INSIDER April 2026
In This Issue
2 Navigating Crosscurrents: Policy Shocks, Recalibration, and Uncertainty in Early 2026
3 A Hidden Opportunity Inside Your 401(k): Company Stock and Tax Efficiency
4 The Quiet Superpower: Understanding the Power of Compounding
5 Ever Wonder What Investment Pundits Are Really Saying
6 The Invisible Line Item: The Economic Value of Unpaid Work
7 Team News
Brandon Cawley, CFAĀ® Director of Investment Management Brandon.Cawley@MWAteam.com
Navigating Crosscurrents: Policy Shocks, Recalibration, and Uncertainty in Early 2026
Financial markets faced a volatile start to 2026, as geopolitical tensions, a leadership transition at the Federal Reserve, and a more complex outlook for artificial intelligence led investors to reassess expectations for economic growth and corporate earnings. Although the S&P 500 finished the first quarter down 4.6%, six of its eleven sectors posted gains, which underscored the continued importance of equity dispersion and the value of diversification for long-term investors.
A Convergence of Key Forces
The Trump administration has continued with heavy handed policy initiatives in 2026. Early optimism tied to the implications of the One Big Beautiful Bill has been tempered by joint military strikes targeting Iranian leadership and infrastructure. The resulting disruption in the Strait of Hormuzāa vital passage for more than a quarter of global crude oil shipmentsāhas driven energy prices sharply higher. While futures markets point to a gradual easing of tensions, the December 2026 oil price expectation has risen 25% year-to-date, creating pressure on both corporate margins and consumers.
This oil shock presents a complex challenge for the Federal Reserve, simultaneously weighing on growth while pushing inflation higher. Jerome Powell has effectively kept policy on hold as officials assess the evolving global backdrop. His expected successor, Kevin Warsh, is set for his congressional confirmation hearing in mid-April and is anticipated to assume the role in May. Warsh has historically supported a more limited role for the Fed in financial markets, while his prior ties to Treasury Secretary Bessent have prompted speculation about closer coordination between the two institutions during his tenure.
Debate around the economic impact of artificial intelligence remains ongoing, with markets continuing to reflect that uncertainty. Firms tied to data center infrastructure have been among the primary beneficiaries in recent years. In contrast, intermediary businessesāparticularly within the software and financial sectorsāare facing increased scrutiny, as investors consider whether AI-driven automation could intensify competition. Private credit and private equity have also come under pressure, given their exposure to software and concerns about valuation discipline following a prolonged period of easy financing.
Portfolio Implications
Our base case anticipates slower growth coupled with above-trend inflation over the medium term. We view current inflationary pressures as largely supply-driven, stemming primarily from disruptions in shipping through the Strait of Hormuz. With these dynamics unfolding against a backdrop of a less robust U.S. labor market, we believe the Federal Reserve is right to refrain from policy tightening at this stage.
In this environment, we are maintaining our current portfolio positioning. The structural growth themes identified at the beginning of the year remain intact, and we expect them to reemerge more clearly as geopolitical tensions ease. At the same time, diversification across portfolios continues to provide resilience and support relative outperformance.
Our focus remains on compounding durable, long-term returns. As always, we will monitor developments closely and adjust positioning as needed to help clients achieve their objectives.
Matthew Aversa, ChFCĀ®, BFAā¢ Managing Partner, Financial Planner Matthew.Aversa@MWAteam.com
A Hidden Opportunity Inside Your 401(k): Company Stock and Tax Efficiency
From time to time, we come across planning opportunities that arenāt widely known, but can have a meaningful impact when applied correctly. One of those involves company stock held inside a 401(k), and itās called Net Unrealized Appreciation, or NUA.
Rather than start with the technical definition, itās easier to understand through a real example.
We recently worked with a client who had spent more than two decades with her company. Over that time, she accumulated a meaningful portion of her retirement savings in company stock within her 401(k). By the time she was preparing for retirement, that stock was worth about $200,000.
Like many people, her initial instinct was to simply roll the entire 401(k) into an IRA. That is the most common approach, and in many cases, it is the right one. But in this situation, it would have created an unnecessary tax burden over time.
