Stock Market Commentary February 2026
New State of Michigan IRA Distribution Withholding Rules
As of January 1st, 2026, distributions from traditional IRA accounts after the age of 59 ½ are no longer taxable in the state of Michigan in most circumstances (1). They are still Federally taxed.
If you plan to take a distribution in 2026 or if you are currently receiving monthly income and would like no Michigan tax withheld, please let us know and we'll adjust your withholdings. It was our belief that Charles Schwab would automatically adjust for this for all Charles Schwab customers, but that is not the case, and it must be manually updated for each client.
The reason behind this is that some clients need extra state of Michigan withholding for regular income tax purposes or non-qualified investment purposes. Please give us a call at (586) 226-2100 if you'd like us to adjust your withholding in 2026 when making distributions from a Traditional IRA, especially for monthly income.
Fraud Alert: Charles Schwab – Action Required
To help ensure the highest levels of security, we recommend that you call Charles Schwab at 800-515-2157 and create a new "Verbal Password."
This will not affect how we manage your account or handle distributions, but we have been told by Charles Schwab that this will reduce the chance of fraud-related distributions and fraudulent transfers as the new password will be required for most client requested transactions.
Tax Season + Extra Liquidity = Potential for Further Growth
As of writing this letter, the S&P 500 is at the all-time high (2). There are three potential factors that can lead the stock market to further gains, especially between now and mid-May.
First, the Fed has cut interest rates, which may improve the economy, especially if the 10 Year US Government rate decreases in tandem. Since mortgage rates, credit cards, and many business loans are affected by interest rates, we'll be keeping a close eye on it (3).
Second, the Republicans have control of the Senate and House of Representatives. The White House has mentioned that they will aim financially to help win the mid-term elections in November (4). In our opinion, the administration may try to pull levers to improve or "window dress" the economy before the election.
Third, because of the tax legislation passed in 2025, many people are expecting to receive larger than normal tax refunds. People who work overtime, receive tips, and people on Social Security may be pleasantly surprised by their tax refunds (5). All these factors could lead to a positive stock market for the rest of the year.
Volatility Expected This Summer
As we mentioned in our market commentary last month, we believe this year has the potential to be positive, but also it will likely have volatility. We predict the bulk of this volatility to hit this summer. Absolutely anything is possible, so please continue to read our market commentaries, and know that we are doing everything we can to monitor and adjust when prudent.
Schedule Your Review Meeting
There is a lot going on in the world and it's a great time to touch base. If we haven't spoken in a while and you would like to go over your numbers, or you've had any changes to your family, finances, employer/job, or risk tolerance, please contact us at (586) 226-2100 to schedule a review meeting. We would love to meet with you over the phone, Zoom, or face to face to strategize.
Sincerely,
Ken Wink
with contributions by Robert Wink, James Wink, Zachary Bachner, CFP® and James Baldwin
Notes & Disclaimer: Investment advisory services are offered through Summit Financial Consulting LLC, an SEC registered investment advisory firm. Summit Financial Consulting Investment Advisory Firm Representatives do not render tax, legal, or accounting advice. Life/Annuity Insurance products and services offered by the individual insurance agent. Health insurance is offered through Summit Health Services, LLC and Property/Casualty (P&C) Insurance is offered through Summit Insurance Services, LLC and our local P&C agency partners. Please update Summit Financial Consulting LLC, if your investment objectives have changed or if the personal or financial information previously provided has changed. Past performance is no guarantee of future results. Representatives of Summit Financial Consulting LLC offer tax preparation services through Summit Tax Services. Summit Tax Services is a DBA of Heemer Klein & Company and they are owned and operated independently.
Ken Wink
Kenneth “Ken” Wink is the Co-Founder and Chief Compliance Officer of Summit Financial Consulting, LLC. With over 22 years of experience in the financial services industry, he is deeply knowledgeable and passionate about explaining complex financial concepts in understandable terms. Ken’s passion for simplifying complex financial concepts began early. While still in high school, he honed his skills by assisting classmates with their tax returns. This led him to pursue a B.A. in Finance at Michigan State University, graduating with honors. He further bolstered his qualifications by obtaining numerous financial licenses, including Series 6, 7, 63, and 65, along with Life, Health, and Accident licenses. Ken believes that everyone deserves to make informed financial decisions without feeling overwhelmed or intimidated. That’s why he writes articles that break down complex concepts into understandable terms, empowering you to navigate your financial future with confidence.