Wealth Management
Married retirees with an age or income gap can significantly reduce their Social Security tax bill in 2025 by delaying benefits and strategically using the new $6,000 Senior Deduction. For example, when the older spouse defers Social Security until age 70, it not only boosts lifetime income but also helps lower the couple’s current combined income, keeping more benefits tax-free.
Roth IRA conversions during low-income years and Qualified Charitable Distributions (QCDs) after age 70½ are smart ways to cut taxable income without losing access to deductions. The Senior Deduction becomes especially powerful when couples keep their Modified Adjusted Gross Income (MAGI) under $150,000, the cap for eligibility.
By timing withdrawals from IRAs to coincide with lower earning years and coordinating the younger spouse’s income, couples can avoid tipping into higher Social Security tax brackets.
Finsum: A well-planned mix of benefit delays, tax-efficient withdrawals, and smart giving can make retirement income go further while keeping taxes in check.
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Taxes shouldn’t dictate your investment decisions, but they should definitely inform them, especially if you’re holding assets in taxable accounts where after-tax returns matter most. Smart investors know that choosing the right account type such as Roth IRAs, traditional 401(k)s, or HSAs can make a big difference in long-term performance by deferring or avoiding taxes altogether.
Tax-deferred accounts often outperform taxable ones over time, especially when you're in a high tax bracket or expect to drop into a lower one in retirement. A diversified mix of taxable, tax-deferred, and tax-free accounts can give you more control over your income strategy and tax liability in retirement.
Beyond account choice, selecting tax-efficient investments like municipal bonds or low-turnover ETFs can reduce the drag of taxes on earnings, especially when every percentage point counts.
Finsum: In the end, tax-savvy investing isn't about dodging the IRS, it's about maximizing what you keep and using tax rules to your advantage.
Derivative income ETFs are becoming more popular among financial advisors seeking reliable income amid ongoing market volatility. A 2024 Cerulli Associates report found that 15.2% of advisors are already using these strategies, with another 7% planning to adopt them soon.
These ETFs, which generate income by selling options, have attracted over $55 billion in inflows across 2023 and 2024, with the strongest uptake seen in wirehouse channels. As inflation concerns and demand for consistent yield grow, product development is accelerating—6% of ETF issuers are actively building new funds and 13% are in planning.
Advisors are also increasingly interested in defined outcome ETFs, which offer preset downside protection, though adoption remains more limited for now.
Finsum: Overall, both categories reflect the shifting demand toward more predictable, income-focused solutions in today’s uncertain markets.
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As expectations for interest rate cuts build, emerging market (EM) debt is drawing increasing attention from investors. Lower U.S. rates typically weaken the dollar, making EM currencies more attractive and boosting returns on dollar-denominated EM bonds.
This favorable backdrop has already spurred strong demand, with EM bond issuance in Central and Eastern Europe, the Middle East, and Africa reaching $190 billion in the first half of 2025, on pace to break historical records.
The Vanguard Emerging Markets Government Bond ETF (VWOB) offers investors a low-cost, diversified way to access this space, boasting a 30-day SEC yield of 5.66% and nearly 7% YTD return. As rate cut bets intensify into September, VWOB is positioned to benefit from both income and potential price appreciation.
Finsum: For investors seeking EM exposure without the complexities of individual bond selection, ETFs offer compelling options
Vestmark has introduced a new unified managed account (UMA) that integrates private assets alongside ETFs, mutual funds, equities, fixed income, and direct-index SMAs, developed in collaboration with iCapital, BlackRock, and Dynasty Financial Partners. This tax-managed UMA enables RIAs to streamline portfolio construction by combining traditional and alternative investments in a single account.
Initially, Dynasty advisors can access subscription-based alternatives via iCapital’s platform and leverage BlackRock’s model portfolios. Vestmark CEO Karl Roessner said the innovation delivers on UMA’s long-promised simplicity and efficiency, supporting the firm’s $1.7 trillion in platform assets.
BlackRock emphasized the move enhances their reach in the RIA channel, while Dynasty highlighted the ability to scale sophisticated wealth strategies for HNW clients.
Finsum: The launch follows another major announcement from Dynasty’s investment banking arm, reinforcing its position in high-net-worth advisory solutions.
A coalition of top financial planning organizations is urging the Department of Labor to finalize its proposed Retirement Security Rule, which would require financial professionals to act in clients' best interests when giving retirement advice.
In a joint letter to Labor Secretary Lori Chavez-DeRemer, leaders from the CFP Board, FPA, NAPFA, and XY Planning Network argued that the rule fills critical regulatory gaps left by standards like the SEC’s Reg BI. The letter cited research showing that 92% of Americans expect fiduciary advice, even though current laws don’t always guarantee it—especially for one-time retirement guidance.
The organizations pushed back on claims that fiduciary rules restrict access to advice, pointing to firms like XYPN that serve younger, mass-affluent clients without asset minimums. The coalition also praised the rule’s efforts to modernize outdated protections, especially regarding insurance products that currently fall outside federal fiduciary oversight.
Finsum: Financial advisors should watch these updates because they will affect their practice management.