Podcast Summary: NerdWallet’s Smart Money Podcast

Episode: Investing in 2026: Fix Your Allocation Before the Next Market Swing

Date: January 5, 2026

Hosts: Sean Pyles, CFP® (A), Elizabeth Ayoola (D)
Guest: Alana Benson (C), NerdWallet Investing Writer

Episode Overview

This episode focuses on practical, research-backed investment strategies for 2026. The hosts and guest discuss the lessons learned from 2025’s market performance, the impact of AI and technology stocks, assessing portfolio diversification, top investing products for the year, and actionable tips for investors of all experience levels. The episode aims to help listeners align their asset allocation and investment habits ahead of potential market swings.

Key Discussion Points & Insights

1. Reflecting on 2025: Lessons Learned

• Market unpredictability was central: Despite recession fears and an April selloff, U.S. stock indices hit record highs later in the year.
• Volatility in Bitcoin: After hitting all-time highs, Bitcoin dropped about 30%, demonstrating the risks of speculative assets.
• AI Sector Boom: The dominance of AI companies—Nvidia, OpenAI, and others—heightened concerns about a potential tech bubble.
  • Quote: “Just because you think you know how it's going to go, you almost never do.” — Alana (03:43)

2. The AI Bubble & S&P 500 Concentration

• Tech Stocks Dominate S&P 500: Index is increasingly weighted toward a small number of tech giants (“Magnificent Seven”: Apple, Amazon, Google, Nvidia, etc.), leading to concerns about diversification.
  • Quote: “The S&P 500 is almost more of an S&P 7 because of how heavily weighted growth has been among these companies...” — Sean (05:24)
• Diversification Strategies:
  • Consider industry-specific funds in sectors like healthcare, energy, or commodities.
  • Use “equal weight” S&P 500 funds to reduce overexposure to mega-cap techs.
  • Alana advises: Don’t try to time bubbles; instead, diversify and avoid overconcentration.

3. Sector Winners & Losers in 2025

• Tech and AI outperformed; while energy and real estate lagged.
• Long-term view matters: Don't overreact to short-term sector underperformance, especially for retirement-focused investors.
  • Quote: “That's kind of the exact opposite response to have, especially if you're investing for the long term...” — Alana (06:14)

4. Market Predictions for 2026: Stay Boring

• No Predictions: Even professionals can’t reliably forecast markets.
• Passive, Diversified Investing: Remain disciplined—set an allocation, hold a broad mix, and don’t tinker.
  • Alana: “Active investing over the long term simply underperforms the market. The best thing to do is to have a well-diversified portfolio and not mess with it and just let it grow over time. It's boring, but it's true.” (07:16)
  • Elizabeth: “I love boring when it comes to my investments.” (07:45)

Actionable Investing Steps for 2026

1. Yearly Investment Checklist (10:20)

• Maximize Employer Benefits: Get 401(k) matches if available.
• IRA Contributions: 2026 limits—$7,500 (below age 50), $8,600 (50+).
• 529 College Savings: Consider if you’ve had children.
• Annual Rebalancing: Adjust your stock/bond split as you age or your risk tolerance changes.
  • Example: Move from 90/10 to 85/15 stocks/bonds as retirement nears.

2. Beware of Active Trading & Tax Implications (12:33)

• Dangers of Chasing Hype: Avoid over-concentrating in favorite or “hot tip” stocks.
• Tax Consequences: Gains from frequent trading are taxable—plan and set aside for tax bills.
  • Quote: “If you open an investment account on an app... you'll likely need to pay taxes on the gains... So make sure you know how much tax you're going to need to pay on the profit and then set that aside...” — Alana (12:33)

3. Choosing the Right Investment Platform (13:26)

• Assess Your Needs:
  • Type of account (e.g., Roth IRA, SEP IRA, standard brokerage).
  • Management preference—self-directed, robo-advisor, or full service.
  • Compare using tools like NerdWallet’s “at a glance table.”
  • Alana’s tip: Focus first on account type and management style before being swayed by flashy app features.

Top Investing Products of 2026 (15:11)

• Review Process: Each year, the NerdWallet team spends “a crazy number of hours” analyzing, stress-testing, and comparing investment platforms using a robust rubric.
  • Quote: “We look at tons of factors... but we also download the apps, we check out the trading platforms, and we see how they function.” — Alana (15:11)

2026 “Best Of” Winners (16:22)

• Best for Beginners & Best Investment App: Fidelity
  • User friendly, intuitive, suitable for a wide range of investors.
  • Alana: “I even use it myself. I have to work pretty hard to come up with a downside for it.”
• Best for Advanced Investors: Interactive Brokers
  • Powerful features, advanced data, and flexibility for experienced traders.
• Best Robo Advisor for Portfolios: Wealthfront
  • Broad ETF selection, portfolio customization, automated bond management.

Final Advice & Notable Quotes

• Get started, don’t overthink: “Meet yourself where you are and if you're thinking about getting started with investing, just do it. Just rip the band aid off... it is one of the best ways that you can take care of your future self.” — Alana (17:31)
• Use tools for motivation: NerdWallet’s investing calculator can help visualize potential long-term gains. — Sean (17:50)
• Check out NerdWallet’s Best Of Awards: nerdwallet.com/awards (18:11)

Notable Quotes

| Speaker | Quote | Timestamp | | -------------- | ------------------------------------------------------------------------------------------------------ | ---------- | | Alana Benson | "Just because you think you know how it's going to go, you almost never do." | 03:43 | | Sean Pyles | "The S&P 500 is almost more of an S&P 7 because of how heavily weighted growth has been..." | 05:24 | | Alana Benson | “If your portfolio is very tech heavy... diversify outside that industry. There are lots of funds..." | 04:33 | | Alana Benson | "The best thing to do is to have a well-diversified portfolio and not mess with it... It's boring..." | 07:16 | | Elizabeth Ayoola| "I love boring when it comes to my investments." | 07:45 | | Alana Benson | “If you open an investment account on an app... you'll likely need to pay taxes on the gains...” | 12:33 | | Alana Benson | “Meet yourself where you are and if you're thinking about getting started with investing, just do it.” | 17:31 |

Timestamps for Important Segments

• 2025 Market Recap & AI Bubble Risks: (02:45-05:24)
• Diversifying Beyond Big Tech: (05:24-06:55)
• Should You Try to Time the Market? (06:55-08:24)
• Actionable Investment Checklist for 2026: (10:20-11:55)
• Active Investing & Taxes: (12:33-13:26)
• How to Choose the Right Investing Platform: (13:26-14:51)
• Top Investing Products & Review Process: (15:11-16:22)
• 2026 Best Of Winners: (16:22-17:23)
• Encouragement for New Investors: (17:31-17:50)

Tone & Style

Throughout, the conversation is friendly, encouraging, and down-to-earth, with a recurring emphasis on “boring is good,” and the importance of staying the course, diversifying, and not chasing fads. The hosts and guest aim to demystify investing for listeners at all stages, using relatable anecdotes and transparent, research-driven recommendations.

For a successful 2026: Diversify, automate where possible, review your risk, keep fees low, and remember—the best financial move is the one you actually start.