The Cornerstone Compilation

Kevin Karpuk, CEO: “2026 marks a couple of important anniversaries. On the national level the United States turn 250 years old. On a smaller level Cornerstone celebrates our 10th anniversary of being an ESOP company. We are incredibly excited about the possibilities ahead. Organizations that are not growing and innovating are dying, but any group that forgets its origin story is subject to the random winds of the times. We are as committed as ever to the belief that our independence and risk-focused strategies will continue to serve our clients.”

Ryan Wood, Co-Chief Investment Officer: “After three years of extraordinary market returns, it’s easy to be lulled into a sense of complacency and the temptation to up-risk a portfolio. As we look ahead to our 2026 Capital Market Assumptions, we focus on the real year-to-year differences between portfolio allocations and their associated downside risks. This annual exercise is meant to curb behavioral biases–whether it’s the temptation of risk after years of strong returns or the aversion to it after large pullbacks.”

Trevor Reid, Co-Chief Investment Officer: “Innovation and investment in artificial intelligence is here to stay. And just like innovation, AI investment will continue to change and adapt. The model builders led the charge, followed by the chip designers and chip makers, then the hyperscalers and energy providers. What does the next phase of the investment wave look like? Does the market’s attention turn to the implementors? Who will be able to best utilize AI and gain an edge before everyone else? Will its implementation be used more for cost control or will it be able to create and generate new revenue streams? These questions are not easy to answer nor will it be easy to pick winners, but it is important to understand the dynamics and stay in the game.”

Tyler Papaz, President and Director of Private Wealth: “For private wealth clients, the OBBB locks in or expands a number of tax provisions that impact estate-, charitable-, and small business- planning strategies. For example, a permanently higher gift- and estate- tax exemption of $15 million per individual (indexed to inflation) removes the “use it or lose it” timing pressure of the exemption created under the 2017 Tax Cuts and Jobs Act, providing clarity to individuals establishing their estate planning strategies.”

Angela Oste, Director of Insurance Operations: “The OBBB doubles the federal estate tax exemption, which may result in fewer estates leveraging life insurance as a liquidity tool for estate tax payments. However, higher standard deductions and senior-focused tax breaks may free up cash flow for premium funding or charitable planning using life insurance. Life insurance continues to be relevant component of estate planning as a source of tax-free funds that can replace lost income, carry out a buy-sell, equalize inheritances if some children will not inherit a business, and provide for other survivor needs.”

Jennifer Bauder, Director of Retirement Planning: “2026 comes with several critical deadlines for retirement plans.  Full document restatements incorporating required and provisionally adopted features from SECURE, CARES, and SECURE 2.0 are due by the end of the year for most plans. One of the most discussed provisions is the requirement for catch-up contributions made by high wage earners to be Roth (pre-tax) contributions, effective at the start of the year.  A robust communication campaign explaining changes to participants has already begun and will continue throughout 2026. It will be interesting to see what, if any, retirement savings behaviors change based on new policy.” 

Stephen Link, Director of Philanthropic Services: “The operating environment for many non-profits has become more difficult. Uncertainty around government funding, reimbursements, and pricing for services, as well as inflationary cost pressures and increased competition for philanthropic support, are creating strong headwinds for many institutions. A less discussed, longer-term challenge for non-profits is defining their value proposition to those making generational wealth transfer decisions. Policy changes around estate taxes have reduced the inducement to consider charitable donations, so institutions will need to refine their message as potential donors assess their approaches to asset distribution during retirement and at death.”