2026 Planning Outlook
While every year presents new opportunities and challenges, 2026 presents a host of changes that have significant implications for planning. Tim Steffen, Director of Advanced Planning, and Heather Osborn, Director of Wealth Planning, return for part two of Baird’s 2026 Outlook series to share the most notable changes as well as the annual steps to take to make the most of the year ahead.
For insights regarding the market and policy outlook for 2026, see part one of our 2026 Outlook series.
Tax & Estate Planning in 2026
Roughly a year ago, lawmakers were faced with addressing a set of expiring tax laws that would have had significant implications for taxpayers. The passing of the “One Big Beautiful Bill” Act (OBBBA) in July 2025 addressed these expirations and presented new opportunities for multi-year tax planning, notably in charitable giving, retirement contributions, and a new savings account for minors.
- Charitable Contributions: The OBBBA introduced new rules that limit the overall tax benefit of itemized deductions for high income taxpayers, as well as additional constraints that affect the deductibility of charitable contributions for all individuals. As a result, charitable giving strategies are more complex than ever. Fortunately, your Baird Financial Advisor team has access to cutting-edge tools and specialists to develop a thoughtful, multi-year tax and giving strategy to support your overall goals.
- Retirement Savings: In addition to the regular annual increases to retirement contribution limits , there are new stipulations that may impact your savings strategy. Higher income workers who are age 50 and older may now be required to make catch-up contributions to a Roth style account. While investing in a Roth can be a valuable retirement strategy, it eliminates the immediate tax benefit for the contributions, making it a bit more expensive to save those amounts.
- New Savings Account for Minors: The bill also introduced a new form of tax-deferred savings for minors, available later this summer. Contributions to these accounts can be made on behalf of anyone until age 18, including a $1,000 government contribution for newborns. Your Baird Financial Advisor team will be able to provide more details on these soon, and they may be another valuable tool as you consider transferring assets to children and grandchildren this year.
Last summer’s tax bill also increased the estate tax exemption, allowing up to $15 million per person in 2026. This higher exemption means that most families will not have to consider estate planning strategies, although estate planning in general remains an important component of a comprehensive wealth plan. Revising your estate plan annually provides an opportunity to ensure beneficiaries and those appointed as executor, trustee or power of attorney are still appropriate.
Managing Your Finances in 2026
The financial markets generally performed positively last year, and our colleagues at Strategas are optimistic about the economy and consumer spending heading into 2026. With such strong tailwinds, it’s easy to overlook some of the best practices when it comes to personal finance.
A healthy balance sheet is often the first step – finding the right combination of growth and liquidity within your portfolio. With interest rates falling, it may be tempting to take on more debt, potentially losing sight of paying off any current loans. And despite inflation cooling from its recent highs, the cost of many items remains elevated, continuing to put a strain on budgets. Your Baird Financial Advisor team can help mitigate these risks by revisiting your asset allocation strategy, and reexamining your overall wealth plan to help you achieve both short- and long-term goals.
Healthcare is of increasing focus in planning, with healthcare costs projected to rise significantly in 2026 alongside an increasing average life expectancy. Whether you’re retired and evaluating your Medicare options, or you’re younger and wanting to ensure you’re prepared for what life may bring in the future, your Baird Financial Advisor team can assist with the decisions that are integral to your overall wealth plan.
Lastly, there are many routine – but very important – steps to take with regards to your finances. This includes:
- Reviewing your insurance portfolio (life, health and disability coverage, but also home, auto and personal liability insurance).
- Ensuring you’re maximizing your retirement strategy, matching this year’s higher contribution limits.
- Considering your plan for Social Security, if retirement is fast approaching.
- Protecting you and your family’s privacy, which may include enrolling in ID Watchdog, Baird’s partner for identity protection.
Whatever is in store for you and your family in 2026, your Baird Financial Advisor team, backed by wealth planning and investment strategy experts, is here to help you plan for the best possible future this year and beyond.
This information has been developed by a member of Baird Wealth Solutions Group, a team of wealth management specialists who provide support to Baird Financial Advisor teams. The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.
