Finance 101: November 2025

In November the financial advisors at Ruedi Wealth Management wrote four more columns for The News-Gazette’s Business Extra section. Make sure to look for them every Saturday in the weekend edition of the paper, but in case you missed any in November all four are below.

A Tale of Two Fisherman

Paul Ruedi

I recently spent six hours on a fishing charter, and since fish don’t bite all the time I had plenty of time to think. As I thought about the different ways people could approach fishing, I couldn’t help but notice how those approaches mirror the ways people approach investing.

The first fisherman, let’s call him Mr. Consistent, goes fishing every day for nearly the entire day. He doesn’t worry about the fishing forecast for that day or what other locals are saying about the current conditions. Every day, without fail, he shows up to fish, for many hours.

The second fisherman, let’s call him Mr. Righttime, is not so dedicated. He only fishes when other people report that the fishing is good. Since he isn’t committed to fishing every day, by the time he hears the fishing is good he only gets a couple of hours to fish.

So who catches more fish? I think we all know the person who is out on his boat with lines in the water for as many hours as possible is likely going to catch more fish. We never know when the fish will start to bite, but when they do Mr. Consistent is going to be on the water ready to catch them. Mr. Righttime may catch some fish when he scrambles out fast enough, but more often than not, by the time he is out on the water the fish have already moved somewhere else or been caught by other fisherman.

In a similar fashion, we as investors cast our lines out seeking stock market returns when we invest in the great companies of America and the world. When fishing you often wait all day and catch nothing, only to catch a dozen monster fish in a wild 30 minutes. The same is true for stock market returns: you may wait a long time with stocks not moving at all, only for the market to deliver a year’s worth of return in a week.

The problem is, nobody knows when that explosive growth will take place. If you are waiting for people to give you a warning, it likely won’t come until after the market has already risen and it is too late. When fishing and investing, it is better to be consistent and constantly remain in a position to catch fish or capture market returns, than to try to wait for the best times to do so. If you aren’t able to fish for stock returns like Mr. Consistent, you may want to talk to a financial advisor.

Paul Ruedi is the CEO of Ruedi Wealth Management in Champaign, Illinois.

Government Shutdowns

Paul R. Ruedi, CFP®

I’ve held off writing about the current government shutdown for over a month at this point. There is a lag between when I write these columns and when they are published. My assumption was that, like the majority of shutdowns in the past, the shutdown would be over before my column was published and I would be reporting on old news.

But here we are, 35 days later as I write this, tied for the longest government shutdown in history. For all I know, this shutdown could be over by the time this is published. But as it stands now, it appears this shutdown is going to be the longest on record.

During this shutdown a peculiar thing happened. After an initial dip in response to the news and the numerous concerns about how a government shutdown would impact the companies, the stock market is actually higher now than it was when the shutdown began. As it turns out, this isn’t unusual.

According to the archives of the US House of Representatives, this is the 11th time the government has shut down since 1982. Not including this current shutdown, they have lasted an average of 8.6 days, and the majority have lasted three days or less.

When the research department at Dimensional Fund Advisors looked at US stock market returns in the four instances that shutdowns lasted at least five days, they found the Fama/French Total US Market Index (a proxy for US stock as a whole) was either flat or actually rose in value during those shutdowns. As it stands right now, it looks like the current shutdown will follow suit.

Though shutdowns may impact a lot of people on a personal level, it appears the impact of shutdowns on investment portfolios isn’t so concerning. Government shutdowns are just another piece of noise the markets will ultimately overcome on their way to producing long-term returns for investors. Though they produce scary headlines, they have little to no impact on the long-term returns investors in the stock market receive.

Though the shutdowns have been getting longer in recent years, and the past two broke records for their length, in both cases the market actually rose during the shutdowns. Suffice it to say, like temporary declines, government shutdowns are something investors should expect to live through.

Investors should be ready to stick with their investments during these times and may even be rewarded for doing so while a shutdown is still happening. If you aren’t able to do that, you may want to talk to a financial advisor.

Paul R. Ruedi is a CERTIFIED FINANCIAL PLANNER™ professional with Ruedi Wealth Management in Champaign, Illinois.

Understanding the Probate Process

Paul Ruedi

When someone passes away, their loved ones often find themselves not only grieving but also faced with unfamiliar legal processes. One of the most misunderstood of these is probate. It sounds complicated, but probate is simply the state’s way of making sure a person’s financial affairs are settled properly after death.

