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Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Asset Management vs. Wealth Management
What is asset management? Asset or investment management focuses primarily on maintaining your portfolio, according to Jaime Eckels, a CFP (certified financial planner) and partner at Plante Moran Wealth Management. 'Asset management is really about the portfolio and what's in it,' Eckels says. 'How much of the portfolio is stocks and bonds? Do you add real estate exposure with a real estate investment trust? Portfolio management is also about when to buy and sell.' Additionally, asset management heavily emphasizes returns, although portfolio results tend to be mixed, says Michael Finke, Ph.D., a CFP and professor of wealth management at the American College of Financial Services. 'The traditional consumer looking for an asset manager is looking for someone to help them pick investments,' Finke says. 'While asset management can be part of an overall wealth management strategy, just relying on picking investments doesn't add a lot of value to a client hoping for an overall strategy to build and effectively manage their wealth.' What is wealth management? Rather than focusing solely on portfolio performance, wealth management offers a more holistic approach to building and managing wealth. 'Wealth management recognizes that each household has its unique characteristics and different goals for how to use that wealth,' Finke says. 'It's about helping clients identify their values and putting together a plan that takes into account taxes, education savings, charitable giving, estate planning and other important aspects of their financial life.' Eckels adds that wealth management is about using your assets to paint a more comprehensive financial picture. 'Wealth management is about more than returns,' Eckels says. 'Instead of just looking at maximizing portfolio performance, you're also figuring out how your assets can help you send the kids to school and retire comfortably, while getting help with tax optimization strategies.' Key differences between asset management and wealth management Both Eckels and Finke say that asset management falls under the umbrella of wealth management. 'Asset management has a narrow focus, and it's a piece of the broad wealth management puzzle,' Eckels says. 'A wealth manager can help you with portfolio management as they provide planning services.' Finke says that, overall, the financial professional industry is shifting toward an emphasis on wealth management. 'Managing investments has really become commoditized. You can use a robo advisor to put together an internationally diversified and automatically managed portfolio for less than 10 basis points across the board,' or 0.10 percentage points, Finke notes. 'The real value of wealth management is in the strategy that goes into building a comprehensive financial plan and then helping the client manage the assets so they can reach their goals.' Which service is right for you? To decide whether asset management or wealth management makes sense for you, start by reviewing your objectives. 'If you have a plan and you're comfortable with how you're handling the rest of your finances, and you're looking for someone to manage your portfolio only, an asset manager might make sense,' Eckels says. 'However, if you need more guidance as well as other services, a wealth manager might be a good choice.' Finke adds that a CFP designation is a good credential to look for. However, he also suggests looking for someone with credentials that indicate a knowledge of planning and potentially additional education tailored to wealth management. 'Don't fall into the trap of [focusing too much on] whether you want a financial advisor who can tell you whether Tesla is a good stock,' Finke continues. 'The research shows the real value comes from having an advisor who understands your goals and has the ability, knowledge and experience to help you reach them.' Finally, Eckels recommends understanding what services you're getting and whether they make sense for the price you're paying. When choosing a financial advisor, it's important to set expectations so you get a good value. For example, some asset managers charge based on the number of transactions they complete on your behalf, or they might receive commissions for buying certain funds for your portfolio. That doesn't mean that your portfolio won't see good returns, Eckels says, but it does raise questions about conflicts of interest. 'Understand the services offered and the payment structure. Many wealth managers base their fees on assets under management [AUM], especially if they are helping you manage your portfolio,' Eckels says. 'However, you often get access to planning services, including a team that can help with estate, tax, charitable giving and education planning on top of financial planning and asset management when you choose a wealth manager that uses an AUM model. Some asset managers use an AUM model, but all you get is portfolio management and no other services.' FAQ Can I use both asset and wealth management services simultaneously? Yes, asset management is considered a facet of wealth management. If you have a wealth manager, you likely also have asset management services included. Are asset managers held to fiduciary standards? Not always. Some asset managers are only required to recommend products and services that are suitable for a client, even if they aren't the best possible. A fiduciary financial advisor is required to act in your best interest and must disclose conflicts of interest. How do fee structures differ between asset and wealth managers? Like most financial advisors and professionals, there are different fee structures that both asset and wealth managers can use. Many asset and wealth managers use an AUM model, but there might be other structures. Asset managers in particular might integrate a transaction model or commission model into their pay structure. Some asset managers receive salaries and bonuses based on portfolio performance. What qualifications should I look for in a financial advisor? Consider looking for someone who has extensive experience and education in the specific financial areas you need help with. Find out what characteristics other clients have and look for a financial advisor who helps people in similar situations. How do asset and wealth management services integrate with tax and estate planning? Wealth managers are more likely to consider the tax and estate planning implications of the assets held and the types of accounts used. Asset managers are generally more focused on generating returns than on tax implications or estate planning services.
