Is There an AI Bubble?

With artificial intelligence all over the financial headlines and the stock market reaching new highs, many investors (including many of you) are wondering if we're experiencing another bubble similar to the dot-com era. It's a fair question, and one we take seriously, especially given the high valuations and the enormous sums being invested in AI infrastructure.

I want to address these concerns directly and explain how we're thinking about AI investments in the context of your long-term financial plan. The key is to position your portfolio to benefit from innovation while also managing the risk of concentration appropriately.

End-of-year planning tends to get pretty busy for us—as you might imagine. Here are the December 31 deadlines that can impact both your 2025 tax picture and future financial outlook.

Here are a few of the items we’ve been working on and for you to review before the holidays:

• Investment gains / losses review

Assess whether Cap gains harvesting makes sense for your portfolio and tax situation. We’ve been doing this with many of you throughout the fall.

• Required Minimum Distributions (RMDs)

We’ve reached out separately to everyone with an RMD or QCD to confirm your 2025 status and action plan.

• Charitable giving / Qualified Charitable Distributions (QCDs)

Evaluate whether to make cash gifts, donate appreciated securities, or direct a QCD from your IRA if you’re age 70½.

• IRA or Roth IRA contributions

You technically have until April 15 to make 2025 IRA contributions but handling them by year-end often makes coordination and tracking more efficient.

• Roth conversions

If 2025 is shaping up to be a lower-income or lower-tax-rate year, a Roth conversion may make sense.

• 529 plan contributions (deadline: December 31)

Consider topping off 529 plans to stay on track with education goals and take advantage of possible state tax deductions.

• Employer retirement plan deferrals (401(k), SEP, SIMPLE)

Confirm whether additional deferrals can still be made for 2025 to max out your contributions. (While you’re at it, it’s a great time to bump up your savings rate for 2026.)

• Estate / gift planning opportunities

Evaluate any annual exclusion gifts, trust funding, or other transfers while current estate-tax exemptions remain historically high.

We have loved seeing so many of you recently for your annual planning reviews! If you haven’t had a recent review or just want to get your name on the welcome board, reach out to ying@bridgequest.com to schedule your review (video, phone call, or in-person).

As always, please do not hesitate to reach out if you have any questions.

Sincerely,

Matt Gazaway, CFP®  |   Greg Dillard, CFP®

(913) 276-7110

matt@bridgequest.com | greg@bridgequest.com

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