Investments That Set You Up for 2026 Success - Andy Tanner, Del Denney

Smart investors should use the end of the year to strategically position themselves for financial success in the coming years by focusing on cash flow and adapting to changes brought by AI.

• Strategically position investments before the year ends, considering tax implications and potential market shifts.

• Focus on building consistent cash flow and habits that promote long-term financial success.

• Acknowledge the impact of AI on the labor market and consider shifting focus towards owning labor through strategic investments.

As the year comes to an end, it's important to strategically position for a better financial future, considering factors like taxes and the impact of AI on labor. The focus should be on building consistent cash flow and adapting to the changing landscape of labor and ownership, rather than relying on short-term gains or calendar-based opportunities.

Q4 Tax Planning

• 00:03:39 Taxes are a primary consideration in Q4, influencing investor behavior and requiring consultation with a tax advisor to optimize financial positioning. A tax advisor helps determine which assets to liquidate or acquire, and how to navigate potential tax implications, such as capital gains, when transitioning between investments. Because taxes typically constitute the biggest liability on financial statements, Q4 provides an opportunity to strategically minimize tax burdens.

Santa Claus Rally

• 00:06:05 Q4 includes the holiday season, making retail and the 'Santa Claus rally' attractive for short-term swing or option trades, particularly for online retailers like Amazon and eBay. A targeted butterfly trade strategy can be employed to speculate on these seasonal trends with low risk and high reward. Analyzing charts and technical data to identify potential targets, and seasonality reports to understand market trends, help investors take advantage of this opportunity.

Building Momentum

• 00:11:07 Building momentum for the new year involves a shift in mindset towards habit formation and personal development rather than chasing specific trades or opportunities unique to Q4. The end of the year offers a valuable opportunity for evaluation and goal setting, focusing on behavioral changes and habits that improve as an investor. Instead of seeking a 'magic' strategy tied to a particular quarter, the emphasis should be on consistent, long-term growth through improved habits.

AI Impact on Labor

• 00:21:48 The advancement of AI presents a significant shift in the labor market, potentially leading to job losses and a change in how individuals approach work and investment. Unlike previous technological advancements that created more jobs, AI is automating perception, processing, and manipulation, traditionally human capabilities, leading to a potential reduction in the need for human labor. As AI continues to advance, the trend suggests that labor will become less valuable, requiring individuals to shift their focus from working for a job to owning the labor through investments.

Future of Labor

• 00:36:35 The future lies in owning labor and production, as traditional jobs may become obsolete due to AI and automation, which could lead to a universal basic income and a concentration of wealth among those who own the means of production. Shares of stock offer a means of owning labor and production, enabling individuals to leverage the work of others and participate in economic growth. Therefore, the key to thriving in the future will be financial education, knowledge, and habits that enable individuals to own and control production.