Happy New Year 2026 to all! With another year behind us, I thought I would reflect on 2025 so I can reminisce warmly in my old age. Overall, I rate the year an A for effort, which is the only aspect I can truly influence. Sadly, the outcome didn’t align with the effort, leading me to give it a B minus, perhaps even a C plus.
The primary factor for the B minus is the persistent family issues that adversely impacted my mood. I am inherently a cheerful and positive individual – typically a steady 8 out of 10. However, throughout much of the year, I felt an abundance of gray clouds and rainy days looming over me.
The reality is, even when you’re feeling joyful, when someone within your family is struggling, your own happiness will inevitably wane. From challenges like aging to managing children and caring for ill parents, the happiness decline for the sandwich generation is significant.
### Entering The Trough Of The Happiness Curve
Just take a look at this informative chart encapsulating seven key surveys of 1.3 million randomly selected individuals across 51 countries. Happiness reaches its lowest point between ages 45 and 55 – and my wife and I are currently 45 and 48.
I composed this post prior to researching happiness curves to assess our situation. It’s reassuring to know we’re not the only ones experiencing this.
Yet, I truly believed I could sidestep this trough by retiring sooner. In fact, I penned a post claiming [the greatest reason to retire early is enhanced happiness](https://www.financialsamurai.com/best-reason-to-retire-early-years-of-greater-happiness/) for a longer period. That phase lasted about 11-12 years, but it has since diminished.
2025 made me realize once more how money cannot purchase happiness after fulfilling basic needs. I found it frustrating this year that, despite my best efforts, the melancholy persisted.
It’s disheartening to acknowledge that even if you reside in a lovely home, carry minimal debt, maintain good health, don’t feel trapped at work, and have happy children, you can *still* experience sadness at times. This disconnect feels particularly humiliating, especially for those who grew up in developing nations rife with poverty and inequality.
We are all aware of the remedies: practice daily gratitude, take steps to [eliminate regrets](https://www.financialsamurai.com/life-passing-by/), engage in daily walks and exercise, curb desires, and temper expectations. However, aside from consistently showing up, there are moments when external circumstances are beyond your control.
Now, let’s delve into my review of 2025, categorized by Investments, Family, and Creative Endeavors.
### Public Investments – Grade A
Overall, 2025 proved to be a solid financial year thanks to yet another bull market. My total public equity portfolio surged by approximately 23%. The cause for the 6% outperformance relative to the S&P 500 was my heavy investment in Google, Tesla, and Nvidia. Conversely, my shares in Apple, Amazon, and Nike underperformed compared to the S&P 500.
This marks three consecutive years of 20%+ returns, which feels akin to winning the lottery after a challenging 2022 (-24% for my tech-centric equities). The after-tax gains alone could support about **four years of standard living expenses** for a family of four here in San Francisco.
The downside of a 23% return is that it required *significant effort* to achieve as an [active investor](https://www.financialsamurai.com/the-recommended-split-between-passive-and-active-investing/). Honestly, I believed I had yielded even more before calculating the actual figures.
Had I merely invested all my funds in an S&P 500 index and refrained from any action, I would have made approximately 16.5%. I am uncertain if the effort for an additional 6% is justified, particularly since I could have easily lagged behind. Yet, I remain proactive as a substantial amount is at stake as [DUPs](https://www.financialsamurai.com/dual-unemployed-parents-dups/) without a consistent active income.
Navigating through the volatility following the April tariff tantrums, along with the constant questioning of whether the economy would truly stabilize amid [stagflation fears](https://www.financialsamurai.com/stagflation-is-worse-than-a-recession-heres-how-to-prepare/), took a toll on my mental resilience. However, I must acknowledge that a ~6% outperformance has provided us with a little over a year’s worth of living expenses. I just need to be cautious not to incur significant losses this year.
### Private Investments – Grade A Minus
Regarding my private investments in venture debt and venture capital, it’s more challenging to assess returns since so