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Yahoo
6 days ago
- Business
- Yahoo
In tax and tariff unknowns, experts see opportunity for advisors
Even after the biggest May jump in 35 years for the S&P 500, investors' understandable confusion about the future of tax and tariff policies and inflation is driving a lot of anxiety. The S&P's value ended up 6% last month, alongside a 4% gain in the Dow and 10% surge in the Nasdaq index — a stark reversal from the steep losses surrounding President Donald Trump's announcement of substantial tariffs, which he later paused for 90 days. Financial advisors' expectations for the economy, as reported in Financial Planning's Financial Advisor Confidence Outlook survey, turned slightly less negative after an all-time low score in April. Beyond questions of how potential tariffs might affect inflation, the One Big Beautiful Bill Act is drawing scrutiny as the major tax and spending legislation heads from the House to the Senate. Concerns include who stands to benefit and who will lose out, and the bill's ramifications to the federal budget deficits and the national debt. Many high net worth and ultrahigh net worth clients who work with David Lesperance, the founder of immigration tax and law advisory firm Lesperance & Associates, are already seeking to get "all the pieces in place and all the planning done" with an eye toward "maximizing optionality to be able to deal with the unpredictable," he said. "They just don't know, so the key is to be prepared for any contingency and to be able to execute quicker than the legislature, which is generally possible." READ MORE: Trump's tax bill offers wins — and a major loss — for advisors In the case of Lesperance's ultrawealthy clients, that means taking steps as drastic as seeking residency outside of the country and offshore citizenship in anticipation of a recession next year and the political pendulum swinging back toward Democrats, who might adopt taxes on unrealized gains or that target billionaires or millionaires. Other investors may be acting toward much more immediate needs or even from a sense of panic. Out of 373 retirees polled between March 25 and April 17 as part of the Schroders 2025 US Retirement Survey, 92% said they are worried that inflation will reduce the value of their assets, 62% admitted they have no idea how long their savings will last and almost half said their expenses in retirement are higher than they expected, said Deb Boyden, the firm's head of U.S. defined contribution. For many retirees, the "stress of uncertainty is an everyday battle" rather than "just economic theory," Boyden said in an email. "While advisors and clients can't control Washington, they can control how they respond," Boyden continued. "Sticking to a financial plan, staying invested through market cycles, and resisting the urge to make emotional decisions are all variables within their control. Periods of heightened uncertainty present an opportunity for advisors to deepen relationships by communicating with clients more frequently to help them reassess goals, understand allocations and feel more confident in their strategy. Our data shows that many retirees are without a plan or professional guidance — this void is an opportunity for advisors." READ MORE: SALT, tips and auto loans: A guide to the House GOP tax bill Those retirees and other investors are struggling to find answers that aren't even clear to some of the top experts trying to figure out the form and implications of taxes and tariffs in the future. Ongoing court cases have placed the basic legality of some of the administration's tariffs under multiple levels of judicial review, and that could affect the fiscal price of the tax and spending legislation. The bill is facing substantial criticism over, among other things, its price tag adding $3 trillion to the national debt over a decade, just after a downgrade to the U.S. government's credit rating by Moody's Investors Service. But the bill garnered enough support to pass the House by one vote and the backing of influential groups like the pro-business U.S. Chamber of Commerce, which is financing an advertising campaign that calls on lawmakers to vote for "securing permanent tax relief for America's families, workers and entrepreneurs." However, in an indication of the complexity of the current political environment, the Chamber also refers to the prospect of tariffs as a "new tax on summer fun." The outlook has grown so blurry that David Kelly, the chief global strategist of JPMorgan Asset Management, compared investors' task of figuring out next steps to the challenge of five argumentative siblings putting together a 1,000-piece puzzle. "Despite political tensions, ongoing policy changes and heightened inflation and recession concerns, 2025 so far has generated positive returns for investors, with the S&P 500 and the bond markets registering small gains and international stocks posting much larger increases," Kelly said in a June 2 note. "This is no time for complacency, however. The outlook for the economy is for just slow GDP growth, smaller job gains and temporarily higher inflation. This should translate into sticky interest rates, decelerating earnings growth and a falling dollar. At the start of the year, given valuations and portfolio concentration, it made sense for investors to rebalance away from U.S. mega-cap growth stocks and towards more defensive U.S. stocks, international equities and alternatives. Five months into the year, while the macro jigsaw remains complicated, the same advice seems warranted." READ MORE: Tax Cuts and Jobs Act expiration: A guide for financial advisors As for the tax and spending bill, President Trump's Republican allies in the Senate have discussed a possible goal of passing the massive legislation by July 4. But voting the legislation through the Senate could prove difficult, according to Jonathan Traub, a managing principal and the leader of the Tax Policy Group at consulting and professional services firm Deloitte Tax. "For both policy and procedural reasons, we can expect changes to the current legislation," Traub said in a statement after the House passage of the bill last month. "It will remain a tremendous challenge for Republican leaders to keep near unanimity among their members given the push and pull on so many major components of the bill." Provisions of the bill as wide-ranging as the level of tax brackets and states' ability to regulate artificial intelligence and as narrow as a new levy on international remittances and shifts in the rules for expenses eligible to be paid through 529 savings plans will receive close scrutiny in a Senate debate that could extend far beyond Independence Day. Advisors and their clients may need to plan for multiple different outcomes in the interim. "There's a whole bunch of opportunity, but in order to do that you need to get a whole bunch of planning in place," Lesperance said. "It's very interesting on the planning side, but people are scrambling, and they're making educated bets."
