Tip of the Month: 2026 Retirement Contribution Limits

Once again, January (or late December) is a good time to make sure your retirement contributions are on track to be maximized for the upcoming year, if cash flow allows. These thresholds are higher for 2026 than they were for 2025, so if you were already maximizing them in 2025, an adjustment may be necessary. In addition, there’s a new(er) law that allows those aged 60-63 to contribute an even larger amount. 

The new limits are $24,500 per year or $2,042 per month for those under the age of 50. For those who are over or will achieve the age of 50 during 2026, the limit is $32,500 for the year or $2,708 per month.    

Beginning in 2025, those who turned 60-63 by the end of the year are eligible for an increased “catch up” contribution. This would increase their annual maximum contribution to $35,750, or $2,979 per month. After age 63, the maximum is the $32,500 stated above. 

These limits apply to 401k, 403b, and 457 accounts. Making the adjustment as early in the year as possible, or in late December to be picked up on the first payrolls of January, will help to ensure you will hit the maximum by the end. Your Bluestem meetings where we look at your progress towards the maximum would be several months into the year, and could result in a “late” adjustment to get you on track for the maximum. 

Contact your HR, or payroll provider to make the adjustment. Or, if you are with the University of Illinois, you can make the adjustment at the following links:

403b: https://www.hr.uillinois.edu/benefits/retirement/403b/sra

457: https://www.hr.uillinois.edu/benefits/retirement/457/enroll

IRA and Roth IRA limits are increased for 2026 as well, with the under 50 maximum at $7,500 for the year and the 50 and over maximum at $8,600 for the year.

Tip of the Month: Know Your Bluestem Team

As our team grows and folks take on new roles within the firm, we decided it was a good time to reintroduce ourselves and what do here (also thank you to a client who suggested this idea). Everyone was asked to share what they do in their own words. Here we are in photo order, from left to right.

Tim Lee

I am one of the advisors on the team. I put together financial plans for our clients, lead client meetings to set goals and keep their plan on track and support other advisors in their meetings. In addition, I put together numbers behind the scenes which include portfolio analysis and tax planning. Outside of client-specific work, I contribute to our marketing team and have co-written our previous blog series on the SURS RSP.

Rachel Tyson

I am a friendly, helpful, back-office gremlin. Following the instructions provided by advisors, I place trades and transfer cash. I help clients place trades in their workplace retirement accounts, open non-Schwab accounts, and roll over their workplace retirement plans when they switch jobs or retire. I create paperwork (sometimes lots of it) for clients to sign. I build and create workflows in our software to ensure that the plans you discuss with your advisor are implemented and verified. Occasionally I come out from my cubicle and interact directly with clients. I’m looking forward to doing more of that now that I’m living in Champaign again.  My one sentence summary: I’m here to help implement the financial plan you discussed with your advisor as smoothly as possible.

Josh Cutler

I wear lots of "hats" at Bluestem! In my role as a Senior Advisor, I have two key responsibilities. First, for leading the planning work for clients, helping them to align money with meaning and purpose while ensuring that all the tactical to dos are also taken care of throughout the year. Second, I serve as a mentor and partner to Rodney and Tim to provide them with whatever support they need to be successful in their roles as advisors; together, the three of us operate as an advisory team, serving clients and supporting each other. Another hat that I wear is Director of Human Capital, a leadership role that puts me in charge of employee recruitment, hiring, training, and development systems and processes. I oversee our compensation and benefits plan and ensure our team loves their work and is balancing their work life with their home life. My final hat is the Integrator of Bluestem. In this role, I, alongside Jake, am setting the strategic direction of our firm, making sure we have a strong and intentional culture, and ensuring that there is accountability for all of us to be held to the highest professional standards. While I wear many hats, my overall focus is to support the success of others around me, whether it be clients, the Bluestem team, or local or industry partners. What a way to get to spend your "working" hours!

Rodney Camper

Simply put, my job as an advisor is to know you. Who are you? What values drive you? What's important to you? What fills up your cup? Where do you want to be? What kind of life do you want to live? All the financial planning knowledge in the world means nothing if it doesn't connect with you and further your hopes for life. Practically speaking, I take my financial planning knowledge and use it to find efficiencies, strengths, or weaknesses and I run it through a filter of who you are and where you want to be in order to make sound decisions. 

Just as an example - say someone is far ahead of retirement savings goals. At face value, the financial math implies that the person could spend more money in retirement, but what if they already live comfortably? What if I knew them more personally and understood they were feeling burnt out at work (and could afford a lower paying career path) or that they've always wanted to travel the world while health allows (and could retire earlier than they thought to do that)?  