Yahoo
7 days ago
- Business
- Yahoo
IRS offers $2.895 million settlement with Maple Lawn over COVID-19 funding
COLDWATER, MI — County owned Maple Lawn Medical Care Facility received written confirmation Tuesday, July 22 of a settlement offer of $2.895 million from the IRS of an appeal of COVID-19 grants owed from the Employee Retention Credit program. Director Jayne Sabaitis told her board July 16 if confirmed, she would accept the offer after appealing denial of the original $3.6 million request filed three years ago during the pandemic. The money will help Maple Lawn make up for its current $1.3 million operating deficit caused by reduction in Medicaid funding for the current federal fiscal year. Prior story Maple Lawn to appeal IRS denial of $3.6 million in COVID-19 relief funds Sabaitis told her board she would consult with accountants Plante-Moran. 'We'll be discussing how that's going to affect our cost report. We want to make sure that we keep our expenses so that our Medicaid rate stays the same to make sure the use of the funds would not hurt next year's Medicaid funding," she said. Sabaitis told the board there are some capital projects which were delayed. 'We're not going to take this money and blow it. We want to hold cash as much as we can' with questions about future funding, she said. Related story With a current $1.2 million loss, Maple Lawn faces concerns with federal Medicaid cuts Sabaitis said five other Michigan nursing homes hired Washington legal counsel to sue the IRS over ERC denial. Maple Lawn was a late applicant for ERC funding only learning near the end of the pandemic the non-profit nursing facilities were eligible. The program was created for eligible businesses and tax-exempt organizations that had employees and saw increased costs or losses affected during the COVID-19 pandemic. Subscribe Support local to the Coldwater Reporter Maple Lawn is licensed for 114 beds but fluctuates by staffing. The nursing care and rehabilitation regularly reports over 90% occupancy. Contact Don Reid: dReid@ This article originally appeared on Coldwater Daily Reporter: Maple Lawn to receive $2.895 million ERC program settlement from IRS Solve the daily Crossword
Yahoo
03-07-2025
- Business
- Yahoo
Dow approaches new record and S&P hits all-time high after stronger-than-expected jobs data
Stocks, bond yields and the dollar gained on Thursday after a strong jobs report soothed nerves about how the economy is faring during the early stages of President Donald Trump's tariff campaign. After a shortened trading day in advance of Friday's July Fourth holiday, the Dow closed higher by 344 points, or 0.77%. The broader S&P 500 rose 0.83% and the tech-heavy Nasdaq Composite gained 1.02%. The S&P 500 and Nasdaq closed at fresh record highs. The Dow closed just 186 points away from hitting an all-time high. Stocks had jumped higher in the morning after new data showed the economy added 147,000 jobs in June, exceeding expectations. The unemployment rate ticked lower to 4.1% from 4.2%. The strong headline numbers provided relief for investors who were nervous about a potential slowdown in the economy as the president's tariffs portend to impact business activity. 'The June jobs report is like a summer blockbuster — plenty of action and a surprise twist. Despite tariffs, DC drama and global headwinds, the US labor market just pulled off a better-than-expected performance,' Gina Bolvin, president of Bolvin Wealth Management Group, said in an email. While markets jumped higher, investors also noted caution. The breakdown of job growth showed a less rosy picture, with the private sector showing signs of weakness, according to Jim Baird, chief investment officer at Plante Moran Financial Advisors. 'There was one cautionary note,' Baird said. 'Private sector hiring was fairly weak. So, that's the asterisk that I would put on the report, and something to watch.' Job growth in June was not widespread across sectors. Meanwhile, the average duration of unemployment rose and the share of unemployed workers who have been out of a job for 27 weeks or longer edged closer to a three-year high. 'Businesses are a little bit more hesitant to hire,' Baird said. 