Globe and Mail
6 days ago
- Business
- Globe and Mail
Seneschal Family Office Highlights Importance of Comprehensive Financial Advisory Services in Tacoma, WA
Tacoma-based Seneschal Family Office educates local consumers on choosing qualified financial advisors Seneschal Family Office, a leading provider of comprehensive financial advisory services in Tacoma, Washington, recently highlighted the importance of selecting trusted and knowledgeable financial advisors. By focusing on transparent, objective financial planning and wealth management guidance, the firm seeks to empower consumers with accurate information to support their critical financial decisions. Consumers frequently search online using terms like "Financial Advisor Tacoma WA" and "Financial Advisor Near Me," underscoring a growing local demand for experienced advisory professionals. Seneschal Family Office emphasizes that individuals and families seeking to build, manage, and preserve wealth can greatly benefit from personalized, expert financial advice. In response, the company continues to offer educational resources and information aimed at helping consumers identify essential qualifications, experience levels, and services suitable for meeting their financial goals. Finding the right financial advisor can be a challenging process, and informed decisions rely heavily on thorough understanding and evaluation of professional credentials, services, expertise levels, and reputations. It is generally accepted within the industry that effective financial advisory relationships are built on clarity, transparency, and a comprehensive understanding of clients' long-term financial objectives and aspirations. Seneschal Family Office's mission aligns closely with industry best practices as the firm tailors advice for high-net-worth individuals, families, and business professionals seeking holistic, objective fiduciary guidance. A key factor consumers consider when selecting "Financial Advisors Tacoma WA" is the advisor's capacity for in-depth strategic planning that complements personal, professional, and lifestyle goals. Seneschal Family Office acknowledges that comprehensive financial planning involves wealth management strategies, retirement planning, tax efficiency, estate planning, investment management, and charitable giving strategies. It is broadly understood in financial markets that individuals who receive qualified financial advice are better positioned towards achieving sustainable financial security over the long-term. Seneschal Family Office regularly spotlights financial literacy and the importance of informed decision-making among Tacoma area residents. As local households increasingly seek financial advisory professionals who prioritize customized strategies, the relevance of fiduciary responsibility and investment objectivity remains paramount. The company's approach emphasizes long-term relationships built around tailored financial planning to meet evolving client needs. Through its commitment to educational outreach, Seneschal Family Office encourages Tacoma residents considering financial advice to understand thoroughly each financial advisor's services, transparency of fee structure, experience levels, and advising methodology. In particular, the company highlights the advantages individuals and families can find by selecting local financial advisory teams deeply familiar with the unique economic factors shaping wealth management demands in Tacoma and surrounding communities. Seneschal Family Office clearly communicates who they serve, including high-net-worth families, executives and business owners in the Tacoma region, outlining their professional capabilities on their website page: The firm's client-centered model seeks to align financial planning with personal priorities and evolving financial goals. In addition, Seneschal Family Office supports transparency through detailed descriptions of how they serve their clientele, including personalized wealth management, fiduciary financial planning, and related strategies. More information specifically describing the firm's services can be found at: Presenting transparent information reinforces trust and highlights the company's commitment to integrity and objectivity in all client interactions. According to widely recognized financial studies observed within the industry, working with trusted fiduciaries enhances an individual's financial situation due to the advisor's commitment to transparency and neutrality. Seneschal Family Office aligns its ongoing efforts with industry-recognized standards by prioritizing objectivity, individualized client attention, disciplined investment management, and