Nick Vogel

I am one of the advisors on the team. My role is to meet with clients, learn about their goals, and then help make sure their financial plan can accomplish those goals. Internally, I am the one “coordinating the plan” with all the other helpful members of the team who are getting things done behind the scenes. As the CPA of the firm, and a former tax accountant, I am passionate about taxes. I often field accounting questions for clients who own businesses and tackle thornier tax questions and tax issues for my clients and others. Each spring, I make sure the firm is preparing clients’ tax returns quickly and efficiently. In sum, I like getting to know clients and I like taxes!   

MaryBess Gordon

My primary role is leading the Client Services team, making sure our clients feel supported and have the help needed to execute their financial plan. However, I like to joke that my unofficial title is Chaos Coordinator as I work to help things run smoothly behind the scenes as well; everything but the advising if you will. My role is all about building strong relationships, solving problems, and keeping both our clients and our team set up for success.

Joe Miebach

I am the financial planner behind the scenes who is taking the information you provide and synthesizing it into (hopefully) helpful reports and analyses. I am often the one bugging you with requests for account details and paystubs and the like. At the core, my main role is equipping your advisor with what they need to have a valuable conversation with you. Hopefully a majority of the details are being handled behind the scenes so that you can spend as much time as possible in conversation with your advisor and thinking big picture about your hopes, dreams, and fears.

Jake Kuebler

At Bluestem, I wear two hats. As a Senior Advisor, I lead client relationships to help connect each client’s story to their money and the planning our team crafts behind the scenes. As a Managing Partner, I guide the firm’s evolution alongside Josh, focusing on how technology and team strengths can deepen our value, how we tell our story to the public, ensure every client finds the right fit and support, and oversee day-to-day business operational tasks.

Sam Wesley

As a Financial Planning Resident at Bluestem, I get to help families bring clarity and confidence to their financial lives while growing both personally and professionally through real, hands-on experience. The residency gives me the chance to work directly with families and individuals, while building financial plans that reflect their goals, values, and what truly matters most. Here is a recently published blog outlining more of my experiences in my first year and a half at Bluestem!: Shaping the Future of Financial Planning: A Resident's Perspective — Bluestem Financial

Julie McClure

I am the smiling face you see when you walk through the doors, the friendly voice who answers the phone, and the person sending you all those helpful reminders to sign things, schedule things, and submit things. I'm processing your paperwork and double checking each day to make sure that it's doing so correctly, and that your money is moving the way it's supposed to. In addition to daily tasks like these, I work on marketing and outreach. I put together the newsletter and blog each month, and work alongside MaryBess to help plan the client event and other fun gatherings.

Tip of the Month: Requesting Your Free Credit Report

It’s good practice to regularly review your credit report. Not only does it allow you to monitor your credit activity and notice any signs of fraud before it becomes a larger problem, but it will also keep you aware of your broader financial picture when it comes to the varied types of credit you are using. And, if you notice any errors in your report, you can take action to report them, so you are not negatively impacted by incorrect information.

How do I do it?

There are three main credit reporting agencies: Equifax, Experian, and TransUnion. They’ve joined forces on one website (https://www.annualcreditreport.com/) where you can put in one request and get a report from each agency. Despite the name of the website, the law has changed, and you can request a credit report once a week for free. You probably have better things to do than to do this on a weekly basis, and that amount of frequency probably isn’t necessary. However, a once-a-year review of your credit report is very reasonable. You also may want to request a report prior to purchasing a home or a car with credit.

What information will it give me?

Each of the three credit reporting agencies offers an example of what your credit report might show. They tend to contain these pieces of information:

• Personal information (name, phone, current and previous addresses, date of birth, social security number)

• Credit account information, including the type of account, when it was opened, the original balance, the name of the loan company, and payment history

• Collections – past due accounts that have been taken over by a collections agency

• Bankruptcies

• Inquiries – when an entity requests a credit report. A hard inquiry indicates a lender or creditor has reviewed your report after you’ve applied for a credit card, mortgage, or auto loan. A soft inquiry is typically when you are checking your report, or when a current creditor is reviewing your credit.

If you notice an error in reporting, you can contact the reporting agency to dispute it. The Consumer Financial Protection Bureau offers guidance on how to do this.

What if it appears there’s been fraudulent activity?

