few.

What matters most, of course, is how these changes affect your financial plan — and how we position your portfolio to remain resilient in the face of uncertainty.

A Look Back at an Unusual Year

The impact of new tariff policy appears to be revealing itself in hiring practices, costs of goods, and business decision-making. But the most significant area of impact was on the value of the U.S. dollar. The dollar experienced its worst first-half performance since 1973 and, as a result, international stocks outperformed their U.S. counterparts for the first time in 15 years (as reported by the MSCI All Country World ex-USA Index). I’ll spare you the debate on a strong versus weak dollar for now, but few anticipated the magnitude of this change. “Unpredictable” became one of the most overused words in 2025 when discussing the effects of new government policies on the financial markets.

The country also received new tax policy in 2025. The One Big Beautiful Bill Act primarily extended prevailing tax rates and made a few marginal changes to certain deductions, but the projected impact on the national debt became more pronounced. Significant partisan disagreement followed passage of the bill, resulting in a government shutdown, and the potential fallout from expiring Affordable Care Act subsidies is likely to shape the upcoming mid-term elections. Health-care costs have become one of the biggest concerns for millions of Americans.

In the fall of 2025, the Federal Reserve took action to support the slowing economy by lowering interest rates. “Affordability” had become a central concern, as the overall cost of living became unwieldy for many Americans. Home and auto loans grew increasingly expensive, and the prices of homes and cars reached new records (the average cost of a new car hit an all-time high of $50,080 last fall). Despite interest-rate cuts, the employment picture weakened in the second half of the year, triggering concerns about the sustainability of economic growth. American manufacturing showed clear signs of recessionary pressure.

How The Market Reacted

Despite all of this, the U.S. stock market posted its third consecutive annual gain, with the S&P 500 reporting a 17.9% total returns (price appreciation plus dividends) driven largely by strong performance from big technology companies knows as the “Magnificent Seven.”

Statistically speaking, the seven largest U.S. technology companies contributed a disproportionate share of the S&P 500’s total return in 2025: the Magnificent Seven saw gains of approximately 26% vs. just 10.8% returns for the remaining 493 companies. As the year progressed, however, returns moderated and investors focused more on profitability than promise, particularly regarding artificial-intelligence investments.

2026 Portfolio Updates: Risk Management & Opportunity

As we look ahead to 2026, we see a tug-of-war between risk and reward. Historically, when the market has experienced three consecutive positive years, there is roughly a 50-50 chance of continued growth or a pullback. From our perspective, diversification remains essential. We believe our clients are best served by participating in growth while protecting against market declines through a combination of principal-protected investments that may also provide guaranteed lifetime income in retirement, low-cost exchange-traded funds (ETFs) that offer exposure to equity and bond markets, and money-market funds for liquidity needs.

To address the evolving economic environment we envision for 2026, we have implemented several measured changes to our risk-managed asset-allocation models. At a high level, those changes include:

· A modest reduction in technology concentration

· The addition of targeted thematic equity exposure

· Enhancements to portfolio income in fixed income

We are slightly reducing our position in our technology fund and rebalancing other equity ETFs to accommodate the introduction of two thematic ETFs created by First Trust Advisors. First Trust is one of the largest fund managers and specializes in creating funds that provide access to sectors and themes that can be difficult to capture through individual stock selection.

The first of these is the First Trust NASDAQ Cybersecurity ETF (symbol: CIBR). We have written extensively about the growing need for vigilance against cyber threats, and organizations continue to devote increasing resources to protecting themselves. We believe a modest allocation to this fund may provide clients with access to potential long-term growth in this area. As expected, most companies in this fund operate within the technology sector.

The second addition is a small allocation to the First Trust RBA American Industrial Renaissance® ETF (symbol: AIRR). This fund focuses on smaller- and mid-sized companies operating in infrastructure, manufacturing, transportation, and banking — sectors that stand to benefit from domestic investment, modernization, and competitiveness. The companies held in this fund derive the majority of their revenues from the United States and exhibit positive forward earnings expectations. We believe aging infrastructure,

combined with continued investment in automation, robotics, and AI-driven efficiency, supports this theme over time.

When considering the fixed-income (bond) allocation, we believe interest rates are likely to trend lower. As a result, we expect yields on our current allocation to the State Street SPDR SSGA Ultra Short-Term Bond ETF (symbol: ULST) to decline in 2026. To complement this position, we are adding the John Hancock Preferred Income ETF (symbol: JHPI), which currently yields approximately 5.74%. In a stable or declining interest-rate environment, this fund may provide higher income than money-market funds, Treasuries, or traditional corporate bonds. Preferred stock represents a form of corporate borrowing, and its higher yield reflects the fact that preferred shareholders rank below bondholders in the event of liquidation. Utilities and financial companies comprise the largest portion of this fund’s holdings. Preferred stocks should not be confused with common stocks, which are what we typically reference when discussing stock-market performance.

Overall, we remain optimistic about market prospects and the potential for continued growth in account values in 2026. At the same time, we will always keep our defensive team on the field to help protect account values during market corrections. For clients nearing or already in retirement, I cannot overstate the importance of owning investments that provide principal protection and/or guaranteed lifetime income. We believe in building strong retirement “base salaries” — from Social Security, pensions, and annuities — that cover the majority of retirement expenses and reduce the risk that market volatility could derail long-term plans.

New Client-Focused Platforms For a New Year

This year, we will also roll out two new platforms designed to enhance our planning capabilities, particularly around estate planning and future health-care considerations.

The first is Estate Guru, a semi-self-directed platform for creating wills, trusts, and powers of attorney, all of which are reviewed by an attorney. While it is not intended for highly complex estate plans, it can be a practical alternative to higher-cost options that often rely on standardized templates. Both Tyler and I have personally used this tool for our own estate documents, and we look forward to offering it to clients who may find it useful. Pricing is $249 for an individual will, $498 for a couple, and $699 for trusts. We do not receive compensation from this service.

The second platform is Waterlily, a powerful planning tool that helps quantify the potential need for long-term care and its financial implications. Waterlily analyzes extensive demographic data to estimate the likelihood, duration, and potential cost of future care scenarios. While many people may never require long-term care, we believe that responsible fiduciary planning includes understanding the possible impact on retirement security and legacy goals if the need arises. Funding strategies for long-term care are a separate conversation, but this platform helps inform better planning decisions.

Firm News & Gratitude

You may have noticed that Kevin Becknell joined the firm in 2025 as our Chief Compliance and Information Officer, and we begin 2026 with several well-earned promotions. Tyler Breder, CFP®, is now Vice President; Amy Breder is our Director of Operations; and Ryan Murray is our Director of Financial Planning Operations.

PTM Wealth Management enjoyed its most successful year ever, welcoming 20 new households into our family of clients. Much of this success can be attributed to referrals from clients like you, who understand that our services extend well beyond traditional investment management. Planning — and the depth and sophistication it brings — remains our key differentiator. Your success is our success, and your trust and friendship are our greatest rewards.

Thank you for sharing your stories about your children, grandchildren, travels, hobbies, and the ups and downs of life. I’ve said it before and will continue to say it: I grow personally and professionally by learning from our clients. I cannot imagine a better vocation, and I know I speak for Tyler, Amy, Meghan, Ryan, Kevin, and Michelle when I say our lives are richer for knowing and working with you. I look forward to seeing you soon in 2026.