comprehensive long-term financial planning. The Tacoma-based financial advisory firm remains dedicated to proactively guiding consumers toward informed financial decision-making, emphasizing reliable information and fiduciary advice backed by transparent processes. Seneschal Family Office advises those actively searching for "Financial Advisor Near Me" or "Financial Advisor Tacoma WA" to prioritize experience, fiduciary commitment, transparency, responsiveness, and long-term objective service approaches when selecting a financial advisory partner. About Seneschal Family Office Seneschal Family Office, headquartered in Tacoma, WA, provides comprehensive fiduciary financial advisory and wealth management services tailored specifically for high-net-worth families, executives, and business owners. The firm's rigorous approach to financial planning integrates retirement preparation, wealth management, estate planning strategies, charitable giving advice, tax-efficient solutions, investment management, and more to support long-term objectives. Recognized locally for its disciplined approach and objective fiduciary services, Seneschal Family Office remains committed to transparent, client-centered financial advising. Media Contact Company Name: Seneschal Family Office Contact Person: Tania Email: Send Email Country: United States Website:
Yahoo
24-05-2025
- Business
- Yahoo
The 20 metro areas where financial advisor income jumped the most
Labeling the financial advisor profession and the wealth management industry as "Wall Street" as a shorthand is largely a misnomer, at least geographically speaking. That's because the business is playing out in every area of the country, and the U.S. cities and towns with the biggest growth of median annual advisor income — a proxy for their firm's rise in yearly revenue — are far from New York's Financial District. In the ranking below based on an analysis of U.S. Bureau of Labor Statistics data by advisor lead generation and client matchmaking service SmartAsset, the off-Wall Street metropolitan areas of Spartanburg, South Carolina; Monroe, Louisiana; and Boise, Idaho took the top three spots. Industry experts are quick to point out that the Labor data isn't as precise with its definition of "personal financial advisors" as the firm- and name-specific numbers supplied through regulatory registrations. However, those sets include little to no information about compensation, which is key to industry business metrics, the fight for top advisor talent and M&A deals. And dealmakers whose job entails the identification of new geographic markets say every U.S. area can foster profitable advisory practices. Westlake, Ohio-based registered investment advisory firm Prosperity Capital Advisors spans more than 60 offices across the country, CEO Jason Smith noted. Last month, Greenleaf Book Group published Smith's latest book, "The Rainmaker Multiplier: How to Create a Self-Sustaining, Scalable Financial Planning Business." Some may think that advisors in New York and California will generate the biggest revenue and income, but "that's just not the case," Smith said. Success comes down to "the entrepreneur that is leading that firm," he said. "They're able to surround themselves with people who can handle everything that needs to be handled within a firm or within a business," Smith added. "It's all about whether that firm owner is really focused on people, focused on process and then, ultimately, that's going to give you the platform and the ability to grow." Bearing those caveats in mind, the SmartAsset study presented data that advisors and wealth management firms could use "to steer their own business, hiring, marketing and lead generation strategies," according to its author, SmartAsset Director of Economic Analysis Jaclyn DeJohn, who also recently examined the role of colors in industry branding in a piece for Financial Planning. Geographic data presents some noise, depending on how Labor's definition may have captured more or less advisors in a given area between this and last year, and no shortage of murkiness about any conclusions to be drawn. "The vast differences among local economies in the United States mean some metro areas and states offer more and better opportunities for financial advisors looking to grow their businesses," DeJohn wrote. "And with increasing remote capabilities, some advisors may be able to take advantage of the opportunities in some communities while living elsewhere." Besides the listing below, here are some of the other interesting takeaways from the study: At 42%, Lafayette, Louisiana, sustained the largest decrease in median advisor income, followed