REMINDER:

Our Office Number is  (847) 954 - 7028

Our Private Client Email line is Client@harborw.com (more on that below)

Dear Clients,

2025 - what an up and down year! At one point we were down nearly 20% and ended the year +17%. Needless to say, markets don’t ask our permission before they test our patience. And they don’t send invitations before they change the subject.

What they do offer—reliably, over time—is the opportunity to convert discipline into wealth. That remains true today. Still, it’s fair to want context, especially with how much you’re hearing about AI, “bubbles,” recession risks, and an economy that seems to be working well for some people and not for others.

Here’s how we see it.

1) 2025 in Review: A Strong Year—with a Narrow Story

By the numbers, 2025 was a good year for investors. But the experience of the year depended heavily on where you were invested.

A relatively small cluster of companies and sectors drove much of the market’s progress—particularly those connected to AI, data centers, semiconductors, and the infrastructure surrounding them. Meanwhile, many perfectly respectable businesses and entire segments of the market lagged, and plenty of individual stocks finished the year down.

That kind of uneven participation can feel unsettling. It shouldn’t be surprising.

Markets have always moved this way: leadership concentrates, narratives form, and the “average” investor experience differs from the headline number. It’s one of the reasons we build portfolios as portfolios—with diversification, rebalancing discipline, and a plan that isn’t dependent on a single storyline. This won't change.

2) 2026 So Far: The K-Shaped Economy and the AI Investment Cycle

As we move into 2026, two realities are becoming harder to ignore.

First: the K-shaped economy.
Some businesses are doing quite well. Others are feeling the cumulative effects of several years of higher prices and higher borrowing costs. That divergence shows up in spending patterns, company earnings, and sector performance—and it’s one reason the market can look strong on the surface while many people feel the strain underneath.

Second: the AI investment cycle remains the engine.
There is real money being spent—at scale—on chips, data centers, cloud capacity, and the power that makes all of it possible. That’s not a “story stock” phenomenon; it’s capital expenditure by some of the largest companies in the world.

At the same time, what investors are wrestling with now is not whether AI exists, but whether expectations have run ahead of reality.

Two watchpoints matter most:

Power and buildout constraints: even the best data center plans require electricity, permitting, and time.

Returns on scaling: the market is sensitive to the idea that bigger models may eventually yield smaller incremental benefits—meaning the pace of investment could slow.

None of this is a prediction. It’s simply the current landscape: strong momentum, real spending, and a market that is increasingly alert to what could change the slope of the trend.

3) Staying the Course: The Only Strategy That Works (Because It’s the Only One You Can Actually Execute)

This is the part that never changes—and never gets easier.

The investor’s greatest enemy is not inflation, recession, politics, or technology. It is the temptation to do something dramatic in response to uncertainty.

Because the truth about successful investing is almost offensively simple:

Wealth is built by time in the market, not cleverness about the next 90 days.

Great long-term returns require enduring uncomfortable short-term moments.

Headlines create urgency; disciplined plans create results.

Our job at Harbor Wealth is not to predict the next correction or chase the next theme. Our job is to keep your plan aligned with your goals, manage risks you can control, and help you stay invested long enough for markets to do what they have always done: reward patient ownership.

Communication Update

One of the promises we make—and take seriously—is simple: when you need us, you can reach us. Good advice only matters if it’s accessible, timely, and delivered by people who know you and your situation.

That expectation hasn’t changed.

What has changed is the pace of the work. Elliott sometimes has days or weeks that he is in back-to-back meetings—planning, reviewing, and coordinating on behalf of clients. That’s time well spent, but it does mean that a message sent only to Elliott may not be seen immediately if he’s in meetings throughout the day.

Rather than rely on luck or timing, we’ve designed a system that works consistently.

For any client-related request, the most effective way to reach us is by emailing:
client@harborw.com

That inbox goes directly to Elliott, Ben, and Ellen. It’s monitored throughout the day. Requests are reviewed, discussed, and acted on promptly—often the same day, and frequently within the hour. This allows us to coordinate internally and make sure your request gets attention even when Elliott is tied up in meetings.

Our standard is straightforward: your questions and requests deserve timely follow-through, every time.

