Category: Insights

Read all of the insights coming from the experts at confluence financial partners.

  • What Is Private Wealth Management?

    Private wealth management is a comprehensive approach to accumulating, preserving, and growing wealth. It goes beyond investment management alone, bringing together holistic financial planning, tax strategy, estate considerations, and ongoing guidance tailored to an individual or family’s full financial picture.

    Rather than offering one-size-fits-all solutions, private wealth management is highly personalized. The goal is to help clients make confident financial decisions across every stage of life while aligning their wealth with what matters most to them.

    A Holistic View of Your Financial Life

    At its core, private wealth management looks at the whole picture. This includes investments, cash flow, tax efficiency, risk management, retirement planning, and legacy goals. Each element is considered in relation to the others, creating a coordinated strategy designed to support both short-term priorities and long-term objectives.

    This approach can help reduce complexities, identify opportunities, and avoid costly missteps that can occur when financial decisions are made in isolation.

    Personalized Investment Strategy

    Investment management is a key component of private wealth management, but it is always rooted in the client’s broader plan. Portfolios are designed based on factors such as goals, time horizon, risk tolerance, and liquidity needs.

    Rather than reacting to short-term market movements, private wealth management emphasizes disciplined, long-term strategies. Ongoing monitoring and adjustments help ensure investments remain aligned as markets shift and life circumstances and goals evolve.

    Planning Beyond Investments

    Private wealth management also addresses areas that extend well beyond the portfolio. This may include retirement income planning, charitable giving strategies, business succession planning, and estate coordination. Thoughtful tax planning and risk management are often integrated to help preserve wealth and improve overall efficiency.

    By coordinating these elements, private wealth management helps clients navigate complexity with greater clarity and confidence.

    Ongoing Guidance and Partnership

    One of the most valuable aspects of private wealth management is the ongoing relationship with an advisor. As life changes in ways such as career transitions, family milestones, or unexpected events, financial strategies need to adapt. Private wealth management provides continuous guidance, helping clients stay focused on their long-term plan while making informed decisions along the way.

    This partnership offers not just technical expertise, but also perspective during uncertain or emotionally charged moments. Working closely with a trusted advisor can help avoid knee jerk decision making at critical junctions.

    Who Can Benefit from Private Wealth Management?

    Private wealth management is often associated with high-net-worth individuals and families, but its value spans most asset levels. It is about more than managing money. It is about creating structure, clarity, and confidence so that wealth can support the life you want to live today and in the future.

    Learn More About Private Wealth Management

    If you’re interested in learning more about private wealth management and whether it may be a fit for you, a conversation can be a helpful first step. Understanding how your investments, planning, and long-term goals work together can bring greater clarity and confidence to your financial decisions.

    And if you already work with a wealth management team, we’re always happy to provide a thoughtful second look. A fresh perspective can help confirm you’re on the right track or identify opportunities that may have been overlooked. Whether you’re just getting started or refining an existing plan, the goal is the same: ensuring your wealth strategy truly aligns with your goals.

    Start the conversation

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    Gregory Weimer

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  • Fourth Quarter 2025 Market Recap

    Markets Power Higher Through Noise

    • The longest government shutdown in history, slowing job creation, and concern over sustainability of AI investment did not slow down equity markets in the Fourth Quarter.
    • Record concentration in the S&P 500 in the US, driven in large part by the enormous spending on AI, caused some volatility during the quarter. Market concentration will likely be closely watched by investors in 2026.
    • Ultimately, stock and bond markets finished 2025 on a high note, particularly for diversified investors: international equity markets posted strongest relative results to the US in over 30 years.
    • Strong finish and year was supported by fundamentals: higher earnings growth internationally, and strong earnings in the US that allowed the market to “grow” into historically expensive valuations.

    What Happened in the Fourth Quarter and 2025?

