March 17th 2026

Issue Synopsis

January brings elevated interest rates, higher retirement contribution limits, and continued caution for homebuyers.

Office Locations In addition to meeting online, we're still meeting on the west side of Lansing and Okemos.
Market Update The market at a glance.
Home Sales Update Homebuyers continue to cancel contracts at higher rates than last year, reflecting both market selectivity and affordability challenges.
US Debt & Interest Rates The Fed recently maintained its key policy rates, while long-term Treasury yields remain influenced by upcoming debt maturities.
Retirement Plan Contributions 2026 contribution limits for 401(k)s and IRAs have increased, with new rules affecting high-income catch-up contributions.
Scam Alert Note Investors should continue to monitor scams targeting seniors and phishing schemes, which remain widespread.

A Note from Larry

Office Locations

I'm happy to confirm that Park Lake Advisors continues to serve clients from both our Okemos office and our West Side location as well as through Zoom meetings. Please note that our West Side office has moved and is now conveniently located across the street from Frank’s Press Box on Saginaw Highway.

You can find the most up-to-date addresses and directions for both offices at our link.

Market Update (In Plain English)

Signals in the Noise: AI, Energy, & Policy

Despite soaring demand, massive AI expenditures and recent profit-taking have sparked volatility in the tech sector. While software stocks have dipped, fears of AI displacement appear exaggerated; we view AI as a tool for efficiency rather than a threat to established firms.

Beyond the tech sector, global uncertainty remains elevated due to the emergence of war in Iran. This geopolitical instability has contributed to broader market volatility but has also been a key driver for the energy sector, which, along with industrial, has generated double-digit returns year-to-date.

On the policy front, the Supreme Court recently struck down the "Liberation Day" tariffs enacted under the IEEPA. While the administration remains committed to its trade strategy, future tariff actions will likely be more limited in scope and require more formal investigations to implement.

Finally, we are monitoring the private credit sector. Rapid growth combined with limited transparency makes this an area to watch as economic growth moderates, though it currently does not present a major systemic risk.

As always, we are honored to help you navigate your financial journey. Please reach out if you would like to discuss these trends or review your portfolio.

In The News: What It Means For You

Why More Homebuyers Are Backing Out of Deals

New data shows that U.S. homebuyers are canceling signed purchase agreements at the highest rate in nearly a decade. In December 2025, more than 40,000 home-purchase contracts were canceled, about 16.3% of all homes under contract that month, the highest rate on record for December since Redfin began tracking the data in 2017.

Experts say this trend reflects greater selectivity among buyers who now have more inventory to choose from and are unwilling to move forward if pricing, inspection findings, mortgage costs or other conditions aren’t favorable. In some markets like Atlanta, Jacksonville, and San Antonio, cancellation rates exceeded 20%.

While high cancellation rates can make it harder for sellers to close deals, the trend also suggests a shift in market dynamics as buyers seek better deals and affordability gradually improves in 2026.

Why U.S. Debt Matters for Interest Rates

One important factor influencing today’s interest rate environment is the amount of U.S. government debt coming due. Roughly $9 trillion in U.S. Treasury debt is scheduled to mature in 2026, representing close to one-third of all outstanding Treasury debt. Much of this debt was originally issued 10–20 years ago, when interest rates were significantly lower than they are today.

As this debt matures, it must be refinanced at current rates, which increases borrowing costs for the federal government and adds pressure to long-term interest rates. At the same time, persistent federal deficits continue to expand the amount of new debt being issued.

Global dynamics also play a role. Shifting trade relationships, ongoing tariff tensions, and geopolitical uncertainty have contributed to concerns among some international investors. As a result, there is an ongoing discussion about whether global central banks and large institutions may gradually reduce their reliance on U.S. Treasurys and the U.S. dollar over time.

While these developments don’t signal immediate change, they help explain why interest rates may remain elevated and why markets remain sensitive to inflation, fiscal policy and global demand for U.S. debt. For investors, this underscores the importance of diversification, thoughtful planning and maintaining a long-term perspective rather than reacting to headlines.

Retirement Plan Contribution Limits for 2026

The IRS has released the updated contribution limits for 2026, and there are a few important changes retirees and savers should know about as they plan for the year ahead.

For most workplace plans like 401(k)s, 403(b)s and government 457(b) plans, the annual employee contribution limit increases to $24,500, up from $23,500 in 2025. Individuals under age 50 can defer this amount on a pre‑tax or Roth basis, depending on their plan options.

Those age 50 and over can make additional “catch‑up” contributions - now up to $8,000 (up from $7,500 in 2025) - giving many older savers even more room to put money toward retirement. For participants between ages 60 and 63, that limit can be even higher if your plan allows it, helping maximize savings as retirement nears.

There’s also a notable change for higher earners: under rules from the SECURE Act 2.0, if you earned more than approximately $150,000 in the prior year, any catch‑up contributions you make in 2026 will generally need to be designated as Roth (after‑tax) contributions. That means you pay the tax now and benefit from tax‑free growth and withdrawals later, rather than taking an upfront deduction as you might have in the past.

In addition to 401(k) changes, IRA contribution limits increase to $7,500 for 2026, and traditional rules for health savings accounts and other retirement vehicles have also been adjusted for inflation.

These updates give many savers a bit more flexibility and opportunity to put more toward their retirement goals in 2026. They’re worth reviewing now as you consider your savings strategies for the year ahead.

Scam & Fraud Watch

Scam & Fraud Watch: Seniors Still at High Risk

Scammers continue to target older Americans with a wide variety of schemes, taking advantage of larger savings, trust in authority figures and increased use of digital communication. Recent reporting highlights that seniors are actively being approached through phone calls, email and online ads promising false deals or urgent outcomes - often with convincing details designed to deceive.

Common tactics include fraudsters posing as government officials, financial institutions or even fake real‑estate sellers, sometimes using stolen logos and contact information to appear legitimate.

The risk is not isolated: complaints from older residents have risen significantly in some areas, with regulators reporting double‑digit increases in scam and fraud reports year over year and millions in losses.

Here are a few ways to stay vigilant:

Pause before you act. Don’t respond out of urgency or pressure.
Verify independently. If a call or email claims to be from a trusted source, contact them directly using known phone numbers or official sites, not links provided in the message.
Protect personal information. Never give out Social Security numbers, account credentials or other sensitive data in unsolicited conversations.
Ask a trusted friend or family member before sending money or agreeing to unusual requests.
Being informed and cautious can help protect loved ones from increasingly sophisticated scams.