Wealth Management
Value investing, long championed by legends like Warren Buffett, has historically delivered strong long-term returns. However, in the past decade, growth stocks have significantly outpaced value due to low interest rates inflating the valuations of high-growth companies.
From 2011 to 2020, large value funds underperformed growth funds by more than five percentage points annually, and in 2020 alone, the gap was a striking 32.2%. Although value outperformed in 2022, the trend reversed in 2023 and 2024, with growth indexes returning over 40% and 33%, respectively, compared to value’s 11.5% and 14.4%.
Still, investors looking for long-term value exposure can consider top ETFs like the Vanguard Value ETF (VTV), iShares Russell 1000 Value ETF (IWD), and Vanguard Small-Cap Value ETF (VBR).
Finsum: These funds offer broad diversification, low expenses, and dividend yields making them attractive options for value-focused portfolios.
In today’s fast-evolving financial landscape, your broker-dealer relationship plays a central role in the success of your practice. Whether you’re seeking greater flexibility, higher payouts, or more modern tools, here are the key factors to focus on when evaluating your next move:
- Payout Structure: Look for a competitive payout that balances high earnings with strong support services.
- Technology and Tools: Ensure the broker-dealer provides modern, integrated platforms that streamline your operations and enhance client service.
- Culture and Values: Partner with a firm that aligns with your philosophy and genuinely prioritizes advisor success.
If your current BD no longer aligns with your goals, values, or client needs, it might be time to explore alternatives.
Finsum: Choosing the right broker-dealer is more than a financial decision—it’s a strategic step toward building the practice and lifestyle you envision.
President Trump’s sweeping “Big Beautiful Bill” has stirred surprisingly little excitement within the retirement industry, largely because it leaves the defined contribution landscape mostly untouched. While the law does expand health savings accounts and introduces a limited Social Security tax break for lower-income seniors, it sidesteps deeper retirement reforms that many industry advocates had hoped for.
Notably, a bipartisan proposal to unlock more than $100 billion in surplus pension and retiree health assets for worker benefits was excluded, frustrating supporters who saw it as a pro-employee measure. On the positive side, the bill preserves current retirement tax incentives, avoiding feared rollbacks that would have impacted savings strategies.
Outside the retirement space, the bill’s increase to the national debt ceiling could hasten Social Security insolvency by a year, according to the Committee for a Responsible Federal Budget.
Finsum: Investors should also consider how the "Trump Accounts" for children could impact clients’ children
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When an advisor leaves and their accounts are reassigned to you, the transition requires sensitivity, strategy, and respect for the client relationship that preceded you. These clients may have had deep trust in their former advisor, and any attempt to immediately assert control or change how things are done can damage the relationship before it begins.
Instead of declaring, “You’re my client now,” approach them as if they were newly referred—someone you're hoping to earn, not inherit. Start by learning as much as possible about the client’s history, goals, and preferences, using CRM notes and internal records to guide your outreach.
By demonstrating empathy, professionalism, and a genuine interest in the client’s well-being, you can build trust over time and help ensure they choose to stay with the firm—not because they have to, but because they want to.
Finsum: In your first meeting, listen more than you speak, focus on continuity, and resist any urge to immediately pitch new products.
The U.S. equity market remains a hotspot for high-growth opportunities, particularly within the AI infrastructure sector, where companies like Super Micro Computer (NASDAQ: SMCI), or Supermicro, are helping shape the next wave of computing.
Specializing in powerful server and storage systems tailored for AI and high-performance computing (HPC), Supermicro is seeing a surge in demand as enterprises ramp up their investments in AI workloads. Despite a temporary stock slump sparked by a short-seller report and delayed financial filings, an internal review cleared the company of wrongdoing, helping to restore investor confidence.
Now trading at more than 60% below its peak, Supermicro offers a compelling entry point for investors seeking discounted exposure to cutting-edge AI infrastructure. Its proprietary Data Center Building Block Solutions and liquid cooling technologies give it an edge in energy efficiency and scalability—both crucial in a market increasingly focused on sustainable computing.
Finsum: The AI era will require a huge amount of infrastructure in order to hold up to the rising demands, investors should consider this cross over.
As of June 2025, the Federal Reserve has maintained its key interest rate, creating a rare window for investors to take advantage of elevated yields at the short end of the bond curve.
With short-term yields currently exceeding those of intermediate maturities, ultrashort bond funds have emerged as an efficient way to earn income without assuming significant duration risk. These funds, which typically hold maturities under one year, offer a balance of liquidity, low volatility, and competitive returns. Among the top active strategies is Pimco’s Short-Term fund, which combines nimble credit allocation with disciplined risk management, avoiding complex securities and leaning on deep market expertise.
For investors seeking tax-efficient income, Vanguard’s Ultra Short-Term Tax-Exempt fund delivers high-quality municipal bond exposure with an ultrashort duration, making it a smart pick in rising rate environments.
Finsum: These strategies give investors a way to capture attractive yields while staying agile amid ongoing rate uncertainty.