by Winchester, Virginia-West Virginia (37%), and Tulsa, Oklahoma (36%). Three towns in Arizona — Sierra Vista-Douglas ($48,220), Yuma ($48,780) and Lake Havasu City-Kingman ($49,160) — had the lowest median advisor pay in 2024. But that's probably because the Labor data counted at least 15% more advisors in each metro area last year. Advisors in Boise ($167,940), Barnstable Town, Massachusetts ($135,000), Pittsfield, Massachusetts ($132,170), Utica-Rome, New York ($129,930) and Winston-Salem, North Carolina ($129,570) earned the highest median income last year. Statewide data was only available for 43 states, but advisor income climbed the most in Idaho (44%), Michigan (40%) and Kansas (29%) and was the highest overall in New York ($167,970), Idaho ($136,440) and California ($128,650). At $67,210, Utah had the lowest annual advisor earnings, followed by Oklahoma at $73,020, which had the biggest drop from the prior year of any state at 29%. Scroll down the slideshow to see the 20 metropolitan areas where advisors reeled in the largest increases in median income in 2024. For a look at the rankings for the prior year, click here. To view a ranking of the states that netted the biggest gains in the number of certified financial planners last year, follow this link. Note: The below rankings are based on a report by SmartAsset called "Where Financial Advisor Income Grew Most – 2025 Study." The study crunched the numbers for 219 towns and cities examined in the data on the "personal financial advisor" profession from the U.S. Bureau of Labor Statistics for the last two years and ranked each place by the percentage increase in median income between 2023 and 2024. % change in median annual income: 71%Median advisor income in 2024: $126,600Median advisor income in 2023: $73,940 % change in median annual income: 64.3%Median advisor income in 2024: $93,470Median advisor income in 2023: $56,900 % change in median annual income: 63.9%Median advisor income in 2024: $167,940Median advisor income in 2023: $102,460 % change in median annual income: 60%Median advisor income in 2024: $59,620Median advisor income in 2023: $37,370 % change in median annual income: 58%Median advisor income in 2024: $129,500Median advisor income in 2023: $81,960 % change in median annual income: 57.7%Median advisor income in 2024: $126,530Median advisor income in 2023: $80,220 % change in median annual income: 47%Median advisor income in 2024: $83,240Median advisor income in 2023: $56,790 % change in median annual income: 45%Median advisor income in 2024: $89,020Median advisor income in 2023: $61,290 % change in median annual income: 44%Median advisor income in 2024: $102,500Median advisor income in 2023: $71,320 % change in median annual income: 40%Median advisor income in 2024: $112,050Median advisor income in 2023: $80,010 % change in median annual income: 38.5%Median advisor income in 2024: $110,870Median advisor income in 2023: $80,080 % change in median annual income: 38.1%Median advisor income in 2024: $89,440Median advisor income in 2023: $64,750 % change in median annual income: 37.6%Median advisor income in 2024: $75,670Median advisor income in 2023: $55,000 % change in median annual income: 37.5%Median advisor income in 2024: $91,970Median advisor income in 2023: $66,880 % change in median annual income: 35%Median advisor income in 2024: $99,520Median advisor income in 2023: $73,700 % change in median annual income: 34.5%Median advisor income in 2024: $100,990Median advisor income in 2023: $75,100 % change in median annual income: 33%Median advisor income in 2024: $90,810Median advisor income in 2023: $68,070 % change in median annual income: 32.8%Median advisor income in 2024: $74,680Median advisor income in 2023: $56,220 % change in median annual income: 32.1%Median advisor income in 2024: $102,560Median advisor income in 2023: $77,650 % change in median annual income: 31.8%Median advisor income in 2024: $94,770Median advisor income in 2023: $71,910
RNZ News
14-05-2025
- Business
- RNZ News
Personal finance: do you have savings for a rainy day ?
Photo: NICK VEASEY/SCIENCE PHOTO LIBRAR The Retirement Commission's Money Month theme this year is the importance of Emergency Savings - the idea of having a bit aside for the unexpected. Kathryn speaks with money expert David Boyle, who says for many it is very difficult to save, but it is an important way to smooth-out life's little or medium financial emergencies. David Boyle is the General Manager of Kiwisaver for Fisher Funds and was previously with Mint Asset Management and the Commission for Financial Capability. This discussion is of a general nature and does not constitute financial advice.
