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We know the economy is unpredictable, geopolitical events can happen without warning, and markets will do what they do, no matter who predicts what. Here's how to focus on what you can control.
By
Mallon FitzPatrick, CFP®, AEP®, CLU®
published
8 January 2026
in Features
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Every January, the financial news landscape is flooded with two things: Articles about canceling unused gym memberships and confident predictions about where the S&P 500 will finish the year.
While getting fit is a noble goal, betting your financial future on market forecasts is a fool's errand. If the past few years have taught us anything, it is that the economy is unpredictable, geopolitical events are sudden, and markets will do what they do regardless of what the pundits say.
As 2026 gets underway, I am advising my clients to ignore the crystal ball and focus on the mirror. The success of your financial plan usually has less to do with beating an index and more to do with your behavior.
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Sign upThis year, commit to three goals that focus entirely on what you can control: your liquidity, your spending and your organization.
Goal No. 1: Build a 'fortress' liquidity buffer
For years, cash was viewed as "trash" — a drag on returns that yielded next to nothing. But the environment has changed, and so must your strategy. In 2026, cash is not just an asset — it is a risk-management tool.
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We are seeing a structural shift in the labor market. Job transitions, especially for executives and high earners, are taking significantly longer than they used to. Replacing a six-figure income or a C-suite role can easily take 12 months or more.
The danger here is sequence of returns risk — being forced to sell long-term investments (stocks) during a market dip just to pay the mortgage.
The goal: Move beyond the old "three-to-six month" emergency fund rule and aim for an 18-month liquidity buffer.
This doesn't mean hoarding 18 months of your current spending. Calculate your essential monthly burn rate — housing, debt service, insurance and groceries — and keep 18 months of that figure in high-yield savings or short-term Treasuries.
To supplement this, ensure you have access to backup liquidity before you need it. This could be a home equity line of credit (HELOC) or a pledged asset line (PAL). Liquidity provides flexibility, and in wealth management, flexibility is what protects you from selling low.
Goal No. 2: Know your 'safe spend number'
When I review financial plans that have gone off the rails, the culprit is rarely the stock market; it is almost always the spending.
Lifestyle creep is the silent killer of wealth. As income rises, expenses tend to expand to fill the void. A kitchen renovation here, a luxury subscription there, and suddenly a high income feels tight. The stress comes from a lack of boundaries.
The goal: Determine your safe spend number.
This is the specific amount you can afford to spend monthly without jeopardizing your long-term liquidity or retirement goals. This approach is liberating because it moves you away from the tedious task of tracking every latte and toward a holistic view of cash flow.
Focus on what comes in vs what goes out. If you receive a raise or a bonus in 2026, go ahead and enjoy a percentage of it — but bank the rest. Sustainable spending is the bedrock of long-term peace of mind.
Goal No. 3: Give the gift of administrative clarity
We often think of "legacy" as the assets we leave behind. But ask anyone who has had to settle an estate, and they will tell you that the most thoughtful legacy is administrative clarity.
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Families rarely fight because of a lack of money; they fight because of confusion. I see too many families struggle during a time of grief because estate documents were outdated, trusts were unfunded or passwords were lost to the digital ether.
The goal: "Audit" your estate administration
Don't just rely on a will you signed 10 years ago. Instead, ensure your estate plan is simple, current and accessible.
- Update designations. Ensure your health care proxies and financial powers of attorney are listed and willing to serve.
- Simplify access. Create an "in case of emergency" system. Someone you trust must know where your physical documents are and how to access your digital life (passwords, 2FA codes and accounts).
This allows your loved ones to focus on what matters — each other — rather than wrestling with paperwork and probate courts.
The bottom line
Markets will fluctuate, and the economy will shift gears. You cannot control interest rates or inflation prints.
However, your liquidity, your spending discipline and your estate organization are fully within your hands.
Make 2026 the year you stop worrying about the market and start optimizing your financial plan.
Related Content
- If You're a High Earner, You Need an 18-Month Safety Net
- Are You a High Earner But Still Broke? Five Fixes for That
- Protect Your Family's Future: Avoid These 12 Common Estate Planning Mistakes
- Your Estate Plan Isn't 'Done' Until You've Completed These Five Steps
- What Would You Like to Leave Behind? A Financial Planner's Guide to Family Wealth Discussions
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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Mallon FitzPatrick, CFP®, AEP®, CLU®Social Links NavigationPrincipal, Managing Director and Head of Wealth Planning, Robertson StephensMallon FitzPatrick leads Robertson Stephens’ Wealth Planning Team and delivers comprehensive wealth planning solutions for high-net-worth and ultra-high-net-worth clients. He collaborates with clients to develop a strategy that integrates tax planning, risk management, philanthropy, liquidity and balance sheet management, estate planning and investments. Ultimately, the client is provided with a cohesive wealth plan that helps increase the likelihood of experiencing good outcomes, meets their objectives and aligns with their preferences.
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