The stock market has outpaced expectations in 2026, but Joe Vitale says the real risk for retirees isn’t a market downturn. It’s panic.
“Remember, earnings drive the market, and now we’re in earnings season again. Financial earnings are reporting very double beats,” said Vitale, owner and investment advisor representative at Vitale Wealth Management. “It’s amazing.”
With equities up more than 10% on the year and inflation showing signs of cooling, Vitale told Live in the D viewers that the fundamentals remain solid despite noise from overseas.
“You have to look at the fundamentals and you just got to keep the faith and stay invested and don’t let the emotions get involved,” he said.
On interest rates
The Federal Reserve has held rates steady, and Vitale said he doesn’t expect dramatic movement before year’s end. “I would love to see a quarter point cut by year end,” he said, adding that he’s not counting on it.
For retirees navigating the rate environment, he cautioned against defaulting to bonds. “Bonds can still lose money and they’re not performing that well because interest rates high mean bond values are down,” Vitale said.
Instead, he pointed to fixed annuities as a compelling alternative, noting that some products are currently offering guaranteed returns of 5.5% for five to ten years. “You’re actually still finding fixed annuity rates at 5.5% guaranteed for 5 to 10 years, which is super strong,” he said.
Tax planning before year’s end
Vitale urged retirees - particularly those over 65 - to review their tax brackets and consider Roth conversions while rates remain favorable.
“If we can do it at a lower bracket, let’s do it at a lower bracket and make it all tax-free down the road,” he said.
He noted that a $6,000 tax credit for seniors, combined with the elimination of taxes on Social Security income, creates a meaningful planning window before December 31.
For more information or to request a complimentary consultation, visit VitaleWealth.com.