Michael Bapis, Private Advisor and Managing Director at Rockefeller Capital Management, joined Keith Black, Managing Director of RIA Channel, at the CAIS Summit to discuss clients’ needs during times of changing market volatility and tax policy.
Rockefeller Capital Management is a megabrand and a boutique firm. The firm focuses on client service and searches for unique asset managers that are not available to all investors.
By building a diversified portfolio and sticking to a plan that includes alternative investments, portfolio volatility can be reduced, especially in years such as 2022, when both stocks and bonds declined in value. Advisors should continually evaluate client portfolios and circumstances, rebalancing allocations with market movements, realizing losses to reduce taxable income, and evaluating changes in client risk tolerance and time horizon.
In late 2024, markets were declining in volatility, with inflation subsiding, the yield curve ending its time of inversion, and the start of the Federal Reserve easing interest rates. A successful rotation from growth and tech to broader market leadership can also reduce risk. Of course, political developments and geopolitical risks can impact the markets at any time.
Investors should always be aware of tax and estate planning rules and how they may be impacted by political developments. A key political development to watch is the 2017 Tax Cut and Jobs Act, with some provisions scheduled to sunset at the end of 2025. If not renewed by the Trump administration, individual tax rates would increase, the rules for deductions would be revised, and the federal estate tax exemption would be cut by more than half.
Resources:
Exploring Wealth Transfer: Planning for Reduced Exemption Levels