Yahoo
10-05-2025
- Business
- Yahoo
I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts
If you're a boomer who's wondering how much money you should keep in your checking account, you're in the right place. The short answer is that it's important to have enough money on hand — or easily accessible in a checking account — to cover your day-to-day expenses, automatic payments and maybe a few small emergencies. It doesn't necessarily matter how old you are either. Having that money in your account can provide you with a sense of financial security as you go about your daily life. Read Next: Explore More: But how much money is enough — and how much is too much? Here's what financial planning experts, Barbara O'Neill and Adam Puff, told us. 'You should have six months of expenses in your checking account,' said Adam Puff, president and founder of Haddonfield Financial Planning. 'This is certainly more important when you are working and dependent on a paycheck.' This general rule of thumb applies to nearly everyone, said Puff, regardless of age. But for boomers especially, it might be wise to keep at least this much money in a checking account so they're prepared for any unexpected expenses and don't have to withdraw from their investments. 'With regard to boomers, they may not want to liquidate assets or retirement assets if an emergency arises,' said Puff. 'That said, nobody can time the market,' he added, 'so having a cushion may well give you the time you need to be more selective in what assets you need to sell to meet an unexpected expense or at the very least, buy you some time.' Be Aware: While keeping about six months' worth of living expenses in a checking account is a good guideline, boomers might want to allocate the majority of that money into a savings account instead. That way, they can capitalize on the interest earned while retaining easy access to it in case of emergencies. 'According to the Federal Deposit Insurance Corporation — or FDIC — the average interest rate for checking accounts as of May 8, 2025 was 0.07%,' said Barbara O'Neill, Ph.D., a certified financial planner and expert contributor for 'By contrast, the best high-yield online savings accounts were paying a 4.25% to 5% APY — annual percentage yield — in early May or over 50 times more what checking accounts pay,' she continued. 'Given this big difference in APYs between checking and savings accounts, it is best to keep only the amount needed to pay household bills in a checking account.' She also shared that this amount depends on the baby boomer household. For example, O'Neill said, 'If more money is direct deposited into their checking account than is actually needed for expenses — via a pension, Social Security, a job, required minimum distribution withdrawals, etc. — it should be transferred to savings.' 'I think the boomer generation still has a little bit of the Great Depression era hanging over them and are certainly more inclined to have a safety net, even if it's a larger than it should be,' said Puff. 'That means for many boomers, the amount of funds in their checking account is often too large.' The problem with this is that even checking accounts with a higher yield usually don't pay as much as they could. Depending on the interest rate, it might be wiser to check out investment firms — like Fidelity or Vanguard — or online banks to compare options. The money might be less accessible when it's wrapped up in investments, but it can grow more quickly. 'If you have too much cash, you should think about where you are keeping it so your cash is earning its maximum potential,' said Puff. But don't neglect your safety net. 'This world seems to be getting crazier and having cash on hand can save a lot of headaches from unforeseen issues,' he continued. 'For the boomer generation, those emergencies are more likely to be medical or involve their children or grandchildren. You don't want to be caught short if it involves your family or your health, which is why I circle back to recommending reserves of at least six months of expenses.' Tracking your expenses at any age is a good idea, but it's especially important if you're nearing your retirement years — or have already retired — and every dollar counts. Knowing how much you spend can also help you decide how much you actually need in your checking account. 'Baby boomers — and adults of all generations — need to have enough money in their checking account to pay their monthly bills,' said O'Neill. Tracking household expenses for a month or two can help determine this amount, he added. 'Be sure to include the monthly prorated amount for occasional expenses such as auto insurance premiums, vacations and property tax bills.' Say your average monthly expenses add up to $3,000. You should ideally have $18,000 in checking — or split between your checking and savings accounts. There's no need to be so exact when it comes to your six months' worth of expenses goal. If anything, it's better to err on the side of caution and add a little extra to account for bills that might change, like insurance premium changes. 'A modest 'fudge factor' is also a good idea,' said O'Neill. 'For example, if monthly bills total $3,200, aim to keep a balance of $3,500.' Or if you're keeping the full amount in checking, that $3,500 should actually be $21,000. Don't forget to account for any account balance minimums. This shouldn't be too difficult when working with such large sums, but it's still worth keeping in mind that banks often charge a fee when your balance falls below a certain threshold. 'Checking account owners must be careful not to fall below the balance required by their bank to avoid an account maintenance or service fee,' said O'Neill. According to O'Neill, this amount and how it is determined vary by financial institution and may be based on a minimum daily balance, average daily balance or linked balance between checking and savings accounts. Everyone's situation is different, so while some boomers might want to follow the six-month rule, others might be fine with a smaller amount. At the same time, some boomers might determine they need more money in checking — or that they're better off allocating their money across different types of accounts. 'It really depends on your needs and your goals,' said Puff. 'While of course you need to provide for yourself and your spouse, you may have additional goals such as a scholarship fund, charitable contributions, faith-based donations, leaving a legacy for your children and grandchildren and so on.' Take the time to figure out what you need, and don't be afraid to adjust the amounts based on your goals, expenses and comfort level. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines This article originally appeared on I'm a Financial Planning Expert: Here's How Much Money Boomers Should Have in Their Checking Accounts