Here is why.
When assets are rolled into an IRA, every future withdrawal is taxed as ordinary income. That means the entire $200,000 would eventually be taxed at income tax rates, which can be among the highest rates on your return.
However, company stock inside a retirement plan can be treated differently if handled properly.
Using the NUA strategy, we separated the company stock from the rest of the 401(k) and transferred those shares directly into a taxable brokerage account. This has to be done as part of a full distribution of the 401(k) in a single tax year, and the stock must move āin kind,ā meaning it is not sold inside the plan.
At the time of the transfer, our client only paid income tax on what she originally paid for the stock, known as the cost basis. In her case, that was $50,000.
The remaining $150,000 of growth is what we call the net unrealized appreciation. That portion is not taxed as ordinary income. Instead, when the stock is eventually sold, it is taxed at long-term capital gains rates, which are typically lower.
That distinction matters.
Instead of having the full $200,000 taxed at higher income
tax rates over time, a large portion is now positioned to be taxed more efficiently. It also creates flexibility. She can decide when to sell the shares and manage the timing of those gains as part of her overall plan.
There are a few important caveats. The strategy only works if certain rules are followed, including taking a full distribution of the retirement account in one year. There can also be penalties on the cost basis portion if the distribution happens before age 59Ā½, depending on the situation. And of course, holding individual company stock introduces concentration risk that needs to be managed thoughtfully.
This is not about avoiding taxes. It is about paying them more efficiently and making more intentional decisions with what you have built.
The broader takeaway is simple. Not all dollars inside a 401(k) are created equal. Understanding what you own and how it is taxed can open the door to better planning decisions.
If you have company stock inside your retirement plan, especially after many years with the same employer, it is worth taking a closer look before making any changes. A simple rollover may feel like the easiest path, but it is not always the most efficient one.
As always, the goal is clarity and thoughtful decision-making so your financial plan supports the life you want to live.
SOURCE: https://institutional.fidelity.com/advisors/investment-solutions/fidelity-advisor-ira/fidelity-advisor-rollover-ira/understanding-net-unrealized-appreciation-nua
Cristina Kothari, MBA, CDFAĀ® Associate Director Tina.Kothari@MWAteam.com
What Is Compounding?
Compounding occurs when returns generate additional returns. This means earning interest not only on your initial investment (the principal), but also on the accumulated interest from previous periods. Compounding allows investments to grow at an accelerating rate over time.
The Quiet Superpower: Understanding the Power of Compounding
Compounding is often described as one of the most powerful forces in finance. The famous quote frequently attributed to Albert Einsteinācalling compound interest the āeighth wonder of the worldāāmay be debated by historians, but the idea remains widely accepted: consistent growth over time can lead to extraordinary results.
The Buffett Example
Take Warren Buffett for example: while his investing skill is world-class, his true secret is time
Buffett began investing at age 10. When he turned 65, his net worth was roughly $300 million. While this amount seems incredible, it is less than 1% of what he would eventually possess. More than 99% of his total wealth was accumulated after his 50th birthday, and over 96% came after he qualified for Social Security.
For example, an investment earning 10% annually will grow slowly at first, but over decades, the growth becomes exponential.
Time: The Critical Factor
Time is the most important ingredient in compounding. The longer money remains invested, the more opportunity it has to grow.
Investing early can significantly increase longterm returns, even if you start small. This is because early gains continue to compound over many years.
Math tells us that if Buffett had started investing in his 30s and retired in his 60s as many people do, his net worth would be a tiny fraction of what it is today. His story is not just a lesson in stock picking; it is a testament to the power of staying in the game. You donāt need to be a genius to benefit from compounding, but you do need the discipline to leave your āsnowballā alone and let the hill do the work.
How to Take Advantage of the Power of Compounding in your Portfolio
ā¢ Start investing as early as possible
ā¢ Contribute regularly
ā¢ Reinvest earnings
ā¢ Avoid frequent withdrawals
ā¢ Stay invested for the long term
Conclusion
You donāt need to be an investment guru or have a large sum to invest to take advantage of the quiet superpower known as compounding; you just need to start where you are, stay in the game, and let time do the heavy lifting for you.
