Insights

When deciding between a human financial adviser and a robo-adviser, understanding the unique value each brings to the table is crucial. While robo-advisers offer affordability and convenience, human financial advisers provide personalized guidance that technology alone cannot replicate.

Looking ahead to 2025, all eyes are on the sunsetting Tax Cuts and Jobs Act of 2017 (“TCJA”). As written, much of this extensive tax reform bill is set to expire at the end of 2025, unless Congress can extend the provisions or make them permanent. The portions set to return to their previous levels include cuts to individual tax rates, expansions of various deductions and credits, and the significant increase in the federal estate tax exemption.

At its highly anticipated September meeting, the Federal Reserve opted to kick off its rate cutting cycle with a 0.50% cut. They continued this path with a 0.25% cut in December, bringing the target rate to a range of 4.25% to 4.50%.

It’s a New Year, the market just pulled an all-nighter, and the punch bowl is still half full. The stock market finished 2024 at both a celebratory and precarious spot. Investors have many reasons to cheer following the S&P 500 Index’s second year in a row of returns exceeding 20%. The last time this happened was in the late 1990s.

Despite considerable uncertainty surrounding the U.S. election, monetary policy, and geopolitical factors, 2024 proved to be a year of resiliency for the economy. Consumer spending remained strong, buoyed by a rising stock market, falling interest rates, and a healthy labor market

We are proud to have sponsored the New England Disabled Sports (NEDS) event at Topgolf. The evening was filled with fun and camaraderie, all for a truly inspiring cause.

Enacted in 2017, the Tax Cuts and Jobs Act (TCJA) was one of the most extensive tax law reforms in over 30 years. Changes under the TCJA were wide-ranging and impacted individuals, estates, and businesses. The legislation is set to “sunset” on December 31, 2025, reverting back to the rules in effect pre-2018.  

Short-term interest rates have likely peaked, and we expect a gradual decline into year-end as the Fed brings the policy rate down to a range of 3-3.5% at a gradual pace.  With inflation falling, “real” yields (net of inflation) remain positive, which is encouraging for savers.

Third quarter stock market performance was strong, and it looked a lot like the second quarter’s, at least at a high level. U.S. stocks, as measured by the S&P 500 Index, returned nearly 6% in the third quarter compared to 4.3% in the second quarter, including dividends.

Despite tight monetary conditions and the highest borrowing costs in two decades, economic growth has remained quite healthy, and the Federal Reserve (Fed) is hoping to keep it that way.  At the September meeting, they decided to “go big,” opting to cut the short-term federal funds rate by half a percentage point.