To further support that standard, we expect to be adding another team member in the coming weeks, focused on behind-the-scenes administrative and coordination work. This is a deliberate step to improve responsiveness, reduce bottlenecks, and ensure nothing slips through the cracks—while preserving the personal relationship you have with us.

Good service doesn’t happen by accident. It’s the result of clear processes, the right people, and an intentional commitment to doing things right.

As always, we’re here—and when something matters, you’re never more than one phone call away.

2025 Tax Preparation! Fortune Favors the Prepared

Taxes are never anyone’s favorite topic - ok perhaps it is Elliott's favorite topic. Ellen Jokes that if given the opportunity, Elliott would name their son Roth.

But handled calmly and methodically, they’re simply another part of the long-term discipline that supports good financial outcomes.

A few reminders to help things go smoothly:

Over the next several weeks, you’ll begin receiving important tax documents, including 1099s, 1099-Rs, and other reporting forms. These forms are required to be sent out by specific deadlines:

January 31 – 1099-R, 1099-INT, and 1099-DIV must be issued

February 15 – 1099-B must be issued

If at any point you believe you’re missing a form—or you simply want confirmation—please don’t hesitate to reach out. A quick call or email to our office is all it takes, and we’ll get what you need to you as quickly as possible.

As we’ve done in the past, we will also be working to send these tax forms directly to your tax preparer whenever appropriate, to reduce the burden on you.

As Your Return Is Prepared

Once your tax preparer has a draft of your return, we ask that you send us a copy for review. This allows us to make sure everything that should be included is included—and that nothing important is overlooked.

After your return is finalized and filed, please send us a final copy for our records.

You can do this in whatever way is easiest for you:

Upload it securely through our website

Email it to our office

Or, if you prefer paper, let us know—we’ll gladly send you a FedEx envelope with a return label included

Our goal is not to add steps, but to remove friction.

Good financial planning isn’t about reacting at the last minute. It’s about quiet preparation, done consistently, year after year.

If you have questions, need a form, or want help coordinating with your CPA, we’re here. Our role is to make this process easier—so you can focus on the parts of life that matter far more than a filing deadline.

Graham has been eagerly waiting for the start of 2026! We are glad it's here.

Events coming up:

1. Townhall on Feb 3rd at 5:30 CT
2. Spring Reviews start in March!

When the People You Care About Ask for Help

From time to time, clients ask us a simple question: What happens if a friend or family member calls you?

The answer is straightforward. We help.

Sometimes that help is as simple as pointing someone in the right direction or making sure they have access to the resources they need. Other times, they may want to explore whether a long-term advisory relationship makes sense. If so, we invite them into the same thoughtful, deliberate process we use with every prospective client—one designed to help them make a clear, informed decision, free from pressure. Just as importantly, this process gives them a framework for evaluating any advisor they might consider. Good decisions deserve good process.

Step 1: A Brief Initial Conversation
We begin with a short phone conversation, typically about fifteen minutes. This is simply a chance for both sides to confirm there’s a fit. Experience matters, and specialization matters. You wouldn’t consult the wrong professional for an important problem, and neither would we. During this call, we also explain how our process works so expectations are clear from the start.

Step 2: The First In-Depth Meeting
If it makes sense to continue, the first meeting is about listening. We focus on understanding what matters most to them—their goals, their concerns, and the realities of their financial life. The documents they share and the questions they answer allow us to do meaningful analysis, not guesswork.

Step 3: Careful Analysis
This is where experience does its quiet work. We apply decades of disciplined thinking to answer the questions that truly matter: Can they retire comfortably? Are they paying more in taxes than necessary? Is their portfolio doing the job it’s meant to do? Are there risks—obvious or hidden—that could threaten their long-term plans?

Step 4: Clear, Plain-English Recommendations
In the next meeting, we walk through what we’ve found. We explain what could be improved, why it matters, and what specific steps could move them closer to their goals. Questions are encouraged. Clarity is the objective.

Step 5: An Educated Decision
There is no urgency and no pressure. The goal is simply to make a clear, informed choice. Whether they move forward on their own, with another advisor, or with our team, the decision is theirs—and it’s exactly how we believe important decisions should be made.



Helping people make sound financial decisions—especially the people you care about—is work we take seriously. It’s not about urgency. It’s about clarity, confidence, and keeping the long view firmly in focus