Devon Gluck, CFPĀ®, CIMAĀ® Partner, Financial Planner Devon.Gluck@MWAteam.com
Ever Wonder What Investment Pundits Are Really Saying
Ever wonder what investment pundits are really saying? We often see them on TV or read articles quoting gurus with such sage advice via cliches. As with many industries, investing has its own set of idioms, some informative and some meaningless. Below is a list of popular sayings with translations to help you decipher their true meaning.
1. Only when the tide goes out do you discover whoās been swimming naked.
Translation: Anybody looks like a genius in a rising market. The true skill is evident during down markets.
2. Itās different this time.
Translation: Some wild and crazy logic is about to be let loose.
3. Itās time in the market, not Timing the market.
Translation: Staying invested is more fruitful than trying to time buys and sells based on ups and downs.
4. Be fearful when others are greedy. Be greedy when others are fearful.
Translation: Be prepared to invest in a down market and to āget outā in a soaring market.
5. Usually from positions of authority, āWeāre digging deeper.ā
Translation: We donāt know what is going on.
6. Pigs get fat, hogs get slaughtered.
Translation: Donāt let greed get the best of you.
7. Stocks Climb a Wall of Worry.
Translation: Stocks tend to rise when investors are anxious. Stocks top out when people are too optimistic.
8. Buy the Rumor, Sell the News.
Translation: Stocks often rise on chatter spec profit announcement.
9. Economists have predicted seven of the last three recessions. Translation: Doom sells. Economists are a gloomy lot. Donāt get too worried about the numerous commentators claiming the world is ending - it probably isnāt.
10. āAll the weak hands are getting shaken outā or āMy thesis is still intactā.
Translation: Iāve lost a lot of money on this, but Iām still right.
11. Markets can remain irrational longer than you can remain solvent.
Translation: Just because an asset appears mis-priced, this doesnāt mean it is likely to quickly move back to an intrinsic valuation.
12. The stock market is a device for transferring money from the impatient to the patient.
Translation: A reminder that stock returns are best realized over the long-term.
Some of these are thought provoking while others are comical. Weāll let you choose which is which.
Jennifer Schepers Implementation Specialist Jennifer.Schepers@MWAteam.com
The Invisible Line Item: The Economic Value of Unpaid Work
medical care is no longer available, professional care management services may be needed.
When we think about economic contribution, we often think in terms of income; think salaries, bonuses, business revenue, investment returns. These are measurable, reportable, and easy to quantify.
But every household runs on more than what appears on a pay stub.
Behind most successful families is a significant amount of unpaid work: coordinating schedules, managing household logistics, overseeing childcare or elder care, handling school communication, arranging travel, managing home maintenance, organizing finances, and serving as the central point of communication for the family. In some households, these responsibilities are shared. In others, one person carries the majority of that operational load.
While this work may not generate direct income, it carries measurable economic value.
If outsourced, many of these responsibilities would require paid services. There are childcare providers, tutors, drivers, personal assistants, elder-care coordinators, and more. The replacement cost of these services can be substantial. Various economic studies estimate that if unpaid household labor were formally counted, it would represent a meaningful percentage of overall economic output.
From a planning perspective, this matters.
When families think about protecting their financial future, the focus often centers on income earners. Life insurance, disability coverage, and retirement projections frequently revolve around salary replacement. Yet the loss ā temporary or permanent ā of the person managing unpaid household responsibilities can also create financial strain.
For example:
ā¢ If a primary caregiver becomes unable to provide care, childcare costs may rise significantly.
ā¢ If the individual coordinating an aging parentās
ā¢ If a householdās primary organizer is absent, the time and efficiency required to manage daily operations can shift dramatically, sometimes affecting earning capacity for the other spouse.
These transitions can be especially pronounced during life events such as retirement, illness, divorce, or widowhood. In many cases, the financial impact of unpaid roles becomes most visible when they are disrupted.
Recognizing the economic value of unpaid work is not about comparison or compensation ā it is about clarity. It allows families to evaluate their financial plans more holistically. It prompts thoughtful questions:
ā¢ If one spouse were unable to manage household responsibilities, what would need to be replaced?
