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Definitions matter. We learn this in elementary school, if not before, as we are tested on our ability to connect vocabulary words to brief descriptions. Then, the definitions feel absolute, unambiguous, and concrete. However, as we develop and progress into reality, we realize that definitions are relative, ambiguous, and abstract in many instances of life. This situation is the case and, therefore, the plight of the investment advisor.

While this subject could take many forms and pursue different avenues, we will focus on Equity allocations within portfolios.

First up: equity capitalization.

Many people view their health savings accounts (HSAs) as a tool to pay for health expenses. It certainly can be used for that, and while that may have been the original intention of their creators, many forget that the funds contributed can end up being used in the same way as retirement plan funds. Withdrawals taken after age 65 are not subject to penalty (in the way they would be if taken before age 65 and used for non-qualified expenses) and can be used at the account owner’s discretion.

The individual must be covered by a high-deductible plan. They can contribute up to the annual maximum limit of $4,300 in 2025 (plus an additional $1,000 if they are age 55 or older by the end of the year) to contribute to an HSA. Suppose the same individual’s family is also covered under the high deductible health plan. In that case, the contribution limit rises to $8,550 (plus an additional $1,000 if they are 55 or older by the end of the year). There are no income limits that apply to HSA contributions. Employers can contribute to an employee's HSA. Just be aware that those contributions count towards the aforementioned annual limit. Because most HSA contributions are made through payroll, they avoid FICA tax and are deductible for federal income tax purposes. Even those who make contributions outside of payroll can take a subsequent deduction for federal taxes when filing their return.

Financial planning has always been an essential part of personal financial success. As artificial intelligence (AI) improves, its potential to change financial planning grows. For financial planners, understanding AI-driven tools is necessary to improve client services, improve decision-making, and remain competitive. This article will explore emerging trends, challenges, and opportunities of AI in the financial planning industry.

AI can improve financial planning by automating tasks, providing predictive analytics, and improving risk assessment. AI-driven tools allow planners to offer more personalized and data-driven visions, increasing their advisory services. The rise of robo-advisors and AI-powered analytics is changing the industry. While these technologies can increase efficiencies, they do not replace human expertise. Instead, financial planners integrate AI into their workflows to enhance decision-making, streamline operations, and offer a hybrid human and machine intelligence model.

The end of one’s life is never easy to talk about. However, many clients may not have an optimal plan to ensure their assets pass efficiently when they are gone. Outside of basic wills and POAs, many higher-net-worth families can take advantage of the higher estate tax exemption from the Tax Cuts and Jobs Act (TCJA). This current law is set to expire at the end of 2025.

The estate and gift limits are unified, meaning that gifting above the annual exemption amount ($18,000) counts towards the limit, as do certain assets passed to heirs at death. Before the passing of the TCJA, the lifetime exemption for estates and lifetime gifting went from 5.49 million to $11.18 million and currently sits at $13.61 million in 2024. That is the amount per person. Remember that for a married couple, each spouse gets a $13.61 million lifetime exemption, and any unused amount is portable to the surviving spouse, meaning if a spouse dies and has not used any of their lifetime exemption amounts, the surviving spouse's exemption amount would double to $27.22 million in 2024. Below are a few estate planning strategies you can utilize to help higher-net-worth families transfer their wealth more efficiently.

The comments in this article are inspired by the keynote address of Aaron Klein at the recent Fearless Investing Summit in Nashville, TN. For those in the advising community who know Aaron, he is incredibly passionate about the RIA space. He is the co-founder of Riskalyze, which has recently rebranded to Nitrogen. He presented five great ideas to help financial advisors be forward thinking, and they deserve repeating and sharing with a broader audience.

Medicare open enrollment is the annual period during which our clients eligible for Medicare can make changes or update their Medicare health and prescription drug plans. This period runs every year from October 15 to December 7, and any chosen changes will then take effect the following January 1. During this open enrollment period, clients can switch from Original Medicare (Part A and Part B) to a Medicare Advantage Plan (Part C) or vice versa. They can also change from one Medicare Advantage Plan to another, enroll in a switch, or drop a prescription drug plan (Medicare Part D). This period allows beneficiaries to ensure their current plans meet their needs, especially if their coverage, cost, or provider networks have changed. Reviewing and updating these coverages can help clients save money and ensure their healthcare needs will be covered for the following year. Choosing Original Medicare or a Medicare Advantage Plan depends on one’s healthcare needs, finances, and personal preference. In this article, I will present key points to be considered when making this decision.

Over the past decade, the financial landscape has witnessed significant shifts, one of which has gone unnoticed. Correlations. Notably, the correlations between equity and fixed income have increased, and domestic and international equities have become more highly correlated. These trends have profound implications for portfolio diversification and risk management. Important note: correlations change constantly over time.

We have entered a world where stakeholder capitalism is on full display, and it should be no wonder when investors call for investments in a social cause. Whether through the lens of ESG, sustainability, or green-specific investments, there has been an increase in understanding and demand. However, it is important to consider not just the investment but also the investor and their needs. After all, with the rise of social media, a company could find themselves in the middle of a culture war in no time and could be trending online with millions of impressions in mere minutes! If this could have a statistical significance on stock price, it is important to consider the risk companies pose when they speak out!

How workers’ need for lifetime-guaranteed income may drive more Americans to consider annuities

The goal of a successful retirement is to have enough guaranteed income to cover basic living expenses and not have to worry about running out of money for the rest of your life. According to recent LIMRA research, workers today do not feel that their households will receive enough lifetime-guaranteed income to cover basic living expenses throughout retirement.

The decision to buy an annuity or not can be a complex one. Understanding the factors that influence an investor’s decision to buy can help carriers design and market products and guide financial professionals’ approaches when speaking to their clients.