By Ross Snel
The 2017 Tax Cuts and Jobs Act transformed the tax code, but some of its provisions are set to expire by the end of 2025 unless Congress takes action. Among them is the expansion of the estate and gift tax exemption. For our latest Barron's Advisor Big Q, we asked advisors how they're helping rich clients prepare for these potential changes. Some are urging clients to act thoughtfully in taking advantage of the expanded exemption, because rash moves ahead of tax changes can result in mistakes. Some are also recommending clients prepare for potential tax increases by doing Roth IRA conversions.
In other most-read wealth management articles this week:
Record Assets . Charles Schwab, Morgan Stanley, and other large wealth management companies reported record client assets when they posted first-quarter financial results. The obvious catalyst is the stock market's march higher, but there's more to the story than that. These companies also reported strong gains in net new assets, suggesting investors are feeling bullish about the economy and markets, and are putting more money to work.
Envestnet on the block, report says . Change has been afoot at wealth management technology company Envestnet. Earlier this year, co-founder and CEO Bill Crager said he would step down, and Envestnet is searching for a permanent replacement. Last month, well-known technology strategist Dani Fava announced she was leaving the company. Then this week, Reuters reported that Envestnet is considering strategic options that could include its sale to a private-equity firm.
First Republic aftershock . The collapse of First Republic Bank a year ago seems like old news now, but some industry players are still feeling its effects. BNY Mellon's Pershing unit held assets for the bank's wealth management unit, but after JPMorgan Chase bought First Republic, it began moving client assets from Pershing to its in-house custody business. In its latest earnings report, BNY Mellon said Pershing saw net asset outflows of $2 billion during the first quarter.
Annuity scrutiny . The Department of Labor is receiving lots of attention for its proposed fiduciary rule, which likely will become final soon. The proposal aims to impose fiduciary obligations on more financial professionals who offer retirement advice. One of our guest columnists writes, however, that regulators should focus their attention on a specific retirement product: annuities. He offers multiple examples of how the marketing language for some annuities can confuse investors.
Defamation damages . A recent Finra arbitration ruling shows that what brokerage firms write on U5 documents, which firms are required to file whenever brokers leave, can cost them. An arbitration panel awarded $250,000 in damages to a former J.P. Morgan Securities broker named Michael Nolan. He had alleged that the unit of JPMorgan Chase defamed him by writing on his U5 that he had shared confidential information with a client and failed to disclose outside business activity. He denies both allegations.
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(END) Dow Jones Newswires
April 19, 2024 15:54 ET (19:54 GMT)
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