    The Fourth Quarter of 2025 finished on a strong note, with all major equity markets finishing in positive territory. This is despite an increase in volatility in October and November, following the longest government shutdown in US history, and investor concern around the sustainability of the massive investment in Artificial Intelligence. The government shutdown resulted in some economic data being suspended, but alternative measures showed that the economy was creating fewer jobs during the fourth quarter. In the stock market, strong earnings were the name of the game throughout 2025- outside the US, there was a strong embrace of fiscal stimulus, which powered earnings growth higher in Europe and Japan. The stronger-than-expected earnings growth, along with a weakening US dollar, resulted in international equity markets having their best relative results to the US since 1993 (via MSCI World Ex-US Index and S&P 500 Index). In the US, the S&P 500 started the year historically expensive and stayed that way throughout 2025, ultimately producing a third consecutive year of double-digit gains (historically rare occurrence). The S&P 500’s valuation largely stayed constant during 2025, reflecting strong growth in earnings that was responsible for nearly all of the index’s 2025 results. The growth-driven market did result in the trailing dividend yield on the S&P 500 Index hitting its lowest point since 2000 (1.20%), in contrast to higher yielding international equity markets.

    Sources: Morningstar, Average S&P 500 Stock = S&P 500 Equal Weighted TR Index, US Large Caps = S&P 500 TR Index, US Small Cap = Russell 2000 TR Index, Developed International = MSCI EAFE NR Index, Emerging Markets = MSCI Emerging Markets NR Index, Core Bonds = Bloomberg US Agg Bond TR Index, US Large Growth = Russell 1000 Growth TR Index, US Large Value = Russell 1000 Value TR Index

    The bond market was a benefactor of falling inflation and interest rate cuts from the Federal Reserve, resulting in the bond market (Bloomberg US Agg Bond Index) having its strongest calendar year since 2020, finishing comfortably above cash for the year. Short-term interest rates have fallen faster than long-term interest rates (“steepening yield curve”), as the Fed delivered three rate cuts in 2025 (following three cuts in 2024). Investment grade and high yield bonds also had a strong quarter and year, with spreads falling to low levels as the economy continued to grow. The outlook for additional rate cuts shifted during the quarter, with a roughly 60% chance of a 0.25% rate cut in March 2026 priced by the market (as of 1/1/2026).

    All About Artificial Intelligence

    The investment in Artificial Intelligence technologies is on track to be the largest investment in US infrastructure in 100 years. The magnitude of investment had an impact on both the economy and stock market in 2025. For example, the chart below illustrates capital expenditures by the Technology sector as a percentage of US gross domestic product (GDP). It compares the current investment in AI technologies to other major infrastructure investment cycles historically – the current is significantly higher than the amount invested in Interstate highways and the Apollo Space Project, for example.

    Source JPMorgan,: Manhattan District History, BEA, Planetary Society, Eno Center for Transportation, San Francisco Fed, Hoover archives, Baruch, GoldenGate.org, New York Times

    This had a tangible impact on economic data: investment in AI data centers was responsible for almost all of the economic growth in the first six months of 2025, more than consumer spending which is 2/3 of long-term GDP growth!

    As discussed in previous editions of Market Pulse, the massive investment from Technology companies has also had a profound impact on equity market results and composition. In the United States, this has meant an increasingly concentrated equity market (over 40% of the S&P 500’s value is in ten companies), and a continuation of the outperformance of larger companies versus smaller companies. For example, the S&P 500 has outperformed the S&P 500 Equal Weight Index (average stock) by 34% over the past 3 years, the widest 3-year performance gap in history. US large cap stocks also outperformed small cap stocks in 2025, marking the 5th consecutive year of large cap outperformance. Investors expect there to be benefit to other companies within the stock market, forecasting a narrowing gap of earnings growth between the 10 largest companies and the rest of the stock market.

    What’s Ahead for the First Quarter?

    Investors will be watching for early clues in the tug-of-war going on between slowing job growth and expectations of a reaccelerating economy through the stimulus from the One Big Beautiful Bill Act (OBBA). The latter is expected to produce higher-than-average Federal tax refunds, which should be a boost to consumer spending. On the other side, expectations are for job growth to slow to under 50,000 new jobs per month, one sign the economy is slowing down. Inflation is a key reason the market is only expecting one 0.25% rate cut in the first quarter: core inflation is falling but remains stubbornly above the Federal Reserve’s target level of inflation. The equity market is coming off another year of strong results: the S&P 500 had double digit returns for three consecutive years for just the 9th time since 1928. Investors will look for signs of broadening participation from smaller companies, and improvement in earnings growth outside the mega-cap Technology companies.

