What is a fiduciary financial advisor, and is Patten Financial Group one?

Yes — as fiduciaries through our affiliation with Redhawk Wealth Advisors, Inc. (an SEC-registered Investment Adviser), we are legally required to act in your best interest at all times. We put your interests above our own, avoid conflicts of interest, disclose any potential issues, and provide accurate, thorough advice.

How do you get paid, and are you fee-only?

We operate as a fee-based fiduciary firm with transparent compensation focused on your success. This structure helps minimize conflicts and aligns our interests with yours, so you always know how and what you're being charged.

I'm not happy with my current financial advisor or wirehouse. How do I know if it's time to switch?

Common signs include: you rarely hear from your advisor outside of account statements, you're not sure exactly what you're being charged or why, your portfolio hasn't been reviewed against your current goals in over a year, you've been passed between different advisors at the same firm, or you feel like a number rather than a relationship. If any of that sounds familiar, a complimentary second-opinion conversation can help you see where you stand — with no obligation to move anything.

What's the difference between a fiduciary advisor and a wirehouse broker?

A fiduciary is legally required to act in your best interest at all times. Many wirehouse brokers, by contrast, are held only to a 'suitability' standard, meaning a recommendation only has to be reasonable for your general situation — not necessarily the best available option — and may be influenced by commissions or proprietary products. As fiduciaries, we don't have that conflict: our recommendations are based on what's best for you, and our fees are transparent.

Do you work with high-net-worth individuals, executives, and business owners?

Yes. A significant part of our practice is dedicated to executives, business owners, and pre-retirees and retirees with more complex financial pictures — including concentrated stock positions, equity compensation, business succession and exit planning, tax strategy, and estate planning coordination alongside retirement income planning.

Is switching financial advisors complicated?

It's more straightforward than most people expect. In most cases, assets transfer directly between custodians without you needing to liquidate anything, and we handle the paperwork alongside you. We'll walk you through exactly what to expect before you decide to move forward.

Mid-February Tax Moves: Maximize 2026 Opportunities Before It’s Too Late

Feb 11

Written By Aaron Patten

Hello, I’m Aaron Patten, an independent fiduciary financial advisor based just outside of Chicago. As we reach mid-February in 2026, many folks are wrapping up their 2025 tax returns, but this is also a great moment to look forward to the current tax year. With inflation adjustments and provisions from the One Big Beautiful Bill Act (OBBBA) in play, there are several key areas that can influence your overall tax picture. This is general educational information only—tax situations are highly individual, so I strongly recommend discussing your specific circumstances with a qualified tax professional.

Understanding the 2026 Income Tax Brackets

The IRS adjusts federal income tax brackets annually for inflation. For 2026, the seven marginal rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These apply to taxable income after deductions and exemptions.

For single filers:

10%: $0 to $12,400
12%: $12,401 to $50,400
22%: $50,401 to $105,700
24%: $105,701 to $201,775
32%: $201,776 to $256,225
35%: $256,226 to $640,600
37%: Over $640,600

For married couples filing jointly:

10%: $0 to $24,800
12%: $24,801 to $100,800
22%: $100,801 to $211,400
24%: $211,401 to $403,550
32%: $403,551 to $512,450
35%: $512,451 to $768,700
37%: Over $768,700

These progressive brackets mean different portions of income are taxed at different rates, which can affect planning around income recognition or deductions.

Standard Deduction and Additional Deductions for Seniors

The standard deduction for 2026 is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for heads of household.

Under OBBBA, individuals age 65 and older may qualify for an additional deduction amount (on top of the standard deduction) for tax years including 2026, aimed at providing support for seniors.

Retirement Contribution Limits

Retirement savings contributions continue to offer potential tax benefits depending on account type and eligibility. For 2026:

The limit for employee elective deferrals to 401(k), 403(b), and most 457 plans is $24,500.
Catch-up contributions for those age 50 and older are $8,000 (bringing the total to $32,500 if eligible).
For participants aged 60–63, a higher catch-up limit of $11,250 may apply if the plan permits it.
For traditional and Roth IRAs, the contribution limit is $7,500, with a $1,100 catch-up for those age 50 and older.

These limits are set by the IRS and can play a role in how individuals approach saving for the future.

Charitable Giving Opportunities

OBBBA introduces changes for 2026, including a provision allowing non-itemizers (those taking the standard deduction) to deduct up to $1,000 ($2,000 for married filing jointly) in qualified cash charitable contributions to certain organizations.

For itemizers, charitable deductions are subject to a floor where only amounts exceeding 0.5% of adjusted gross income may qualify in some cases. Strategies like timing or bunching contributions have been discussed in tax circles as ways some people consider aligning gifts with thresholds.

Capital Gains and Investment Considerations

Long-term capital gains rates (for assets held more than one year) are 0%, 15%, or 20%, depending on taxable income levels.

For 2026:

0% rate applies up to $49,450 for single filers ($98,900 for joint).
15% rate from $49,451 to $545,500 for single ($98,901 to $613,700 for joint).
20% rate above those thresholds.

These rates apply separately from ordinary income brackets and can influence views on holding periods or realizing gains/losses.

Estate and Gift Tax Exemptions

The federal unified estate and gift tax exemption for 2026 is $15 million per individual ($30 million for married couples with portability). This is an increase from prior years, indexed for inflation in subsequent periods.

The annual gift tax exclusion remains $19,000 per recipient in 2026. These higher thresholds provide more room for lifetime transfers without incurring federal estate or gift taxes for many families.

Other Notable Changes from OBBBA

OBBBA includes various provisions taking effect or continuing into 2026, such as adjustments to certain health-related arrangements (e.g., HSA-compatible plans or direct primary care) and other targeted deductions. Some elements, like no tax on certain tips or overtime, were applicable in 2025 but highlight the evolving landscape.

Mid-February offers a natural pause to reflect on these elements—whether reviewing withholdings, contribution pacing, or general year-ahead considerations. As a fiduciary advisor, I’m committed to helping clients navigate these topics thoughtfully.

This article is purely for educational purposes and is not tax or financial advice. Tax rules are complex, subject to change, and depend on individual facts. Always consult a tax advisor, CPA, or attorney for guidance tailored to your situation. If you’re in the Chicago area and want to discuss broader wealth management approaches in a no-pressure way, feel free to reach out—I’m happy to connect.

Sources

Internal Revenue Service: IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill – https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
Internal Revenue Service: Revenue Procedure 2025-32 (PDF) – https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 – https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500 n
Internal Revenue Service: Notice 2025-67 (PDF) – https://www.irs.gov/pub/irs-drop/n-25-67.pdf
Tax Foundation: 2026 Tax Brackets and Federal Income Tax Rates – https://taxfoundation.org/data/all/federal/2026-tax-brackets
Fidelity Investments: 2025 and 2026 tax brackets and federal income tax rates – https://www.fidelity.com/learning-center/personal-finance/tax-brackets
Tax Foundation and other analyses on OBBBA charitable changes (summarized from various sources including Tax Foundation blog on charitable deduction changes under OBBBA).

Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC

Registered Investment Advisor. SEC Registration does not imply any level of skill or

understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and

separate legal entities.

Aaron Patten

Mid-February Tax Moves: Maximize 2026 Opportunities Before It’s Too Late

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