UBS strategists have warned that the artificial intelligence boom, fueled heavily by private credit firms and lenders, is raising the risk of overheating in the sector. Private credit, once focused on smaller businesses, has expanded rapidly into big tech, with tech-sector debt from non-bank lenders surging nearly 29%—or $100 billion—in the past year. 

The warning echoes concerns from OpenAI CEO Sam Altman, who recently cautioned that excitement around AI may be inflating a bubble. UBS noted that while this influx of capital could support hyperscaler growth plans, it may also create vulnerabilities if assets sour or growth slows. 

Tech giants including Meta, Amazon, Microsoft, and Alphabet are projected to spend $344 billion in 2025, much of it on AI-driven infrastructure such as data centers. 

Finsum: With private credit now deeply embedded in the sector, analysts caution that investors should carefully monitor risks alongside the sector’s breakneck growth.

A new Northwestern Mutual study shows that while Americans are experimenting with AI in daily life and at work, most remain hesitant to rely on it for something as personal as financial planning. 

More than half of respondents said they trust human advisors over AI for tasks like retirement planning and portfolio management, with only a small fraction willing to put that responsibility in the hands of algorithms. The survey underscores that money decisions are not purely analytical but tied to life goals, emotions, and family priorities—areas where people value empathy and nuance. 

At the same time, nearly half of Americans say they are comfortable with financial advisors using AI behind the scenes, particularly younger generations who see technology as a natural extension of expertise. Gen Z and millennials, in particular, were more open to advisors who integrate AI into their practice, compared to Gen X and baby boomers. 

Finsum: Americans want the best of both worlds: the efficiency and insights that AI can provide, paired with the judgment and human connection of a trusted financial advisor.

Corebridge Financial has launched Power Select AICO℠, a new index annuity developed in partnership with Market Synergy Group, featuring a unique Additional Interest Credit Overlay (AICO) that can boost earnings by up to 200%. The product offers exposure to major indices like the S&P 500® and Nasdaq-100®, along with fixed interest options, while providing 100% downside protection against market losses. 

Unlike traditional index annuities, the overlay allows for enhanced accumulation during weak markets, though it comes with a 0.80% annual fee and a cap on the maximum overlay benefit. 

Executives say the design helps investors diversify and accumulate assets regardless of market conditions, while still offering protection during downturns. The contract guarantees are backed by American General Life Insurance Company, a Corebridge subsidiary, though withdrawals may carry tax implications and early withdrawal penalties. 

Finsum: With its combination of growth potential, protection, and innovative crediting structure, index annuities are perfect for retirement savers seeking balance between safety and upside.

Structured notes are often pitched as sophisticated tools for yield and downside protection, but they carry layers of risks that can outweigh their potential benefits. Because they are debt obligations of the issuing bank, their value hinges on the issuer’s creditworthiness, leaving investors vulnerable in the event of a default. 

High, often hidden, fees further erode returns, with some products charging over 2% annually on top of advisor commissions. Liquidity is another concern, as structured notes rarely trade in active markets, forcing early sellers to accept steep discounts. 

Their complex payoff structures can also mislead investors into believing they hold principal protection when in reality protections are conditional and limited. Tax treatment is murky as well, with many products generating taxable “phantom income,” creating unexpected burdens that make structured notes a risky choice for most retail investors. 

Finsum: While structured notes are perfect for lots of investors illiquidity and complexity that may leave investors worse off than with simpler, more transparent options.

Large-cap blend mutual funds offer investors a balance of growth and value stocks, providing diversification and stability compared to small- or mid-cap funds. 

Among the top picks are Ultrabull Profund Investor Shares (ULPIX), Vanguard Growth and Income Fund (VQNPX), and JPMorgan U.S. Research Enhanced Equity Fund (JDEAX), all carrying a strong buy.  ULPIX aims to double the daily performance of the S&P 500, posting impressive three-year annualized returns of 29.5%. 

VQNPX focuses on capital appreciation plus dividend income, with three-year annualized returns of 19.7% and a low expense ratio of 0.38%. JDEAX delivers consistent returns by investing in a diversified mix of S&P 500 companies, achieving three-year annualized returns of 19.6% under the steady management of Raffaele Zingone.

Finsum: These funds typically invest in companies with market capitalizations above $10 billion, making them attractive for risk-averse investors seeking long-term performance.