ā¢ Has the family accounted for potential caregiving costs for children or aging parents?
ā¢ Are both partners familiar with financial accounts, contacts, and processes?
ā¢ Does the overall plan reflect not just income streams, but operational realities?
For multigenerational families, these considerations are becoming increasingly important. As longevity increases and caregiving responsibilities expand, the line between financial planning and life planning continues to blur. A comprehensive approach considers not only assets and income, but also the systems and structures that allow those assets to support a family effectively.
Wealth is often measured in dollars. But stability, organization, and coordinated care are forms of capital as well even if they do not appear on a balance sheet.
By acknowledging the economic weight of unpaid roles within a household, families can make more informed decisions about risk management, contingency planning, and long-term sustainability. In many cases, protecting the financial future of a family means recognizing the full scope of what keeps that family functioning today.
Team News
Meet our newest team member ā Adam Kolarek
Tell me a little about yourself.
Growing up in Baltimore, I never imagined my journey would take me from the University of Maryland to a 15-year baseball career. Spending time in the big leagues with the Rays, Aās, and Metsāand winning a World Series with the Dodgersā taught me a lot about staying calm under pressure and the power of a solid game plan. Now, as a husband and dad of two, Iām excited to bring that same focus and team-first mindset to my new career at Maller Wealth Advisors. Iām looking forward to using the lessons I learned to help families reach their financial goals.
What do you do on a typical weekend?
Our family time on the weekends is action packed. My kids are now beginning to try new sports, and it has been amazing to watch them compete and see their confidence grow. We love to go on hikes and play in the backyard, as well as host cookouts for our whole family to be together.
What is one thing about you that few people know?
My baseball journey was full of ups and downs, but a pivotal moment in my career came during my 6th season when I learned a new side-arm pitching style. This new arm slot propelled me to my first major league opportunity in Tampa, and helped sustain my career for the next 9 seasons.
What is your favorite part about working with the team at Maller Wealth Advisors?
I have been so impressed by the camaraderie and the communication skills that exist here at MWA. The team works so efficiently and can truly count on each other to achieve our clientsā goals.
Connect With Us
Phone 410-771-5560 Fax 443-589-0330
www.mallerwealthadvisors.com
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How to Reach Us
Wealth Advisory Services
Matthew Aversa, ChFCĀ® , BFAā¢ ā Managing Partner, Financial Planner | Matthew.Aversa@MWAteam.com
Devon G. Gluck, CFPĀ®, CIMAĀ® ā Partner, Financial Planner | Devon.Gluck@MWAteam.com
John E. Layug, MBA, CFPĀ®, AEPĀ® ā Partner, Financial Planner | John.Layug@MWAteam.com
Brandon Cawley, CFAĀ® ā Director of Investment Management | Brandon.Cawley@MWAteam.com
Luke Charlton ā Planning Analyst | Luke.Charlton@MWAteam.com
Adam Kolarek ā Planning Analyst | Adam.Kolarek@MWAteam.com
Cristina āTinaā Kothari, MBA, CDFAā¢ ā Associate Director | Tina.Kothari@MWAteam.com
John āJackā Lombardo, CFPĀ® ā Senior Planning Analyst | Jack.Lombardo@MWAteam.com
Zellie Wothers, CRPSĀ®, CFPĀ® ā Associate Director/401k Specialist | Zellie.Wothers@MWAteam.com
Operations and Scheduling
Mary Goles, FPQPā¢, aPHRĀ® ā Director of Operations | Mary.Goles@MWAteam.com
Administrative Support and Implementation
Kara Scott, FPQPā¢ ā Director of Administration | Kara.Scott@MWAteam.com
Jennifer Schepers ā Implementation Specialist | Jennifer.Schepers@MWAteam.com
Deletha Chiu ā Implementation Specialist | Deletha.Chiu@MWAteam.com
Securities and investment advisory services offered through Osaic Wealth, Inc, member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/ or marketing names, products or services referenced here are independent of Osaic Wealth Osaic Wealth and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.
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Opinions expressed are those of Maller Wealth Advisors and not necessarily those of Osaic Wealth. Forward looking statements may be subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied.