Wealth Management
Despite the sharp market sell-off, financial advisors say the downturn could present timely tax planning opportunities. Tax-loss harvesting—selling underperforming assets to offset capital gains or reduce taxable income—has become a key strategy as investors navigate recent volatility.
Certified financial planner Sean Lovison emphasizes this as a way to find a “silver lining” amid losses, especially since excess losses can be carried forward into future tax years. Roth IRA conversions are also gaining attention; converting traditional IRA funds during a dip allows for potential tax-free growth once markets rebound, though timing and tax implications must be carefully considered.
Additionally, the window to contribute to a Roth IRA for 2024 remains open until April 15, offering a chance to buy in at lower asset prices while securing future tax-free retirement growth.
While losses sting, this environment may reward those who act decisively on smart financial strategies.
PortfolioGPT is an AI-powered platform that rapidly constructs diversified investment portfolios tailored to an individual’s financial goals and risk tolerance. It simplifies the traditionally complex portfolio-building process, offering instant, customized solutions for both novice and experienced investors.
The platform also allows users to analyze and fine-tune their strategies, encouraging smarter, more proactive financial planning. PortfolioGPT exemplifies the growing trend of AI-driven investment platforms that automate portfolio optimization through intelligent algorithms.
Its rise reflects broader shifts in fintech and wealth management, where personalized, tech-enabled solutions are making sophisticated investment tools more accessible.
Finsum: As AI continues to evolve, tools like PortfolioGPT are poised to redefine how people approach investing and financial decision-making.
When evaluating a potential move to a new broker-dealer, it’s important to clarify key factors that will impact your control, income stability, and long-term success.
- For instance, understanding who owns the client relationships affects your future ability to manage your book of business.
- Frequent changes to the financial advisor compensation plan may signal instability, so reviewing their track record can help protect your income.
- Investigate how many practices the broker-dealer has attracted recently and why, as this reflects both its appeal and integration support.
- Assess how successful previous advisors have been at transferring their assets, since this can impact your business continuity.
- Leadership matters too—long-tenured CEOs often point to organizational stability and a consistent vision.
Finsum: Also, recent enhancements to the advisor platform to see whether the broker-dealer is investing in tools that will genuinely support and grow your practice.
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When evaluating new forms of digital money, it’s essential to clarify what problems they solve and how effectively they do so. The new USDi stablecoin aims to serve as an inflation-protected form of cash by tying its value to changes in the Consumer Price Index (CPI) since December 2024.
Unlike traditional inflation-protected securities like TIPS, which can lose value when interest rates rise, USDi offers a form of cash that maintains its purchasing power without interest rate risk. Michael Ashton likens USDi to an inflation-linked savings account, calling it a potential “end of the risk line” for holding cash.
The coin is designed to be minted and burned based on daily CPI updates, anchoring it to real-world inflation data. However, for stablecoins like USDi to achieve mainstream use, they must overcome key challenges like merchant adoption, user-friendly wallets, and seamless onboarding to compete with familiar payment systems.
Finsum: This is a leg up in the crypto world, and a sign that creators are thinking about the relationship with traditional macro pressures.
In early 2025, target date fund (TDF) investors experienced a setback as U.S. stock markets declined sharply, with a 12% year-to-date loss driven by tariffs and fears of a market correction. For years, diversification beyond U.S. equities hurt performance, but that trend reversed as global factors began to weigh on domestic markets.
The SMART TDF Index, which models ideal TDF allocations with better risk management, has outperformed the industry standard, revealing that most TDFs are overexposed to risky U.S. assets. April’s turbulence, sparked by the April 2 “Liberation Day” tariffs and further losses in the S&P 500, has intensified concerns about sequence-of-return risk, especially for those nearing retirement.
Despite historical lessons and available low-risk alternatives like the SMART Index and TSP, most TDFs remain unprepared for prolonged downturns.
Finsum: With fear dominating investor sentiment, now may be the time to rethink how TDFs protect retirement savers.
Morningstar’s latest Retirement Plan Landscape report finds that while the average cost of workplace retirement plans continues to decline, expenses still vary significantly—especially for those in smaller plans, who often pay nearly three times as much as participants in large plans.
These cost discrepancies stem largely from economies of scale, with larger employers able to spread administrative expenses more efficiently. Despite the variation in fees, most participants across plans have access to high-quality investments, with over 94% of defined-contribution assets allocated to Morningstar Medalist-rated options.
The report highlights that even small plans can be cost-effective, with 20% of them coming in below the median cost for medium-sized plans. However, more than $600 billion has exited workplace retirement plans annually since 2020, often due to rollovers into IRAs when employees change jobs.
Finsum: Investors should carefully weigh whether their workplace plan offers better value through low fees and strong investment options before making such moves.