Core Insights - The article emphasizes the importance of reviewing investment plans for 2026, highlighting factors such as tariffs, interest rates, and the AI boom that significantly impacted investments in 2025 [1] Investment Plan Overview - An investment plan tailored for the average American was created, considering a median income of $62,192 per year for full-time workers [2] - Recommendations include building an emergency fund and paying down debt before making substantial investments, along with setting goals and establishing a time horizon [3] Recommended Investment Allocation - The suggested core portfolio allocation for 2026 includes: - U.S. Stocks: 45% (Vanguard Total Stock Market - VTI) for long-term growth - International Stocks: 15% (Vanguard Total International - VXUS) for global diversification - U.S. Bonds: 25% (Vanguard Total Bond Market - BND) for stability and income - REITs/Real Estate: 10% (Vanguard Real Estate - VNQ) as an inflation hedge - Cash/Treasury bills: 5% for liquidity and safety [4][5] Monthly Investment Plan - A monthly investment plan is proposed with a contribution of $900, or approximately 17% of income, allocated as follows: - 401(k) – S&P 500 Index: 40% ($360) - Roth IRA – Target-Date 2060 Fund: 35% ($315) - Brokerage – International ETF (VXUS): 10% ($90) - Brokerage – REIT (VNQ): 10% ($90) - High-Yield Savings/T-Bills: 5% ($45) [6][7] 2026 Economic Outlook - Key economic trends to monitor in 2026 include: - Interest rates may decline by mid-2026, positively affecting stocks and bonds - Inflation is expected to stabilize between 2.5% and 3% - Real estate may slowly rebound as mortgage rates ease - AI, clean energy, and infrastructure are identified as key growth sectors [8][9]