    Past performance is not indicative of future results. The S & P 500 Index is a broad, unmanaged index of 500 of the largest US publicly traded companies and does not reflect the impact of fees, taxes or expenses. Any investment in the S&P 500 or similar indices, like the Russell 1000 and Russell 2000, involves risk, including the potential loss of principal and they do not reflect the costs of investing in an actual portfolio. Investors should consider their individual risk, tolerance, investment objectives, and consult with a financial professional before making investment decisions.

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    William Winkeler

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  • Legacy Planning for Affluent Families: Preparing the Next Generation for Wealth and Responsibility

    Legacy Planning for Affluent Families: Preparing the Next Generation

    For today’s affluent families, the conversation around legacy extends far beyond financial assets. We believe true legacy is built on values, purpose, and a shared understanding of what wealth is meant to accomplish. As families focus on multi-generational wealth planning, the goal is no longer to simply pass down wealth, but to prepare the next generation to carry it forward with clarity and confidence. Thoughtful family wealth stewardship helps to ensure that financial and human capital grow in tandem, protecting not just what your family owns, but what it stands for.

    Rethinking Wealth, Values, and Family Legacy

    Modern legacy planning for families requires reimagining the role wealth plays in shaping identity, opportunity, and responsibility. As assets grow and generations evolve, families are increasingly asking deeper questions:

    • How do we ensure wealth strengthens our family rather than complicates it?
    • What values do we want reflected in the decisions our children make?
    • How do we create unity and purpose across generations?

    By reframing wealth as something entrusted, not simply inherited, families can build a shared vision that guides decisions, strengthens relationships, and prepares the next generation for meaningful stewardship.

    The Questions That Shape Meaningful Wealth Planning

    We believe the most effective generational wealth planning begins not with documents or tax strategies, but with thoughtful, reflective questions often discussed during a family meeting. Here are a few questions that can lead families to deeper clarity:

    • What are our family’s true assets beyond financial capital?
    • What kind of opportunities and responsibilities do we want wealth to create for the next generation?
    • How wealthy do we want our children to be, and why?
    • How do we use our success to create impact for others?

    These questions encourage families to look beyond efficiency and focus on the purpose behind the plan. When answered together, they become the foundation of a values-based approach to wealth transfer planning.

    From Wealth Transfer to Wealth Transition

    Traditional planning often centers on maximizing what is passed down. But affluent families are shifting toward a more holistic approach: transitioning wealth with intention, preparation, and structure in the present and the future. The difference is profound.

    Wealth transition includes:

    • Preparing heirs for financial responsibility
    • Encouraging leadership and decision-making
    • Creating communication frameworks such as family meetings
    • Providing mentorship and education long before an inheritance arrives

    By focusing on transition, not just transfer, families equip rising generations to effectively manage wealth rather than simply receive it.

    Philanthropy as a Tool for Stewardship and Leadership

    Philanthropy offers one of the most effective ways to teach values, empathy, and leadership within a family. Whether through a donor-advised fund, family foundation, or shared charitable initiatives, giving becomes a hands-on experience that blends financial wealth with purpose.

    Philanthropy naturally supports:

    • Next-generation engagement
    • Collaboration across age groups
    • Early exposure to budgeting, evaluating causes, and making informed decisions
    • A deeper understanding of the impact wealth can create

    For many families, philanthropy becomes the training ground for tactical and meaningful family wealth stewardship.

    Engaging Your Family in Purpose-Driven Wealth Planning

    Purpose-driven planning brings clarity and connection to the entire family. When every generation understands the mission behind the wealth, they can contribute confidently and collaborate more meaningfully.

    This stage of multi-generational wealth planning may include:

    • Engaging in a family meeting
    • Establishing a family mission or values statement
    • Involving younger members in age-appropriate financial discussions
    • Coordinating philanthropic efforts as a shared experience
    • Creating a long-term vision for how wealth supports the lives and priorities of future generations

    Families who plan together build stronger legacies, ones shaped not only by financial success, but by intention, unity, and purpose.

    Start The Conversation

    Connect with our team to design a multi-generational wealth strategy that reflects your values and prepares your family for the future.

