Eclectic Associates

After markets hit their March lows, a steady recovery followed. The S&P 500 finished the quarter up 10% for the year, while U.S. small-cap stocks rose 23% and emerging markets gained 24%. Investors who stayed the course through the uncertainty were rewarded for it.

Heading into the second half of 2026, a few things are worth watching: where inflation lands as energy and shelter costs ease, how the Fed responds, and whether the market's concentration in a handful of large technology companies continues to shift toward broader sectors.

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2026 Second Quarter Letter — Eclectic Associates, Inc. A recap of markets in the first half of 2026, covering stock and bond performance, inflation trends, AI spending, and why diversification still matters.

If you've seen "Moneyball" or read the book, you know the story: a small-budget baseball team started winning by ignoring the conventional wisdom everyone else followed. Billy Beane's insight wasn't a secret. It was just a willingness to look at different data and tune out the noise.

There's a parallel for investors. The financial news cycle, expert forecasts, and daily market updates can feel like useful information, but studies consistently show they have little to do with long-term outcomes. What tends to matter is more practical: how a portfolio is allocated, what fees are being paid, and whether you can stay disciplined over time.

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Invest Like Billy Beane: Pay Attention to the Right Things — Eclectic Associates, Inc. What Billy Beane's Moneyball strategy can teach investors about ignoring market noise and focusing on allocation, fees, taxes, and discipline.

One of the most valuable tax benefits available to investors is one many people have never heard of.

The step-up in basis allows appreciated assets to pass to heirs with a new cost basis at the time of death, which can eliminate decades of unrealized capital gains taxes under current law.

For families with investments, real estate, or business interests that have grown significantly over time, this is worth understanding. We walk through how it works and when it matters most.

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Step-Up in Basis: The Tax Case for Holding Appreciated Assets Until Death — Eclectic Associates, Inc. We explain how the step-up in basis can reduce or eliminate capital gains taxes on inherited stocks, real estate, and business interests.

AI can now mimic voices convincingly enough to make a phone scam sound like a call from someone you love. It's a troubling development, and it's worth knowing how to protect yourself and the people around you.

We share four practical strategies for verifying whether a call is really from who it claims to be, including one simple step you can take with your family today.

AI Voice Scams: How to Verify It’s Actually Family or Friends Calling — Eclectic Associates, Inc. Scammers now use AI to mimic the voices of family and friends. Learn simple ways to verify whether a call is really from someone you know.

We had a wonderful evening hosting Apollo Lupescu, PhD, senior economist at Dimensional Fund Advisors, for a client reception.

The conversation touched on AI valuations, geopolitical risk, the semiconductor supply chain, and what market history tells us about staying invested through uncertain times.

Lupescu's message was grounding and, honestly, reassuring: The world is always changing, but the fundamental premise of investing doesn't.

We share the key insights from the evening here:

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Stay the Course: Insights from the DFA Client Reception — Eclectic Associates, Inc. DFA economist Apollo Lupescu joined Eclectic Associates to discuss AI, market valuations and why staying invested through uncertainty can help drive long-term success.

Tax season just wrapped up, which actually makes right now one of the better times to think about next year.

Your return can be full of useful information: how dividends are being taxed, whether charitable distributions were reported correctly, whether losses can offset future gains, and how your AGI is affecting Social Security and Medicare costs.

We share what we look for on a Form 1040 review and the planning questions it helps answer.

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Don’t File It and Forget It: Tax Planning Starts Now — Eclectic Associates, Inc. Tax planning starts with your Form 1040. We break down what to look for on last year's return to help find savings opportunities and avoid mistakes.

Company stock in a 401(k) doesn't always need to go into an IRA, and sometimes it shouldn't.

A strategy called net unrealized appreciation (NUA) lets you distribute the stock to a taxable account, pay ordinary income tax only on the original cost basis, and then pay long-term capital gains rates on the appreciation when you sell. For highly appreciated stock, the potential savings can be meaningful.

We share a breakdown with two examples here.

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Net Unrealized Appreciation: When Company Stock in a 401(k) gets Special Tax Treatment — Eclectic Associates, Inc. If you own company stock in your 401(k), the net unrealized appreciation (NUA) strategy may reduce your tax bill. Here's how it works.

If you have a living trust, you may have been told to name it as the beneficiary of your retirement accounts. The reasoning sounds logical: The trust already has instructions for who gets what, so why not run everything through it?

In practice, it's not always the right move. We've put together a clear breakdown of how to think through this decision, including what usually makes sense for different family situations and what questions are worth asking before you finalize any designation.

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Think Twice Before Naming Your Trust as Beneficiary — Eclectic Associates, Inc. We updated our guide on naming your trust as a retirement account beneficiary. Learn when it helps and when a simpler approach may serve you better.

How long should you keep that old bank statement? What about W-2s from five years ago?

These questions matter more than many people expect. Getting rid of the wrong document at the wrong time can mean a complicated capital gains situation, an audit without backup records, or an estate that takes longer to settle than it should.

We updated our guide on financial record-keeping, covering what to keep permanently, what to hold for a few years, and what can safely go. Worth a few minutes if you've been meaning to get organized.

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Keep It or Toss It? How long should you keep financial records and important documents? — Eclectic Associates, Inc. How long should you keep financial records and important documents? This article, updated for 2026, provides timelines for saving records, including what to keep forever.

Estate planning is one of those things most families know they should address and keep putting off.

But without a clear plan, even well-intentioned families can end up in conflict over inheritance, caregiving, and major decisions at the hardest possible moments.

Last month, our Vice President Carl Lachman, CFP®, sat down with estate planning attorney Dan York, J.D., to answer the questions families most commonly have about multi-generational estate planning: where to start, what to include, how to protect assets, and how to communicate your wishes to the people you love.

The takeaway: The best time to have these conversations is before you need to. This article is a helpful place to begin.

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Multi-Generational Estate Planning Insights — Eclectic Associates, Inc. Learn how multi-generational estate planning helps protect your family's legacy, reduce conflict, and ensure your wishes are honored across generations.