Last year we shared a Tip of the Month on how to deal with possible identity theft or a data breach. You’ll find helpful information there on how to contact the credit agencies and put a freeze on your account.

References:

https://www.usa.gov/credit-reports

https://www.transunion.com/how-to-read-your-credit-report

https://www.experian.com/blogs/ask-experian/credit-education/report-basics/understanding-your-experian-credit-report/

https://www.equifax.com/personal/education/credit/report/articles/-/learn/understanding-credit-report-history/

https://www.myfico.com/credit-education/whats-in-my-credit-report

Tip of the Month: Sharing and Storing Your Estate Documents Wisely

Creating your estate documents is an essential part of a well-built financial plan but knowing what to do with those documents once they’re signed is just as important.

So, who needs copies? Where should they be stored? And what else should you be thinking about when it comes to organizing this important part of your legacy?

Here are some best practices to keep in mind.

What to Include

At a minimum, your estate plan should include:

• Last Will and Testament

• Powers of Attorney (for property and for healthcare)

• Any Trust documents, if it’s a good fit for your situation

• Advance Directives, such as a Living Will or Health Care Proxy

These are the tools your loved ones and trusted agents will rely on if you become incapacitated or pass away, so it's important that they're both complete and accessible.

Where Store Them and who should have them

Your attorney will likely keep the original on file, but we recommend the following:

• Keep your own original documents in a safe, secure, and accessible location, such as a fireproof home safe or a bank lockbox.

• Maintain electronic copies for easy access and sharing when needed.

• Make sure anyone named in your documents, such as your executor or power of attorney agent, has a copy or knows how to access one.

Just as important, make sure these people know where the documents are kept and how to access them. If the documents are in a lockbox, for example, they'll need to be listed as an authorized user. If stored in a safe, they'll need the code.

Think Beyond the Paper

Estate planning is more than just signing documents. It’s about helping someone step into your shoes during a difficult time. That person will likely be facing a number of logistical tasks, but they’ll also be carrying emotional weight. The more guidance you can give them, the better.

Try walking through your daily life and asking yourself: if someone else had to manage this, what would they need to know?

• What bills are paid automatically?

• Who should they contact for help?

• What accounts do you hold, and where?

• What devices or platforms hold important digital information and how can those trusted individuals access them?

More companies, including Google, are beginning to offer “digital legacy” features that allow someone you trust to access certain accounts after you pass away. These tools can be worth looking into as part of your broader planning. For more information about your digital legacy, check out our Tip of the Month on that topic.

Talk About It

The most important step you can take is simply to talk to the people you've chosen to help manage your affairs. These topics can be tough, but honest communication makes a world of difference.

____

Intentional planning and proactive communication go a long way in supporting the people you trust and love. If you, a friend, or someone in your family is thinking about estate planning, wants help weaving legacy into their financial plan, or is managing the affairs of a loved one, they should know that estate planning doesn't have to be overwhelming. Whether it’s help organizing your documents, talking through your legacy wishes, or coordinating with your attorney, let’s start the conversation — Bluestem is here to help.

Tip of the Month: Sign Up for a Password Manager

While I am extremely diligent about password security here at the office (we all are!), I admit that I still have work to do at home. Just this week I had an alert that a frequently used password of mine was found on the “dark web”. As I began to dig into the sites that I used this password for, I realized a lot of them were logins that were set up years ago, and that many of them were for sites that I no longer have a use for. A project this week will be to disentangle myself from those accounts.

However, it did impress upon me the urgency to take a look at my personal password situation for sites I use more frequently. I know that while some have a good strong password, many do not. For a long time, I was hesitant to create a bunch of passwords that I wouldn’t remember.

A password manager can remember all of them for me and keep them secure. It’s just a matter of setting aside some time to get started. I love this quote from Wired magazine:

Password managers are the vegetables of the internet. We know they’re good for us, but most of us are happier snacking on the password equivalent of junk food. For nearly a decade, that’s been “123456” and “password”— the two most commonly used passwords on the web. The problem is, most of us don’t know what makes a good password and aren’t able to remember hundreds of them anyway.

We shared a Tip of the Month in 2023 about password managers. This is an updated version of that post. Hopefully it will inspire you (and me) to get our personal passwords in order!

What are password managers?

While different sites might operate in slightly different ways, a password manager generally keeps all your passwords in a “vault” which is accessible with a single sign-in. It adds a layer of security by generating secure passwords and keeping them safe and secure in a singular location. You can even add layers of security using two-factor authentication! These sites are wonderfully useful in taking the hassle out of creating and keeping track of all your important passwords.