'Lots of questions still related to the impact of trade, tariffs and the tax code making its way through Congress. I think there has been a cautious tone on the hiring front that we've been seeing and hearing about for some period of time. And I think that did show up in the numbers this month.' Treasury yields jumped higher as investors dialed back expectations for future rate cuts from the Federal Reserve. The 10-year yield rose to 4.34% and the 30-year yield rose to 4.86%. The US dollar index, which measures the dollar's strength against six major foreign currencies, gained 0.45%. The dollar index was set for its biggest daily gain in nearly two weeks. David Russell, global head of market strategy at TradeStation, said in an email that the June jobs report was 'good news for the economy and corporate earnings because there's no sign of a recession.' 'Uncertainty around tariffs and trade have apparently not spooked businesses into shedding workers,' Jeffrey Roach, chief economist at LPL Financial, said in an email. 'One note of caution: the administration is still actively negotiating details with several major trading partners and the eventual business impacts are unknown.' The Dow, S&P 500 and Nasdaq all closed the week in the green. The labor market continues to prove resilient, which gives the Fed more time to hold rates steady and focus on how inflation is developing. Traders now expect just a 4.7% chance the Fed cuts rates in July, down from a 23.8% chance yesterday, according to the CME FedWatch Tool. The Fed's rate-cutting path has come under increased scrutiny in recent weeks as Trump has continued a tirade against Fed Chair Jerome Powell, lashing out at him for holding rates steady. Some Fed officials in recent weeks had signaled an openness to cutting rates in July. Seema Shah, chief global strategist at Principal Asset Management, said in an email that the June jobs report signals rate cuts in July are likely off the table. 'A few Fed speakers have shown their inclination to cutting interest rates as early as this month. Today's data of higher than expected payrolls, a drop in the unemployment rate and a fall in jobless claims completely dispels their case for imminent rate cuts and implies that there is absolutely no urgency for Fed support,' Shah said. Wall Street was also monitoring developments on Capitol Hill as lawmakers in the House try to pass Trump's 'One Big, Beautiful Bill.' And investors were also keeping an eye out for developments on the trade front. Trump on Wednesday announced a trade deal with Vietnam. 'The stock market is starting off the second half of 2025 on a strong foot, with stocks continuing to make record highs as investors start to price in fading tariff uncertainty and optimism over tax cuts and continued economic resiliency,' David Laut, chief investment officer at Abound Financial, said in an email. Chris Zaccarelli, CIO at Northlight Asset Management, said in an email that while he has been encouraged by the recovery in the stock market in recent months, he is concerned about expensive valuations and the fact that a lot of good news has already been priced in, leaving the market 'more vulnerable to negative surprises.' 'Extreme greed' was the sentiment driving markets, according to CNN's Fear and Greed index. It was the strongest reading in over a year. CNN's Lucy Bayly contributed reporting Sign in to access your portfolio
CNN
03-07-2025
- Business
- CNN
Dow approaches new record and S&P hits all-time high after stronger-than-expected jobs data
Stocks, bond yields and the dollar gained on Thursday after a strong jobs report soothed nerves about how the economy is faring during the early stages of President Donald Trump's tariff campaign. After a shortened trading day in advance of Friday's July Fourth holiday, the Dow closed higher by 344 points, or 0.77%. The broader S&P 500 rose 0.83% and the tech-heavy Nasdaq Composite gained 1.02%. The S&P 500 and Nasdaq closed at fresh record highs. The Dow closed just 186 points away from hitting an all-time high. Stocks had jumped higher in the morning after new data showed the economy added 147,000 jobs in June, exceeding expectations. The unemployment rate ticked lower to 4.1% from 4.2%. The strong headline numbers provided relief for investors who were nervous about a potential slowdown in the economy as the president's tariffs portend to impact business activity. 