Synergy Wealth Insights | May 2026

No major changes were needed since the March issue. The positioning and rebalancing work we completed earlier this year held up well through the volatility and participated in the recovery that followed. Staying the course from the last newsletter was the right call.

Portfolios remain diversified across asset classes and continue to reflect your individual goals and risk tolerance. I am monitoring conditions closely and will make adjustments where opportunity or risk profile calls for it.

If you have specific questions about your account, I am always happy to walk through what we hold and why. Reach out anytime.

One of the most well-documented facts in investing is that markets tend to recover faster than investors expect. The S&P 500 dropped roughly 4% year to date by early March. It then gained more than 10% in April alone. For investors who stayed the course, the discomfort lasted weeks. The reward has more than erased it.

This pattern is consistent with history. After the 2020 pandemic crash, markets recovered in months. After the 2022 rate-driven selloff, they bounced back over the following 18 months. The investors who locked in their losses by selling near the bottom missed recoveries that often cluster in just a handful of the market's best trading days.

Missing even a small number of those days can dramatically reduce long-term returns. Those best days tend to occur close to the worst ones, which means sitting on the sidelines during uncertainty is precisely when the cost of inaction is highest.

If you stayed invested, you were there for all of it.

Healthcare is the expense that surprises people most in retirement. The reality is that planning for healthcare costs is one of the most impactful things you can do for your financial plan, and the strategy looks very different depending on which side of 65 you are on. This is an area I work through carefully with clients who are navigating this period, and if it applies to you, it is worth a conversation.

Before Medicare eligibility, healthcare is entirely on you to manage, and the costs can be significant. If you leave an employer before 65, whether through early retirement, a job change, or layoff, you will need to find coverage on your own. Your main options are COBRA continuation coverage, the Health Insurance Marketplace, or a spouse's plan if available. Marketplace premiums can vary widely based on your income and the plan you choose, and they are not cheap.

One thing many people do not realize is how important income planning becomes during this window. The amount you pay for an ACA Marketplace plan is directly tied to your modified adjusted gross income. That means the decisions you make about Roth conversions, retirement account withdrawals, and other income sources can have a real impact on your monthly premium. Done right, thoughtful income planning in the years before Medicare can result in meaningful savings.

This is where a Health Savings Account becomes one of the most powerful tools in your financial plan. If you are enrolled in a high-deductible health plan, you can contribute up to $4,400 for self-only coverage or $8,750 for family coverage in 2026. Contributions reduce your taxable income today, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free. That triple tax advantage exists nowhere else in the tax code.

Medicare eligibility begins at 65, but enrolling in Medicare does not mean your healthcare costs disappear. It means they change shape.

Original Medicare (Parts A and B) covers hospital stays and outpatient care, but it comes with deductibles, copays, and no cap on out-of-pocket costs. Most people add either a Medicare Supplement plan (Medigap) to fill those gaps or enroll in Medicare Advantage (Part C), which bundles coverage through a private insurer. Part D covers prescription drugs and comes with its own premiums and costs.

Fidelity estimates the average couple will spend more than $300,000 on healthcare costs in retirement, not counting long-term care. That number catches most people off guard, because they assume Medicare covers everything. It does not.

A few things worth keeping in mind:

The earlier you start thinking about healthcare as a line item in your retirement plan, the more options you have. If you have not had this conversation yet, let's put it on the agenda.

My practice has grown significantly over the past year, and the majority of that growth has come from clients like you referring friends and family. That means a lot to me, and I never take it for granted.

If you have someone in your life who could benefit from a second opinion on their financial plan, is approaching a major life transition, or simply does not have someone in their corner, I would be glad to have a conversation with them. No pressure, no obligation.

A warm introduction goes a long way. Feel free to forward this email or have them reach out directly.