    Start the conversation

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    Jackson Elizondo

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  • 6 Ways High Earning Women Can Navigate Career, Wealth, and Life Changes

    As a woman, a financial advisor, a mother of four, a wife, and a daughter who has cared for aging parents, I’ve lived many of the transitions and challenges that high-earning women face. I’ve also changed careers, taken time off to raise my children, and returned to the workforce with a renewed sense of purpose. These experiences have shaped not only how I view financial planning, but how I help other women approach their wealth with confidence and clarity.

    Financial planning is deeply personal, and for women, especially those with high earning potential, it often requires a tailored approach that reflects the realities of our lives. From career shifts to caregiving roles, longevity, and legacy goals, thoughtful planning can help us protect, grow, and purposefully use our wealth.

    1. Career Trajectories and Earning Patterns

    Women’s careers often don’t follow a straight line. Whether it’s stepping away to raise children, caring for loved ones, or pivoting into new roles, these transitions can impact income, retirement savings, and investment strategies. I’ve seen how flexible financial planning that accounts for pauses and pivots can empower women to stay on track and build long-term wealth, even when life takes unexpected turns.

    2. Longevity and Healthcare Considerations

    Women tend to live longer than men, which means our retirement plans need to stretch further. We must think about healthcare, long-term care, and how to sustain our lifestyle for decades. Planning for longevity isn’t just about numbers, it’s about peace of mind. It’s about knowing that we’ll be okay, and that we won’t be a financial burden to those we love.

    3. Risk Tolerance and Investment Approach

    I’ve worked with women who are cautious investors and others who are bold and growth oriented. There’s no one-size-fits-all approach. What matters is aligning your investments with your values, goals, and comfort level.  Your portfolio should reflect this, balancing growth, protection, and flexibility, so you can feel confident in every market cycle.

    4. Estate, Legacy, and Intergenerational Wealth

    Many women I work with are the financial stewards of their families. They care deeply about how their wealth will impact future generations and the causes they believe in. Whether it’s through charitable giving, trusts, or legacy planning, a thoughtful financial plan can assist in fulfilling family objectives and legacy goals.

    5. Empowerment Through Education and Engagement

    Historically, women have faced barriers to financial confidence and literacy. Too often, women feel intimidated by financial jargon or worry they’re “not good with money.” But I believe, and have witnessed, that with the right guidance, women become incredibly powerful financial decision-makers.  Women should feel safe asking questions, exploring options, and taking control of their financial futures.

    6. Life Transitions and Flexibility

    Life is full of transitions including marriage, divorce, career changes, caregiving, and retirement. I’ve walked through several of these stages myself. That’s why I believe financial plans need to be adaptable and should evolve as life does. Because when your financial strategy is flexible, you’re better prepared for whatever comes next.

    Financial planning for women isn’t just about numbers, it’s about life. It’s about creating a strategy that supports your goals, your family, and your future. As someone who’s lived many of these experiences, I’m passionate about helping women feel confident, informed, and empowered in their financial journey.

    Let’s talk about how thoughtful planning can help you balance wealth, life, and legacy. I’d love to help you explore your options and build a plan that reflects your unique path.

    Melissa Pirosko
    About the Author

    Melissa’s love of investing combined with her desire to help and serve others led her to a career in wealth management. Melissa enjoys working with clients to help them reach their financial goals and focuses on building long term relationships with each of her clients based on integrity and trust.

    McMurray

    724-271-8801
    melissa.pirosko@confluencefp.com
    Email Melissa

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    Melissa Pirosko

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  • Market Recap: Q3 2025

    A Review of Investment Trends and Insights

    Record Concentration

    • Federal Reserve reduced interest rates for the first time since 2024 following weakening labor market data.
    • Declining interest rates helped drive US small cap stocks and bond markets higher during the quarter.
    • Investment in artificial intelligence drove the S&P 500 to record concentration levels as leadership narrowed in the Third Quarter.

    What Happened in the Third Quarter?