In Illinois, probate is the legal process that confirms a will is valid, ensures debts and taxes are paid, and transfers remaining property to the rightful heirs. It’s essentially the court’s checklist for wrapping up a person’s life on paper.

Probate isn’t always required. If someone’s total assets are under $100,000 and they don’t own real estate in their name alone, the family can often use a simpler method, a “small estate affidavit,” to transfer property without going through full probate. Likewise, assets that already name a beneficiary like life insurance policies, IRAs, or payable-on-death bank accounts skip probate entirely. So do jointly owned assets, such as a home owned with a spouse.

When probate is needed, the process typically begins when the executor named in the will files the will with the local county court. If there’s no will, the court appoints an “administrator.” The court then issues what’s called letters of office, giving that person legal authority to handle the deceased’s estate.

Next comes the inventory, a listing of everything the person owned: homes, cars, investments, bank accounts, even personal belongings. The executor must also notify any creditors, giving them about six months to file claims. Valid debts, final bills, and taxes are paid from the estate before anything is distributed to heirs.

Once debts are settled, the executor distributes what’s left according to the will. If there’s no will, assets are distributed according to Illinois law. Finally, the executor submits a final accounting to the court and asks to close the estate.

The process usually takes six to twelve months, depending on the complexity of the estate and whether anyone contests the will. It can feel slow, but that’s because the system is designed to protect everyone involved from heirs to creditors and ensure everything is done fairly and legally.

It is important to understand your state’s probate laws because their default distribution order may not align with your personal wishes. Many families choose to plan ahead to avoid probate altogether. That can be done through tools like revocable living trusts, joint ownership, or naming beneficiaries on accounts. If you want to keep things as easy as possible for your heirs, you should consider working with an estate planner to develop a plan for your assets in the event of your passing.

Paul Ruedi is the CEO of Ruedi Wealth Management in Champaign, Illinois.

2026 Retirement Plan Contribution Limits

Paul R. Ruedi, CFP®

The IRS recently announced the new maximum retirement plan contribution limits for 2026, and though I wish there was some way to frame this information in a creative and interesting fashion, you’ll have to forgive this column for being somewhat of a dry list of facts.

Starting in 2026, the maximum an individual can contribute to a 401(k), 403(b) or 457 plan will increase by $1000 to $24,500 per year. Catch-up contributions for those age 50 will increase to $8,000 per year, an increase of $500 from 2025. This brings the total annual amount a person can contribute in their 50s to $32,500.

The exciting new change last year was a larger catch-up contribution for people in their early 60s, which remains in place but does not increase for 2026. In 2026 savers age 60-63 can make a catch-up contribution of $11,250, pushing their total elective deferral limit to $35,750.

The contribution limits for Roth and Traditional IRAs will increase by $500 to $7,500. The catch-up contribution available for those over age 50 will increase by $100 to $1100, bringing the total amount someone can contribute in their 50s up to $8,600. The income levels where phaseouts happen will also increase. The Roth IRA phaseout range will increase to $153,000 - $168,000 for single tax filers and those filing as head of households, and to $242,000 -$262,000 for couples.

For those hoping to make deductible contributions to traditional IRAs, single taxpayers covered by a workplace retirement plan will see their phaseout range rise to $81,000 - $91,000 in 2026. For couples who file jointly, the phaseout range will increase to $129,000 - $149,000 if the spouse making the IRA contribution is covered by a workplace retirement plan. If the person contributing to the IRA is NOT covered by a workplace plan but is married to someone who is, the new phaseout range will be $242,000 - $252,000.

Starting in 2026, the amount most people can contribute to their SIMPLE IRA accounts will increase by $500, to $17,000. The catch-up contribution for those aged 50 and older will increase by $500 to $4,000 in 2026 for combined total contribution of $21,000. Savers aged 60-63 will be able to make an even larger catch-up contribution of $5,250 to their SIMPLE plans for a total contribution of $22,250.

It is important to be aware of these limits and utilize tax-advantaged saving to the fullest extent possible. If you aren’t sure how to do that, you may want to talk to a financial advisor.

Paul R. Ruedi is a CERTIFIED FINANCIAL PLANNER™ professional with Ruedi Wealth Management in Champaign, Illinois.

Disclaimer: Past performance is no indication of future results. You should not make any investment decisions without first performing your own due diligence and consulting your financial advisor.