News from the Home Team

As advisors, we're always focused on helping clients grow their investments. But just as important as building wealth is protecting it. This month, we want to talk about some of the foundational steps you can take to make sure your financial future is secure and your wishes are clearly documented.

Whether it's a major life event or a simple change in preference, keeping your beneficiary designations up to date is an easy yet powerful step. Many people are unaware that beneficiary forms for accounts like IRAs and 401(k)s legally override what a will says. Regularly reviewing these designations ensures your assets go to the people you intend, avoids probate, and can even help minimize unexpected tax burdens for your heirs.

Beyond beneficiaries, a solid estate plan is essential for everyone, not just the ultra-wealthy. A comprehensive plan, including a will and powers of attorney, ensures your assets are distributed according to your wishes and that your healthcare and financial decisions are handled by a trusted individual if you are unable to do so.

To further protect your financial information, we encourage you to consider switching to electronic delivery (eDelivery) for your account statements and tax documents. This not only increases security by keeping sensitive information out of the mail but also helps you declutter and, in some cases, avoid unnecessary fees.

As part of your overall protection strategy, you also have the ability to add another person to receive a duplicate copy of your statements, which can be useful for keeping a trusted family member or advisor informed. Additionally, adding a trusted contact to your accounts is a simple step that provides an extra layer of security. This person can be contacted in the event we suspect financial exploitation or have difficulty reaching you.

A thoughtful and proactive approach to these details gives you peace of mind and provides clarity for your loved ones. Please don’t hesitate to reach out to us to review your beneficiary designations, discuss your estate plan, or set up eDelivery and trusted contacts. We are here to help you every step of the way.

Market Insights

Equities & Economy:

July saw continued strength in U.S. equity markets, with the S&P 500 and Nasdaq reaching new highs mid-month before a modest pullback. The Dow Jones Industrial Average dipped slightly by month-end, reflecting investor caution following Federal Reserve Chair Jerome Powell’s comments that tempered expectations for near-term rate cuts. Despite this, Q2 GDP growth came in strong at 3%, signaling resilience in the broader economy.

Corporate Earnings:

Big Tech earnings dominated headlines as July came to a close, with Microsoft and Meta posting standout results. Meta’s revenue surged 22% year-over-year, driven by robust advertising growth, while Microsoft’s cloud segment led its 18% revenue increase. These results helped buoy investor sentiment even as other sectors showed mixed performance.

Sector Performance:

July’s sector performance, Technology (+9.8%) and Communication Services (+7.3%), led sector gains, while Consumer Staples (-1.6%) lagged. Growth stocks outperformed value, and the Nasdaq posted a 6.6% monthly gain, continuing its strong rebound from earlier in the year.

Fixed Income:

While US Treasury yields experienced some volatility, with longer-term yields showing varied movements, shorter-term yields generally declined. Corporate bonds, both investment-grade and high-yield, witnessed tightening spreads, reaching levels unseen in years, suggesting investor confidence in corporate credit amidst economic uncertainties. Municipal bond yields also decreased, with the AAA municipal bond curve steepening, pointing towards an improved technical environment for the sector. The Federal Reserve, facing tariff-driven inflation concerns, maintained its "wait-and-see" approach, keeping interest rates steady. However, weaker July jobs data sparked speculation of a possible Fed rate cut in September. Despite ongoing inflationary pressures stemming partly from tariffs, current yields across various fixed income segments, including corporate and municipal bonds, remain historically attractive.

Real Estate Snapshot: 

The U.S. housing market continued its gradual rebalancing. Active listings rose 24.8% year-over-year, surpassing 1.1 million homes for sale—the highest post-pandemic level. However, pending home sales declined 3%, and homes spent a median of 58 days on the market, up 7 days from last year. The national median list price edged up 0.5% to $439,450, though price declines were noted in 33 of the 50 largest metros, especially in Southern and Western markets like Austin, Miami, and Los Angeles.

This Month’s Spotlight

Are Your Beneficiary Designations in Order?

Keeping your beneficiary information current is an easy but often overlooked step in managing your financial health. It helps make sure your money and assets go directly to the right people when the time comes. Below are a few important reasons to review your beneficiaries regularly.

• Major life events are unavoidable. Getting married, divorced, having kids, or losing a loved one can all affect who you want to inherit your assets. If you don’t update your beneficiaries after these events, your money could go to someone you no longer intend.
• Many people don’t realize that beneficiary designations override wills. Regardless of what your will says, named beneficiaries on accounts like IRAs, 401ks and TODs take legal precedence. If they don’t align with your will or are outdated, your estate plan may not work as intended.
• Regularly updating beneficiaries can help avoid probate for certain assets, ensure funds go directly to loved ones and reduce legal complications and delays for heirs.
• Tax planning can be an important consideration when it comes to naming beneficiaries. Some beneficiaries (like spouses) may have better tax treatment options than others. Without proper planning, your loved ones could end up facing unexpected tax bills that reduce the value of what they receive. Reviewing designations with a financial professional or attorney can help minimize these tax burdens.

