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Michael Ridgeway
Learn more about our insights in the Resources section! Find helpful articles and news from our leadership, including our Investment Office, Chief Economist and Wealth Planning Team.
We are a national wealth management firm servicing entrepreneurs, business owners, executives, family offices, and institutions.
Learn about the rich history of the firm and today’s mission for our clients.
View our national presence with our offices across the country.
Meet our leadership team at the firm and learn how we support advisors.
Learn more about how we help advisors in the Solutions section! Find out more about our culture, central resources, investments, wealth planning, technology, marketing, and how we empower our advisors.
“I joined Robertson Stephens because I saw an opportunity to collaborate with a group of extremely talented individuals to bring a truly institutional-grade experience to wealth management.”
Michael Ridgeway
Learn more about our insights in the Resources section! Find helpful articles and news from our leadership, including our Investment Office, Chief Economist and Wealth Planning Team.
2025 Challenges for Wealth Managers to Raise with Clients
It’s imperative that wealth managers discuss these topics to plan for clients’ resilience and growth.
As published in Rethinking65
By Mallon FitzPatrick, Head of Wealth Planning
As the new year unfolds, it is more crucial than ever for wealth managers and their clients to engage in strategic planning. Political changes will bring some shifts and many people are confused how and if this may impact them. This article explores three key areas in which wealth managers can provide strategies to optimize clients’ financial wellbeing in 2025 and beyond.
Buy Tax Futures and Lock in Rates
Clients are likely to benefit from extending the historically low tax rates under the Tax Cuts and Jobs Act (TCJA). While these rates remain in place, it’s imperative to take action to lock in these benefits before any potential changes. Many economists believe that reducing the looming national deficit may require raising taxes, cutting costs and higher GDP growth. Thus, planning becomes critical to mitigate future burdens. In many cases, there’s a cost to locking in rates, and typically, it means paying taxes now to avoid higher taxes later.
Here are strategies to consider:
Why should you consider these strategies? Ask clients not only if they are concerned about the implications for their own taxes, but whether they have considered what tax rates might look like for their children or grandchildren. The cost of living is significantly higher for millennials and Gen Z than for their parents at those ages, and it’s unlikely to improve. Buying a home, raising children, and paying for higher education are becoming more expensive for the average American.
Direct and Indirect Gifts
With inflation and potentially higher taxes, heirs may benefit from controlled streams of inheritance, which are gifted directly to them at the parents’ discretion during the parents’ lifetime. A controlled inheritance stream can help heirs maintain a comfortable lifestyle.
Another option, indirect gifts, are typically facilitated through an irrevocable trust and allow for controls during the grantor’s life and from beyond the grave. Common controls include when and how much income is distributed, the ability to access a portion of the principal, and access based on the beneficiary’s age or other criteria. The trust also offers asset protection from creditors and spouses.
Navigating Property and Casualty Insurance Challenges
Property insurance costs are going up because of the increasing frequency of natural disasters, regulation changes and fraudulent claims. Auto coverage is also rising because of the ripple effects caused by uninsured drivers. These changes will likely keep increasing premiums over the long term; it’s the new normal. Here’s how to manage these challenges:
The Role of Cryptocurrency in Wealth Portfolios
The new administration has labeled itself crypto-friendly and may integrate cryptocurrency more into traditional financial systems. Wealth managers should prepare clients for an evolving crypto landscape by considering:
Conclusion: Strategic Planning for the New Year
As we navigate 2025, advisors must discuss with clients how to maximize existing opportunities and prepare for potential shifts, as well as accepting the new “normal” of P&C coverage. The strategies discussed — locking in favorable tax rates, optimizing insurance coverage and embracing digital currency — can help safeguard present wealth and empower future generations to thrive amidst economic uncertainties.
Mallon FitzPatrick, CFP, is a principal and managing director at Robertson Stephens and heads the firm’s financial planning center. For more information about Mallon or Robertson Stephens, please visit www.rscapital.com or email info@rscapital.com. Advisory services are offered through Robertson Stephens Wealth Management LLC. Opinions presented are those of the author and not necessarily Robertson Stephens. Please read important disclosures.
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