    The first interest rate cut since the end of 2024 and why it happened were important events in the Third Quarter of 2025. The Federal Reserve had been consistent with their messaging – interest rate cuts would largely be determined by any weakness in the labor market. During the quarter, there became signs the labor market was slowing down. There were large revisions to previous estimates of job creation, showing that the economy had created fewer jobs than first assumed. With inflation still comfortably above their 2% target, Federal Reserve officials were still comfortable reducing the Federal Funds Rate by 0.25% in September, reflecting the slowing jobs market. During the lead-up to the interest rate cut, equity markets were led by interest-rate sensitive markets such as small caps, which had strong results during the quarter (Russell 2000 TR Index rose +12.39%). Bond markets also benefitted from the decrease in interest rates, with the Bloomberg Barclays US Aggregate Bond TR Index rising +2.03% during the quarter. Leadership within the S&P 500 Index narrowed again during the quarter, as the largest companies (and most exposed to artificial intelligence investments) drove the index higher – detailed more below.

    Index Diversification in the Spotlight One defining characteristic of the past three-to-five years in the US equity markets is the increasing concentration in the S&P 500.  The degree to which the S&P 500 has narrowed has led to many investors asking “is an S&P 500 Index investment still diversified?”. By any measure – the S&P 500 Index is more concentrated in the largest companies than any other time since at least the mid-1960’s.

    The top 10 companies in the S&P 500 make up 40% of the index market capitalization- meaning for every $1 invested in the S&P 500 Index, $0.40 goes into 10 companies. This compares to an average top 10 concentration closer to 23% over the past 30 years. Similar measures reflect the magnitude of concentration: Nvidia became the first 8% or greater position since IBM in 1969, Top 5 companies reached almost 28% of the index (highest since at least 1966).

    The “why” of index concentration is also an important question- JPMorgan and Berkshire Hathaway are the only two Top 10 members that aren’t technology/technology-related companies. The significant capital expenditures related to artificial intelligence has shaped market composition: Magnificent 7 companies have doubled their annual capital expenditures since 2023. Investors will continue to be focused on the return-on-investment of this record investment, as well as the benefit to the other 490+ companies in the equity market.

    Impact of US Dollar Trends

    After falling almost -11% in posting its worst first half of a year since 1973, the US dollar rallied mildly during the Third Quarter. The weakness in the dollar has been a tailwind for international assets, such as international equities in investor portfolios. Converging growth rates and interest rate differentials globally, along with the high starting value of the US dollar heading into this year, leaves the possibility for an extended period of weakness, similar to 2002-2008. This period was also the last time international equities outpaced US equities for an extended period of time. Outside of currency trends, unlike the S&P 500 the international markets have a much lower degree of concentration in the largest companies: MSCI EAFE Index has roughly 12.7% of its market capitalization in the Top 10 holdings.

    What’s Ahead for the Fourth Quarter?

    Monetary policy is squarely in investors’ focus heading into the Fourth Quarter of 2025, with two subjects in focus. First, the path of interest rate cuts: what is the likely hood of additional interest rate cuts in 2025? With weakening in job market data in September, investors were assigning a high likelihood of rate cuts (0.25%) during the October and December Federal Reserve Open Market Committee meetings. This would mean an additional 0.50% reduction in short-term interest rates by the end of 2025, which would lower the yield on cash/cash-related investments (i.e. money market investments). Second, the composition of the Federal Reserve is also in focus, via both terms ending and attempts to replace members prior to the end of their respective term. This will have a significant impact on additional interest rate cuts heading into 2026.

    Markets in Review

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    William Winkeler

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  • Federal Reserve Cut Rates – Now What?

    As expected, the Federal Reserve reduced the Federal Funds rate by 0.25% today, the first rate cut since December 2024. What can investors expect going forward following the reduction in short-term interest rates? First off, some of the impact is “priced in” in advance of the actual rate cut, as investors and financial markets are forward-looking. That being said, there are some general reactions to expect:

    Short-Term Savings and Liabilities

    • There will be a very tangible effect here – the yield or interest on short-term savings vehicles such as money market funds will drop relatively quickly to reflect the lower rate from the Federal Reserve.
    • Floating-rate loans (i.e. home equity lines of credit, securities-based loans, credit card loans) are often based on Secured Overnight Financing Rate (SOFR) (replaced LIBOR), which tracks Federal Funds rate closely. There should be a reduction in the interest on floating rate loans.