'The June jobs report is like a summer blockbuster — plenty of action and a surprise twist. Despite tariffs, DC drama and global headwinds, the US labor market just pulled off a better-than-expected performance,' Gina Bolvin, president of Bolvin Wealth Management Group, said in an email. While markets jumped higher, investors also noted caution. The breakdown of job growth showed a less rosy picture, with the private sector showing signs of weakness, according to Jim Baird, chief investment officer at Plante Moran Financial Advisors. 'There was one cautionary note,' Baird said. 'Private sector hiring was fairly weak. So, that's the asterisk that I would put on the report, and something to watch.' Job growth in June was not widespread across sectors. Meanwhile, the average duration of unemployment rose and the share of unemployed workers who have been out of a job for 27 weeks or longer edged closer to a three-year high. 'Businesses are a little bit more hesitant to hire,' Baird said. 'Lots of questions still related to the impact of trade, tariffs and the tax code making its way through Congress. I think there has been a cautious tone on the hiring front that we've been seeing and hearing about for some period of time. And I think that did show up in the numbers this month.' Treasury yields jumped higher as investors dialed back expectations for future rate cuts from the Federal Reserve. The 10-year yield rose to 4.34% and the 30-year yield rose to 4.86%. The US dollar index, which measures the dollar's strength against six major foreign currencies, gained 0.45%. The dollar index was set for its biggest daily gain in nearly two weeks. David Russell, global head of market strategy at TradeStation, said in an email that the June jobs report was 'good news for the economy and corporate earnings because there's no sign of a recession.' 'Uncertainty around tariffs and trade have apparently not spooked businesses into shedding workers,' Jeffrey Roach, chief economist at LPL Financial, said in an email. 'One note of caution: the administration is still actively negotiating details with several major trading partners and the eventual business impacts are unknown.' The Dow, S&P 500 and Nasdaq all closed the week in the green. The labor market continues to prove resilient, which gives the Fed more time to hold rates steady and focus on how inflation is developing. Traders now expect just a 4.7% chance the Fed cuts rates in July, down from a 23.8% chance yesterday, according to the CME FedWatch Tool. The Fed's rate-cutting path has come under increased scrutiny in recent weeks as Trump has continued a tirade against Fed Chair Jerome Powell, lashing out at him for holding rates steady. Some Fed officials in recent weeks had signaled an openness to cutting rates in July. Seema Shah, chief global strategist at Principal Asset Management, said in an email that the June jobs report signals rate cuts in July are likely off the table. 'A few Fed speakers have shown their inclination to cutting interest rates as early as this month. Today's data of higher than expected payrolls, a drop in the unemployment rate and a fall in jobless claims completely dispels their case for imminent rate cuts and implies that there is absolutely no urgency for Fed support,' Shah said. Wall Street was also monitoring developments on Capitol Hill as lawmakers in the House try to pass Trump's 'One Big, Beautiful Bill.' And investors were also keeping an eye out for developments on the trade front. Trump on Wednesday announced a trade deal with Vietnam. 'The stock market is starting off the second half of 2025 on a strong foot, with stocks continuing to make record highs as investors start to price in fading tariff uncertainty and optimism over tax cuts and continued economic resiliency,' David Laut, chief investment officer at Abound Financial, said in an email. Chris Zaccarelli, CIO at Northlight Asset Management, said in an email that while he has been encouraged by the recovery in the stock market in recent months, he is concerned about expensive valuations and the fact that a lot of good news has already been priced in, leaving the market 'more vulnerable to negative surprises.' 'Extreme greed' was the sentiment driving markets, according to CNN's Fear and Greed index. It was the strongest reading in over a year. CNN's Lucy Bayly contributed reporting
Yahoo
03-07-2025
- Business
- Yahoo
Investors choose safe havens, oil over equities as Middle East erupts