Every investor’s situation is different, but checking your beneficiaries after a big life event or at least once a year is a simple step that can make a big difference. It gives you peace of mind and helps make things easier for the people you care about.

Did You Know?

When planning for the distribution of assets after death, it's essential to understand the roles of different types of beneficiaries and how inheritance is distributed.

A beneficiary is a person, people, or entity you designate to receive your assets upon your death. They are the first in line to inherit from things like a will, life insurance policy, or retirement account. You can name more than one beneficiary and specify how the assets should be divided among them.

A contingent beneficiary, also called a secondary beneficiary, is your backup. They only receive assets if the primary beneficiary dies before you, can't be located, or refuses the inheritance. For example, you might name your spouse as the primary beneficiary and your children as the contingent beneficiaries. This ensures your assets still go to a chosen loved one even if your first choice is unable to receive them.

When planning for the distribution of assets after death, it's essential to understand the roles of different types of beneficiaries and how inheritance is distributed.

Per stirpes (Latin for "by roots" or "by branch") is a legal term that determines how assets are distributed if one of your beneficiaries dies before you. If you specify per stirpes, the deceased beneficiary's share of the inheritance is passed down to their descendants (usually their children) to be divided among them. This ensures that each "branch" of your family receives the same portion of the total assets.

For example, if you have three children and designate them as beneficiaries per stirpes, and one of your children dies before you, their share would be split equally between their children (your grandchildren). The other two living children would still receive their full share. If you don't use a per stirpes designation, the deceased beneficiary's share would typically be divided among the remaining living beneficiaries instead.

If you have questions, we’re here for you. As always, your security and peace of mind are our top priorities.

Why an Estate Plan Matters Even If You Think You Don’t Need One

Estate planning isn’t just for the ultra-wealthy or those nearing retirement—it’s for anyone who wants control over how their assets and wishes are handled. Without a plan, state law will decide who receives your property, who cares for your minor children, and how your medical decisions are made if you can’t speak for yourself.

What’s at Stake Without a Plan

If you pass away without a will, your estate will be distributed according to your state’s intestacy laws. This can mean:

1. Assets going to relatives you didn’t intend to benefit.
2. Delays in settling your estate, creating stress for loved ones.
3. Unnecessary legal costs and, in some cases, avoidable taxes.
4. Court-appointed guardians for your children, rather than someone you would have chosen.

Core Elements of an Estate Plan

A complete estate plan usually includes:

1. Will: Directs how assets should be distributed and names guardians for minor children.
2. Revocable Living Trust: Allows assets to bypass probate and provides privacy.
3. Powers of Attorney: Authorizes someone to manage your financial or medical decisions if you’re incapacitated.
4. Advance Healthcare Directive / Living Will: Specifies your preferences for medical treatment.
5. Beneficiary Designations: Coordinates with your will/trust to ensure accounts transfer as intended.

When to Review and Update

Life events should trigger a review of your plan, including:

1. Marriage, divorce, or the start/end of a significant relationship.
2. Birth or adoption of children or grandchildren.
3. Death of a family member or beneficiary.
4. Significant changes in assets or residence in a new state.
5. Shifts in tax laws that may impact your estate.

How We Can Help

While we are not attorneys and do not draft legal documents, we work closely with estate planning professionals to ensure your financial accounts are aligned with your legal plan. Our role includes:

1. Helping inventory your assets for your attorney’s review.
2. Coordinating account titles and beneficiary designations to match your estate plan.
3. Discussing the potential tax impact on heirs and charitable giving opportunities.
4. Scheduling periodic reviews to keep your plan current.

Take the First Step

Estate planning is not a one-time task—it’s an ongoing process. Whether you’re starting from scratch or revisiting a plan made years ago, now is a good time to ensure everything reflects your current wishes.

Contact our office to discuss your goals and we can connect you with trusted estate planning attorneys, review your accounts, and help coordinate the process.

A thoughtful estate plan gives you peace of mind—and provides your loved ones with clarity and guidance when it matters most.

Tech Tips

Go Paperless with eDelivery – Secure, Convenient and Less Expensive

Did you know you can receive your Wealthscape Investor or NetXInvestor account statements, trade confirmations, prospectus, and tax documents electronically instead of by mail? Switching to eDelivery is a simple change that comes with big benefits:

• Increased security: Your documents are only accessible after you log in and authenticate yourself, keeping your financial information safer than sending it through regular mail.
• Save money: Some accounts (those not on our Wealthport managed program) may have paper statement surcharge fees. eDelivery helps you avoid these unnecessary costs and may on average $34.
• Declutter your life: No more stacks of paper piling up. You can access your past statements anytime online without digging through file cabinets.
• Help the environment: By going paperless, you reduce waste and help conserve natural resources.

Getting Started is Easy

Log into or register your Wealthscape Investor or NetXInvestor account, go to your communication preferences, and select “Electronic Delivery” for all.

• Accounts carried with National Financial Services (Fidelity Clearing), visit – www.wealthscapeinvestor.com
• Accounts carried with Pershing, visit www.netxinvestor.com

Make the switch today! You’ll enjoy more convenience, greater security, and a decluttered desk.