    Mortgage Rates

    • Fixed rate mortgages are the dominant structure in the United States, and the impact of lower Federal Funds rate can be limited on 15-year and 30-year mortgages.
    • These types of fixed mortgages are based off the yield of longer-term Treasuries, plus a risk spread associated with underwriting and issuing the mortgages.
    • Longer-term Treasuries reflect expectations for future economic growth and inflation and are not set by the Federal Reserve.
    • This is also an example of investors pricing-in future events: 30-year mortgage rates hit their lowest level of the year before the interest rate cut was announced.

    Stock and Bond Investments

    • The impact on the stock market can vary- certain sectors and size companies have a greater sensitivity to short-term interest rates. The catalyst for the rate cut is more important for the stock and bond markets- i.e. are the rate cuts due to an impending recession?
    • For example, small cap stocks use significantly greater floating rate financing compared to large cap stocks. Falling short-term interest rates are expected to boost small cap stock earnings. This is one reason why small cap stocks have outperformed large cap stocks in the US since June 30th.
    • Bond investments will generally benefit from the interest rate cuts but like fixed mortgages, the exact impact is more nuanced. When prevailing interest rates fall, the value of existing bonds increases in value. The benefit for bond investments will be reduced if longer-term yields stay higher or increase, similar to what happened after the rate cuts in 2024.

    Rate cuts bring both opportunities and challenges, and staying informed and proactive can help you navigate the shifts with confidence. Since every situation is unique, we’d be glad to review how these changes may affect your goals—let’s start the conversation.

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    William Winkeler

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  • Market Recap: August 2025

    A Monthly Review of Investment Trends and Insights

    Month in Review

    • Increased likelihood of an interest rate cut in September helped to push stocks higher, along with another quarter of strong earnings. The S&P 500 TR Index finished August +2.03% higher.
    • US small cap stocks led all equity markets higher, as the combination of inexpensive valuations and potential interest rate cuts proved to be a tailwind in August. The Russell 2000 TR Index rose +7.14% in August, bringing the return since 6/30/2025 to +9.00%.
    • Reversing July’s rally, the US Dollar fell again in August, providing an additional boost for international stocks denominated in US dollars. The MSCI EAFE NR USD Index rose +4.26% for the month, taking the YTD 2025 rally to +22.79%.
    • The likelihood of a September interest rate cut pushed short-term bond yields lower, helping to drive a +1.20% monthly rally for major bond markets (Bloomberg Barclays Aggregate Bond TR Index). It is important to note that longer-term bond yields actually rose slightly during the month.

    Small Caps Shine in August

    US small cap stocks, which are in the midst of one their longest period of underperformance versus US large caps, rallied sharply in August (Russell 2000 TR Index +7.14%, S&P 600 TR Index +7.06%). The primary reason – clarity around the now widely expected interest rate cut in September.

    US small cap stocks have significantly greater exposure to short-term interest rates, having nearly 5x the amount of floating rate debt compared to the S&P 500 (chart below). Given that the Federal Funds Rate, the anchor for floating rate debt rates, has been above 4% since December 2022, small cap debt service costs have also been elevated. Effective annual debt cost for the Russell 2000 Index is closer to 7%, significantly higher than the effective rate for the S&P 500, which had more companies issue longer-term, fixed rate debt.

    The nearly 12-year period of underperformance versus large caps has driven small caps to represent less than 4% of the overall US stock market, much lower than the 7% long-term average. The start of an interest rate cutting cycle is one element that could benefit small cap stocks. Their valuations are also much lower than US large cap stocks, which could also be a tailwind if the economy continues to expand, and catalyze increased representation of small caps.

    What’s on Deck for September?

    • The Federal Reserve Open Market Committee (FOMC) announces their decision to change interest rates on September 17th. As of August 31st, markets are assigning a roughly 90% probability that the FOMC reduces the Fed Funds Rate by 0.25%.
    • The Federal Reserve staffing is also in the spotlight. In August, President Trump announced intentions to remove Fed governor Lisa Cook, on allegations of mortgage misrepresentation. No Fed governor has been fired since creation of the Federal Reserve in 1913. The outcome will be watched closely by investors as there are implications for Fed composition and approach to monetary policy. 