What are some options?

• Dashlane

• Bitwarden

• 1Password

• NordPass

How does it work?

• You create an account with a login and “master password”. Most applications have a free options for personal use. You can add features by paying a small amount each month.

• Then the manager can autofill your other passwords directly on your phone or computer.

• You can create folders to categorize and keep track of all passwords in one secure location

• The “generate password” feature can be used any time you need a new, secure password and it will save that information into your vault

What about using the password manager on your web browser?

Most web browsers (Google, Firefox, Safari) have a simple password manager. This article from Consumer Reports shares that this option is a better one than reusing the same weak password over and over. However, there are added benefits to using a separate password manager, including additional layers of security, shared access with other people in your family, and the ability to access your passwords no matter which internet browser you’re using.

Ways to make the most of password managers:

• Use shared folders. Depending on the subscription, you may have the ability to share your vault folders with another trusted contact or family member, which is great for families who share login information.

• Keep your master password somewhere secure. This could be somewhere in your physical files, or written into your estate documents in case someone needs to access your information in an emergency.

• Autofill is your friend. This feature is very useful for saving time when logging into different sites.

• Consider using it to store other information. Many password managers also give you the ability to store other information you’d like to keep secure, such as notes, copies of important documents, or copies of your passport or I.D.

Want more information?

We use Dashlane at our office, but any one of the services listed above has plenty of resources and guides that can teach you how to make the most of your password manager. The Wired article linked above does a nice job of highlighting the pros and cons of the different applications. If you have any questions or would like to know more please reach out to our office via phone or email.

This post was originally authored by Brogan McKay.

Books on Personal Finance: Bluestem Recommendations

Here at Bluestem we relish the opportunity to guide you in all of your financial endeavors, and share our knowledge with you. If you’ve ever felt compelled to explore topics related to personal finance on your own, we can help with that too! Here is a list of recommendations for some additional reading.

Money and Happiness: A Guide to Living the Good Life by Laura Rowley
Explores the connection between financial well-being and happiness, offering practical advice for aligning your money with your values.

The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money by Carl Richards
Uses simple sketches and stories to highlight common financial mistakes and how to avoid them by understanding our own behavior.

Happy Money: The Science of Happier Spending by Elizabeth Dunn and Michael Norton
Reveals how thoughtful spending — on experiences, others, and time — can lead to greater happiness and life satisfaction.

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
Blends storytelling and behavioral science to show how our emotions and experiences shape financial decisions more than logic.

Why Smart People Do Stupid Things With Money: Overcoming Financial Dysfunction by Bert Whitehead
Identifies financial personality types and offers tailored strategies to overcome money-related blind spots and build lasting wealth.

The Millionaire Next Door by Thomas J. Stanley and William D. Danko
Uncovers the surprising habits of America’s wealthy, emphasizing frugality, discipline, and long-term planning over flashy lifestyles.

A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy by Burton G. Malkiel
Offers a broad overview of investment strategies and market theory, encouraging informed, long-term investing over speculation.

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle
A timeless classic that champions the power of low-cost index funds, offering a clear and compelling roadmap for building long-term wealth through simple, disciplined investing.

Tip of the Month: Schwab’s Website

As accounts have transitioned from TD Ameritrade to Schwab, familiarizing yourself with Schwab's website can make your monitoring easier. Here are some tips to maximize the features now available through Schwab's platform.

Customize Your View

If the standard account names are causing confusion, you can easily change them. Navigate to the Account Groups section by clicking on the Profile icon and selecting it from the dropdown menu. Here, you can add and edit account nicknames and group accounts together for better organization.

Schwab App

Download the app for quick and easy access to view your accounts. Our favorite feature? The app makes it easy to deposit checks without running to the bank or Bluestem’s office with the mobile deposit feature.

Granting Account Access

Want to give your spouse access to your Schwab accounts through their login? It’s simple! Click on the Profile icon and select Account Access from the dropdown menu. This will take you to the Account Access page where you can initiate the process by clicking on the green button. If you encounter any difficulties, reach out to us, and we can prepare a form for you to sign instead.

Go Paperless

Missed an email from us to sign account paperwork? Most documents requiring a signature or approval can be accessed conveniently in the Message Center. Look for this icon on the Schwab website:

Reduce clutter and environmental impact by going paperless. Whether through the app or website, it's easy to update your preferences. Simply click on the Profile icon, select the paperless option from the dropdown menu, and make the switch.