Wealth and Wisdom: Week of May 25, 2026
- May 25
- 4 min read
It’s become a recurring theme lately: How can the markets be doing so well when the world seems to grow crazier every day? And the answer continues to be – earnings. Markets are made up of companies. Companies are in the business of generating profits for their shareholders. And the extent to which they succeed is ultimately reflected in their share prices. The more money a company (and collectively, the market) earns, the more valuable it becomes. It’s as simple as that.
Recent evidence of corporate success is undeniable. First-quarter 2026 earnings for S&P 500 companies are more than 20% higher than the same period last year, very much in line with the investment returns of the index itself.
That’s not to say there’s always a straight-line connection between earnings and stock prices, far from it. Prices tend to be much more volatile than earnings, because investors themselves tend to be more fickle – and given to occasional bouts of excessive optimism and pessimism – than the companies they own in their portfolios. And finally, let’s remember that like so much in life, above-average earnings growth and investor enthusiasm don’t last forever.
I was delighted to see so many Wealth and Wisdom subscribers tuned in for last week’s webinar on our new True Wealth Index. You’ll be hearing a lot more in the months ahead about this innovative tool we created. And we’ll soon be posting a recording of the full webinar on our education website, HelpMeRetirePod.com in the coming weeks.
The IRS is considering artificial intelligence technology to help it decide which taxpayers deserve more scrutiny. (Reading time: 5 minutes)
If this new legislation passes, you’ll be able to contribute to charities directly from your 401(k) – and to donor-advised funds from your IRA. (Reading time: 4 minutes)
It can help a good cause while saving taxes on your estate – just understand all the implications before you decide. (Reading time: 5 minutes)
Two weeks ago in Wealth and Wisdom we talked about the state America’s debt obsession. This article explains where we might be heading. (Reading time: 7 minutes)
Things look great right now – but what if the markets turn south right after you retire? (Reading time: 5 minutes)
No one plans to fail financially, but too many people fail to plan in the final years before they retire. (Reading time: 6 minutes)
Add to the asset side of your balance sheet, reduce the liability side – or maybe a little of each when you have extra cash on hand. (Reading time: 4 minutes)
Depending on your overall financial situation, it can make sense to reduce or eliminate some of your insurance coverage as you approach retirement. (Reading time: 5 minutes)
Yes, it is possible to take some nice trips when you retire without jeopardizing your plan. Here’s how to go about it. (Reading time: 8 minutes)
You don’t have to buy a winery like those snooty commercials suggest – but there’s a certain appeal to being the boss after you retire. (Reading time: 4 minutes)
Words to the Wise
“Think what you do when you run in debt. You give another power over your liberty.”
– Benjamin Franklin
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