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    William Winkeler

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  • Inheriting Wealth: What You Might Overlook

    Inheriting a large sum of money can be life-changing, but it can also come with increased responsibilities and potential pitfalls. Without careful planning, an inheritance could quickly become a source of stress, conflict, or even potentially lead to financial loss. Many individuals overlook critical considerations that could have long-term consequences.

    Here are some of the most overlooked considerations:

    1. Understanding How the Inheritance Is Structured

    An inheritance may come through a will or a trust, and the structure dramatically affects how and when you receive assets. A will will typically go through probate, which can take months and may incur fees, while a trust may impose restrictions or phased distributions. Misunderstanding these details could delay access to funds or have potential legal complications.

    2. Tax Implications

    Many beneficiaries can be surprised by taxes, including estate taxes, inheritance taxes (depending on your state), and capital gains taxes on investments sold. Retirement accounts like IRAs or 401(k)s typically have strict withdrawal rules as well. Without professional guidance, a misstep here can lead to unwanted tax bills and potentially lost wealth.

    3. Emotional and Family Dynamics

    Inheritance often comes during a period of grief or loss. Decisions made while under stress could lead to overspending, poor investments, or even family disputes. Without clear guidance and communication, these situations could lead to conflict or financial regret.

    4. Revisiting Your Own Financial Plan

    An inheritance can shift your goals, risk tolerance, and financial future overnight. Your old financial plan may no longer fit the amount and type of assets you now own. Revisiting your financial plan can ensure you understand how the inheritance can impact you and your family now and into the future.

    4. Updating Your Estate Documents

    Suddenly receiving a large sum can potentially reveal gaps in your own estate plan. Without a well-designed strategy, you risk depleting your inheritance quickly or failing to protect assets for future generations.

    5. Honoring the Legacy

    Inheritance is often about more than money; it reflects a loved one’s values and intentions. Failing to consider the legacy can lead to decisions that ignore the purpose behind the gift.

    6. Not Working with a Qualified Professional

    Perhaps one of the most critical mistakes is trying to navigate a complex inheritance without guidance. Without professional guidance, it’s easier to mismanage taxes, misinterpret a will or trust, or potentially make investment mistakes that could erode your wealth. Working with a financial advisor can help ensure your inheritance is handled correctly, protects your financial future, and preserves the legacy intended by the person who passed along the assets. The stakes are high, and mistakes could turn a blessing into a costly mistake.

    An inheritance can be both a gift and a responsibility. To protect your wealth, honor your loved one’s legacy, and make smart, strategic decisions, consider reaching out to Confluence Financial Partners. Our team of professionals can help guide you through each step of the inheritance process, helping you turn this opportunity into a lasting foundation for your financial future.

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    Gregory Weimer

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  • Market Recap: July 2025

    Month in Review

    • Strong US earnings powered markets higher in July (+2.24%, S&P 500 TR Index), led by Technology and growth stocks. Microsoft joined Nvidia in becoming the second $4tn market cap company in history.
    • US large cap growth stocks finished the month up +3.78% (Russell 1000 Growth TR Index), pushing concentration higher in US large cap indices. The top 10 companies in the S&P 500 Index now represent nearly 40% of the index, the most concentrated in at least 50 years.
    • Nvidia’s 8% weight in the S&P 500 as of 7/31/2025 is unusually high relative to the history of the index. For comparison, the 8% weight of the single company is nearly equal to the weight of the entire Industrials Sector in the S&P 500 index.
    • International stocks fell -1.40% (MSCI EAFE NR USD Index) during July, as the US Dollar rose sharply against most major currencies. The MSCI EAFE NR USD Index still stands at +17.77% YTD.
    • Major bond markets fell slightly in July (-0.26%, Bloomberg Barclays Aggregate Bond TR Index), as investors digested the outlook for the economy and monetary policy.

    Diversification with Bonds

    The sharp increase in inflation rates in 2021-2022 not only resulted in a significant drawdown for bond indices, but also sharply shifted the relationship between stock and bond prices. The correlation of US stocks and bonds increased to the highest level in 30 years in 2022, which had real implications for investors: the bond allocation did not provide a ballast during the equity market volatility.