By Sinéad Carew and Amanda Cooper NEW YORK/LONDON (Reuters) -U.S. investors on Friday sought refuge in safe-haven assets like the dollar and gold, as oil prices surged after Iran retaliated against Israel's biggest-ever military strike against the major crude producer. Iran launched airstrikes at Israel hours after unprecedented Israeli strikes, stoking some fears of a broader regional conflagration. Explosions were heard on Friday in Jerusalem and Tel Aviv, the country's two biggest cities. Earlier, Israel blasted Iran's huge Natanz underground nuclear site and killed its top military commanders. Investors said the markets would probably muddle through the latest hostilities unless Iranian oil facilities were attacked or other countries are drawn into the war. Worries about possible disruptions to oil shipments prompted crude prices to spike as much as 14%. Oil futures settled 7% higher on the day. "We're entering the next phase of the conflict here with the Iranian response," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Southfield, Michigan. The money manager said he expected "a bit more of a flight-to-quality trade if we see stocks sell off further" and that this could benefit gold and Treasuries. "The question is still how long will this persist? How intense will it be? Will other parties be drawn in? From a big picture economic perspective, I don't think it changes anything materially," he said. Safe-haven gold prices rose more than 1% and Wall Street's three major equity indexes ended down more than 1%. The outbreak of war brought oil prices into focus. Iran is among the world's largest exporters of crude and borders the Strait of Hormuz, a major choke-point for crude tankers through which roughly a fifth of global consumption flows and which Iran has previously threatened to close in retaliation to Western pressure. As oil prices surged and investors sought safe havens, U.S. government bond yields rose on bets that higher energy prices could stoke inflation. Still, despite the spike in crude prices, the global benchmark Brent remained well under $80 a barrel. Irene Tunkel, Chief U.S. Equity Strategist at BCA Research said she does not see long-term U.S. market implications unless prices soar above $100 a barrel, which would hurt consumer spending. She said that was unlikely unless oil infrastructure is destroyed or "Iran somehow closes the Strait of Hormuz and (the conflict) spills out of Iran and energy production in Iraq is shifted." The strategist also noted that the S&P 500 pullback on Friday, followed a strong rally from April lows. U.S. President Donald Trump said there was still time for Iran to halt the Israeli attacks by reaching a deal to curb its nuclear programme. The attacks came at a time when investors were wondering how central banks would handle interest rates if U.S. consumer prices rise due to Trump's tariffs. Jack Janasiewicz, portfolio manager at Natixis Investment Managers in Boston, said the potential for higher inflation from rising oil prices looked "less supportive" for U.S. government bond prices. But he noted that investors typically take geopolitical crises in their stride. "Historically speaking with these kind of geopolitical events, you get the knee-jerk reaction from the market but the longer-term ramifications tend to fade. History tells us to kind of look past a lot of this stuff," said Janasiewicz. OIL PRICE RALLY Janasiewicz said the ultimate gains in oil prices will depend on how long the war lasts and whether U.S. supply could be ramped up to cap prices if there is a supply disruption. "From a U.S. perspective it's at least a little bit more insulated because domestic producers could certainly ramp up" production, Janasiewicz said. The dollar index, which has recently borne the brunt of investor risk aversion, again took up the mantle of safe haven on Friday and was last up about 0.5%. "The dollar is reverting to that traditional role of safe haven, which we haven't seen for months," City Index strategist Fiona Cincotta said. Despite Wall Street's sell-off, stock prices were still not far off record highs, and some investors had warned that market participants may not be cautious enough. Marlborough fixed income fund manager James Athey said there was a risk investors dive back into riskier assets too quickly if tensions do not ratchet up quickly from here. "In general, markets tend to look through these sorts of events quite quickly but of course therein lies the risk of complacency," he said. "The situation is genuinely tense and fraught and risk assets are still priced for perfection," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