Separately managed accounts (SMAs) are gaining traction among financial advisors, with Cerulli Associates projecting assets in these programs to surpass $2 trillion in 2025. Assets grew 12% in 2023 and are expected to rise another 15% this year, boosted by the popularity of unified managed accounts (UMAs) that combine SMAs, mutual funds, and ETFs for tax efficiency and personalization. 

Advances in technology have made SMAs easier to manage, lowering minimums from millions to as little as $100,000 and expanding access beyond just high-net-worth clients. 

Advisors now use SMAs to tailor portfolios for tax management, ESG preferences, or concentrated stock positions, while UMAs provide a holistic view for strategies like tax-loss harvesting. The shift from commission-based brokerage accounts to fee-based managed accounts reflects investor demand for fiduciary oversight, transparency, and control. 

Finsum: With features like fractional share trading and portfolio-wide tax optimization, SMAs are increasingly seen as a flexible and efficient tool for personalized wealth management.

The 2025 NFL season is nearly here, and ESPN has released its final offseason Power Rankings, weighing holdouts, injuries, and breakout performances ahead of Week 1. 

• The Philadelphia Eagles top the list at No. 1, with new offensive coordinator Kevin Patullo under pressure to keep the team’s high-powered offense running smoothly after last year’s Super Bowl win. 
• The Kansas City Chiefs come in at No. 2, where wide receiver Rashee Rice faces expectations to prove he can be the go-to option alongside veteran Travis Kelce. 
• Ranked third, the Buffalo Bills are counting on Joey Bosa to stay healthy and anchor the pass rush after signing a one-year deal. 
• The Baltimore Ravens take the fourth spot, with tight end Mark Andrews needing to bounce back in a contract year after an uneven 2024 season. 

Finsum: Overall, the rankings highlight both team depth and the individuals most under the microscope as the new season kicks off.

Financial advisors often focus on younger investors, but women over 60 are becoming a powerful and growing segment of primary asset holders. Many acquire wealth through widowhood, divorce, or lifelong independence, and they bring unique priorities to financial planning, including legacy, caregiving roles, and family impact. 

According to Jen Hollers of LPL Financial, these women value personalized, relationship-based advice and often seek to align their financial decisions with personal values rather than focusing only on performance. 

A challenge for advisors is that many older women are new to active wealth management, having been excluded from earlier financial conversations, and may feel overwhelmed when suddenly in charge. Hollers urges advisors to lead with listening, avoid jargon, and embrace a holistic model that blends estate planning, family dynamics, and legacy goals into a cohesive plan. 

Finsum: By fostering transparency, empathy, and family involvement, advisors can help ensure these clients’ intentions are honored while also building lasting relationships with the next generation.

Farther has launched an AI-powered Investment Proposal tool, designed to help advisors generate customized client proposals in under 10 minutes. Built entirely in-house, the tool consolidates tasks that once required multiple platforms into a single secure system, ensuring both efficiency and compliance. 

It analyzes a prospect’s existing portfolio, compares it against Farther’s investment models, and produces tailored recommendations that advisors can further refine. The goal is to streamline onboarding while delivering more personalized and client-friendly proposals, helping prospects better understand their options. 

Advisors already using the tool say it allows them to focus more on strategy and client conversations, making their pitches more effective. 

Finsum: AI continues to modernize wealth management by blending automation with human expertise.

In the evolving “post-60/40” investing landscape, alternatives often come with higher fees and reduced liquidity, but investors tolerate these trade-offs for the potential of higher returns and skilled management. Wealth managers stress that allocations should reflect an investor’s liquidity needs, risk tolerance, and experience, with recommendations ranging from a cautious 10% to as high as 50% for those with no short-term cash flow requirements. 

While some, like Marina Wealth’s Noah Damsky, seek niche managers with unique strategies, others—such as International Assets Advisory’s Ed Cofrancesco—favor straightforward private real estate projects for their simplicity and transparency. 

Ballast Rock Private Wealth’s Andrew Mescon highlights private credit and private equity secondaries as compelling opportunities, citing diversification, downside protection, and discounts to net asset value as advantages. Managers also note the growing role of evergreen fund structures, which can ease liquidity constraints and broaden access to these asset classes. 

Finsum: Ultimately, successful alternative investing hinges on aligning product complexity, fees, and liquidity with each investor’s unique financial situation.