    Historically, periods of sustained higher inflation have resulted in a positive correlation between US stocks and bonds (meaning a reduced diversification benefit). From 2001 to 2022, the short- and long-term correlation between US stocks and bonds stayed negative, meaning bond prices rose when stock prices fell. After resetting higher to positive territory in 2022, recent short-term correlation measures have recently shifted negative again, as the Federal Reserve has begun to normalize monetary policy.  

    The chart illustrates the one-year correlation between US stocks and bonds, annotated with monetary policy developments. As investors have become more comfortable with the inflation outlook, the diversification benefit of bonds is beginning to return to portfolios.

    What’s on Deck for August?

    • Second quarter of 2025 earnings reports will wrap-up in August. Through July 28th, 32% of the S&P 500 companies had reported, 77% beat earnings estimates with a reported earnings growth of +5.5% year/year.
    • The Federal Reserve Open Market Committee (FOMC) left interest rates unchanged in July. The Committee does not have a regular committee meeting in August; rather they have their annual symposium at Jackson Hole. Investors will be monitoring the meeting and communication for any insight as to the likelihood of an interest rate cut in September.
    • Trade policy will again be front-of-mind as the August 1st deadline approaches for trade deal negotiations.

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    William Winkeler

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  • 7 Myths About Wealth Management—Debunked

    What is wealth management, really?

    At its core, wealth management is a long-term, relationship-based approach to structuring your financial life. It goes far beyond investment advice, encompassing comprehensive planning across key areas such as tax strategy, retirement readiness, risk management, estate planning, and more. The goal? To align your financial decisions with your life goals, values, and priorities, both now and in the future.

    Still, many people misunderstand what wealth management truly is, and what it isn’t. Let’s begin by addressing seven common myths.

    Myth #1: Wealth management is only about growing your investments.

    Reality: While growing your assets is a piece of the puzzle, wealth management is about far more. It includes protecting what you’ve built, planning for major life events, and preparing for transitions like retirement or business succession. Growth is just one component of a much broader, comprehensive planning process.

    Myth #2: It’s just investment advice.

    Reality: Investments are only one tool in a larger strategy. True wealth management takes into account your entire financial life including income, taxes, estate plans, insurance coverage, and long-term goals, and coordinates them all into a personalized plan.

    Myth #3: You can DIY if you simply do enough research.

    Reality: While self-education is valuable, effective comprehensive planning requires more than access to information. It takes experience, objectivity, and the ability to coordinate multiple moving parts. A good wealth manager helps you avoid blind spots and ensures your decisions are cohesive and future-focused.

    Myth #4: It’s a one-time engagement.

    Reality: Wealth management is a long-term relationship that evolves with your life. Markets change. Families grow. Laws shift. Ongoing adjustments are essential to keep your plan relevant and to make the most of your opportunities over time.

    Myth #5: All wealth managers are the same.

    Reality: Not all advisors provide true comprehensive planning. Some are investment-focused, while others serve as fiduciaries, offering a broader range of coordinated services. It’s important to understand the advisor’s scope and approach before committing to a relationship.

    Myth #6: It’s too expensive.

    Reality: Strategic financial guidance can help you avoid costly mistakes, uncover efficiencies, and make informed decisions that build value over time. The cost of wealth management is often offset by the clarity and confidence it brings as well as the opportunities it helps unlock.

    Myth #7: If I have a 401(k), my retirement is covered.

    Reality: A 401(k) is a great tool, but it’s not a plan. Comprehensive planning connects your retirement savings with the rest of your financial picture, ensuring that your income needs, tax exposure, and estate goals are all working together, not in isolation.

    Final Thoughts

    Wealth management is more than a one-time service. It’s a long-term commitment to clarity, alignment, and strategic decision-making. By debunking myths around wealth management, you can better understand how the right advisor and a comprehensive planning approach can help you move forward with confidence.

    At Confluence Financial Partners, we believe wealth management should be personal, purposeful, and deeply aligned with what matters most to you. Our team is made up of experienced professionals specializing in areas such as financial planning and investment strategy, working together to create the best possible plan tailored to your needs. We also coordinate closely with other financial professionals in your life such as your CPA or attorney to ensure all aspects of your financial picture are working together seamlessly.

    Ready to create a plan designed just for you? Contact us today to get started on your path to greater financial confidence.

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    Chuck Zuzak

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