Wealth Management
Independent financial advisors switching broker-dealers prioritize a smooth transition, supportive infrastructure, and a business-friendly environment with product and operational flexibility.
Recruiter Derrick Friedman emphasizes that advisors now have the leverage to demand these conditions—and if broker-dealers (BDs) don’t meet them, they risk decline. Industry consolidation has shrunk the pool of large BDs, prompting many advisors to consider RIAs, especially those seeking fewer compliance burdens and more freedom to grow fee-based practices.
Hybrid models remain attractive to advisors who still maintain transactional business and want to retain flexibility. Technology—like DocuSign—has reduced friction in transitions, making it easier for advisors to move their book of business quickly.
Finsum: While RIAs are expanding rapidly, BDs aren't disappearing; instead, consolidation is pushing advisors and recruiters alike to explore a wider landscape of firms.
On May 28, 2025, the U.S. Department of Labor rescinded its 2022 guidance that had discouraged 401(k) plans from offering cryptocurrency investments, signaling a return to investment neutrality.
The original 2022 Release had raised concerns in the benefits industry by implying heightened fiduciary scrutiny for crypto, leading to legal challenges, though it was ultimately deemed nonbinding. Despite lacking legal force, the 2022 guidance effectively chilled crypto’s inclusion in retirement plans, with GAO data showing minimal adoption and crypto exposure limited mostly to self-directed brokerage windows.
Under the Trump administration, broader federal policy shifted to encourage digital asset innovation, with agencies like the SEC relaxing enforcement and facilitating clearer frameworks for crypto. While the Labor Department has not explicitly endorsed crypto in 401(k)s, it now stresses fiduciaries must evaluate all investment options contextually and prudently.
Finsum: Whether this neutral stance extends to other investment types or persists beyond the current administration remains an open question.
Oil prices surged as much as 14% in their biggest intraday jump since 2022 after Israeli airstrikes hit Iranian military and nuclear targets, rattling global energy markets. Though prices later pulled back, Brent and WTI crude still ended up nearly 6% on the day, reflecting heightened investor anxiety over potential disruptions in Middle East supply.
The attacks avoided Iran’s vital oil infrastructure—like Kharg Island and key pipelines—tempering fears of immediate output losses, but analysts warn that any escalation could still threaten flows through the Strait of Hormuz.
About 20% of global oil transits that narrow waterway, making it a critical choke point vulnerable to retaliation or blockade. While Iran vowed a strong response, energy analysts say an all-out disruption would hurt Tehran too, particularly as it relies heavily on oil exports to China.
Finsum: For now, traders are eyeing whether the conflict expands into an “energy-for-energy” tit-for-tat, which could turn market jitters into a full-blown supply crisis.
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Interval funds, which offer limited liquidity and access to private markets, are gaining traction as investors seek alternatives to traditional ETFs and mutual funds. Asset managers like TCW, Blackstone, and Vanguard have launched new interval funds this year, bringing the total to 139 with about $100 billion in assets.
These funds, which allow redemptions only at set intervals (typically quarterly), enable investments in less liquid assets like private credit. For example, TCW’s new fund focuses 80% on private asset-backed credit, illustrating the shift toward alternative income strategies.
Meanwhile, attempts to bring private asset exposure to ETFs, such as the PRIV ETF, have struggled due to regulatory concerns over liquidity and naming.
Finsum: Advisors are increasingly allocating client portfolios to interval funds, favoring their higher yields despite reduced liquidity and higher fees.
Private equity firms began the year with strong momentum and over $1.6 trillion in dry powder, eager to deploy capital amid improving deal activity. However, rising trade tensions and macroeconomic uncertainty are making investors more cautious, with many GPs expecting tariffs to slow deployment over the coming months.
Despite this, Q1 saw a surge in deals—volume rose over 45% and value more than doubled year-over-year—driven by large transactions like Sycamore Partners’ take-private of Walgreens. Market volatility has paradoxically raised firms’ risk appetite, with nearly three-quarters indicating they’re more willing to act on mispriced opportunities across sectors such as defense, middle-market manufacturing, and distressed assets.
Amid these trends, firms such as CNL Strategic Capital are shifting focus to value creation within their portfolio of companies seeking long-term growth
Finsum: Private Markets are a great way to sidestep current volatility
Managed accounts in defined contribution plans have long existed but suffer from low adoption, partly due to limited participant engagement. New technology now allows these accounts to personalize portfolios using more data than just age, potentially improving retirement outcomes.
Providers are developing hybrid solutions like personalized target-date funds (PTDFs), which tailor asset allocations using existing data without requiring user input. However, experts stress that true personalization—and value—depends on incorporating outside assets and participant-provided details like retirement goals and risk tolerance.
While artificial intelligence and subscription models may improve engagement, industry leaders see the ultimate goal as total household financial management.
Finsum: Whether managed accounts can scale effectively and deliver on this promise remains a central question for the future of retirement planning.